# EDGAR Filing Document

**Accession Number:** 0001535538
**File Stem:** 0001133228-26-000797
**Filing Date:** 2026-1
**Character Count:** 785931
**Document Hash:** 68ec76d56b9c40b500fd3127fbb8842a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001133228-26-000797.hdr.sgml**: 20260128

**ACCESSION NUMBER**: 0001133228-26-000797

**CONFORMED SUBMISSION TYPE**: N-CSRS

**PUBLIC DOCUMENT COUNT**: 26

**CONFORMED PERIOD OF REPORT**: 20251130

**FILED AS OF DATE**: 20260128

**DATE AS OF CHANGE**: 20260128

**EFFECTIVENESS DATE**: 20260128

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Franklin Alternative Strategies Funds
- **CENTRAL INDEX KEY:** 0001535538

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0531

**FILING VALUES:**
- **FORM TYPE:** N-CSRS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-22641
- **FILM NUMBER:** 26569033

**BUSINESS ADDRESS:**
- **STREET 1:** ONE FRANKLIN PARKWAY
- **CITY:** SAN MATEO
- **STATE:** CA
- **ZIP:** 94403-1906
- **BUSINESS PHONE:** 650-312-2000

**MAIL ADDRESS:**
- **STREET 1:** ONE FRANKLIN PARKWAY
- **CITY:** SAN MATEO
- **STATE:** CA
- **ZIP:** 94403-1906

## Series and Classes Contracts Data

### K2 Alternative Strategies Fund (Series ID: S000042023)

| Class ID   | Class Name    | Ticker Symbol   |
|:---|:---|:---|
| C000130561 | Class A       | FAAAX           |
| C000130562 | Class C       | FASCX           |
| C000130563 | Class R       | FSKKX           |
| C000130564 | Class R6      | FASRX           |
| C000130565 | Advisor Class | FABZX           |

?xml version='1.0' encoding='ASCII'? 2025-12-165199780_FranklinAlternativeStrategiesFund_ClassA_TSRSemiAnnual

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

**FORM N-CSR**

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number **811-22641**

**Franklin Alternative Strategies Funds**

(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

Franklin Templeton

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: **May 31**

Date of reporting period: **November 30, 2025**

ITEM 1. REPORT TO STOCKHOLDERS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Report to Shareholders is filed herewith

---

| | |
|:---|:---|
| **Franklin Alternative Strategies Fund**  | ![image](img448_202405131411777.jpg) |
| Class A [FAAAX] | ![image](img448_202405131411777.jpg) |
| Semi-Annual Shareholder Report \| November 30, 2025  | ![image](img448_202405131411777.jpg) |
| ![image](img450_202407221332340.jpg) | ![image](img450_202407221332340.jpg) |

---

This semi-annual shareholder report contains important information about Franklin Alternative Strategies Fund (previously known as K2 Alternative Strategies Fund) for the period June 1, 2025, to November 30, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup><sup>,</sup><sup>†</sup>  |
| Class A | $122 | 2.36% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

† Annualized.

**KEY FUND STATISTICS** (as of November 30, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $534705309 |
| **Total Number of Portfolio Holdings** | 829 |
| **Portfolio Turnover Rate** | 152.19% |

---

**WHAT DID THE FUND INVEST IN?** (as of November 30, 2025)

---

| | | |
|:---|:---|:---|
| **Strategy Allocation** **(% of Total Net Assets)** | **Long Positions** | **Short Positions** |
|  Event Driven  | 0.0 | -0.0 |
|  Global Macro  | 122.9 | -210.9 |
|  Long Short Equity  | 54.7 | -38.9 |
|  Relative Value  | 52.6 | -34.8 |
|  Strategic Overlay  | 8.1 | -0.0 |
|  **Total**  | 238.3 | -284.6 |

---

Figures include the effect of gross notional exposure of derivatives.

---

| | |
|:---|:---|
| ![image](img1988_202405161833219.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img1988_202405161833219.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img1988_202405161833219.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

Franklin Alternative Strategies Fund PAGE 1 68-STSR-0126

------

---

| | |
|:---|:---|
| **Franklin Alternative Strategies Fund**  | ![image](img448_202405131411777.jpg) |
| Class C [FASCX] | ![image](img448_202405131411777.jpg) |
| Semi-Annual Shareholder Report \| November 30, 2025  | ![image](img448_202405131411777.jpg) |
| ![image](img450_202407221332340.jpg) | ![image](img450_202407221332340.jpg) |

---

This semi-annual shareholder report contains important information about Franklin Alternative Strategies Fund (previously known as K2 Alternative Strategies Fund) for the period June 1, 2025, to November 30, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup><sup>,</sup><sup>†</sup>  |
| Class C | $161 | 3.11% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

† Annualized.

**KEY FUND STATISTICS** (as of November 30, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $534705309 |
| **Total Number of Portfolio Holdings** | 829 |
| **Portfolio Turnover Rate** | 152.19% |

---

**WHAT DID THE FUND INVEST IN?** (as of November 30, 2025)

---

| | | |
|:---|:---|:---|
| **Strategy Allocation** **(% of Total Net Assets)** | **Long Positions** | **Short Positions** |
|  Event Driven  | 0.0 | -0.0 |
|  Global Macro  | 122.9 | -210.9 |
|  Long Short Equity  | 54.7 | -38.9 |
|  Relative Value  | 52.6 | -34.8 |
|  Strategic Overlay  | 8.1 | -0.0 |
|  **Total**  | 238.3 | -284.6 |

---

Figures include the effect of gross notional exposure of derivatives.

---

| | |
|:---|:---|
| ![image](img1988_202405161833219.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img1988_202405161833219.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img1988_202405161833219.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

Franklin Alternative Strategies Fund PAGE 1 520-STSR-0126

------

---

| | |
|:---|:---|
| **Franklin Alternative Strategies Fund**  | ![image](img448_202405131411777.jpg) |
| Class R [FSKKX] | ![image](img448_202405131411777.jpg) |
| Semi-Annual Shareholder Report \| November 30, 2025  | ![image](img448_202405131411777.jpg) |
| ![image](img450_202407221332340.jpg) | ![image](img450_202407221332340.jpg) |

---

This semi-annual shareholder report contains important information about Franklin Alternative Strategies Fund (previously known as K2 Alternative Strategies Fund) for the period June 1, 2025, to November 30, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup><sup>,</sup><sup>†</sup>  |
| Class R | $136 | 2.62% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

† Annualized.

**KEY FUND STATISTICS** (as of November 30, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $534705309 |
| **Total Number of Portfolio Holdings** | 829 |
| **Portfolio Turnover Rate** | 152.19% |

---

**WHAT DID THE FUND INVEST IN?** (as of November 30, 2025)

---

| | | |
|:---|:---|:---|
| **Strategy Allocation** **(% of Total Net Assets)** | **Long Positions** | **Short Positions** |
|  Event Driven  | 0.0 | -0.0 |
|  Global Macro  | 122.9 | -210.9 |
|  Long Short Equity  | 54.7 | -38.9 |
|  Relative Value  | 52.6 | -34.8 |
|  Strategic Overlay  | 8.1 | -0.0 |
|  **Total**  | 238.3 | -284.6 |

---

Figures include the effect of gross notional exposure of derivatives.

---

| | |
|:---|:---|
| ![image](img1988_202405161833219.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img1988_202405161833219.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img1988_202405161833219.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

Franklin Alternative Strategies Fund PAGE 1 820-STSR-0126

------

---

| | |
|:---|:---|
| **Franklin Alternative Strategies Fund**  | ![image](img448_202405131411777.jpg) |
| Class R6 [FASRX] | ![image](img448_202405131411777.jpg) |
| Semi-Annual Shareholder Report \| November 30, 2025  | ![image](img448_202405131411777.jpg) |
| ![image](img450_202407221332340.jpg) | ![image](img450_202407221332340.jpg) |

---

This semi-annual shareholder report contains important information about Franklin Alternative Strategies Fund (previously known as K2 Alternative Strategies Fund) for the period June 1, 2025, to November 30, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup><sup>,</sup><sup>†</sup>  |
| Class R6 | $108 | 2.08% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

† Annualized.

**KEY FUND STATISTICS** (as of November 30, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $534705309 |
| **Total Number of Portfolio Holdings** | 829 |
| **Portfolio Turnover Rate** | 152.19% |

---

**WHAT DID THE FUND INVEST IN?** (as of November 30, 2025)

---

| | | |
|:---|:---|:---|
| **Strategy Allocation** **(% of Total Net Assets)** | **Long Positions** | **Short Positions** |
|  Event Driven  | 0.0 | -0.0 |
|  Global Macro  | 122.9 | -210.9 |
|  Long Short Equity  | 54.7 | -38.9 |
|  Relative Value  | 52.6 | -34.8 |
|  Strategic Overlay  | 8.1 | -0.0 |
|  **Total**  | 238.3 | -284.6 |

---

Figures include the effect of gross notional exposure of derivatives.

---

| | |
|:---|:---|
| ![image](img1988_202405161833219.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img1988_202405161833219.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img1988_202405161833219.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

Franklin Alternative Strategies Fund PAGE 1 830-STSR-0126

------

---

| | |
|:---|:---|
| **Franklin Alternative Strategies Fund**  | ![image](img448_202405131411777.jpg) |
| Advisor Class [FABZX] | ![image](img448_202405131411777.jpg) |
| Semi-Annual Shareholder Report \| November 30, 2025  | ![image](img448_202405131411777.jpg) |
| ![image](img450_202407221332340.jpg) | ![image](img450_202407221332340.jpg) |

---

This semi-annual shareholder report contains important information about Franklin Alternative Strategies Fund (previously known as K2 Alternative Strategies Fund) for the period June 1, 2025, to November 30, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

**WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS?** (based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup><sup>,</sup><sup>†</sup>  |
| Advisor Class | $109 | 2.11% |

---

\* Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

† Annualized.

**KEY FUND STATISTICS** (as of November 30, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $534705309 |
| **Total Number of Portfolio Holdings** | 829 |
| **Portfolio Turnover Rate** | 152.19% |

---

**WHAT DID THE FUND INVEST IN?** (as of November 30, 2025)

---

| | | |
|:---|:---|:---|
| **Strategy Allocation** **(% of Total Net Assets)** | **Long Positions** | **Short Positions** |
|  Event Driven  | 0.0 | -0.0 |
|  Global Macro  | 122.9 | -210.9 |
|  Long Short Equity  | 54.7 | -38.9 |
|  Relative Value  | 52.6 | -34.8 |
|  Strategic Overlay  | 8.1 | -0.0 |
|  **Total**  | 238.3 | -284.6 |

---

Figures include the effect of gross notional exposure of derivatives.

---

| | |
|:---|:---|
| ![image](img1988_202405161833219.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img1988_202405161833219.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img1988_202405161833219.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

Franklin Alternative Strategies Fund PAGE 1 10-STSR-0126

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable

ITEM 2. CODE OF ETHICS.

Not applicable

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable*.*

ITEM 6. SCHEDULE OF INVESTMENTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

![](ft_logo_pos_0119.jpg)

**Franklin Alternative Strategies Fund** 

**(formerly, K2 Alternative Strategies Fund)**

**Franklin Alternative Strategies Funds** 

**Financial Statements and Other Important Information**

---

| | |
|:---|:---|
| **Semi-Annual**  | \| November 30, 2025  |

---

------

[This page intentionally left blank.]

------

**Table of Contents**

---

| | |
|:---|:---|
| [Consolidated Financial Highlights and Consolidated Schedule of Investments](#tfihi) | **[3](#tfihi)** |
| [Consolidated Financial Statements](#tsal) | **[101](#tsal)** |
| [Notes to Consolidated Financial Statements](#tnotes) | **[105](#tnotes)** |
| [Changes In and Disagreements with Accountants](#tcad) | **[122](#tcad)** |
| [Results of Meeting(s) of Shareholders](#trom) | **[122](#trom)** |
| [Remuneration Paid to Directors, Officers and Others](#trpd) | **[122](#trpd)** |
| [Board Approval of Management and Subadvisory Agreements](#tbam) | **[122](#tbam)** |

---

<br> 2 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

**Consolidated Financial Highlights** 

**K2 Alternative Strategies Fund**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months** <br>**Ended**<br>**November 30,** <br>**2025**<br>(unaudited) | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  |
|  | **Six Months** <br>**Ended**<br>**November 30,** <br>**2025**<br>(unaudited) | **2025** | **2024** | **2023** | **2022** | **2021**  |
| **Class A**<br>|  |  |  |  |  |  |
| **Per share operating performance**<br>**(for a share outstanding throughout the period)**<br>|  |  |  |  |  |  |
| Net asset value, beginning of period | &nbsp;&nbsp;&nbsp;&nbsp; $11.06 | $11.67 | $10.69 | $11.16 | $12.46 | $11.19  |
| Income from investment operations<sup>a</sup>:<br>|  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>b</sup> | &nbsp;&nbsp;&nbsp;&nbsp;0.11 | 0.29 | 0.24 | 0.15 | (0.06) | (0.08)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | &nbsp;&nbsp;&nbsp;&nbsp;0.61 | 0.36 | 0.79 | (0.32) | (0.68) | 1.45  |
| Total from investment operations | &nbsp;&nbsp;&nbsp;&nbsp;0.72 | 0.65 | 1.03 | (0.17) | (0.74) | 1.37  |
| Less distributions from:<br>|  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | &nbsp;&nbsp;&nbsp;&nbsp; — | (0.69) | (0.05) | (0.21) | (0.06) | —  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gains | &nbsp;&nbsp;&nbsp;&nbsp; — | (0.57) |  | (0.09) | (0.50) | (0.10)  |
| Total distributions | &nbsp;&nbsp;&nbsp;&nbsp; — | (1.26) | (0.05) | (0.30) | (0.56) | (0.10)  |
| Net asset value, end of period | &nbsp;&nbsp;&nbsp;&nbsp; $11.78 | $11.06 | $11.67 | $10.69 | $11.16 | $12.46  |
| Total return<sup>c</sup> | &nbsp;&nbsp;&nbsp;&nbsp; 6.51% | 5.86% | 9.57% | (1.48)% | (6.25)% | 12.25%  |
| **Ratios to average net assets<sup>d</sup>**<br>|  |  |  |  |  |  |
|  Expenses before waiver, payments by affiliates and expense reduction<sup>e</sup> | &nbsp;&nbsp;&nbsp;&nbsp; 2.69% | 2.69% | 2.83% | 2.82% | 2.75% | 2.82%  |
|  Expenses net of waiver, payments by affiliates and expense reduction<sup>e</sup> | &nbsp;&nbsp;&nbsp;&nbsp; 2.36% | 2.40% | 2.57% | 2.64% | 2.60%<sup>f</sup> | 2.64%  |
|  Expenses incurred in connection with securities sold short | &nbsp;&nbsp;&nbsp;&nbsp; 0.41% | 0.45% | 0.47% | 0.45% | 0.40% | 0.44%  |
| Net investment income (loss) | &nbsp;&nbsp;&nbsp;&nbsp; 1.97% | 2.57% | 2.22% | 1.31% | (0.49)% | (0.67)%  |
| **Supplemental data**<br>|  |  |  |  |  |  |
| Net assets, end of period (000's) | &nbsp;&nbsp;&nbsp;&nbsp; $56979 | $56487 | $63320 | $76464 | $94580 | $102138  |
| Portfolio turnover rate | &nbsp;&nbsp;&nbsp;&nbsp; 152.19% | 266.59% | 257.70% | 225.53% | 177.61% | 236.64% |

---

<sup>a</sup> The amount shown for a share outstanding throughout the period may not correlate with the Consolidated 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.

<sup>b</sup> Based on average daily shares outstanding.

<sup>c</sup> Total return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.

<sup>d</sup> Ratios are annualized for periods less than one year.

<sup>e</sup> Includes dividend and/or interest expense on securities sold short and security borrowing fees, if any. See below for the ratios of such expenses to average net assets for the periods presented. See Note 1(e).

<sup>f</sup> Benefit of expense reduction rounds to less than 0.01%.

<br> franklintempleton.com &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accompanying notes are an integral part of these consolidated financial statements. \| Semiannual Report 3

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

**K2 Alternative Strategies Fund (continued)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months** <br>**Ended** <br>**November 30,** <br>**2025** <br>(unaudited) | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  |
|  | **Six Months** <br>**Ended** <br>**November 30,** <br>**2025** <br>(unaudited) | **2025** | **2024** | **2023** | **2022** | **2021**  |
| **Class C**<br>|  |  |  |  |  |  |
| **Per share operating performance** <br>**(for a share outstanding throughout the period)**<br>|  |  |  |  |  |  |
| Net asset value, beginning of period | &nbsp;&nbsp;&nbsp;&nbsp; $10.66 | $11.27 | $10.35 | $10.80 | $12.11 | $10.95  |
| Income from investment operations<sup>a</sup>:<br>|  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>b</sup> | &nbsp;&nbsp;&nbsp;&nbsp;0.07 | 0.20 | 0.15 | 0.06 | (0.15) | (0.15)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | &nbsp;&nbsp;&nbsp;&nbsp;0.58 | 0.34 | 0.77 | (0.31) | (0.66) | 1.41  |
| Total from investment operations | &nbsp;&nbsp;&nbsp;&nbsp;0.65 | 0.54 | 0.92 | (0.25) | (0.81) | 1.26  |
| Less distributions from:<br>|  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | &nbsp;&nbsp;&nbsp;&nbsp; — | (0.58) |  | (0.11) |  | —  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gains | &nbsp;&nbsp;&nbsp;&nbsp; — | (0.57) |  | (0.09) | (0.50) | (0.10)  |
| Total distributions | &nbsp;&nbsp;&nbsp;&nbsp; — | (1.15) |  | (0.20) | (0.50) | (0.10)  |
| Net asset value, end of period | &nbsp;&nbsp;&nbsp;&nbsp; $11.31 | $10.66 | $11.27 | $10.35 | $10.80 | $12.11  |
| Total return<sup>c</sup> | &nbsp;&nbsp;&nbsp;&nbsp; 6.10% | 5.04% | 8.69% | (2.12)% | (7.06)% | 11.51%  |
| **Ratios to average net assets<sup>d</sup>**<br>|  |  |  |  |  |  |
|  Expenses before waiver, payments by affiliates and expense reduction<sup>e</sup> | &nbsp;&nbsp;&nbsp;&nbsp; 3.45% | 3.44% | 3.60% | 3.57% | 3.50% | 3.54%  |
|  Expenses net of waiver, payments by affiliates and expense reduction<sup>e</sup> | &nbsp;&nbsp;&nbsp;&nbsp; 3.11% | 3.15% | 3.33% | 3.39% | 3.35%<sup>f</sup> | 3.36%  |
|  Expenses incurred in connection with securities sold short | &nbsp;&nbsp;&nbsp;&nbsp; 0.41% | 0.45% | 0.47% | 0.45% | 0.40% | 0.44%  |
| Net investment income (loss) | &nbsp;&nbsp;&nbsp;&nbsp; 1.22% | 1.82% | 1.46% | 0.55% | (1.24)% | (1.39)%  |
| **Supplemental data**<br>|  |  |  |  |  |  |
| Net assets, end of period (000's) | &nbsp;&nbsp;&nbsp;&nbsp; $3758 | $4922 | $7957 | $15720 | $24486 | $31541  |
| Portfolio turnover rate | &nbsp;&nbsp;&nbsp;&nbsp; 152.19% | 266.59% | 257.70% | 225.53% | 177.61% | 236.64% |

---

<sup>a</sup> The amount shown for a share outstanding throughout the period may not correlate with the Consolidated 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.

<sup>b</sup> Based on average daily shares outstanding.

<sup>c</sup> Total return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.

<sup>d</sup> Ratios are annualized for periods less than one year.

<sup>e</sup> Includes dividend and/or interest expense on securities sold short and security borrowing fees, if any. See below for the ratios of such expenses to average net assets for the periods presented. See Note 1(e).

<sup>f</sup> Benefit of expense reduction rounds to less than 0.01%.

<br> 4 Semiannual Report \| The accompanying notes are an integral part of these consolidated financial statements. franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

**K2 Alternative Strategies Fund (continued)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months** <br>**Ended** <br>**November 30,** <br>**2025** <br>(unaudited) | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  |
|  | **Six Months** <br>**Ended** <br>**November 30,** <br>**2025** <br>(unaudited) | **2025** | **2024** | **2023** | **2022** | **2021**  |
| **Class R**<br>|  |  |  |  |  |  |
| **Per share operating performance** <br>**(for a share outstanding throughout the period)**<br>|  |  |  |  |  |  |
| Net asset value, beginning of period | &nbsp;&nbsp;&nbsp;&nbsp; $11.10 | $11.73 | $10.73 | $11.13 | $12.44 | $11.20  |
| Income from investment operations<sup>a</sup>:<br>|  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>b</sup> | &nbsp;&nbsp;&nbsp;&nbsp;0.10 | 0.27 | 0.22 | 0.10 | (0.08) | (0.11)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | &nbsp;&nbsp;&nbsp;&nbsp;0.61 | 0.34 | 0.80 | (0.31) | (0.68) | 1.45  |
| Total from investment operations | &nbsp;&nbsp;&nbsp;&nbsp;0.71 | 0.61 | 1.02 | (0.21) | (0.76) | 1.34  |
| Less distributions from:<br>|  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | &nbsp;&nbsp;&nbsp;&nbsp; — | (0.67) | (0.02) | (0.10) | (0.05) | —  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gains | &nbsp;&nbsp;&nbsp;&nbsp; — | (0.57) |  | (0.09) | (0.50) | (0.10)  |
| Total distributions | &nbsp;&nbsp;&nbsp;&nbsp; — | (1.24) | (0.02) | (0.19) | (0.55) | (0.10)  |
| Net asset value, end of period | &nbsp;&nbsp;&nbsp;&nbsp; $11.81 | $11.10 | $11.73 | $10.73 | $11.13 | $12.44  |
| Total return<sup>c</sup> | &nbsp;&nbsp;&nbsp;&nbsp; 6.31% | 5.40% | 9.30% | (1.65)% | (6.50)% | 11.97%  |
| **Ratios to average net assets<sup>d</sup>**<br>|  |  |  |  |  |  |
|  Expenses before waiver, payments by affiliates and expense reduction<sup>e</sup> | &nbsp;&nbsp;&nbsp;&nbsp; 2.96% | 2.94% | 3.07% | 3.07% | 3.04% | 3.06%  |
|  Expenses net of waiver, payments by affiliates and expense reduction<sup>e</sup> | &nbsp;&nbsp;&nbsp;&nbsp; 2.62% | 2.65% | 2.82% | 2.89% | 2.85%<sup>f</sup> | 2.88%  |
|  Expenses incurred in connection with securities sold short | &nbsp;&nbsp;&nbsp;&nbsp; 0.42% | 0.45% | 0.47% | 0.45% | 0.40% | 0.44%  |
| Net investment income (loss) | &nbsp;&nbsp;&nbsp;&nbsp; 1.72% | 2.32% | 1.97% | 1.05% | (0.78)% | (0.91)%  |
| **Supplemental data**<br>|  |  |  |  |  |  |
| Net assets, end of period (000's) | &nbsp;&nbsp;&nbsp;&nbsp; $250 | $442 | $348 | $351 | $811 | $840  |
| Portfolio turnover rate | &nbsp;&nbsp;&nbsp;&nbsp; 152.19% | 266.59% | 257.70% | 225.53% | 177.61% | 236.64% |

---

<sup>a</sup> The amount shown for a share outstanding throughout the period may not correlate with the Consolidated 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.

<sup>b</sup> Based on average daily shares outstanding.

<sup>c</sup> Total return is not annualized for periods less than one year.

<sup>d</sup> Ratios are annualized for periods less than one year.

<sup>e</sup> Includes dividend and/or interest expense on securities sold short and security borrowing fees, if any. See below for the ratios of such expenses to average net assets for the periods presented. See Note 1(e).

<sup>f</sup> Benefit of expense reduction rounds to less than 0.01%.

<br> franklintempleton.com &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accompanying notes are an integral part of these consolidated financial statements. \| Semiannual Report 5

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

**K2 Alternative Strategies Fund (continued)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months** <br>**Ended** <br>**November 30,** <br>**2025** <br>(unaudited) | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  |
|  | **Six Months** <br>**Ended** <br>**November 30,** <br>**2025** <br>(unaudited) | **2025** | **2024** | **2023** | **2022** | **2021**  |
| **Class R6**<br>|  |  |  |  |  |  |
| **Per share operating performance**<br>**(for a share outstanding throughout the period)**<br>|  |  |  |  |  |  |
| Net asset value, beginning of period | &nbsp;&nbsp;&nbsp; $11.15 | $11.77 | $10.78 | $11.27 | $12.58 | $11.25  |
| Income from investment operations<sup>a</sup>:<br>|  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>b</sup> | &nbsp;&nbsp;&nbsp;&nbsp;0.13 | 0.33 | 0.29 | 0.18 | (0.02) | (0.04)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | &nbsp;&nbsp;&nbsp;&nbsp;0.62 | 0.35 | 0.79 | (0.33) | (0.69) | 1.47  |
| Total from investment operations | &nbsp;&nbsp;&nbsp;&nbsp;0.75 | 0.68 | 1.08 | (0.15) | (0.71) | 1.43  |
| Less distributions from:<br>|  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | &nbsp;&nbsp;&nbsp; — | (0.73) | (0.09) | (0.25) | (0.10) | —  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gains | &nbsp;&nbsp;&nbsp; — | (0.57) |  | (0.09) | (0.50) | (0.10)  |
| Total distributions | &nbsp;&nbsp;&nbsp; — | (1.30) | (0.09) | (0.34) | (0.60) | (0.10)  |
| Net asset value, end of period | &nbsp;&nbsp;&nbsp; $11.90 | $11.15 | $11.77 | $10.78 | $11.27 | $12.58  |
| Total return<sup>c</sup> | &nbsp;&nbsp;&nbsp; 6.64% | 6.08% | 10.03% | (1.20)% | (6.05)% | 12.61%  |
| **Ratios to average net assets<sup>d</sup>**<br>|  |  |  |  |  |  |
|  Expenses before waiver, payments by affiliates and expense reduction<sup>e</sup> | &nbsp;&nbsp;&nbsp; 2.36% | 2.37% | 2.47% | 2.48% | 2.44% | 2.50%  |
|  Expenses net of waiver, payments by affiliates and expense reduction<sup>e</sup> | &nbsp;&nbsp;&nbsp; 2.08% | 2.12% | 2.26% | 2.36% | 2.32%<sup>f</sup> | 2.32%  |
|  Expenses incurred in connection with securities sold short | &nbsp;&nbsp;&nbsp; 0.41% | 0.45% | 0.47% | 0.45% | 0.40% | 0.44%  |
| Net investment income (loss) | &nbsp;&nbsp;&nbsp; 2.31% | 2.89% | 2.54% | 1.64% | (0.18)% | (0.35)%  |
| **Supplemental data**<br>|  |  |  |  |  |  |
| Net assets, end of period (000's) | &nbsp;&nbsp;&nbsp; $112063 | $113808 | $124279 | $44192 | $47851 | $27471  |
| Portfolio turnover rate | &nbsp;&nbsp;&nbsp; 152.19% | 266.59% | 257.70% | 225.53% | 177.61% | 236.64% |

---

<sup>a</sup> The amount shown for a share outstanding throughout the period may not correlate with the Consolidated 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.

<sup>b</sup> Based on average daily shares outstanding.

<sup>c</sup> Total return is not annualized for periods less than one year.

<sup>d</sup> Ratios are annualized for periods less than one year.

<sup>e</sup> Includes dividend and/or interest expense on securities sold short and security borrowing fees, if any. See below for the ratios of such expenses to average net assets for the periods presented. See Note 1(e).

<sup>f</sup> Benefit of expense reduction rounds to less than 0.01%.

<br> 6 Semiannual Report \| The accompanying notes are an integral part of these consolidated financial statements. franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

**K2 Alternative Strategies Fund (continued)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months** <br>**Ended** <br>**November 30,** <br>**2025** <br>(unaudited) | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  |
|  | **Six Months** <br>**Ended** <br>**November 30,** <br>**2025** <br>(unaudited) | **2025** | **2024** | **2023** | **2022** | **2021**  |
| **Advisor Class**<br>|  |  |  |  |  |  |
| **Per share operating performance**<br>**(for a share outstanding throughout the period)**<br>|  |  |  |  |  |  |
| Net asset value, beginning of period | &nbsp;&nbsp;&nbsp; $11.14 | $11.76 | $10.76 | $11.24 | $12.55 | $11.23  |
| Income from investment operations<sup>a</sup>:<br>|  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>b</sup> | &nbsp;&nbsp;&nbsp;&nbsp;0.13 | 0.33 | 0.27 | 0.17 | (0.03) | (0.05)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | &nbsp;&nbsp;&nbsp;&nbsp;0.62 | 0.34 | 0.81 | (0.32) | (0.69) | 1.47  |
| Total from investment operations | &nbsp;&nbsp;&nbsp;&nbsp;0.75 | 0.67 | 1.08 | (0.15) | (0.72) | 1.42  |
| Less distributions from:<br>|  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | &nbsp;&nbsp;&nbsp; — | (0.72) | (0.08) | (0.24) | (0.09) | —  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gains | &nbsp;&nbsp;&nbsp; — | (0.57) |  | (0.09) | (0.50) | (0.10)  |
| Total distributions | &nbsp;&nbsp;&nbsp; — | (1.29) | (0.08) | (0.33) | (0.59) | (0.10)  |
| Net asset value, end of period | &nbsp;&nbsp;&nbsp; $11.89 | $11.14 | $11.76 | $10.76 | $11.24 | $12.55  |
| Total return<sup>c</sup> | &nbsp;&nbsp;&nbsp; 6.64% | 6.01% | 9.87% | (1.21)% | (6.05)% | 12.55%  |
| **Ratios to average net assets<sup>d</sup>**<br>|  |  |  |  |  |  |
|  Expenses before waiver, payments by affiliates and expense reduction<sup>e</sup> | &nbsp;&nbsp;&nbsp; 2.44% | 2.44% | 2.60% | 2.57% | 2.50% | 2.57%  |
|  Expenses net of waiver, payments by affiliates and expense reduction<sup>e</sup> | &nbsp;&nbsp;&nbsp; 2.11% | 2.15% | 2.33% | 2.39% | 2.35%<sup>f</sup> | 2.39%  |
|  Expenses incurred in connection with securities sold short | &nbsp;&nbsp;&nbsp; 0.41% | 0.45% | 0.47% | 0.45% | 0.40% | 0.44%  |
| Net investment income (loss) | &nbsp;&nbsp;&nbsp; 2.22% | 2.82% | 2.46% | 1.55% | (0.24)% | (0.42)%  |
| **Supplemental data**<br>|  |  |  |  |  |  |
| Net assets, end of period (000's) | &nbsp;&nbsp;&nbsp; $361655 | $345450 | $438766 | $710974 | $1099387 | $1152105  |
| Portfolio turnover rate | &nbsp;&nbsp;&nbsp; 152.19% | 266.59% | 257.70% | 225.53% | 177.61% | 236.64% |

---

<sup>a</sup> The amount shown for a share outstanding throughout the period may not correlate with the Consolidated 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.

<sup>b</sup> Based on average daily shares outstanding.

<sup>c</sup> Total return is not annualized for periods less than one year.

<sup>d</sup> Ratios are annualized for periods less than one year.

<sup>e</sup> Includes dividend and/or interest expense on securities sold short and security borrowing fees, if any. See below for the ratios of such expenses to average net assets for the periods presented. See Note 1(e).

<sup>f</sup> Benefit of expense reduction rounds to less than 0.01%.

<br> franklintempleton.com &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accompanying notes are an integral part of these consolidated financial statements. \| Semiannual Report 7

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

**Consolidated Schedule of Investments, November 30, 2025 (unaudited)** 

**K2 Alternative Strategies Fund** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Shares/** <br>**Warrants/** <br>**Rights** | **Value**  |
|  | **Common Stocks and Other Equity Interests 18.8%** | **Common Stocks and Other Equity Interests 18.8%** | **Common Stocks and Other Equity Interests 18.8%** | **Common Stocks and Other Equity Interests 18.8%** |
|  | **Aerospace & Defense 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a</sup> | Satellogic Inc., A, 1/25/27, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2058 | &nbsp;&nbsp;&nbsp;&nbsp; $338  |
|  | **Airlines 0.2%**<br>|  |  |  |
| <sup>a,b</sup> | United Airlines Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10981 | &nbsp;&nbsp;&nbsp;&nbsp; 1119623  |
|  | **Automobile Components 0.1%**<br>|  |  |  |
|  | BorgWarner Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11775 | &nbsp;&nbsp;&nbsp;&nbsp; 507031  |
|  | **Automobiles 0.3%**<br>|  |  |  |
| <sup>a</sup> | Stellantis NV | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 129081 | &nbsp;&nbsp;&nbsp;&nbsp; 1381269  |
|  | **Biotechnology 5.1%**<br>|  |  |  |
| <sup>a</sup> | Alnylam Pharmaceuticals Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4183 | &nbsp;&nbsp;&nbsp;&nbsp; 1887495  |
| <sup>a</sup> | Apogee Therapeutics Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18266 | &nbsp;&nbsp;&nbsp;&nbsp; 1314604  |
| <sup>a,c</sup> | Arcutis Biotherapeutics Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 87067 | &nbsp;&nbsp;&nbsp;&nbsp; 2668604  |
| <sup>a</sup> | Argenx SE, ADR | Netherlands | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2601 | &nbsp;&nbsp;&nbsp;&nbsp; 2372060  |
| <sup>a</sup> | Avidity Biosciences Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5456 | &nbsp;&nbsp;&nbsp;&nbsp; 391195  |
| <sup>a</sup> | Beone Medicines Ltd., ADR | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3101 | &nbsp;&nbsp;&nbsp;&nbsp; 1056232  |
| <sup>a</sup> | Disc Medicine Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9694 | &nbsp;&nbsp;&nbsp;&nbsp; 905032  |
| <sup>a</sup> | Insmed Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10805 | &nbsp;&nbsp;&nbsp;&nbsp; 2244955  |
| <sup>a,c</sup> | Kymera Therapeutics Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18583 | &nbsp;&nbsp;&nbsp;&nbsp; 1261414  |
| <sup>a</sup> | Maplight Therapeutics Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1015 | &nbsp;&nbsp;&nbsp;&nbsp; 13834  |
| <sup>a</sup> | Mineralys Therapeutics Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29508 | &nbsp;&nbsp;&nbsp;&nbsp; 1272385  |
| <sup>a</sup> | Neurocrine Biosciences Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9102 | &nbsp;&nbsp;&nbsp;&nbsp; 1384960  |
| <sup>a</sup> | NewAmsterdam Pharma Co. NV | Netherlands | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42845 | &nbsp;&nbsp;&nbsp;&nbsp; 1769499  |
| <sup>a</sup> | Rhythm Pharmaceuticals Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9966 | &nbsp;&nbsp;&nbsp;&nbsp; 1087191  |
| <sup>a,c</sup> | Scholar Rock Holding Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38655 | &nbsp;&nbsp;&nbsp;&nbsp; 1703139  |
| <sup>a</sup> | Travere Therapeutics Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 30642 | &nbsp;&nbsp;&nbsp;&nbsp; 1085033  |
| <sup>a</sup> | uniQure NV | Netherlands | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 44882 | &nbsp;&nbsp;&nbsp;&nbsp; 1234704  |
| <sup>a</sup> | Vaxcyte Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27515 | &nbsp;&nbsp;&nbsp;&nbsp; 1365019  |
| <sup>a</sup> | Vertex Pharmaceuticals Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2134 | &nbsp;&nbsp;&nbsp;&nbsp; 925324  |
| <sup>a</sup> | Xenon Pharmaceuticals Inc. | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31324 | &nbsp;&nbsp;&nbsp;&nbsp; 1400809  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 27343488  |
|  | **Building Products 0.4%**<br>|  |  |  |
| <sup>a</sup> | Johnson Controls International PLC | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17333 | &nbsp;&nbsp;&nbsp;&nbsp; 2016001  |
|  | **Communications Equipment 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a</sup> | Commscope Holding Co. Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3000 | &nbsp;&nbsp;&nbsp;&nbsp; 59220  |
| <sup>a,d</sup> | Riverbed Technology, Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1499 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 59220  |
|  | **Construction & Engineering 0.8%**<br>|  |  |  |
| <sup>a</sup> | Mastec Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12249 | &nbsp;&nbsp;&nbsp;&nbsp; 2619816  |
|  | Quanta Services Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3497 | &nbsp;&nbsp;&nbsp;&nbsp; 1625685  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 4245501  |
|  | **Consumer Discretionary 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a</sup> | Vinty Holding 5 SA | Luxembourg | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11369458 | &nbsp;&nbsp;&nbsp;&nbsp; 34108  |
|  | **Diversified Telecommunication Services 0.1%**<br>|  |  |  |
| <sup>a,b</sup> | Uniti Group Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 55873 | &nbsp;&nbsp;&nbsp;&nbsp; 355911  |

---

<br> 8 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Shares/** <br>**Warrants/** <br>**Rights** | **Value**  |
|  | **Common Stocks and Other Equity Interests (continued)** | **Common Stocks and Other Equity Interests (continued)** | **Common Stocks and Other Equity Interests (continued)** | **Common Stocks and Other Equity Interests (continued)** |
|  | **Electric Utilities 2.6%**<br>|  |  |  |
|  | Constellation Energy Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9228 | &nbsp;&nbsp;&nbsp;&nbsp; $3362314  |
| <sup>b</sup> | Edison International | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5156 | &nbsp;&nbsp;&nbsp;&nbsp; 303637  |
| <sup>b</sup> | Entergy Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26004 | &nbsp;&nbsp;&nbsp;&nbsp; 2535910  |
| <sup>b</sup> | Exelon Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26933 | &nbsp;&nbsp;&nbsp;&nbsp; 1269083  |
| <sup>b</sup> | FirstEnergy Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23425 | &nbsp;&nbsp;&nbsp;&nbsp; 1117841  |
| <sup>b</sup> | NextEra Energy Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27394 | &nbsp;&nbsp;&nbsp;&nbsp; 2363828  |
| <sup>b</sup> | PG&E Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27445 | &nbsp;&nbsp;&nbsp;&nbsp; 442414  |
| <sup>b</sup> | Xcel Energy Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 30767 | &nbsp;&nbsp;&nbsp;&nbsp; 2526278  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 13921305  |
|  | **Electrical Equipment 0.9%**<br>|  |  |  |
| <sup>a,b</sup> | Array Technologies Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35918 | &nbsp;&nbsp;&nbsp;&nbsp; 269744  |
| <sup>a,b</sup> | Enovix Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 94726 | &nbsp;&nbsp;&nbsp;&nbsp; 737916  |
| <sup>a,c</sup> | Eos Energy Enterprises Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 43385 | &nbsp;&nbsp;&nbsp;&nbsp; 652944  |
|  | Fujikura Ltd. | Japan | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5292 | &nbsp;&nbsp;&nbsp;&nbsp; 612689  |
|  | Mitsubishi Electric Corp. | Japan | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 61187 | &nbsp;&nbsp;&nbsp;&nbsp; 1655059  |
| <sup>a</sup> | Nextpower Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9251 | &nbsp;&nbsp;&nbsp;&nbsp; 847577  |
|  | Nidec Corp. | Japan | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16456 | &nbsp;&nbsp;&nbsp;&nbsp; 207772  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 4983701  |
|  | **Electronic Equipment, Instruments & Components 0.4%**<br>|  |  |  |
| <sup>a</sup> | Aeva Technologies Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10828 | &nbsp;&nbsp;&nbsp;&nbsp; 120732  |
| <sup>a</sup> | Coherent Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6521 | &nbsp;&nbsp;&nbsp;&nbsp; 1071140  |
| <sup>a</sup> | Flex Ltd. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15201 | &nbsp;&nbsp;&nbsp;&nbsp; 898531  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 2090403  |
|  | **Financial Services 0.1%**<br>|  |  |  |
| <sup>a</sup> | DSG TopCo Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27996 | &nbsp;&nbsp;&nbsp;&nbsp; 431320  |
| <sup>a,d</sup> | Pershing Square Tontine Holdings Ltd., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42829 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| <sup>d</sup> | Pershing Square Tontine Holdings Ltd., A, 12/31/33, Contingent Value, rts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10707 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| <sup>a,d</sup> | Spree Acquisition Corp. 1 Ltd., 12/22/28, wts. | Israel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3069 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| <sup>a</sup> | Target Global Acquisition I Corp., A, 12/31/27, wts. | Israel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3516 | &nbsp;&nbsp;&nbsp;&nbsp; 37  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 431357  |
|  | **Ground Transportation 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a,c</sup> | Hertz Global Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3643 | &nbsp;&nbsp;&nbsp;&nbsp; 19089  |
|  | **Health Care Equipment & Supplies 0.7%**<br>|  |  |  |
| <sup>a</sup> | Edwards Lifesciences Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24761 | &nbsp;&nbsp;&nbsp;&nbsp; 2146036  |
|  | GE Healthcare Technologies Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6497 | &nbsp;&nbsp;&nbsp;&nbsp; 519695  |
| <sup>a</sup> | Solventum Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15100 | &nbsp;&nbsp;&nbsp;&nbsp; 1287426  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 3953157  |
|  | **Health Care Providers & Services 0.8%**<br>|  |  |  |
| <sup>a</sup> | Community Health Systems Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 78596 | &nbsp;&nbsp;&nbsp;&nbsp; 271942  |
|  | CVS Health Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23238 | &nbsp;&nbsp;&nbsp;&nbsp; 1867406  |
| <sup>a</sup> | Genedx Holdings Corp., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3488 | &nbsp;&nbsp;&nbsp;&nbsp; 582322  |
| <sup>a,c</sup> | Guardant Health Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16346 | &nbsp;&nbsp;&nbsp;&nbsp; 1772233  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 4493903  |
|  | **Hotels, Restaurants & Leisure 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a,e</sup> | Delivery Hero SE, A, 144A | South Korea | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8629 | &nbsp;&nbsp;&nbsp;&nbsp; 201127  |
| <sup>a,d</sup> | HomeToGo SE, 12/31/25, wts. | Luxembourg | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 716 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 201127  |

---

<br> franklintempleton.com Semiannual Report 9

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Shares/** <br>**Warrants/** <br>**Rights** | **Value**  |
|  | **Common Stocks and Other Equity Interests (continued)** | **Common Stocks and Other Equity Interests (continued)** | **Common Stocks and Other Equity Interests (continued)** | **Common Stocks and Other Equity Interests (continued)** |
|  | **Industrial Conglomerates 0.4%**<br>|  |  |  |
|  | 3M Co. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12645 | &nbsp;&nbsp;&nbsp;&nbsp; $2175572  |
|  | **Interactive Media & Services 0.1%**<br>|  |  |  |
| <sup>g</sup> | Tencent Holdings Ltd. | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3924 | &nbsp;&nbsp;&nbsp;&nbsp; 310035  |
|  | **IT Services 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a</sup> | Brand Engagement Network Inc., A, 3/14/29, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 241 | &nbsp;&nbsp;&nbsp;&nbsp; 12  |
|  | **Life Sciences Tools & Services 2.3%**<br>|  |  |  |
|  | Agilent Technologies Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15860 | &nbsp;&nbsp;&nbsp;&nbsp; 2434510  |
|  | Danaher Corp., W | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12897 | &nbsp;&nbsp;&nbsp;&nbsp; 2924782  |
| <sup>a</sup> | ICON PLC | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7562 | &nbsp;&nbsp;&nbsp;&nbsp; 1398970  |
|  | Lonza Group AG | Switzerland | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2674 | &nbsp;&nbsp;&nbsp;&nbsp; 1835101  |
| <sup>a</sup> | Stevanato Group SpA | Italy | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 58007 | &nbsp;&nbsp;&nbsp;&nbsp; 1355043  |
|  | Thermo Fisher Scientific Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4154 | &nbsp;&nbsp;&nbsp;&nbsp; 2454308  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 12402714  |
|  | **Machinery 0.4%**<br>|  |  |  |
| <sup>b</sup> | Caterpillar Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | &nbsp;&nbsp;&nbsp;&nbsp; 1166490  |
|  | Ihi Corp. | Japan | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 41213 | &nbsp;&nbsp;&nbsp;&nbsp; 735735  |
| <sup>a,d</sup> | Maxeon Solar Technologies, 1/15/28, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32750 | &nbsp;&nbsp;&nbsp;&nbsp; 677  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1902902  |
|  | **Media 0.2%**<br>|  |  |  |
| <sup>a,b</sup> | Echostar Corp., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12902 | &nbsp;&nbsp;&nbsp;&nbsp; 945587  |
| <sup>a</sup> | Optimum Communications Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 59384 | &nbsp;&nbsp;&nbsp;&nbsp; 112830  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1058417  |
|  | **Metals & Mining 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a,d</sup> | Samarco Mineracao SA Escrow | Brazil | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 384000 | &nbsp;&nbsp;&nbsp;&nbsp; 14908  |
|  | **Multi-Utilities 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a</sup> | CMS Energy Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29 | &nbsp;&nbsp;&nbsp;&nbsp; 2188  |
|  | **Oil, Gas & Consumable Fuels 0.2%**<br>|  |  |  |
| <sup>a,d,f</sup> | Gazprom PJSC | Russia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 615160 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| <sup>a</sup> | Nabors Energy Transition Corp. II, 9/05/28, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2168 | &nbsp;&nbsp;&nbsp;&nbsp; 3  |
|  | PetroChina Co. Ltd., H | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 286257 | &nbsp;&nbsp;&nbsp;&nbsp; 319919  |
|  | The Williams Cos. Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13067 | &nbsp;&nbsp;&nbsp;&nbsp; 796172  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1116094  |
|  | **Pharmaceuticals 1.9%**<br>|  |  |  |
|  | AstraZeneca PLC, ADR | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16074 | &nbsp;&nbsp;&nbsp;&nbsp; 1490381  |
| <sup>a,c</sup> | Crinetics Pharmaceuticals Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22688 | &nbsp;&nbsp;&nbsp;&nbsp; 1033665  |
|  | Eli Lilly & Co. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1631 | &nbsp;&nbsp;&nbsp;&nbsp; 1754092  |
| <sup>a</sup> | Jazz Pharmaceuticals PLC | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 666 | &nbsp;&nbsp;&nbsp;&nbsp; 117569  |
| <sup>a</sup> | Tarsus Pharmaceuticals Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28057 | &nbsp;&nbsp;&nbsp;&nbsp; 2243438  |
| <sup>a</sup> | Teva Pharmaceutical Industries Ltd., ADR | Israel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 56451 | &nbsp;&nbsp;&nbsp;&nbsp; 1517967  |
|  | UCB SA | Belgium | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7939 | &nbsp;&nbsp;&nbsp;&nbsp; 2218392  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 10375504  |
|  | **Professional Services 0.2%**<br>|  |  |  |
| <sup>a,b</sup> | Falcon's Beyond Global, Inc., A, 3/16/26, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 180 | &nbsp;&nbsp;&nbsp;&nbsp; 324  |
| <sup>b</sup> | Ul Solutions Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11037 | &nbsp;&nbsp;&nbsp;&nbsp; 1006685  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1007009  |
|  | **Real Estate Management & Development 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a,b,d</sup> | Conx Corp., A, 10/30/27, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14679 | &nbsp;&nbsp;&nbsp;&nbsp; —  |

---

<br> 10 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Shares/** <br>**Warrants/** <br>**Rights** | **Value**  |
|  | **Common Stocks and Other Equity Interests (continued)** | **Common Stocks and Other Equity Interests (continued)** | **Common Stocks and Other Equity Interests (continued)** | **Common Stocks and Other Equity Interests (continued)** |
|  | **Semiconductors & Semiconductor Equipment 0.3%**<br>|  |  |  |
| <sup>a</sup> | First Solar Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1037 | &nbsp;&nbsp;&nbsp;&nbsp; $283018  |
| <sup>a,b</sup> | SolarEdge Technologies Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24559 | &nbsp;&nbsp;&nbsp;&nbsp; 897140  |
| <sup>a</sup> | Wolfspeed Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9350 | &nbsp;&nbsp;&nbsp;&nbsp; 189618  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1369776  |
|  | **Software 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a</sup> | Q2 Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 159 | &nbsp;&nbsp;&nbsp;&nbsp; 11469  |
|  | **Specialty Retail 0.3%**<br>|  |  |  |
| <sup>a</sup> | Carmax Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16777 | &nbsp;&nbsp;&nbsp;&nbsp; 648599  |
| <sup>a</sup> | Carvana Co., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1755 | &nbsp;&nbsp;&nbsp;&nbsp; 657248  |
| <sup>a</sup> | Douglas AG | Germany | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5297 | &nbsp;&nbsp;&nbsp;&nbsp; 76116  |
| <sup>a</sup> | Gamestop Corp., 10/30/26, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1438 | &nbsp;&nbsp;&nbsp;&nbsp; 4803  |
| <sup>a</sup> | Teract SA, 7/21/26, wts. | France | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3920 | &nbsp;&nbsp;&nbsp;&nbsp; 5  |
| <sup>a</sup> | Wayfair Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 400 | &nbsp;&nbsp;&nbsp;&nbsp; 44320  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1431091  |
|  | **Wireless Telecommunication Services 0.0%<sup>†</sup>**<br>|  |  |  |
|  | Freenet AG | Germany | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1033 | &nbsp;&nbsp;&nbsp;&nbsp; 34219  |
|  | &nbsp;&nbsp;&nbsp; **Total Common Stocks and Other Equity Interests** <br>**(Cost $76,375,055)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 100368442 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | **Principal Amount<sup>\*</sup>** | **Principal Amount<sup>\*</sup>** |  |
|  | **Convertible Bonds 17.9%** | **Convertible Bonds 17.9%** | **Convertible Bonds 17.9%** | **Convertible Bonds 17.9%** | **Convertible Bonds 17.9%** |
|  | **Aerospace & Defense 0.1%**<br>|  |  |  |  |
| <sup>e</sup> | Astronics Corp., senior note, 144A, zero cpn., 1/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 165000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 192505  |
| <sup>e</sup> | Voyager Technologies Inc., senior note, 144A, 0.75%, 11/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 72000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 70380  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 262885  |
|  | **Automobile Components 0.1%**<br>|  |  |  |  |
| <sup>e</sup> | Indie Semiconductor Inc., senior note, 144A, 4.50%, 11/15/27 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 345000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 353038  |
|  | **Automobiles 0.0%<sup>†</sup>**<br>|  |  |  |  |
|  | Ford Motor Co., senior note, zero cpn., 3/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 36956  |
|  | **Biotechnology 1.5%**<br>|  |  |  |  |
| <sup>e</sup> | Alnylam Pharmaceuticals Inc., senior note, 144A, zero cpn., 9/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 13956  |
|  | Ani Pharmaceuticals Inc., senior note, 2.25%, 9/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 266000  |
| <sup>c</sup> | BioMarin Pharmaceutical Inc., senior sub. note, 1.25%, 5/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 775000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 742140  |
|  | Bridgebio Pharma Inc., senior note, 2.50%, 3/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 568000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1018662  |
|  | Dynavax Technologies Corp., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 2.50%, 5/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 139000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 160371  |
|  | <sup>b,e</sup>144A, 2.00%, 3/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 312000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 301361  |
|  | Exact Sciences Corp., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 0.375%, 3/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 768000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 799099  |
|  | &nbsp;&nbsp; <sup>b</sup>0.375%, 3/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 782000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 802792  |
|  | Guardant Health Inc., senior note, 1.25%, 2/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 53521  |
| <sup>b</sup> | Mirum Pharmaceuticals Inc., senior note, 4.00%, 5/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 431000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1038634  |
| <sup>e</sup> | Pharming Group NV, senior note, Reg S, 4.50%, 4/25/29 | Netherlands | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 100000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 161522  |
|  | PTC Therapeutics Inc., senior note, 1.50%, 9/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 655000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1081700  |
| <sup>c</sup> | Transmedics Group Inc., senior note, 1.50%, 6/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 576000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 984184  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 7423942 |

---

<br> franklintempleton.com Semiannual Report 11

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Principal Amount<sup>\*</sup>** | **Value** |
|  | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** |
|  | **Broadline Retail 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>b,g</sup> | Alibaba Group Holding Ltd., senior note, 0.50%, 6/01/31 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 | &nbsp;&nbsp;&nbsp;&nbsp; $23093  |
|  | **Building Products 0.1%**<br>|  |  |  |
|  | Patrick Industries Inc., senior note, 1.75%, 12/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 173000 | &nbsp;&nbsp;&nbsp;&nbsp; 293954  |
|  | **Capital Markets 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>b</sup> | Coinbase Global Inc., senior note, 0.50%, 6/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 224000 | &nbsp;&nbsp;&nbsp;&nbsp; 232803  |
|  | **Chemicals 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>b</sup> | Amyris Inc., senior note, zero cpn., 11/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1108000 | &nbsp;&nbsp;&nbsp;&nbsp; 9972  |
|  | **Commercial Services & Supplies 0.1%**<br>|  |  |  |
| <sup>e</sup> | The Hertz Corp., senior note, 144A, 5.50%, 10/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 261000 | &nbsp;&nbsp;&nbsp;&nbsp; 207093  |
| <sup>e</sup> | Pitney Bowes Inc., senior note, 144A, 1.50%, 8/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 176000 | &nbsp;&nbsp;&nbsp;&nbsp; 170518  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 377611  |
|  | **Communications Equipment 1.4%**<br>|  |  |  |
|  | Comcast Holdings Corp.,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 2.00%, 10/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 386500 | &nbsp;&nbsp;&nbsp;&nbsp; 244461  |
|  | &nbsp;&nbsp;&nbsp; sub. bond, 2.00%, 11/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 338600 | &nbsp;&nbsp;&nbsp;&nbsp; 241252  |
|  | InterDigital Inc., senior note, 3.50%, 6/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 808000 | &nbsp;&nbsp;&nbsp;&nbsp; 3742416  |
|  | Lumentum Holdings Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 0.50%, 12/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 773000 | &nbsp;&nbsp;&nbsp;&nbsp; 2541877  |
|  | &nbsp;&nbsp;&nbsp; 1.50%, 12/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 136000 | &nbsp;&nbsp;&nbsp;&nbsp; 637432  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 7407438  |
|  | **Computers 0.1%**<br>|  |  |  |
| <sup>e</sup> | Lumentum Holdings Inc., senior note, 144A, 0.375%, 3/15/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71000 | &nbsp;&nbsp;&nbsp;&nbsp; 135178  |
| <sup>e</sup> | Zscaler Inc., senior note, 144A, zero cpn., 7/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 514000 | &nbsp;&nbsp;&nbsp;&nbsp; 492165  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 627343  |
|  | **Construction & Engineering 0.3%**<br>|  |  |  |
| <sup>b</sup> | Fluor Corp., senior note, 1.125%, 8/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 322000 | &nbsp;&nbsp;&nbsp;&nbsp; 382762  |
|  | Granite Construction Inc., senior note, 3.75%, 5/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 361000 | &nbsp;&nbsp;&nbsp;&nbsp; 863809  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1246571  |
|  | **Consumer Cyclical 0.1%**<br>|  |  |  |
| <sup>b,g</sup> | H World Group Ltd., senior note, 3.00%, 5/01/26 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 384000 | &nbsp;&nbsp;&nbsp;&nbsp; 482787  |
|  | **Consumer Finance 0.5%**<br>|  |  |  |
| <sup>b</sup> | Encore Capital Group Inc., senior note, 4.00%, 3/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 392000 | &nbsp;&nbsp;&nbsp;&nbsp; 422495  |
| <sup>e</sup> | EZCORP Inc., senior note, 144A, 3.75%, 12/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71000 | &nbsp;&nbsp;&nbsp;&nbsp; 131183  |
| <sup>e</sup> | SoFi Technologies Inc., senior note, 144A,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 1.25%, 3/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 393000 | &nbsp;&nbsp;&nbsp;&nbsp; 1253670  |
|  | &nbsp;&nbsp;&nbsp; zero cpn., 10/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 455000 | &nbsp;&nbsp;&nbsp;&nbsp; 645304  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 2452652  |
|  | **Cosmetics & Personal Care 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>e</sup> | Oddity Finance LLC, senior note, 144A, zero cpn., 6/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 128000 | &nbsp;&nbsp;&nbsp;&nbsp; 110169  |
|  | **Diversified Consumer Services 0.3%**<br>|  |  |  |
|  | Affirm Holdings Inc., senior note,<br>|  |  |  |
|  | <sup>b,e</sup>144A, 0.75%, 12/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 311000 | &nbsp;&nbsp;&nbsp;&nbsp; 333706  |
|  | &nbsp;&nbsp;&nbsp; zero cpn., 11/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 654000 | &nbsp;&nbsp;&nbsp;&nbsp; 629451  |
|  | Stride Inc., senior note, 1.125%, 9/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 201000 | &nbsp;&nbsp;&nbsp;&nbsp; 270345  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1233502  |
|  | **Diversified Financial Services 0.5%**<br>|  |  |  |
| <sup>c,e</sup> | Cleanspark Inc., senior note, 144A, zero cpn., 6/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 | &nbsp;&nbsp;&nbsp;&nbsp; 18134  |
| <sup>e</sup> | Coinbase Global Inc., senior note, 144A, zero cpn., 10/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 250000 | &nbsp;&nbsp;&nbsp;&nbsp; 246850  |

---

<br> 12 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Principal Amount<sup>\*</sup>** | **Value** |
|  | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** |
|  | **Diversified Financial Services (continued)**<br>|  |  |  |
| <sup>e</sup> | Galaxy Digital Holdings LP, senior note, 144A,<br>|  |  |  |
|  | &nbsp;&nbsp; <sup>b</sup>3.00%, 12/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 500000 | &nbsp;&nbsp;&nbsp;&nbsp; $589906  |
|  | &nbsp;&nbsp; <sup>c</sup>2.50%, 12/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 500000 | &nbsp;&nbsp;&nbsp;&nbsp; 706577  |
|  | &nbsp;&nbsp;&nbsp; 0.50%, 5/01/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 | &nbsp;&nbsp;&nbsp;&nbsp; 11691  |
| <sup>e</sup> | Terawulf Inc., senior note, 144A, 2.75%, 2/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 405000 | &nbsp;&nbsp;&nbsp;&nbsp; 830387  |
| <sup>b</sup> | Upstart Holdings Inc., senior note, 2.00%, 10/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 249000 | &nbsp;&nbsp;&nbsp;&nbsp; 314105  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 2717650  |
|  | **Diversified Telecommunication Services 0.2%**<br>|  |  |  |
| <sup>b,e</sup> | A10 Networks Inc., senior note, 144A, 2.75%, 4/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 129000 | &nbsp;&nbsp;&nbsp;&nbsp; 132901  |
| <sup>e</sup> | Ast Spacemobile Inc., senior note, 144A, 4.25%, 3/01/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 129000 | &nbsp;&nbsp;&nbsp;&nbsp; 305864  |
| <sup>b,e</sup> | Match Group Financeco 3 Inc., senior bond, 144A, 2.00%, 1/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 632000 | &nbsp;&nbsp;&nbsp;&nbsp; 566272  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1005037  |
|  | **Electric Utilities 0.4%**<br>|  |  |  |
|  | Duke Energy Corp., senior note, 4.125%, 4/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 143000 | &nbsp;&nbsp;&nbsp;&nbsp; 153429  |
| <sup>b,h</sup> | Echostar Corp., senior secured note, PIK, 3.875%, 11/30/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 781503 | &nbsp;&nbsp;&nbsp;&nbsp; 1845579  |
|  | Evergy Inc., senior note, 4.50%, 12/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 212000 | &nbsp;&nbsp;&nbsp;&nbsp; 273353  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 2272361  |
|  | **Electrical Equipment 0.9%**<br>|  |  |  |
|  | Bloom Energy Corp., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 3.00%, 6/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 401000 | &nbsp;&nbsp;&nbsp;&nbsp; 2347539  |
|  | &nbsp;&nbsp;&nbsp; 3.00%, 6/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 498000 | &nbsp;&nbsp;&nbsp;&nbsp; 2646123  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 4993662  |
|  | **Electronic Equipment, Instruments & Components 0.2%**<br>|  |  |  |
| <sup>b</sup> | Applied Optoelectronics Inc., senior note, 2.75%, 1/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 111000 | &nbsp;&nbsp;&nbsp;&nbsp; 113651  |
| <sup>b,e</sup> | Enovix Corp., senior note, 144A, 4.75%, 9/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 186000 | &nbsp;&nbsp;&nbsp;&nbsp; 183619  |
|  | OSI Systems Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp; <sup>b</sup>2.25%, 8/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 94000 | &nbsp;&nbsp;&nbsp;&nbsp; 143949  |
|  | &nbsp;&nbsp; <sup>e</sup>144A, 0.50%, 2/01/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28000 | &nbsp;&nbsp;&nbsp;&nbsp; 28235  |
|  | PAR Technology Corp., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 2.875%, 4/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36000 | &nbsp;&nbsp;&nbsp;&nbsp; 37238  |
|  | &nbsp;&nbsp; <sup>b</sup>1.50%, 10/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 323000 | &nbsp;&nbsp;&nbsp;&nbsp; 312448  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 819140  |
|  | **Energy Equipment & Services 0.0%<sup>†</sup>**<br>|  |  |  |
|  | TETRA Tech Inc., senior note, 2.25%, 8/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35000 | &nbsp;&nbsp;&nbsp;&nbsp; 38540  |
|  | **Energy-Alternate Sources 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>e</sup> | Eos Energy Enterprises Inc., senior note, 144A, 1.75%, 12/01/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7000 | &nbsp;&nbsp;&nbsp;&nbsp; 7847  |
| <sup>e</sup> | Plug Power Inc., senior note, 144A, 6.75%, 12/01/33 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71000 | &nbsp;&nbsp;&nbsp;&nbsp; 69327  |
|  | Solaredge Technologies Inc., senior note, 2.25%, 7/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 | &nbsp;&nbsp;&nbsp;&nbsp; 18927  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 96101  |
|  | **Entertainment 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>e</sup> | Live Nation Entertainment Inc., senior note, 144A, 2.875%, 1/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 107000 | &nbsp;&nbsp;&nbsp;&nbsp; 108337  |
|  | **Equity Real Estate Investment Trusts (REITs) 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>e</sup> | Hat Holdings I LLC / Hat Holdings II LLC, senior note, 144A, 3.75%, 8/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 143000 | &nbsp;&nbsp;&nbsp;&nbsp; 192878  |
|  | **Financial Services 1.4%**<br>|  |  |  |
| <sup>g</sup> | Bit Digital Inc., senior note, 4.00%, 10/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 78000 | &nbsp;&nbsp;&nbsp;&nbsp; 69215  |
| <sup>e</sup> | Bitdeer Technologies Group, senior note, 144A, 4.00%, 11/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 163000 | &nbsp;&nbsp;&nbsp;&nbsp; 169569  |
|  | Cipher Mining Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 1.75%, 5/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 236000 | &nbsp;&nbsp;&nbsp;&nbsp; 1104032  |
|  | &nbsp;&nbsp; <sup>e</sup>144A, zero cpn., 10/01/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 238000 | &nbsp;&nbsp;&nbsp;&nbsp; 353207  |
| <sup>e</sup> | Cleanspark Inc., senior note, 144A, zero cpn., 2/15/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 370000 | &nbsp;&nbsp;&nbsp;&nbsp; 366374  |

---

<br> franklintempleton.com Semiannual Report 13

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Principal Amount<sup>\*</sup>** | **Value** |
|  | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** |
|  | **Financial Services (continued)**<br>|  |  |  |
| <sup>e</sup> | Iren Ltd., senior note, 144A,<br>|  |  |  |
|  | &nbsp;&nbsp; <sup>b</sup>3.25%, 6/15/30 | Australia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 391000 | &nbsp;&nbsp;&nbsp;&nbsp; $1176128  |
|  | &nbsp;&nbsp;&nbsp; 3.50%, 12/15/29 | Australia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 902000 | &nbsp;&nbsp;&nbsp;&nbsp; 3304928  |
|  | &nbsp;&nbsp;&nbsp; zero cpn., 7/01/31 | Australia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 | &nbsp;&nbsp;&nbsp;&nbsp; 12420  |
| <sup>e</sup> | Mara Holdings Inc., senior note, 144A, zero cpn., 8/01/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 270000 | &nbsp;&nbsp;&nbsp;&nbsp; 218484  |
| <sup>e</sup> | Riot Platforms Inc., senior note, 144A, 0.75%, 1/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71000 | &nbsp;&nbsp;&nbsp;&nbsp; 94608  |
| <sup>e</sup> | Terawulf Inc., senior note, 144A, zero cpn., 5/01/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 | &nbsp;&nbsp;&nbsp;&nbsp; 14257  |
|  | Wisdomtree Inc., senior note, 3.25%, 8/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 647000 | &nbsp;&nbsp;&nbsp;&nbsp; 736561  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 7619783  |
|  | **Food & Beverage 0.1%**<br>|  |  |  |
| <sup>b,e</sup> | The Cheesecake Factory Inc., senior note, 144A, 2.00%, 3/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 179000 | &nbsp;&nbsp;&nbsp;&nbsp; 170964  |
| <sup>b</sup> | MGP Ingredients Inc., senior bond, 1.875%, 11/15/41 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 437000 | &nbsp;&nbsp;&nbsp;&nbsp; 421705  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 592669  |
|  | **Food & Staples Retailing 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>e</sup> | JBT Marel Corp., senior note, 144A, 0.375%, 9/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35000 | &nbsp;&nbsp;&nbsp;&nbsp; 34652  |
|  | **Food Products 0.0%<sup>†</sup>**<br>|  |  |  |
|  | JBT Marel Corp., senior note, 0.25%, 5/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 129000 | &nbsp;&nbsp;&nbsp;&nbsp; 130780  |
|  | **Health Care Equipment & Supplies 0.6%**<br>|  |  |  |
| <sup>b</sup> | Alphatec Holdings Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 0.75%, 8/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 227000 | &nbsp;&nbsp;&nbsp;&nbsp; 295526  |
|  | &nbsp;&nbsp; <sup>e</sup>144A, 0.75%, 3/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 388000 | &nbsp;&nbsp;&nbsp;&nbsp; 625805  |
| <sup>c</sup> | Conmed Corp., senior note, 2.25%, 6/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 839000 | &nbsp;&nbsp;&nbsp;&nbsp; 802034  |
| <sup>b</sup> | DexCom Inc., senior note, 0.375%, 5/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 452000 | &nbsp;&nbsp;&nbsp;&nbsp; 412784  |
|  | Enovis Corp., senior note, 3.875%, 10/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31000 | &nbsp;&nbsp;&nbsp;&nbsp; 30805  |
| <sup>e</sup> | Exact Sciences Corp., senior note, 144A, 2.00%, 3/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 | &nbsp;&nbsp;&nbsp;&nbsp; 19378  |
|  | Haemonetics Corp., senior note, 2.50%, 6/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 142000 | &nbsp;&nbsp;&nbsp;&nbsp; 147368  |
|  | Lantheus Holdings Inc., senior note, 2.625%, 12/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 280000 | &nbsp;&nbsp;&nbsp;&nbsp; 309470  |
| <sup>e</sup> | Lemaitre Vascular Inc., senior note, 144A, 2.50%, 2/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 92000 | &nbsp;&nbsp;&nbsp;&nbsp; 93058  |
| <sup>b</sup> | Livanova PLC, senior note, 2.50%, 3/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 497000 | &nbsp;&nbsp;&nbsp;&nbsp; 587255  |
| <sup>e</sup> | Omnicell Inc., senior note, 144A, 1.00%, 12/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 70000 | &nbsp;&nbsp;&nbsp;&nbsp; 69282  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 3392765  |
|  | **Health Care Providers & Services 0.2%**<br>|  |  |  |
|  | Guardant Health Inc., senior note, zero cpn., 11/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 931000 | &nbsp;&nbsp;&nbsp;&nbsp; 1019190  |
|  | **Health Care Technology 0.3%**<br>|  |  |  |
|  | Bill Holdings Inc., senior note, zero cpn., 4/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49000 | &nbsp;&nbsp;&nbsp;&nbsp; 46661  |
| <sup>b</sup> | Irhythm Technologies Inc., senior note, 1.50%, 9/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 114000 | &nbsp;&nbsp;&nbsp;&nbsp; 165370  |
| <sup>b</sup> | Nutanix Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 0.25%, 10/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 100000 | &nbsp;&nbsp;&nbsp;&nbsp; 107889  |
|  | &nbsp;&nbsp; <sup>e</sup>144A, 0.50%, 12/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 572000 | &nbsp;&nbsp;&nbsp;&nbsp; 536193  |
|  | Pros Holdings Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 2.25%, 9/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 96000 | &nbsp;&nbsp;&nbsp;&nbsp; 95256  |
|  | <sup>b,e</sup>144A, 2.50%, 7/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 409000 | &nbsp;&nbsp;&nbsp;&nbsp; 533005  |
|  | Teladoc Health Inc., senior note, 1.25%, 6/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 165000 | &nbsp;&nbsp;&nbsp;&nbsp; 156172  |
|  | Unity Software Inc., senior note, zero cpn., 11/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 234000 | &nbsp;&nbsp;&nbsp;&nbsp; 224816  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1865362  |
|  | **Hotel & Resort REITs 0.1%**<br>|  |  |  |
|  | Pebblebrook Hotel Trust, senior note, 1.75%, 12/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 136000 | &nbsp;&nbsp;&nbsp;&nbsp; 130904  |
|  | Summit Hotel Properties Inc., senior note, 1.50%, 2/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 668000 | &nbsp;&nbsp;&nbsp;&nbsp; 663324  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 794228  |
|  | **Hotels, Restaurants & Leisure 0.3%**<br>|  |  |  |
| <sup>e</sup> | Cracker Barrel Old Country Store Inc., senior note, 144A, 1.75%, 9/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35000 | &nbsp;&nbsp;&nbsp;&nbsp; $26901  |

---

<br> 14 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Principal Amount<sup>\*</sup>** | **Value** |
|  | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** |
|  | **Hotels, Restaurants & Leisure (continued)**<br>|  |  |  |
|  | Draftkings Holdings Inc., senior note, zero cpn., 3/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 492000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 444030  |
|  | Marriott Vacations Worldwide Corp., senior note, 3.25%, 12/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 114000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 108311  |
| <sup>c</sup> | Shake Shack Inc., senior note, zero cpn., 3/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 33634  |
| <sup>g</sup> | Trip.com Group Ltd., senior note, 0.75%, 6/15/29 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 780000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 949451  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1562327  |
|  | **Insurance 0.1%**<br>|  |  |  |
| <sup>e</sup> | &nbsp;&nbsp;&nbsp; Ping An Insurance Group Co. of China Ltd., senior note, Reg S, <br>0.875%, 7/22/29 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 287200  |
|  | **Interactive Media & Services 0.0%<sup>†</sup>**<br>|  |  |  |
|  | Snap Inc., senior note, 0.125%, 3/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 219000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 198255  |
|  | **Internet & Direct Marketing Retail 0.4%**<br>|  |  |  |
| <sup>e</sup> | Doordash Inc., senior note, 144A, zero cpn., 5/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37548  |
| <sup>b</sup> | Etsy Inc., senior note, 0.25%, 6/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 720000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 642060  |
|  | Grab Holdings Ltd., senior note, zero cpn., 6/15/30 | Singapore | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 143000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 157196  |
| <sup>e</sup> | Hims & Hers Health Inc., senior note, 144A, zero cpn., 5/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 33643  |
| <sup>e</sup> | Opendoor Technologies Inc., senior note, 144A, 7.00%, 5/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 66000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 337280  |
| <sup>e</sup> | Uber Technologies Inc., senior secured note, 144A, zero cpn., 5/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13954  |
| <sup>e</sup> | Wix.Com Ltd., senior note, 144A, zero cpn., 9/15/30 | Israel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 30010  |
| <sup>b</sup> | Ziff Davis Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 1.75%, 11/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 348000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 337996  |
|  | &nbsp;&nbsp; <sup>e</sup>144A, 3.625%, 3/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 648000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 629861  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2219548  |
|  | **IT Services 2.1%**<br>|  |  |  |
| <sup>b</sup> | Akamai Technologies Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 0.375%, 9/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 119000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 121060  |
|  | &nbsp;&nbsp;&nbsp; 1.125%, 2/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 289000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 289093  |
| <sup>b,e</sup> | Applied Digital Corp., senior note, 144A, 2.75%, 6/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 517000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1515611  |
|  | Cloudflare Inc., senior note, zero cpn., 8/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 659000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 782167  |
| <sup>e</sup> | Core Scientific Inc., senior note, 144A, 3.00%, 9/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 444000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 772380  |
|  | Digitalocean Holdings Inc., senior note, zero cpn., 12/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 101000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 97339  |
| <sup>e</sup> | Par Technology Corp., senior note, 144A, 1.00%, 1/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18750  |
| <sup>b</sup> | Rapid7 Inc., senior note, 0.25%, 3/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 429000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 403796  |
|  | Seagate HDD Cayman, senior note, 3.50%, 6/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 636000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2139969  |
| <sup>b</sup> | Shift4 Payments Inc., senior note, 0.50%, 8/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 623000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 614356  |
|  | Western Digital Corp., senior note, 3.00%, 11/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1042000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4531345  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11285866  |
|  | **Leisure Products 0.2%**<br>|  |  |  |
| <sup>b,e</sup> | NCL Corp. Ltd., senior note, 144A, 0.75%, 9/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 429000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 385832  |
|  | Peloton Interactive Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 5.50%, 12/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 202000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 362514  |
|  | &nbsp;&nbsp;&nbsp; zero cpn., 2/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 501000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 491606  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1239952  |
|  | **Life Sciences Tools & Services 0.0%<sup>†</sup>**<br>|  |  |  |
|  | Inotiv Inc., senior note, 3.25%, 10/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 244000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 59628  |
| <sup>e</sup> | Tempus AI Inc., senior note, 144A, 0.75%, 7/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 113000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 139554  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 199182  |
|  | **Machinery 0.1%**<br>|  |  |  |
| <sup>b</sup> | The Greenbrier Cos. Inc., senior note, 2.875%, 4/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 361000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 382750  |

---

<br> franklintempleton.com Semiannual Report 15

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Principal Amount<sup>\*</sup>** | **Value** |
|  | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** |
|  | **Media 0.3%**<br>|  |  |  |
|  | Liberty Interactive LLC,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 4.00%, 11/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 501000 | &nbsp;&nbsp;&nbsp;&nbsp; $32565  |
|  | &nbsp;&nbsp;&nbsp; senior note, 3.75%, 2/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 860000 | &nbsp;&nbsp;&nbsp;&nbsp; 60200  |
| <sup>e</sup> | Liberty Media Corp., senior bond, 144A, 2.375%, 9/30/53 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 532000 | &nbsp;&nbsp;&nbsp;&nbsp; 722634  |
| <sup>b</sup> | Sirius XM Holdings Inc., senior note, 3.75%, 3/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 801000 | &nbsp;&nbsp;&nbsp;&nbsp; 821025  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1636424  |
|  | **Metals & Mining 0.3%**<br>|  |  |  |
| <sup>e</sup> | B2gold Corp., senior note, 144A, 2.75%, 2/01/30 | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 501000 | &nbsp;&nbsp;&nbsp;&nbsp; 813744  |
|  | Equinox Gold Corp., senior note, 4.75%, 10/15/28 | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 106000 | &nbsp;&nbsp;&nbsp;&nbsp; 246121  |
| <sup>b</sup> | Fortuna Mining Corp., senior note, 3.75%, 6/30/29 | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 212000 | &nbsp;&nbsp;&nbsp;&nbsp; 369410  |
| <sup>e</sup> | Mcewen Inc., senior note, 144A, 5.25%, 8/15/30 | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 43000 | &nbsp;&nbsp;&nbsp;&nbsp; 81997  |
|  | Silvercorp Metals Inc., senior note, 4.75%, 12/15/29 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71000 | &nbsp;&nbsp;&nbsp;&nbsp; 137115  |
|  | SSR Mining Inc., senior bond, 2.50%, 4/01/39 | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 | &nbsp;&nbsp;&nbsp;&nbsp; 19114  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1667501  |
|  | **Oil, Gas & Consumable Fuels 0.1%**<br>|  |  |  |
|  | Solaris Energy Infrastructure Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 4.75%, 5/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 229000 | &nbsp;&nbsp;&nbsp;&nbsp; 471740  |
|  | &nbsp;&nbsp; <sup>b</sup>0.25%, 10/01/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 165000 | &nbsp;&nbsp;&nbsp;&nbsp; 181515  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 653255  |
|  | **Pharmaceuticals 0.3%**<br>|  |  |  |
|  | Amphastar Pharmaceuticals Inc., senior note, 2.00%, 3/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36000 | &nbsp;&nbsp;&nbsp;&nbsp; 33181  |
|  | Ascendis Pharma A/S, senior note, 2.25%, 4/01/28 | Denmark | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 121000 | &nbsp;&nbsp;&nbsp;&nbsp; 171572  |
| <sup>b</sup> | Collegium Pharmaceutical Inc., senior note, 2.875%, 2/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 206000 | &nbsp;&nbsp;&nbsp;&nbsp; 292584  |
| <sup>e</sup> | Cormedix Inc., senior note, 144A, 4.00%, 8/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 165000 | &nbsp;&nbsp;&nbsp;&nbsp; 179685  |
| <sup>b</sup> | Jazz Investments I Ltd., senior note, 2.00%, 6/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 488000 | &nbsp;&nbsp;&nbsp;&nbsp; 579167  |
| <sup>b</sup> | Pacira Biosciences Inc., senior note, 2.125%, 5/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 436000 | &nbsp;&nbsp;&nbsp;&nbsp; 426514  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1682703  |
|  | **Professional Services 0.2%**<br>|  |  |  |
| <sup>b</sup> | Dayforce Inc., senior note, 0.25%, 3/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 997000 | &nbsp;&nbsp;&nbsp;&nbsp; 981796  |
|  | **Real Estate Management & Development 0.1%**<br>|  |  |  |
| <sup>e</sup> | Kaisa Group Holdings Ltd., senior secured note, 144A, zero cpn.,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 12/31/25 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34091 | &nbsp;&nbsp;&nbsp;&nbsp; 639  |
|  | &nbsp;&nbsp;&nbsp; 12/31/26 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 45451 | &nbsp;&nbsp;&nbsp;&nbsp; 693  |
|  | &nbsp;&nbsp;&nbsp; 12/31/27 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 56816 | &nbsp;&nbsp;&nbsp;&nbsp; 426  |
|  | &nbsp;&nbsp;&nbsp; 12/31/28 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 90902 | &nbsp;&nbsp;&nbsp;&nbsp; 568  |
|  | &nbsp;&nbsp;&nbsp; 12/31/29 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 90902 | &nbsp;&nbsp;&nbsp;&nbsp; 568  |
|  | &nbsp;&nbsp;&nbsp; 12/31/30 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 113628 | &nbsp;&nbsp;&nbsp;&nbsp; 423  |
|  | &nbsp;&nbsp;&nbsp; 12/31/31 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 113628 | &nbsp;&nbsp;&nbsp;&nbsp; 426  |
|  | &nbsp;&nbsp;&nbsp; 12/31/32 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 214367 | &nbsp;&nbsp;&nbsp;&nbsp; 2680  |
| <sup>e</sup> | Pebblebrook Hotel Trust, senior note, 144A, 1.625%, 1/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 152000 | &nbsp;&nbsp;&nbsp;&nbsp; 147212  |
| <sup>e</sup> | Storagevault Canada Inc., senior note, 144A, 5.00%, 3/31/28 | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 296000<br> CAD | &nbsp;&nbsp;&nbsp;&nbsp; 213513  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 367148  |
|  | **Retail REITs 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>e</sup> | Kite Realty Group LP, senior note, 144A, 0.75%, 4/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36000 | &nbsp;&nbsp;&nbsp;&nbsp; 37322  |
|  | **Semiconductors & Semiconductor Equipment 1.1%**<br>|  |  |  |
| <sup>e</sup> | Camtek Ltd., senior note, 144A, zero cpn., 9/15/30 | Israel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 | &nbsp;&nbsp;&nbsp;&nbsp; 15950  |
| <sup>e</sup> | COHU Inc., senior note, 144A, 1.50%, 1/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71000 | &nbsp;&nbsp;&nbsp;&nbsp; 80953  |
|  | Impinj Inc., senior note, 1.125%, 5/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 254000 | &nbsp;&nbsp;&nbsp;&nbsp; 408162  |
| <sup>b,e</sup> | Indie Semiconductor Inc., senior note, 144A, 3.50%, 12/15/29 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 333000 | &nbsp;&nbsp;&nbsp;&nbsp; 349117  |
|  | Macom Technology Solutions Holdings Inc., senior note, 0.25%, 3/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 285000 | &nbsp;&nbsp;&nbsp;&nbsp; 606881  |
| <sup>b</sup> | Microchip Technology Inc., senior note, 0.75%, 6/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 637000 | &nbsp;&nbsp;&nbsp;&nbsp; 614705  |

---

<br> 16 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Principal Amount<sup>\*</sup>** | **Value** |
|  | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** |
|  | **Semiconductors & Semiconductor Equipment (continued)**<br>|  |  |  |
|  | MKS Inc., senior note, 1.25%, 6/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 222000 | &nbsp;&nbsp;&nbsp;&nbsp; $279984  |
|  | On Semiconductor Corp., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp; <sup>b</sup>0.50%, 3/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 761000 | &nbsp;&nbsp;&nbsp;&nbsp; 708324  |
|  | &nbsp;&nbsp;&nbsp; zero cpn., 5/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 877000 | &nbsp;&nbsp;&nbsp;&nbsp; 1010592  |
| <sup>b</sup> | Penguin Solutions Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 2.00%, 2/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 451000 | &nbsp;&nbsp;&nbsp;&nbsp; 529940  |
|  | &nbsp;&nbsp;&nbsp; 2.00%, 8/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 380000 | &nbsp;&nbsp;&nbsp;&nbsp; 394265  |
|  | Semtech Corp., senior note, 1.625%, 11/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 209000 | &nbsp;&nbsp;&nbsp;&nbsp; 428082  |
| <sup>b</sup> | Veeco Instruments Inc., senior note, 2.875%, 6/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 316000 | &nbsp;&nbsp;&nbsp;&nbsp; 398029  |
|  | Vishay Intertechnology Inc., senior note, 2.25%, 9/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71000 | &nbsp;&nbsp;&nbsp;&nbsp; 62947  |
|  | Wolfspeed Inc., secured note, 2.50%, 6/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37000 | &nbsp;&nbsp;&nbsp;&nbsp; 62877  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 5950808  |
|  | **Software 1.7%**<br>|  |  |  |
| <sup>b,e</sup> | Akamai Technologies Inc., senior note, 144A, 0.25%, 5/15/33 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 142000 | &nbsp;&nbsp;&nbsp;&nbsp; 159991  |
| <sup>e</sup> | Alkami Technology Inc., senior note, 144A, 1.50%, 3/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18000 | &nbsp;&nbsp;&nbsp;&nbsp; 18069  |
| <sup>e</sup> | Bigbear.Ai Holdings Inc., senior secured note, 144A, 6.00%, 12/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 126000 | &nbsp;&nbsp;&nbsp;&nbsp; 241589  |
| <sup>e</sup> | Bill Holdings Inc., senior note, 144A, zero cpn., 4/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 250000 | &nbsp;&nbsp;&nbsp;&nbsp; 226840  |
|  | Blackline Inc., senior note, 1.00%, 6/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71000 | &nbsp;&nbsp;&nbsp;&nbsp; 76542  |
|  | Box Inc., senior note, 1.50%, 9/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 313000 | &nbsp;&nbsp;&nbsp;&nbsp; 305492  |
| <sup>e</sup> | Cloudflare Inc., senior note, 144A, zero cpn., 6/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 391000 | &nbsp;&nbsp;&nbsp;&nbsp; 430449  |
| <sup>e</sup> | Digitalocean Holdings Inc., senior note, 144A, zero cpn., 8/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 110000 | &nbsp;&nbsp;&nbsp;&nbsp; 145981  |
|  | Dropbox Inc., senior note, zero cpn.,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 3/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 771000 | &nbsp;&nbsp;&nbsp;&nbsp; 762487  |
|  | &nbsp;&nbsp;&nbsp; 3/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 512000 | &nbsp;&nbsp;&nbsp;&nbsp; 529896  |
| <sup>b</sup> | Five9 Inc., senior note, 1.00%, 3/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 583000 | &nbsp;&nbsp;&nbsp;&nbsp; 523350  |
|  | Guidewire Software Inc., senior note, 1.25%, 11/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 295000 | &nbsp;&nbsp;&nbsp;&nbsp; 338408  |
| <sup>b</sup> | Mitek Systems Inc., senior note, 0.75%, 2/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 533000 | &nbsp;&nbsp;&nbsp;&nbsp; 528869  |
| <sup>e</sup> | Nebius Group NV, senior note, 144A,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 2.00%, 6/05/29 | Netherlands | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 268000 | &nbsp;&nbsp;&nbsp;&nbsp; 539052  |
|  | &nbsp;&nbsp;&nbsp; 1.00%, 9/15/30 | Netherlands | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 336000 | &nbsp;&nbsp;&nbsp;&nbsp; 353908  |
|  | &nbsp;&nbsp; <sup>b</sup>3.00%, 6/05/31 | Netherlands | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 623000 | &nbsp;&nbsp;&nbsp;&nbsp; 1265033  |
|  | &nbsp;&nbsp;&nbsp; 2.75%, 9/15/32 | Netherlands | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28000 | &nbsp;&nbsp;&nbsp;&nbsp; 29273  |
|  | Pagaya Technologies Ltd., senior note, 6.125%, 10/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 265000 | &nbsp;&nbsp;&nbsp;&nbsp; 552154  |
| <sup>b,e</sup> | Porch Group Inc., senior secured note, 144A, 6.75%, 10/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 395000 | &nbsp;&nbsp;&nbsp;&nbsp; 398358  |
| <sup>b</sup> | Q2 Holdings Inc., senior note, 0.75%, 6/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37000 | &nbsp;&nbsp;&nbsp;&nbsp; 37645  |
| <sup>e</sup> | Rubrik Inc., senior note, 144A, zero cpn., 6/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 515000 | &nbsp;&nbsp;&nbsp;&nbsp; 486188  |
|  | Snowflake Inc., senior note, zero cpn., 10/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 361000 | &nbsp;&nbsp;&nbsp;&nbsp; 600290  |
|  | Strategy Inc., senior note, 2.25%, 6/15/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 | &nbsp;&nbsp;&nbsp;&nbsp; 16524  |
| <sup>b</sup> | Vertex Inc., senior note, 0.75%, 5/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 504000 | &nbsp;&nbsp;&nbsp;&nbsp; 472500  |
| <sup>b</sup> | Workiva Inc., senior note, 1.25%, 8/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71000 | &nbsp;&nbsp;&nbsp;&nbsp; 71965  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 9110853  |
|  | **Specialty Retail 0.6%**<br>|  |  |  |
|  | The Cheesecake Factory Inc., senior note, 0.375%, 6/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 179000 | &nbsp;&nbsp;&nbsp;&nbsp; 176297  |
|  | Etsy Inc., senior note, 0.125%, 9/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 201000 | &nbsp;&nbsp;&nbsp;&nbsp; 185176  |
| <sup>e</sup> | Gamestop Corp., senior note, 144A, zero cpn.,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 4/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29000 | &nbsp;&nbsp;&nbsp;&nbsp; 29696  |
|  | &nbsp;&nbsp;&nbsp; 6/15/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 362000 | &nbsp;&nbsp;&nbsp;&nbsp; 371955  |
| <sup>b</sup> | The Realreal Inc., senior note, 4.00%, 2/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 213000 | &nbsp;&nbsp;&nbsp;&nbsp; 339336  |
|  | Wayfair Inc., senior note, 3.25%, 9/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1293000 | &nbsp;&nbsp;&nbsp;&nbsp; 2354669  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 3457129  |

---

<br> franklintempleton.com Semiannual Report 17

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Country** | **Principal Amount<sup>\*</sup>** | **Principal Amount<sup>\*</sup>** | **Value** |
|  | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** |
|  | **Technology Hardware, Storage & Peripherals 0.3%**<br>|  |  |  |  |
|  | Super Micro Computer Inc., senior note,<br>|  |  |  |  |
|  | <sup>b,e</sup>144A, 2.25%, 7/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 518000 |  | &nbsp;&nbsp;&nbsp;&nbsp; $518521  |
|  | &nbsp;&nbsp;&nbsp; 3.50%, 3/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 220000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 206833  |
|  | &nbsp;&nbsp; <sup>e</sup>144A, zero cpn., 6/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 522000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 489254  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1214608  |
|  | **Telecommunications 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>e</sup> | Adtran Holdings Inc., senior note, 144A, 3.75%, 9/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 130000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 134009  |
|  | **Trading Companies & Distributors 0.2%**<br>|  |  |  |  |
|  | Xometry Inc., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp; <sup>b</sup>1.00%, 2/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 459000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 570307  |
|  | &nbsp;&nbsp; <sup>e</sup>144A, 0.75%, 6/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 322000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 479281  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1049588  |
|  | &nbsp;&nbsp;&nbsp; **Total Convertible Bonds** <br>**(Cost $88,100,783)** |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 95586075  |
|  | **Convertible Bonds in Reorganization 0.0%<sup>†</sup>**<br>|  |  |  |  |
|  | **Automobiles 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>e,i</sup> | Fisker Inc., senior note, 144A, 2.50%, 9/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 943587 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4090  |
|  | **Basic Materials 0.0%<sup>†</sup>** <br>|  |  |  |  |
| <sup>i</sup>  | Danimer Scientific Inc., senior note, 3.25%, 12/15/26  | United States  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 264000  |  | &nbsp;&nbsp;&nbsp;&nbsp; 554  |
|  | **Specialty Retail 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>e,i</sup> | Shift Technologies Inc., senior note, 144A, 4.75%, 5/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1014000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1118  |
|  | &nbsp;&nbsp;&nbsp; **Total Convertible Bonds in Reorganization** <br>**(Cost $1,968,101)** |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 5762  |
|  | **Corporate Bonds and Notes 3.5%** | **Corporate Bonds and Notes 3.5%** | **Corporate Bonds and Notes 3.5%** | **Corporate Bonds and Notes 3.5%** | **Corporate Bonds and Notes 3.5%** |
|  | **Advertising 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>e</sup> | WPP Finance 2013, E, senior bond, Reg S, 2.875%, 9/14/46 | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 100000 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 92103  |
|  | **Airlines 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>e</sup> | GOL Finance Inc., senior secured note, 144A, 14.375%, 6/06/30 | Brazil | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 131500 |  | &nbsp;&nbsp;&nbsp;&nbsp; 135281  |
|  | **Banks 0.3%**<br>|  |  |  |  |
| <sup>e,j</sup> | Akbank TAS, junior sub. bond, 144A, 9.369%, Perpetual | Turkey | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 536000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 561302  |
|  | Asian Development Bank, senior note, zero cpn., 3/03/35 | Supranational<sup>k</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 59920000 | TRY | &nbsp;&nbsp;&nbsp;&nbsp; 155012  |
|  | European Bank for Reconstruction & Development,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, zero cpn., 7/11/36 | Supranational<sup>k</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 133400000 | TRY | &nbsp;&nbsp;&nbsp;&nbsp; 231476  |
|  | &nbsp;&nbsp;&nbsp; senior note, zero cpn., 3/04/31 | Supranational<sup>k</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 57000000 | TRY | &nbsp;&nbsp;&nbsp;&nbsp; 308844  |
|  | Yapi Kredi Bankasi, senior bond, 9.25%, 1/17/34 | Turkey | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 537000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 573377  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1830011  |
|  | **Building Products 0.2%**<br>|  |  |  |  |
| <sup>d,l</sup> | Atlas Security Products, senior note, zero cpn.,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; A, 2/08/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 364401 |  | &nbsp;&nbsp;&nbsp;&nbsp; 333573  |
|  | &nbsp;&nbsp;&nbsp; B, 2/08/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 364401 |  | &nbsp;&nbsp;&nbsp;&nbsp; 315389  |
|  | &nbsp;&nbsp;&nbsp; C, 2/08/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 364401 |  | &nbsp;&nbsp;&nbsp;&nbsp; 297861  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 946823  |
|  | **Commercial Services & Supplies 0.1%**<br>|  |  |  |  |
| <sup>e,m</sup> | &nbsp;&nbsp;&nbsp; Sabre Financial Borrower LLC, senior secured note, 144A, <br>11.125%, 6/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 354000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 362475  |
|  | **Diversified Financial Services 0.1%**<br>|  |  |  |  |
|  | Goldman Sachs International, senior note, zero cpn., 4/02/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21550000 | EGP | &nbsp;&nbsp;&nbsp;&nbsp; 415606  |

---

<br> 18 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Country** | **Principal Amount<sup>\*</sup>** | **Principal Amount<sup>\*</sup>** | **Value** |
|  | **Corporate Bonds and Notes (continued)** | **Corporate Bonds and Notes (continued)** | **Corporate Bonds and Notes (continued)** | **Corporate Bonds and Notes (continued)** | **Corporate Bonds and Notes (continued)** |
|  | **Diversified Telecommunication Services 0.2%**<br>|  |  |  |  |
| <sup>e</sup> | Tele2 AB, E, senior bond, Reg S, 0.75%, 3/23/31 | Sweden | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 333000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; $348755  |
| <sup>e</sup> | &nbsp;&nbsp;&nbsp; VMED O2 UK Financing I PLC, senior secured bond, Reg S, <br>4.50%, 7/15/31 | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 550000 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 658024  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1006779  |
|  | **Electric Utilities 0.2%**<br>|  |  |  |  |
| <sup>e</sup> | Luz del Sur Saa, senior note, 144A, 6.75%, 10/09/32 | Peru | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1739000 | PEN | &nbsp;&nbsp;&nbsp;&nbsp; 520872  |
| <sup>e</sup> | &nbsp;&nbsp;&nbsp; Xplr Infrastructure Operating Partners LP, senior note, 144A, <br>7.75%, 4/15/34 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 67000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 68162  |
| <sup>b,e</sup> | XPLR Infrastructure Operating Partners LP, senior note, 144A,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 8.375%, 1/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 175000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 183503  |
|  | &nbsp;&nbsp;&nbsp; 8.625%, 3/15/33 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 339000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 354697  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1127234  |
|  | **Financial Services 0.3%**<br>|  |  |  |  |
| <sup>e</sup> | Credicorp Capital Sociedad Titulizadora SA, senior bond, 144A, Reg S, 10.10%, 12/15/43 | Peru | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 500000 | PEN | &nbsp;&nbsp;&nbsp;&nbsp; 159850  |
| <sup>b,e</sup> | Icahn Enterprises LP / Icahn Enterprises Finance Corp., senior secured note, 144A, 10.00%, 11/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 735000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 740052  |
| <sup>b,e</sup> | LBM Acquisition LLC, senior secured note, 144A, 9.50%, 6/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 882000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 910198  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1810100  |
|  | **Health Care Equipment & Supplies 0.1%**<br>|  |  |  |  |
| <sup>b</sup> | Baxter International Inc., senior bond, 3.132%, 12/01/51 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 687000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 442543  |
|  | **Health Care Providers & Services 0.1%**<br>|  |  |  |  |
| <sup>b,e</sup> | &nbsp;&nbsp;&nbsp; CHS/Community Health Systems Inc., senior secured note, 144A, <br>9.75%, 1/15/34 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 348000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 370526  |
|  | **Home Builders 0.2%**<br>|  |  |  |  |
| <sup>b,e</sup> | K Hovnanian Enterprises Inc., senior note, 144A,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 8.00%, 4/01/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 535000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 550996  |
|  | &nbsp;&nbsp;&nbsp; 8.375%, 10/01/33 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 506000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 521425  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1072421  |
|  | **Media 0.1%**<br>|  |  |  |  |
| <sup>e</sup> | CSC Holdings LLC, senior bond, 144A,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 5.75%, 1/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 561000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 207731  |
|  | &nbsp;&nbsp; <sup>b</sup>4.625%, 12/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 7521  |
|  | &nbsp;&nbsp;&nbsp; 5.00%, 11/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 8319  |
| <sup>e</sup> | VZ Secured Financing BV, senior secured note, 144A, 7.50%, 1/15/33 | Netherlands | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 230000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 234750  |
| <sup>e</sup> | Ziggo Bond Co. BV, senior bond, 144A, 5.125%, 2/28/30 | Netherlands | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 359000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 322578  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 780899  |
|  | **Metals & Mining 0.2%**<br>|  |  |  |  |
| <sup>e,h</sup> | Samarco Mineracao SA, senior note, PIK, Reg S, 9.50%, 6/30/31 | Brazil | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 851753 |  | &nbsp;&nbsp;&nbsp;&nbsp; 855237  |
|  | **Oil, Gas & Consumable Fuels 0.4%**<br>|  |  |  |  |
|  | Ecopetrol SA, senior note, 7.75%, 2/01/32 | Colombia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 717000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 736403  |
| <sup>e</sup> | Moss Creek Resources Holdings Inc., senior note, 144A, 8.25%, 9/01/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 123000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 118065  |
| <sup>e</sup> | Nabors Industries Inc., senior note, 144A, 7.625%, 11/15/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 228000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 221213  |
|  | Petroleos Mexicanos, senior bond,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 6.95%, 1/28/60 | Mexico | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 494000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 398752  |
|  | <sup>e,j</sup>Reg S, 6.625%, Perpetual | Mexico | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 230000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 170374  |
| <sup>e</sup> | &nbsp;&nbsp;&nbsp; Yinson Boronia Production BV, senior secured bond, Reg S, <br>8.947%, 7/31/42 | Brazil | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 568051 |  | &nbsp;&nbsp;&nbsp;&nbsp; 618210  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 2263017  |

---

<br> franklintempleton.com Semiannual Report 19

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Country** | **Principal Amount<sup>\*</sup>** | **Principal Amount<sup>\*</sup>** | **Value** |
|  | **Corporate Bonds and Notes (continued)** | **Corporate Bonds and Notes (continued)** | **Corporate Bonds and Notes (continued)** | **Corporate Bonds and Notes (continued)** | **Corporate Bonds and Notes (continued)** |
|  | **Packaging & Containers 0.2%**<br>|  |  |  |  |
| <sup>e</sup> | Ardagh Group SA, senior secured note, 144A, 9.50%, 12/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 300000 |  | &nbsp;&nbsp;&nbsp;&nbsp; $323643  |
| <sup>e</sup> | Ardagh Metal Packaging Finance USA LLC, senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; Reg S, 3.00%, 9/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 218481  |
|  | &nbsp;&nbsp;&nbsp; 144A, 4.00%, 9/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 180000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 167667  |
| <sup>e</sup> | LABL Inc., senior secured note, 144A, 9.50%, 11/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 320000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 223593  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 933384  |
|  | **Pharmaceuticals 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>e</sup> | Centrient Holding BV, senior secured note, Reg S, 6.75%, 5/30/30 | Netherlands | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 202609  |
|  | **Pipelines 0.1%**<br>|  |  |  |  |
| <sup>e,j</sup> | Venture Global Lng Inc., junior sub. bond, 144A, 9.00%, Perpetual | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 410000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 349310  |
|  | **Real Estate Management & Development 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>e,h</sup> | Kaisa Group Holdings Ltd., senior secured note, 144A, PIK,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 7.721%, 12/28/27 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 45451 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1307  |
|  | &nbsp;&nbsp;&nbsp; 6.25%, 12/28/28 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68176 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1638  |
|  | &nbsp;&nbsp;&nbsp; 6.50%, 12/28/29 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 113628 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2698  |
|  | &nbsp;&nbsp;&nbsp; 6.75%, 12/28/30 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 136354 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3028  |
|  | &nbsp;&nbsp;&nbsp; 7.00%, 12/28/31 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 204531 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4403  |
|  | &nbsp;&nbsp;&nbsp; 7.25%, 12/28/32 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 191641 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4686  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 17760  |
|  | **Software 0.2%**<br>|  |  |  |  |
| <sup>b</sup> | X.AI LLC / X.AI Co. Issuer Corp., senior secured note, 12.50%, 6/30/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 500000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 527343  |
|  | **Specialty Retail 0.2%**<br>|  |  |  |  |
| <sup>b,e,h</sup> | Guitar Center Inc., senior secured note, 144A, PIK, 8.50%, 1/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 627900 |  | &nbsp;&nbsp;&nbsp;&nbsp; 507029  |
| <sup>b,e</sup> | S&S Holdings LLC, senior secured note, 144A, 8.375%, 10/01/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 832000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 783988  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1291017  |
|  | **Telecommunications 0.3%**<br>|  |  |  |  |
|  | America Movil SAB de CV, senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 10.125%, 1/22/29 | Mexico | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3790000<sup>n</sup> | MXN | &nbsp;&nbsp;&nbsp;&nbsp; 216268  |
|  | &nbsp;&nbsp;&nbsp; 10.30%, 1/30/34 | Mexico | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7540000<sup>n</sup> | MXN | &nbsp;&nbsp;&nbsp;&nbsp; 440288  |
| <sup>e</sup> | Apld Computeco LLC, senior secured note, 144A, 9.25%, 12/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 92000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 88895  |
| <sup>e</sup> | &nbsp;&nbsp;&nbsp; Vmed O2 UK Financing I PLC, senior secured note, 144A, <br>6.75%, 1/15/33 | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 289000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 288166  |
| <sup>b,e</sup> | Windstream Services LLC, senior secured note, 144A, 7.50%, 10/15/33 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 734000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 747675  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1781292  |
|  | &nbsp;&nbsp;&nbsp; **Total Corporate Bonds and Notes** <br>**(Cost $18,699,487)** |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 18613770  |
|  | **Corporate Bonds and Notes in Reorganization 0.1%**<br>|  |  |  |  |
|  | **Airlines 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>i</sup> | Azul Secured Finance LLP, senior secured note, 11.93%, 8/28/28 | Brazil | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 239000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 106355  |
|  | **Diversified Telecommunication Services 0.1%**<br>|  |  |  |  |
| <sup>e,i</sup> | Ligado Networks LLC, senior secured note, 144A, 15.50%, 7/07/24 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1762066 |  | &nbsp;&nbsp;&nbsp;&nbsp; 475758  |
|  | **Real Estate Management & Development 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>i</sup> | Zhenro Properties Group Ltd., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 8.00%, 3/06/23 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 981000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4758  |
|  | &nbsp;&nbsp; <sup>e</sup>Reg S, 6.63%, 1/07/26 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 203000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 950  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 5708  |
|  | &nbsp;&nbsp;&nbsp; **Total Corporate Bonds and Notes in Reorganization** <br>**(Cost $792,143)** |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 587821  |

---

<br> 20 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Country** | **Principal Amount<sup>\*</sup>** | **Principal Amount<sup>\*</sup>** | **Value** |
| <sup>o,p</sup> | **Senior Floating Rate Interests 1.7%** | **Senior Floating Rate Interests 1.7%** | **Senior Floating Rate Interests 1.7%** | **Senior Floating Rate Interests 1.7%** | **Senior Floating Rate Interests 1.7%** |
|  | **Automobile Components 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>d,q</sup> | First Brands Group LLC, First Lien Term Loan, 10.59%, (3-Month SOFR + 5.00%), 3/30/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 75643 |  | &nbsp;&nbsp;&nbsp;&nbsp; $26097  |
|  | **Communications Equipment 0.1%**<br>|  |  |  |  |
| <sup>q</sup> | Ligado Networks LLC, DIP Roll-Up, 17.50%, (fixed), 2/10/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 192405 |  | &nbsp;&nbsp;&nbsp;&nbsp; 157131  |
| <sup>d,q</sup> | Ligado Networks LLC, DIP New Money Loan, 17.50%, (fixed), 2/10/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 99477 |  | &nbsp;&nbsp;&nbsp;&nbsp; 81571  |
| <sup>h</sup> | Riverbed Technology Inc., Exit Term Loan, PIK, 8.502%, (1-Month SOFR + 4.50%), 7/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 58394 |  | &nbsp;&nbsp;&nbsp;&nbsp; 27911  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 266613  |
|  | **Diversified Telecommunication Services 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>q</sup> | DTI Holdings Inc., 2025 Refinancing Term Loan, 7.916%, (SOFR + 4.00%), 4/26/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 55378 |  | &nbsp;&nbsp;&nbsp;&nbsp; 51949  |
| <sup>q</sup> | Liberty Communications of Puerto Rico LLC, Term Loan B, 8.219%, (SOFR + 3.75%), 10/16/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 118167 |  | &nbsp;&nbsp;&nbsp;&nbsp; 77145  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 129094  |
|  | **Financial Services 0.4%**<br>|  |  |  |  |
| <sup>d</sup> | Midcap Financial Issuer Trust, Initial Term Loan, 10.00%, (fixed), 1/07/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2020000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2023017  |
|  | **Food & Staples Retailing 0.4%**<br>|  |  |  |  |
| <sup>d</sup> | H-Food Holdings LLC,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; Initial Term Loan, 12.188%, (3-Month SOFR + 3.95%), 12/31/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1000742 |  | &nbsp;&nbsp;&nbsp;&nbsp; 500371  |
|  | &nbsp;&nbsp;&nbsp; Initial Term Loan, 12.50%, (3-Month SOFR + 4.26%), 12/31/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 339377 |  | &nbsp;&nbsp;&nbsp;&nbsp; 169689  |
|  | &nbsp;&nbsp;&nbsp; Incremental Term Loan B-3, 13.75%, (3-Month SOFR + 5.26%), 12/31/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49841 |  | &nbsp;&nbsp;&nbsp;&nbsp; 24920  |
|  | Market Bidco Ltd., Facility B4, 9.328%, (1-Day SONIA + 5.36%), 11/04/30 | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1240000 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 1617491  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 2312471  |
|  | **Health Care Providers & Services 0.2%**<br>|  |  |  |  |
|  | Gainwell Acquisition Corp, Term Loan B, 8.102%, (1-Month SOFR + 4.10%), 10/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 699373 |  | &nbsp;&nbsp;&nbsp;&nbsp; 693617  |
|  | Petco Health & Wellness Co. Inc., First Lien Term Loan, 7.513%, (3-Month SOFR + 3.51%), 3/03/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19500 |  | &nbsp;&nbsp;&nbsp;&nbsp; 19234  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 712851  |
|  | **IT Services 0.1%**<br>|  |  |  |  |
| <sup>d</sup> | Databricks, Inc., Initial Closing Date Term Loan,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 8.472%, (1-Month SOFR + 4.50%), 12/20/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 413483 |  | &nbsp;&nbsp;&nbsp;&nbsp; 417617  |
|  | &nbsp;&nbsp;&nbsp; 8.809%, (1-Month SOFR + 4.50%), 1/03/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 91517 |  | &nbsp;&nbsp;&nbsp;&nbsp; 92433  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 510050  |
|  | **Leisure Products 0.1%**<br>|  |  |  |  |
|  | Peloton Interactive Inc., Initial Term Loan, 9.416%, (1-Month SOFR + 6.00%), 5/30/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 548666 |  | &nbsp;&nbsp;&nbsp;&nbsp; 555412  |
|  | **Media 0.2%**<br>|  |  |  |  |
|  | Altice USA Inc., Term Loan B-5, 8.50%, (1-Month SOFR + 2.50%), 4/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 282424 |  | &nbsp;&nbsp;&nbsp;&nbsp; 252153  |
| <sup>q</sup> | MH Sub I LLC, Bank Debt Term Loan, 8.166%, (1- Month SOFR + 4.25%), 12/31/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 310427 |  | &nbsp;&nbsp;&nbsp;&nbsp; 253774  |
|  | X Corp., Term Loan B-3, 9.50%, (fixed), 10/26/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 711956 |  | &nbsp;&nbsp;&nbsp;&nbsp; 706691  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1212618  |
|  | **Packaging & Containers 0.1%**<br>|  |  |  |  |
|  | LABL Inc., Initial Euro Term Loan, 7.066%, (EURIBOR + 5.00%), 10/30/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18155 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 14591  |
| <sup>q</sup> | Multi-Color, Initial Term Loan, 8.94%, (1-Month SOFR + 5.10%), 10/30/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 934178 |  | &nbsp;&nbsp;&nbsp;&nbsp; 647937  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 662528  |

---

<br> franklintempleton.com Semiannual Report 21

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Country** | **Principal Amount<sup>\*</sup>** | **Principal Amount<sup>\*</sup>** | **Value** |
| <sup>o,p</sup> | **Senior Floating Rate Interests (continued)** | **Senior Floating Rate Interests (continued)** | **Senior Floating Rate Interests (continued)** | **Senior Floating Rate Interests (continued)** | **Senior Floating Rate Interests (continued)** |
|  | **Professional Services 0.0%<sup>†</sup>**<br>|  |  |  |  |
|  | Pre Paid Legal Services Inc., First Lien Initial Term Loan, 7.166%, (SOFR + 3.25%), 12/15/28 | United States | &nbsp;&nbsp; 19805 |  | &nbsp;&nbsp;&nbsp;&nbsp; $19241  |
|  | **Software 0.1%**<br>|  |  |  |  |
| <sup>q</sup> | Skopima Consilio Parent LLC, Amendment No. 5 Term Loan, 7.666%, (SOFR + 3.75%), 5/12/28 | United States | &nbsp;&nbsp; 166977 |  | &nbsp;&nbsp;&nbsp;&nbsp; 153014  |
| <sup>q</sup> | XAI Holdings, Initial Fixed Rate Term Loan, 12.50%, (fixed), 6/28/30 | United States | &nbsp;&nbsp; 498750 |  | &nbsp;&nbsp;&nbsp;&nbsp; 514710  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 667724  |
|  | **Specialty Retail 0.0%<sup>†</sup>**<br>|  |  |  |  |
|  | Harbor Freight Tools, Term Loan B, 6.166%, (SOFR + 2.50%), 6/11/31 | United States | &nbsp;&nbsp; 21540 |  | &nbsp;&nbsp;&nbsp;&nbsp; 21241  |
|  | &nbsp;&nbsp;&nbsp; **Total Senior Floating Rate Interests** <br>**(Cost $9,985,735)** |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 9118957  |
|  | **Foreign Government and Agency Securities 6.0%** | **Foreign Government and Agency Securities 6.0%** | **Foreign Government and Agency Securities 6.0%** | **Foreign Government and Agency Securities 6.0%** | **Foreign Government and Agency Securities 6.0%** |
| <sup>e</sup> | &nbsp;&nbsp;&nbsp; Bogota Distrito Capital, senior bond, 144A, <br>13.14%, 11/05/35 | Colombia | &nbsp;&nbsp; 5133000000 | COP | &nbsp;&nbsp;&nbsp;&nbsp; 1373534  |
| <sup>e</sup> | &nbsp;&nbsp;&nbsp; Development Bank of Kazakhstan JSC, senior note, 144A, <br>13.489%, 5/23/28 | Kazakhstan | &nbsp;&nbsp; 100000000 | KZT | &nbsp;&nbsp;&nbsp;&nbsp; 181218  |
| <sup>e</sup> | Eagle Funding LuxCo Sarl, senior note, Reg S, 5.50%, 8/17/30 | Mexico | &nbsp;&nbsp; 870000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 884303  |
| <sup>e</sup> | Government of Angola, 144A,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 9.875%, 10/15/35 | Angola | &nbsp;&nbsp; 450000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 441681  |
|  | &nbsp;&nbsp;&nbsp; senior note, 9.244%, 1/15/31 | Angola | &nbsp;&nbsp; 510000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 504921  |
|  | Government of Argentina, senior bond,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 4.125%, 7/09/46 | Argentina | &nbsp;&nbsp; 2289955 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1581901  |
|  | &nbsp;&nbsp;&nbsp; zero cpn., 12/15/35 | Argentina | &nbsp;&nbsp; 8190000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 244471  |
|  | &nbsp;&nbsp;&nbsp; zero cpn., 12/15/35 | Argentina | &nbsp;&nbsp; 2842000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 277475  |
|  | Government of Colombia, senior bond,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 7.75%, 11/07/36 | Colombia | &nbsp;&nbsp; 1711000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1795694  |
|  | &nbsp;&nbsp;&nbsp; B, 13.25%, 2/09/33 | Colombia | &nbsp;&nbsp; 5616600000 | COP | &nbsp;&nbsp;&nbsp;&nbsp; 1545115  |
|  | &nbsp;&nbsp;&nbsp; B, 7.25%, 10/26/50 | Colombia | &nbsp;&nbsp; 1573700000 | COP | &nbsp;&nbsp;&nbsp;&nbsp; 250436  |
|  | &nbsp;&nbsp;&nbsp; 5.625%, 2/19/36 | Colombia | &nbsp;&nbsp; 301000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 333053  |
| <sup>e</sup> | Government of Dominican Republic, senior bond,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 144A, 10.75%, 6/01/36 | Dominican Republic | &nbsp;&nbsp; 42750000 | DOP | &nbsp;&nbsp;&nbsp;&nbsp; 734409  |
|  | &nbsp;&nbsp;&nbsp; 144A, 11.25%, 9/15/35 | Dominican Republic | &nbsp;&nbsp; 11150000 | DOP | &nbsp;&nbsp;&nbsp;&nbsp; 195274  |
|  | &nbsp;&nbsp;&nbsp; Reg S, 10.75%, 6/01/36 | Dominican Republic | &nbsp;&nbsp; 8100000 | DOP | &nbsp;&nbsp;&nbsp;&nbsp; 139275  |
|  | Government of Ecuador,<br>|  |  |  |  |
|  | &nbsp;&nbsp; <sup>e</sup>senior bond, Reg S, 6.90%, 7/31/35 | Ecuador | &nbsp;&nbsp; 1754048 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1492256  |
|  | &nbsp;&nbsp;&nbsp; senior note, 7/31/30 | Ecuador | &nbsp;&nbsp; 846000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 718043  |
| <sup>e</sup> | Government of Egypt, Reg S,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 7.903%, 2/21/48 | Egypt | &nbsp;&nbsp; 775000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 681843  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 8.15%, 11/20/59 | Egypt | &nbsp;&nbsp; 348000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 307969  |
|  | &nbsp;&nbsp;&nbsp; senior note, 9.45%, 2/04/33 | Egypt | &nbsp;&nbsp; 256000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 283258  |
|  | Government of El Salvador, senior bond,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 9.50%, 7/15/52 | El Salvador | &nbsp;&nbsp; 345000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 383802  |
|  | &nbsp;&nbsp; <sup>e</sup>Reg S, 9.65%, 11/21/54 | El Salvador | &nbsp;&nbsp; 650000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 738855  |
|  | Government of Indonesia, senior bond, 7.125%, 6/15/38 | Indonesia | &nbsp;&nbsp; 18021000000 | IDR | &nbsp;&nbsp;&nbsp;&nbsp; 1148020  |
|  | Government of Italy, senior note, 1.25%, 2/17/26 | Italy | &nbsp;&nbsp; 350000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 348067  |
| <sup>e</sup> | Government of Kenya, 144A,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 8.80%, 10/09/38 | Kenya | &nbsp;&nbsp; 570000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 553057  |
|  | &nbsp;&nbsp;&nbsp; senior note, 7.875%, 10/09/33 | Kenya | &nbsp;&nbsp; 565000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 544711  |
| <sup>e</sup> | Government of Nigeria, senior bond, 144A,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 8.631%, 1/13/36 | Nigeria | &nbsp;&nbsp; 369000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 390053  |
|  | &nbsp;&nbsp;&nbsp; 9.13%, 1/13/46 | Nigeria | &nbsp;&nbsp; 360000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 382758  |

---

<br> 22 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Country** | **Principal Amount<sup>\*</sup>** | **Principal Amount<sup>\*</sup>** | **Value** |
|  | **Foreign Government and Agency Securities (continued)** | **Foreign Government and Agency Securities (continued)** | **Foreign Government and Agency Securities (continued)** | **Foreign Government and Agency Securities (continued)** | **Foreign Government and Agency Securities (continued)** |
| <sup>e</sup> | Government of Paraguay, senior bond, 144A, 8.50%, 3/04/35 | Paraguay | &nbsp;&nbsp;&nbsp;&nbsp; 4945000000 | PYG | &nbsp;&nbsp;&nbsp;&nbsp; $667965  |
|  | Government of Peru,<br>|  |  |  |  |
|  | &nbsp;&nbsp; <sup>e</sup>senior bond, 144A, 7.60%, 8/12/39 | Peru | &nbsp;&nbsp;&nbsp;&nbsp; 1338000 | PEN | &nbsp;&nbsp;&nbsp;&nbsp; 439524  |
|  | &nbsp;&nbsp;&nbsp; senior note, 6.85%, 8/12/35 | Peru | &nbsp;&nbsp;&nbsp;&nbsp; 2300000 | PEN | &nbsp;&nbsp;&nbsp;&nbsp; 730910  |
|  | Government of South Africa, senior bond,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 8.75%, 2/28/48 | South Africa | &nbsp;&nbsp;&nbsp;&nbsp; 5725000 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 313469  |
|  | &nbsp;&nbsp; <sup>e</sup>Reg S, 7.95%, 11/19/54 | South Africa | &nbsp;&nbsp;&nbsp;&nbsp; 515000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 553031  |
|  | Government of Sri Lanka,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 3.60%, 6/15/35 | Sri Lanka | &nbsp;&nbsp;&nbsp;&nbsp; 265000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 230378  |
|  | &nbsp;&nbsp; <sup>e</sup>senior note, Reg S, 3.10%, 1/15/30 | Sri Lanka | &nbsp;&nbsp;&nbsp;&nbsp; 165000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 147870  |
|  | &nbsp;&nbsp; <sup>e</sup>senior note, Reg S, 4.00%, 4/15/28 | Sri Lanka | &nbsp;&nbsp;&nbsp;&nbsp; 69350 |  | &nbsp;&nbsp;&nbsp;&nbsp; 66524  |
| <sup>e</sup> | Government of Suriname, 144A,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 8.50%, 11/06/35 | Suriname | &nbsp;&nbsp;&nbsp;&nbsp; 474000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 512745  |
|  | &nbsp;&nbsp;&nbsp; senior note, 7.70%, 11/06/30 | Suriname | &nbsp;&nbsp;&nbsp;&nbsp; 387000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 392824  |
| <sup>e</sup> | Government of Tunisia, senior note, Reg S, 6.375%, 7/15/26 | Tunisia | &nbsp;&nbsp;&nbsp;&nbsp; 820000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 949398  |
|  | Government of Turkey,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 6.95%, 9/16/35 | Turkey | &nbsp;&nbsp;&nbsp;&nbsp; 795000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 815477  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 6.80%, 11/04/36 | Turkey | &nbsp;&nbsp;&nbsp;&nbsp; 1349000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1357768  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 10.117%, 7/24/74 | Turkey | &nbsp;&nbsp;&nbsp;&nbsp; 680000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 726298  |
|  | &nbsp;&nbsp;&nbsp; senior note, 26.20%, 10/05/33 | Turkey | &nbsp;&nbsp;&nbsp;&nbsp; 10324000 | TRY | &nbsp;&nbsp;&nbsp;&nbsp; 220023  |
|  | &nbsp;&nbsp;&nbsp; senior note, 27.70%, 9/27/34 | Turkey | &nbsp;&nbsp;&nbsp;&nbsp; 34568000 | TRY | &nbsp;&nbsp;&nbsp;&nbsp; 763743  |
|  | &nbsp;&nbsp;&nbsp; senior note, 31.08%, 11/08/28 | Turkey | &nbsp;&nbsp;&nbsp;&nbsp; 6051000 | TRY | &nbsp;&nbsp;&nbsp;&nbsp; 137200  |
| <sup>e</sup> | Government of Ukraine, Reg S,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 7.75%, 5/31/41 | Ukraine | &nbsp;&nbsp;&nbsp;&nbsp; 225000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 210516  |
|  | &nbsp;&nbsp;&nbsp; senior note, 4.50%, 2/01/34 | Ukraine | &nbsp;&nbsp;&nbsp;&nbsp; 1013530 |  | &nbsp;&nbsp;&nbsp;&nbsp; 596488  |
|  | Government of Zambia, senior bond, 5.75%, 6/30/33 | Zambia | &nbsp;&nbsp;&nbsp;&nbsp; 1109939 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1069310  |
|  | Istanbul Metropolitan Municipality, senior note, 10.50%, 12/06/28 | Turkey | &nbsp;&nbsp;&nbsp;&nbsp; 260000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 286121  |
| <sup>e</sup> | Provincia de Buenos Aires, senior bond, Reg S, 6.625%, 9/01/37 | Argentina | &nbsp;&nbsp;&nbsp;&nbsp; 2427125 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1759228  |
| <sup>e</sup> | Provincia de Cordoba, senior note, 144A, 9.75%, 7/02/32 | Argentina | &nbsp;&nbsp;&nbsp;&nbsp; 437000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 457430  |
|  | &nbsp;&nbsp;&nbsp; **Total Foreign Government and Agency Securities** <br>**(Cost $29,166,196)** |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 31859692  |
|  | **Foreign Government and Agency Securities in Reorganization 0.2%**<br>|  |  |  |  |
| <sup>e,i</sup> | Government of Lebanon, Reg S,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 6.00%, 1/27/23 | Lebanon | &nbsp;&nbsp;&nbsp;&nbsp; 212000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 46925  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 6.75%, 11/29/27 | Lebanon | &nbsp;&nbsp;&nbsp;&nbsp; 163000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 36471  |
|  | &nbsp;&nbsp;&nbsp; senior bond, E, 6.10%, 10/04/22 | Lebanon | &nbsp;&nbsp;&nbsp;&nbsp; 200000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 44155  |
|  | &nbsp;&nbsp;&nbsp; senior bond, E, 6.85%, 5/25/29 | Lebanon | &nbsp;&nbsp;&nbsp;&nbsp; 212000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 47085  |
|  | &nbsp;&nbsp;&nbsp; senior note, G, 6.15%, 6/19/20 | Lebanon | &nbsp;&nbsp;&nbsp;&nbsp; 212000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 46788  |
|  | &nbsp;&nbsp;&nbsp; senior note, G, 6.25%, 11/04/24 | Lebanon | &nbsp;&nbsp;&nbsp;&nbsp; 212000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 46818  |
| <sup>e,i</sup> | Government of Venezuela, senior bond, Reg S,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 9.00%, 5/07/23 | Venezuela | &nbsp;&nbsp;&nbsp;&nbsp; 1381000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 384954  |
|  | &nbsp;&nbsp;&nbsp; 7.65%, 4/21/25 | Venezuela | &nbsp;&nbsp;&nbsp;&nbsp; 463000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 128020  |
|  | &nbsp;&nbsp;&nbsp; 11.75%, 10/21/26 | Venezuela | &nbsp;&nbsp;&nbsp;&nbsp; 389000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 122146  |
|  | &nbsp;&nbsp;&nbsp; **Total Foreign Government and Agency Securities in Reorganization** <br>**(Cost $728,987)** |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 903362  |
|  | **U.S. Government and Agency Securities 2.8%** | **U.S. Government and Agency Securities 2.8%** | **U.S. Government and Agency Securities 2.8%** | **U.S. Government and Agency Securities 2.8%** | **U.S. Government and Agency Securities 2.8%** |
|  | U.S. Treasury Bond,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 4.875%, 8/15/45 | United States | &nbsp;&nbsp;&nbsp;&nbsp; 359000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 370331  |
|  | &nbsp;&nbsp;&nbsp; 4.75%, 5/15/55 | United States | &nbsp;&nbsp;&nbsp;&nbsp; 3101000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3139036  |
|  | &nbsp;&nbsp;&nbsp; 4.75%, 8/15/55 | United States | &nbsp;&nbsp;&nbsp;&nbsp; 377000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 381830  |

---

<br> franklintempleton.com Semiannual Report 23

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Country** | **Principal Amount<sup>\*</sup>** | **Value** |
| **U.S. Government and Agency Securities (continued)** | **U.S. Government and Agency Securities (continued)** | **U.S. Government and Agency Securities (continued)** | **U.S. Government and Agency Securities (continued)** |
| U.S. Treasury Note, <br>|  |  |  |
| &nbsp;&nbsp;&nbsp; 3.875%, 7/31/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 194000 | &nbsp;&nbsp;&nbsp;&nbsp; $195061  |
| &nbsp;&nbsp;&nbsp; 3.375%, 9/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 146000 | &nbsp;&nbsp;&nbsp;&nbsp; 145561  |
| &nbsp;&nbsp;&nbsp; 3.50%, 10/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17000 | &nbsp;&nbsp;&nbsp;&nbsp; 17002  |
| &nbsp;&nbsp;&nbsp; 3.50%, 11/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 65000 | &nbsp;&nbsp;&nbsp;&nbsp; 65018  |
| &nbsp;&nbsp;&nbsp; 4.00%, 3/31/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4627000 | &nbsp;&nbsp;&nbsp;&nbsp; 4705532  |
| &nbsp;&nbsp;&nbsp; 3.625%, 8/31/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1372000 | &nbsp;&nbsp;&nbsp;&nbsp; 1373608  |
| &nbsp;&nbsp;&nbsp; 3.625%, 9/30/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 422700 | &nbsp;&nbsp;&nbsp;&nbsp; 423162  |
| &nbsp;&nbsp;&nbsp; 3.625%, 10/31/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 234000 | &nbsp;&nbsp;&nbsp;&nbsp; 234238  |
| &nbsp;&nbsp;&nbsp; 4.00%, 7/31/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3000 | &nbsp;&nbsp;&nbsp;&nbsp; 3041  |
| &nbsp;&nbsp;&nbsp; 4.25%, 8/15/35 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3511000 | &nbsp;&nbsp;&nbsp;&nbsp; 3579849  |
| &nbsp;&nbsp;&nbsp; 4.00%, 11/15/35 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 105000 | &nbsp;&nbsp;&nbsp;&nbsp; 104844  |
| &nbsp;&nbsp;&nbsp; **Total U.S. Government and Agency Securities** <br>**(Cost $14,629,654)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 14738113 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of Contracts** | **Notional Amount<sup>#</sup>** |  |
| **Options Purchased 0.0%<sup>†</sup>**<br>|  |  |  |
| **Calls - Exchange-Traded 0.0%<sup>†</sup>**<br>|  |  |  |
| Affirm Holdings Inc., December Strike Price $75.00, Expires 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48083 | &nbsp;&nbsp;&nbsp;&nbsp; 1841  |
| Applied Digital Corp., March Strike Price $30.00, Expires 3/20/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21798 | &nbsp;&nbsp;&nbsp;&nbsp; 3745  |
| AST SpaceMobile Inc., December Strike Price $60.00, Expires 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29060 | &nbsp;&nbsp;&nbsp;&nbsp; 1500  |
| B2Gold Corp., December Strike Price $4.50, Expires 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13335 | &nbsp;&nbsp;&nbsp;&nbsp; 714  |
| B2Gold Corp., April Strike Price $5.00, Expires 4/17/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22860 | &nbsp;&nbsp;&nbsp;&nbsp; 2340  |
| Bridgebio Pharma Inc., April Strike Price $85.00, Expires 4/17/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29904 | &nbsp;&nbsp;&nbsp;&nbsp; 2300  |
| Cloudflare Inc., December Strike Price $210.00, Expires 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 81660 | &nbsp;&nbsp;&nbsp;&nbsp; 2092  |
| Coinbase Global Inc., December Strike Price $290.00, Expires 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27405 | &nbsp;&nbsp;&nbsp;&nbsp; 925  |
| Core Scientific Inc., December Strike Price $18.00, Expires 12/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11956 | &nbsp;&nbsp;&nbsp;&nbsp; 511  |
| Core Scientific Inc., March Strike Price $20.00, Expires 3/20/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11956 | &nbsp;&nbsp;&nbsp;&nbsp; 1680  |
| DigitalOcean Holdings Inc., February Strike Price $50.00, Expires 2/20/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18500 | &nbsp;&nbsp;&nbsp;&nbsp; 1360  |
| Dynavax Technologies Corp., April Strike Price $13.00, Expires 4/17/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15344 | &nbsp;&nbsp;&nbsp;&nbsp; 595  |
| Galaxy Digital Inc., December Strike Price $30.00, Expires 12/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19299 | &nbsp;&nbsp;&nbsp;&nbsp; 630  |
| Galaxy Digital Inc., March Strike Price $30.00, Expires 3/20/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19299 | &nbsp;&nbsp;&nbsp;&nbsp; 3010  |
| Galaxy Digital Inc., April Strike Price $35.00, Expires 4/17/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19299 | &nbsp;&nbsp;&nbsp;&nbsp; 2940  |
| Guardant Health Inc., April Strike Price $135.00, Expires 4/17/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 65112 | &nbsp;&nbsp;&nbsp;&nbsp; 4590  |
| indie Semiconductor Inc., May Strike Price $4.00, Expires 5/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13369 | &nbsp;&nbsp;&nbsp;&nbsp; 2393  |
| indie Semiconductor Inc., May Strike Price $5.50, Expires 5/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6454 | &nbsp;&nbsp;&nbsp;&nbsp; 560  |
| Iren Ltd., December Strike Price $60.00, Expires 12/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32515 | &nbsp;&nbsp;&nbsp;&nbsp; 581  |
| Iren Ltd., January Strike Price $70.00, Expires 1/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32515 | &nbsp;&nbsp;&nbsp;&nbsp; 1659  |
| Match Group Inc., December Strike Price $35.00, Expires 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23716 | &nbsp;&nbsp;&nbsp;&nbsp; 308  |
| Nebius Group NV, December Strike Price $99.00, Expires 12/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 41120 | &nbsp;&nbsp;&nbsp;&nbsp; 1840  |
| Nutanix Inc., December Strike Price $62.50, Expires 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23555 | &nbsp;&nbsp;&nbsp;&nbsp; 45  |
| ON Semiconductor Corp., March Strike Price $60.00, Expires 3/20/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38353 | &nbsp;&nbsp;&nbsp;&nbsp; 1820  |
| Pagaya Technologies Ltd., February Strike Price $30.00, Expires 2/20/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17416 | &nbsp;&nbsp;&nbsp;&nbsp; 1967  |
| Porch Group, Inc., December Strike Price $12.50, Expires 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 964 | &nbsp;&nbsp;&nbsp;&nbsp; 10  |
| Porch Group, Inc., January Strike Price $15.00, Expires 1/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2892 | &nbsp;&nbsp;&nbsp;&nbsp; 36  |
| Sarepta Therapeutics, Inc., January Strike Price $30.00, Expires 1/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6846 | &nbsp;&nbsp;&nbsp;&nbsp; 165  |
| Shift4 Payments Inc., April Strike Price $85.00, Expires 4/17/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6936 | &nbsp;&nbsp;&nbsp;&nbsp; 580  |
| Sirius XM Holdings Inc., December Strike Price $22.00, Expires 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 30226 | &nbsp;&nbsp;&nbsp;&nbsp; 462  |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 43199  |
| **Puts - Exchange-Traded 0.0%<sup>†</sup>**<br>|  |  |  |
| Amcor PLC, December Strike Price $7.00, Expires 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 536 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 445952 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
|  Aston Martin Lagonda Global Holdings PLC, December Strike Price 68.00 GBP, Expires 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 960 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 82646 | &nbsp;&nbsp;&nbsp;&nbsp; 7629  |
| Bloom Energy Corp., January Strike Price $19.00, Expires 1/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35427 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
|  Booz Allen Hamilton Holding Corp., December Strike Price $65.00, Expires 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 429485 | &nbsp;&nbsp;&nbsp;&nbsp; 980 |

---

<br> 24 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Number of Contracts**  | **Notional Amount<sup>#</sup>**  | **Value**  |
|  | **Options Purchased (continued)** <br>| | |  |
|  | **Puts - Exchange-Traded (continued)**<br>| | |  |
|  | Booz Allen Hamilton Holding Corp., December Strike Price $70.00, Expires 12/19/25 | | | &nbsp;&nbsp;&nbsp;&nbsp; $3080  |
|  | Concentrix Corp., April Strike Price $30.00, Expires 4/17/26 | | | &nbsp;&nbsp;&nbsp;&nbsp; 21800  |
|  | iShares Russell 2000 ETF, December Strike Price $215.00, Expires 12/19/25 | | | &nbsp;&nbsp;&nbsp;&nbsp; 6384  |
|  | iShares Russell 2000 ETF, December Strike Price $235.00, Expires 12/19/25 | | | &nbsp;&nbsp;&nbsp;&nbsp; 46704  |
|  | Opendoor Technologies Inc., January Strike Price $1.50, Expires 1/16/26 | | | &nbsp;&nbsp;&nbsp;&nbsp; 27  |
|  | Oracle Corp., January Strike Price $150.00, Expires 1/02/26 | | | &nbsp;&nbsp;&nbsp;&nbsp; 19170  |
|  | Pagaya Technologies Ltd., January Strike Price $20.00, Expires 1/16/26 | | | &nbsp;&nbsp;&nbsp;&nbsp; 9964  |
|  | SPDR S&P 500 ETF Trust, December Strike Price $652.00, Expires 12/19/25 | | | &nbsp;&nbsp;&nbsp;&nbsp; 22705  |
|  | Stubhub Holdings Inc., February Strike Price $10.00, Expires 2/20/26 | | | &nbsp;&nbsp;&nbsp;&nbsp; 9000  |
|  |  | | | &nbsp;&nbsp;&nbsp;&nbsp; 147443  |
|  | &nbsp;&nbsp;&nbsp; **Total Options Purchased** <br>**(Cost $356,341)** | | | &nbsp;&nbsp;&nbsp;&nbsp; 190642  |
|  | &nbsp;&nbsp;&nbsp; **Total Investments before Short Term Investments** <br>**(Cost $240,802,482)** | | | &nbsp;&nbsp;&nbsp;&nbsp; 271972636  |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 112<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 80<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 336<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 336<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 135<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 94<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 95<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 72<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>**Country** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 981680<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 295680<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8461152<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8461152<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20466<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2893455<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 233872<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6501705<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 85896<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>**Shares** |  |
|  | **Short Term Investments 42.3%**<br>|  |  |  |
|  | **Money Market Funds 32.7%**<br>|  |  |  |
| <sup>r,s</sup> | Dreyfus Government Cash Management, Institutional, 3.86% | United States | 126115379 | 126115379  |
| <sup>r</sup> | Fidelity Investments Money Market Government Portfolio, Institutional, 3.88% | United States | 48872786 | 48872786  |
|  | &nbsp;&nbsp;&nbsp; **Total Money Market Funds** <br>**(Cost $174,988,165)** |  |  | 174988165  |
| <sup>t</sup> | &nbsp;&nbsp;&nbsp; **Investments from Cash Collateral Received for Loaned Securities** <br>**(Cost $1,805,000) 0.3%**<br>|  |  |  |
|  | **Money Market Fund 0.3%**<br>|  |  |  |
| <sup>r,u</sup> | Franklin Institutional U.S. Government Money Market Fund, 3.92% | United States | 1805000 | 1805000  |
|  |  |  | **Principal Amount<sup>\*</sup>** |  |
|  | **U.S. Government and Agency Securities 9.3%**<br>|  |  |  |
|  | U.S. Treasury Bill,<br>|  |  |  |
|  | &nbsp;&nbsp; <sup>v</sup>3.868%, 12/26/25 | United States | 15000000 | 14959506  |
|  | &nbsp;&nbsp; <sup>v</sup>3.829%. 1/08/26 | United States | 12000000 | 11951917  |
|  | &nbsp;&nbsp; <sup>v</sup>3.833%, 1/22/26 | United States | 10000000 | 9945535  |
|  | &nbsp;&nbsp; <sup>v</sup>3.878%, 1/29/26 | United States | 5000000 | 4968824  |
|  | &nbsp;&nbsp; <sup>v</sup>3.769%, 2/10/26 | United States | 5000000 | 4963644  |
|  | &nbsp;&nbsp; <sup>v</sup>3.774%, 2/12/26 | United States | 3000000 | 2977553  |
|  | &nbsp;&nbsp;&nbsp; **Total U.S. Government and Agency Securities** <br>**(Cost $49,765,169)** |  |  | 49766979  |
|  | &nbsp;&nbsp;&nbsp; **Total Short Term Investments** <br>**(Cost $226,558,334)** |  |  | 226560144  |
|  | **Total Investments (Cost $467,360,816) 93.3%** |  |  | 498532780  |
|  | **Options Written (0.0)%<sup>†</sup>** |  |  | (56819)  |
|  | **Securities Sold Short (20.7)%** |  |  | (110462488)  |
|  | **Other Assets, less Liabilities 27.4%** |  |  | 146691836  |
|  | **Net Assets 100.0%** |  |  | $534705309  |

---

<br> franklintempleton.com Semiannual Report 25

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Number of Contracts**  | **Notional Amount<sup>#</sup>**  | **Value**  |
| <sup>w</sup> | **Options Written (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | **Puts - Exchange-Traded (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Affirm Holdings Inc., December Strike Price $59.00, Expires 12/19/25 | 7 | 48083 | $(609)  |
|  | Applied Digital Corp., March Strike Price $16.00, Expires 3/20/26 | 7 | 21798 | (987)  |
|  | Aston Martin Lagonda Global Holdings PLC, December Strike Price 58.00 GBP, Expires 12/19/25 | 960 | 82646 | (1907)  |
|  | Bridgebio Pharma Inc., April Strike Price $55.00, Expires 4/17/26 | 4 | 29904 | (1230)  |
|  | Cloudflare Inc., December Strike Price $170.00, Expires 12/19/25 | 4 | 81660 | (468)  |
|  | Coinbase Global Inc., December Strike Price $220.00, Expires 12/19/25 | 1 | 27405 | (200)  |
|  | DigitalOcean Holdings Inc., February Strike Price $30.00, Expires 2/20/26 | 7 | 32375 | (892)  |
|  | Galaxy Digital Inc., December Strike Price $23.00, Expires 12/12/25 | 7 | 19299 | (350)  |
|  | Guardant Health Inc., April Strike Price $85.00, Expires 4/17/26 | 6 | 65112 | (4050)  |
|  | Iren Ltd., December Strike Price $40.00, Expires 12/12/25 | 7 | 32515 | (875)  |
|  | Iren Ltd., January Strike Price $30.00, Expires 1/16/26 | 7 | 32515 | (1001)  |
|  | iShares Russell 2000 ETF, December Strike Price $225.00, Expires 12/19/25 | 672 | 16922304 | (31584)  |
|  | Nebius Group NV, December Strike Price $75.00, Expires 12/12/25 | 4 | 41120 | (380)  |
|  | ON Semiconductor Corp., March Strike Price $37.00, Expires 3/20/26 | 7 | 38353 | (798)  |
|  | Pagaya Technologies Ltd., February Strike Price $16.00, Expires 2/20/26 | 7 | 17416 | (473)  |
|  | Porch Group, Inc., January Strike Price $10.00, Expires 1/16/26 | 25 | 24100 | (2750)  |
|  | SPDR S&P 500 ETF Trust, December Strike Price $625.00, Expires 12/19/25 | 95 | 6501705 | (8265)  |
|  | **Total Options Written (Premiums Received $150,036)** |  |  | (56819)  |
|  |  | **Country** | **Shares** |  |
| <sup>x</sup> | **Securities Sold Short (20.7)%** | **Securities Sold Short (20.7)%** | **Securities Sold Short (20.7)%** | **Securities Sold Short (20.7)%** |
|  | **Common Stocks (12.8)%**<br>|  |  |  |
|  | **Aerospace & Defense (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Astronics Corp. | United States | 2387 | (130259)  |
|  | Voyager Technologies Inc., A | United States | 1865 | (41925)  |
|  |  |  |  | (172184)  |
|  | **Automobile Components (0.1)%**<br>|  |  |  |
|  | Aptiv PLC | United States | 2163 | (167740)  |
|  | Patrick Industries Inc. | United States | 2455 | (265680)  |
|  | Quantumscape Corp., A | United States | 19795 | (241895)  |
|  | Solid Power Inc. | United States | 11414 | (59353)  |
|  |  |  |  | (734668)  |
|  | **Automobiles (0.1)%**<br>|  |  |  |
|  | Ford Motor Co. | United States | 1455 | (19322)  |
|  | Mercedes-Benz Group AG | Germany | 11048 | (745846)  |
|  |  |  |  | (765168)  |
|  | **Biotechnology (0.7)%**<br>|  |  |  |
|  | Alnylam Pharmaceuticals Inc. | United States | 10 | (4512)  |
|  | Ascendis Pharma A/S, ADR | Denmark | 552 | (117206)  |
|  | Bridgebio Pharma Inc. | United States | 11697 | (842301)  |
|  | Dynavax Technologies Corp. | United States | 17740 | (201704)  |
|  | Exact Sciences Corp. | United States | 4397 | (445372)  |
|  | Mirum Pharmaceuticals Inc. | United States | 12866 | (939861)  |
|  | Pharming Group NV | Netherlands | 60343 | (101073)  |
|  | PTC Therapeutics Inc. | United States | 11510 | (989745)  |
|  |  |  |  | (3641774)  |
|  | **Broadline Retail (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Alibaba Group Holding Ltd., ADR | China | 118 | (18561) |

---

<br> 26 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Shares**  | **Value** |
| <sup>x</sup>  | **Securities Sold Short (continued)**  | **Securities Sold Short (continued)**  | **Securities Sold Short (continued)**  | **Securities Sold Short (continued)**  |
|  | **Common Stocks (continued)** <br>|  |  |  |
|  | **Building Products (0.1)%**<br>|  |  |  |
|  | Lennox International, Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 643 | &nbsp;&nbsp;&nbsp;&nbsp; $(320773)  |
|  | **Capital Markets (0.3)%**<br>|  |  |  |
|  | Blue Owl Technology Finance Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16712 | &nbsp;&nbsp;&nbsp;&nbsp; (232297)  |
|  | Coinbase Global Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 504 | &nbsp;&nbsp;&nbsp;&nbsp; (137501)  |
|  | Galaxy Digital Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23828 | &nbsp;&nbsp;&nbsp;&nbsp; (633587)  |
|  | Wisdomtree Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36474 | &nbsp;&nbsp;&nbsp;&nbsp; (402673)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1406058)  |
|  | **Commercial Services & Supplies (0.1)%**<br>|  |  |  |
|  | Cintas Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2437 | &nbsp;&nbsp;&nbsp;&nbsp; (453331)  |
|  | Pitney Bowes Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7520 | &nbsp;&nbsp;&nbsp;&nbsp; (74147)  |
|  | TETRA Tech Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 509 | &nbsp;&nbsp;&nbsp;&nbsp; (17683)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (545161)  |
|  | **Communications Equipment (0.6)%**<br>|  |  |  |
|  | Adtran Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8164 | &nbsp;&nbsp;&nbsp;&nbsp; (64741)  |
|  | Applied Optoelectronics Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1829 | &nbsp;&nbsp;&nbsp;&nbsp; (48981)  |
|  | Lumentum Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10040 | &nbsp;&nbsp;&nbsp;&nbsp; (3264606)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (3378328)  |
|  | **Construction & Engineering (0.2)%**<br>|  |  |  |
|  | Fluor Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4807 | &nbsp;&nbsp;&nbsp;&nbsp; (206364)  |
|  | Granite Construction Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7579 | &nbsp;&nbsp;&nbsp;&nbsp; (814970)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1021334)  |
|  | **Consumer Finance (0.4)%**<br>|  |  |  |
|  | Credit Acceptance Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 394 | &nbsp;&nbsp;&nbsp;&nbsp; (182016)  |
|  | Encore Capital Group Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3636 | &nbsp;&nbsp;&nbsp;&nbsp; (188672)  |
|  | EZCORP Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5964 | &nbsp;&nbsp;&nbsp;&nbsp; (114986)  |
|  | SoFi Technologies Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 55007 | &nbsp;&nbsp;&nbsp;&nbsp; (1634808)  |
|  | Upstart Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4273 | &nbsp;&nbsp;&nbsp;&nbsp; (192114)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (2312596)  |
|  | **Diversified Consumer Services (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Stride Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2875 | &nbsp;&nbsp;&nbsp;&nbsp; (182649)  |
|  | **Diversified Telecommunication Services (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | AST Spacemobile Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4401 | &nbsp;&nbsp;&nbsp;&nbsp; (247336)  |
|  | **Electric Utilities (0.5)%**<br>|  |  |  |
|  | American Electric Power Co. Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3534 | &nbsp;&nbsp;&nbsp;&nbsp; (437403)  |
|  | Duke Energy Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9407 | &nbsp;&nbsp;&nbsp;&nbsp; (1165903)  |
|  | Evergy Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2829 | &nbsp;&nbsp;&nbsp;&nbsp; (219672)  |
|  | Oklo Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 820 | &nbsp;&nbsp;&nbsp;&nbsp; (74932)  |
|  | The Southern Co. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8540 | &nbsp;&nbsp;&nbsp;&nbsp; (778165)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (2676075)  |
|  | **Electrical Equipment (1.1)%**<br>|  |  |  |
|  | ABB Ltd. | Switzerland | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3013 | &nbsp;&nbsp;&nbsp;&nbsp; (216773)  |
|  | Bloom Energy Corp., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 44452 | &nbsp;&nbsp;&nbsp;&nbsp; (4855936)  |
|  | Enovix Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13778 | &nbsp;&nbsp;&nbsp;&nbsp; (107331)  |
|  | Eos Energy Enterprises Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 43735 | &nbsp;&nbsp;&nbsp;&nbsp; (658212)  |
|  | Nuscale Power Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2483 | &nbsp;&nbsp;&nbsp;&nbsp; (49660)  |
|  | Plug Power Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17448 | &nbsp;&nbsp;&nbsp;&nbsp; (35070)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (5922982)  |

---

<br> franklintempleton.com Semiannual Report 27

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Shares**  | **Value** |
| <sup>x</sup>  | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** |
|  | **Common Stocks (continued)**<br>|  |  |  |
|  | **Electronic Equipment, Instruments & Components (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | OSI Systems Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 467 | &nbsp;&nbsp;&nbsp;&nbsp; $(126487)  |
|  | Vishay Intertechnology Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 917 | &nbsp;&nbsp;&nbsp;&nbsp; (12535)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (139022)  |
|  | **Energy Equipment & Services (0.1)%**<br>|  |  |  |
|  | Solaris Energy Infrastructure Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10081 | &nbsp;&nbsp;&nbsp;&nbsp; (482779)  |
|  | **Entertainment (0.1)%**<br>|  |  |  |
|  | Live Nation Entertainment Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4444 | &nbsp;&nbsp;&nbsp;&nbsp; (584164)  |
|  | **Financial Services (0.1)%**<br>|  |  |  |
|  | Affirm Holdings Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2016 | &nbsp;&nbsp;&nbsp;&nbsp; (143035)  |
|  | HA Sustainable Infrastructure Capital Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4052 | &nbsp;&nbsp;&nbsp;&nbsp; (139227)  |
|  | Shift4 Payments Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1334 | &nbsp;&nbsp;&nbsp;&nbsp; (98422)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (380684)  |
|  | **Ground Transportation (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Grab Holdings Ltd. | Singapore | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13538 | &nbsp;&nbsp;&nbsp;&nbsp; (73782)  |
|  | **Health Care Equipment & Supplies (0.4)%**<br>|  |  |  |
|  | Alphatec Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31085 | &nbsp;&nbsp;&nbsp;&nbsp; (700967)  |
|  | Enovis Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 212 | &nbsp;&nbsp;&nbsp;&nbsp; (6417)  |
|  | Haemonetics Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 640 | &nbsp;&nbsp;&nbsp;&nbsp; (52064)  |
|  | iRhythm Technologies Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 625 | &nbsp;&nbsp;&nbsp;&nbsp; (117506)  |
|  | Lantheus Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1590 | &nbsp;&nbsp;&nbsp;&nbsp; (93603)  |
|  | Lemaitre Vascular Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 416 | &nbsp;&nbsp;&nbsp;&nbsp; (34507)  |
|  | LivaNova PLC | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4825 | &nbsp;&nbsp;&nbsp;&nbsp; (307883)  |
|  | Omnicell Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 736 | &nbsp;&nbsp;&nbsp;&nbsp; (26872)  |
|  | Transmedics Group Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5197 | &nbsp;&nbsp;&nbsp;&nbsp; (760373)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (2100192)  |
|  | **Health Care Providers & Services (0.1)%**<br>|  |  |  |
|  | Guardant Health Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3963 | &nbsp;&nbsp;&nbsp;&nbsp; (429669)  |
|  | Hims & Hers Health Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 379 | &nbsp;&nbsp;&nbsp;&nbsp; (15069)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (444738)  |
|  | **Hotel & Resort REITs (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Pebblebrook Hotel Trust | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5415 | &nbsp;&nbsp;&nbsp;&nbsp; (61406)  |
|  | **Hotels, Restaurants & Leisure (0.2)%**<br>|  |  |  |
|  | The Cheesecake Factory Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1284 | &nbsp;&nbsp;&nbsp;&nbsp; (61195)  |
|  | Cracker Barrel Old Country Store Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 208 | &nbsp;&nbsp;&nbsp;&nbsp; (6009)  |
|  | Doordash Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 73 | &nbsp;&nbsp;&nbsp;&nbsp; (14481)  |
|  | H World Group Ltd., ADR | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8745 | &nbsp;&nbsp;&nbsp;&nbsp; (403145)  |
|  | Norwegian Cruise Line Holdings Ltd. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6873 | &nbsp;&nbsp;&nbsp;&nbsp; (126876)  |
|  | Shake Shack Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 69 | &nbsp;&nbsp;&nbsp;&nbsp; (6036)  |
|  | Trip.Com Group Ltd., ADR | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8563 | &nbsp;&nbsp;&nbsp;&nbsp; (598725)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1216467)  |
|  | **Independent Power & Renewable Electricity Producers (0.1)%**<br>|  |  |  |
|  | Vistra Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1859 | &nbsp;&nbsp;&nbsp;&nbsp; (332501)  |
|  | **Insurance (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Ping An Insurance Group Co. of China Ltd., H | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34500 | &nbsp;&nbsp;&nbsp;&nbsp; (252481)  |
|  | **Interactive Media & Services (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Match Group Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 889 | &nbsp;&nbsp;&nbsp;&nbsp; (29613)  |

---

<br> 28 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Shares**  | **Value** |
| <sup>x</sup>  | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** |
|  | **Common Stocks (continued)**<br>|  |  |  |
|  | **IT Services (0.6)%**<br>|  |  |  |
|  | Akamai Technologies Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2643 | &nbsp;&nbsp;&nbsp;&nbsp; $(236602)  |
|  | Applied Digital Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49829 | &nbsp;&nbsp;&nbsp;&nbsp; (1350366)  |
|  | Bigbear.Ai Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31106 | &nbsp;&nbsp;&nbsp;&nbsp; (197212)  |
|  | Cloudflare Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3291 | &nbsp;&nbsp;&nbsp;&nbsp; (658891)  |
|  | Digitalocean Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2293 | &nbsp;&nbsp;&nbsp;&nbsp; (102084)  |
|  | Snowflake Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1984 | &nbsp;&nbsp;&nbsp;&nbsp; (498460)  |
|  | Wix.com Ltd. | Israel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 82 | &nbsp;&nbsp;&nbsp;&nbsp; (7848)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (3051463)  |
|  | **Leisure Products (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Peloton Interactive Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37270 | &nbsp;&nbsp;&nbsp;&nbsp; (253063)  |
|  | **Life Sciences Tools & Services (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Inotiv Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18533 | &nbsp;&nbsp;&nbsp;&nbsp; (17154)  |
|  | Tempus AI Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1059 | &nbsp;&nbsp;&nbsp;&nbsp; (82528)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (99682)  |
|  | **Machinery (0.2)%**<br>|  |  |  |
|  | The Greenbrier Cos. Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3233 | &nbsp;&nbsp;&nbsp;&nbsp; (143804)  |
|  | Illinois Tool Works Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3514 | &nbsp;&nbsp;&nbsp;&nbsp; (875970)  |
|  | John Bean Technologies Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 307 | &nbsp;&nbsp;&nbsp;&nbsp; (43143)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1062917)  |
|  | **Media (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Sirius XM Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7859 | &nbsp;&nbsp;&nbsp;&nbsp; (167082)  |
|  | **Metals & Mining (0.3)%**<br>|  |  |  |
|  | B2gold Corp. | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 132229 | &nbsp;&nbsp;&nbsp;&nbsp; (610898)  |
|  | Equinox Gold Corp. | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15721 | &nbsp;&nbsp;&nbsp;&nbsp; (218208)  |
|  | Fortuna Mining Corp. | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28154 | &nbsp;&nbsp;&nbsp;&nbsp; (284919)  |
|  | Mcewen Inc. | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3400 | &nbsp;&nbsp;&nbsp;&nbsp; (63274)  |
|  | Silvercorp Metals Inc. | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13604 | &nbsp;&nbsp;&nbsp;&nbsp; (106383)  |
|  | SSR Mining Inc. | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 676 | &nbsp;&nbsp;&nbsp;&nbsp; (15737)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1299419)  |
|  | **Multi-Utilities (0.4)%**<br>|  |  |  |
|  | Ameren Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6316 | &nbsp;&nbsp;&nbsp;&nbsp; (671707)  |
|  | CMS Energy Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29 | &nbsp;&nbsp;&nbsp;&nbsp; (2188)  |
|  | E.ON Se | Germany | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8868 | &nbsp;&nbsp;&nbsp;&nbsp; (157911)  |
|  | NiSource Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7987 | &nbsp;&nbsp;&nbsp;&nbsp; (352466)  |
|  | Public Service Enterprise Group Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8327 | &nbsp;&nbsp;&nbsp;&nbsp; (695471)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1879743)  |
|  | **Oil, Gas & Consumable Fuels (0.1)%**<br>|  |  |  |
|  | Kinder Morgan Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18443 | &nbsp;&nbsp;&nbsp;&nbsp; (503863)  |
|  | **Passenger Airlines (0.1)%**<br>|  |  |  |
|  | American Airlines Group Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 44672 | &nbsp;&nbsp;&nbsp;&nbsp; (627642)  |
|  | **Personal Care Products (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Oddity Tech Ltd. | Israel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 783 | &nbsp;&nbsp;&nbsp;&nbsp; (33873)  |
|  | **Pharmaceuticals (0.1)%** | **Pharmaceuticals (0.1)%** | **Pharmaceuticals (0.1)%** | **Pharmaceuticals (0.1)%** |
|  | Amphastar Pharmaceuticals Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 198 | &nbsp;&nbsp;&nbsp;&nbsp; (5485)  |
|  | ANI Pharmaceuticals Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2115 | &nbsp;&nbsp;&nbsp;&nbsp; (179458)  |
|  | Collegium Pharmaceutical Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4483 | &nbsp;&nbsp;&nbsp;&nbsp; (209266)  |

---

<br> franklintempleton.com Semiannual Report 29

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Shares**  | **Value** |
| <sup>x</sup>  | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** |
|  | **Common Stocks (continued)**<br>|  |  |  |
|  | **Pharmaceuticals (continued)** | **Pharmaceuticals (continued)** | **Pharmaceuticals (continued)** | **Pharmaceuticals (continued)** |
|  | Cormedix Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8939 | &nbsp;&nbsp;&nbsp;&nbsp; $(87692)  |
|  | Pacira Biosciences Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5576 | &nbsp;&nbsp;&nbsp;&nbsp; (131426)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (613327)  |
|  | **Real Estate Management & Development (0.1)%**<br>|  |  |  |
|  | Opendoor Technologies Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 41488 | &nbsp;&nbsp;&nbsp;&nbsp; (319457)  |
|  | Opendoor Technologies Inc., A, 11/20/26, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1118 | &nbsp;&nbsp;&nbsp;&nbsp; (1342)  |
|  | Opendoor Technologies Inc., K, 11/20/26, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1118 | &nbsp;&nbsp;&nbsp;&nbsp; (2135)  |
|  | Opendoor Technologies Inc., Z, 11/20/26, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1118 | &nbsp;&nbsp;&nbsp;&nbsp; (1088)  |
|  | Storagevault Canada Inc. | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3371 | &nbsp;&nbsp;&nbsp;&nbsp; (11919)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (335941)  |
|  | **Retail REITs (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Kite Realty Group Trust | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 878 | &nbsp;&nbsp;&nbsp;&nbsp; (20317)  |
|  | **Semiconductors & Semiconductor Equipment (0.7)%**<br>|  |  |  |
|  | Camtek Ltd. | Israel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 93 | &nbsp;&nbsp;&nbsp;&nbsp; (9793)  |
|  | COHU Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1977 | &nbsp;&nbsp;&nbsp;&nbsp; (48081)  |
|  | Enphase Energy Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12771 | &nbsp;&nbsp;&nbsp;&nbsp; (368443)  |
|  | Impinj Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1975 | &nbsp;&nbsp;&nbsp;&nbsp; (339443)  |
|  | Indie Semiconductor Inc., A | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 59133 | &nbsp;&nbsp;&nbsp;&nbsp; (210514)  |
|  | Macom Technology Solutions Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3470 | &nbsp;&nbsp;&nbsp;&nbsp; (607215)  |
|  | Microchip Technology Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 352 | &nbsp;&nbsp;&nbsp;&nbsp; (18860)  |
|  | MKS Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1054 | &nbsp;&nbsp;&nbsp;&nbsp; (164835)  |
|  | ON Semiconductor Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12172 | &nbsp;&nbsp;&nbsp;&nbsp; (611521)  |
|  | Penguin Solutions Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24112 | &nbsp;&nbsp;&nbsp;&nbsp; (487786)  |
|  | Semtech Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5218 | &nbsp;&nbsp;&nbsp;&nbsp; (386967)  |
|  | SolarEdge Technologies Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 346 | &nbsp;&nbsp;&nbsp;&nbsp; (12639)  |
|  | Veeco Instruments Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7313 | &nbsp;&nbsp;&nbsp;&nbsp; (213759)  |
|  | Wolfspeed Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14083 | &nbsp;&nbsp;&nbsp;&nbsp; (4468)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (3484324)  |
|  | **Software (2.8)%** | **Software (2.8)%** | **Software (2.8)%** | **Software (2.8)%** |
|  | A10 Networks Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3298 | &nbsp;&nbsp;&nbsp;&nbsp; (56792)  |
|  | Alkami Technology Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 300 | &nbsp;&nbsp;&nbsp;&nbsp; (6396)  |
|  | Aurora Innovation Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 753 | &nbsp;&nbsp;&nbsp;&nbsp; (3155)  |
|  | Bill Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 426 | &nbsp;&nbsp;&nbsp;&nbsp; (21364)  |
|  | Bit Digital Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13546 | &nbsp;&nbsp;&nbsp;&nbsp; (32240)  |
|  | Bitdeer Technologies Group | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5584 | &nbsp;&nbsp;&nbsp;&nbsp; (74881)  |
|  | Blackline Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 626 | &nbsp;&nbsp;&nbsp;&nbsp; (35676)  |
|  | Box Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3334 | &nbsp;&nbsp;&nbsp;&nbsp; (98486)  |
|  | Cipher Mining Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 64607 | &nbsp;&nbsp;&nbsp;&nbsp; (1314753)  |
|  | Cleanspark Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16823 | &nbsp;&nbsp;&nbsp;&nbsp; (254027)  |
|  | Core Scientific Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34598 | &nbsp;&nbsp;&nbsp;&nbsp; (584360)  |
|  | Dropbox Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7511 | &nbsp;&nbsp;&nbsp;&nbsp; (224429)  |
|  | Five9 Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 175 | &nbsp;&nbsp;&nbsp;&nbsp; (3428)  |
|  | Guidewire Software Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 778 | &nbsp;&nbsp;&nbsp;&nbsp; (168032)  |
|  | InterDigital Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10463 | &nbsp;&nbsp;&nbsp;&nbsp; (3743138)  |
|  | Iren Ltd. | Australia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 86016 | &nbsp;&nbsp;&nbsp;&nbsp; (4112425)  |
|  | Marathon Digital Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10760 | &nbsp;&nbsp;&nbsp;&nbsp; (127076)  |
|  | Nebius Group NV, A | Netherlands | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16914 | &nbsp;&nbsp;&nbsp;&nbsp; (1604631)  |
|  | Nutanix Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3816 | &nbsp;&nbsp;&nbsp;&nbsp; (182405)  |
|  | Pagaya Technologies, Ltd. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17324 | &nbsp;&nbsp;&nbsp;&nbsp; (432234)  |
|  | PAR Technology Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 493 | &nbsp;&nbsp;&nbsp;&nbsp; (17013)  |

---

<br> 30 Semiannual Report franklintempleton.com

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Shares**  | **Value** |
| <sup>x</sup>  | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** |
|  | **Common Stocks (continued)**<br>|  |  |  |
|  | **Software (continued)** | **Software (continued)** | **Software (continued)** | **Software (continued)** |
|  | Porch Group Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1491 | &nbsp;&nbsp;&nbsp;&nbsp; $(14448)  |
|  | PROS Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13688 | &nbsp;&nbsp;&nbsp;&nbsp; (318109)  |
|  | Q2 Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 283 | &nbsp;&nbsp;&nbsp;&nbsp; (20413)  |
|  | Riot Platforms Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3911 | &nbsp;&nbsp;&nbsp;&nbsp; (63084)  |
|  | Rubrik Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2545 | &nbsp;&nbsp;&nbsp;&nbsp; (176419)  |
|  | Strategy, Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 55 | &nbsp;&nbsp;&nbsp;&nbsp; (9745)  |
|  | Terawulf Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 43019 | &nbsp;&nbsp;&nbsp;&nbsp; (667225)  |
|  | Vertex Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5741 | &nbsp;&nbsp;&nbsp;&nbsp; (112926)  |
|  | Workiva Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 259 | &nbsp;&nbsp;&nbsp;&nbsp; (23973)  |
|  | Zscaler Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 432 | &nbsp;&nbsp;&nbsp;&nbsp; (108648)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (14611931)  |
|  | **Specialty Retail (0.5)%**<br>|  |  |  |
|  | Gamestop Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9472 | &nbsp;&nbsp;&nbsp;&nbsp; (213404)  |
|  | Gamestop Corp., 10/30/26, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1118 | &nbsp;&nbsp;&nbsp;&nbsp; (3734)  |
|  | The Realreal Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17777 | &nbsp;&nbsp;&nbsp;&nbsp; (257411)  |
|  | Wayfair Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19229 | &nbsp;&nbsp;&nbsp;&nbsp; (2130573)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (2605122)  |
|  | **Technology Hardware, Storage & Peripherals (1.4)%**<br>|  |  |  |
|  | Ionq Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1835 | &nbsp;&nbsp;&nbsp;&nbsp; (90465)  |
|  | Quantum Computing Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7156 | &nbsp;&nbsp;&nbsp;&nbsp; (83725)  |
|  | Seagate Technology Holdings PLC | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7683 | &nbsp;&nbsp;&nbsp;&nbsp; (2125809)  |
|  | Super Micro Computer Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12483 | &nbsp;&nbsp;&nbsp;&nbsp; (422550)  |
|  | Western Digital Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27414 | &nbsp;&nbsp;&nbsp;&nbsp; (4477529)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (7200078)  |
|  | **Trading Companies & Distributors (0.1)%**<br>|  |  |  |
|  | Xometry Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10594 | &nbsp;&nbsp;&nbsp;&nbsp; (619431)  |
|  | **Water Utilities (0.1)%**<br>|  |  |  |
|  | American Water Works Co. Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3161 | &nbsp;&nbsp;&nbsp;&nbsp; (411151)  |
|  | &nbsp;&nbsp;&nbsp; **Total Common Stocks** <br>**(Proceeds $66,668,298)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (68323845)  |
|  | **Exchange Traded Funds (1.1)%**<br>|  |  |  |
|  | Eldridge BBB-B CLO ETF | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26675 | &nbsp;&nbsp;&nbsp;&nbsp; (710622)  |
|  | iShares iBoxx High Yield Corporate Bond ETF | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17844 | &nbsp;&nbsp;&nbsp;&nbsp; (1445185)  |
|  | iShares MSCI Brazil ETF | Brazil | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26987 | &nbsp;&nbsp;&nbsp;&nbsp; (907033)  |
|  | Janus Henderson B-BBB CLO ETF | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7759 | &nbsp;&nbsp;&nbsp;&nbsp; (372820)  |
|  | State Street Industrial Select Sector SPDR ETF | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16440 | &nbsp;&nbsp;&nbsp;&nbsp; (2526664)  |
|  | &nbsp;&nbsp;&nbsp; **Total Exchange Traded Funds** <br>**(Proceeds $5,629,859)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (5962324)  |
|  | **Preferred Stocks (Proceeds $179,995) (0.1)%**<br>|  |  |  |
|  | **Automobiles (0.1)%**<br>|  |  |  |
|  | Volkswagen AG, pfd., 2.08% | Germany | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1566 | &nbsp;&nbsp;&nbsp;&nbsp; (178966)  |
|  |  |  | **Principal Amount<sup>\*</sup>**  |  |
|  | **U.S. Government and Agency Securities (1.7)%**<br>|  |  |  |
|  | U.S. Treasury Bond,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 4.875%, 8/15/45 | United States | 359000 | (370331)  |
|  | &nbsp;&nbsp;&nbsp; 4.75%, 5/15/55 | United States | 1214500 | (1229397)  |
|  | U.S. Treasury Note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 3.875%, 3/31/27 | United States | 375000 | (376414)  |
|  | &nbsp;&nbsp;&nbsp; 3.75%, 4/30/27 | United States | 490000 | (491254) |

---

<br> franklintempleton.com Semiannual Report 31

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
| <sup>x</sup>  | **Securities Sold Short (continued)**  | **Securities Sold Short (continued)**  | **Securities Sold Short (continued)**  | **Securities Sold Short (continued)**  |
|  | **U.S. Government and Agency Securities (continued)**<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 3.75%, 6/30/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 703000 | &nbsp;&nbsp;&nbsp;&nbsp; $(705224)  |
|  | &nbsp;&nbsp;&nbsp; 3.875%, 7/31/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 709000 | &nbsp;&nbsp;&nbsp;&nbsp; (712877)  |
|  | &nbsp;&nbsp;&nbsp; 3.625%, 8/31/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 674000 | &nbsp;&nbsp;&nbsp;&nbsp; (675132)  |
|  | &nbsp;&nbsp;&nbsp; 3.50%, 11/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 65000 | &nbsp;&nbsp;&nbsp;&nbsp; (65018)  |
|  | &nbsp;&nbsp;&nbsp; 3.875%, 4/30/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 979000 | &nbsp;&nbsp;&nbsp;&nbsp; (990912)  |
|  | &nbsp;&nbsp;&nbsp; 3.875%, 6/30/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 349000 | &nbsp;&nbsp;&nbsp;&nbsp; (353247)  |
|  | &nbsp;&nbsp;&nbsp; 3.875%, 7/31/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 306000 | &nbsp;&nbsp;&nbsp;&nbsp; (309705)  |
|  | &nbsp;&nbsp;&nbsp; 3.625%, 8/31/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 278000 | &nbsp;&nbsp;&nbsp;&nbsp; (278326)  |
|  | &nbsp;&nbsp;&nbsp; 3.625%, 9/30/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 270000 | &nbsp;&nbsp;&nbsp;&nbsp; (270295)  |
|  | &nbsp;&nbsp;&nbsp; 3.625%, 10/31/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 123000 | &nbsp;&nbsp;&nbsp;&nbsp; (123125)  |
|  | &nbsp;&nbsp;&nbsp; 4.25%, 8/15/35 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2191000 | &nbsp;&nbsp;&nbsp;&nbsp; (2233964)  |
|  | &nbsp;&nbsp;&nbsp; 4.00%, 11/15/35 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 106000 | &nbsp;&nbsp;&nbsp;&nbsp; (105843)  |
|  | &nbsp;&nbsp;&nbsp; **Total U.S. Government and Agency Securities** <br>**(Proceeds $9,246,793)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (9291064)  |
|  | **Corporate Bonds and Notes (3.8)%**<br>|  |  |  |
|  | **Advertising (0.1)%**<br>|  |  |  |
| <sup>e</sup> | Dotdash Meredith Inc., senior secured note, 144A, 7.625%, 6/15/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 363000 | &nbsp;&nbsp;&nbsp;&nbsp; (329112)  |
| <sup>e</sup> | Stagwell Global LLC, senior note, 144A, 5.625%, 8/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 394000 | &nbsp;&nbsp;&nbsp;&nbsp; (383201)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (712313)  |
|  | **Banks (0.1)%**<br>|  |  |  |
| <sup>e,j</sup> | Industrial & Commercial Bank of China Ltd., junior sub. bond, Reg S, 3.20% to 9/24/26, FRN thereafter, Perpetual | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 279000 | &nbsp;&nbsp;&nbsp;&nbsp; (276608)  |
|  | **Basic Materials (0.1)%**<br>|  |  |  |
| <sup>e</sup> | Cleveland-Cliffs Inc., senior note, 144A, 7.375%, 5/01/33 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 689000 | &nbsp;&nbsp;&nbsp;&nbsp; (711307)  |
|  | **Building Materials (0.2)%**<br>|  |  |  |
| <sup>e</sup> | &nbsp;&nbsp;&nbsp; MIWD Holdco II LLC / MIWD Finance Corp., senior note, 144A, <br>5.50%, 2/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 286000 | &nbsp;&nbsp;&nbsp;&nbsp; (270792)  |
| <sup>e</sup> | &nbsp;&nbsp;&nbsp; Smyrna Ready Mix Concrete LLC, senior secured note, 144A, <br>8.875%, 11/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 606000 | &nbsp;&nbsp;&nbsp;&nbsp; (643704)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (914496)  |
|  | **Chemicals (0.2)%**<br>|  |  |  |
|  | Celanese US Holdings LLC, senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 6.50%, 4/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 782000 | &nbsp;&nbsp;&nbsp;&nbsp; (781251)  |
|  | &nbsp;&nbsp;&nbsp; 6.75%, 4/15/33 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 283000 | &nbsp;&nbsp;&nbsp;&nbsp; (281821)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1063072)  |
|  | **Commercial Services & Supplies (0.1)%**<br>|  |  |  |
| <sup>e</sup> | &nbsp;&nbsp;&nbsp; Ion Platform Finance US Inc., senior secured note, 144A, <br>7.875%, 9/30/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 193000 | &nbsp;&nbsp;&nbsp;&nbsp; (184135)  |
| <sup>e</sup> | Vt Topco Inc., senior secured note, 144A, 8.50%, 8/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 202000 | &nbsp;&nbsp;&nbsp;&nbsp; (210524)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (394659)  |
|  | **Communications Equipment (0.2)%**<br>|  |  |  |
| <sup>e</sup> | Equipmentshare.Com Inc., senior secured note, 144A, 8.00%, 3/15/33 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 666000 | &nbsp;&nbsp;&nbsp;&nbsp; (679470)  |
|  | **Construction Materials (0.0)%<sup>†</sup>**<br>|  |  |  |
| <sup>e</sup> | &nbsp;&nbsp;&nbsp; Camelot Return Merger Sub Inc., senior secured note, 144A, <br>8.75%, 8/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 226000 | &nbsp;&nbsp;&nbsp;&nbsp; (189176)  |
|  | **Diversified Financial Services (0.0)%<sup>†</sup>**<br>|  |  |  |
| <sup>e</sup> | Goeasy Ltd., senior note, 144A, 6.875%, 2/15/31 | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 123000 | &nbsp;&nbsp;&nbsp;&nbsp; (116165)  |

---

<br> 32 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
| <sup>x</sup>  | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** |
|  | **Corporate Bonds and Notes (continued)**<br>|  |  |  |  |
|  | **Electric Utilities (0.0)%<sup>†</sup>**<br>|  |  |  |  |
| <sup>y</sup> | Edison International, junior sub. bond, FRN, 8.125%, (US 5 Year CMT + 3.86%), 6/15/53 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 168000 |  | &nbsp;&nbsp;&nbsp;&nbsp; $(173667)  |
|  | **Financial Services (0.5)%**<br>|  |  |  |  |
|  | Blue Owl Technology Finance Corp., senior note, 6.75%, 4/04/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 649000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (661068)  |
| <sup>e</sup> | Encore Capital Group Inc., senior secured note, 144A, 8.50%, 5/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 205000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (218348)  |
| <sup>e</sup> | Jefferson Capital Holdings LLC, senior note, 144A, 8.25%, 5/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 194000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (203120)  |
| <sup>e</sup> | LBM Acquisition LLC, senior note, 144A, 6.25%, 1/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 749000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (670583)  |
| <sup>e</sup> | PRA Group Inc., senior note, 144A, 8.875%, 1/31/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 243000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (252222)  |
| <sup>e</sup> | RFNA LP, senior note, 144A, 7.875%, 2/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 445000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (451561)  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (2456902)  |
|  | **Industrial Conglomerates (0.2)%**<br>|  |  |  |  |
|  | 3M Co., senior bond, 2.25%, 9/19/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 220000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (217000)  |
|  | Icahn Enterprises LP / Icahn Enterprises Finance Corp., senior secured note, 9.00%, 6/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 735000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (711131)  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (928131)  |
|  | **Internet & Direct Marketing Retail (0.2)%**<br>|  |  |  |  |
|  | Alphabet Inc., senior bond, 5.25%, 5/15/55 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 421000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (418570)  |
|  | Amazon.Com Inc., senior bond, 3.95%, 4/13/52 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 401000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (322748)  |
|  | Meta Platforms Inc., senior bond, 5.40%, 8/15/54 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 277000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (268852)  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1010170)  |
|  | **IT Services (0.3)%**<br>|  |  |  |  |
|  | Booz Allen Hamilton Inc.,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 5.95%, 8/04/33 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 488000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (513905)  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 5.95%, 4/15/35 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 551000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (573149)  |
|  | &nbsp;&nbsp; <sup>e</sup>senior note, 144A, 4.00%, 7/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 488000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (476949)  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1564003)  |
|  | **Machinery-Diversified (0.0)%<sup>†</sup>**<br>|  |  |  |  |
| <sup>e,y</sup> | Evoca SpA, senior secured note, FRN, Reg S, 7.279%, (3-Month EURIBOR + 5.25%), 4/09/29 | Italy | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (53489)  |
|  | **Media (0.2)%**<br>|  |  |  |  |
| <sup>e</sup> | Univision Communications Inc., senior secured note, 144A,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 4.50%, 5/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 709000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (676652)  |
|  | &nbsp;&nbsp;&nbsp; 7.375%, 6/30/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 191000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (193931)  |
|  | &nbsp;&nbsp;&nbsp; 9.375%, 8/01/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (72245)  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (942828)  |
|  | **Oil, Gas & Consumable Fuels (0.4)%**<br>|  |  |  |  |
|  | Helmerich & Payne Inc., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 4.85%, 12/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 580000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (582563)  |
|  | &nbsp;&nbsp;&nbsp; 5.50%, 12/01/34 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 390000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (388883)  |
| <sup>e</sup> | Nabors Industries Inc., senior note, 144A, 8.875%, 8/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 197000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (192505)  |
| <sup>e</sup> | Saturn Oil & Gas Inc., senior secured note, 144A, 9.625%, 6/15/29 | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 503000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (511910)  |
| <sup>e</sup> | Venture Global Lng Inc., senior secured note, 144A, 8.375%, 6/01/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 271000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (271851)  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1947712)  |
|  | **Packaging & Containers (0.0)%<sup>†</sup>**<br>|  |  |  |  |
| <sup>e</sup> | LABL Inc., senior secured note, 144A, 5.875%, 11/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 103000 |  | &nbsp;&nbsp;&nbsp;&nbsp; (70289)  |

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<br> franklintempleton.com Semiannual Report 33

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
| <sup>x</sup>  | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** |
|  | **Corporate Bonds and Notes (continued)**<br>|  |  |  |
|  | **Pharmaceuticals (0.3)%**<br>|  |  |  |
| <sup>e</sup> | Organon & Co. / Organon Foreign Debt Co.-Issuer BV, 144A,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 5.125%, 4/30/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1586000 | &nbsp;&nbsp;&nbsp;&nbsp; $(1329409)  |
|  | &nbsp;&nbsp;&nbsp; senior secured note, 4.125%, 4/30/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 483000 | &nbsp;&nbsp;&nbsp;&nbsp; (471114)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1800523)  |
|  | **Semiconductors (0.1)%**<br>|  |  |  |
|  | Advanced Micro Devices Inc., senior bond, 4.393%, 6/01/52 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 195000 | &nbsp;&nbsp;&nbsp;&nbsp; (168097)  |
|  | NVIDIA Corp., senior bond, 3.50%, 4/01/50 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 274000 | &nbsp;&nbsp;&nbsp;&nbsp; (209155)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (377252)  |
|  | **Semiconductors & Semiconductor Equipment (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Broadcom Inc., senior bond, 3.75%, 2/15/51 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 298000 | &nbsp;&nbsp;&nbsp;&nbsp; (231571)  |
|  | **Software (0.4)%**<br>|  |  |  |
|  | Concentrix Corp.,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 6.85%, 8/02/33 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 226000 | &nbsp;&nbsp;&nbsp;&nbsp; (225582)  |
|  | &nbsp;&nbsp;&nbsp; senior note, 6.60%, 8/02/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 172000 | &nbsp;&nbsp;&nbsp;&nbsp; (177581)  |
| <sup>e</sup> | Coreweave Inc., senior note, 144A, 9.00%, 2/01/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 240000 | &nbsp;&nbsp;&nbsp;&nbsp; (217475)  |
|  | Microsoft Corp., senior bond, 2.921%, 3/17/52 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 215000 | &nbsp;&nbsp;&nbsp;&nbsp; (146273)  |
|  | Oracle Corp., senior bond,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 5.95%, 9/26/55 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1196000 | &nbsp;&nbsp;&nbsp;&nbsp; (1121596)  |
|  | &nbsp;&nbsp;&nbsp; 6.10%, 9/26/65 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 97000 | &nbsp;&nbsp;&nbsp;&nbsp; (90411)  |
| <sup>e</sup> | Pagaya US Holdings Co. LLC, senior note, 144A, 8.875%, 8/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 445000 | &nbsp;&nbsp;&nbsp;&nbsp; (401926)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (2380844)  |
|  | **Specialty Retail (0.2)%**<br>|  |  |  |
| <sup>e</sup> | Victra Holdings LLC / Victra Finance Corp., senior secured note, 144A, 8.75%, 9/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 988000 | &nbsp;&nbsp;&nbsp;&nbsp; (1047120)  |
|  | &nbsp;&nbsp;&nbsp; **Total Corporate Bonds and Notes** <br>**(Proceeds $20,021,912)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (20041767)  |
| <sup>o,p</sup> | **Senior Floating Rate Interests (1.2)%**<br>|  |  |  |
|  | **Automobile Components (0.0)%<sup>†</sup>**<br>|  |  |  |
| <sup>d,q</sup> | First Brands Group LLC, First Lien Term Loan, 10.59%, (3-Month SOFR + 5.00%), 3/30/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 769340 | &nbsp;&nbsp;&nbsp;&nbsp; (265422)  |
|  | **Building Products (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Cornerstone Building Brands, Inc., Term Loan B, 7.309%, (1-Month SOFR + 3.25%), 4/12/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 67925 | &nbsp;&nbsp;&nbsp;&nbsp; (54435)  |
|  | Gulfside Supply, Initial Term Loan, 7.002%, (SOFR + 3.00%), 6/17/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 208956 | &nbsp;&nbsp;&nbsp;&nbsp; (208652)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (263087)  |
|  | **Commercial Services & Supplies (0.1)%**<br>|  |  |  |
|  | VT Topco Inc., Second Amendment Term Loan (First Lien), 6.873%, (SOFR + 3.00%), 8/09/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 528608 | &nbsp;&nbsp;&nbsp;&nbsp; (522331)  |
|  | **Diversified Telecommunication Services (0.1)%**<br>|  |  |  |
| <sup>q</sup> | DTI Holdings Inc., 2025 Refinancing Term Loan, 7.916%, (SOFR + 4.00%), 4/26/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 466634 | &nbsp;&nbsp;&nbsp;&nbsp; (437738)  |
| <sup>q</sup> | Liberty Communications of Puerto Rico LLC, Term Loan B, 8.219%, (SOFR + 3.75%), 10/16/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 163623 | &nbsp;&nbsp;&nbsp;&nbsp; (106821)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (544559)  |
|  | **Entertainment (0.2)%**<br>|  |  |  |
|  | Stubhub, Term Loan B, 9.077%, (SOFR + 4.75%), 3/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 993721 | &nbsp;&nbsp;&nbsp;&nbsp; (972917)  |

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<br> 34 Semiannual Report franklintempleton.com

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
| <sup>x</sup>  | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** |
| <sup>o,p</sup> | **Senior Floating Rate Interests (continued)**<br>|  |  |  |
|  | **Health Care Providers & Services (0.2)%**<br>|  |  |  |
|  | Petco Health & Wellness Co. Inc., First Lien Term Loan, 7.513%, (3-Month SOFR + 3.51%), 3/03/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 885257 | &nbsp;&nbsp;&nbsp;&nbsp; $(873209)  |
|  | **IT Services (0.3)%**<br>|  |  |  |
| <sup>q</sup> | Idera, Inc., Bank Debt Term Loan, 7.504%, (SOFR + 3.50%), 3/02/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 710033 | &nbsp;&nbsp;&nbsp;&nbsp; (641860)  |
|  | Nord SE, Term Loan, 7.937%, (SOFR + 4.00%), 9/23/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27255 | &nbsp;&nbsp;&nbsp;&nbsp; (27357)  |
| <sup>q</sup> | SonicWall, Bank Debt Term Loan, 9.329%, (SOFR + 5.00%), 5/18/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 769266 | &nbsp;&nbsp;&nbsp;&nbsp; (680185)  |
|  | Starlight Parent LLC, Initial Term Loan (First Lien), 8.261%, (SOFR + 4.00%), 4/16/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 436658 | &nbsp;&nbsp;&nbsp;&nbsp; (433837)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1783239)  |
|  | **Media (0.1)%**<br>|  |  |  |
|  | Dotdash Meredith Inc., Term B-2 Loan, 7.373%, (SOFR + 3.50%), 6/17/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 67925 | &nbsp;&nbsp;&nbsp;&nbsp; (58670)  |
| <sup>q</sup> | MH Sub I LLC, Bank Debt Term Loan, 8.166%, (1- Month SOFR + 4.25%), 12/31/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 336215 | &nbsp;&nbsp;&nbsp;&nbsp; (274855)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (333525)  |
|  | **Professional Services (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Pre Paid Legal Services Inc., First Lien Initial Term Loan, 7.166%, (SOFR + 3.25%), 12/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19583 | &nbsp;&nbsp;&nbsp;&nbsp; (19026)  |
|  | **Real Estate Management & Development (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Oceankey US II, Initial Term Loan (First Lien), 7.516%, (SOFR + 3.60%), 12/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 179731 | &nbsp;&nbsp;&nbsp;&nbsp; (178512)  |
|  | **Software (0.2)%**<br>|  |  |  |
| <sup>q</sup> | Perforce, Term Loan B, 9.077%, (SOFR + 4.75%), 7/02/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 412916 | &nbsp;&nbsp;&nbsp;&nbsp; (375547)  |
| <sup>q</sup> | Skopima Consilio Parent LLC, Amendment No. 5 Term Loan, 7.666%, (SOFR + 3.75%), 5/12/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 215838 | &nbsp;&nbsp;&nbsp;&nbsp; (197790)  |
|  | Tungsten Automation, Bank Debt Term Loan, 9.641%, (SOFR + 5.25%), 7/20/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 326738 | &nbsp;&nbsp;&nbsp;&nbsp; (284671)  |
|  | Zodiac Purchaser LLC, Term Loan, 7.416%, (SOFR + 3.50%), 2/14/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29674 | &nbsp;&nbsp;&nbsp;&nbsp; (29392)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (887400)  |
|  | **Specialty Retail (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Harbor Freight Tools, Term Loan B, 6.166%, (SOFR + 2.50%), 6/11/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21595 | &nbsp;&nbsp;&nbsp;&nbsp; (21295)  |
|  | &nbsp;&nbsp;&nbsp; **Total Senior Floating Rate Interests** <br>**(Proceeds $7,313,945)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (6664522)  |
|  | &nbsp;&nbsp;&nbsp; **Total Securities Sold Short** <br>**(Proceeds $109,060,802)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; $(110462488) |

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<br> franklintempleton.com Semiannual Report 35

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

<sup>†</sup> Rounds to less than 0.1% of net assets.

<sup>\*</sup> The principal amount is stated in U.S. dollars unless otherwise indicated.

<sup>#</sup> Notional amount is the number of contracts multiplied by contract size, and may be multiplied by the underlying price. May include currency units, bushels, shares, pounds, barrels or other units. Currency units are stated in U.S. dollars unless otherwise indicated.

<sup>a</sup> Non-income producing.

<sup>b</sup> A portion or all of the security has been segregated as collateral for securities sold short, open swap contracts, open forward exchange contracts, open futures contracts and/or open written option contracts. At November 30, 2025, the aggregate value of these securities and/or cash pledged amounted to $149,489,476, representing 28.0% of net assets.

<sup>c</sup> A portion or all of the security is on loan at November 30, 2025. See Note 1(f).

<sup>d</sup> Fair valued using significant unobservable inputs. See Note 12 regarding fair value measurements.

<sup>e</sup> 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 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 November 30, 2025, the net value of these securities was $49,086,499, representing 9.2% of net assets.

<sup>f</sup> See Note 7 regarding investments in Russian securities.

<sup>g</sup> Variable interest entity (VIE). See Note 7 regarding investments made through a VIE structure. At November 30, 2025, the aggregate value of these securities was $1,524,546, representing 0.3% of net assets.

<sup>h</sup> Income may be received in additional securities and/or cash.

<sup>i</sup> Defaulted security or security for which income has been deemed uncollectible. See Note 6.

<sup>j</sup> Perpetual security with no stated maturity date.

<sup>k</sup> A supranational organization is an entity formed by two or more central governments through international treaties.

<sup>l</sup> See Note 8 regarding restricted securities.

<sup>m</sup> A portion or all of the security purchased on a delayed delivery basis. See Note 1(c).

<sup>n</sup> Principal amount is stated in 100 Mexican Peso Units.

<sup>o</sup> See Note 1(h) regarding senior floating rate interests.

<sup>p</sup> The coupon rate shown represents the rate inclusive of any caps or floors, if applicable, in effect at period end.

<sup>q</sup> See Note 9 regarding unfunded loan commitments.

<sup>r</sup> The rate shown is the annualized seven-day effective yield at period end.

<sup>s</sup> A portion or all of the security is owned by K2 Holdings Investment Corp., a wholly-owned subsidiary of the Fund. See Note 1(g).

<sup>t</sup> See Note 1(f) regarding securities on loan.

<sup>u</sup> See Note 3(f) regarding investments in affiliated investment companies.

<sup>v</sup> Rate shown represents yield-to-maturity.

<sup>w</sup> See Note 1(d) regarding written options.

<sup>x</sup> See Note 1(e) regarding securities sold short.

<sup>y</sup> The coupon rate shown represents the rate at period end.

<br> 36 Semiannual Report franklintempleton.com

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)**

At November 30, 2025, the Fund had the following futures contracts outstanding. See Note 1(d).

**Futures Contracts** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Description** | **Type** | **Number of** <br>**Contracts** | **Notional** <br>**Amount<sup>\*</sup>** | **Expiration** <br>**Date** | **Value/Unrealized** <br>**Appreciation** <br>(Depreciation)  |
| **Commodity Contracts<sup>a</sup>**  | **Commodity Contracts<sup>a</sup>**  | **Commodity Contracts<sup>a</sup>**  | **Commodity Contracts<sup>a</sup>**  | **Commodity Contracts<sup>a</sup>**  | **Commodity Contracts<sup>a</sup>**  |
| Aluminum | Long | &nbsp;&nbsp;&nbsp;&nbsp; 7 | $499238 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $42788  |
| Aluminum | Short | &nbsp;&nbsp;&nbsp;&nbsp; 7 | 499238 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2237  |
| Aluminum | Long | &nbsp;&nbsp;&nbsp;&nbsp; 8 | 574818 | &nbsp;&nbsp;&nbsp; 3/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200  |
| Brent Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 38 | 2370440 | &nbsp;&nbsp;&nbsp; 12/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (39180)  |
| Brent Crude Oil | Short | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 311900 | &nbsp;&nbsp;&nbsp; 12/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2778)  |
| Brent Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 17 | 1053490 | &nbsp;&nbsp;&nbsp; 1/30/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (23648)  |
| Brent Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 61730 | &nbsp;&nbsp;&nbsp; 2/27/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2231)  |
| Canola | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 18629 | &nbsp;&nbsp;&nbsp; 1/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(446)  |
| Canola | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 19010 | &nbsp;&nbsp;&nbsp; 3/13/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(227)  |
| Cattle Feeder | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 161987 | &nbsp;&nbsp;&nbsp; 1/29/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5552)  |
| Cocoa | Short | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 217868 | &nbsp;&nbsp;&nbsp; 3/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12877  |
| Cocoa | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 55110 | &nbsp;&nbsp;&nbsp; 5/13/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1492)  |
| Coffee | Long | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 714750 | &nbsp;&nbsp;&nbsp; 3/19/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25148  |
| Copper | Long | &nbsp;&nbsp;&nbsp;&nbsp; 11 | 3086166 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 288633  |
| Copper | Short | &nbsp;&nbsp;&nbsp;&nbsp; 11 | 3086166 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (209065)  |
| Copper | Long | &nbsp;&nbsp;&nbsp;&nbsp; 7 | 1957921 | &nbsp;&nbsp;&nbsp; 3/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 59009  |
| Copper | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 279703 | &nbsp;&nbsp;&nbsp; 3/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10207)  |
| Copper | Long | &nbsp;&nbsp;&nbsp;&nbsp; 10 | 1318000 | &nbsp;&nbsp;&nbsp; 3/27/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42608  |
| Corn | Short | &nbsp;&nbsp;&nbsp;&nbsp; 94 | 2104425 | &nbsp;&nbsp;&nbsp; 3/13/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (23097)  |
| Corn | Short | &nbsp;&nbsp;&nbsp;&nbsp; 8 | 182300 | &nbsp;&nbsp;&nbsp; 5/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1907  |
| Corn | Short | &nbsp;&nbsp;&nbsp;&nbsp; 8 | 184500 | &nbsp;&nbsp;&nbsp; 7/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(30)  |
| Corn | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 45650 | &nbsp;&nbsp;&nbsp; 9/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(854)  |
| Corn | Short | &nbsp;&nbsp;&nbsp;&nbsp; 7 | 163887 | &nbsp;&nbsp;&nbsp; 12/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2315)  |
| Cotton | Long | &nbsp;&nbsp;&nbsp;&nbsp; 10 | 323550 | &nbsp;&nbsp;&nbsp; 3/09/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5203)  |
| Cotton | Short | &nbsp;&nbsp;&nbsp;&nbsp; 6 | 194130 | &nbsp;&nbsp;&nbsp; 3/09/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6057  |
| Cotton | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 32960 | &nbsp;&nbsp;&nbsp; 5/06/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18  |
| ECX Emission | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 96582 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3021)  |
| Frozen Orange Juice | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 23407 | &nbsp;&nbsp;&nbsp; 1/09/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5642)  |
| Gasoline | Long | &nbsp;&nbsp;&nbsp;&nbsp; 20 | 1530060 | &nbsp;&nbsp;&nbsp; 12/31/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (67770)  |
| Gasoline | Long | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 152754 | &nbsp;&nbsp;&nbsp; 1/30/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2166)  |
| Gold 100 Oz | Long | &nbsp;&nbsp;&nbsp;&nbsp; 27 | 11488230 | &nbsp;&nbsp;&nbsp; 2/25/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 244683  |
| Hard Red Winter Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 55 | 1450625 | &nbsp;&nbsp;&nbsp; 3/13/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21308  |
| Hard Red Winter Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 15 | 404250 | &nbsp;&nbsp;&nbsp; 5/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(708)  |
| Hard Red Winter Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 11 | 303050 | &nbsp;&nbsp;&nbsp; 7/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 88  |
| Lean Hogs | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 32240 | &nbsp;&nbsp;&nbsp; 12/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2148  |
| Lean Hogs | Short | &nbsp;&nbsp;&nbsp;&nbsp; 10 | 324000 | &nbsp;&nbsp;&nbsp; 2/13/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13048  |
| Lean Hogs | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 101880 | &nbsp;&nbsp;&nbsp; 4/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4023  |
| Lean Hogs | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 38700 | &nbsp;&nbsp;&nbsp; 6/12/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1338  |
| Live Cattle | Long | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 431150 | &nbsp;&nbsp;&nbsp; 12/31/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (27751)  |
| Live Cattle | Long | &nbsp;&nbsp;&nbsp;&nbsp; 7 | 609980 | &nbsp;&nbsp;&nbsp; 2/27/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4425)  |
| Live Cattle | Long | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 439100 | &nbsp;&nbsp;&nbsp; 4/30/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (12901)  |
| Live Cattle | Long | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 257280 | &nbsp;&nbsp;&nbsp; 6/30/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6593  |
| Low Sulphur Gas Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 137150 | &nbsp;&nbsp;&nbsp; 12/11/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3623  |
| Low Sulphur Gas Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 28 | 1875300 | &nbsp;&nbsp;&nbsp; 1/12/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (95816)  |
| Low Sulphur Gas Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 66050 | &nbsp;&nbsp;&nbsp; 2/12/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4426)  |
| Milling Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 68 | 741473 | &nbsp;&nbsp;&nbsp; 3/10/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31449  |
| Milling Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 17 | 188819 | &nbsp;&nbsp;&nbsp; 5/11/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7443  |
| Milling Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 7 | 80388 | &nbsp;&nbsp;&nbsp; 9/10/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3452  |
| Milling Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 59450 | &nbsp;&nbsp;&nbsp; 12/10/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1204  |
| Natural Gas | Long | &nbsp;&nbsp;&nbsp;&nbsp; 6 | 291000 | &nbsp;&nbsp;&nbsp; 12/29/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7076  |
| Natural Gas | Short | &nbsp;&nbsp;&nbsp;&nbsp; 55 | 2667500 | &nbsp;&nbsp;&nbsp; 12/29/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (114512)  |
| Natural Gas | Short | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 220900 | &nbsp;&nbsp;&nbsp; 1/28/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7318)  |
| Natural Gas | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 114690 | &nbsp;&nbsp;&nbsp; 2/25/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1425  |
| Natural Gas | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 110970 | &nbsp;&nbsp;&nbsp; 3/27/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(405)  |

---

<br> franklintempleton.com Semiannual Report 37

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Futures Contracts (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Description** | **Type** | **Number of** <br>**Contracts** | **Notional** <br>**Amount<sup>\*</sup>** | **Expiration** <br>**Date** | **Value/Unrealized** <br>**Appreciation** <br>(Depreciation)  |
| **Commodity Contracts<sup>a</sup> (continued)** | **Commodity Contracts<sup>a</sup> (continued)** | **Commodity Contracts<sup>a</sup> (continued)** | **Commodity Contracts<sup>a</sup> (continued)** | **Commodity Contracts<sup>a</sup> (continued)** | **Commodity Contracts<sup>a</sup> (continued)** |
| Natural Gas | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | $37190 | &nbsp;&nbsp;&nbsp; 4/28/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $108  |
| NY Harbor Ultra Low Sulfur Diesel | Long | &nbsp;&nbsp;&nbsp;&nbsp; 18 | 1741144 | &nbsp;&nbsp;&nbsp; 12/31/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (101368)  |
| NY Harbor Ultra Low Sulfur Diesel | Long | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 190579 | &nbsp;&nbsp;&nbsp; 1/30/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7748)  |
| NY Harbor Ultra Low Sulfur Diesel | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 93752 | &nbsp;&nbsp;&nbsp; 2/27/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3450)  |
| Palladium | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 301260 | &nbsp;&nbsp;&nbsp; 3/27/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (15474)  |
| Platinum | Short | &nbsp;&nbsp;&nbsp;&nbsp; 27 | 2274750 | &nbsp;&nbsp;&nbsp; 1/28/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (246800)  |
| Rapeseed | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 28029 | &nbsp;&nbsp;&nbsp; 1/30/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(193)  |
| Rapeseed | Short | &nbsp;&nbsp;&nbsp;&nbsp; 7 | 194373 | &nbsp;&nbsp;&nbsp; 4/30/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 485  |
| Rapeseed | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 26927 | &nbsp;&nbsp;&nbsp; 7/31/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 221  |
| Robusta Coffee | Long | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 228250 | &nbsp;&nbsp;&nbsp; 1/26/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2044  |
| Robusta Coffee | Long | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 176520 | &nbsp;&nbsp;&nbsp; 3/25/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1315  |
| Silver | Long | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 857445 | &nbsp;&nbsp;&nbsp; 3/27/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 83318  |
| Silver | Short | &nbsp;&nbsp;&nbsp;&nbsp; 29 | 8288635 | &nbsp;&nbsp;&nbsp; 3/27/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (868139)  |
| Soybean Meal | Short | &nbsp;&nbsp;&nbsp;&nbsp; 9 | 286830 | &nbsp;&nbsp;&nbsp; 1/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (18460)  |
| Soybean Meal | Short | &nbsp;&nbsp;&nbsp;&nbsp; 15 | 486300 | &nbsp;&nbsp;&nbsp; 3/13/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2568)  |
| Soybean Meal | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 65920 | &nbsp;&nbsp;&nbsp; 5/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7734)  |
| Soybean Meal | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 100440 | &nbsp;&nbsp;&nbsp; 7/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2817)  |
| Soybean Meal | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 33540 | &nbsp;&nbsp;&nbsp; 8/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38  |
| Soybean Oil | Short | &nbsp;&nbsp;&nbsp;&nbsp; 9 | 281070 | &nbsp;&nbsp;&nbsp; 1/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6914)  |
| Soybean Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 63060 | &nbsp;&nbsp;&nbsp; 3/13/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1260  |
| Soybean Oil | Short | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 157650 | &nbsp;&nbsp;&nbsp; 3/13/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4373)  |
| Soybean Oil | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 95112 | &nbsp;&nbsp;&nbsp; 5/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2923)  |
| Soybean Oil | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 63516 | &nbsp;&nbsp;&nbsp; 7/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2044)  |
| Soybeans | Short | &nbsp;&nbsp;&nbsp;&nbsp; 24 | 1365300 | &nbsp;&nbsp;&nbsp; 1/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (78116)  |
| Soybeans | Long | &nbsp;&nbsp;&nbsp;&nbsp; 18 | 1031400 | &nbsp;&nbsp;&nbsp; 3/13/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7865)  |
| Soybeans | Short | &nbsp;&nbsp;&nbsp;&nbsp; 7 | 401100 | &nbsp;&nbsp;&nbsp; 3/13/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (19815)  |
| Soybeans | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 173287 | &nbsp;&nbsp;&nbsp; 5/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6757)  |
| Soybeans | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 174525 | &nbsp;&nbsp;&nbsp; 7/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6369)  |
| Sugar | Short | &nbsp;&nbsp;&nbsp;&nbsp; 46 | 783619 | &nbsp;&nbsp;&nbsp; 2/27/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 57558  |
| Sugar | Short | &nbsp;&nbsp;&nbsp;&nbsp; 8 | 131981 | &nbsp;&nbsp;&nbsp; 4/30/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10420  |
| Sugar | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 16442 | &nbsp;&nbsp;&nbsp; 6/30/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1174  |
| UK Natural Gas | Long | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 154569 | &nbsp;&nbsp;&nbsp; 12/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10838)  |
| Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 33 | 888525 | &nbsp;&nbsp;&nbsp; 3/13/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13526  |
| Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 136687 | &nbsp;&nbsp;&nbsp; 5/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 939  |
| Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 55500 | &nbsp;&nbsp;&nbsp; 7/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 596  |
| White Sugar | Short | &nbsp;&nbsp;&nbsp;&nbsp; 14 | 304850 | &nbsp;&nbsp;&nbsp; 2/13/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8406)  |
| White Sugar | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 43080 | &nbsp;&nbsp;&nbsp; 4/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2627)  |
| White Sugar | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 21285 | &nbsp;&nbsp;&nbsp; 7/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(566)  |
| WTI Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 234200 | &nbsp;&nbsp;&nbsp; 12/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7054)  |
| WTI Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 45 | 2634750 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (49091)  |
| WTI Crude Oil | Short | &nbsp;&nbsp;&nbsp;&nbsp; 19 | 1112450 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1722)  |
| WTI Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 174870 | &nbsp;&nbsp;&nbsp; 1/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2353)  |
| WTI Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 10 | 582900 | &nbsp;&nbsp;&nbsp; 1/20/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (9386)  |
| WTI Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 174270 | &nbsp;&nbsp;&nbsp; 2/19/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1773)  |
| WTI Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 290450 | &nbsp;&nbsp;&nbsp; 2/20/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4178)  |
| Zinc | Long | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 316906 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 33217  |
| Zinc | Short | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 316906 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10045)  |
| Zinc | Long | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 381909 | &nbsp;&nbsp;&nbsp; 3/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3390  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1151160)  |
| **Currency Contracts**<br>|  |  |  |  |  |
| Australian Dollar Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 192 | 12581760 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 86504  |
| British Pound Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 273 | 22582219 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (357118)  |
| Canadian Dollar Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 132 | 9454500 | &nbsp;&nbsp;&nbsp; 12/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 99350  |
| EUR/CZK<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 767271 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9288  |
| EUR/HUF<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 12 | 1093361 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 43079  |
| EUR/NOK<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 7 | 1015994 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5399)  |

---

<br> 38 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Futures Contracts (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Description** | **Type** | **Number of** <br>**Contracts** | **Notional** <br>**Amount<sup>\*</sup>** | **Expiration** <br>**Date** | **Value/Unrealized** <br>**Appreciation** <br>(Depreciation)  |
| **Currency Contracts (continued)**<br>|  |  |  |  |  |
| EUR/PLN<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 11 | $1505426 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $14812  |
| EUR/SEK<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 145046 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 755  |
| Euro Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 72 | 10450350 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 121332  |
| ICE U.S. Dollar Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 198816 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(253)  |
| Japanese Yen Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 282 | 22597012 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (452472)  |
| Mexican Peso Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 150 | 4092750 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 95279  |
| New Israeli Shekel Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 6 | 1842540 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (34941)  |
| New Zealand Dollar Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 44 | 2526700 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 85702  |
| South African Rand Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 28 | 817250 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23334  |
| Swiss Franc Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 70 | 10913000 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 164021  |
| U.S. Dollar Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 84 | 839058 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1508  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (105219)  |
| **Equity Contracts**<br>|  |  |  |  |  |
| CAC 40 10 Euro Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 11 | 1037006 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17024  |
| CAC 40 10 Euro Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 27 | 2545377 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (36348)  |
| CBOE Volatility Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 43 | 785554 | &nbsp;&nbsp;&nbsp; 12/17/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (76721)  |
| CBOE Volatility Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 22 | 437074 | &nbsp;&nbsp;&nbsp; 1/21/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (24564)  |
| CBOE Volatility Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 6 | 125030 | &nbsp;&nbsp;&nbsp; 2/18/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4631)  |
| DAX Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 14 | 9690413 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 82226  |
| DJ EURO STOXX 50 Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 329092 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4740  |
| DJ EURO STOXX 50 Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 6 | 394911 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3282)  |
| DJ EURO STOXX Index | Long | &nbsp;&nbsp;&nbsp;&nbsp; 36 | 508846 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18165  |
| DJIA Mini E-CBOT Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 954860 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (28082)  |
| E-Mini Russell 2000<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 501020 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11292  |
| E-Mini Russell 2000<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 43 | 5385965 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (163370)  |
| E-Mini S&P MidCap 400 Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 994320 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2086  |
| FTSE 100 Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 645429 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6910  |
| FTSE 100 Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 29 | 3743489 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (143271)  |
| FTSE China A50 Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 385 | 5800410 | &nbsp;&nbsp;&nbsp; 12/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 46293  |
| FTSE Taiwan Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 11 | 1001110 | &nbsp;&nbsp;&nbsp; 12/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26950  |
| FTSE/JSE Top 40 Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 16 | 968995 | &nbsp;&nbsp;&nbsp; 12/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (46979)  |
| FTSE/MIB Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 7 | 1762244 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 39279  |
| Hang Seng China Enterprises Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 15 | 879775 | &nbsp;&nbsp;&nbsp; 12/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5684)  |
| Hang Seng Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 18 | 2993334 | &nbsp;&nbsp;&nbsp; 12/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(187)  |
| IBEX 35 Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 11 | 2090383 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (57878)  |
| KOPSI 200 Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 27 | 2551474 | &nbsp;&nbsp;&nbsp; 12/11/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 439785  |
| Mini TOPIX Index | Short | &nbsp;&nbsp;&nbsp;&nbsp; 58 | 1255354 | &nbsp;&nbsp;&nbsp; 12/11/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (95890)  |
| MSCI Emerging Markets Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 15 | 1033200 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18054  |
| MSCI Singapore Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 31 | 1060126 | &nbsp;&nbsp;&nbsp; 12/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6628  |
| NASDAQ 100 E-Mini Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 51 | 25991640 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 709396  |
| NIKKEI 225 Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 27 | 997838 | &nbsp;&nbsp;&nbsp; 12/11/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (141191)  |
| NIKKEI 225 Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 321827 | &nbsp;&nbsp;&nbsp; 12/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 573  |
| NIKKEI 225 Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 965480 | &nbsp;&nbsp;&nbsp; 12/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (136438)  |
| NSE IFSC Nifty 50 Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 12 | 633288 | &nbsp;&nbsp;&nbsp; 12/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1429  |
| S&P 500 E-Mini Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 102 | 34983450 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 772760  |
| S&P 500 E-Mini Index | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 1028925 | &nbsp;&nbsp;&nbsp; 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (20321)  |
| S&P/TSX 60 Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 15 | 3954765 | &nbsp;&nbsp;&nbsp; 12/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 206285  |
| SPI 200 Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 141218 | &nbsp;&nbsp;&nbsp; 12/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4869  |
| TOPIX Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 23 | 4978128 | &nbsp;&nbsp;&nbsp; 12/11/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 295428  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1725335  |
| **Interest Rate Contracts**<br>|  |  |  |  |  |
| 3 Month EURIBOR<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 20 | 5682843 | &nbsp;&nbsp;&nbsp; 3/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5642  |
| 3 Month EURIBOR<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 17 | 4831896 | &nbsp;&nbsp;&nbsp; 6/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 448  |
| 3 Month EURIBOR<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 14 | 3979208 | &nbsp;&nbsp;&nbsp; 9/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2263  |
| 3 Month EURIBOR<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 53 | 15060303 | &nbsp;&nbsp;&nbsp; 12/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (20100)  |
| 3 Month EURIBOR<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 20 | 5683133 | &nbsp;&nbsp;&nbsp; 12/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1765)  |

---

<br> franklintempleton.com Semiannual Report 39

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Futures Contracts (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Description** | **Type** | **Number of** <br>**Contracts** | **Notional** <br>**Amount<sup>\*</sup>** | **Expiration** <br>**Date** | **Value/Unrealized** <br>**Appreciation** <br>(Depreciation)  |
| **Interest Rate Contracts (continued)**<br>|  |  |  |  |  |
| 3 Month EURIBOR<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 8 | $2272325 | &nbsp;&nbsp;&nbsp; 3/15/27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $(3185)  |
| 3 Month EURIBOR<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 8 | 2271165 | &nbsp;&nbsp;&nbsp; 6/14/27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 500  |
| 3 Month EURIBOR<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 1418753 | &nbsp;&nbsp;&nbsp; 9/13/27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 533  |
| 3 Month EURIBOR<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 1134365 | &nbsp;&nbsp;&nbsp; 12/13/27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 106  |
| 3 Month SOFR<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 83 | 20013375 | &nbsp;&nbsp;&nbsp; 6/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7498)  |
| 3 Month SOFR<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 93 | 22481588 | &nbsp;&nbsp;&nbsp; 9/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (17549)  |
| 3 Month SOFR<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 84 | 20342700 | &nbsp;&nbsp;&nbsp; 12/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (25887)  |
| 3 Month SOFR<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 125 | 30298438 | &nbsp;&nbsp;&nbsp; 3/16/27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (12627)  |
| 3 Month SOFR<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 122 | 29571275 | &nbsp;&nbsp;&nbsp; 3/16/27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (31950)  |
| 3 Month SOFR<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 81 | 19639463 | &nbsp;&nbsp;&nbsp; 6/15/27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (26045)  |
| 3 Month SOFR<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 76 | 18426200 | &nbsp;&nbsp;&nbsp; 9/14/27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (27226)  |
| 3 Month SOFR<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 70 | 16967125 | &nbsp;&nbsp;&nbsp; 12/14/27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (17981)  |
| 3 Month SOFR<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 65 | 15748688 | &nbsp;&nbsp;&nbsp; 3/14/28 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13414  |
| 3 Month SONIA<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 13 | 4151813 | &nbsp;&nbsp;&nbsp; 6/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3239)  |
| 3 Month SONIA<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 14 | 4477210 | &nbsp;&nbsp;&nbsp; 9/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5929)  |
| 3 Month SONIA<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 15 | 4799990 | &nbsp;&nbsp;&nbsp; 12/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6800)  |
| 3 Month SONIA<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 15 | 4800735 | &nbsp;&nbsp;&nbsp; 3/16/27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (9396)  |
| ASX 90 Day Bank Accepted Bill<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 10 | 6490942 | &nbsp;&nbsp;&nbsp; 3/12/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5729)  |
| ASX 90 Day Bank Accepted Bill<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 8 | 5192246 | &nbsp;&nbsp;&nbsp; 6/11/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5300)  |
| ASX 90 Day Bank Accepted Bill<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 3244837 | &nbsp;&nbsp;&nbsp; 9/10/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3662)  |
| ASX 90 Day Bank Accepted Bill<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 2595552 | &nbsp;&nbsp;&nbsp; 12/10/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3849)  |
| ASX 90 Day Bank Accepted Bill<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 1297618 | &nbsp;&nbsp;&nbsp; 3/11/27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1879)  |
| Australian 3 Yr. Bond<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 39 | 2704626 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (33661)  |
| Australian 10 Yr. Bond<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 33 | 2415675 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (48264)  |
| Australian 10 Yr. Bond<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 51 | 3733316 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 60096  |
| Canadian 2 Yr. Bond<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 33 | 2501424 | &nbsp;&nbsp;&nbsp; 3/20/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(841)  |
| Canadian 10 Yr. Bond<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 88 | 7743420 | &nbsp;&nbsp;&nbsp; 3/20/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17755  |
| Euro-BOBL<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 261 | 35710560 | &nbsp;&nbsp;&nbsp; 12/08/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (17129)  |
| Euro-Bund<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 110 | 16445097 | &nbsp;&nbsp;&nbsp; 12/08/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (68002)  |
| Euro-Buxl<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 39 | 5148315 | &nbsp;&nbsp;&nbsp; 12/08/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (29217)  |
| Euro-OAT<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 10 | 1425061 | &nbsp;&nbsp;&nbsp; 12/08/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10859  |
| Euro-Schatz<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 97 | 12036834 | &nbsp;&nbsp;&nbsp; 12/08/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10507)  |
| Euro-Schatz<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 71 | 8810466 | &nbsp;&nbsp;&nbsp; 12/08/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3920  |
| Euro-SCHATZ<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 24 | 2978186 | &nbsp;&nbsp;&nbsp; 3/06/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 255  |
| Japanese 10 Yr. Bond<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 9 | 778551 | &nbsp;&nbsp;&nbsp; 12/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5335)  |
| Japanese 10 Yr. Bond<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 2596324 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (32761)  |
| Japanese 10 Yr. Bond<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 9 | 7788971 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 101866  |
| Korean 3 Yr. Bond<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 18 | 1292000 | &nbsp;&nbsp;&nbsp; 12/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16365  |
| Korean 10 Yr. Bond<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 25 | 1932139 | &nbsp;&nbsp;&nbsp; 12/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 84898  |
| Long Gilt<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 68 | 8248248 | &nbsp;&nbsp;&nbsp; 3/27/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 64715  |
| U.S. Treasury 2 Yr. Note | Long | &nbsp;&nbsp;&nbsp;&nbsp; 73 | 15246734 | &nbsp;&nbsp;&nbsp; 3/31/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4655)  |
| U.S. Treasury 2 Yr. Note<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 292 | 60986937 | &nbsp;&nbsp;&nbsp; 3/31/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15587  |
| U.S. Treasury 5 Yr. Note<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 19 | 2085547 | &nbsp;&nbsp;&nbsp; 3/31/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(989)  |
| U.S. Treasury 5 Yr. Note<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 98 | 10757031 | &nbsp;&nbsp;&nbsp; 3/31/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7540)  |
| U.S. Treasury 10 Yr. Note<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 71 | 8047406 | &nbsp;&nbsp;&nbsp; 3/20/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7399)  |
| U.S. Treasury 10 Yr. Note<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 115 | 13083140 | &nbsp;&nbsp;&nbsp; 3/20/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (13184)  |
| U.S. Treasury Long Bond<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 48 | 5637000 | &nbsp;&nbsp;&nbsp; 3/20/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3031)  |
| U.S. Treasury Long Bond<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 25 | 2935938 | &nbsp;&nbsp;&nbsp; 3/20/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7219)  |
| U.S. Treasury Ultra Bond<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 28 | 3386250 | &nbsp;&nbsp;&nbsp; 3/20/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6651  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (121457)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Futures Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Futures Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Futures Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Futures Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Futures Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $347499 |

---

<sup>\*</sup>As of period end.

<sup>a</sup>A portion or all of the contracts are owned by K2 Holdings Investment Corp., a wholly-owned subsidiary of the Fund. See Note 1(g).

<br> 40 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

At November 30, 2025, the Fund had the following forward exchange contracts outstanding. See Note 1(d).

**Forward Exchange Contracts** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Currency** | **Counterparty<sup>a</sup>** | **Type** | **Quantity** | **Contract** <br>**Amount<sup>\*</sup>** | **Settlement** <br>**Date** | **Unrealized** <br>**Appreciation** | **Unrealized** <br>**Depreciation**  |
| **OTC Forward Exchange Contracts**  | **OTC Forward Exchange Contracts**  | **OTC Forward Exchange Contracts**  | **OTC Forward Exchange Contracts**  |  |  |  |  |
| Australian Dollar<sup>b</sup> | MSCO | Buy | 3250000 | 2146109 | &nbsp;&nbsp; 12/17/25 | $2208 | $(19234)  |
| Australian Dollar<sup>b</sup> | MSCO | Sell | 6148000 | 4018028 | &nbsp;&nbsp; 12/17/25 | 12802 | (22343)  |
| British Pound | GSCO | Buy | 20000 | 27123 | &nbsp;&nbsp; 12/17/25 |  | (633)  |
| British Pound | GSCO | Sell | 62000 | 83960 | &nbsp;&nbsp; 12/17/25 | 1840 | —  |
| British Pound | JPHQ | Buy | 20000 | 27063 | &nbsp;&nbsp; 12/17/25 |  | (573)  |
| British Pound | JPHQ | Sell | 2344000 | 3169522 | &nbsp;&nbsp; 12/17/25 | 64874 | —  |
| British Pound<sup>b</sup> | MSCO | Buy | 10497000 | 14137277 | &nbsp;&nbsp; 12/17/25 | 15371 | (249275)  |
| British Pound<sup>b</sup> | MSCO | Sell | 8580000 | 11375744 | &nbsp;&nbsp; 12/17/25 | 58129 | (46679)  |
| Canadian Dollar<sup>b</sup> | MSCO | Buy | 930000 | 669511 | &nbsp;&nbsp; 12/17/25 | 1932 | (5173)  |
| Canadian Dollar<sup>b</sup> | MSCO | Sell | 8961000 | 6493922 | &nbsp;&nbsp; 12/17/25 | 74699 | (608)  |
| Euro | GSCO | Buy | 1540000 | 1802070 | &nbsp;&nbsp; 12/17/25 | 1674 | (15597)  |
| Euro | GSCO | Sell | 390000 | 453538 | &nbsp;&nbsp; 12/17/25 | 1845 | (1150)  |
| Euro | JPHQ | Buy | 1210000 | 1410484 | &nbsp;&nbsp; 12/17/25 | 1253 | (6766)  |
| Euro | JPHQ | Sell | 3524000 | 4135757 | &nbsp;&nbsp; 12/17/25 | 47542 | (3619)  |
| Euro<sup>b</sup> | MSCO | Buy | 12293000 | 14434955 | &nbsp;&nbsp; 12/17/25 | 8042 | (169173)  |
| Euro<sup>b</sup> | MSCO | Sell | 8169000 | 9563147 | &nbsp;&nbsp; 12/17/25 | 83003 | (5159)  |
| Japanese Yen<sup>b</sup> | MSCO | Buy | 1137458000 | 7529022 | &nbsp;&nbsp; 12/17/25 | 10419 | (240015)  |
| Japanese Yen<sup>b</sup> | MSCO | Sell | 2064527000 | 13864626 | &nbsp;&nbsp; 12/17/25 | 617073 | (1166)  |
| Mexican Peso<sup>b</sup> | MSCO | Buy | 35399000 | 1886969 | &nbsp;&nbsp; 12/17/25 | 43600 | —  |
| Mexican Peso<sup>b</sup> | MSCO | Sell | 1728000 | 93088 | &nbsp;&nbsp; 12/17/25 |  | (1152)  |
| New Zealand Dollar<sup>b</sup> | MSCO | Buy | 338000 | 194828 | &nbsp;&nbsp; 12/17/25 | 1987 | (2714)  |
| New Zealand Dollar<sup>b</sup> | MSCO | Sell | 3704000 | 2209250 | &nbsp;&nbsp; 12/17/25 | 82622 | (471)  |
| Swiss Franc<sup>b</sup> | MSCO | Buy | 6713000 | 8501349 | &nbsp;&nbsp; 12/17/25 | 491 | (125485)  |
| Swiss Franc<sup>b</sup> | MSCO | Sell | 2545000 | 3173877 | &nbsp;&nbsp; 12/17/25 | 9019 | (10745)  |
| Canadian Dollar | BNYM | Sell | 192000 | 139741 | &nbsp;&nbsp; 12/29/25 | 2097 | —  |
| Euro | BNYM | Sell | 106000 | 125351 | &nbsp;&nbsp; 12/29/25 | 2186 | —  |
| Brazilian Real | MSCO | Buy | 2366755 | 425400 | &nbsp;&nbsp; 1/15/26 | 13660 | —  |
| Brazilian Real | MSCO | Sell | 5170150 | 943667 | &nbsp;&nbsp; 1/15/26 | 94 | (15549)  |
| Chilean Peso | JPHQ | Buy | 3171730619 | 3336817 | &nbsp;&nbsp; 1/22/26 | 81931 | —  |
| Chilean Peso | JPHQ | Sell | 652912500 | 690000 | &nbsp;&nbsp; 1/22/26 |  | (13762)  |
| Chinese Yuan | JPHQ | Buy | 15666908 | 2212151 | &nbsp;&nbsp; 1/22/26 | 8472 | —  |
| Colombian Peso | JPHQ | Sell | 13559386035 | 3428586 | &nbsp;&nbsp; 1/22/26 |  | (157113)  |
| Euro | JPHQ | Buy | 2715327 | 3170760 | &nbsp;&nbsp; 1/22/26 | 536 | (12300)  |
| Euro | JPHQ | Sell | 3450604 | 4052101 | &nbsp;&nbsp; 1/22/26 | 37688 | —  |
| Hungarian Forint | JPHQ | Buy | 728560060 | 2178575 | &nbsp;&nbsp; 1/22/26 | 28535 | —  |
| Indian Rupee | JPHQ | Buy | 118077697 | 1322242 | &nbsp;&nbsp; 1/22/26 |  | (6140)  |
| Indonesian Rupiah | JPHQ | Buy | 3434777155 | 206463 | &nbsp;&nbsp; 1/22/26 |  | (328)  |
| Indonesian Rupiah | JPHQ | Sell | 46281856246 | 2783743 | &nbsp;&nbsp; 1/22/26 | 6889 | (705)  |
| Japanese Yen | JPHQ | Buy | 47029693 | 311025 | &nbsp;&nbsp; 1/22/26 |  | (8173)  |
| Kazakhstan Tenge | CITI | Sell | 94153367 | 169021 | &nbsp;&nbsp; 1/22/26 |  | (10842)  |
| Malaysian Ringgit | GSCO | Buy | 1382271 | 330000 | &nbsp;&nbsp; 1/22/26 | 5103 | —  |
| Malaysian Ringgit | GSCO | Sell | 1436367 | 340210 | &nbsp;&nbsp; 1/22/26 |  | (8008)  |
| Mexican Peso | JPHQ | Buy | 55993577 | 3010851 | &nbsp;&nbsp; 1/22/26 | 30846 | —  |
| Mexican Peso | JPHQ | Sell | 7933600 | 429211 | &nbsp;&nbsp; 1/22/26 |  | (1760)  |
| Peruvian Nuevo Sol | JPHQ | Buy | 1781784 | 527374 | &nbsp;&nbsp; 1/22/26 | 1769 | —  |
| Peruvian Nuevo Sol | JPHQ | Sell | 15835705 | 4583656 | &nbsp;&nbsp; 1/22/26 |  | (119136)  |
| Polish Zloty | JPHQ | Buy | 8223655 | 2250000 | &nbsp;&nbsp; 1/22/26 | 680 | —  |
| Polish Zloty | JPHQ | Sell | 598262 | 163645 | &nbsp;&nbsp; 1/22/26 |  | (89)  |
| South African Rand | JPHQ | Buy | 87460076 | 5039883 | &nbsp;&nbsp; 1/22/26 | 50020 | —  |
| South African Rand | JPHQ | Sell | 52929139 | 3037398 | &nbsp;&nbsp; 1/22/26 |  | (42912)  |
| South Korean Won | JPHQ | Buy | 4326638130 | 3062652 | &nbsp;&nbsp; 1/22/26 |  | (112516)  |
| South Korean Won | JPHQ | Sell | 4344780000 | 3020000 | &nbsp;&nbsp; 1/22/26 | 57495 | —  |

---

<br> franklintempleton.com Semiannual Report 41

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Forward Exchange Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Currency** | **Counterparty<sup>a</sup>** | **Type** | **Quantity** | **Contract** <br>**Amount<sup>\*</sup>** | **Settlement** <br>**Date** | **Unrealized** <br>**Appreciation** | **Unrealized** <br>**Depreciation**  |
| **OTC Forward Exchange Contracts (continued)** | **OTC Forward Exchange Contracts (continued)** | **OTC Forward Exchange Contracts (continued)** | **OTC Forward Exchange Contracts (continued)** |  |  |  |  |
| Thai Baht | JPHQ | Buy | 71753660 | 2200000 | &nbsp;&nbsp; 1/22/26 | $38044 | $—  |
| Thai Baht | JPHQ | Sell | 71487751 | 2212491 | &nbsp;&nbsp; 1/22/26 |  | (17260)  |
| Turkish Lira | JPHQ | Buy | 20377143 | 449927 | &nbsp;&nbsp; 1/22/26 | 9206 | —  |
| Turkish Lira | JPHQ | Sell | 1326350 | 29204 | &nbsp;&nbsp; 1/22/26 |  | (681)  |
| Australian Dollar | MSCO | Sell | 600000 | 391781 | &nbsp;&nbsp; 1/30/26 |  | (1374)  |
| Chinese Yuan | MSCO | Sell | 600000 | 84861 | &nbsp;&nbsp; 1/30/26 |  | (348)  |
| Indonesian Rupiah | MSCO | Sell | 10000000000 | 598378 | &nbsp;&nbsp; 1/30/26 |  | (1713)  |
| Japanese Yen | MSCO | Sell | 177000000 | 1160483 | &nbsp;&nbsp; 1/30/26 | 20272 | (363)  |
| Malaysian Ringgit | MSCO | Sell | 650000 | 154520 | &nbsp;&nbsp; 1/30/26 |  | (3097)  |
| Philippine Peso | MSCO | Sell | 15000000 | 252984 | &nbsp;&nbsp; 1/30/26 |  | (2438)  |
| Singapore Dollar | MSCO | Sell | 400000 | 310424 | &nbsp;&nbsp; 1/30/26 | 315 | —  |
| South Korean Won | MSCO | Buy | 420000000 | 291980 | &nbsp;&nbsp; 1/30/26 |  | (5492)  |
| South Korean Won | MSCO | Sell | 815000000 | 570957 | &nbsp;&nbsp; 1/30/26 | 15034 | —  |
| Taiwan Dollar | MSCO | Sell | 19000000 | 617277 | &nbsp;&nbsp; 1/30/26 | 9277 | —  |
| Thai Baht | MSCO | Sell | 13500000 | 415836 | &nbsp;&nbsp; 1/30/26 |  | (5469)  |
| Brazilian Real | JPHQ | Buy | 10044022 | 1827149 | &nbsp;&nbsp; 2/03/26 | 27995 | —  |
| Chinese Yuan | MSCO | Buy | 5712808 | 809392 | &nbsp;&nbsp; 2/24/26 | 3011 | —  |
| Chinese Yuan | MSCO | Sell | 23605176 | 3332652 | &nbsp;&nbsp; 2/24/26 |  | (24178)  |
| British Pound | MSCO | Sell | 1850000 | 2427359 | &nbsp;&nbsp; 2/27/26 |  | (22828)  |
| Danish Krone | MSCO | Sell | 2500000 | 388238 | &nbsp;&nbsp; 2/27/26 |  | (2241)  |
| Euro | MSCO | Sell | 1650000 | 1912040 | &nbsp;&nbsp; 2/27/26 |  | (10784)  |
| Norwegian Krone | MSCO | Sell | 6100000 | 595265 | &nbsp;&nbsp; 2/27/26 |  | (7148)  |
| Swedish Krona | MSCO | Sell | 6600000 | 694037 | &nbsp;&nbsp; 2/27/26 |  | (8584)  |
| Swiss Franc | MSCO | Sell | 1000000 | 1248668 | &nbsp;&nbsp; 2/27/26 |  | (8755)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Forward Exchange Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Forward Exchange Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Forward Exchange Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Forward Exchange Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Forward Exchange Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Forward Exchange Contracts | $1591580 | $(1559816)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) |  | $31764 |

---

<sup>\*</sup>In U.S. dollars unless otherwise indicated.

<sup>a</sup> May be comprised of multiple contracts with the same counterparty, currency and settlement date.

<sup>b</sup> A portion or all of the contracts are owned by K2 Holdings Investment Corp., a wholly-owned subsidiary of the Fund. See Note 1(g).

<br> 42 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

At November 30, 2025, the Fund had the following credit default swap contracts outstanding. See Note 1(d).

**Credit Default Swap Contracts** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Description** | **Annual**<br>**Payment**<br>**Rate** <br>**Received** <br>(Paid) | **Payment** <br>**Frequency** | **Maturity**<br>**Date** | **Notional**<br>**Amount<sup>a</sup>** |  | **Value** | **Upfront**<br>**Payments**<br>(Receipts) | **Unrealized**<br>**Appreciation** <br>(Depreciation) | **Rating<sup>b</sup>**  |
| **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** |
| **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** |
| **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 614000 |  | $(12915) | $(7675) | &nbsp;&nbsp;&nbsp;&nbsp; $(5240) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 250000 |  | (5258) | (7466) | &nbsp;&nbsp;&nbsp;&nbsp; 2208 |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 307000 |  | (6457) | (7156) | &nbsp;&nbsp;&nbsp;&nbsp; 699 |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 246000 |  | (5174) | (3075) | &nbsp;&nbsp;&nbsp;&nbsp; (2099) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 49000 |  | (1031) | (1236) | &nbsp;&nbsp;&nbsp;&nbsp; 205 |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 123000 |  | (2587) | (1230) | &nbsp;&nbsp;&nbsp;&nbsp; (1357) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 3000 |  | (63) | (71) | &nbsp;&nbsp;&nbsp;&nbsp; 8 |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/27 | 245000 |  | (9122) | (4385) | &nbsp;&nbsp;&nbsp;&nbsp; (4737) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/27 | 316000 |  | (11766) | (2001) | &nbsp;&nbsp;&nbsp;&nbsp; (9765) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/27 | 374000 |  | (13925) | (1778) | &nbsp;&nbsp;&nbsp;&nbsp; (12147) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/27 | 27000 |  | (1005) | (102) | &nbsp;&nbsp;&nbsp;&nbsp;(903) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/27 | 347000 |  | (12920) | 434 | &nbsp;&nbsp;&nbsp;&nbsp; (13354) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/27 | 56000 |  | (2085) | 560 | &nbsp;&nbsp;&nbsp;&nbsp; (2645) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/27 | 230000 |  | (8564) | 2875 | &nbsp;&nbsp;&nbsp;&nbsp; (11439) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 12/20/29 | 33000 |  | (825) | 1567 | &nbsp;&nbsp;&nbsp;&nbsp; (2392) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 12/20/29 | 55000 |  | (1375) | 2750 | &nbsp;&nbsp;&nbsp;&nbsp; (4125) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 145000 |  | (3050) | (6709) | &nbsp;&nbsp;&nbsp;&nbsp; 3659 |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 73000 |  | (1535) | (3169) | &nbsp;&nbsp;&nbsp;&nbsp; 1634 |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 68000 |  | (1430) | (2272) | &nbsp;&nbsp;&nbsp;&nbsp; 842 |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 145000 |  | (3050) | (5568) | &nbsp;&nbsp;&nbsp;&nbsp; 2518 |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 145000 |  | (3050) | (4860) | &nbsp;&nbsp;&nbsp;&nbsp; 1810 |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 40000 |  | (841) | (1355) | &nbsp;&nbsp;&nbsp;&nbsp; 514 |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 145000 |  | (12136) | (1989) | &nbsp;&nbsp;&nbsp;&nbsp; (10147) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 116000 |  | (9709) | (1335) | &nbsp;&nbsp;&nbsp;&nbsp; (8374) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 39000 |  | (3264) | (1011) | &nbsp;&nbsp;&nbsp;&nbsp; (2253) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 29000 |  | (2427) | (978) | &nbsp;&nbsp;&nbsp;&nbsp; (1449) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 48000 |  | (4018) | (557) | &nbsp;&nbsp;&nbsp;&nbsp; (3461) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 29000 |  | (2427) | (421) | &nbsp;&nbsp;&nbsp;&nbsp; (2006) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 29000 |  | (2427) | (414) | &nbsp;&nbsp;&nbsp;&nbsp; (2013) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 29000 |  | (2427) | (371) | &nbsp;&nbsp;&nbsp;&nbsp; (2056) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 29000 |  | (2427) | (283) | &nbsp;&nbsp;&nbsp;&nbsp; (2144) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 48000 |  | (4018) | (277) | &nbsp;&nbsp;&nbsp;&nbsp; (3741) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 19000 |  | (1590) | (258) | &nbsp;&nbsp;&nbsp;&nbsp; (1332) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 19000 |  | (1590) | (88) | &nbsp;&nbsp;&nbsp;&nbsp; (1502) |  |
| Government of Egypt | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 365000 |  | 1046 | 137787 | &nbsp;&nbsp;&nbsp;&nbsp; (136741) |  |
| Government of Italy | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 350000 |  | (1873) | (4524) | &nbsp;&nbsp;&nbsp;&nbsp; 2651 |  |
| Jaguar Land Rover | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 151000 | EUR | (19987) | (16455) | &nbsp;&nbsp;&nbsp;&nbsp; (3532)  |  |
| Jaguar Land Rover | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 47000 | EUR | (6221) | (6495) | &nbsp;&nbsp;&nbsp;&nbsp; 274 |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 570000 |  | (49531) | (35278) | &nbsp;&nbsp;&nbsp;&nbsp; (14253) |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 347000 |  | (30153) | (17211) | &nbsp;&nbsp;&nbsp;&nbsp; (12942) |  |

---

<br> franklintempleton.com Semiannual Report 43

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Credit Default Swap Contracts (continued)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Description** | **Annual**<br>**Payment**<br>**Rate** <br>**Received** <br>(Paid) | **Payment** <br>**Frequency** | **Maturity**<br>**Date** | **Notional**<br>**Amount<sup>a</sup>** |  | **Value** | **Upfront**<br>**Payments**<br>(Receipts) | **Unrealized**<br>**Appreciation** <br>(Depreciation) | **Rating<sup>b</sup>**  |
| **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** |
| **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** |
| **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 139000 |  | $(12079) | $(5739) | &nbsp;&nbsp;&nbsp;&nbsp; $(6340) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 32000 |  | 2 | 1040 | &nbsp;&nbsp;&nbsp;&nbsp; (1038) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 21000 |  | 1 | 409 | &nbsp;&nbsp;&nbsp;&nbsp;(408) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 21000 |  | 1 | 1155 | &nbsp;&nbsp;&nbsp;&nbsp; (1154) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 21000 |  | 1 | 1207 | &nbsp;&nbsp;&nbsp;&nbsp; (1206) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 54000 |  | 3 | 1890 | &nbsp;&nbsp;&nbsp;&nbsp; (1887) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 27000 |  | 1 | 2533 | &nbsp;&nbsp;&nbsp;&nbsp; (2532) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/26 | 50000 |  | 3 | 4253 | &nbsp;&nbsp;&nbsp;&nbsp; (4250) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 21000 |  | 2287 | 8190 | &nbsp;&nbsp;&nbsp;&nbsp; (5903) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 24000 |  | 2613 | 9300 | &nbsp;&nbsp;&nbsp;&nbsp; (6687) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 30000 |  | 3267 | 10202 | &nbsp;&nbsp;&nbsp;&nbsp; (6935) |  |
| Kohl's Corp. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 36000 |  | (1641) | 10530 | &nbsp;&nbsp;&nbsp;&nbsp; (12171) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 37000 |  | 4029 | 12395 | &nbsp;&nbsp;&nbsp;&nbsp; (8366) |  |
| Kohl's Corp. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 48000 |  | (2188) | 12900 | &nbsp;&nbsp;&nbsp;&nbsp; (15088) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 55000 |  | 5989 | 18035 | &nbsp;&nbsp;&nbsp;&nbsp; (12046) |  |
| Kohl's Corp. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 102000 |  | (4649) | 32130 | &nbsp;&nbsp;&nbsp;&nbsp; (36779) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 196000 |  | 21342 | 59488 | &nbsp;&nbsp;&nbsp;&nbsp; (38146) |  |
| Kohl's Corp. | (5.00)% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 204000 |  | (9298) | 61200 | &nbsp;&nbsp;&nbsp;&nbsp; (70498) |  |
| Lincoln National Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/27 | 32000 |  | (251) | (207) | &nbsp;&nbsp;&nbsp;&nbsp;(44) |  |
| Lincoln National Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/28 | 435000 |  | (3718) | (2169) | &nbsp;&nbsp;&nbsp;&nbsp; (1549) |  |
| Lincoln National Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/28 | 100000 |  | (855) | (451) | &nbsp;&nbsp;&nbsp;&nbsp;(404) |  |
| Lincoln National Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 6/20/27 | 362000 |  | (2839) | 1572 | &nbsp;&nbsp;&nbsp;&nbsp; (4411) |  |
| MetLife Inc. | (1.00)% | &nbsp;&nbsp; Quarterly  | 12/20/30 | 1400000 |  | (22471) | (27521) | &nbsp;&nbsp;&nbsp;&nbsp; 5050 |  |
|  People's Republic of China | (1.00)% | &nbsp;&nbsp; Quarterly  | 12/20/30 | 470000 |  | (11377) | (12034) | &nbsp;&nbsp;&nbsp;&nbsp; 657 |  |
| Stellantis NV | (5.00)% | &nbsp;&nbsp; Quarterly  | 12/20/30 | 730000 | EUR | (138032) | (129104) | &nbsp;&nbsp;&nbsp;&nbsp; (8928) |  |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly  | 12/20/30 | 750000 |  | 50692 | 41995 | &nbsp;&nbsp;&nbsp;&nbsp; 8697 |  |
| WPP Finance | (1.00)% | &nbsp;&nbsp; Quarterly  | 12/20/30 | 608000 | EUR | 5826 | 10033 | &nbsp;&nbsp;&nbsp;&nbsp; (4207) |  |
| **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** |
| **Single Name**<br>|  |  |  |  |  |  |  |  |  |
| Virgin Media | 5.00% | &nbsp;&nbsp; Quarterly  | 6/20/30 | 97000 | EUR | 6800 | 7519 | &nbsp;&nbsp;&nbsp;&nbsp;(719) | B+  |
| **Traded Index**<br>|  |  |  |  |  |  |  |  |  |
| <sup>e</sup>CDX.EM.44 | 1.00% | &nbsp;&nbsp; Quarterly  | 12/20/30 | 1000000 |  | (15760) | (20980) | &nbsp;&nbsp;&nbsp;&nbsp; 5220 | Investment Grade  |
| <sup>e</sup>CDX.NA.HY.45 | 5.00% | &nbsp;&nbsp; Quarterly  | 12/20/30 | 3000000 |  | 223377 | 221937 | &nbsp;&nbsp;&nbsp;&nbsp; 1440 | Non-Investment Grade  |
| <sup>e</sup>CDX.NA.IG.45 | 1.00% | &nbsp;&nbsp; Quarterly  | 12/20/30 | 17000000 |  | 382390 | 391820 | &nbsp;&nbsp;&nbsp;&nbsp; (9430) | Investment Grade  |
| <sup>e</sup>ITRX.EUR | 1.00% | &nbsp;&nbsp; Quarterly  | 12/20/30 | 8000000 | EUR | 208105 | 206277 | &nbsp;&nbsp;&nbsp;&nbsp; 1828 | Investment Grade  |
| <sup>e</sup>ITRX.EUR.XOVER | 5.00% | &nbsp;&nbsp; Quarterly  | 12/20/30 | 5000000 | EUR | 619534 | 625297 | &nbsp;&nbsp;&nbsp;&nbsp; (5763) | Non-Investment Grade  |
| &nbsp;&nbsp;&nbsp; Total Centrally Cleared Swap Contracts  | &nbsp;&nbsp;&nbsp; Total Centrally Cleared Swap Contracts  | &nbsp;&nbsp;&nbsp; Total Centrally Cleared Swap Contracts  | &nbsp;&nbsp;&nbsp; Total Centrally Cleared Swap Contracts  |  |  | $1047898 | $1553022 | &nbsp;&nbsp;&nbsp;&nbsp; $(505124) |  |

---

<br> 44 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Credit Default Swap Contracts (continued)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Description**  | **Annual** <br>**Payment** <br>**Rate** <br>**Received** <br>(Paid)  | **Payment** <br>**Frequency**  | **Counterparty** | **Maturity** <br>**Date**  | **Notional** <br>**Amount<sup>a</sup>**  |  | **Value**  | **Upfront** <br>**Payments** <br>(Receipts)  | **Unrealized** <br>**Appreciation** <br>(Depreciation)  | **Rating<sup>b</sup>**  |
| **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  |
| **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  |
| **Single Name**  | **Single Name**  | **Single Name**  | **Single Name**  | **Single Name**  | **Single Name**  | **Single Name**  | **Single Name**  | **Single Name**  | **Single Name**  | **Single Name**  |
| Alstom SA | (1.00)% | Quarterly  | MSCO | 12/20/30 | 788000 | EUR | $(12441) | $(5598) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $(6843) |  |
| American Airlines Inc. | (5.00)% | Quarterly  | BZWS | 6/20/26 | 50000 |  | (1538) | (389) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1149) |  |
| American Airlines Inc. | (5.00)% | Quarterly  | BZWS | 6/20/27 | 77000 |  | (3616) | (252) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3364) |  |
| American Airlines Inc. | (5.00)% | Quarterly  | BZWS | 6/20/27 | 97000 |  | (4555) | (190) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4365) |  |
| American Airlines Inc. | (5.00)% | Quarterly  | BZWS | 6/20/27 | 82000 |  | (3850) | (107) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3743) |  |
| American Airlines Inc. | (5.00)% | Quarterly  | BZWS | 6/20/27 | 41000 |  | (1925) | (107) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1818) |  |
| American Airlines Inc. | (5.00)% | Quarterly  | BZWS | 6/20/27 | 82000 |  | (3850) | (54) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3796) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | Quarterly  | JPHQ | 12/20/30 | 99000 |  | (8687) | (4304) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4383) |  |
| Bayerische | (1.00)% | Quarterly  | MSCO | 12/20/25 | 146000 | EUR | (426) | 5 | &nbsp;&nbsp;&nbsp;&nbsp;(431) |  |
| &nbsp;&nbsp; Government of <br>Argentina | (5.00)% | Quarterly  | BZWS | 12/20/30 | 174000 |  | 14752 | 49789 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (35037) |  |
| &nbsp;&nbsp; Government of <br>Argentina | (5.00)% | Quarterly | BZWS | 12/20/30 | 299000 |  | 25266 | 92311 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (67045) |  |
| &nbsp;&nbsp; Government of <br>Argentina | (5.00)% | Quarterly | BZWS | 12/20/30 | 292000 |  | 24674 | 112975 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (88301) |  |
| &nbsp;&nbsp; Government of <br>Argentina | (5.00)% | Quarterly | GSCO | 12/20/30 | 349000 |  | 29588 | 98550 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (68962) |  |
| &nbsp;&nbsp; Government of <br>Argentina | (5.00)% | Quarterly | GSCO | 12/20/30 | 373000 |  | 31519 | 147007 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (115488) |  |
| Government of Egypt | (1.00)% | Quarterly | CITI | 6/20/26 | 197000 |  | 181 | 12125 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (11944) |  |
| Government of Korea | (1.00)% | Quarterly | GSCO | 12/20/30 | 3028000 |  | (115184) | (109899) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5285) |  |
| &nbsp;&nbsp; Kingdom of Saudia <br>Arabia | (1.00)% | Quarterly | BZWS | 12/20/30 | 1025000 |  | (18233) | (14259) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3974) |  |
| &nbsp;&nbsp; Kingdom of Saudia <br>Arabia | (1.00)% | Quarterly | GSCO | 12/20/30 | 3900000 |  | (69373) | (53351) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (16022) |  |
|  Nippon Paper Industries Co. | (1.00)% | Quarterly | GSCO | 12/20/30 | 127269000 | JPY | 30140 | 29905 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 235 |  |
|  Nippon Paper Industries Co. | (1.00)% | Quarterly | JPHQ | 12/20/25 | 7366000 | JPY | (112) | (1) | &nbsp;&nbsp;&nbsp;&nbsp;(111) |  |
|  Nippon Paper Industries Co. | (1.00)% | Quarterly | MSCO | 12/20/25 | 21750000 | JPY | (329) | 10 | &nbsp;&nbsp;&nbsp;&nbsp;(339) |  |
|  Nippon Paper Industries Co. | (1.00)% | Quarterly | MSCO | 12/20/25 | 33598000 | JPY | (508) | 23 | &nbsp;&nbsp;&nbsp;&nbsp;(531) |  |
| &nbsp;&nbsp; Saudi Arabia <br>International | (1.00)% | Quarterly | GSCO | 6/20/35 | 1698000 |  | (2735) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2735) |  |
|  Univision Communications Inc. | (5.00)% | Quarterly | GSCO | 6/20/30 | 99000 |  | (11148) | (3149) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7999) |  |
| **Traded Index**<br>|  |  |  |  |  |  |  |  |  |  |
| <sup>e</sup>ITRX.EUR.FIN | (1.00)% | Quarterly | BZWS | 12/20/30 | 1000000 | EUR | (26123) | (23689) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2434) |  |
| **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** |
| **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** |
| &nbsp;&nbsp; Saudi Arabia <br>International | 1.00% | Quarterly | BZWS | 6/20/30 | 990000 |  | 18377 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18377 | A+  |
| &nbsp;&nbsp; Saudi Arabia <br>International | 1.00% | Quarterly | GSCO | 6/20/30 | 708000 |  | 13142 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13142 | A+  |
| &nbsp;&nbsp;&nbsp; Total OTC Swap Contracts | &nbsp;&nbsp;&nbsp; Total OTC Swap Contracts | &nbsp;&nbsp;&nbsp; Total OTC Swap Contracts | &nbsp;&nbsp;&nbsp; Total OTC Swap Contracts | &nbsp;&nbsp;&nbsp; Total OTC Swap Contracts | &nbsp;&nbsp;&nbsp; Total OTC Swap Contracts |  | $(96994) | $327351 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $(424345) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts |  | $950904 | $1880373 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $(929469) |  |

---

<sup>a</sup> In U.S. dollars unless otherwise indicated. For contracts to sell protection, the notional amount is equal to the maximum potential amount of the future payments and no recourse provisions have been entered into in association with the contracts.

<sup>b</sup> Based on Standard and Poor's (S&P) Rating for single name swaps and internal ratings for index swaps. Internal ratings based on mapping into equivalent ratings from external vendors.

<sup>c</sup> Performance triggers for settlement of contract include default, bankruptcy or restructuring for single name swaps and failure to pay or bankruptcy of the underlying securities for traded index swaps.

<sup>d</sup> The Fund enters contracts to sell protection to create a long credit position.

<sup>e</sup> A portion or all of the contracts are owned by K2 Holdings Investment Corp., a wholly-owned subsidiary of the Fund. See Note 1(g).

<br> franklintempleton.com Semiannual Report 45

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

At November 30, 2025, the Fund had the following interest rate swap contracts outstanding. See Note 1(d).

**Interest Rate Swap Contracts** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Description** | **Payment** <br>**Frequency** | **Maturity**<br>**Date** | **Notional**<br>**Amount<sup>\*</sup>** |  | **Value/Unrealized** <br>**Appreciation** <br>(Depreciation)  |
| **Centrally Cleared Swap Contracts**<br>|  |  |  |  |  |
| Receive Fixed 10.23%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating Banxico Mexico 1 Month Rate | Monthly | 12/31/25 | 38400000 | MXN | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $5223  |
| Receive Fixed 10.23%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating Banxico Mexico 1 Month Rate | Monthly | 6/17/26 | 38400000 | MXN | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28662  |
| Receive Fixed 37.30%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating TLREF | Quarterly | 9/15/26 | 65412818 | TRY | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8706  |
| Receive Fixed 37.35%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating TLREF | Quarterly | 9/15/26 | 57587182 | TRY | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7071  |
| Receive Fixed 7.02%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating 3-Month-JIBAR | Quarterly | 12/18/26 | 34983147 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8553)  |
| Receive Fixed 13.29%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating BRLCDI | Annually | 1/04/27 | 2980054 | BRL | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6584  |
| Receive Fixed 13.41%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating BRLCDI | Annually | 1/04/27 | 5875629 | BRL | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17092  |
| Receive Fixed 16.25%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating BRLCDI | Annually | 1/04/27 | 9083263 | BRL | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (61714)  |
| Receive Fixed 7.98%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating COLIBOR | Quarterly | 3/19/27 | 5531819764 | COP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (30236)  |
| Receive Fixed 8.02%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating COLIBOR | Quarterly | 3/19/27 | 6276246033 | COP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (35096)  |
| Receive Fixed 3.70%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating SOFR | Annually | 6/03/27 | 6310000 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28695  |
| Receive Fixed 8.52%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating COLIBOR | Quarterly | 12/17/27 | 7409316244 | COP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (47395)  |
| Receive Fixed 8.52%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating COLIBOR | Quarterly | 12/17/27 | 1890683756 | COP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (12094)  |
| Receive Fixed 3.57%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating SOFR | Annually | 7/28/28 | 2108000 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16267  |
| Receive Fixed 3.58%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating SOFR | Annually | 7/28/28 | 1996000 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16081  |
| Receive Fixed 3.30%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating SOFR | Annually | 11/12/28 | 7274000 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10378  |
| Receive Fixed 4.15%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating SOFR | Annually | 11/22/28 | 5700000 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 145609  |
| Receive Fixed 13.44%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating BRLCDI | Annually | 1/02/29 | 14380185 | BRL | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27996  |
| Receive Fixed 3.93%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating SOFR | Annually | 3/15/29 | 5469600 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 114758  |
| Receive Fixed 3.47%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating 1-Day EONIA | Annually | 12/18/29 | 13815899 | CZK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (11113)  |
| Receive Fixed 3.50%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating 1-Day EONIA | Annually | 12/18/29 | 22360157 | CZK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (16847)  |
| Receive Fixed 5.41%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating 6-Month-BUBOR | Annually | 12/18/29 | 447284564 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (45651)  |
| Receive Fixed 5.42%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating 6-Month-BUBOR | Annually | 12/18/29 | 182487019 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (18334)  |
| Receive Fixed 5.44%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating 6-Month-BUBOR | Annually | 12/18/29 | 182228417 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (17921)  |
| Receive Fixed 7.68%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating Banxico Mexico 1 Month Rate | Monthly | 6/12/30 | 30200000 | MXN | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24037 |

---

<br> 46 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Interest Rate Swap Contracts (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Description** | **Payment** <br>**Frequency** | **Maturity**<br>**Date** | **Notional**<br>**Amount<sup>\*</sup>** |  | **Value/Unrealized** <br>**Appreciation** <br>(Depreciation)  |
| **Centrally Cleared Swap Contracts (continued)**<br>|  |  |  |  |  |
| Receive Fixed 6.17%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating 6-Month-BUBOR | Annually | 9/17/30 | &nbsp;&nbsp;&nbsp; 650000000 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $(19127)  |
| Receive Fixed 13.28%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating BRLCDI | Annually | 1/02/31 | &nbsp;&nbsp;&nbsp; 3798293 | BRL | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7003  |
| Receive Fixed 13.29%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating BRLCDI | Annually | 1/02/31 | &nbsp;&nbsp;&nbsp; 3601707 | BRL | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6551  |
| Receive Fixed 5.83%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating 6-Month-BUBOR | Annually | 12/18/34 | &nbsp;&nbsp;&nbsp; 237699992 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42288  |
| Receive Fixed 5.85%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating 6-Month-BUBOR | Annually | 12/18/34 | &nbsp;&nbsp;&nbsp; 100982120 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17602  |
| Receive Fixed 5.87%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating 6-Month-BUBOR | Annually | 12/18/34 | &nbsp;&nbsp;&nbsp; 101317888 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17349  |
| Receive Fixed 7.80%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating 3-Month-JIBAR | Quarterly | 12/17/35 | &nbsp;&nbsp;&nbsp; 29000000 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32760  |
| Total Centrally Cleared Swap Contracts |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 256631  |
| **OTC Swap Contracts**<br>|  |  |  |  |  |
| Receive Fixed 43.51%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating TLREF, Counterparty JPHQ | Quarterly | 4/16/26 | &nbsp;&nbsp;&nbsp; 27734327 | TRY | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (12646)  |
| Receive Fixed 5.43%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating MIBOR, Counterparty CITI | Semi-Annually | 12/17/27 | &nbsp;&nbsp;&nbsp; 210000000 | INR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1464)  |
| Receive Fixed 3.26%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating KLIBOR, Counterparty HSBC | Quarterly | 6/18/30 | &nbsp;&nbsp;&nbsp; 5273842 | MYR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2476)  |
| Receive Fixed 3.26%<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pay Floating KLIBOR, Counterparty GSCO | Quarterly | 6/18/30 | &nbsp;&nbsp;&nbsp; 6126158 | MYR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3107)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total OTC Swap Contracts |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (19693)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Interest Rate Swap Contracts |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $236938 |

---

<sup>\*</sup>In U.S. dollars unless otherwise indicated.

At November 30, 2025, the Fund had the following total return swap contracts outstanding. See Note 1(d).

**Total Return Swap Contracts** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts** | **OTC Swap Contracts** | **OTC Swap Contracts** | **OTC Swap Contracts** | **OTC Swap Contracts** | **OTC Swap Contracts** | **OTC Swap Contracts** | **OTC Swap Contracts** |
| **Currency Contracts - Long<sup>a</sup>** | **Currency Contracts - Long<sup>a</sup>** | **Currency Contracts - Long<sup>a</sup>** | **Currency Contracts - Long<sup>a</sup>** | **Currency Contracts - Long<sup>a</sup>** | **Currency Contracts - Long<sup>a</sup>** | **Currency Contracts - Long<sup>a</sup>** | **Currency Contracts - Long<sup>a</sup>** |
| Cross Asset Trend | Fixed 0.00% | Monthly | BNPP | 6/30/26 | 10243972 |  | &nbsp;&nbsp;&nbsp;&nbsp; $—  |
| FX G10 Carry | Fixed 0.00% | Monthly | CITI | 6/30/26 | 6688352 |  | &nbsp;&nbsp;&nbsp;&nbsp; 22926  |
| FX G10 Value | Fixed 0.00% | Monthly | CITI | 6/30/26 | 22409696 |  | &nbsp;&nbsp;&nbsp;&nbsp; (21151)  |
|  |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1775  |
| **Equity Contracts - Long<sup>a</sup>**<br>|  |  |  |  |  |  |  |
| 104 Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 8/31/26 | 34226 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1110)  |
| 3i Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 215726 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (53079)  |
| 3S Bio Inc | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 173536 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 7870  |
| 77th Bank | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 28980446 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 91330  |
| A1 Telekom Austria AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 89068 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (1747)  |
| A2A SpA | Euro STR + 0.35% | Monthly | JPHQ | 8/12/30 | 66325 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 8059  |
| Able Global Berhad | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 17628 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1777  |
| ABRDN PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 7/08/26 | 208039 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 88690  |
| AcadeMedia AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 1583645 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 49765  |

---

<br> franklintempleton.com Semiannual Report 47

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Accent Gl Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 133130 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; $(23255)  |
| Acciona SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/30 | 147767 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 62726  |
| Acs Actividades De Construction | 1-Day EONIA + 0.275% | Monthly | MSCO | 7/07/26 | 101643 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 26892  |
| Adaro Andalan Indonesia | 1-Day FEDEF + 0.35% | Monthly | MSCO | 11/27/26 | 22740 |  | &nbsp;&nbsp;&nbsp;&nbsp;(314)  |
| AddLife AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 8/02/30 | 2447881 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 63852 |
| Addtech Ab Ser B | 1-Week STIBOR + 0.275% | Monthly | SEBA | 7/28/26 | 159364 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 449  |
| Adesso SE | Euro STR + 0.35% | Monthly | JPHQ | 1/07/31 | 76940 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2336  |
| Adi Sarana Armada TBK | 1-Day FEDEF + 0.35% | Monthly | MSCO | 9/10/26 | 60722 |  | &nbsp;&nbsp;&nbsp;&nbsp; 14441  |
| Adidas AG | Euro STR + 0.35% | Monthly | JPHQ | 10/08/30 | 240251 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (33065)  |
| Advanced Info Service Pub | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 138698 |  | &nbsp;&nbsp;&nbsp;&nbsp; 14634  |
| Advanced Media Inc | 1-Day SONIA + 0.275% | Monthly | GSCO | 8/05/26 | 4689118 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (2718)  |
| Advanced Power Electronic | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 88656 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1681  |
| Advice IT Infinite Public | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/24/26 | 49274 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2408)  |
| Aeci Limited | 1-Day SABOR + 0.70% | Monthly | MSCS | 7/17/30 | 1993800 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (8940)  |
| Aedifica | Euro STR + 0.35% | Monthly | JPHQ | 7/14/26 | 213057 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 13407  |
| Aegon | Euro STR + 0.35% | Monthly | JPHQ | 4/03/26 | 179128 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 39257  |
| Aeon Co. Bhd | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 48438 |  | &nbsp;&nbsp;&nbsp;&nbsp; (10312)  |
| Aew UK REIT Plc Ord | 1-Day SONIA + 0.275% | Monthly | MSCO | 8/25/26 | 20869 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 440  |
| Agesa Hayat Emeklilik | 1-Day FEDEF + 1.25% | Monthly | MSCO | 9/24/26 | 79797 |  | &nbsp;&nbsp;&nbsp;&nbsp; 11865  |
| AGL Energy Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 345431 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (9562)  |
| Ahresty Corporation | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 6142058 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 397  |
| AIB Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 46685 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 39648  |
| Aica Kogyo Co | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 12249544 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 378  |
| Aida Engineering | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 15930165 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 29099  |
| AIMS APAC Reit | 1-Day SORA + 0.40% | Monthly | MSCO | 6/25/26 | 116069 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 4780  |
| Air France-KLM | 1-Day EONIA + 0.30% | Monthly | MSCS | 10/02/29 | 151572 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (16971)  |
| Air New Zealand Npv | 1-Day NZOCR + 0.40% | Monthly | MSCO | 6/23/26 | 61324 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; 633  |
| Airtrip Corp | TONAR + 0.35% | Monthly | GSCO | 8/28/26 | 1462745 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1636)  |
| Aisan Industry Co | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 10105809 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 18138  |
| Aisin Corporation | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 16942831 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 57063  |
| Aker Solutions ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 3307230 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (16612)  |
| Albaraka Turk Katilim Bankasi AS | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/27/30 | 103236 |  | &nbsp;&nbsp;&nbsp;&nbsp; 989  |
| Alfa Laval AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 11/17/26 | 846339 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 93  |
| A-Living Smart City Service | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 399912 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (8783)  |
| Alliance Global Group | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/30/26 | 29567 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1005)  |
| <sup>e</sup>Alliance Global Group Rights | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/30/26 |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 6644  |
| Alten | 1-Day EONIA + 0.275% | Monthly | MSCO | 10/28/26 | 114372 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (6308)  |
| Aluminum Corp of China | HIBOR + 0.35% | Monthly | GSCO | 6/26/26 | 513438 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 55073  |
| Alzchem Group AG | Euro STR + 0.35% | Monthly | JPHQ | 11/22/30 | 122591 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 18596  |
| Amasten Fastighets AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 11/27/30 | 774710 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 6914  |
| Amata Corp | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/03/26 | 231427 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3769)  |
| Ambea AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 2737144 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 68527  |
| Amedeo Air Four Plus | 1-Day SONIA + 0.275% | Monthly | MSCO | 4/09/26 | 35601 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 30660  |
| Amotiv Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 111046 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 7751  |
| AMP FPO | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 128828 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 27027  |
| Amperex Technology Ltd. | 1-Day FEDEF + 0.30% | Monthly | MSCS | 2/05/31 | 1101941 |  | &nbsp;&nbsp;&nbsp;&nbsp; (46672)  |

---

<br> 48 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| AMS-Osram AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/30 | 204234 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; $95960  |
| Ana Holdings Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 20005966 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 5846  |
| Aneka Tambang | 1-Day FEDEF + 0.35% | Monthly | MSCO | 10/08/26 | 133047 |  | &nbsp;&nbsp;&nbsp;&nbsp; (17392)  |
| Anest Iwata Corp | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 7920301 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 7872  |
| Anima Holding SpA | 1-Month EURIBOR + 0.40% | Monthly | JPHQ | 7/17/30 | 210497 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (2038)  |
| Anker Innovations | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 88334 |  | &nbsp;&nbsp;&nbsp;&nbsp; 5229  |
| Anapass Inc.  | 1-Day FEDEF + 0.25%  | Monthly  | MSCO  | 8/28/26  | 43170  |  | &nbsp;&nbsp;&nbsp;&nbsp; (5327)  |
| Anpec Electronics Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/25/26 | 183693 |  | &nbsp;&nbsp;&nbsp;&nbsp; 38728  |
| AO World PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 12/02/30 | 124289 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 39972  |
| Aoyama Trading Co | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 14146770 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 11302  |
| Aquafil | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 11127 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 1228  |
| Arakawa Chemical Industrial | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 407890 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 398  |
| Aramis Group | 1-Day EONIA + 0.275% | Monthly | MSCO | 4/03/26 | 26863 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (4776)  |
| Arcadyan Technology Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 210380 |  | &nbsp;&nbsp;&nbsp;&nbsp; (29926)  |
| AREIT Inc | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/30/26 | 66958 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1854)  |
| Argosy Research | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/08/26 | 109879 |  | &nbsp;&nbsp;&nbsp;&nbsp; (8930)  |
| Ariston Holding NV | Euro STR + 0.35% | Monthly | JPHQ | 11/29/30 | 83066 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (5339)  |
| Arjo AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 3319983 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (48899)  |
| Aroundtown SA | Euro STR + 0.35% | Monthly | JPHQ | 9/12/30 | 308283 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 81833  |
| ARYZTA | 1-Day SARON + 0.35% | Monthly | JPHQ | 4/26/26 | 349452 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (128810)  |
| Asahi Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 7105403 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 107  |
| Asahi Intecc Co Ltd | TONAR + 0.35% | Monthly | GSCO | 10/16/26 | 24958588 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 33161  |
| Asahi Net Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 4500664 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 940  |
| Asahi Yukizai Corporation | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 10440872 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 11505  |
| Ascencio | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 79446 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 16087  |
| Ascom Holding AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 37230 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 9441  |
| Asia Cement Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 10/02/26 | 48558 |  | &nbsp;&nbsp;&nbsp;&nbsp; 822  |
| Asia Optical Co Inc | 1-Day FEDEF + 0.10% | Monthly | MSCO | 11/23/26 | 55796 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1742  |
| Asia Pile Holdings Corpor | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 8524530 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 32788  |
| ASML Holding NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/29 | 205318 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 99026  |
| Asrock Incorporation | 1-Day FEDEF + 0.10% | Monthly | MSCO | 8/17/26 | 112644 |  | &nbsp;&nbsp;&nbsp;&nbsp; (16644)  |
| Asseco Poland SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/30 | 104539 |  | &nbsp;&nbsp;&nbsp;&nbsp; 69310  |
| Astra Otoparts Tbk | 1-Day FEDEF + 0.35% | Monthly | MSCO | 6/25/26 | 19641 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4191  |
| Astral Foods Ltd. | 1-Day SABOR + 0.30% | Monthly | MSCS | 7/17/30 | 2436063 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 56751  |
| Asustek Computer Inc | 1-Day FEDEF + 0.10% | Monthly | MSCO | 8/28/26 | 170380 |  | &nbsp;&nbsp;&nbsp;&nbsp; (17431)  |
| Atoss Software AG | Euro STR + 0.35% | Monthly | JPHQ | 8/01/30 | 235664 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (6016)  |
| Attendo AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 1/08/31 | 1853279 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 71248  |
| Auclinical Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 163080 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 7383  |
| Aumann AG | Euro STR + 0.35% | Monthly | JPHQ | 1/22/31 | 50551 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 4351  |
| Austevoll Seafood ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/12/26 | 1731603 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (22751)  |
| Austin Eng Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 80780 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (19040)  |
| Autoneum | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/30 | 125017 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 74242  |
| Avanza Bank Holding AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 6/05/26 | 1792934 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 19439  |
| Avation PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 2/24/26 | 24171 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(607)  |
| Avrupakent Gmyo | 1-Day FEDEF + 1.25% | Monthly | MSCO | 8/11/26 | 76597 |  | &nbsp;&nbsp;&nbsp;&nbsp; (12125)  |
| Axa SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/30 | 160207 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 13704  |

---

<br> franklintempleton.com Semiannual Report 49

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Axial Retailing Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 9104437 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; $1626  |
| Azimut Holding SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/29 | 163150 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 25249  |
| Aztech Gbl | 1-Day SORA + 0.40% | Monthly | MSCO | 6/25/26 | 40916 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 1834  |
| B Grimm Power Pcl | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/30/26 | 53659 |  | &nbsp;&nbsp;&nbsp;&nbsp; 766  |
| B&P Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 2067952 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2043  |
| B2 Impact ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 842491 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 52685  |
| Babcock International | 1-Day SONIA + 0.275% | Monthly | MSCO | 6/10/26 | 98729 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 96126  |
| Balfour Beatty | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/18/30 | 169295 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 153711  |
| Banco Bilbao Vizcaya Argentaria SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 9/30/30 | 155208 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 54718  |
| Bangkok Life Assurance | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 31724 |  | &nbsp;&nbsp;&nbsp;&nbsp; 7975  |
| Bank Btpn Syariah Tbk | 1-Day FEDEF + 0.35% | Monthly | MSCO | 6/26/26 | 32671 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1672)  |
| Bank Ocbc Nisp Tbk | 1-Day FEDEF + 0.35% | Monthly | MSCO | 6/25/26 | 41893 |  | &nbsp;&nbsp;&nbsp;&nbsp;(168)  |
| Bank of Georgia Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/31/30 | 118661 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 130648  |
| Barclays PLC | 1-Day SONIA + 0.44% | Monthly | MSCS | 7/17/30 | 151278 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 120433  |
| Barco | Euro STR + 0.35% | Monthly | JPHQ | 12/31/49 | 120449 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (11337)  |
| Basilea Pharmaceutica AG | Euro STR + 6.75% | Monthly | JPHQ | 5/08/26 | 194011 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 48188  |
| BAWAG Group AG | Euro STR + 0.35% | Monthly | JPHQ | 4/03/26 | 187660 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 45448  |
| Bayer AG | Euro STR + 0.35% | Monthly | JPHQ | 9/04/30 | 173754 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 58576  |
| BB Biotech AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 4/11/26 | 256517 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 218383  |
| BE Group AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 345132 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;(905)  |
| Bega Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 238203 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 14375  |
| Bekaert SA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 106752 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 22586  |
| Belc Co Ltd | TONAR + 0.35% | Monthly | GSCO | 8/27/26 | 7142142 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1014  |
| Beneteau | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/30 | 112824 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (16577)  |
| Betsson AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 7/17/30 | 4027792 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (31975)  |
| Bilfinger SE | Euro STR + 0.35% | Monthly | JPHQ | 12/06/30 | 82646 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 67725  |
| Bilibili Inc | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 941765 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 29586  |
| Billerud AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 7/29/30 | 4890871 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (58081)  |
| Binggrae Co | 1-Day FEDEF + 0.10% | Monthly | MSCO | 11/23/26 | 19294 |  | &nbsp;&nbsp;&nbsp;&nbsp;(244)  |
| Binjiang Svc Group Co Ltd | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 908939 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 5985  |
| Blue Bird Tbk Pt | 1-Day FEDEF + 0.35% | Monthly | MSCO | 7/31/26 | 34499 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3141)  |
| Bluescope Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/23/26 | 110139 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 5134  |
| BM Greentech Berhad | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/18/26 | 9245 |  | &nbsp;&nbsp;&nbsp;&nbsp;(847)  |
| BNP Paribas SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/30 | 255126 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 49953  |
| Boe Varitronix Ltd | HIBOR + 0.35% | Monthly | GSCO | 11/30/26 | 63934 | HKD | &nbsp;&nbsp;&nbsp;&nbsp;(138)  |
| Bogdanka SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 8/19/30 | 104362 |  | &nbsp;&nbsp;&nbsp;&nbsp; (28076)  |
| Boliden AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 6/08/26 | 1706614 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 67121  |
| Bonheur ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 8/28/30 | 599277 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 403  |
| Bouygues | 1-Day EONIA + 0.30% | Monthly | MSCO | 3/14/26 | 170639 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 21893  |
| Brambles Ltd Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 111840 | AUD | &nbsp;&nbsp;&nbsp;&nbsp;(102)  |
| Bravida Holding AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/01/30 | 1660324 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (21548)  |
| Bravura Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 148404 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 11533  |
| Brickability Group PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 12/08/30 | 16429 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(945)  |
| Bulten AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 10/18/30 | 524729 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (13786)  |
| Bumitama Agri | 1-Day SORA + 0.40% | Monthly | MSCO | 6/25/26 | 959 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 433  |
| Burberry Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/29 | 142053 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (12993)  |

---

<br> 50 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Burckhardt | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 340680 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; $(73928)  |
| Burkhalter Holdings | 1-Day SARON + 0.35% | Monthly | JPHQ | 9/12/30 | 89955 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 22128  |
| C&D Property Management | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 302207 | HKD | &nbsp;&nbsp;&nbsp;&nbsp;(450)  |
| Cafe De Coral Hldgs | HIBOR + 0.35% | Monthly | GSCO | 6/29/26 | 354042 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (9331)  |
| Cafe24 Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 150056 |  | &nbsp;&nbsp;&nbsp;&nbsp; (41340)  |
| Cahya Mata Sarawak Bhd | 1-Day FEDEF + 0.25% | Monthly | MSCO | 11/27/26 | 19912 |  | &nbsp;&nbsp;&nbsp;&nbsp;(501)  |
| Cairn Homes PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 162744 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 57945  |
| Canal Plus SA Ord | 1-Day SONIA + 0.275% | Monthly | MSCO | 8/25/26 | 71889 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 12572  |
| Cancom SE | Euro STR + 0.35% | Monthly | JPHQ | 1/07/31 | 213264 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 33747  |
| Canon Marketing Japan Inc | TONAR + 0.35% | Monthly | GSCO | 7/21/26 | 7667302 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 12229  |
| Capitaland Malaysia Trust | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 26828 |  | &nbsp;&nbsp;&nbsp;&nbsp;(919)  |
| Cargotec | Euro STR + 0.275% | Monthly | SEBA | 8/23/30 | 216118 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 1215  |
| Carlsberg Brewery Malaysia | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/14/26 | 22263 |  | &nbsp;&nbsp;&nbsp;&nbsp; 821  |
| Carlsberg Group | 1-Week CIBOR + 0.28% | Monthly | SEBA | 9/12/30 | 288884 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 1286  |
| Carmila | 1-Day EONIA + 0.30% | Monthly | MSCS | 8/07/30 | 213162 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 14860  |
| Carnival PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 6/10/26 | 175028 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 109915  |
| Carrefour | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/30 | 147892 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 3220  |
| Cedarwoods Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 9/11/26 | 46982 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 5335  |
| Cementir Holding NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 133033 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 60937  |
| Central Asia Metals PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/25/29 | 57159 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 5519  |
| Central Omega Resources | 1-Day FEDEF + 0.35% | Monthly | MSCO | 11/27/26 | 19719 |  | &nbsp;&nbsp;&nbsp;&nbsp;(139)  |
| Centrica PLC ORD | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 223209 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 73236  |
| Century Iron & Steel Industries | 1-Day FEDEF + 0.10% | Monthly | MSCO | 10/02/26 | 88507 |  | &nbsp;&nbsp;&nbsp;&nbsp; (17007)  |
| CEWE Stiftung & Co. KGaA | Euro STR + 0.35% | Monthly | JPHQ | 3/18/26 | 110553 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 11488  |
| Changgao Electric | 1-Day FEDEF + 0.25% | Monthly | MSCO | 8/21/26 | 51798 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3695  |
| Chaoju Eye Care Holdings | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 478567 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (4668)  |
| Cheilworldwide | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/23/26 | 162335 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6030  |
| Chemometec | 1-Week CIBOR + 0.28% | Monthly | SEBA | 11/15/29 | 564715 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 25372  |
| Chervon Holdings Ltd | HIBOR + 0.35% | Monthly | GSCO | 9/23/26 | 432109 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (7673)  |
| China Air Lines | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 115205 |  | &nbsp;&nbsp;&nbsp;&nbsp; (16264)  |
| China Aircraft Leasing Gp | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 178306 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 2232  |
| China Aviation | 1-Day SORA + 0.40% | Monthly | MSCO | 6/25/26 | 30335 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 14913  |
| China Bluechemical Limited | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 798360 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 15959  |
| China Communications Services | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 663207 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 6120  |
| China Foods Ltd | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 942935 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 35141  |
| China Intl Marine Contain | HIBOR + 0.35% | Monthly | GSCO | 6/26/26 | 545535 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 17808  |
| China Merchants | 1-Day FEDEF + 0.25% | Monthly | MSCO | 7/29/26 | 21673 |  | &nbsp;&nbsp;&nbsp;&nbsp; (21600)  |
| China New Higher Education | HIBOR + 0.35% | Monthly | GSCO | 10/06/26 | 562654 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (8200)  |
| China Oilfield Services | HIBOR + 0.35% | Monthly | GSCO | 10/07/26 | 352407 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 3075  |
| China Railway Tielong | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 81796 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6854  |
| China Reinsurance | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 1325500 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 49905  |
| China Res Med Hldgs Co Lt | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 1810733 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (42874)  |
| China Shineway Pharmaceutcal | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 705382 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 6162  |
| Chinasunsine | 1-Day SORA + 0.40% | Monthly | MSCO | 6/25/26 | 21400 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 5826  |
| Chow Sang Sang Hldgs Intl | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 421563 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 22244  |
| Chrysalis Investments | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/30 | 241614 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 103285  |

---

<br> franklintempleton.com Semiannual Report 51

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Chsocinfra Ord Units | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 197713 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; $5148  |
| Cikarang Listrindo TBK | 1-Day FEDEF + 0.35% | Monthly | MSCO | 9/24/26 | 20374 |  | &nbsp;&nbsp;&nbsp;&nbsp; 732  |
| Cimc Enric Holdings Limited | HIBOR + 0.35% | Monthly | GSCO | 10/06/26 | 681918 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 520  |
| Ciputra Development | 1-Day FEDEF + 0.35% | Monthly | MSCO | 6/25/26 | 30657 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3145)  |
| Citizen Watch Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 7282546 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 24704  |
| Citycon OYJ | Euro STR + 0.28% | Monthly | SEBA | 8/23/30 | 32833 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 3334  |
| CJ | 11-Day FEDEF + 0.10% | Monthly | MSCO | 6/19/26 | 203844 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2060  |
| CJ Cheiljedang | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/24/26 | 105815 |  | &nbsp;&nbsp;&nbsp;&nbsp; (15224)  |
| Claranova | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/30 | 22804 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (3211)  |
| Clarkson PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 5/06/26 | 146866 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(201) |
| Clas Ohlson AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 1912407 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 103318  |
| Clinuvel Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 215927 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 11341  |
| Cliq Digital AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 27743 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (23603)  |
| CMGE Technology Gp Ltd | HIBOR + 0.35% | Monthly | GSCO | 11/30/26 | 32161 | HKD | &nbsp;&nbsp;&nbsp;&nbsp;(94)  |
| CMOC Group Limited | HIBOR + 0.35% | Monthly | GSCO | 6/26/26 | 396314 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 42310  |
| Coca-Cola HBC AG-DI | 1-Day SONIA + 0.35% | Monthly | MSCS | 12/04/30 | 142408 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 24071  |
| CoinShares International | 1-Week STIBOR + 0.275% | Monthly | SEBA | 5/19/26 | 679192 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 13186  |
| Colesgroup Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 120497 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 2913  |
| Collins Fd Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 252972 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 46333  |
| Com7 Public Co Ltd | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/22/26 | 135223 |  | &nbsp;&nbsp;&nbsp;&nbsp; 25326  |
| Commerzbank AG | Euro STR + 0.35% | Monthly | JPHQ | 12/18/30 | 102977 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 46993  |
| &nbsp;&nbsp;&nbsp;&nbsp; Companhia De Saneamento Basico <br>Ord | 1-Day FEDEF + 0.60% | Monthly | MSCS | 7/10/26 | 1392963 |  | &nbsp;&nbsp;&nbsp;&nbsp; 11211  |
| Computacenter PLC ORD | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/15/26 | 222495 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 33396  |
| Computer Engineering & Co | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 9701683 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2937  |
| &nbsp;&nbsp;&nbsp;&nbsp; Construcciones y Auxiliar de <br>Ferrocarriles | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/30 | 188102 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 100866  |
| Consun Pharmaceutical Grp | HIBOR + 0.35% | Monthly | GSCO | 6/24/26 | 995652 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 41599  |
| Continental AG | Euro STR + 0.35% | Monthly | JPHQ | 11/03/30 | 203862 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 14751  |
| Convatec Group Plc Ord Gb | 1-Day SONIA + 0.275% | Monthly | MSCO | 7/29/26 | 199008 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (4823)  |
| Converge Information | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 72180 |  | &nbsp;&nbsp;&nbsp;&nbsp; (9766)  |
| Corbion | Euro STR + 0.35% | Monthly | JPHQ | 9/03/30 | 246981 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 25142  |
| Cosco Capital Inc | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 1140 |  | &nbsp;&nbsp;&nbsp;&nbsp;(2)  |
| Cosco Shipping Specialty | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 72125 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4149  |
| Costain Group | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/15/30 | 100535 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 56717  |
| Costain Group | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/30 | 568 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 1250  |
| Country Garden Svcs Hldgs | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 859527 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (4716)  |
| Covivio | 1-Day EONIA + 0.275% | Monthly | MSCO | 7/28/26 | 105061 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (2228)  |
| CPI Europe AG | Euro STR + 0.35% | Monthly | JPHQ | 11/27/30 | 119319 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (18784)  |
| Cranswick PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/29/29 | 46715 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 2520  |
| Credit Agricole | 1-Day EONIA + 0.275% | Monthly | MSCO | 7/09/26 | 171791 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 5266  |
| Creditcorp Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 174279 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (6450)  |
| Cresco Ltd | TONAR + 0.35% | Monthly | GSCO | 11/02/26 | 2384775 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(544)  |
| Cromwell Stapled | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 63955 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 9534  |
| CS Bearing Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 11/19/26 | 5921 |  | &nbsp;&nbsp;&nbsp;&nbsp; 62  |
| CSHARE FPO | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 143217 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (8101)  |

---

<br> 52 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| CTBC Financial Holdings | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/08/26 | 71889 |  | &nbsp;&nbsp;&nbsp;&nbsp; $(3)  |
| Currys PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/30 | 198590 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 112703  |
| Cvilux Corporation | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 73198 |  | &nbsp;&nbsp;&nbsp;&nbsp; 29067  |
| Cyberlink Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 10/05/26 | 43620 |  | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| Daesang | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 230519 |  | &nbsp;&nbsp;&nbsp;&nbsp; (30459)  |
| Daewonpharm | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 51776 |  | &nbsp;&nbsp;&nbsp;&nbsp; (5929)  |
| Dah Sing Banking Group | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 1250458 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 37520  |
| Daihanpharm | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 66270 |  | &nbsp;&nbsp;&nbsp;&nbsp; (6667)  |
| Daiwabo Holdings Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 8070595 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 9914  |
| D'Amico | Euro STR + 0.35% | Monthly | JPHQ | 11/30/26 | 17212 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 3575  |
| Danieli & C Officine Meccaniche SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 197459 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 137483  |
| Danske Bank A/S | 1-Week CIBOR + 0.275% | Monthly | SEBA | 11/13/30 | 949084 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 33600  |
| Darbond Technology Co Ltd | 1-Day FEDEF + 0.25% | Monthly | MSCO | 7/20/26 | 38974 |  | &nbsp;&nbsp;&nbsp;&nbsp;(536)  |
| Datatec Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 11/27/30 | 2799121 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 98981  |
| Dayang Enterprise Holding | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 19723 |  | &nbsp;&nbsp;&nbsp;&nbsp;(20)  |
| DBA Group | Euro STR + 0.35% | Monthly | JPHQ | 11/03/30 | 37275 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 8004  |
| Deceuninck | Euro STR + 0.35% | Monthly | JPHQ | 11/07/30 | 28313 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 3610  |
| Dedicare AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 5/27/26 | 265776 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (3348)  |
| DEME Group | Euro STR + 0.35% | Monthly | JPHQ | 8/22/30 | 148178 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 27879  |
| Deppon Logistics Co | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 48686 |  | &nbsp;&nbsp;&nbsp;&nbsp; (4926)  |
| Deutsche Bank AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 132507 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 90241  |
| Develia SA | 1-Day FEDEF + 1.25% | Monthly | MSCO | 12/19/30 | 36422 |  | &nbsp;&nbsp;&nbsp;&nbsp; 11596  |
| Devsisters Corporation | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/02/26 | 71578 |  | &nbsp;&nbsp;&nbsp;&nbsp; (26847)  |
| Dexusconv Stapled | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 46773 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (1198)  |
| Dfirg Usd | 1-Day FEDEF + 0.40% | Monthly | MSCO | 7/10/26 | 148869 |  | &nbsp;&nbsp;&nbsp;&nbsp; 19476  |
| Digiplus Interactive Corp | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/19/26 | 155109 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3715)  |
| Digital China Group | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 39134 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2346  |
| Digital Information Techn | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 7685191 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 4390  |
| Digital Value SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 3396 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(72) |
| Dingzing Advanced Materia | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 100166 |  | &nbsp;&nbsp;&nbsp;&nbsp; (25688)  |
| Distribuidora Internacional | 1-Day EONIA + 0.275% | Monthly | MSCO | 2/18/26 | 82900 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 38676  |
| Dit Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 8/17/26 | 75299 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1189  |
| DKSH Switzerland Ltd. | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/26 | 84705 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;(142)  |
| DNO ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/15/29 | 1018480 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (1796)  |
| DO & CO AG | Euro STR + 0.35% | Monthly | JPHQ | 9/06/30 | 48273 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2140  |
| Dogan Holding | 1-Day FEDEF + 1.25% | Monthly | MSCO | 9/25/26 | 202417 |  | &nbsp;&nbsp;&nbsp;&nbsp; (8975)  |
| Dogus Otomotiv | 1-Day FEDEF + 1.25% | Monthly | MSCS | 1/22/29 | 161421 |  | &nbsp;&nbsp;&nbsp;&nbsp;(532)  |
| Dom Development | 1-Day FEDEF + 1.25% | Monthly | MSCS | 11/28/30 | 32583 |  | &nbsp;&nbsp;&nbsp;&nbsp; 22304  |
| Dongkook Pharm | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 94122 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1369)  |
| Dongkuk Steel | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 63971 |  | &nbsp;&nbsp;&nbsp;&nbsp; (12219)  |
| Dongsung Finetec | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 84013 |  | &nbsp;&nbsp;&nbsp;&nbsp; (8101)  |
| Dormakaba Holding AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 3/04/26 | 213971 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 27368  |
| Doutor Nichires Holdings | TONAR + 0.35% | Monthly | GSCO | 10/12/26 | 10013639 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1506  |
| Downer Edi Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 153502 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 23521  |
| Dr. Martens PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 3/02/26 | 96589 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 23819  |
| Drax Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 257151 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 102288  |

---

<br> franklintempleton.com Semiannual Report 53

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Duerr AG | Euro STR + 0.35% | Monthly | JPHQ | 2/17/26 | 201384 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; $6391  |
| Dufry AG | Euro STR + 0.35% | Monthly | JPHQ | 8/16/29 | 265793 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 4949  |
| East West Banking Corporation | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 516 |  | &nbsp;&nbsp;&nbsp;&nbsp; 13  |
| Easyjet PLC | 1-Day SONIA + 0.35% | Monthly | MSCO | 7/17/26 | 225411 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (10625)  |
| Ebos Group Npv | 1-Day NZOCR + 0.40% | Monthly | MSCO | 6/19/26 | 25755 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; (2086)  |
| Ebro Foods | 1-Day EONIA + 0.35% | Monthly | MSCO | 12/04/30 | 149896 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 29337  |
| Eckert & Ziegler SE | Euro STR + 0.35% | Monthly | JPHQ | 1/07/31 | 188516 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (3262)  |
| Eco World Development Gro | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/22/26 | 75136 |  | &nbsp;&nbsp;&nbsp;&nbsp; 11846  |
| Econocom Group SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 39442 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (1571)  |
| EFG International AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/30 | 263798 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 211316  |
| EG Industries Bhd | 1-Day FEDEF + 0.25% | Monthly | MSCO | 10/30/26 | 42376 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3672)  |
| Eiffage SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/29 | 154353 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 18637  |
| El.En. SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/13/29 | 84055 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 8436  |
| Elecom Co | TONAR + 0.35% | Monthly | GSCO | 9/30/26 | 7528994 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1271)  |
| Electrolux Professional AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 5/08/30 | 521495 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 3100  |
| Elior Group | 1-Day EONIA + 0.275% | Monthly | MSCO | 9/08/30 | 195168 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (13279)  |
| Elmera Group ASA | 1-Week NIBOR + 0.275% | Monthly | SEBA | 1/27/31 | 1117852 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (2551)  |
| Elmos Semiconductor SE | Euro STR + 0.35% | Monthly | JPHQ | 7/18/30 | 64595 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 48961  |
| Elnusa Tbk | 1-Day FEDEF + 0.35% | Monthly | MSCO | 6/29/26 | 67304 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1509  |
| E-Mart Inc | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 149107 |  | &nbsp;&nbsp;&nbsp;&nbsp; (18991)  |
| Emlpayment Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 8/26/26 | 62546 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (8374)  |
| Emmi | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/09/26 | 59949 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 274  |
| Enagas SA | 1-Day EONIA + 0.275% | Monthly | MSCO | 6/11/26 | 118150 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 4579  |
| Endesa SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 1/13/31 | 217917 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 109865  |
| Endo Lighting Corp | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 8637344 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1706)  |
| Enea AB | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/26 | 121495 |  | &nbsp;&nbsp;&nbsp;&nbsp; 62194  |
| Enel Group | 1-Day EONIA + 0.40% | Monthly | MSCS | 12/05/30 | 1630264 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (37753)  |
| Energy Transfer LP | SOFR + 1.01% | Monthly | GSCO | 11/01/30 | 68209 |  | &nbsp;&nbsp;&nbsp;&nbsp; 440  |
| Engie SA | 1-Day EONIA + 0.40% | Monthly | MSCO | 9/25/30 | 1001127 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (9357)  |
| Ennoconn Corporation | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 85970 |  | &nbsp;&nbsp;&nbsp;&nbsp; (5984)  |
| EnQuest PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/30 | 145660 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (49063)  |
| Entra ASA | 1-Week NIBOR + 0.275% | Monthly | SEBA | 5/05/26 | 1714511 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (15895)  |
| Equasens | 1-Day EONIA + 0.275% | Monthly | MSCO | 11/17/26 | 20525 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 841  |
| Equity Flows | Fixed 0.00% | Monthly | JPHQ | 6/30/26 | 2073300 |  | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| Equity Low Beta | Fixed 0.00% | Monthly | DBAB | 6/30/26 | 3570432 |  | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| Equity Momentum | Fixed 0.00% | Monthly | DBAB | 6/30/26 | 8260437 |  | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| Equity Value | Fixed 0.00% | Monthly | DBAB | 6/30/26 | 12237494 |  | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| Erajaya Tbk | 1-Day FEDEF + 0.35% | Monthly | MSCO | 6/25/26 | 91490 |  | &nbsp;&nbsp;&nbsp;&nbsp; (13358)  |
| Erex Co Ltd | TONAR + 0.35% | Monthly | GSCO | 7/20/26 | 6459754 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (4272)  |
| Ericsson | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 3207209 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 44324  |
| Esr REIT | 1-Day SORA + 0.40% | Monthly | MSCO | 11/26/26 | 18297 | SGD | &nbsp;&nbsp;&nbsp;&nbsp;(13)  |
| Eubiologics Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/02/26 | 145767 |  | &nbsp;&nbsp;&nbsp;&nbsp; (15891)  |
| Eurocash | 1-Day FEDEF + 1.25% | Monthly | MSCS | 1/06/31 | 76274 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3033)  |
| Eurocell PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 9/24/30 | 44323 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (15123)  |
| Eurocommercial Properties NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 144120 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 11145  |
| Eurofins Scientific | 1-Day EONIA + 0.275% | Monthly | MSCO | 7/17/30 | 246743 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 17140 |

---

<br> 54 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Eva Airways | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/19/26 | 265595 |  | &nbsp;&nbsp;&nbsp;&nbsp; $(48674)  |
| Eva Precision Industrial | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 313447 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 11711  |
| Everlight Electronics Co | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/28/26 | 19521 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3110)  |
| Everplay Group PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 4/15/26 | 158802 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 3949  |
| EVS Broadcast Equipment SA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 82683 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2435  |
| Exem Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 7/20/26 | 53110 |  | &nbsp;&nbsp;&nbsp;&nbsp; (8021)  |
| Exor NV | Euro STR + 0.35% | Monthly | JPHQ | 2/28/26 | 244026 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (9710)  |
| F Code Inc | TONAR + 0.35% | Monthly | GSCO | 11/24/26 | 1772363 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(87)  |
| Fabege AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 11/21/29 | 1089732 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;(919)  |
| Fagron NV | Euro STR + 0.35% | Monthly | JPHQ | 8/19/30 | 78625 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2548  |
| Far Eastern New Century | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/28/26 | 41351 |  | &nbsp;&nbsp;&nbsp;&nbsp;(79)  |
| Farm Fresh Berhad | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/14/26 | 23234 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6371  |
| Ficont Industry | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 168861 |  | &nbsp;&nbsp;&nbsp;&nbsp; 33113  |
| Finnair OYJ | Euro STR + 0.275% | Monthly | SEBA | 4/15/26 | 66923 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (10846)  |
| First Gen Corporation | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 944 |  | &nbsp;&nbsp;&nbsp;&nbsp;(58)  |
| First Pacific Co | HIBOR + 0.35% | Monthly | GSCO | 7/03/26 | 348592 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 1745  |
| First Reit | 1-Day SORA + 0.40% | Monthly | MSCO | 6/25/26 | 38611 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 785  |
| First Resources | 1-Day SORA + 0.40% | Monthly | MSCO | 6/25/26 | 74119 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 22397  |
| FirstGroup PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 8/24/30 | 228704 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 15559  |
| Fisher & Paykel Healthcare | 1-Day NZOCR + 0.40% | Monthly | MSCO | 6/24/26 | 142726 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; 1084  |
| Fleetwood Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 9/17/26 | 66987 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (5952)  |
| Flight Ctr Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 156893 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 7088  |
| Flow Traders | Euro STR + 0.35% | Monthly | JPHQ | 4/26/26 | 150256 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (11168)  |
| Foran Energy Group | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 15568 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2993  |
| ForFarmers | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 106528 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 12894  |
| Forterra Plc Ord | 1-Day SONIA + 0.275% | Monthly | MSCO | 8/27/26 | 55319 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(120)  |
| Fortress REIT Ltd. | 1-Day SABOR + 0.50% | Monthly | MSCS | 11/27/30 | 3607389 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 87985  |
| Forvia | 1-Day EONIA + 0.30% | Monthly | MSCS | 12/02/30 | 166963 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 74243  |
| Foster Electric Co | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 18315503 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 81972  |
| Foxtons Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/18/30 | 56232 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 15053  |
| Frasers Property Limited | 1-Day SORA + 0.40% | Monthly | MSCO | 6/25/26 | 24666 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 3507  |
| Freebit Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 12640805 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 6721  |
| Fuchs Petrolub SE | Euro STR + 0.35% | Monthly | JPHQ | 4/25/26 | 133356 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2508  |
| Fufeng Group Ltd | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 757797 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 11834  |
| Fuji Seal International | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 12687128 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 15238  |
| Fukuda Denshi Co | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 11307597 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2416  |
| Fusheng Precision Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 181986 |  | &nbsp;&nbsp;&nbsp;&nbsp; (36686)  |
| Futaba Industrial Co | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 19537170 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 43410  |
| Fuyao Glass Industry Group | HIBOR + 0.35% | Monthly | GSCO | 6/26/26 | 1112644 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 22674  |
| G8 Educate Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 209724 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (50756)  |
| GA Technologies Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 36029398 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 42491  |
| Gakken Holdings Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 8655659 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 13542  |
| Galenica AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/29 | 206395 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 11397  |
| Galliford Try Holdings PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 70533 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 69813  |
| Gamma Communications PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 6/05/26 | 81020 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (27777)  |
| Garanti Bankasi | 1-Day FEDEF + 1.25% | Monthly | MSCO | 9/24/26 | 187768 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3721)  |

---

<br> franklintempleton.com Semiannual Report 55

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Gas Malaysia Berhad | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 109392 |  | &nbsp;&nbsp;&nbsp;&nbsp; $24  |
| <sup>b,c</sup>Gazprom PJSC ADR | 1-Day FEDEF | Monthly | MSCS | 1/31/31 | 173903 |  | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| GDI Prop Stapled | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 86841 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (1308)  |
| GEA Group | Euro STR + 0.35% | Monthly | JPHQ | 6/05/26 | 75655 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 316  |
| Geely Automobile Holdings | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 1119875 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (2443)  |
| Genians Inc | 1-Day FEDEF + 0.10% | Monthly | MSCO | 7/28/26 | 50460 |  | &nbsp;&nbsp;&nbsp;&nbsp; (4522)  |
| Genius Electronic Optical | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 183964 |  | &nbsp;&nbsp;&nbsp;&nbsp; 924  |
| Genmab A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 1968414 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 136419  |
| Genus PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 8/22/30 | 151785 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 23827  |
| Gestamp Automocion SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/30 | 227553 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (18466)  |
| Getinge AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/28 | 2603651 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 24774  |
| Gfpt Public Company Limit | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 86142 |  | &nbsp;&nbsp;&nbsp;&nbsp; 12613  |
| Giordano International | HIBOR + 0.35% | Monthly | GSCO | 9/09/26 | 244468 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (1866)  |
| Global Mixed Mode Technology | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/22/26 | 64332 |  | &nbsp;&nbsp;&nbsp;&nbsp; (8996)  |
| Global One Real Estate | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 12876595 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 5193  |
| GMO Internet Group Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 25606502 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 21332  |
| Goodbaby Intl Hldgs Ltd | HIBOR + 0.35% | Monthly | GSCO | 6/30/26 | 677212 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 1031 |
| Gpt Stapled | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 215340 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 13994  |
| Grainger Plc Ord | 1-Day SONIA + 0.275% | Monthly | MSCO | 11/18/26 | 37973 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(410)  |
| Grand City Properties SA | Euro STR + 0.35% | Monthly | JPHQ | 11/27/28 | 93705 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (1264)  |
| Grape King Bio Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 63531 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2627)  |
| Great Wall Motor Company | HIBOR + 0.35% | Monthly | GSCO | 10/06/26 | 1068280 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (9594)  |
| Greatek Electronics Inc | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 202238 |  | &nbsp;&nbsp;&nbsp;&nbsp; 29841  |
| Greencore Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/12/30 | 240325 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 131991  |
| Greentown Service Group C | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 1706937 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 3967  |
| Grenke AG | Euro STR + 0.35% | Monthly | JPHQ | 11/30/26 | 18000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 373  |
| Grifols SA | 1-Day EONIA + 0.35% | Monthly | MSCO | 3/25/26 | 212991 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 12286  |
| Grupa Azoty SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/30 | 102922 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2953)  |
| Grupo Empresarial San Jose | 1-Day EONIA + 0.275% | Monthly | MSCO | 9/22/26 | 50778 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 6440  |
| GT Capital Holdings Inc | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 12884 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1328  |
| GTT | 1-Day EONIA + 0.275% | Monthly | MSCO | 10/28/26 | 108691 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 349  |
| Guangdong Haid Group | 1-Day FEDEF + 0.10% | Monthly | MSCO | 8/28/26 | 64758 |  | &nbsp;&nbsp;&nbsp;&nbsp; (4150)  |
| Guangdong Investment | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 1243046 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 13235  |
| Guangshen Railway Co | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 37751 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1362  |
| Guangzhou Baiyun | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 67176 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2665  |
| Gulf Marine Services Plc | 1-Day SONIA + 0.275% | Monthly | MSCO | 8/27/26 | 26219 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (2510)  |
| Gurit | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/06/30 | 30982 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (9303)  |
| H. Lundbeck A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 11/27/30 | 1105224 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 19362  |
| Hafnia Ltd. | 1-Week NIBOR + 0.275% | Monthly | SEBA | 4/15/26 | 2789396 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 66853  |
| Haidilao Intl Hldg Ltd | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 631526 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (6958)  |
| Haier Smart Home Co Ltd | HIBOR + 0.35% | Monthly | GSCO | 10/06/26 | 1233445 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 9255  |
| Hal Trust | Euro STR + 0.35% | Monthly | JPHQ | 4/16/26 | 47770 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 6914  |
| Hallenstein Glassons Hldg | 1-Day NZOCR + 0.40% | Monthly | MSCO | 6/24/26 | 49957 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; 4758  |
| Halma Ord | 1-Day SONIA + 0.275% | Monthly | MSCO | 6/23/26 | 60502 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 5814  |
| Hammerson PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 11/27/30 | 147700 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 37369  |

---

<br> 56 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Hana Financial Group | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 108744 |  | &nbsp;&nbsp;&nbsp;&nbsp; $4026  |
| Hankuk Carbon Co | 1-Day FEDEF + 0.10% | Monthly | MSCO | 11/23/26 | 48444 |  | &nbsp;&nbsp;&nbsp;&nbsp;(249)  |
| Hanwha General Ins | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 133909 |  | &nbsp;&nbsp;&nbsp;&nbsp; (17870)  |
| Happinet Corp | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 18751403 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 17524  |
| Harbin Electric Co Ltd | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 329015 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 52770  |
| Harmony Gold Mining Co. Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCO | 3/06/26 | 3214103 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 81191  |
| Hartadinata Abadi | 1-Day FEDEF + 0.35% | Monthly | MSCO | 6/25/26 | 38852 |  | &nbsp;&nbsp;&nbsp;&nbsp; 40957  |
| Hd Hyundai | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 90287 |  | &nbsp;&nbsp;&nbsp;&nbsp; 28632  |
| Hd Hyundai Energy Solutions | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 60410 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6542  |
| Hd Hyundai Heavy | 1-Day FEDEF + 0.10% | Monthly | MSCO | 7/20/26 | 54585 |  | &nbsp;&nbsp;&nbsp;&nbsp;(96)  |
| Hdksoe | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 191505 |  | &nbsp;&nbsp;&nbsp;&nbsp; 26  |
| Hecto Innovation | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 106791 |  | &nbsp;&nbsp;&nbsp;&nbsp; (10552)  |
| Heidelberger Druckmaschin | Euro STR + 0.35% | Monthly | JPHQ | 11/30/26 | 13194 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 221  |
| Heijmans NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 233876 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 142471  |
| Heineken Malaysia Berhad | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 98051 |  | &nbsp;&nbsp;&nbsp;&nbsp; (8928)  |
| HelloFresh SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 177681 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (42917)  |
| Hiag Immobilien | 1-Day SARON + 0.35% | Monthly | JPHQ | 9/12/30 | 103959 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 29311  |
| Hibiscus Petroleum Bhd | 1-Day FEDEF + 0.25% | Monthly | MSCO | 11/27/26 | 7080 |  | &nbsp;&nbsp;&nbsp;&nbsp;(147)  |
| Hilton Food Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 10/18/30 | 270119 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (132390)  |
| Hisense Home Appliances | HIBOR + 0.35% | Monthly | GSCO | 7/06/26 | 1335300 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 11389  |
| Hito-Communications Holdings | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 5859187 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1365  |
| HL Mando Corporation | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/02/26 | 137324 |  | &nbsp;&nbsp;&nbsp;&nbsp; 33174  |
| Hoist Finance AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/30 | 1517245 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 58443  |
| Holcim Ltd. | 1-Day SARON + 0.35% | Monthly | JPHQ | 5/09/26 | 143560 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (2126)  |
| Hong Kong Exchanges & CLE | HIBOR + 0.35% | Monthly | GSCO | 9/28/26 | 529630 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (4894)  |
| Hong Leong Asia | 1-Day SORA + 0.40% | Monthly | MSCO | 6/25/26 | 55392 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 17105  |
| Hong Leong Financial Group | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 44532 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3500  |
| Hong Leong Industries Bhd | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 32789 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4792  |
| Horizon Oil Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 62883 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 286  |
| HORNBACH Holding AG & Co. KGaA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 162398 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 5632  |
| Hosokawa Micron Corp | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 14300144 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 16815  |
| HPH Trust USD | 1-Day FEDEF + 0.40% | Monthly | MSCO | 11/06/26 | 45715 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1385)  |
| Huadian Power International | HIBOR + 0.35% | Monthly | GSCO | 10/06/26 | 1014733 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 4448 |
| Hugel | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 202214 |  | &nbsp;&nbsp;&nbsp;&nbsp; (80845)  |
| Hugo Boss AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/26 | 290277 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (15661)  |
| Huhtamaki OYJ | Euro STR + 0.275% | Monthly | SEBA | 1/30/31 | 378087 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (62474)  |
| Human Hldgs Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 2499738 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2349  |
| Humana AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 885363 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 6895  |
| Hunting PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/28 | 94185 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 14269  |
| Husqvarna AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 9/25/30 | 3182251 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (32034)  |
| HUUUGE Inc. | 1-Day FEDEF + 1.25% | Monthly | MSCS | 7/01/27 | 68849 |  | &nbsp;&nbsp;&nbsp;&nbsp; 10976  |
| Hyosung TNC Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/24/26 | 29648 |  | &nbsp;&nbsp;&nbsp;&nbsp;(472)  |
| Hyundai Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 11/24/26 | 10903 |  | &nbsp;&nbsp;&nbsp;&nbsp; 103  |
| Hyundai Department Store | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/02/26 | 45677 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6286  |
| Hyundai Glovis | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 169554 |  | &nbsp;&nbsp;&nbsp;&nbsp; 13533  |
| Hyundai Mobis Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 64691 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1859)  |

---

<br> franklintempleton.com Semiannual Report 57

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Hyundai Wia | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 135668 |  | &nbsp;&nbsp;&nbsp;&nbsp; $25996  |
| Icade | 1-Day EONIA + 0.275% | Monthly | MSCO | 7/13/26 | 149259 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(92)  |
| ID Holdings Corporation | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 5831038 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (4040)  |
| IG Design Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/30 | 53424 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (34837)  |
| IG Group Hldgs Ord | 1-Day SONIA + 0.275% | Monthly | MSCO | 6/05/26 | 227723 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 15602  |
| IGB Real Estate Inv Trust | 1-Day FEDEF + 0.25% | Monthly | MSCO | 7/02/26 | 33305 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1316  |
| IGG Inc | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 1301153 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (17024)  |
| InBody | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 115065 |  | &nbsp;&nbsp;&nbsp;&nbsp; 14864  |
| Incap Corp. | Euro STR + 0.28% | Monthly | SEBA | 8/22/30 | 31150 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (4193)  |
|  Indeks Bilgisayar Sistemleri Muhendislik Sanayi ve Ticaret AS | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/28 | 40518 |  | &nbsp;&nbsp;&nbsp;&nbsp; (5898)  |
| Index Living Mall Pcl | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 18609 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2193  |
| Indus-Holding AG | Euro STR + 0.35% | Monthly | JPHQ | 10/11/30 | 88259 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 21835  |
| Industri Jamu & Farmasi | 1-Day FEDEF + 0.35% | Monthly | MSCO | 12/01/26 | 3298 |  | &nbsp;&nbsp;&nbsp;&nbsp;(32)  |
| Ingenia Stapled | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 307502 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (11682)  |
| Inghams Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 298145 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (56524)  |
| Inmobiliaria Colonial | 1-Day EONIA + 0.35% | Monthly | MSCS | 11/27/30 | 260406 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (29982)  |
| Instone Real Estate Group SE | Euro STR + 0.35% | Monthly | JPHQ | 12/12/30 | 47398 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 7366  |
| Integrafin Holdings Plc | 1-Day SONIA + 0.275% | Monthly | MSCO | 11/18/26 | 71916 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 3374  |
| Intergrated Service Technology | 1-Day FEDEF + 0.10% | Monthly | MSCO | 10/29/26 | 41954 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1343)  |
| &nbsp;&nbsp;&nbsp;&nbsp; International Consolidated Airlines <br>Group SA | 1-Day SONIA + 0.30% | Monthly | MSCS | 5/27/26 | 157568 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 165361  |
| Intesa Sanpaolo SpA | Euro STR + 0.35% | Monthly | JPHQ | 4/22/26 | 141277 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 38647  |
| Intloop Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 7392318 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 9082  |
| Investec Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCO | 9/15/30 | 2785751 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (10573)  |
| Ionos Group SE | Euro STR + 0.35% | Monthly | JPHQ | 11/06/30 | 180744 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2379  |
| Ipsos Group SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/30 | 76377 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (2993)  |
| Iren | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 205273 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 8906  |
| ISDN | 1-Day SORA + 0.40% | Monthly | MSCO | 6/25/26 | 20770 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 3619  |
| Ishihara Sangyo Kaisha | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 11750633 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 26451  |
| ISS A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 11/27/30 | 702791 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 13456  |
| Ive Group FPO | 1-Day RBACR + 0.40% | Monthly | MSCO | 7/28/26 | 83999 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (1231)  |
| Iyogin Holdings Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 24650365 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 104364  |
| Jacquet Metals SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/30 | 17886 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (1736)  |
| Japan Airlines Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 25598919 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 4388  |
| Japan Data Science | TONAR + 0.35% | Monthly | GSCO | 9/30/26 | 2259187 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 5149  |
| Japan Post Bank Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 5885891 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 7994  |
| Japan Property Management | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 8764728 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 5209  |
| Japfa Comfeed Indonesia | 1-Day FEDEF + 0.35% | Monthly | MSCO | 6/23/26 | 32816 |  | &nbsp;&nbsp;&nbsp;&nbsp; 12098  |
| Jardine C&C | 1-Day SORA + 0.40% | Monthly | MSCO | 8/19/26 | 38933 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 6822  |
| Jaya Tiasa Holdings Bhd | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 118134 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2468)  |
| Jb Hi-Fi Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 250962 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (19836)  |
| JBCC Holdings Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 17856128 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 21985  |
| JCDecaux SE | 1-Day EONIA + 0.30% | Monthly | MSCS | 11/07/30 | 277408 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (13455)  |
| Jet2 PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/18/30 | 236528 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(75)  |
| JG Summit Holdings Inc | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/30/26 | 46116 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2575)  |

---

<br> 58 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Jiangsu Changshu | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/29/26 | 42443 |  | &nbsp;&nbsp;&nbsp;&nbsp; $(1608)  |
| Jiangsu Suzhou Rural | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/29/26 | 41771 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3263)  |
| Jig Jp Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 8033057 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (3489)  |
| Jin Air | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 44222 |  | &nbsp;&nbsp;&nbsp;&nbsp; (13091) |
| Jinan Acetate Chemical Co | 1-Day FEDEF + 0.10% | Monthly | MSCO | 7/02/26 | 215510 |  | &nbsp;&nbsp;&nbsp;&nbsp; (79653)  |
| Jins Holdings Inc | TONAR + 0.35% | Monthly | GSCO | 7/15/26 | 15253361 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (23122)  |
| JMH | 1-Day FEDEF + 0.40% | Monthly | MSCO | 7/13/26 | 65935 |  | &nbsp;&nbsp;&nbsp;&nbsp; 12690  |
| JNBY Design Ltd | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 1484752 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 30149  |
| Johnson Electric Holdings | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 439125 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 12803  |
| Johnson Health Tech | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/25/26 | 160469 |  | &nbsp;&nbsp;&nbsp;&nbsp; (6855)  |
| Johnson Service Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 6/07/26 | 211022 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (2123)  |
| JP Holdings Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 6869217 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 9182  |
| JSE Ltd | 1-Day SABOR + 0.70% | Monthly | MSCO | 9/15/30 | 2048672 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (6051)  |
| JSP Corp | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 11735815 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 21015  |
| Jtekt Corporation | TONAR + 0.35% | Monthly | GSCO | 6/19/26 | 20829588 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 65534  |
| Julius Baer | Euro STR + 0.35% | Monthly | JPHQ | 7/17/29 | 130530 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (1733)  |
| JVM | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 139163 |  | &nbsp;&nbsp;&nbsp;&nbsp; (13011)  |
| K Car | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 58876 |  | &nbsp;&nbsp;&nbsp;&nbsp;(919)  |
| Kalbe Farma | 1-Day FEDEF + 0.35% | Monthly | MSCO | 10/08/26 | 82253 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4984  |
| Kalekim Kimyevi Maddeler | 1-Day FEDEF + 1.25% | Monthly | MSCO | 8/11/26 | 93843 |  | &nbsp;&nbsp;&nbsp;&nbsp; (9456)  |
| Kalmar Oyj | Euro STR + 0.275% | Monthly | SEBA | 8/23/29 | 73927 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 1570  |
| Kanamoto Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 21739424 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 19388  |
| Kaneka Corp | TONAR + 0.35% | Monthly | GSCO | 11/30/26 | 3062281 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 69  |
| Kanematsu Corp | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 21364131 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 35883  |
| Kaufman ET Broad | 1-Day EONIA + 0.30% | Monthly | MSCS | 12/02/30 | 142684 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (4678)  |
| KB Financial Group Inc | 1-Day FEDEF + 0.10% | Monthly | MSCO | 10/01/26 | 68106 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3080  |
| Keller Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 165945 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 36839  |
| Kenmare Resources PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 22888 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (5496)  |
| Kepco | 1-Day FEDEF + 4.00% | Monthly | MSCO | 6/24/26 | 133917 |  | &nbsp;&nbsp;&nbsp;&nbsp; 37350  |
| Kernel Holding SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/30 | 11632 |  | &nbsp;&nbsp;&nbsp;&nbsp; 17361  |
| Kia Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/23/26 | 171241 |  | &nbsp;&nbsp;&nbsp;&nbsp; 8898  |
| Kier Group Plc | 1-Day SONIA + 0.275% | Monthly | MSCO | 10/29/26 | 36580 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 1236  |
| KIH | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 64756 |  | &nbsp;&nbsp;&nbsp;&nbsp; 155  |
| Kina Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 55973 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (1177)  |
| Kingfa SCI&Tech Co | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 39215 |  | &nbsp;&nbsp;&nbsp;&nbsp; 30550  |
| Kip Real Estate Investments | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/14/26 | 58605 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1208  |
| The Klinique Medical Clinic | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/02/26 | 44296 |  | &nbsp;&nbsp;&nbsp;&nbsp; (11416)  |
| KoganCom Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 119320 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (8154)  |
| Konecranes OYJ | Euro STR + 0.28% | Monthly | SEBA | 11/22/30 | 269941 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 76647  |
| Kongsberg Gruppen As | 1-Week NIBOR + 0.275% | Monthly | SEBA | 7/17/30 | 1986108 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (37782)  |
| Koninklijke Ahold Delhaize NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/26 | 253218 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 22863  |
| Koninklijke BAM Groep NV | Euro STR + 0.35% | Monthly | JPHQ | 8/14/30 | 201698 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 147394  |
| Konoike Transport Co Limited | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 33280990 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 23627  |
| Korea Gas | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/02/26 | 68237 |  | &nbsp;&nbsp;&nbsp;&nbsp;(412)  |
| KorElecTerm | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 217038 |  | &nbsp;&nbsp;&nbsp;&nbsp; (28775)  |
| Koyou Rentia Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/25/26 | 1422313 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1466  |

---

<br> franklintempleton.com Semiannual Report 59

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| KPIC | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 160475 |  | &nbsp;&nbsp;&nbsp;&nbsp; $56158  |
| Kpj Healthcare Bhd | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 77792 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2126  |
| Krones AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 85567 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 12016  |
| Krung Thai Bank Public Co | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 84614 |  | &nbsp;&nbsp;&nbsp;&nbsp; 23832  |
| KT | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/29/26 | 3111 |  | &nbsp;&nbsp;&nbsp;&nbsp;(476)  |
| KT Skylife Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 10/30/26 | 11926 |  | &nbsp;&nbsp;&nbsp;&nbsp; 223  |
| Kubell Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 6017241 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (6649)  |
| Kumba Iron Ore Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCO | 3/25/26 | 2631464 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 10488  |
| KWS Saat SE & Co. KGaA | Euro STR + 0.35% | Monthly | JPHQ | 8/15/30 | 101187 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 32631  |
| L.D.C. | 1-Day EONIA + 0.275% | Monthly | MSCO | 9/15/26 | 44620 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (3068)  |
| Lassila & Tikanoja PLC | Euro STR + 0.275% | Monthly | SEBA | 1/27/31 | 28613 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2994  |
| Leeno Industrial | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/24/26 | 37591 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6289  |
| Leo Palace 21 Corp | TONAR + 0.35% | Monthly | GSCO | 6/22/26 | 18619491 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 12754  |
| Leong Hup International | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 94942 |  | &nbsp;&nbsp;&nbsp;&nbsp; 10244  |
| LG Electronics | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 130736 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3240  |
| LG Innotek | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 97039 |  | &nbsp;&nbsp;&nbsp;&nbsp; 34482  |
| LG Uplus | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 189609 |  | &nbsp;&nbsp;&nbsp;&nbsp; 77  |
| Life Corporation | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 26375350 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 27438  |
| Link Real Estate Investment | HIBOR + 0.35% | Monthly | GSCO | 8/19/26 | 502092 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (6751)  |
| Lion Travel Service Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 176073 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6102  |
| Lisi | 1-Day EONIA + 0.275% | Monthly | MSCO | 10/28/26 | 50414 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 597 |
| Livzon Pharmaceutical Group | HIBOR + 0.35% | Monthly | GSCO | 7/03/26 | 669534 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (8091)  |
| Logitech International | 1-Day SARON + 0.35% | Monthly | JPHQ | 2/17/26 | 202926 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 111226  |
| Lonking Holdings Ltd | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 512221 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 25198  |
| Loomis AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/15/26 | 4744797 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (31771)  |
| Lotte | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 124557 |  | &nbsp;&nbsp;&nbsp;&nbsp; (11793)  |
| Lotte Fine Chem | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 67783 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1619  |
| Lotte Rental Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 8/14/26 | 46177 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2059  |
| LT Group Inc | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 36519 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4364  |
| Lumax International Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 118053 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3834)  |
| LY Corporation | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 19534583 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (19817)  |
| M Up Holdings Inc | TONAR + 0.35% | Monthly | GSCO | 10/21/26 | 3956851 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (3120)  |
| Macmahon Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 89164 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 54299  |
| Magnum Berhad | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/18/26 | 20801 |  | &nbsp;&nbsp;&nbsp;&nbsp;(639)  |
| Maire Tecnimont SpA | Euro STR + 0.35% | Monthly | JPHQ | 8/14/30 | 138372 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 70778  |
| Malayan Flour Mills Bhd | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 61361 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2531  |
| Manila Electric Company | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/23/26 | 97895 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6664  |
| Manila Water Company Inc | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/30/26 | 16472 |  | &nbsp;&nbsp;&nbsp;&nbsp;(513)  |
| Manitou BF SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/28 | 32596 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (2077)  |
| Marimekko Corp. | Euro STR + 0.28% | Monthly | SEBA | 7/17/30 | 38427 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(622)  |
| Marketech International | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 221380 |  | &nbsp;&nbsp;&nbsp;&nbsp; 25395  |
| Marks & Spencer Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 134120 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 28084  |
| Marston's PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/30 | 122479 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 92397  |
| Matsuda Sangyo | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 3853387 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 10089  |
| Maxis Berhad | 1-Day FEDEF + 0.25% | Monthly | MSCO | 8/26/26 | 173946 |  | &nbsp;&nbsp;&nbsp;&nbsp; 19668  |
| Mayr-Melnhof Karton AG | Euro STR + 0.35% | Monthly | JPHQ | 2/05/31 | 104630 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 20364  |

---

<br> 60 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Mazda Motor Corp | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 12896204 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; $30802  |
| MBB SE | Euro STR + 0.35% | Monthly | JPHQ | 9/11/26 | 61522 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 6148  |
| MCNEX | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 131743 |  | &nbsp;&nbsp;&nbsp;&nbsp; (11402)  |
| Mebuki Financial Group | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 13421517 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 32115  |
| MediaForEurope | 1-Day EONIA + 0.35% | Monthly | JPHQ | 5/31/26 | 179608 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 9948  |
| MediaForEurope | 1-Day EONIA + 0.35% | Monthly | MSCO | 5/31/26 | 103324 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 36580  |
| Medmix | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/26 | 12466 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 681  |
| Megastudyedu | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 104002 |  | &nbsp;&nbsp;&nbsp;&nbsp; (17014)  |
| Megaworld Corporation | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 45338 |  | &nbsp;&nbsp;&nbsp;&nbsp;(781)  |
| Megmilk Snow Brand CoLtd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 16775870 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 14057  |
| Meidensha Corp | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 22514762 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 16850  |
| Melia Hotels International | 1-Day EONIA + 0.35% | Monthly | MSCO | 5/20/26 | 179169 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 1046  |
| Members Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 5800513 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (4108)  |
| Mercialys SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/30 | 56099 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2106  |
| Mersen | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/30 | 4436 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 26  |
| Metals X Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 110508 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 35672  |
| Micreed Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 1079049 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 855  |
| Mikron Group | 1-Day SARON + 0.35% | Monthly | JPHQ | 9/12/30 | 19305 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 7576  |
| Minor International | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/23/26 | 24200 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1410)  |
| Mirait One Corporation | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 11447194 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 25168  |
| Miroku Jyoho Service Co | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 6107546 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1928  |
| Mitchells & Butlers PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/30 | 143986 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 32718  |
| Mitie Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 209363 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 27756  |
| Mitra Adiperkasa Tbk | 1-Day FEDEF + 0.35% | Monthly | MSCO | 8/31/26 | 53139 |  | &nbsp;&nbsp;&nbsp;&nbsp;(181)  |
| Miura Co Ltd | TONAR + 0.35% | Monthly | GSCO | 10/21/26 | 13648568 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 914  |
| MLP SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 79257 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (15117)  |
| Modern Dental Group Limit | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 644127 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 16592  |
| Modern Times Group MTG AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 5/08/26 | 3324399 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 4240  |
| Modetour | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 91132 |  | &nbsp;&nbsp;&nbsp;&nbsp; (19966)  |
| Mogan Enerji | 1-Day FEDEF | Monthly | MSCO | 12/01/26 | 2080 |  | &nbsp;&nbsp;&nbsp;&nbsp;(3)  |
| Momentum Metropolitan Holdings Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 6/12/26 | 212908 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;(32)  |
| Monadel Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 223065 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 72859  |
| Monde Nissin Corporation | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/30/26 | 45664 |  | &nbsp;&nbsp;&nbsp;&nbsp; (6885)  |
| Moonpig Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/29 | 92195 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(817)  |
| Morgan Sindall Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 50249 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 29050  |
| Mostostal Zabrze SA | 1-Day FEDEF + 1.25% | Monthly | MSCO | 11/03/30 | 9511 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4407  |
| Mr Max Holdings Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 2150875 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 3195  |
| Mr Price Group Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCO | 3/14/26 | 4890283 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (14001) |
| MT Gibson Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 48752 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 12037  |
| MTN Group Ltd. | 1-Day SABOR + 0.32% | Monthly | MSCS | 7/15/26 | 3205699 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 70304  |
| Muhibbah Engineering | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 15555 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2556)  |
| Muyuan Foods Co Ltd | 1-Day FEDEF + 0.25% | Monthly | MSCO | 11/13/26 | 78891 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2732  |
| My Humble House Hospitality | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 57780 |  | &nbsp;&nbsp;&nbsp;&nbsp; (8913)  |
| Myer Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/22/26 | 119272 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (17633)  |
| Nagano Keiki Co Ltd | TONAR + 0.35% | Monthly | GSCO | 9/17/26 | 9047416 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 7562  |
| Nak Sealing Technologies | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/25/26 | 149 |  | &nbsp;&nbsp;&nbsp;&nbsp;(12)  |

---

<br> franklintempleton.com Semiannual Report 61

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Nan Pao Resins Chemical | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 210760 |  | &nbsp;&nbsp;&nbsp;&nbsp; $(11589)  |
| National Express Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 8/26/29 | 10772 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(175)  |
| National Grid PLC | 1-Day SONIA + 0.40% | Monthly | MSCS | 1/23/31 | 1072746 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (20314)  |
| Naturgy Energy Group SA | 1-Day EONIA + 0.275% | Monthly | MSCO | 11/06/26 | 78678 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (1588)  |
| NatWest Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 180529 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 134253  |
| NCC AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 2798867 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 37264  |
| Nelly Group AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 11/03/30 | 322544 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 22460  |
| Neowiz | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 118699 |  | &nbsp;&nbsp;&nbsp;&nbsp; (7404)  |
| Nepi Rockcastle NV | 1-Day SABOR + 0.70% | Monthly | MSCO | 6/09/26 | 2456239 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 5116  |
| Netbay Public Co Ltd | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 59409 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2490)  |
| Netcompany Group AS | 1-Week CIBOR + 0.275% | Monthly | SEBA | 11/13/26 | 814416 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 3470  |
| Netease Inc | HIBOR + 0.35% | Monthly | GSCO | 11/10/26 | 416256 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (1325)  |
| Netronix Inc | 1-Day FEDEF + 0.10% | Monthly | MSCO | 8/19/26 | 64040 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1315  |
| Netwealth Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 213730 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (16810)  |
| Newborn Town Inc | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 1153766 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (7281)  |
| Newlat Food | Euro STR + 0.35% | Monthly | JPHQ | 5/22/26 | 101174 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (23285)  |
| Nexans | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/30 | 221966 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 5759  |
| Nexi | Euro STR + 0.35% | Monthly | JPHQ | 11/30/26 | 66034 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 483  |
| Nextone Inc | TONAR + 0.35% | Monthly | GSCO | 10/29/26 | 5695014 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (5970)  |
| Nforce Secure Pcl | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 15663 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2325  |
| NH Foods Ltd | TONAR + 0.35% | Monthly | GSCO | 7/06/26 | 6096388 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 14012  |
| Nihon Dempa Kogyo | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 7471059 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 14527  |
| Nihon Trim Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 5594631 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 5380  |
| Nilfisk Holding A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/12/26 | 317496 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 5365  |
| Nilorngruppen AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 11/03/30 | 196069 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (1301)  |
| Ninety One Limited | 1-Day SABOR + 0.70% | Monthly | MSCO | 8/25/26 | 1063825 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 590  |
| Ninety One Plc Ord | 1-Day SONIA + 0.275% | Monthly | MSCO | 8/25/26 | 89640 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 12291  |
| Niox Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCO | 1/06/31 | 32702 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 5461  |
| Nippon Carbide Industries | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 5785485 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 12923  |
| Nippon Dry Chemical Co Lt | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 12586843 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 66606  |
| Nippon Prologis REIT Inc | TONAR + 0.35% | Monthly | GSCO | 11/11/26 | 9556537 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1990  |
| Nippon Reit Investment Co | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 14878711 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 11601  |
| Nippon Seiki Co | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 11636137 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 39852  |
| Nippon Sheet Glass Co | TONAR + 0.35% | Monthly | GSCO | 10/08/26 | 2469331 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(922)  |
| Nishi Nippon Financial HL | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 6995035 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 16767  |
| Nissi ASB Machine Co | TONAR + 0.35% | Monthly | GSCO | 11/11/26 | 1972962 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(246)  |
| Nitta Gelatin Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 5021022 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 13256  |
| Nitto Kogyo Corporation | TONAR + 0.35% | Monthly | GSCO | 11/05/26 | 1499964 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 483  |
| NN Group NV | Euro STR + 0.35% | Monthly | JPHQ | 7/15/26 | 247897 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 79357  |
| Nok Corp | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 13068383 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 29050  |
| Nolato AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 3/23/26 | 1300020 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 5610  |
| Nomura Holdings Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 11091826 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 22813  |
| Nordea Bank ABP | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 577164 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 10114  |
| Nordex SE | Euro STR + 0.35% | Monthly | JPHQ | 12/01/30 | 193284 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 151148  |
| Nordic Semiconductor ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 1342202 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (19628)  |
| Norooholdings | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 44436 |  | &nbsp;&nbsp;&nbsp;&nbsp; (8005)  |

---

<br> 62 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Norsk Hydro ASA | 1-Week NIBOR + 0.275% | Monthly | SEBA | 4/08/30 | 2001729 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; $18626  |
| Norwegian Air Shuttle ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/19/30 | 2708503 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 106317  |
| Nova Technology Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 199873 |  | &nbsp;&nbsp;&nbsp;&nbsp; (12727)  |
| Novartis AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 4/22/26 | 203024 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 45731  |
| Nrwholdltd Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 273290 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 147542  |
| Nsl Foods Pcl | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 79131 |  | &nbsp;&nbsp;&nbsp;&nbsp; (16160)  |
| NTN Corp | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 11761554 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 51532  |
| Obrascon Huarte Lain SA | 1-Day FEDEF | Monthly | MSCO | 12/17/30 | 46713 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (4410)  |
| Odfjell SE | 1-Week NIBOR + 0.275% | Monthly | SEBA | 4/15/26 | 1218246 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 29961 |
| Odfjell Technology Ltd. | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/18/30 | 953169 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 19884  |
| Offshore Oil Engineering | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 70916 |  | &nbsp;&nbsp;&nbsp;&nbsp; 750  |
| Oisix Ra Daichi Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 5584679 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (5261)  |
| Okabe Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 3541662 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2251  |
| Okea ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 1171724 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 9529  |
| Okinawa Financial Grp Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 23596761 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 84946  |
| Old Mutual Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCO | 4/30/26 | 4140371 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 55992  |
| Omnia Holdings Ltd. | 1-Day SABOR + 0.31% | Monthly | MSCS | 7/17/30 | 2675128 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 25297  |
| On The Beach Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 85765 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 13304  |
| The One Enterprise Pcl | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 2183 |  | &nbsp;&nbsp;&nbsp;&nbsp; 186  |
| Onewo Inc | HIBOR + 0.35% | Monthly | GSCO | 9/18/26 | 514153 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (11300)  |
| Open House Group Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 20127496 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 54903  |
| Orica Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 11/09/26 | 76076 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 3518  |
| Oriola Corp. | Euro STR + 0.28% | Monthly | SEBA | 7/17/30 | 33844 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 251  |
| ORSERO | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 57142 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 24119  |
| Osaka Organic Chemical | TONAR + 0.35% | Monthly | GSCO | 9/04/26 | 9287179 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 17062  |
| OSB Group | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/12/30 | 131455 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 48189  |
| OSE Immunotherapeutics | 1-Day EONIA + 0.275% | Monthly | MSCO | 9/28/26 | 43458 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (8362)  |
| OVS SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/26/30 | 237674 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 145962  |
| Pacific Hospital Supply | 1-Day FEDEF + 0.35% | Monthly | MSCO | 6/24/26 | 49663 |  | &nbsp;&nbsp;&nbsp;&nbsp; (6714)  |
| Palfinger AG | Euro STR + 0.35% | Monthly | JPHQ | 8/24/26 | 113052 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (4045)  |
| Pandora A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/15/26 | 2151960 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; (73241)  |
| Pantheon Infrastructure | 1-Day SONIA + 0.35% | Monthly | MSCO | 4/15/26 | 75359 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 24966  |
| Paragon Banking Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 2/03/30 | 145101 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (6978)  |
| Partron | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 97056 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1429)  |
| Peab AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 11/25/26 | 466986 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 531  |
| Pepco | 1-Day FEDEF | Monthly | MSCO | 1/21/31 | 181275 |  | &nbsp;&nbsp;&nbsp;&nbsp; 113187  |
| Per Aarsleff Holding A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 1452792 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 81605  |
| Perenti Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 183504 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 102869  |
| Perseus Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 107122 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 42048  |
| Persol Holdings Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 43710687 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 4751  |
| Perusahaan Gas Negara Tbk | 1-Day FEDEF + 0.35% | Monthly | MSCO | 6/22/26 | 142732 |  | &nbsp;&nbsp;&nbsp;&nbsp; 13614  |
| Perusahaan Perkebunan Lon | 1-Day FEDEF + 0.35% | Monthly | MSCO | 6/25/26 | 67072 |  | &nbsp;&nbsp;&nbsp;&nbsp; 842  |
| Petershill Partners PLC | 1-Day SONIA + 0.35% | Monthly | MSCO | 1/23/31 | 7322 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 4196  |
| Petronas Dagangan Bhd | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 129925 |  | &nbsp;&nbsp;&nbsp;&nbsp; (7818)  |
| Peugeot Invest SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/29 | 35319 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (1896)  |
| Pexip Holding | 1-Week NIBOR + 0.28% | Monthly | SEBA | 11/27/30 | 1181256 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 34576  |

---

<br> franklintempleton.com Semiannual Report 63

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| PGE Polska Grupa Energetyczna SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/15/26 | 264616 |  | &nbsp;&nbsp;&nbsp;&nbsp; $97241  |
| Pha Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 7/27/26 | 29094 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1655)  |
| Pharmanutra | Euro STR + 0.35% | Monthly | JPHQ | 11/23/26 | 26578 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2801  |
| Pharmaresearch | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 186034 |  | &nbsp;&nbsp;&nbsp;&nbsp; (27146)  |
| Pharmaron Beijing Co Ltd | HIBOR + 0.35% | Monthly | GSCO | 7/06/26 | 809420 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 12654  |
| Pharmicell | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/29/26 | 77692 |  | &nbsp;&nbsp;&nbsp;&nbsp; 17882  |
| Philippine National Bank | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 35018 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2735)  |
| Philogen | Euro STR + 0.35% | Monthly | JPHQ | 9/28/26 | 26841 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 854  |
| Pick n Pay Stores Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 8/30/28 | 1917553 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (5632)  |
| Picton Property Income Ltd | 1-Day SONIA + 0.275% | Monthly | MSCO | 7/22/30 | 97759 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 8548  |
| Pirelli & C | Euro STR + 0.35% | Monthly | JPHQ | 6/16/26 | 351226 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 4953  |
| PKO Bank Polski | 1-Day FEDEF + 1.25% | Monthly | MSCO | 11/06/30 | 186756 |  | &nbsp;&nbsp;&nbsp;&nbsp; 47782  |
| Plastic Omnium | 1-Day EONIA + 0.30% | Monthly | MSCO | 3/14/26 | 135299 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 94895  |
| Platzer Fastigheter Holdings | 1-Week STIBOR + 0.275% | Monthly | SEBA | 11/09/26 | 765213 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 1727  |
| Playtech PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 5/12/30 | 20442 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 99  |
| Plus Alpha Consulting Co | TONAR + 0.35% | Monthly | GSCO | 9/29/26 | 4661833 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1076)  |
| Pluxee NV | 1-Day EONIA + 0.275% | Monthly | MSCO | 6/09/26 | 193524 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (45232)  |
| Poco Ord | 1-Day FEDEF + 0.30% | Monthly | MSCS | 8/16/31 | 564988 |  | &nbsp;&nbsp;&nbsp;&nbsp;(384)  |
| Polar Capital Holdings PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 11/03/30 | 172898 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 19107  |
| Poly Property Services Co | HIBOR + 0.35% | Monthly | GSCO | 6/22/26 | 1802966 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 17952  |
| Pop Mart Intl Grp Ltd | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 857101 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (11942)  |
| PORR AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 94487 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 16878  |
| Poste Italiane SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 101021 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 36770  |
| Pou Chen | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/23/26 | 150596 |  | &nbsp;&nbsp;&nbsp;&nbsp; (6515)  |
| Power Wind Health Industry | 1-Day FEDEF + 0.10% | Monthly | MSCO | 11/23/26 | 4686 |  | &nbsp;&nbsp;&nbsp;&nbsp;(12)  |
| Powerlong Commercial Mgt | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 188261 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 1928 |
| Praemium Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 7/22/26 | 123330 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 12904  |
| Praram 9 Hospital Pcl | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 119693 |  | &nbsp;&nbsp;&nbsp;&nbsp; (26458)  |
| Primary Health Properties | 1-Day SONIA + 0.275% | Monthly | MSCO | 5/14/26 | 266398 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 8849  |
| Primax Electronics Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 174898 |  | &nbsp;&nbsp;&nbsp;&nbsp; 11031  |
| Proact IT Group AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 9/07/26 | 405456 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 6347  |
| Prosegur | 1-Day EONIA + 0.35% | Monthly | MSCS | 9/26/30 | 67644 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 3926  |
| Prosegur Cash SA | 1-Day EONIA + 0.275% | Monthly | MSCO | 6/08/26 | 23002 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(879)  |
| Pt Indofood Sukses Makmur | 1-Day FEDEF + 0.35% | Monthly | MSCO | 6/24/26 | 152700 |  | &nbsp;&nbsp;&nbsp;&nbsp; (14034)  |
| Pt Pakuwon Jati | 1-Day FEDEF + 0.35% | Monthly | MSCO | 6/25/26 | 61094 |  | &nbsp;&nbsp;&nbsp;&nbsp; 569  |
| Ptg Energy Public Company | 1-Day FEDEF + 0.25% | Monthly | MSCO | 8/26/26 | 34436 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2991)  |
| Pum Tech Korea Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 10/19/26 | 58698 |  | &nbsp;&nbsp;&nbsp;&nbsp; 996  |
| Qantas Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/19/26 | 292530 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (8923)  |
| Qbe Insur Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 8/14/26 | 155106 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (9355)  |
| QinetiQ Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/10/28 | 135622 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (25647)  |
| Quick Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 14300344 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 9999  |
| Rainbow | 1-Day FEDEF + 1.25% | Monthly | MSCS | 11/28/30 | 163384 |  | &nbsp;&nbsp;&nbsp;&nbsp; 48721  |
| Rakus Co Ltd | TONAR + 0.35% | Monthly | GSCO | 9/30/26 | 8126390 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (3806)  |
| Ramssol Group Berhad | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/14/26 | 37249 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2575  |
| Rank Group ORD | 1-Day SONIA + 0.275% | Monthly | MSCO | 11/07/30 | 64342 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(571)  |
| Raubex Group Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCO | 9/15/30 | 2757431 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (19214)  |

---

<br> 64 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Raydium Semi-Conductor Co | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/25/26 | 32484 |  | &nbsp;&nbsp;&nbsp;&nbsp; $(7176)  |
| Raysearch Laboratories AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 12/04/30 | 702862 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (5484)  |
| Rea Group Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 102511 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (10129)  |
| Realtek Semiconductor Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 281631 |  | &nbsp;&nbsp;&nbsp;&nbsp; (33030)  |
| Reg Health Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 279029 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 5638  |
| Regional REIT Ltd | 1-Day SONIA + 0.275% | Monthly | MSCO | 12/05/30 | 109227 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 4310  |
| Reply | Euro STR + 0.35% | Monthly | JPHQ | 5/13/26 | 273945 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (52620)  |
| Resolute Fpo | 1-Day SONIA + 0.275% | Monthly | MSCO | 6/24/26 | 155680 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 76911  |
| Resolute Mining Ltd. | 1-Day FEDEF | Monthly | MSCO | 12/18/30 | 4613 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 10266  |
| Restaurant Brands New Zealand | 1-Day NZOCR + 0.40% | Monthly | MSCO | 6/25/26 | 7446 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; 2740  |
| Reunert Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 8/15/30 | 1631048 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (3006)  |
| Riken Technos Corporation | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 13416475 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 28304  |
| Rinnai Corp | TONAR + 0.35% | Monthly | GSCO | 10/12/26 | 13759462 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 13755  |
| Robertet | 1-Day EONIA + 0.275% | Monthly | MSCO | 8/31/26 | 57957 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 4180  |
| Robinsons Retail Holdings | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 3709 |  | &nbsp;&nbsp;&nbsp;&nbsp;(590)  |
| Roche | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 302055 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 77611  |
| Rockwool AS | 1-Week CIBOR + 0.275% | Monthly | SEBA | 7/17/30 | 131132 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;(2)  |
| Rojana Industrial Park | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 35549 |  | &nbsp;&nbsp;&nbsp;&nbsp; 26  |
| Rolls-Royce Holdings PLC | 1-Day SONIA + 0.35% | Monthly | MSCO | 2/17/26 | 60612 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (1490)  |
| Royal Unibrew AS | 1-Week CIBOR + 0.275% | Monthly | SEBA | 7/03/28 | 1039895 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 23839  |
| Rubis | 1-Day EONIA + 0.30% | Monthly | MSCS | 8/12/30 | 181201 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 51761  |
| Ryobi Ltd | TONAR + 0.35% | Monthly | GSCO | 9/02/26 | 4126809 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(209)  |
| S&D | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 120224 |  | &nbsp;&nbsp;&nbsp;&nbsp; (38562)  |
| S-1 | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 147243 |  | &nbsp;&nbsp;&nbsp;&nbsp; 341  |
| Safran | 1-Day EONIA + 0.275% | Monthly | MSCO | 8/07/26 | 110170 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (6319)  |
| Saipem | Euro STR + 0.35% | Monthly | JPHQ | 10/14/30 | 251060 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 74988  |
| Sakai Moving Service | TONAR + 0.35% | Monthly | GSCO | 11/13/26 | 844552 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 74  |
| Samart Aviation Solutions | 1-Day FEDEF + 0.25% | Monthly | MSCO | 8/27/26 | 30525 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3234)  |
| Samsung Biologics Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 12/01/26 | 16467 |  | &nbsp;&nbsp;&nbsp;&nbsp;(70)  |
| Samsung E&A Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 182689 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2147)  |
| Samsung Electronics Co | 1-Day FEDEF + 0.10% | Monthly | MSCO | 11/13/26 | 16153 |  | &nbsp;&nbsp;&nbsp;&nbsp;(527)  |
| Samsung Securities | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 196015 |  | &nbsp;&nbsp;&nbsp;&nbsp; (6831)  |
| San Fang Chemical | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 129364 |  | &nbsp;&nbsp;&nbsp;&nbsp; (15181)  |
| Sangfor Technologies | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/30/26 | 30806 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1590)  |
| Sanhua ORD | 1-Day FEDEF | Monthly | MSCS | 2/10/31 | 310898 |  | &nbsp;&nbsp;&nbsp;&nbsp; 9311  |
| Sanix Holdings Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 3855012 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (3076)  |
| Sanko Gosei Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 7329190 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 12385  |
| Sankyo Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 11407909 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2434  |
| Santam Limited | 1-Day SABOR + 0.70% | Monthly | MSCO | 11/11/26 | 274287 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;(471)  |
| Sany Heavy Equipment | HIBOR + 0.35% | Monthly | GSCO | 11/19/26 | 433473 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 2188  |
| Sappi Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 11/27/30 | 8963343 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (211845)  |
| Sasol Ltd. | 1-Day SABOR + 0.33% | Monthly | MSCS | 7/17/30 | 4153674 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 135610 |
| Satellite Chemical | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 24767 |  | &nbsp;&nbsp;&nbsp;&nbsp; 922  |
| Sato Corporation | TONAR + 0.35% | Monthly | GSCO | 11/02/26 | 2670908 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 593  |
| SATS ASA | 1-Week NIBOR + 0.275% | Monthly | SEBA | 2/17/26 | 1944172 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 25038  |
| SAVILLS PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 311550 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (4759)  |

---

<br> franklintempleton.com Semiannual Report 65

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| SBI Holdings Inc | TONAR + 0.35% | Monthly | GSCO | 10/16/26 | 8441683 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; $676  |
| Scales Corporation Limited | 1-Day NZOCR + 0.40% | Monthly | MSCO | 6/24/26 | 129790 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; 13412  |
| Scanfil PLC | Euro STR + 0.275% | Monthly | SEBA | 10/17/30 | 19326 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 1475  |
| Scentre Stapled | 1-Day RBACR + 0.40% | Monthly | MSCO | 11/24/26 | 76445 | AUD | &nbsp;&nbsp;&nbsp;&nbsp;(39)  |
| Schindler | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/29/30 | 210172 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 18878  |
| Schouw & Co. | 1-Week NIBOR + 0.275% | Monthly | SEBA | 5/22/26 | 803801 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; (1159)  |
| Schweiter Technologies AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 9/24/30 | 117365 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (31852)  |
| Scout24 SE | Euro STR + 0.35% | Monthly | JPHQ | 12/06/30 | 231358 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (51851)  |
| Screen Holdings Co Ltd | TONAR + 0.35% | Monthly | GSCO | 9/10/26 | 12116442 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (3249)  |
| Secure Trust Bank PLC | 1-Day FEDEF | Monthly | MSCO | 12/17/30 | 38514 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 46923  |
| Securitas AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 3283881 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 355  |
| Security Bank Corporation | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 41825 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3597)  |
| Seiren Co Ltd | TONAR + 0.35% | Monthly | GSCO | 10/16/26 | 10886679 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2661  |
| Sekisui Chemical Co | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 14515591 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 5185  |
| Sekisui House Reit Inc | TONAR + 0.35% | Monthly | GSCO | 6/23/26 | 21993676 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 10151  |
| Semitec Corporation | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 6110288 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2115  |
| Senshu Electric Co | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 12206967 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 11755  |
| Seraku Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 7681738 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (2895)  |
| Serco Group | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/30/30 | 160272 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 94204  |
| Sevice Stream Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 374087 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 35747  |
| SF Holding Co Ltd | HIBOR + 0.35% | Monthly | GSCO | 7/03/26 | 812495 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (18226)  |
| SFA | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 114657 |  | &nbsp;&nbsp;&nbsp;&nbsp; (15311)  |
| SFS Group AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 2/08/29 | 92629 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (4453)  |
| SGX | 1-Day SORA + 0.40% | Monthly | MSCO | 6/25/26 | 98985 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 13344  |
| Shandong Wit Dyne | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 39436 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4282  |
| Shanghai Aiyingshi Co Ltd | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 21698 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1443)  |
| Shanghai Haohai Biologica | HIBOR + 0.35% | Monthly | GSCO | 10/06/26 | 265948 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 1486  |
| Shanghai Pharmaceuticals | HIBOR + 0.35% | Monthly | GSCO | 10/06/26 | 1047750 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (4115)  |
| Sharingtechnology Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 8749449 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1686)  |
| Shenergy Company | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 55978 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1470)  |
| Sheng Yu Steel | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 42907 |  | &nbsp;&nbsp;&nbsp;&nbsp; (8233)  |
| Shenzhen Hello | 1-Day FEDEF + 0.25% | Monthly | MSCO | 11/27/26 | 48112 |  | &nbsp;&nbsp;&nbsp;&nbsp; 317  |
| Shin ETSU Polymer Co | TONAR + 0.35% | Monthly | GSCO | 9/10/26 | 6733474 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 322  |
| Shin Maint Holdings Co Lt | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 1565634 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1850  |
| Shin Yang Group Berhad | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 22811 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3466  |
| Shinhan Financial Group | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/24/26 | 44170 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2281  |
| Shinnihonseiyaku Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 12268938 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (4594)  |
| Shinsegae Food Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 11/24/26 | 7108 |  | &nbsp;&nbsp;&nbsp;&nbsp;(104)  |
| Shinsegae Inc | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/24/26 | 99962 |  | &nbsp;&nbsp;&nbsp;&nbsp; 15547  |
| Ship Health Care Holdings | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 35328089 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 79231  |
| Shizuoka Financial Group | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 9966448 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 21490  |
| Shn Airport | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 49209 |  | &nbsp;&nbsp;&nbsp;&nbsp; 37  |
| Siemens Energy AG | Euro STR + 0.35% | Monthly | MSCS | 3/03/26 | 3428590 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 54081  |
| Siemens Energy AG | Euro STR + 0.35% | Monthly | JPHQ | 12/06/30 | 98177 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 20979  |
| Sigmahealth Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 9/24/26 | 165329 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (4885)  |
| Signify NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 272466 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 34480  |

---

<br> 66 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Siix Corp | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 21248218 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; $15720  |
| Sinar EKA Selaras TBK PT | 1-Day FEDEF + 0.35% | Monthly | MSCO | 9/24/26 | 20971 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2449)  |
| Sinch | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/30 | 2801917 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 71203  |
| Sinofert Holdings | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 630395 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 12553  |
| Sinopec Shanghai Petroche | HIBOR + 0.35% | Monthly | GSCO | 7/06/26 | 566246 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 1469  |
| Sisram Medical Ltd | HIBOR + 0.35% | Monthly | GSCO | 11/30/26 | 38953 | HKD | &nbsp;&nbsp;&nbsp;&nbsp;(37)  |
| Sitronix Technology Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 137524 |  | &nbsp;&nbsp;&nbsp;&nbsp; (21423)  |
| Skanska AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 3/24/26 | 2602456 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 12057  |
| Skellerup Holdings Npv | 1-Day NZOCR + 0.40% | Monthly | MSCO | 6/24/26 | 25931 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; 1644  |
| SKF AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 3/25/26 | 2751847 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 33132  |
| Sks Tech Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 45082 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 29266  |
| Sky Network Television Ltd | 1-Day NZOCR + 0.40% | Monthly | MSCO | 6/24/26 | 87345 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; 8487  |
| SL Corporation | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/24/26 | 93353 |  | &nbsp;&nbsp;&nbsp;&nbsp; 11627 |
| Sleep Cycle AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 11/03/30 | 235105 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (12323)  |
| SMA Solar Technology AG | Euro STR + 0.35% | Monthly | JPHQ | 9/12/29 | 135393 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 77873  |
| Smartgroup Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 324545 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 38377  |
| Smith & Nephew Plc Ord US | 1-Day SONIA + 0.275% | Monthly | MSCO | 10/08/26 | 94604 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (8035)  |
| Sofina | Euro STR + 0.35% | Monthly | JPHQ | 7/12/26 | 232961 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 4918  |
| <sup>e</sup>Softwareone Holding Ag | 1-Week NIBOR + 0.275% | Monthly | SEBA | 7/17/30 | - | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 98197  |
| Sogefi | Euro STR + 0.35% | Monthly | JPHQ | 11/14/30 | 69326 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 66986  |
| Soken Chemical & Engineer | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 7552130 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 34981  |
| Solstad Offshore | 1-Week NIBOR + 0.28% | Monthly | SEBA | 11/27/30 | 876092 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 11640  |
| Solutions 30 | 1-Day EONIA + 0.30% | Monthly | MSCS | 11/27/28 | 44142 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (21820)  |
| Soop Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 7/23/26 | 172754 |  | &nbsp;&nbsp;&nbsp;&nbsp; (33359)  |
| Southchip Semiconductor | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/23/26 | 39505 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4918  |
| Southern Cable Group Berhad | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 21605 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3397  |
| SP Group A/S | 1-Week CIBOR + 0.275% | Monthly | SEBA | 9/10/30 | 529505 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 4035  |
| The Spar Group Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCO | 9/15/30 | 7272543 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (70632)  |
| Sparekassen Sjaelland | 1-Week CIBOR + 0.275% | Monthly | SEBA | 3/14/26 | 124714 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 5012  |
| Spc Samlip | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 62551 |  | &nbsp;&nbsp;&nbsp;&nbsp; (8899)  |
| Speed Tech | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 83464 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3182)  |
| Speedy Hire PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 84907 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (21800)  |
| SPIE | 1-Day EONIA + 0.275% | Monthly | MSCO | 6/16/30 | 47744 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 1059  |
| Sports Toto Berhad | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/14/26 | 37016 |  | &nbsp;&nbsp;&nbsp;&nbsp;(542)  |
| Springer Nature Ag & Co | Euro STR + 0.35% | Monthly | JPHQ | 8/10/26 | 38248 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 1221  |
| Srg Global Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 95078 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 40787  |
| SSAB AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 1892840 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 3301  |
| St James's Place Ord | 1-Day SONIA + 0.275% | Monthly | MSCO | 7/05/29 | 111375 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 10822  |
| Standard Chartered PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 138325 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 130190  |
| Standard Chem & Pharm Co | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/14/26 | 21442 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2066  |
| Starhill GBL Reit | 1-Day SORA + 0.40% | Monthly | MSCO | 6/25/26 | 90284 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 8651  |
| Starhub | 1-Day SORA + 0.40% | Monthly | MSCO | 6/25/26 | 92914 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (1635)  |
| Startia Hldgs Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 9010550 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1533)  |
| Starts Corporation | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 29036912 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 24000  |
| Sth X Elec Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 127472 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 25765  |
| Stillfront Group AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 1070067 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 31421  |

---

<br> franklintempleton.com Semiannual Report 67

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Stora Enso Oyj | Euro STR + 0.28% | Monthly | SEBA | 10/23/28 | 145024 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; $5477  |
| Storytel AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 5/08/26 | 3534537 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (30480)  |
| STRABAG SE | Euro STR + 0.35% | Monthly | JPHQ | 7/12/26 | 52448 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 7086  |
| Subaru Corporation | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 14347411 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 40324  |
| Subsea 7 | 1-Week NIBOR + 0.275% | Monthly | SEBA | 7/09/26 | 2114685 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 7333  |
| Sulzer Ltd. | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/11/30 | 299759 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 42708  |
| Sumitomo Mitsui Trust GP | TONAR + 0.35% | Monthly | GSCO | 10/19/26 | 14096625 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 8145  |
| Sun International Hotels Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 5/20/26 | 2337741 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (4666)  |
| Sunowealth Electric Mach | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/23/26 | 110581 |  | &nbsp;&nbsp;&nbsp;&nbsp; 27191  |
| Sunshine Insurance Group | HIBOR + 0.35% | Monthly | GSCO | 9/18/26 | 389588 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (1497)  |
| Sunway Construction Group | 1-Day FEDEF + 0.25% | Monthly | MSCO | 7/02/26 | 99768 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2878  |
| Sunway Real Estate Invt | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 79081 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6881  |
| Suprema Inc | 1-Day FEDEF + 0.10% | Monthly | MSCO | 10/29/26 | 50717 |  | &nbsp;&nbsp;&nbsp;&nbsp;(772)  |
| Suzuken Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 21512487 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 22999  |
| Suzuki Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 10249095 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 19158  |
| Sveafastigheter AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 6/02/26 | 824997 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 7386  |
| Swedish Orphan Biovitrum AB | 1-Week STIBOR + 0.65% | Monthly | SEBA | 7/15/26 | 497978 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 9931  |
| Swire Pacific | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 953240 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (2437)  |
| Synektik | 1-Day FEDEF + 1.25% | Monthly | MSCS | 9/05/30 | 109130 |  | &nbsp;&nbsp;&nbsp;&nbsp; 95624  |
| Synnex Technology Interna | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 68902 |  | &nbsp;&nbsp;&nbsp;&nbsp; (4868)  |
| T&L | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 79956 |  | &nbsp;&nbsp;&nbsp;&nbsp; (18520)  |
| Taiwan Paiho | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 132168 |  | &nbsp;&nbsp;&nbsp;&nbsp; (4232)  |
| Taiwan Semiconductor Manufacturing | 1-Day FEDEF + 0.10% | Monthly | MSCO | 11/12/26 | 47494 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1680)  |
| Taiwan Surface Mounting | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 227157 |  | &nbsp;&nbsp;&nbsp;&nbsp; (24700)  |
| Takaoka Toko Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 11749488 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 43501  |
| Take & Give Needs Co | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 8051105 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (6268)  |
| Talanx AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/26 | 115490 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 22739  |
| Tauron Polska Energia SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/26 | 106508 |  | &nbsp;&nbsp;&nbsp;&nbsp; 93128  |
| Tazmo Co Ltd | TONAR + 0.35% | Monthly | GSCO | 9/30/26 | 4947225 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (4059)  |
| TBC Bank Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 93419 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 28555 |
| TCK | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 91506 |  | &nbsp;&nbsp;&nbsp;&nbsp; 17916  |
| TCL Electronics Holdings | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 1488094 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 12284  |
| Team Internet Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/26 | 185988 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (151721)  |
| Tecan Group AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 5/09/29 | 72817 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (4684)  |
| Techmatrix Corp | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 14593592 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (2194)  |
| Technip Energies NV | 1-Day EONIA + 0.30% | Monthly | MSCS | 8/07/29 | 137343 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (19287)  |
| Technogym SpA | Euro STR + 0.35% | Monthly | JPHQ | 8/12/30 | 257455 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 158716  |
| Teikoku Electric Mfg | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 5743313 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1369)  |
| TelefonicaSA | 1-Day EONIA + 0.275% | Monthly | MSCO | 7/28/26 | 117630 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (19072)  |
| Teleperformance | 1-Day EONIA + 0.275% | Monthly | MSCO | 3/24/26 | 197674 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (69341)  |
| Telkom SA SOC Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 7/17/30 | 481594 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (1008)  |
| Temenos | 1-Day SARON + 0.35% | Monthly | JPHQ | 6/08/26 | 267253 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 42993  |
| Ten Square Games | 1-Day FEDEF + 1.25% | Monthly | MSCS | 1/06/31 | 54683 |  | &nbsp;&nbsp;&nbsp;&nbsp; 10366  |
| Teo Seng Capital Bhd | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 22780 |  | &nbsp;&nbsp;&nbsp;&nbsp; 469  |
| Tera Probe Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 14060879 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 73248  |
| Terrasky Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 12603316 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (22447)  |

---

<br> 68 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Tessenderlo Group | Euro STR + 0.35% | Monthly | JPHQ | 7/17/29 | 45404 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; $1973  |
| TF1 Group | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/12/26 | 205916 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 12703  |
| Thai Foods Group Public Co | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 138688 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3045  |
| Tharisa PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 36067 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 3134  |
| Thungela Resources Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 8/23/30 | 5101002 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (83221)  |
| ThyssenKrupp AG | Euro STR + 0.35% | Monthly | JPHQ | 11/27/30 | 105983 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 11104  |
| Tian Lun Gas Holdings Ltd | HIBOR + 0.35% | Monthly | GSCO | 7/23/26 | 210199 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (4026)  |
| TIM SpA | Euro STR + 0.35% | Monthly | JPHQ | 11/27/30 | 83123 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 41547  |
| TK Group Limited | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 305764 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 2557  |
| Toa Paint Thailand Pcl | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/03/26 | 50753 |  | &nbsp;&nbsp;&nbsp;&nbsp; (7294)  |
| Tokai Carbon Corp | TONAR + 0.35% | Monthly | GSCO | 7/20/26 | 7759443 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 337  |
| Topco Technologies Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 29478 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2318)  |
| Topkey Corporation | 1-Day FEDEF + 0.10% | Monthly | MSCO | 10/02/26 | 88874 |  | &nbsp;&nbsp;&nbsp;&nbsp; (7140)  |
| Torunlar GYO | 1-Day FEDEF + 1.25% | Monthly | MSCS | 7/12/26 | 95174 |  | &nbsp;&nbsp;&nbsp;&nbsp; 20130  |
| Toshiba Tec Corp | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 7210436 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(598)  |
| Toumei Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 6861473 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1526  |
| Tovis | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 84276 |  | &nbsp;&nbsp;&nbsp;&nbsp; (5572)  |
| Tower Ltd Npv | 1-Day NZOCR + 0.40% | Monthly | MSCO | 6/24/26 | 90415 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; 11110  |
| Toyota Boshoku Corp | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 16399116 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 23764  |
| Trainline PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/28 | 101389 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (14869)  |
| Transcosmos Inc | TONAR + 0.35% | Monthly | GSCO | 10/12/26 | 9770381 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1995  |
| Travelsky Technology | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 1484118 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (1320)  |
| Travis Perkins PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 64328 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 7906  |
| Treasure Factory Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 3628455 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (2195)  |
| Trevi Fin Ind | Euro STR + 0.35% | Monthly | JPHQ | 11/30/26 | 4465 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 161  |
| Triple Point Social Housing | 1-Day SONIA + 0.35% | Monthly | MSCO | 1/06/31 | 77451 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 15840  |
| Tripod Technology Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 184275 |  | &nbsp;&nbsp;&nbsp;&nbsp; 20206  |
| Triputra Agro Persada Tbk | 1-Day FEDEF + 0.35% | Monthly | MSCO | 7/02/26 | 43878 |  | &nbsp;&nbsp;&nbsp;&nbsp; 18432  |
| Tty Biopharm Company Limited | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 140668 |  | &nbsp;&nbsp;&nbsp;&nbsp; 153  |
| TUI AG | Euro STR + 0.35% | Monthly | JPHQ | 4/30/26 | 234071 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 77901  |
| Turk Telekom | 1-Day FEDEF + 1.25% | Monthly | MSCO | 6/30/26 | 180810 |  | &nbsp;&nbsp;&nbsp;&nbsp; (14134)  |
| Turkcell | 1-Day FEDEF + 1.25% | Monthly | MSCO | 9/24/26 | 223399 |  | &nbsp;&nbsp;&nbsp;&nbsp; (14051)  |
| Turkiye Hava Yollari | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/28 | 102190 |  | &nbsp;&nbsp;&nbsp;&nbsp; (15796)  |
| Turkiye Sinai Kalkinma Bankasi AS | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/27/30 | 250857 |  | &nbsp;&nbsp;&nbsp;&nbsp; (11182)  |
| Ulker Biskuvi | 1-Day FEDEF + 1.25% | Monthly | MSCO | 9/24/26 | 161626 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1998  |
| Ulvac Inc | TONAR + 0.35% | Monthly | GSCO | 10/12/26 | 12961261 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1497)  |
| U-Media Communication Inc | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 13632 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1774)  |
| Umicore | Euro STR + 0.35% | Monthly | JPHQ | 11/21/30 | 219470 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 118085  |
| Unicaja Banco | 1-Day EONIA + 0.35% | Monthly | MSCS | 11/13/28 | 87408 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 9926  |
| UniCredit SpA | Euro STR + 0.35% | Monthly | JPHQ | 9/25/30 | 204999 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 84710  |
| Unid | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 168203 |  | &nbsp;&nbsp;&nbsp;&nbsp; (49756)  |
| Unipol Gruppo SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/15/26 | 28280 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 4605  |
| Uni-President China Holdings | HIBOR + 0.35% | Monthly | GSCO | 8/05/26 | 828114 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (14084)  |
| Unistore Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 98214 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 9142  |
| Unitech Printed Circuit | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/25/26 | 71653 |  | &nbsp;&nbsp;&nbsp;&nbsp; (8063)  |
| United Energy Group Ltd | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 1215522 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (5607) |

---

<br> franklintempleton.com Semiannual Report 69

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| United Micro Electronics | 1-Day FEDEF + 0.10% | Monthly | MSCO | 11/04/26 | 58822 |  | &nbsp;&nbsp;&nbsp;&nbsp; $(1993)  |
| United Orthopedic Corporation | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/23/26 | 48150 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1107)  |
| United Tractors | 1-Day FEDEF + 0.35% | Monthly | MSCO | 6/25/26 | 22197 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3662  |
| Universal Robina Corporation | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/30/26 | 63855 |  | &nbsp;&nbsp;&nbsp;&nbsp; (9457)  |
| Universal Vision Biotechn | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 174879 |  | &nbsp;&nbsp;&nbsp;&nbsp; (44062)  |
| UT Group Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 10238045 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 11060  |
| Valeo | 1-Day EONIA + 0.30% | Monthly | MSCS | 10/09/30 | 305506 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 52291  |
| Valiant | Euro STR + 0.35% | Monthly | JPHQ | 7/12/26 | 175254 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 45844  |
| Valmet OYJ | Euro STR + 0.28% | Monthly | SEBA | 8/05/29 | 148386 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (2987)  |
| Valor Holdings Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 33732721 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 65880  |
| Value Added Technologies | 1-Day FEDEF + 0.10% | Monthly | MSCO | 10/29/26 | 28176 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1497)  |
| Valuetronics | 1-Day SORA + 0.40% | Monthly | MSCO | 6/25/26 | 65173 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 9099  |
| Vaudoise Assurances | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/11/30 | 130619 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 37786  |
| Vector Inc | 1-Day NZOCR + 0.40% | Monthly | GSCO | 6/24/26 | 19054827 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 12737  |
| Vector Limited Npv | 1-Day NZOCR + 0.40% | Monthly | MSCO | 6/24/26 | 22613 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; 1224  |
| Veidekke | 1-Week NIBOR + 0.28% | Monthly | SEBA | 8/26/30 | 1811686 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 22278  |
| Velesto Energy Berhad | 1-Day FEDEF + 0.25% | Monthly | MSCO | 9/14/26 | 87803 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3377)  |
| Ventia Fpo | 1-Day RBACR + 0.40% | Monthly | MSCO | 6/24/26 | 252017 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 27455  |
| Venture Life Group PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 11/03/30 | 22040 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 12841  |
| Veolia Environnement SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 8/26/30 | 177833 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 9048  |
| Vertu Motors PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 56967 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (2895)  |
| Vestas Wind Systems AS | 1-Week CIBOR + 0.275% | Monthly | SEBA | 5/13/26 | 1699296 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 96314  |
| Vicat SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 8/30/30 | 140943 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 123833  |
| Vidrala SA | 1-Day EONIA + 0.275% | Monthly | MSCO | 8/13/26 | 220038 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (16968)  |
| Vienna Insurance Group AG | Euro STR + 0.35% | Monthly | JPHQ | 12/18/30 | 157949 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 48299  |
| Viridien | 1-Day EONIA + 0.275% | Monthly | MSCO | 8/14/26 | 131326 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 68802  |
| Visco Vision Inc | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 115577 |  | &nbsp;&nbsp;&nbsp;&nbsp; (11787)  |
| Vitzrocell Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 7/28/26 | 44342 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2669)  |
| Vodafone Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCO | 1/20/31 | 152868 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 61342  |
| Voestalpine AG | Euro STR + 0.35% | Monthly | JPHQ | 12/18/30 | 169843 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 136138  |
| Volex PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/18/29 | 20705 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 3531  |
| Vontobel | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 86005 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 11105  |
| Vtech Hldgs | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 726405 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 10087  |
| Vusion Group | 1-Day EONIA + 0.275% | Monthly | MSCO | 10/28/26 | 213124 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (12936)  |
| Wallenius Wilhelmsen ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/26 | 4333983 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 12089  |
| Warehouse Group Ord Npv | 1-Day NZOCR + 0.40% | Monthly | MSCO | 6/24/26 | 12369 | NZD | &nbsp;&nbsp;&nbsp;&nbsp;(268)  |
| Wartsila Corp. | Euro STR + 0.275% | Monthly | SEBA | 10/17/30 | 87906 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 58476  |
| Wasco Berhad | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/25/26 | 35719 |  | &nbsp;&nbsp;&nbsp;&nbsp; 615  |
| Waseda Academy | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 6661629 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(474)  |
| Wasion Holdings Ltd | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 814071 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 82955  |
| Watkin Jones PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 116727 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (94068)  |
| WBHO Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCO | 12/04/30 | 1854275 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (16573)  |
| WH Group Limited | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 886745 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 7879  |
| Wickes Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/30 | 118922 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 67943  |
| Wnc Corporation | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 106117 |  | &nbsp;&nbsp;&nbsp;&nbsp; (21770)  |
| Wonderful Hi-Tech | 1-Day FEDEF + 0.10% | Monthly | MSCO | 7/17/26 | 119045 |  | &nbsp;&nbsp;&nbsp;&nbsp; (7910)  |

---

<br> 70 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Woori Net Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 11/03/26 | 25979 |  | &nbsp;&nbsp;&nbsp;&nbsp; $(364)  |
| World Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 5881103 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 9003  |
| Wowprime Corp | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 337608 |  | &nbsp;&nbsp;&nbsp;&nbsp; (62348)  |
| Wt Microelectronics Co Lt | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 197865 |  | &nbsp;&nbsp;&nbsp;&nbsp; 7537  |
| Wuxi Apptec Co Ltd | HIBOR + 0.35% | Monthly | GSCO | 6/26/26 | 1336111 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 38347  |
| Wuxi Biologics | HIBOR + 0.35% | Monthly | GSCO | 8/18/26 | 657038 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (2423)  |
| WW Holding Inc | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 50508 |  | &nbsp;&nbsp;&nbsp;&nbsp; (9367)  |
| XD Inc | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 594523 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 32512  |
| Xian Shaangu Power | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 92082 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1489  |
| Xin Point Hldgs Ltd | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 470825 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (1774)  |
| Yamabiko Corporation | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 7141303 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 13271  |
| Yamaguchi Financial Group | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 27458490 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 54358  |
| Yamazaki Baking Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 12073295 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2399  |
| &nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup>Yangzijiang Maritime Development <br>Ltd | 1-Day SORA + 0.40% | Monthly | MSCO | 6/22/26 | - | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 46277  |
| Yank Zi Jiang Financial Holdings | 1-Day SORA + 0.40% | Monthly | MSCO | 6/22/26 | 63750 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (17231)  |
| Yara International ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/30 | 2043510 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (4399)  |
| Youngoneholdings | 1-Day FEDEF + 0.10% | Monthly | MSCO | 6/24/26 | 127537 |  | &nbsp;&nbsp;&nbsp;&nbsp; 20733 |
| YU Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCO | 2/17/26 | 104743 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 4409  |
| Yue Yuen Industrial Hldgs | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 242739 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 12128  |
| Yuexiu Services Group Ltd | HIBOR + 0.35% | Monthly | GSCO | 6/25/26 | 474454 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (8626)  |
| Zanyu Technology | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 33600 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3794  |
| Zehnder | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 106701 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 73978  |
| Zeria Pharmaceutical | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 21644433 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 906  |
| Zero Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 13568922 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 4040  |
| Zero One Technology | 1-Day FEDEF + 0.10% | Monthly | MSCO | 10/28/26 | 98193 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1345  |
| Zeus Co Ltd | 1-Day FEDEF + 0.10% | Monthly | MSCO | 9/02/26 | 40908 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1218)  |
| Zhejiang China Electic | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 119066 |  | &nbsp;&nbsp;&nbsp;&nbsp; 15340  |
| Zhen Ding Technology Holdings | 1-Day FEDEF + 10.625% | Monthly | MSCO | 6/24/26 | 93345 |  | &nbsp;&nbsp;&nbsp;&nbsp; 22419  |
| Zhengzhou Coal Mining | 1-Day FEDEF + 0.25% | Monthly | MSCO | 6/24/26 | 37854 |  | &nbsp;&nbsp;&nbsp;&nbsp; 13859  |
| Zhenhua Chemical Ord | 1-Day FEDEF + 0.25% | Monthly | MSCS | 9/21/31 | 348573 |  | &nbsp;&nbsp;&nbsp;&nbsp; (26585)  |
| Zhuzhou CRRC Times Elec | HIBOR + 0.35% | Monthly | GSCO | 10/06/26 | 1495886 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (24902)  |
| Zigexn Co Ltd | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 21084082 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 6317  |
| Zotefoams Ord | 1-Day SONIA + 0.275% | Monthly | MSCO | 9/16/26 | 29721 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 920  |
| ZTE Ord | 1-Day FEDEF + 0.30% | Monthly | MSCS | 10/13/31 | 203384 |  | &nbsp;&nbsp;&nbsp;&nbsp; 15634  |
| Zuken Inc | TONAR + 0.35% | Monthly | GSCO | 6/24/26 | 9664029 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (7225)  |
| Zumtobel Group AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/30 | 25709 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (5121)  |
| Zurich Insurance | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/21/26 | 155526 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 2534  |
|  |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 12047078  |
| **Equity Contracts - Short<sup>d</sup>**<br>|  |  |  |  |  |  |  |
| AAK AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/30 | 1824766 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;(523)  |
| Aalberts NV | Euro STR - 0.30% | Monthly | JPHQ | 2/10/31 | 214338 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 12961  |
| Aaviation Fpo | 1-Day RBACR - 0.75% | Monthly | MSCO | 6/24/26 | 28933 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 8230  |
| ABC Arbitrage | 1-Day EONIA - 0.275% | Monthly | MSCO | 6/13/26 | 19381 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(635)  |
| Ability Opto Electronics | 1-Day FEDEF - 9.25% | Monthly | MSCO | 10/05/26 | 15845 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2901  |

---

<br> franklintempleton.com Semiannual Report 71

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; abrdn European Logistics Income <br>PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/26 | 111637 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; $63070  |
| Accor SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/26 | 207648 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (15447)  |
| Acer Inc | 1-Day FEDEF - 3.50% | Monthly | MSCO | 6/24/26 | 74368 |  | &nbsp;&nbsp;&nbsp;&nbsp; 13385  |
| Acerinox SA | 1-Day EONIA - 0.275% | Monthly | MSCO | 3/24/26 | 220792 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (25796)  |
| Ackermans & van Haaren | Euro STR - 0.30% | Monthly | JPHQ | 3/18/26 | 155908 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (31998)  |
| Addnode Group AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 7/17/30 | 1700457 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 13015  |
| Adlink Technology Inc | 1-Day FEDEF - 5.25% | Monthly | MSCO | 10/05/26 | 1360 |  | &nbsp;&nbsp;&nbsp;&nbsp;(14)  |
| Admicom Oyj | Euro STR - 0.275% | Monthly | SEBA | 11/04/26 | 6762 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 258  |
| Advance Residence Inv Corp | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 13969390 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (11347)  |
| Advanced Ceramic X Corp | 1-Day FEDEF - 7.375% | Monthly | MSCO | 6/24/26 | 11175 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1644  |
| Advanced Medical Solution | 1-Day SONIA - 0.275% | Monthly | MSCO | 7/17/30 | 100007 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (8548)  |
| Advantech Co Ltd | 1-Day FEDEF - 0.675% | Monthly | MSCO | 6/24/26 | 189749 |  | &nbsp;&nbsp;&nbsp;&nbsp; 33978  |
| Adyen | Euro STR - 0.30% | Monthly | JPHQ | 5/22/30 | 140679 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 10862  |
| Aeon Financial Service Co | 1-Day FEDEF - 0.25% | Monthly | GSCO | 11/13/26 | 10093290 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1549)  |
| Aeon Thana Sinsa Thailand | 1-Day FEDEF - 10.50% | Monthly | MSCO | 9/24/26 | 25976 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4612  |
| African Rainbow Minerals Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCO | 7/22/30 | 3558843 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (28960)  |
| Afrimat Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCO | 5/20/26 | 1732262 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 34013  |
| Afry Ab | 1-Week STIBOR - 0.275% | Monthly | SEBA | 6/18/26 | 660076 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (1723)  |
| Agilyx | 1-Week NIBOR - 4.25% | Monthly | SEBA | 8/07/30 | 314071 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 5362  |
| Air Liquide | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/30 | 119075 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(858)  |
| Airbus SE | 1-Day EONIA - 0.30% | Monthly | MSCO | 12/11/30 | 33379 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (7745)  |
| Airports of Thailand | 1-Day FEDEF - 2.50% | Monthly | MSCO | 6/23/26 | 141218 |  | &nbsp;&nbsp;&nbsp;&nbsp; (45164)  |
| Aixtron SE | Euro STR - 0.30% | Monthly | JPHQ | 3/20/26 | 17465 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(880)  |
| Akbank | 1-Day FEDEF - 1.50% | Monthly | MSCO | 9/21/26 | 99353 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3626)  |
| Akeso Inc | 1-Day HONIA - 0.40% | Monthly | GSCO | 9/11/26 | 274870 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 3758  |
| ALCON N | 1-Day SARON - 0.35% | Monthly | JPHQ | 8/12/30 | 114685 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 14842  |
| Allegro | 1-Day FEDEF - 2.13% | Monthly | MSCS | 7/12/26 | 181930 |  | &nbsp;&nbsp;&nbsp;&nbsp; (22652)  |
| Allfunds Group PLC | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 245198 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (130308)  |
| Alliance Bank Malaysia BE | 1-Day FEDEF - 9.875% | Monthly | MSCO | 11/19/26 | 6335 |  | &nbsp;&nbsp;&nbsp;&nbsp;(262)  |
| Allreal Holding AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/30 | 126565 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (20754)  |
| Alm. Brand A/S | 1-Week CIBOR - 0.75% | Monthly | SEBA | 7/26/30 | 1838346 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; (28478)  |
| Almirall SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 10/11/30 | 96255 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (55295)  |
| Alpha Networks Inc | 1-Day FEDEF - 2.90% | Monthly | MSCO | 7/22/26 | 73031 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1360)  |
| Also | 1-Day SARON - 0.35% | Monthly | JPHQ | 10/05/26 | 143437 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 15352 |
| Alstom SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/13/30 | 83788 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (5642)  |
| Alteogen | 1-Day FEDEF - 1.75% | Monthly | MSCO | 6/24/26 | 32833 |  | &nbsp;&nbsp;&nbsp;&nbsp; (8819)  |
| Alterea | 1-Day EONIA - 0.275% | Monthly | MSCO | 9/29/26 | 63864 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (3393)  |
| Amadeus It Group SA | 1-Day EONIA - 0.275% | Monthly | MSCO | 7/28/28 | 106294 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 10363  |
| Amaero Fpo | 1-Day RBACR - 13.50% | Monthly | MSCO | 7/09/26 | 42149 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 9225  |
| Ame Elite Consortium Berh | 1-Day FEDEF - 4.25% | Monthly | MSCO | 6/25/26 | 36662 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1118)  |
| &nbsp;&nbsp;&nbsp;&nbsp; AMG Advanced Metallurgical Group <br>NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 97689 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (120063)  |
| Amman Mineral Internasion | 1-Day FEDEF - 12.75% | Monthly | MSCO | 6/26/26 | 40834 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6203  |
| Amper SA | 1-Day EONIA - 4.50% | Monthly | MSCO | 9/10/30 | 97239 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (7232)  |
| Amplifon | Euro STR - 0.30% | Monthly | JPHQ | 11/27/30 | 100166 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 26544  |

---

<br> 72 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Amplitude Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 91989 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; $(15310)  |
| AmRest | 1-Day FEDEF -1.50% | Monthly | MSCS | 7/17/30 | 20734 |  | &nbsp;&nbsp;&nbsp;&nbsp;(306)  |
| Anadolu Efes | 1-Day FEDEF - 7.75% | Monthly | MSCO | 11/03/26 | 34173 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2433)  |
| Andritz AG | Euro STR - 0.30% | Monthly | JPHQ | 8/07/26 | 75023 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(738)  |
| Angang Steel Co Lt | 1-Day FEDEF - 12.45% | Monthly | MSCO | 6/24/26 | 39403 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3826)  |
| Anglo American Platinum Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 8/15/30 | 2425373 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (4716)  |
| Anglo Pacific Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/30 | 57987 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (38955)  |
| Anheuser-Busch InBev SA/NV | Euro STR - 0.30% | Monthly | JPHQ | 7/13/30 | 179855 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (4371)  |
| ANP | 1-Day FEDEF - 3.25% | Monthly | MSCO | 6/24/26 | 113228 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3488  |
| Anta Sports Products | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 728530 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 8574  |
| Antofagasta PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 2/17/26 | 30468 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (29923)  |
| Anymind Group Inc | TONAR - 0.275% | Monthly | GSCO | 11/19/26 | 342791 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 99  |
| Aozora Bank | TONAR - 0.75% | Monthly | GSCO | 11/13/26 | 4756984 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (2014)  |
| Apa Group Stapled | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 118539 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (6153)  |
| Aperam | Euro STR - 0.30% | Monthly | JPHQ | 6/06/30 | 81968 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (3611)  |
| Aplex Technology Inc | 1-Day FEDEF - 5.25% | Monthly | MSCO | 6/24/26 | 13277 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1058  |
| Apotea AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 8/25/26 | 747185 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 6442  |
| Appier Group Inc | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 19490050 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 38927  |
| Arb Corp Fpo | 1-Day RBACR - 0.875% | Monthly | MSCO | 6/24/26 | 229991 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (15025)  |
| Arbonia AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/08/30 | 157567 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 70004  |
| Arcadis | Euro STR - 0.30% | Monthly | JPHQ | 4/04/26 | 90788 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 11657  |
| Arcelik | 1-Day FEDEF - 5.00% | Monthly | MSCS | 7/17/26 | 85679 |  | &nbsp;&nbsp;&nbsp;&nbsp; 20563  |
| Argan SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/30 | 96690 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 699  |
| Ascopiave SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 31749 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (2070)  |
| Ashmore Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/19/29 | 74676 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 2298  |
| Ashtead Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCO | 12/16/30 | 102930 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 2450  |
| Asia Polymer | 1-Day FEDEF - 5.25% | Monthly | MSCO | 6/24/26 | 37065 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1448)  |
| Asmpt Ltd | 1-Day HONIA - 0.40% | Monthly | GSCO | 9/11/26 | 345770 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (1017)  |
| ASR Nederland | Euro STR - 0.30% | Monthly | JPHQ | 6/13/26 | 255341 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (62949)  |
| Assa Abloy AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/30 | 604870 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (8524)  |
| Assystem | 1-Day EONIA - 2.75% | Monthly | MSCO | 9/25/30 | 65776 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 7839  |
| Asterasys Co Ltd | 1-Day FEDEF - 15.00% | Monthly | MSCO | 9/17/26 | 5537 |  | &nbsp;&nbsp;&nbsp;&nbsp;(210)  |
| Astroscale Holdings Inc | TONAR - 10.00% | Monthly | GSCO | 8/24/26 | 2463673 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(805)  |
| Ate Energy International | 1-Day FEDEF - 7.25% | Monthly | MSCO | 6/24/26 | 28468 |  | &nbsp;&nbsp;&nbsp;&nbsp; (4089)  |
| Atos | 1-Day EONIA - 4.625% | Monthly | MSCO | 10/23/26 | 84845 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 9679  |
| Atrium Ljungberg AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 5/25/26 | 73035 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;(704)  |
| Aub Group Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 183435 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (7379)  |
| Auden Techno Corp | 1-Day FEDEF - 3.75% | Monthly | MSCO | 8/04/26 | 18157 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1599  |
| Audinategl Fpo | 1-Day RBACR - 3.38% | Monthly | MSCO | 6/24/26 | 145869 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 30958  |
| Aura En Fpo | 1-Day RBACR - 13.00% | Monthly | MSCO | 6/24/26 | 29409 | AUD | &nbsp;&nbsp;&nbsp;&nbsp;(711)  |
| Aust Ag Co Fpo | 1-Day RBACR - 1.50% | Monthly | MSCO | 6/24/26 | 55304 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (1177)  |
| AUTO1 Group SE | Euro STR - 0.75% | Monthly | JPHQ | 7/14/26 | 101762 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (54377)  |
| Autopartner | 1-Day FEDEF - 3.25% | Monthly | MSCO | 9/18/30 | 83707 |  | &nbsp;&nbsp;&nbsp;&nbsp; 5717  |
| Avangaad Berhad | 1-Day FEDEF - 4.00% | Monthly | MSCO | 6/29/26 | 6525 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1038)  |
| Aviva | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/23/30 | 48303 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (7339)  |
| Ayala Land Inc | 1-Day FEDEF - 2.50% | Monthly | MSCO | 6/19/26 | 49333 |  | &nbsp;&nbsp;&nbsp;&nbsp; 9817  |

---

<br> franklintempleton.com Semiannual Report 73

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Az-Com Maruwa Holdings | TONAR - 0.35% | Monthly | GSCO | 7/09/26 | 10362453 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; $4561  |
| Azelis Holding SA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 168883 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 63352  |
| Baltic Classifieds Group | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/12/26 | 95027 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 35090  |
| Banca Generali SpA | Euro STR - 0.30% | Monthly | JPHQ | 9/21/26 | 36014 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (5983)  |
| Bangkok Chain Hospital | 1-Day FEDEF - 8.50% | Monthly | MSCO | 10/08/26 | 13215 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2818  |
| Bangkok Dusit Medical Services | 1-Day FEDEF - 0.40% | Monthly | MSCO | 6/24/26 | 107983 |  | &nbsp;&nbsp;&nbsp;&nbsp; 8019  |
| Bank Central Asia | 1-Day FEDEF - 6.50% | Monthly | MSCO | 8/06/26 | 177583 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1670 |
| Bank Handlowy | 1-Day FEDEF - 0.50% | Monthly | MSCO | 4/03/26 | 102006 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4353  |
| Bank Islam Malaysia Berha | 1-Day FEDEF - 3.50% | Monthly | MSCO | 7/08/26 | 38047 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1344)  |
| Bank Mandiri | 1-Day FEDEF - 4.00% | Monthly | MSCO | 7/14/26 | 160018 |  | &nbsp;&nbsp;&nbsp;&nbsp;(801)  |
| Bank of the Philippine | 1-Day FEDEF - 2.50% | Monthly | MSCO | 6/25/26 | 148439 |  | &nbsp;&nbsp;&nbsp;&nbsp; 11943  |
| Bank of Zheng Zhou | 1-Day FEDEF - 13.35% | Monthly | MSCO | 6/24/26 | 25500 |  | &nbsp;&nbsp;&nbsp;&nbsp; 697  |
| Bankinter SA | 1-Day EONIA - 0.35% | Monthly | MSCO | 3/06/26 | 86110 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (81180)  |
| Banque Cantonale Vaudoise | Euro STR - 0.35% | Monthly | JPHQ | 7/12/26 | 304872 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (32651)  |
| Baowu Magnesium | 1-Day FEDEF - 9.663% | Monthly | MSCO | 8/06/26 | 18190 |  | &nbsp;&nbsp;&nbsp;&nbsp; 665  |
| Barito Pacific Tbk | 1-Day FEDEF - 4.00% | Monthly | MSCO | 6/22/26 | 28847 |  | &nbsp;&nbsp;&nbsp;&nbsp; (12631)  |
| Barratt Redrow PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/24/26 | 253112 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 17572  |
| Barry Callebaut | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/13/30 | 102182 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (39506)  |
| Basic-Fit | Euro STR - 1.75% | Monthly | JPHQ | 7/14/26 | 80085 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (46802)  |
| BBMG Corporation | 1-Day HONIA - 0.40% | Monthly | GSCO | 7/09/26 | 402444 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 4247  |
| BCI Mineral Fpo | 1-Day RBACR - 18.00% | Monthly | MSCO | 6/24/26 | 39015 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (2321)  |
| BDO Unibank Inc | 1-Day FEDEF - 2.50% | Monthly | MSCO | 8/06/26 | 102411 |  | &nbsp;&nbsp;&nbsp;&nbsp; 7251  |
| BE Semiconductor Industries | Euro STR - 0.30% | Monthly | JPHQ | 2/28/26 | 119391 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (56699)  |
| Bechtle AG | Euro STR - 8.25% | Monthly | JPHQ | 3/04/26 | 79455 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (11795)  |
| Befesa SA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/26 | 147341 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (38284)  |
| Beiersdorf AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 43816 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(122)  |
| Beijer Ref AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/30 | 2199382 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 2667  |
| Beijing Capital Int Airport | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 2012348 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 9420  |
| Beijing Enterprises Water | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 1778844 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (3239)  |
| Beijing Tong Ren Tang Chi | 1-Day HONIA - 3.25% | Monthly | GSCO | 6/25/26 | 934539 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (4991)  |
| Belimo Holding AG | Euro STR - 0.35% | Monthly | JPHQ | 7/17/30 | 122183 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (70872)  |
| Bell Systems 24 Holdings Inc | TONAR - 0.35% | Monthly | GSCO | 10/12/26 | 8124554 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (3887)  |
| Ben Ade Bk Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 108632 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 13965  |
| Benefit | 1-Day FEDEF - 4.00% | Monthly | MSCO | 11/03/26 | 125840 |  | &nbsp;&nbsp;&nbsp;&nbsp; (18714)  |
| Benq Materials Corporation | 1-Day FEDEF - 5.00% | Monthly | MSCO | 9/23/26 | 25562 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2269  |
| Bergman & Beving Aktiebol | 1-Week STIBOR - 0.275% | Monthly | SEBA | 5/19/26 | 748644 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (1002)  |
| Berli Jucker Pcl | 1-Day FEDEF - 18.875% | Monthly | MSCO | 9/28/26 | 33620 |  | &nbsp;&nbsp;&nbsp;&nbsp; 8001  |
| Bermaz Auto Berhad | 1-Day FEDEF - 5.25% | Monthly | MSCO | 7/13/26 | 1214 |  | &nbsp;&nbsp;&nbsp;&nbsp; 324  |
| Better Collective A/S | 1-Week STIBOR - 0.275% | Monthly | SEBA | 10/09/30 | 711693 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 3039  |
| BFF Bank SpA | Euro STR - 0.30% | Monthly | JPHQ | 10/16/26 | 154365 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (76758)  |
| BHP Group Ltd | 1-Day SONIA - 1.52% | Monthly | MSCO | 12/02/30 | 54330 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (2195)  |
| BIC | 1-Day EONIA - 0.275% | Monthly | MSCO | 8/27/26 | 10312 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 370  |
| Bid Corporation Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCO | 12/01/30 | 1324297 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 3822  |
| Biesse | Euro STR - 0.80% | Monthly | JPHQ | 9/04/30 | 13038 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 686  |
| Bim Magazalar | 1-Day FEDEF - 0.75% | Monthly | MSCO | 9/21/26 | 50002 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1  |

---

<br> 74 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Binex | 1-Day FEDEF - 6.38% | Monthly | MSCO | 6/24/26 | 76933 |  | &nbsp;&nbsp;&nbsp;&nbsp; $12696  |
| Bioarctic AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 7/17/26 | 739788 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (20272)  |
| Bionime Corporation | 1-Day FEDEF - 4.75% | Monthly | MSCO | 6/24/26 | 22361 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4108  |
| Bioplus Co Ltd | 1-Day FEDEF - 4.00% | Monthly | MSCO | 9/07/26 | 18831 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2083  |
| BKW | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/27/26 | 40883 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;(224)  |
| Bloomsbury Publishing Ord | 1-Day SONIA - 0.275% | Monthly | MSCO | 9/16/26 | 77165 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (3280)  |
| Blue Moon Group Hldgs Ltd | 1-Day HONIA - 5.25% | Monthly | GSCO | 6/25/26 | 1064154 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 32271  |
| BlueNord ASA | 1-Week NIBOR - 0.275% | Monthly | SEBA | 8/28/30 | 555725 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 2761  |
| BMW Group | Euro STR - 0.30% | Monthly | JPHQ | 5/15/26 | 80683 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (8179)  |
| Bollore SE | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/30 | 333299 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 35555  |
| Borregaard ASA | 1-Week NIBOR - 0.275% | Monthly | SEBA | 5/07/26 | 1061141 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 1878  |
| Boss En Fpo | 1-Day RBACR - 0.875% | Monthly | MSCO | 6/24/26 | 67723 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 21349  |
| Bossard AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/30 | 176168 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 30290  |
| Brembo | Euro STR - 0.30% | Monthly | JPHQ | 3/25/26 | 162493 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 1238  |
| Brenntag SE | Euro STR - 0.30% | Monthly | JPHQ | 10/07/30 | 166139 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 15158  |
| Breville Fpo | 1-Day RBACR - 1.35% | Monthly | MSCO | 6/24/26 | 77890 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 1036  |
| Bridgepoint Group PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/24/26 | 132781 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 1528  |
| Brilliance China Automotive | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 578413 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (15877)  |
| British Land Co Plc Ord | 1-Day SONIA - 0.275% | Monthly | MSCO | 6/08/26 | 172833 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (16090)  |
| Brogent Technologies Inc | 1-Day FEDEF - 5.50% | Monthly | MSCO | 6/24/26 | 56135 |  | &nbsp;&nbsp;&nbsp;&nbsp; 7589  |
| <sup>e</sup>Brogent Technologies Inc | 1-Day FEDEF - 9.00% | Monthly | MSCO | 6/24/26 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;(31)  |
| Brunello Cucinelli | Euro STR - 0.30% | Monthly | JPHQ | 7/17/26 | 122443 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 3558  |
| Budimex | 1-Day FEDEF - 0.50% | Monthly | MSCO | 5/07/26 | 171255 |  | &nbsp;&nbsp;&nbsp;&nbsp; (9923)  |
| Budweiser Brewing Company | 1-Day HONIA - 0.75% | Monthly | GSCO | 6/25/26 | 1097994 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 4554  |
| Bufab AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 5/25/26 | 417613 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (1725)  |
| Bureau Veritas SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/09/30 | 13178 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 194  |
| Burford Capital Ltd. | 1-Day SONIA - 0.63% | Monthly | MSCS | 7/17/29 | 155058 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 53212  |
| Bursa Malaysia Bhd | 1-Day FEDEF - 4.375% | Monthly | MSCO | 6/23/26 | 94739 |  | &nbsp;&nbsp;&nbsp;&nbsp; (9174)  |
| Buzzi | Euro STR - 0.30% | Monthly | JPHQ | 9/03/26 | 39781 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (5879)  |
| Bystronic AG | Euro STR - 0.35% | Monthly | JPHQ | 8/05/30 | 63997 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 4683  |
| C&S Paper Co Ltd | 1-Day FEDEF - 6.018% | Monthly | MSCO | 6/19/26 | 115595 |  | &nbsp;&nbsp;&nbsp;&nbsp; (16566)  |
| CA Immobilien Anlagen AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 140816 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (22661)  |
| Cadeler AS | 1-Week NIBOR - 6.50% | Monthly | SEBA | 7/17/30 | 2591409 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 42871  |
| Calix Fpo | 1-Day RBACR - 8.875% | Monthly | MSCO | 6/24/26 | 20781 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (13391)  |
| Campari | Euro STR - 0.30% | Monthly | JPHQ | 7/31/30 | 89387 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (7976)  |
| Camurus AB | 1-Week STIBOR - 0.75% | Monthly | SEBA | 7/17/30 | 857511 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 1072  |
| Capita PLC | 1-Day SONIA - 1.125% | Monthly | MSCO | 5/06/26 | 91006 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (28560)  |
| Capital and Invest | 1-Day SORA - 0.75% | Monthly | MSCO | 6/25/26 | 187731 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (4986)  |
| Car Group Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 157301 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 5964  |
| Caregen | 1-Day FEDEF - 6.125% | Monthly | MSCO | 6/24/26 | 40124 |  | &nbsp;&nbsp;&nbsp;&nbsp; (58500)  |
| Carel Industries | Euro STR - 0.30% | Monthly | JPHQ | 9/23/30 | 112517 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (85451)  |
| Carl Zeiss Meditec AG | Euro STR - 0.30% | Monthly | JPHQ | 8/21/30 | 87123 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 10823  |
| Carnarvon Fpo | 1-Day RBACR - 5.25% | Monthly | MSCO | 6/25/26 | 16436 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 1691  |
| Caswell Inc | 1-Day FEDEF - 4.75% | Monthly | MSCO | 9/11/26 | 44831 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3145  |
| Catena AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 5/08/26 | 2812473 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (12355)  |

---

<br> franklintempleton.com Semiannual Report 75

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| CCC SA | 1-Day FEDEF - 12.75% | Monthly | MSCS | 8/02/30 | 11041 |  | &nbsp;&nbsp;&nbsp;&nbsp; $2303  |
| CD Projekt SA | 1-Day FEDEF - 1.25% | Monthly | MSCS | 7/17/30 | 136456 |  | &nbsp;&nbsp;&nbsp;&nbsp; (129021)  |
| CDL Htrust | 1-Day SORA - 1.50% | Monthly | MSCO | 6/25/26 | 165962 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (7931)  |
| Celcomdigi Berhad | 1-Day FEDEF - 8.00% | Monthly | MSCO | 6/25/26 | 81057 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6486  |
| Cellnex Telecom SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/14/26 | 322664 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 73380  |
| Celltrion | 1-Day FEDEF - 1.50% | Monthly | MSCO | 6/24/26 | 78691 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2909)  |
| Celon Pharma SA | 1-Day FEDEF - 12.75% | Monthly | MSCS | 10/28/29 | 6722 |  | &nbsp;&nbsp;&nbsp;&nbsp; 129  |
| Ceres Power Holdings PLC | 1-Day SONIA - 1.38% | Monthly | MSCS | 7/17/30 | 33175 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (98345)  |
| Cgn Mining Company Ltd | 1-Day HONIA - 3.25% | Monthly | GSCO | 6/25/26 | 427745 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (18278)  |
| Chalice Fpo | 1-Day RBACR - 2.75% | Monthly | MSCO | 6/24/26 | 82161 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (2783)  |
| Champ Iron Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 9/08/26 | 68997 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (12153)  |
| Champion Real Estate | 1-Day HONIA - 0.40% | Monthly | GSCO | 7/31/26 | 506852 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (4037)  |
| Chandra Asri Pacific TBK | 1-Day FEDEF - 11.50% | Monthly | MSCO | 9/09/26 | 76674 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2924  |
| Chang Wah Technology Co | 1-Day FEDEF - 3.625% | Monthly | MSCO | 10/26/26 | 22813 |  | &nbsp;&nbsp;&nbsp;&nbsp;(502)  |
| Channel Infrastructure Nz | 1-Day NZOCR - 0.40% | Monthly | MSCO | 6/24/26 | 131382 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; (17356)  |
| Chapters Group AG | Euro STR - 29.60% | Monthly | JPHQ | 10/22/26 | 26052 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(352)  |
| Charm Care Corporation | TONAR - 0.35% | Monthly | GSCO | 12/01/26 | 907719 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 7  |
| Cheng Loong | 1-Day FEDEF - 2.125% | Monthly | MSCO | 11/23/26 | 1193 |  | &nbsp;&nbsp;&nbsp;&nbsp;(42)  |
| China Cinda Asset Management | 1-Day HONIA - 2.88% | Monthly | GSCO | 9/09/26 | 1390821 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 449  |
| China Datang Corp Renewab | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 401799 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 2269  |
| China Energy Engineer | 1-Day FEDEF - 9.15% | Monthly | MSCO | 6/26/26 | 60633 |  | &nbsp;&nbsp;&nbsp;&nbsp; (4255)  |
| China Everbright Bank | 1-Day FEDEF - 0.85% | Monthly | MSCO | 6/24/26 | 73215 |  | &nbsp;&nbsp;&nbsp;&nbsp; 10065  |
| China Everbright Environment | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 541424 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (3273)  |
| China Feihe Ltd | 1-Day HONIA - 0.40% | Monthly | GSCO | 9/11/26 | 765087 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 1023  |
| China General Plastics Co | 1-Day FEDEF - 4.35% | Monthly | MSCO | 6/24/26 | 37448 |  | &nbsp;&nbsp;&nbsp;&nbsp; 341  |
| China Jinmao Holdings Group | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 505208 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (5362)  |
| China Life Insurance | 1-Day FEDEF - 8.35% | Monthly | MSCO | 6/24/26 | 264 |  | &nbsp;&nbsp;&nbsp;&nbsp;(13)  |
| China Literature Ltd | 1-Day HONIA - 0.40% | Monthly | GSCO | 7/31/26 | 701167 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (8168)  |
| China Longyuan Power Group | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 1029352 | HKD | &nbsp;&nbsp;&nbsp;&nbsp;(646)  |
| China Medical Systems Holdings | 1-Day HONIA - 0.40% | Monthly | GSCO | 11/13/26 | 515013 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 2977  |
| China Modern Dairy Holdings | 1-Day HONIA - 1.25% | Monthly | GSCO | 6/25/26 | 1225665 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (42437)  |
| China Motor Co | 1-Day FEDEF - 3.625% | Monthly | MSCO | 6/24/26 | 90917 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4368  |
| China Petroleum | 1-Day FEDEF - 4.08% | Monthly | MSCO | 8/18/26 | 23429 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1068  |
| China Resources Mixc Life | 1-Day HONIA - 0.40% | Monthly | GSCO | 9/11/26 | 125600 | HKD | &nbsp;&nbsp;&nbsp;&nbsp;(935)  |
| China Risun Grp Ltd | 1-Day HONIA - 12.25% | Monthly | GSCO | 6/25/26 | 501979 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 6263  |
| China Ruyi Holdings Ltd | 1-Day HONIA - 2.75% | Monthly | GSCO | 6/25/26 | 769520 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 9826  |
| China Southern Power | 1-Day FEDEF - 10.662% | Monthly | MSCO | 6/24/26 | 5883 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1285)  |
| China Steel Chemical Corp | 1-Day FEDEF - 3.25% | Monthly | MSCO | 6/24/26 | 29966 |  | &nbsp;&nbsp;&nbsp;&nbsp; 8160  |
| China Steel Corp | 1-Day FEDEF - 1.00% | Monthly | MSCO | 10/06/26 | 101892 |  | &nbsp;&nbsp;&nbsp;&nbsp; 5321  |
| China Suntien Green | 1-Day FEDEF - 11.45% | Monthly | MSCO | 6/24/26 | 3151 |  | &nbsp;&nbsp;&nbsp;&nbsp;(12)  |
| China Vanke Co Ltd | 1-Day HONIA - 3.00% | Monthly | GSCO | 7/17/26 | 546289 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 21101  |
| China Water Affair Group | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 1493575 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 14599  |
| China Yongda Automobiles | 1-Day HONIA - 0.40% | Monthly | GSCO | 9/18/26 | 136902 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 2225 |
| China Zheshang Bank | 1-Day FEDEF - 6.659% | Monthly | MSCO | 6/24/26 | 57624 |  | &nbsp;&nbsp;&nbsp;&nbsp; 7307  |
| Chinasoft International | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 1544670 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (7196)  |
| Chipmos Technologies Inc | 1-Day FEDEF - 2.125% | Monthly | MSCO | 10/05/26 | 34285 |  | &nbsp;&nbsp;&nbsp;&nbsp; (9284)  |

---

<br> 76 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Chongqing Millison | 1-Day FEDEF - 6.15% | Monthly | MSCO | 8/26/26 | 10504 |  | &nbsp;&nbsp;&nbsp;&nbsp; $(4971)  |
| Chorus Fpo Nzx | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 68969 | AUD | &nbsp;&nbsp;&nbsp;&nbsp;(634)  |
| Chrysosltd Fpo | 1-Day RBACR - 4.75% | Monthly | MSCO | 6/24/26 | 29376 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (8903)  |
| Chugoku Electric Power Co | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 8168276 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (17722)  |
| Chunbo | 1-Day FEDEF - 5.25% | Monthly | MSCO | 6/24/26 | 42969 |  | &nbsp;&nbsp;&nbsp;&nbsp; (11726)  |
| Chung Hung Steel Co | 1-Day FEDEF - 5.25% | Monthly | MSCO | 6/24/26 | 79351 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2718  |
| Cibus Nordic Real Estate AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 1/10/31 | 1587709 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (1643)  |
| CIE Automotive S.A. | 1-Day EONIA - 0.35% | Monthly | MSCS | 9/12/30 | 143601 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (35266)  |
| Citic Telecom Intl Hldgs | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 620782 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (6016)  |
| CJ CGV | 1-Day FEDEF - 3.50% | Monthly | MSCO | 6/24/26 | 44080 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1665)  |
| CK Infrastructure Holding | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 841020 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (2738)  |
| Clariane SE | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/26 | 91619 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2211  |
| Clicks Group Ltd. | 1-Day SABOR - 1.25% | Monthly | MSCS | 7/22/29 | 788373 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 1826  |
| Clio Cosmetics | 1-Day FEDEF - 5.75% | Monthly | MSCO | 6/24/26 | 47558 |  | &nbsp;&nbsp;&nbsp;&nbsp; 9570  |
| Close Brothers Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/30/30 | 146470 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (39695)  |
| Cloudberry Clean Energy ASA | 1-Week NIBOR - 1.00% | Monthly | SEBA | 7/17/30 | 372576 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (7672)  |
| CLP Holdings Ltd | 1-Day HONIA - 0.40% | Monthly | GSCO | 8/25/26 | 722905 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (3216)  |
| CNH Industrial | Euro STR - 0.30% | Monthly | JPHQ | 3/24/26 | 89082 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 16913  |
| Cobram Fpo | 1-Day RBACR - 10.25% | Monthly | MSCO | 10/28/26 | 58875 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 1270  |
| Coca Cola Icecek | 1-Day FEDEF - 1.50% | Monthly | MSCO | 9/21/26 | 219248 |  | &nbsp;&nbsp;&nbsp;&nbsp; (14403)  |
| Coface | 1-Day EONIA - 0.275% | Monthly | MSCO | 1/14/31 | 134395 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 7028  |
| Cofco Joycome Foods Ltd | 1-Day HONIA - 1.25% | Monthly | GSCO | 6/25/26 | 1198582 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (6061)  |
| Cognor Holding SA | 1-Day FEDEF - 0.75% | Monthly | MSCS | 7/17/30 | 55732 |  | &nbsp;&nbsp;&nbsp;&nbsp; 5958  |
| Colopl Inc | TONAR - 0.35% | Monthly | GSCO | 6/26/26 | 10186001 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 6636  |
| Coloplast A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/17/26 | 1577553 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 38181  |
| Comet | 1-Day SARON - 0.35% | Monthly | JPHQ | 9/30/30 | 182471 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (4960)  |
| Cometridge Fpo | 1-Day RBACR - 18.00% | Monthly | MSCO | 6/24/26 | 26505 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 3583  |
| Comforia Residential Reit | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 13957003 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (12367)  |
| Continental Hldgs Corp | 1-Day FEDEF - 3.625% | Monthly | MSCO | 6/24/26 | 100595 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6732  |
| Coretronics Corp | 1-Day FEDEF - 3.875% | Monthly | MSCO | 6/24/26 | 130054 |  | &nbsp;&nbsp;&nbsp;&nbsp; (30201)  |
|  Corporacion Acciona Energias Renovables SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 8/05/30 | 250151 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (22228)  |
| Cosmax | 1-Day FEDEF - 3.125% | Monthly | MSCO | 6/24/26 | 22011 |  | &nbsp;&nbsp;&nbsp;&nbsp; 8238  |
| Cosmecca Korea | 1-Day FEDEF - 8.625% | Monthly | MSCO | 6/24/26 | 39661 |  | &nbsp;&nbsp;&nbsp;&nbsp; (6760)  |
| Cosmo Adv Materials & Tec | 1-Day FEDEF - 5.50% | Monthly | MSCO | 7/03/26 | 104621 |  | &nbsp;&nbsp;&nbsp;&nbsp; (18710)  |
| COSMO Pharmaceuticals NV | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/30 | 57229 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 4101  |
| Cota Co Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 8785403 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 8552  |
| Cowin | 1-Day FEDEF - 18.75% | Monthly | MSCO | 6/24/26 | 4892 |  | &nbsp;&nbsp;&nbsp;&nbsp;(800)  |
| Create Restaurants Holdings | TONAR - 0.35% | Monthly | GSCO | 11/12/26 | 6204698 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (2536)  |
| Crest Nicholson Holdings PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/21/30 | 70633 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 16324  |
| Crh Ord Eur | 1-Day SONIA - 0.275% | Monthly | MSCO | 7/08/26 | 155934 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (49634)  |
| Croda International PLC | 1-Day SONIA - 0.44% | Monthly | MSCS | 11/27/30 | 295717 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 104092  |
| Cspc Pharmaceutical Group | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 920579 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 397  |
| Ctci Corp | 1-Day FEDEF - 2.75% | Monthly | MSCO | 6/24/26 | 73124 |  | &nbsp;&nbsp;&nbsp;&nbsp; (16406)  |
| Ctos Digital Berhad | 1-Day FEDEF - 6.75% | Monthly | MSCO | 8/06/26 | 77193 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3762  |
| CTP NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 34839 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (6632)  |

---

<br> franklintempleton.com Semiannual Report 77

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Cub Elecparts Inc | 1-Day FEDEF - 8.75% | Monthly | MSCO | 6/24/26 | 91863 |  | &nbsp;&nbsp;&nbsp;&nbsp; $(33325)  |
| Cuc Inc | TONAR - 5.00% | Monthly | GSCO | 6/24/26 | 7687323 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 3793  |
| CVC Capital Partners | Euro STR - 0.30% | Monthly | JPHQ | 12/08/30 | 232357 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 27195  |
| CVS Group PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/19/30 | 105833 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (31531)  |
| Cwlth Bank Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 290235 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 36372  |
| Cy4gate SpA | Euro STR - 0.85% | Monthly | JPHQ | 2/10/31 | 11364 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (16283)  |
| Cyberdyne Inc | TONAR - 2.50% | Monthly | GSCO | 6/24/26 | 12365079 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2734  |
| Cyberflks | 1-Day FEDEF - 6.50% | Monthly | MSCO | 9/04/26 | 12960 |  | &nbsp;&nbsp;&nbsp;&nbsp;(341)  |
| D&O Green Technologies | 1-Day FEDEF - 10.00% | Monthly | MSCO | 10/06/26 | 31783 |  | &nbsp;&nbsp;&nbsp;&nbsp; 14078  |
| Daejoo | 1-Day FEDEF - 11.50% | Monthly | MSCO | 6/24/26 | 100392 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1447  |
| Daimler Truck Holdings AG | Euro STR - 0.30% | Monthly | JPHQ | 3/28/26 | 189463 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (22640)  |
| Daishin Securities Co | 1-Day FEDEF - 2.865% | Monthly | MSCO | 7/24/26 | 125298 |  | &nbsp;&nbsp;&nbsp;&nbsp; 712  |
| Daishinku Corp. | TONAR - 0.75% | Monthly | GSCO | 11/17/26 | 4282775 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(797)  |
| Daiwa Office Investment Corp. | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 8154068 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (10045) |
| Dalipal Holdings Ltd | 1-Day HONIA - 16.25% | Monthly | GSCO | 6/25/26 | 603196 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (9071)  |
| Damai Entertainment Holdings | 1-Day HONIA - 1.75% | Monthly | GSCO | 9/11/26 | 574504 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 14353  |
| Dassault Aviation | 1-Day EONIA - 0.275% | Monthly | MSCO | 10/23/26 | 51828 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 1452  |
| Deep Yellow Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 66246 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 1436  |
| Delivery Hero SE | Euro STR - 0.30% | Monthly | JPHQ | 7/17/26 | 122803 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 20002  |
| De'Longhi SpA | Euro STR - 0.30% | Monthly | JPHQ | 5/08/26 | 91679 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (26337)  |
| Dermapharm Holding SE | Euro STR - 0.30% | Monthly | JPHQ | 5/15/26 | 50830 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (7830)  |
| Derwent London PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 7/07/26 | 183011 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 33039  |
| Deterra Re Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/23/26 | 155740 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (8872)  |
| Deutsche Boerse | Euro STR - 0.30% | Monthly | JPHQ | 11/27/30 | 96922 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 6063  |
| Deutsche Pfandriefbank AG | HIBOR - 0.30% | Monthly | JPHQ | 1/30/31 | 147685 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 26072  |
| Deutsche Post | Euro STR - 0.30% | Monthly | JPHQ | 12/11/30 | 128880 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (26183)  |
| Develop Fpo | 1-Day RBACR - 0.875% | Monthly | MSCO | 6/25/26 | 106309 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 11826  |
| Dexusind Stapled | 1-Day RBACR - 0.40% | Monthly | MSCO | 11/27/26 | 30382 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 147  |
| DFDS A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/17/29 | 551018 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 3803  |
| Di Dongil | 1-Day FEDEF - 6.375% | Monthly | MSCO | 6/24/26 | 96828 |  | &nbsp;&nbsp;&nbsp;&nbsp; 51910  |
| Diageo PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/30 | 47812 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 12504  |
| Dialog Group Bhd | 1-Day FEDEF - 5.125% | Monthly | MSCO | 6/25/26 | 156290 |  | &nbsp;&nbsp;&nbsp;&nbsp; (30684)  |
| Dino Polska SA | 1-Day FEDEF - 0.50% | Monthly | MSCS | 7/14/26 | 89756 |  | &nbsp;&nbsp;&nbsp;&nbsp; (21759)  |
| Dis-Chem Pharmacies | 1-Day SABOR - 0.50% | Monthly | MSCS | 12/26/30 | 3468387 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (54898)  |
| Discovery Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 7/17/30 | 4564623 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (156594)  |
| D-Link Corp | 1-Day FEDEF - 2.625% | Monthly | MSCO | 11/03/26 | 15785 |  | &nbsp;&nbsp;&nbsp;&nbsp; 241  |
| Domino's Pizza Group PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 9/05/30 | 211258 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 109081  |
| Doosan Corporation | 1-Day FEDEF - 2.75% | Monthly | MSCO | 11/19/26 | 30090 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1513  |
| Doosan Enerbility Co Ltd | 1-Day FEDEF - 0.45% | Monthly | MSCO | 11/18/26 | 65829 |  | &nbsp;&nbsp;&nbsp;&nbsp;(198)  |
| Doosan Robotics | 1-Day FEDEF - 18.00% | Monthly | MSCO | 6/26/26 | 31819 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3477)  |
| Doosanfc | 1-Day FEDEF - 10.25% | Monthly | MSCO | 6/24/26 | 92088 |  | &nbsp;&nbsp;&nbsp;&nbsp; (17222)  |
| Dottikon ES Holding AG | 1-Day SARON - 1.40% | Monthly | JPHQ | 7/17/30 | 69613 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (83706)  |
| Dovalue | Euro STR - 5.00% | Monthly | JPHQ | 8/14/30 | 65492 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 6406  |
|  Dow Jones US Select Health Care Providers Index | SOFR - 0.25% | Monthly | GSCO | 6/17/26 | 4583625 |  | &nbsp;&nbsp;&nbsp;&nbsp; (175091)  |

---

<br> 78 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
|  Dow Jones US Select Medical Equipment Index | SOFR - 0.25% | Monthly | GSCO | 6/17/26 | 13015186 |  | &nbsp;&nbsp;&nbsp;&nbsp; $(480130)  |
|  Dow Jones US Select Pharma Total Return Index | SOFR - 0.70% | Monthly | GSCO | 6/17/26 | 8350103 |  | &nbsp;&nbsp;&nbsp;&nbsp; (843088)  |
| Dowa Holdings | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 9635241 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (20077)  |
| DRDGOLD Ltd. | 1-Day SABOR - 1.00% | Monthly | MSCS | 7/17/30 | 798212 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (83307)  |
| Drewloong Precision Inc | 1-Day FEDEF - 9.875% | Monthly | MSCO | 6/24/26 | 50589 |  | &nbsp;&nbsp;&nbsp;&nbsp; 5106  |
| DSM Firmenich AG | Euro STR - 0.30% | Monthly | JPHQ | 4/16/26 | 167994 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 25868  |
| DSV A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/14/26 | 2415851 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; (12080)  |
| Dug Tech Fpo | 1-Day RBACR - 7.125% | Monthly | MSCO | 6/24/26 | 64629 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (21382)  |
| Dustin Group AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 12/11/30 | 75418 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (24761)  |
| DWEC | 1-Day FEDEF - 0.875% | Monthly | MSCO | 6/24/26 | 96636 |  | &nbsp;&nbsp;&nbsp;&nbsp; 22636  |
| Dynavox Group AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 8/25/26 | 1066711 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 5971  |
| E Ink Holdings Inc | 1-Day FEDEF - 1.50% | Monthly | MSCO | 6/24/26 | 104263 |  | &nbsp;&nbsp;&nbsp;&nbsp; 18734  |
| E.ON SE | Euro STR - 0.30% | Monthly | JPHQ | 4/23/26 | 43121 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 366  |
| East Horizon Limited | 1-Day HONIA - 0.40% | Monthly | GSCO | 9/03/26 | 290788 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (3462)  |
| Eastern & Oriental Bhd | 1-Day FEDEF - 4.50% | Monthly | MSCO | 6/25/26 | 55458 |  | &nbsp;&nbsp;&nbsp;&nbsp; 5846  |
| Ecopro Co Ltd | 1-Day FEDEF - 4.375% | Monthly | MSCO | 9/07/26 | 25443 |  | &nbsp;&nbsp;&nbsp;&nbsp; (11410)  |
| Ecoprobm Co Ltd | 1-Day FEDEF - 8.375% | Monthly | MSCO | 9/16/26 | 48977 |  | &nbsp;&nbsp;&nbsp;&nbsp; (9545)  |
| Edreams Odigeo SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/30 | 85293 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 46971  |
| Egis Technology Inc | 1-Day FEDEF - 15.50% | Monthly | MSCO | 6/24/26 | 60034 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1624  |
| Eguarantee Inc | TONAR - 0.35% | Monthly | GSCO | 7/17/26 | 10024407 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (12091)  |
| Eiken Chemical Co | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 19387771 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (18451)  |
| Eirgenix Inc | 1-Day FEDEF - 6.50% | Monthly | MSCO | 6/24/26 | 60319 |  | &nbsp;&nbsp;&nbsp;&nbsp; (5686)  |
| Elec Optic Fpo | 1-Day RBACR - 12.875% | Monthly | MSCO | 11/05/26 | 29300 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 4571  |
| Elecnor SA | 1-Day EONIA - 1.375% | Monthly | MSCO | 8/24/26 | 78987 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (20654)  |
| Elia Group | Euro STR - 0.30% | Monthly | JPHQ | 5/16/26 | 196859 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (62522)  |
| Elisa Oyj | Euro STR - 0.28% | Monthly | SEBA | 11/15/30 | 183634 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 38128  |
| Emeis | 1-Day EONIA - 1.50% | Monthly | MSCO | 11/19/26 | 69959 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(978)  |
| Empiric Student Prop Plc | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/19/26 | 30571 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 5236  |
| Emro Incorporated | 1-Day FEDEF - 25.625% | Monthly | MSCO | 6/30/26 | 881 |  | &nbsp;&nbsp;&nbsp;&nbsp; 104  |
| Ems-Chemie AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/30 | 240623 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 4804 |
| En Japan Inc | TONAR - 0.35% | Monthly | GSCO | 9/22/26 | 4494509 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2623  |
| ENAV SpA | Euro STR - 0.30% | Monthly | JPHQ | 9/23/30 | 164041 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (30648)  |
| Ence Energia Y Celulosa SA | 1-Day EONIA - 0.35% | Monthly | MSCO | 2/10/31 | 72923 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 16990  |
| Enento Group OYJ | Euro STR - 0.28% | Monthly | SEBA | 7/17/30 | 82533 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 9633  |
| EnergieKontor AG | Euro STR - 0.30% | Monthly | JPHQ | 3/07/26 | 93518 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 21710  |
| Engcon AB | 1-Week STIBOR - 3.50% | Monthly | SEBA | 10/04/30 | 1315467 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 17444  |
| Eni SpA | Euro STR - 0.30% | Monthly | JPHQ | 1/13/31 | 116468 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (37535)  |
| Enigmo Inc | TONAR - 0.35% | Monthly | GSCO | 7/15/26 | 2410417 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (6559)  |
| Enka Insaat | 1-Day FEDEF - 6.50% | Monthly | MSCO | 9/21/26 | 21104 |  | &nbsp;&nbsp;&nbsp;&nbsp;(793)  |
| Envipco Holdings | 1-Week NIBOR - 0.275% | Monthly | SEBA | 5/21/26 | 699503 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 7683  |
| Epiroc AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/30 | 1726925 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 6554  |
| Eramet SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/30/30 | 221457 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 3453  |
| ERG SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 146582 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (28300)  |
| Erste Group Bank AG | Euro STR - 0.30% | Monthly | JPHQ | 10/14/30 | 145405 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (51619)  |

---

<br> franklintempleton.com Semiannual Report 79

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Esprinet | Euro STR - 0.30% | Monthly | JPHQ | 11/27/29 | 65826 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; $(13237)  |
| Essentra PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/01/30 | 136394 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 58824  |
| EssilorLuxottica SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/30 | 78677 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (17907)  |
| Essity AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/30 | 1679700 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (2970)  |
| Euglena Co Ltd | TONAR - 1.25% | Monthly | GSCO | 6/24/26 | 11848297 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2082  |
| Eurazeo SE | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/29 | 98434 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2037  |
| Euronav NV | Euro STR - 0.30% | Monthly | JPHQ | 12/23/29 | 62966 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (12973)  |
| Everybot | 1-Day FEDEF - 17.875% | Monthly | MSCO | 6/24/26 | 8503 |  | &nbsp;&nbsp;&nbsp;&nbsp;(474)  |
| Evotec SE | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 24853 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (2948)  |
| Experian PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/30 | 134946 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 10847  |
| Ezaki Glico Co | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 19138952 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (21846)  |
| Far East Htrust | 1-Day SORA - 1.00% | Monthly | MSCO | 6/25/26 | 43211 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (2550)  |
| Faraday Technology | 1-Day FEDEF - 8.157% | Monthly | MSCO | 11/20/26 | 41772 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2954)  |
| Farglory Free Trade Zone | 1-Day FEDEF - 7.50% | Monthly | MSCO | 6/24/26 | 67803 |  | &nbsp;&nbsp;&nbsp;&nbsp; (6005)  |
| Fastighets AB Balder | 1-Week STIBOR - 0.275% | Monthly | SEBA | 5/25/26 | 1435629 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 813  |
| Ferguson Enterprises Inc. | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/10/31 | 143542 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (71410)  |
| Ferretti | Euro STR - 1.00% | Monthly | JPHQ | 10/20/30 | 104187 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (23916)  |
| Ferrovial SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/30 | 94340 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (48875)  |
| Fila | Euro STR - 0.30% | Monthly | JPHQ | 11/19/26 | 56766 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (2626)  |
| Finatext Hldgs Ltd | TONAR - 1.50% | Monthly | GSCO | 6/24/26 | 9558669 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 7542  |
| Fine M-Tec | 1-Day FEDEF - 19.00% | Monthly | MSCO | 6/24/26 | 23953 |  | &nbsp;&nbsp;&nbsp;&nbsp; (9420)  |
| FinecoBank SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 218474 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (93630)  |
| Fintel PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/20/30 | 43646 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 14293  |
| First Financial Holding C | 1-Day FEDEF - 0.45% | Monthly | MSCO | 6/24/26 | 131323 |  | &nbsp;&nbsp;&nbsp;&nbsp; 8547  |
| Fiskars Group OYJ | Euro STR - 0.45% | Monthly | SEBA | 8/23/30 | 46203 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 9507  |
| Fittech Co Ltd | 1-Day FEDEF - 6.25% | Monthly | MSCO | 6/24/26 | 26395 |  | &nbsp;&nbsp;&nbsp;&nbsp; (7688)  |
| Fletcher Building Fpo Nzx | 1-Day RBACR - 0.40% | Monthly | MSCO | 11/16/26 | 79830 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 326  |
| Flexium Interconnect Inc | 1-Day FEDEF - 2.375% | Monthly | MSCO | 6/24/26 | 101631 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6900  |
| FLSmidth & Co. A/S | 1-Week CIBOR - 0.275% | Monthly | SEBA | 9/10/30 | 1114791 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; (17884)  |
| Flughafen Zurich AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/30 | 215097 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (42470)  |
| Fluidra SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 9/30/30 | 190860 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (22099)  |
| Flutter Entertainment PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/30/30 | 85297 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 10080  |
| Fnac Darty SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 1/29/31 | 88612 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (1213)  |
| Foci Fiber Optic Communication | 1-Day FEDEF - 10.875% | Monthly | MSCO | 10/01/26 | 35413 |  | &nbsp;&nbsp;&nbsp;&nbsp;(554)  |
| Focus Light Technologies | 1-Day FEDEF - 8.30% | Monthly | MSCO | 10/23/26 | 49352 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2987  |
| Foosung | 1-Day FEDEF - 5.25% | Monthly | MSCO | 6/24/26 | 49252 |  | &nbsp;&nbsp;&nbsp;&nbsp; (24213)  |
| Forbo | 1-Day SARON - 0.35% | Monthly | JPHQ | 9/11/26 | 168284 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 6067  |
| Formosa Chemical & Fibre | 1-Day FEDEF - 1.50% | Monthly | MSCO | 10/22/26 | 15836 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1178)  |
| Formosa Plastic | 1-Day FEDEF - 3.25% | Monthly | MSCO | 6/19/26 | 137828 |  | &nbsp;&nbsp;&nbsp;&nbsp; (13402)  |
| Foschini Group Ltd. (The) | 1-Day SABOR - 0.50% | Monthly | MSCS | 8/30/29 | 563490 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 7667  |
| FP Partner Inc | TONAR - 5.50% | Monthly | GSCO | 6/24/26 | 10026008 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (4597)  |
| Franbo Lines Corp | 1-Day FEDEF - 8.375% | Monthly | MSCO | 11/17/26 | 51989 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2444)  |
| Fraport AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 219159 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (90373)  |
| Frasers Group PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/24/26 | 143923 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (38887)  |
| Fronteo Inc | TONAR - 7.50% | Monthly | GSCO | 6/29/26 | 9004888 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (18583)  |
| FRP Advisory Group Plc | 1-Day FEDEF - 1.875% | Monthly | MSCO | 11/18/26 | 18184 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(326)  |

---

<br> 80 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Fu Shou Yuan Intl Grp Lim | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 1258731 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; $29651  |
| Fudo Tetra Corp | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 2412676 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1264)  |
| Fugro | Euro STR - 0.30% | Monthly | JPHQ | 10/12/29 | 68999 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 13859 |
| Fuji Kyuko Co Ltd | TONAR - 0.35% | Monthly | GSCO | 8/18/26 | 1927733 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 139  |
| Fuji Oil Co Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 12772288 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (20538)  |
| Fujifilm Holdings Corporation | TONAR - 0.35% | Monthly | GSCO | 8/05/26 | 4445008 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1993)  |
| Fujimi Inc | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 20881160 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (36344)  |
| Fujio Food Group Inc | TONAR - 2.16% | Monthly | GSCO | 8/24/26 | 10309425 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1017)  |
| Fukuyama Transporting Co | TONAR - 0.35% | Monthly | GSCO | 8/24/26 | 6763118 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (7416)  |
| Fulgent Sun International | 1-Day FEDEF - 4.625% | Monthly | MSCO | 10/06/26 | 115555 |  | &nbsp;&nbsp;&nbsp;&nbsp; (4728)  |
| Funding Circle Holdings PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/11/30 | 127345 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (32935)  |
| Furuya Metal Co Ltd | TONAR - 0.35% | Monthly | GSCO | 11/20/26 | 6232086 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1523)  |
| Gamsung Corp | 1-Day FEDEF - 6.125% | Monthly | MSCO | 6/24/26 | 46725 |  | &nbsp;&nbsp;&nbsp;&nbsp; 709  |
| Gamuda Bhd | 1-Day FEDEF - 8.75% | Monthly | MSCO | 6/25/26 | 91555 |  | &nbsp;&nbsp;&nbsp;&nbsp; (16615)  |
| GCL Technology Holdings | 1-Day HONIA - 1.75% | Monthly | GSCO | 9/11/26 | 580238 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 7185  |
| Geberit AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/30 | 255056 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (57910)  |
| Gecina SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/30 | 181430 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 13617  |
| Gen Dev Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 7/03/26 | 74387 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (10179)  |
| Generali Group | Euro STR - 0.30% | Monthly | JPHQ | 10/13/29 | 56338 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (2297)  |
| Genscript Biotech Corporation | 1-Day HONIA - 1.50% | Monthly | GSCO | 6/25/26 | 550671 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 1787  |
| Genting Sing | 1-Day SORA - 0.40% | Monthly | MSCO | 6/25/26 | 141928 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (3777)  |
| Gentrack Fpo Nzx | 1-Day RBACR - 8.375% | Monthly | MSCO | 6/24/26 | 57740 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (2746)  |
| Genuit Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/30 | 76042 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 9703  |
| Georg Fischer Ltd. | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/27/30 | 71095 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 2642  |
| Gerresheimer AG | Euro STR - 0.30% | Monthly | JPHQ | 5/15/26 | 87181 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 40576  |
| Getlink SE | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/30 | 309953 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 828  |
| GFT Technologies SE | Euro STR - 0.30% | Monthly | JPHQ | 4/24/26 | 26172 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (1221)  |
| Gift Holdings Inc | TONAR - 1.00% | Monthly | GSCO | 8/20/26 | 11905423 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (2370)  |
| Giken Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 9673039 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (17172)  |
| Global Brands Manufacturer | 1-Day FEDEF - 4.00% | Monthly | MSCO | 11/20/26 | 34680 |  | &nbsp;&nbsp;&nbsp;&nbsp; (7228)  |
| Global Dominion | 1-Day EONIA - 0.275% | Monthly | MSCO | 7/30/30 | 109840 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (23592)  |
| Goldcrest Co Ltd | TONAR - 0.35% | Monthly | GSCO | 8/24/26 | 4715089 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(630)  |
| Goldsun Building Material | 1-Day FEDEF - 2.75% | Monthly | MSCO | 6/24/26 | 70512 |  | &nbsp;&nbsp;&nbsp;&nbsp; 9493  |
| Good Group Stapled | 1-Day RBACR - 0.40% | Monthly | MSCO | 7/17/26 | 94699 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 8225  |
| Goto Gojek Tokopedia | 1-Day FEDEF - 4.00% | Monthly | MSCO | 6/23/26 | 107490 |  | &nbsp;&nbsp;&nbsp;&nbsp; (9198)  |
| Grand Pacific Petrochemic | 1-Day FEDEF - 3.75% | Monthly | MSCO | 6/24/26 | 11949 |  | &nbsp;&nbsp;&nbsp;&nbsp;(964)  |
| Granges AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/30 | 976270 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (7457)  |
| Great Portland Estates PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/30 | 242395 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (67941)  |
| Great Tree Pharmacy Co Lt | 1-Day FEDEF - 4.375% | Monthly | MSCO | 6/24/26 | 66946 |  | &nbsp;&nbsp;&nbsp;&nbsp; 16406  |
| Greatland Gold Plc | 1-Day SONIA - 0.275% | Monthly | MSCO | 7/17/30 | 85925 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (181284)  |
| Greentown Mgmt Hldgs Co L | 1-Day HONIA - 1.75% | Monthly | GSCO | 6/25/26 | 563926 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 2655  |
| Greggs Ord | 1-Day SONIA - 0.275% | Monthly | MSCO | 6/08/26 | 124624 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 22699  |
| Grieg Seafood | 1-Week NIBOR - 0.45% | Monthly | SEBA | 4/16/26 | 1005144 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (24099)  |
| Groupe SEB | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/30/30 | 40770 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 11261  |
| Groupe ADP | 1-Day EONIA - 0.30% | Monthly | MSCS | 11/27/30 | 201447 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (36508)  |
| Groupe Bruxelles Lambert NV | Euro STR - 0.30% | Monthly | JPHQ | 7/12/26 | 289942 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (53412)  |

---

<br> franklintempleton.com Semiannual Report 81

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Gruppo MutuiOnline SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 122308 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; $(10993)  |
| Guangdong Electric | 1-Day FEDEF - 5.83% | Monthly | MSCO | 10/22/26 | 31099 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1137  |
| Gudeng Precision Industries | 1-Day FEDEF - 12.75% | Monthly | MSCO | 11/20/26 | 32175 |  | &nbsp;&nbsp;&nbsp;&nbsp;(607)  |
| Gulf Development Public | 1-Day FEDEF - 4.00% | Monthly | MSCO | 6/25/26 | 145945 |  | &nbsp;&nbsp;&nbsp;&nbsp; 406  |
| Gunosy Inc | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 12612855 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 7821  |
| Guolian Minsheng | 1-Day FEDEF - 4.90% | Monthly | MSCO | 9/29/26 | 98710 |  | &nbsp;&nbsp;&nbsp;&nbsp; 7831  |
| Guz Gomez Fpo | 1-Day RBACR - 3.375% | Monthly | MSCO | 6/24/26 | 174243 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 19952  |
| GVS | Euro STR - 0.30% | Monthly | JPHQ | 7/13/30 | 67923 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 10002  |
| Haichang Ocean Park Holdings | 1-Day HONIA - 13.50% | Monthly | GSCO | 10/23/26 | 248688 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 793  |
| Hainan Airport Infrastructure | 1-Day FEDEF - 6.70% | Monthly | MSCO | 9/29/26 | 11032 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2252)  |
| Haleon PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 3/13/26 | 201253 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (12058)  |
| Hamamatsu Photonics | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 14499176 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1984  |
| Hana Technology | 1-Day FEDEF - 15.50% | Monthly | MSCO | 6/24/26 | 39193 |  | &nbsp;&nbsp;&nbsp;&nbsp; (7694)  |
| Hanall Biopharma | 1-Day FEDEF - 1.125% | Monthly | MSCO | 6/24/26 | 117863 |  | &nbsp;&nbsp;&nbsp;&nbsp; (76771)  |
| Hangzhou Heshun | 1-Day FEDEF - 9.35% | Monthly | MSCO | 8/26/26 | 13313 |  | &nbsp;&nbsp;&nbsp;&nbsp; (4634)  |
| Hankyu Hanshin Holdings | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 13305204 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1224)  |
| Hankyu Hanshin Reit Inc | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 14165157 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (11417)  |
| Hanmi Semiconductor Co Ltd | 1-Day FEDEF - 8.125% | Monthly | MSCO | 9/11/26 | 35738 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3334)  |
| Hanmipharm | 1-Day FEDEF - 1.25% | Monthly | MSCO | 6/24/26 | 60022 |  | &nbsp;&nbsp;&nbsp;&nbsp; (22499)  |
| Hannover Re | Euro STR - 0.30% | Monthly | JPHQ | 11/27/28 | 48629 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(435) |
| Hannstar Display Corp | 1-Day FEDEF - 4.75% | Monthly | MSCO | 6/24/26 | 3190 |  | &nbsp;&nbsp;&nbsp;&nbsp; 183  |
| Hanon Systems | 1-Day FEDEF - 4.875% | Monthly | MSCO | 6/24/26 | 127027 |  | &nbsp;&nbsp;&nbsp;&nbsp; (10670)  |
| <sup>e</sup>Hanon Systems | 1-Day FEDEF - 10.25% | Monthly | MSCO | 6/24/26 |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (4268)  |
| Hansa Biopharma AB | 1-Week STIBOR - 1.00% | Monthly | SEBA | 7/17/30 | 446327 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (19958)  |
| Hansae | 1-Day FEDEF - 7.875% | Monthly | MSCO | 9/17/26 | 36937 |  | &nbsp;&nbsp;&nbsp;&nbsp; (6143)  |
| Hanssem | 1-Day FEDEF - 3.375% | Monthly | MSCO | 6/24/26 | 90733 |  | &nbsp;&nbsp;&nbsp;&nbsp; 7740  |
| Hanwha Ocean | 1-Day FEDEF - 1.50% | Monthly | MSCO | 6/24/26 | 92634 |  | &nbsp;&nbsp;&nbsp;&nbsp; (8962)  |
| Hanwha REIT | 1-Day FEDEF - 7.00% | Monthly | MSCO | 10/13/26 | 23396 |  | &nbsp;&nbsp;&nbsp;&nbsp;(17)  |
| Hanwha Solutions | 1-Day FEDEF - 4.00% | Monthly | MSCO | 6/24/26 | 148053 |  | &nbsp;&nbsp;&nbsp;&nbsp; 25978  |
| Hapag-Lloyd AG | Euro STR - 0.50% | Monthly | JPHQ | 10/07/30 | 80707 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 5442  |
| Harmonic Drive Systems | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 17740588 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (17441)  |
| Hartalega Holdings Bhd | 1-Day FEDEF - 16.25% | Monthly | MSCO | 9/28/26 | 34200 |  | &nbsp;&nbsp;&nbsp;&nbsp; 5486  |
| Harvia PLC | Euro STR - 9.50% | Monthly | SEBA | 7/17/30 | 147373 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 7280  |
| Hays PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 9/05/30 | 138338 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 13019  |
| HBX Group International | 1-Day EONIA - 0.275% | Monthly | MSCO | 5/25/26 | 86036 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 26629  |
| Health & Happiness | 1-Day HONIA - 0.40% | Monthly | GSCO | 10/28/26 | 93780 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (1749)  |
| Healthcare Selectsectortr Index | SOFR - 0.25% | Monthly | GSCO | 6/17/26 | 2010907 |  | &nbsp;&nbsp;&nbsp;&nbsp; (127872)  |
| Heartland Group Hldgs Ltd | 1-Day NZOCR - 2.025% | Monthly | MSCO | 6/24/26 | 67764 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; (13797)  |
| Heineken | Euro STR - 0.35% | Monthly | JPHQ | 11/27/30 | 112184 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (4207)  |
| Heiwa Corp | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 12672357 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(478)  |
| Hengyi Petrochecmical | 1-Day FEDEF - 5.05% | Monthly | MSCO | 9/29/26 | 41078 |  | &nbsp;&nbsp;&nbsp;&nbsp; (4124)  |
| Henkel AG & Co. KGaA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 203604 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (3943)  |
| Hensoldt AG | Euro STR - 0.30% | Monthly | JPHQ | 3/20/26 | 106857 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (13934)  |
| Hermes International | 1-Day SONIA - 0.40% | Monthly | MSCS | 9/07/30 | 77153 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 4284  |
| Hertz Global Hldgs Inc CFD | 1-Day FEDEF - 0.75% | Monthly | MSCO | 9/27/31 | 158285 |  | &nbsp;&nbsp;&nbsp;&nbsp; 11486  |
| Hexagon AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 4/01/26 | 1336362 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (4943)  |

---

<br> 82 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Hexagon Composites ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/17/26 | 552105 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; $33760  |
| Hibiya Engineering | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 9553456 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (16374)  |
| Highwealth Construction | 1-Day FEDEF - 1.00% | Monthly | MSCO | 8/19/26 | 60928 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4840  |
| Hiwin Technologies Corp | 1-Day FEDEF - 4.375% | Monthly | MSCO | 6/24/26 | 204152 |  | &nbsp;&nbsp;&nbsp;&nbsp; 25878  |
| HKT Trust And HKT Ltd | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 450910 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (1690)  |
| HMM | 1-Day FEDEF - 1.375% | Monthly | MSCO | 6/24/26 | 41029 |  | &nbsp;&nbsp;&nbsp;&nbsp;(154)  |
| HMS Networks AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 9/13/30 | 2039883 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (4485)  |
| Hogy Medical Co | TONAR - 0.35% | Monthly | GSCO | 8/24/26 | 4740415 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (3590)  |
| Hollywood Bowl Group PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/10/31 | 162815 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (13164)  |
| Holmen AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 6/20/26 | 1561079 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 13504  |
| Holtek Semiconductor Inc | 1-Day FEDEF - 5.625% | Monthly | MSCO | 6/30/26 | 41056 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4991  |
| Home Product Center Plc | 1-Day FEDEF - 34.00% | Monthly | MSCO | 6/26/26 | 127646 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1248  |
| Horizon Robotics | 1-Day HONIA - 1.75% | Monthly | GSCO | 9/11/26 | 273682 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 4183  |
| Hota Industrial Mfg Co | 1-Day FEDEF - 13.875% | Monthly | MSCO | 6/24/26 | 147519 |  | &nbsp;&nbsp;&nbsp;&nbsp; 13617  |
| Hotai Finance Co Ltd | 1-Day FEDEF - 2.25% | Monthly | MSCO | 6/24/26 | 127334 |  | &nbsp;&nbsp;&nbsp;&nbsp; 17973  |
| Hotai Motor Co | 1-Day FEDEF - 0.875% | Monthly | MSCO | 6/24/26 | 82891 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1231)  |
| Hotel Shilla | 1-Day FEDEF - 5.25% | Monthly | MSCO | 6/24/26 | 179730 |  | &nbsp;&nbsp;&nbsp;&nbsp; 33544  |
| Howa Machinery Ltd | TONAR - 0.75% | Monthly | GSCO | 6/24/26 | 2551915 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1942)  |
| HS Hyosung Advanced Materials | 1-Day FEDEF - 2.625% | Monthly | MSCO | 9/17/26 | 86392 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1668)  |
| Hsin Kuang Steel Co | 1-Day FEDEF - 3.00% | Monthly | MSCO | 6/24/26 | 56661 |  | &nbsp;&nbsp;&nbsp;&nbsp; 5473  |
| HTC Corporation | 1-Day FEDEF - 7.125% | Monthly | MSCO | 6/24/26 | 135457 |  | &nbsp;&nbsp;&nbsp;&nbsp; (23976)  |
| Hua Hong Semiconductor | 1-Day HONIA - 3.00% | Monthly | GSCO | 6/25/26 | 766030 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (112147)  |
| Hua Nan Financial Holding | 1-Day FEDEF - 0.45% | Monthly | MSCO | 6/24/26 | 91927 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2508)  |
| Huaku Development Co Ltd | 1-Day FEDEF - 2.125% | Monthly | MSCO | 6/24/26 | 83182 |  | &nbsp;&nbsp;&nbsp;&nbsp; 667  |
| Huaneng Lancang River | 1-Day FEDEF - 3.05% | Monthly | MSCO | 9/11/26 | 36277 |  | &nbsp;&nbsp;&nbsp;&nbsp; 609  |
| Hubei Yihua Chemical | 1-Day FEDEF - 9.42% | Monthly | MSCO | 9/18/26 | 46018 |  | &nbsp;&nbsp;&nbsp;&nbsp; (6159)  |
| Hutchmed | 1-Day SONIA - 1.125% | Monthly | MSCO | 9/03/30 | 30032 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 6316  |
| Hutchmed Ltd | 1-Day SONIA - 28.75% | Monthly | GSCO | 6/25/26 | 1062103 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 12264  |
| Hygeia Healthcare Hldgs | 1-Day HONIA - 7.75% | Monthly | GSCO | 6/25/26 | 484503 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 7139  |
| Hypoport SE | 1-Day SABOR - 0.75% | Monthly | JPHQ | 9/27/30 | 93272 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 25541  |
| Hyundai MTR | 1-Day FEDEF - 0.45% | Monthly | MSCO | 6/23/26 | 142936 |  | &nbsp;&nbsp;&nbsp;&nbsp; (18344)  |
| Ibiden Co Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 4397915 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (25094)  |
| Ibstock PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/07/30 | 211832 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 5124  |
| Ichibanya Co Ltd | TONAR - 0.75% | Monthly | GSCO | 6/24/26 | 18973956 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1554)  |
| Ichigo Inc | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 25180812 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1502)  |
| Idom Inc | TONAR - 0.35% | Monthly | GSCO | 8/24/26 | 4859246 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (7228)  |
| Idox PLC | 1-Day SONIA - 6.125% | Monthly | MSCO | 3/24/26 | 13145 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (2503) |
| Ifamilysc | 1-Day FEDEF - 3.625% | Monthly | MSCO | 6/29/26 | 70462 |  | &nbsp;&nbsp;&nbsp;&nbsp; 14608  |
| IG Port Inc | TONAR - 2.75% | Monthly | GSCO | 10/21/26 | 49885 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2  |
| Iino Kaiun Kaisha | TONAR - 0.35% | Monthly | GSCO | 10/15/26 | 8450895 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (11726)  |
| IJM Corporation Bhd | 1-Day FEDEF - 5.625% | Monthly | MSCO | 6/25/26 | 49607 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6207  |
| Iljin Hysolus | 1-Day FEDEF - 18.25% | Monthly | MSCO | 6/24/26 | 21541 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3610  |
| IMCD Group NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 99268 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 32091  |
| Imerys | 1-Day EONIA - 0.275% | Monthly | MSCO | 9/22/26 | 148491 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (11920)  |
| Impedimed Fpo | 1-Day RBACR - 6.50% | Monthly | MSCO | 7/15/26 | 5794 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 80  |
| Imperial Hotel Limited | TONAR - 3.30% | Monthly | GSCO | 6/24/26 | 9952673 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (9807)  |

---

<br> franklintempleton.com Semiannual Report 83

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Inari Amertron Berhad | 1-Day FEDEF - 6.00% | Monthly | MSCO | 7/08/26 | 70820 |  | &nbsp;&nbsp;&nbsp;&nbsp; $(5564)  |
| Industria De Diseno Textil | 1-Day EONIA - 0.275% | Monthly | MSCO | 1/16/31 | 260585 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (7306)  |
| Indutrade AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 6/03/26 | 1270156 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 1407  |
| INFICON | 1-Day SARON - 0.35% | Monthly | JPHQ | 5/25/26 | 55803 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (1907)  |
| Infineon Technologies AG | Euro STR - 0.30% | Monthly | JPHQ | 11/26/26 | 57488 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (4873)  |
| Informa Plc Ord | 1-Day SONIA - 0.275% | Monthly | MSCO | 7/02/26 | 107338 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (19635)  |
| Infrastrutture Wireless Italiane SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 241322 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 38820  |
| Infratil Limited Ord Npv | 1-Day NZOCR - 0.40% | Monthly | MSCO | 6/19/26 | 328332 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; (23515)  |
| INGBSK | 1-Day FEDEF - 3.00% | Monthly | MSCO | 8/11/26 | 53568 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3329)  |
| Innospace | 1-Day FEDEF -15.50% | Monthly | MSCO | 6/24/26 | 8215 |  | &nbsp;&nbsp;&nbsp;&nbsp; 610  |
| Instalco AB | 1-Week STIBOR - 0.45% | Monthly | SEBA | 6/27/26 | 628082 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 6451  |
| Integ Diag Fpo | 1-Day RBACR - 0.563% | Monthly | MSCO | 6/24/26 | 203952 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (11800)  |
| Intellian Tech | 1-Day FEDEF - 6.368% | Monthly | MSCO | 6/24/26 | 115721 |  | &nbsp;&nbsp;&nbsp;&nbsp; 25872  |
| Inter Cars | 1-Day FEDEF - 2.125% | Monthly | MSCO | 3/19/26 | 51367 |  | &nbsp;&nbsp;&nbsp;&nbsp; (4823)  |
| InterContinental Hotels Group | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/28 | 102478 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (16667)  |
| Intermediate Capital Group | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/09/31 | 129704 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(10)  |
| International Paper | 1-Day SONIA - 0.744% | Monthly | MSCO | 2/12/26 | 69446 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 14233  |
| International Petroleum Corp. | 1-Week STIBOR - 0.275% | Monthly | SEBA | 12/06/30 | 2470741 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (46146)  |
| Interparfums | 1-Day EONIA - 0.275% | Monthly | MSCO | 7/09/31 | 27985 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 10775  |
| Interpump Group | Euro STR - 0.30% | Monthly | JPHQ | 5/20/26 | 93528 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (58838)  |
| Interroll Group | 1-Day SARON - 0.35% | Monthly | JPHQ | 10/28/30 | 70455 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (29425)  |
| Intops Co | 1-Day FEDEF - 2.75% | Monthly | MSCO | 10/13/26 | 20691 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2638  |
| Investis Holdings SA | 1-Day SARON - 0.35% | Monthly | JPHQ | 9/12/30 | 11436 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (1856)  |
| Investor AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/14/26 | 2363373 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (31079)  |
| INVISIO AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/26 | 1528144 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 44484  |
| Inwido AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 8/27/26 | 640451 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 12217  |
| IOI Corporation Bhd | 1-Day FEDEF - 3.125% | Monthly | MSCO | 6/25/26 | 183224 |  | &nbsp;&nbsp;&nbsp;&nbsp; (19778)  |
| IOI Properties Group Berhad | 1-Day FEDEF - 9.25% | Monthly | MSCO | 10/30/26 | 38691 |  | &nbsp;&nbsp;&nbsp;&nbsp; (10165)  |
| Iperionx Fpo | 1-Day RBACR - 1.012% | Monthly | MSCO | 6/24/26 | 50665 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (1802)  |
| IPS Inc | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 10647293 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (32987)  |
| IRPC Public Co Ltd | 1-Day FEDEF - 22.25% | Monthly | MSCO | 9/11/26 | 10018 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2490  |
| Italmobiliare | Euro STR - 0.30% | Monthly | JPHQ | 9/27/30 | 93905 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (29196)  |
| Itmedia Inc | TONAR - 1.00% | Monthly | GSCO | 6/24/26 | 14685458 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 4662  |
| J D Wetherspoon PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/17/30 | 63494 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 4113  |
| J Front Retailing Co Ltd | TONAR - 0.35% | Monthly | GSCO | 7/15/26 | 8549385 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (5861)  |
| J&T Global Express Limited | 1-Day HONIA - 0.90% | Monthly | GSCO | 9/04/26 | 644305 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 1387  |
| JA Solar Technology | 1-Day FEDEF - 10.21% | Monthly | MSCO | 9/04/26 | 57213 |  | &nbsp;&nbsp;&nbsp;&nbsp; 5913  |
| James Halstead PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/26 | 28414 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 4212  |
| Japan Eyewear Holdings Co | TONAR - 10.00% | Monthly | GSCO | 6/24/26 | 15098458 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 18333  |
| Japan Hospices Hldgs Inc | TONAR - 2.75% | Monthly | GSCO | 6/24/26 | 3896001 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (4336)  |
| Japan Steel Works | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 7252722 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (7035)  |
| Jastrzebska Spolka Weglowa SA | 1-Day FEDEF - 1.50% | Monthly | MSCS | 7/17/28 | 68272 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3519  |
| Jazz Pharmaceuticals PLC | SOFR | Monthly | NOMU | 9/03/31 | 457785 |  | &nbsp;&nbsp;&nbsp;&nbsp; (85398)  |
| JCR Pharmaceutical Co | TONAR - 0.35% | Monthly | GSCO | 8/24/26 | 9653068 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (16429)  |
| Jean Co Ltd | 1-Day FEDEF - 6.125% | Monthly | MSCO | 6/24/26 | 25022 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1529  |
| Jetema | 1-Day FEDEF -15.00% | Monthly | MSCO | 6/24/26 | 13567 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2024  |

---

<br> 84 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Jiangsu Expressway Co | 1-Day FEDEF - 9.35% | Monthly | MSCO | 6/24/26 | 25238 |  | &nbsp;&nbsp;&nbsp;&nbsp; $3961  |
| Jiangsu Expressway Co | 1-Day FEDEF - 9.35% | Monthly | GSCO | 7/31/26 | 288177 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (1489)  |
| Jiangsu Yuxing | 1-Day FEDEF - 13.373% | Monthly | MSCO | 6/24/26 | 35001 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3095)  |
| Jinushi Co Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 3866841 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (8007)  |
| Jinxin Fertility Group Ltd | 1-Day HONIA - 8.75% | Monthly | GSCO | 7/23/26 | 292155 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 8482  |
| Jollibee Foods Corporation | 1-Day FEDEF - 2.50% | Monthly | MSCO | 9/07/26 | 20975 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4381  |
| JS Global Lifestyle Company | 1-Day HONIA - 2.00% | Monthly | GSCO | 9/11/26 | 551613 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 315  |
| Judges Scientific PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/05/26 | 214686 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 117083 |
| Jungfraubahn Hld N | 1-Day SARON - 0.35% | Monthly | JPHQ | 6/11/26 | 67215 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (23147)  |
| Juventus FC | Euro STR - 17.30% | Monthly | JPHQ | 9/02/30 | 32258 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 5255  |
| Kakao Games | 1-Day FEDEF - 4.00% | Monthly | MSCO | 6/23/26 | 134967 |  | &nbsp;&nbsp;&nbsp;&nbsp; 38313  |
| Kameda Seika Co | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 15390868 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (4038)  |
| Kansai Electric Power Co | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 7641306 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (24564)  |
| Kantsu Co Ltd | TONAR - 5.50% | Monthly | GSCO | 6/24/26 | 933897 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1315)  |
| Karnov Group AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/30 | 760827 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (9373)  |
| Kawasaki Kisen Kaisha | TONAR - 0.35% | Monthly | GSCO | 11/19/26 | 7458962 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(150)  |
| KBC Groep NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 78608 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (40503)  |
| KE Holdings Inc | 1-Day HONIA - 0.40% | Monthly | GSCO | 7/31/26 | 1262934 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 9144  |
| Keihanshin Building Co Ltd | TONAR - 0.35% | Monthly | GSCO | 8/24/26 | 6658403 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (9084)  |
| Keio Corporation | TONAR - 0.35% | Monthly | GSCO | 8/13/26 | 5256086 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (2865)  |
| Keisei Electric Railway | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 9394606 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2959  |
| Kenda Rubber Industry | 1-Day FEDEF - 0.75% | Monthly | MSCO | 6/24/26 | 34032 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3943  |
| Kepco E&C | 1-Day FEDEF - 4.00% | Monthly | MSCO | 6/25/26 | 57373 |  | &nbsp;&nbsp;&nbsp;&nbsp; 13963  |
| Keppel | 1-Day SORA - 0.40% | Monthly | MSCO | 6/23/26 | 203307 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (60381)  |
| Kering SA | 1-Month EURIBOR - 0.40% | Monthly | MSCS | 11/27/30 | 44792 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (22400)  |
| Kerry Group PLC | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/30 | 127169 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(611)  |
| K-Fast Holding AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 7/17/30 | 271025 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;(504)  |
| Kid ASA | 1-Week NIBOR - 0.275% | Monthly | SEBA | 5/25/26 | 713136 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 4648  |
| Kikkoman Corp | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 18081734 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (12183)  |
| Kinnevik AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 3/03/26 | 1854181 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (28288)  |
| Kitwave Group Plc | 1-Day SONIA - 1.875% | Monthly | MSCO | 9/09/26 | 42613 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 3596  |
| KMW | 1-Day FEDEF - 9.00% | Monthly | MSCO | 6/24/26 | 60266 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3604)  |
| Knorr-Bremse AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/26 | 132883 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (13825)  |
| Kobayashi Pharmaceuticals | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 24991004 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 6272  |
| Kobe Bussan Co Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 10832619 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 10593  |
| Koc Holding | 1-Day FEDEF - 1.25% | Monthly | MSCO | 11/10/26 | 58626 |  | &nbsp;&nbsp;&nbsp;&nbsp; 466  |
| Komehyo Holdings Co Ltd | TONAR - 1.00% | Monthly | GSCO | 11/17/26 | 5221129 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(539)  |
| Koninklijke Philips NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/29 | 43878 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(493)  |
| Kontron AG | Euro STR - 2.10% | Monthly | JPHQ | 4/23/26 | 71842 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (2965)  |
| Korea Aerospace | 1-Day FEDEF - 0.45% | Monthly | MSCO | 6/19/26 | 113171 |  | &nbsp;&nbsp;&nbsp;&nbsp; (12130)  |
| Kosaido Holdings Co Ltd | TONAR - 1.00% | Monthly | GSCO | 7/06/26 | 16616643 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1556)  |
| Kossan Rubber Industries | 1-Day FEDEF - 5.75% | Monthly | MSCO | 10/27/26 | 41838 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3514  |
| Krafton Inc | 1-Day FEDEF - 0.45% | Monthly | MSCO | 9/03/26 | 18771 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4788  |
| Kruk | 1-Day FEDEF - 0.50% | Monthly | MSCO | 7/17/26 | 140398 |  | &nbsp;&nbsp;&nbsp;&nbsp; (23595)  |
| KT&G | 1-Day FEDEF - 0.45% | Monthly | MSCO | 6/24/26 | 71183 |  | &nbsp;&nbsp;&nbsp;&nbsp; (5207)  |
| Kuala Lumpur Kepong Bhd | 1-Day FEDEF - 7.875% | Monthly | MSCO | 6/25/26 | 125436 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3751)  |

---

<br> franklintempleton.com Semiannual Report 85

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Kudan Inc | TONAR - 13.33% | Monthly | GSCO | 8/24/26 | 2231700 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; $(707)  |
| Kuehne+Nagel | 1-Day SARON - 0.35% | Monthly | JPHQ | 3/13/26 | 53249 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;(695)  |
| Kumai Chemical Industry | TONAR - 0.35% | Monthly | GSCO | 9/10/26 | 7335444 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 6912  |
| Kunshan Dongwei Technology | 1-Day FEDEF - 5.62% | Monthly | MSCO | 9/29/26 | 115540 |  | &nbsp;&nbsp;&nbsp;&nbsp; 7942  |
| Kureha Corporation | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 3822435 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (9365)  |
| Kweichow Moutai | 1-Day FEDEF - 1.75% | Monthly | MSCO | 7/10/26 | 57873 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2323)  |
| Kyowa Kirin Co Ltd | TONAR - 0.35% | Monthly | GSCO | 8/18/26 | 6136095 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1133)  |
| L1 Group Fpo | 1-Day RBACR - 3.625% | Monthly | MSCO | 11/24/26 | 60437 | AUD | &nbsp;&nbsp;&nbsp;&nbsp;(302)  |
| Laboratorios Farmaceutico | 1-Day EONIA - 0.275% | Monthly | MSCO | 12/08/30 | 218410 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (21325)  |
| Lagenda Properties Berhad | 1-Day FEDEF - 6.625% | Monthly | MSCO | 7/08/26 | 2398 |  | &nbsp;&nbsp;&nbsp;&nbsp;(203)  |
| Lake | 1-Day FEDEF - 8.50% | Monthly | MSCO | 6/24/26 | 110526 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1201)  |
| Land & Houses | 1-Day FEDEF - 14.50% | Monthly | MSCO | 7/07/26 | 65798 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3504  |
| Land Mark Optoelectronics | 1-Day FEDEF - 5.25% | Monthly | MSCO | 6/25/26 | 62089 |  | &nbsp;&nbsp;&nbsp;&nbsp; (22057)  |
| Land Securities Group Plc | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/19/26 | 98751 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (8482)  |
| Landis+Gyr Group AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 1/23/31 | 168308 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 26823  |
| Latour Investment AB Services | 1-Week STIBOR - 0.275% | Monthly | SEBA | 11/14/30 | 3025175 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 51750  |
| Lbs Bina Group Bhd | 1-Day FEDEF - 5.25% | Monthly | MSCO | 8/21/26 | 3041 |  | &nbsp;&nbsp;&nbsp;&nbsp; 350  |
| LCB | 1-Day FEDEF - 5.125% | Monthly | MSCO | 6/24/26 | 50597 |  | &nbsp;&nbsp;&nbsp;&nbsp; (25500)  |
| Lectra SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/01/29 | 52760 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (3318)  |
| Legal & General Group | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/23/30 | 263427 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (22880)  |
| LEM | Euro STR - 0.35% | Monthly | JPHQ | 7/17/26 | 143377 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 79682  |
| Lendlease Reit | 1-Day SORA - 1.75% | Monthly | MSCO | 6/24/26 | 111135 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (24953)  |
| Lenzing AG | Euro STR - 0.30% | Monthly | JPHQ | 7/14/26 | 73277 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2617  |
| Leroy Seafood Group | 1-Week NIBOR - 0.275% | Monthly | SEBA | 9/03/26 | 198442 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 1  |
| LG Chem | 1-Day FEDEF - 0.45% | Monthly | MSCO | 6/24/26 | 122309 |  | &nbsp;&nbsp;&nbsp;&nbsp; (57600) |
| LGMS Berhad | 1-Day FEDEF - 4.00% | Monthly | MSCO | 6/25/26 | 23085 |  | &nbsp;&nbsp;&nbsp;&nbsp; 7348  |
| LI Auto Inc | 1-Day HONIA - 0.40% | Monthly | GSCO | 9/11/26 | 275428 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 8601  |
| Lianchuang Electro | 1-Day FEDEF - 11.95% | Monthly | MSCO | 6/24/26 | 2486 |  | &nbsp;&nbsp;&nbsp;&nbsp; 88  |
| Liberta Co Ltd | TONAR - 17.00% | Monthly | GSCO | 6/24/26 | 3680816 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(659)  |
| Liecht Landbk | 1-Day SARON - 2.20% | Monthly | JPHQ | 11/09/26 | 47994 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 1246  |
| Lifco | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/30 | 823451 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (4934)  |
| Life Healthcare Group Holdings Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 1/29/30 | 3325675 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 16791  |
| Lifenet Insurance Company | TONAR - 2.00% | Monthly | GSCO | 6/24/26 | 21258462 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 21665  |
| Lifestyle Fpo | 1-Day RBACR - 4.625% | Monthly | MSCO | 6/24/26 | 117492 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 10172  |
| Lifetech Scientific Corp | 1-Day HONIA - 1.25% | Monthly | GSCO | 6/25/26 | 397563 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (1679)  |
| Lindab International AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 6/20/26 | 1926794 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (5746)  |
| Linde PLC | Euro STR - 0.30% | Monthly | JPHQ | 5/15/26 | 202248 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 21303  |
| Lindex Group | Euro STR - 0.275% | Monthly | SEBA | 7/09/26 | 35667 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 1931  |
| Litalico Inc | TONAR - 0.35% | Monthly | GSCO | 11/17/26 | 6711144 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1459)  |
| LK Technology Holdings | 1-Day HONIA - 14.50% | Monthly | GSCO | 7/13/26 | 294988 | HKD | &nbsp;&nbsp;&nbsp;&nbsp;(291)  |
| London Stock Exchange Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/26 | 91260 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 19775  |
| Longfor Group Hldgs Ltd | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 765768 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 190  |
| Longi Green Energy | 1-Day FEDEF - 4.825% | Monthly | MSCO | 8/06/26 | 125610 |  | &nbsp;&nbsp;&nbsp;&nbsp; (20839)  |
| L'Oreal SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/09/30 | 82262 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (1687)  |
| Lotte Energy Materials Co | 1-Day FEDEF - 3.00% | Monthly | MSCO | 6/24/26 | 116079 |  | &nbsp;&nbsp;&nbsp;&nbsp; (62989)  |
| Lotto Chemical Corporation | 1-Day FEDEF - 1.625% | Monthly | MSCO | 9/16/26 | 42950 |  | &nbsp;&nbsp;&nbsp;&nbsp;(366)  |

---

<br> 86 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Lotus Bakeries NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 181327 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; $3937  |
| Lotus Resources Fpo | 1-Day RBACR - 2.00% | Monthly | MSCO | 7/03/26 | 32191 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 1909  |
| Lovisa Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 84448 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 760  |
| LS Corp | 1-Day FEDEF - 0.625% | Monthly | MSCO | 10/14/26 | 49563 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3639  |
| LS Materials Co Ltd | 1-Day FEDEF - 6.113% | Monthly | MSCO | 8/21/26 | 66665 |  | &nbsp;&nbsp;&nbsp;&nbsp; (5682)  |
| Lunit | 1-Day FEDEF - 12.75% | Monthly | MSCO | 6/24/26 | 89389 |  | &nbsp;&nbsp;&nbsp;&nbsp; 23591  |
| Luxshare Precision | 1-Day FEDEF - 1.75% | Monthly | MSCO | 10/14/26 | 14380 |  | &nbsp;&nbsp;&nbsp;&nbsp;(300)  |
| Luye Pharma Group Limited | 1-Day HONIA - 10.75% | Monthly | GSCO | 7/08/26 | 471762 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 5867  |
| &nbsp;&nbsp;&nbsp;&nbsp; LVMH Moet Hennessy Louis Vuitton <br>SE | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/03/26 | 86878 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (11959)  |
| Lynas Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 44875 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (17474)  |
| M&A Research Institute | TONAR - 1.00% | Monthly | GSCO | 6/24/26 | 6247889 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2164  |
| M3 Inc | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 4842273 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (8599)  |
| M3 Technology Inc | 1-Day FEDEF - 14.625% | Monthly | MSCO | 6/24/26 | 17652 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4190  |
| Maas Group Fpo | 1-Day RBACR - 3.25% | Monthly | MSCO | 6/24/26 | 112901 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (6838)  |
| Macq Group Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 188820 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 9407  |
| Macronix International | 1-Day FEDEF - 1.35% | Monthly | MSCO | 6/24/26 | 161777 |  | &nbsp;&nbsp;&nbsp;&nbsp; (77913)  |
| Magnora ASA | 1-Week NIBOR - 7.00% | Monthly | SEBA | 7/17/30 | 325471 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 1936  |
| Mainfreight Ltd Ord | 1-Day NZOCR - 0.40% | Monthly | MSCO | 6/24/26 | 297775 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; (12362)  |
| Malayan Banking Bhd | 1-Day FEDEF - 3.00% | Monthly | MSCO | 6/22/26 | 132829 |  | &nbsp;&nbsp;&nbsp;&nbsp; (4543)  |
| Malaysia Smelting Corporation | 1-Day FEDEF - 9.50% | Monthly | MSCO | 9/09/26 | 11362 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1825)  |
| Malaysian Resources Corporation | 1-Day FEDEF - 11.875% | Monthly | MSCO | 9/09/26 | 109190 |  | &nbsp;&nbsp;&nbsp;&nbsp; 19478  |
| Mandatum OYJ | Euro STR - 0.275% | Monthly | SEBA | 7/17/30 | 333723 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (50365)  |
| Mani Inc | TONAR - 0.35% | Monthly | GSCO | 8/24/26 | 4564366 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (4544)  |
| Maoyan Entertainment | 1-Day HONIA - 10.00% | Monthly | GSCO | 7/17/26 | 1049416 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 4402  |
| Mapletree Log | 1-Day SORA - 0.40% | Monthly | MSCO | 6/25/26 | 160960 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (18984)  |
| Maq Tech Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 232714 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (9506)  |
| Marcopolo Marine | 1-Day SORA - 7.875% | Monthly | MSCO | 9/08/26 | 26763 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (12557)  |
| Marumae Co Ltd | TONAR - 2.00% | Monthly | GSCO | 6/24/26 | 13708684 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (21263)  |
| Matas A/S | 1-Week CIBOR - 0.275% | Monthly | SEBA | 4/17/26 | 775874 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 10697  |
| Matrix Concepts Holdings | 1-Day FEDEF - 4.125% | Monthly | MSCO | 6/25/26 | 109471 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3256)  |
| Matsuya Co | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 13034021 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (79037)  |
| mBank SA | 1-Day FEDEF - 0.50% | Monthly | MSCS | 7/14/26 | 187752 |  | &nbsp;&nbsp;&nbsp;&nbsp; (166592)  |
| Mcdonald's Holdings Company | TONAR - 0.35% | Monthly | GSCO | 7/06/26 | 10711717 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (4827)  |
| Mcmillan Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 163852 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (9030)  |
| Medacta Group SA | Euro STR - 0.35% | Monthly | JPHQ | 7/17/30 | 79166 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (40406)  |
| Medical G | 1-Day FEDEF - 12.75% | Monthly | MSCO | 11/03/26 | 955 |  | &nbsp;&nbsp;&nbsp;&nbsp;(14)  |
| Medlive Technology Co Ltd | 1-Day HONIA - 6.50% | Monthly | GSCO | 12/01/26 | 50917 | HKD | &nbsp;&nbsp;&nbsp;&nbsp;(43)  |
| Medy Tox Inc | 1-Day FEDEF - 1.50% | Monthly | MSCO | 11/24/26 | 35891 |  | &nbsp;&nbsp;&nbsp;&nbsp;(954)  |
| Mega Financial Holding Co | 1-Day FEDEF - 0.45% | Monthly | MSCO | 6/24/26 | 152919 |  | &nbsp;&nbsp;&nbsp;&nbsp; 11284  |
| Megachips Corp | TONAR - 0.35% | Monthly | GSCO | 8/24/26 | 6066708 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (11421)  |
| Meiji Holdings Co Ltd | TONAR - 0.35% | Monthly | GSCO | 9/28/26 | 6873473 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (3915)  |
| Meituan | 1-Day HONIA - 0.40% | Monthly | GSCO | 7/30/26 | 285905 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 5206 |
| Mekonomen AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 10/18/30 | 658413 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 6817  |
| Melrose Industries PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/24/26 | 198485 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (49741)  |
| Mercari Inc | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 20555380 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(982)  |

---

<br> franklintempleton.com Semiannual Report 87

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Meridian Energy Limited | 1-Day NZOCR - 0.40% | Monthly | MSCO | 6/23/26 | 243208 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; $2906  |
| Meritz Financial | 1-Day FEDEF - 1.50% | Monthly | MSCO | 6/24/26 | 95712 |  | &nbsp;&nbsp;&nbsp;&nbsp; 9623  |
| Merlin Properties Socimi SA | 1-Day EONIA - 0.30% | Monthly | MSCO | 3/12/26 | 212170 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (69834)  |
| Mesoblast Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 41386 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (7682)  |
| Metall Zug AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 3/13/26 | 40509 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 9564  |
| Meteoric Fpo | 1-Day RBACR - 19.125% | Monthly | MSCO | 10/23/26 | 4387 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 739  |
| Metropole TV | 1-Day EONIA - 0.275% | Monthly | MSCO | 12/11/30 | 219063 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 6424  |
| Metsa Board OYJ | Euro STR - 0.32% | Monthly | SEBA | 6/13/26 | 163892 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 24562  |
| Metso Outotec OYJ | Euro STR - 0.28% | Monthly | SEBA | 7/17/26 | 207214 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (70525)  |
| MFS Inc | TONAR - 5.65% | Monthly | GSCO | 8/24/26 | 1311652 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1131  |
| Michelin | 1-Day EONIA - 0.30% | Monthly | MSCS | 12/11/29 | 30365 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(25)  |
| Midac Holdings Co Ltd | TONAR - 0.35% | Monthly | GSCO | 7/15/26 | 7983535 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 4546  |
| Millennium | 1-Day FEDEF - 0.50% | Monthly | MSCS | 7/17/30 | 160475 |  | &nbsp;&nbsp;&nbsp;&nbsp; (132593)  |
| Mineral Resources Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 96784 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (65974)  |
| Ming Yuan Cloud Group Hld | 1-Day HONIA - 1.25% | Monthly | GSCO | 6/23/26 | 1380021 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (19296)  |
| Mingxin Automotive Leather | 1-Day FEDEF - 13.65% | Monthly | MSCO | 6/24/26 | 2527 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1511)  |
| Miniso Group Hldg Ltd | 1-Day HONIA - 1.25% | Monthly | GSCO | 6/25/26 | 599131 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (4903)  |
| Misumi Group Inc | TONAR - 0.35% | Monthly | GSCO | 7/31/26 | 8077265 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(845)  |
| Mitsubishi Pencil Co | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 23028555 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (8110)  |
| Mitsuboshi Belting | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 7495894 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (5761)  |
| Mitsui & Co | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 10998332 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (32037)  |
| Mitsui Fudosan Logistics | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 18600565 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (18242)  |
| Mitsui OSK Lines Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 15195953 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 6472  |
| Mitsui Soko Holdings Co | TONAR - 0.35% | Monthly | GSCO | 11/12/26 | 10425586 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (3831)  |
| Mobimo Holdings AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 1/23/29 | 72670 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (9654)  |
| Mo-Bruk SA | 1-Day FEDEF - 2.375% | Monthly | MSCO | 5/28/26 | 23852 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2472)  |
| Momentum Group AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 3/27/30 | 342207 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (1216)  |
| Monash IVF Fpo | 1-Day RBACR - 2.75% | Monthly | MSCO | 9/28/26 | 43926 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (6426)  |
| Moncler | Euro STR - 0.30% | Monthly | JPHQ | 2/06/31 | 61172 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (10713)  |
| Mondadori Edit | Euro STR - 0.30% | Monthly | JPHQ | 9/03/26 | 62374 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 1147  |
| Monex Group Inc | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 14399120 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (3515)  |
| Money Forward Inc | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 23340709 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 23846  |
| Montea Nv | Euro STR - 0.30% | Monthly | JPHQ | 8/11/26 | 94320 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (5567)  |
| Mortgage Advice Bureau | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/14/30 | 73961 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (7365)  |
| Mosa Industrial Corporation | 1-Day FEDEF - 6.375% | Monthly | MSCO | 6/24/26 | 15732 |  | &nbsp;&nbsp;&nbsp;&nbsp; 38  |
| Mpc Container Ships Asa | 1-Week NIBOR - 0.275% | Monthly | SEBA | 8/13/26 | 2117897 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 5822  |
| MTR Corporation Ltd | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 1342252 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (19950)  |
| Munters Group AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 11/14/30 | 1599016 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (36654)  |
| Musti Group PLC | Euro STR - 0.28% | Monthly | SEBA | 7/12/26 | 21100 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2284  |
| Mycronic Ab | 1-Week STIBOR - 0.275% | Monthly | SEBA | 7/02/26 | 1002755 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (5544)  |
| MYP | 1-Day FEDEF - 9.00% | Monthly | MSCO | 6/24/26 | 21580 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6447  |
| Nagaileben Co | TONAR - 0.35% | Monthly | GSCO | 7/30/26 | 7124844 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 6475  |
| Nan Kang Rubber Tire | 1-Day FEDEF - 9.50% | Monthly | MSCO | 7/20/26 | 51212 |  | &nbsp;&nbsp;&nbsp;&nbsp; 8969  |
| Nan Ya Printed Circuit | 1-Day FEDEF - 7.875% | Monthly | MSCO | 6/24/26 | 45583 |  | &nbsp;&nbsp;&nbsp;&nbsp; (46587)  |
| Nanya Technology Corporation | 1-Day FEDEF - 7.375% | Monthly | MSCO | 6/24/26 | 49807 |  | &nbsp;&nbsp;&nbsp;&nbsp; (75941)  |
| Nat Bank Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 228908 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (2822)  |

---

<br> 88 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| NCAB Group AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 2/24/26 | 1342042 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; $5320  |
| NCC Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/15/30 | 131839 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (3757)  |
| Ncsoft Corp | 1-Day FEDEF - 2.75% | Monthly | MSCO | 11/18/26 | 23915 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1508  |
| NEC Capital Solutions Limited | TONAR - 0.55% | Monthly | GSCO | 8/24/26 | 6221030 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1685)  |
| Nedbank Group Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 8/15/29 | 1679529 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (10586)  |
| Neste Corp. | Euro STR - 0.28% | Monthly | SEBA | 7/17/26 | 171600 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (130598)  |
| Net Insight AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 9/22/26 | 266068 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 4237  |
| Net Protections Hldgs Inc | TONAR - 0.35% | Monthly | GSCO | 11/12/26 | 1910499 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2968  |
| Netlink Nbn | 1-Day SORA - 0.40% | Monthly | MSCO | 6/25/26 | 302696 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (24563)  |
| Neuren Fpo Nz | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 81177 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (26097)  |
| New Oriental ED & Technology | 1-Day HONIA - 0.40% | Monthly | GSCO | 10/07/26 | 394904 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 508  |
| NewRiver REIT PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 7/11/30 | 20650 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(462)  |
| Newron Pharma | 1-Day SARON - 9.40% | Monthly | JPHQ | 10/07/30 | 43862 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (83238)  |
| Nexon Games | 1-Day FEDEF - 18.00% | Monthly | MSCO | 6/24/26 | 119385 |  | &nbsp;&nbsp;&nbsp;&nbsp; 19535 |
| Nextdc Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/22/26 | 230197 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 8165  |
| Nextin Inc | 1-Day FEDEF - 12.75% | Monthly | MSCO | 10/29/26 | 38184 |  | &nbsp;&nbsp;&nbsp;&nbsp;(290)  |
| NHK Spring Co Ltd | TONAR - 0.35% | Monthly | GSCO | 8/14/26 | 4008069 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (10731)  |
| Nibe Industrier AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 8/12/30 | 2269674 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 38043  |
| Nichiha Corp | TONAR - 0.35% | Monthly | GSCO | 11/16/26 | 7012946 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1966)  |
| Nichireki Group Co Ltd | TONAR - 0.35% | Monthly | GSCO | 8/24/26 | 3582776 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1990  |
| Nihon M&A Center Holdings | TONAR - 0.35% | Monthly | GSCO | 7/06/26 | 1946154 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1308)  |
| Nikon Corp | TONAR - 0.35% | Monthly | GSCO | 11/12/26 | 12816938 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1213)  |
| Nine Ent Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 226876 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 38409  |
| Ningbo Jifeng Auto | 1-Day FEDEF - 5.57% | Monthly | MSCO | 9/03/26 | 64810 |  | &nbsp;&nbsp;&nbsp;&nbsp; (7973)  |
| Nio Inc | 1-Day HONIA - 1.00% | Monthly | GSCO | 6/25/26 | 354270 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (22637)  |
| Nippon Avionics Co | TONAR - 4.25% | Monthly | GSCO | 6/24/26 | 9428459 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (7403)  |
| Nippon Carbon Co | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 13326779 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (6975)  |
| Nippon Concrete Industries | TONAR - 0.35% | Monthly | GSCO | 7/13/26 | 3035768 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (2114)  |
| Nippon Sanso Holdings Corp | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 7014023 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2286  |
| Nippon Tel & Tel Corp | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 12571182 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (2905)  |
| Nishimatsu Construction | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 8361684 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (9237)  |
| Nishi-Nippon Railroad Co | TONAR - 0.35% | Monthly | GSCO | 8/18/26 | 8360398 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (13343)  |
| Nissin Foods Holdings Co | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 13538187 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1365  |
| Nitori Holdings Co Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 22432659 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (4694)  |
| Nobia AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 11/11/30 | 766999 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (4917)  |
| Noevir Hldgs Co Ltd | TONAR - 0.35% | Monthly | GSCO | 7/17/26 | 5032699 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (2335)  |
| Nomura Micro Science Co | TONAR - 4.50% | Monthly | GSCO | 6/24/26 | 14821749 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (21783)  |
| Nongfu Spring Co Ltd | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 1130098 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (31667)  |
| Northam Platinum Ltd. | 1-Day FEDEF | Monthly | MSCO | 2/11/31 | 2755710 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (203195)  |
| North-Star International | 1-Day FEDEF - 10.50% | Monthly | MSCO | 6/24/26 | 80916 |  | &nbsp;&nbsp;&nbsp;&nbsp; 30691  |
| Note Inc | TONAR - 18.00% | Monthly | GSCO | 6/24/26 | 3234858 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (2731)  |
| Novatek Microelectronics | 1-Day FEDEF - 2.875% | Monthly | MSCO | 11/20/26 | 66306 |  | &nbsp;&nbsp;&nbsp;&nbsp; 121  |
| Novozymes A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/17/26 | 1130623 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;(87)  |
| NTG Nordic Transport Group | 1-Week CIBOR - 0.275% | Monthly | SEBA | 4/17/26 | 527589 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 12098  |
| Nuvoton Technology Corporation | 1-Day FEDEF - 8.125% | Monthly | MSCO | 10/01/26 | 39548 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6271  |
| Nxera Pharma Co Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 11658790 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1388  |

---

<br> franklintempleton.com Semiannual Report 89

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Ocado Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/26 | 121007 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; $46609  |
| Oceana Group Ltd | 1-Day SABOR - 0.50% | Monthly | MSCO | 8/20/26 | 547344 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;(861)  |
| OCI Holdings Company Ltd | 1-Day FEDEF - 2.375% | Monthly | MSCO | 9/08/26 | 66942 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2960)  |
| Ock Group Berhad | 1-Day FEDEF - 11.25% | Monthly | MSCO | 6/25/26 | 27112 |  | &nbsp;&nbsp;&nbsp;&nbsp;(310)  |
| Ocumension Therapeutics | 1-Day HONIA - 6.50% | Monthly | GSCO | 6/24/26 | 1162744 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 34252  |
| Odakyu Electric Railway | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 5886227 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (2766)  |
| Oem International Ab Ser | 1-Week STIBOR - 0.275% | Monthly | SEBA | 8/31/26 | 553135 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (12197)  |
| Oesterreichische Post AG | Euro STR - 3.80% | Monthly | JPHQ | 8/23/30 | 62650 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (1536)  |
| Omnibridge Fpo Forus | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 78923 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (8061)  |
| OMV AG | Euro STR - 0.30% | Monthly | JPHQ | 3/19/26 | 194664 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (3663)  |
| Oneness Biotech Co Ltd | 1-Day FEDEF - 5.875% | Monthly | MSCO | 6/24/26 | 49246 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1329  |
| Open Door Inc | TONAR - 13.75% | Monthly | GSCO | 6/24/26 | 2390775 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 6213  |
| Oriental Land Co | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 16467485 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 7030  |
| Orsted A/S | 1-Week CIBOR - 0.275% | Monthly | SEBA | 5/24/26 | 1563398 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 95149  |
| Osaka Soda Co Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 17959407 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (28226)  |
| Osaka Titanium Technologies | TONAR - 7.00% | Monthly | GSCO | 6/24/26 | 6327495 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (15958)  |
| Outokumpu Oyj | Euro STR - 0.275% | Monthly | SEBA | 7/20/26 | 145743 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (20054)  |
| Oxford BioMedica PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/26/30 | 25406 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (31306)  |
| Oxford Instruments PLC | 1-Day SONIA - 0.30% | Monthly | MSCO | 4/25/26 | 129889 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 5212  |
| Oxford Nanopore Technologies PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 5/13/26 | 82484 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (1035)  |
| P/F Bakkafrost | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/19/30 | 523838 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (1362)  |
| Pacific Basin Shipping Lt | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 478199 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (13236)  |
| Pagegroup Plc Ord | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/19/26 | 99487 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 3068  |
| Paladin Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 65473 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (1847)  |
| Pan African Resource Plc | 1-Day SABOR - 0.50% | Monthly | MSCO | 8/25/26 | 918262 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (25988)  |
| Pandox Ab Ser B | 1-Week STIBOR - 0.275% | Monthly | SEBA | 7/17/28 | 590799 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (3884)  |
| Panion & BF Biotech Inc | 1-Day FEDEF - 4.75% | Monthly | MSCO | 9/14/26 | 10764 |  | &nbsp;&nbsp;&nbsp;&nbsp; 347  |
| Paradox Interactive AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 1/10/31 | 1135856 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (2552)  |
| Paratus Energy Services | 1-Week NIBOR - 0.275% | Monthly | SEBA | 5/07/26 | 549529 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (6739)  |
| Park Systems | 1-Day FEDEF - 0.45% | Monthly | MSCO | 6/24/26 | 48167 |  | &nbsp;&nbsp;&nbsp;&nbsp; 8240  |
| Patrizia AG | Euro STR - 1.00% | Monthly | JPHQ | 7/17/26 | 94922 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (20651) |
| PCCW Limited | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 1555073 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (27591)  |
| Pearlabyss | 1-Day FEDEF - 3.00% | Monthly | MSCO | 6/24/26 | 208430 |  | &nbsp;&nbsp;&nbsp;&nbsp; 13348  |
| Pegasus | 1-Day FEDEF - 5.25% | Monthly | MSCO | 10/05/26 | 150716 |  | &nbsp;&nbsp;&nbsp;&nbsp; 15385  |
| Pennon Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/30 | 190042 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (169961)  |
| Pentamaster Corporation | 1-Day FEDEF - 16.125% | Monthly | MSCO | 11/19/26 | 16157 |  | &nbsp;&nbsp;&nbsp;&nbsp;(24)  |
| People And Technology Inc | 1-Day FEDEF - 4.50% | Monthly | MSCO | 7/23/26 | 55433 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3937)  |
| Pernod Ricard | 1-Day EONIA - 0.30% | Monthly | MSCS | 11/27/30 | 227332 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 76215  |
| Perpetual Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 180485 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (6209)  |
| Perseus Proteomics Inc | TONAR - 3.50% | Monthly | GSCO | 6/24/26 | 1003900 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1351  |
| Petkim | 1-Day FEDEF - 12.75% | Monthly | MSCO | 9/21/26 | 69888 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6231  |
| Pets at Home Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCO | 3/04/30 | 57906 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (5745)  |
| Pexagroup Fpo | 1-Day RBACR -0.40% | Monthly | MSCO | 7/03/26 | 129856 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (6008)  |
| Pharma Mar SA | 1-Day EONIA - 0.35% | Monthly | MSCO | 1/22/31 | 132768 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (61520)  |
| Pharming Group | Euro STR - 0.30% | Monthly | JPHQ | 11/03/26 | 34243 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (6967)  |
| Philex Mining Corporation | 1-Day FEDEF - 2.50% | Monthly | MSCO | 9/28/26 | 22324 |  | &nbsp;&nbsp;&nbsp;&nbsp; 437  |

---

<br> 90 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Phoenix Group Holdings PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/30 | 219207 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; $(96414)  |
| PI Advanced Materials Co | 1-Day FEDEF - 2.625% | Monthly | MSCO | 9/16/26 | 26117 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2251  |
| Piaggio | Euro STR - 0.30% | Monthly | JPHQ | 7/14/26 | 195900 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (8111)  |
| Pilbara Minerals Fpo | 1-Day RBACR -0.40% | Monthly | MSCO | 6/24/26 | 95072 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (128546)  |
| Pillar Corporation | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 7321046 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1785)  |
| Pinewood Technologies Group | 1-Day SONIA - 0.275% | Monthly | MSCO | 10/16/30 | 78788 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (5664)  |
| Piolax Inc | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 9466056 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1450  |
| Planisware | 1-Day EONIA - 0.275% | Monthly | MSCO | 10/23/26 | 78096 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (2511)  |
| PNE AG | Euro STR - 0.70% | Monthly | JPHQ | 7/13/26 | 121275 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 35239  |
| Poco Holdings Co Ltd | 1-Day FEDEF - 3.78% | Monthly | MSCO | 9/02/26 | 31706 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1470  |
| Pola Orbis Holdings Inc | TONAR - 0.35% | Monthly | GSCO | 9/23/26 | 2389950 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(175)  |
| Poongsan | 1-Day FEDEF - 0.45% | Monthly | MSCO | 6/24/26 | 48808 |  | &nbsp;&nbsp;&nbsp;&nbsp; 11955  |
| Posco Future M Co Inc | 1-Day FEDEF - 7.00% | Monthly | MSCO | 9/09/26 | 82870 |  | &nbsp;&nbsp;&nbsp;&nbsp; (31590)  |
| Power Assets Holdings Ltd | 1-Day HONIA - 0.40% | Monthly | GSCO | 7/07/26 | 664153 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (2922)  |
| Powerchip Semiconductor | 1-Day FEDEF - 3.125% | Monthly | MSCO | 6/23/26 | 84846 |  | &nbsp;&nbsp;&nbsp;&nbsp; (91874)  |
| Ppb Group Bhd | 1-Day FEDEF - 18.00% | Monthly | MSCO | 6/25/26 | 15443 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1721)  |
| PPHE Hotel Group Ltd | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/02/30 | 65013 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (42380)  |
| Precious Shipping | 1-Day FEDEF - 12.75% | Monthly | MSCO | 8/14/26 | 40236 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1396  |
| Propel Fp Fpo | 1-Day RBACR - 4.50% | Monthly | MSCO | 6/24/26 | 152291 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (10804)  |
| Prored Partners Co | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 863403 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 443  |
| Prosperity Real Estate | 1-Day HONIA - 0.40% | Monthly | GSCO | 9/08/31 | 127828 | HKD | &nbsp;&nbsp;&nbsp;&nbsp;(618)  |
| Prosus NV | Euro STR - 0.30% | Monthly | JPHQ | 9/20/30 | 33823 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (5117)  |
| Protector Forsikring ASA | 1-Week NIBOR - 0.275% | Monthly | SEBA | 8/28/30 | 844130 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (4606)  |
| PSP | 1-Day SARON - 0.35% | Monthly | JPHQ | 12/03/30 | 299171 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (17770)  |
| Ptt Public Company | 1-Day FEDEF - 0.40% | Monthly | MSCO | 7/17/26 | 80567 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2146  |
| Public Bank Bhd | 1-Day FEDEF - 5.50% | Monthly | MSCO | 6/24/26 | 67630 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2528)  |
| Public Property Invest | 1-Week NIBOR - 0.275% | Monthly | SEBA | 10/05/26 | 321337 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 331  |
| Publicis Groupe SA | 1-Day EONIA - 0.275% | Monthly | MSCO | 11/23/26 | 47206 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(850)  |
| Puma SE | Euro STR - 0.30% | Monthly | JPHQ | 9/16/26 | 130504 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 7930  |
| PureTech Health PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/30 | 74128 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 14592  |
| Pwr Hlding Fpo | 1-Day RBACR - 0.788% | Monthly | MSCO | 6/24/26 | 191923 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (19791)  |
| Qinghai Saint Lake | 1-Day FEDEF - 1.80% | Monthly | MSCO | 7/08/26 | 50905 |  | &nbsp;&nbsp;&nbsp;&nbsp; (26990)  |
| Qisda Corporation | 1-Day FEDEF - 16.00% | Monthly | MSCO | 6/23/26 | 75925 |  | &nbsp;&nbsp;&nbsp;&nbsp; 13481  |
| QL Resources Bhd | 1-Day FEDEF - 12.75% | Monthly | MSCO | 11/27/26 | 19196 |  | &nbsp;&nbsp;&nbsp;&nbsp; 665  |
| Qorialimit Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 85602 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (17696)  |
| Quang Viet Enterprise Co | 1-Day FEDEF - 5.625% | Monthly | MSCO | 6/24/26 | 28108 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1132)  |
| Quilter Plc | 1-Day SABOR - 0.50% | Monthly | MSCO | 7/16/26 | 2174305 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (11203)  |
| Rainbow Robotics | 1-Day FEDEF - 9.00% | Monthly | MSCO | 6/24/26 | 48037 |  | &nbsp;&nbsp;&nbsp;&nbsp; (15974)  |
| Raspberry PI Holdings Plc | 1-Day SONIA - 11.50% | Monthly | MSCO | 10/07/26 | 84093 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 14671  |
| Ratch Group Pcl | 1-Day FEDEF - 17.125% | Monthly | MSCO | 9/23/26 | 26431 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2629)  |
| Rathbones Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/30/30 | 100845 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (6737)  |
| Rational Ag | Euro STR - 0.30% | Monthly | JPHQ | 7/21/30 | 70174 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 3000  |
| Ratos AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/26 | 1297302 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (10553)  |
| RCE Capital Bhd | 1-Day FEDEF - 13.25% | Monthly | MSCO | 9/09/26 | 3541 |  | &nbsp;&nbsp;&nbsp;&nbsp;(150)  |
| Reckitt Benckiser Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/30 | 111417 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (34495)  |
| Recordati SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/26/29 | 73724 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2776  |

---

<br> franklintempleton.com Semiannual Report 91

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Recticel | Euro STR - 0.30% | Monthly | JPHQ | 11/21/30 | 41341 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; $1278  |
| Redeia Corporacion SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 8/05/30 | 220545 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 30284 |
| Region Gp Stapled | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 93758 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (2153)  |
| RELX PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/30 | 74673 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 14505  |
| Remgro Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCO | 10/16/30 | 1726956 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (10269)  |
| Remy Cointreau | 1-Day EONIA - 0.30% | Monthly | MSCS | 12/11/30 | 308877 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 127277  |
| Renesas Electronics Corp | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 14983252 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2284  |
| Renew Holdings ORD | 1-Day SONIA - 0.275% | Monthly | MSCO | 4/20/26 | 129656 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (25028)  |
| Renova Inc | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 5657675 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (7783)  |
| Rentokil Initial PLC | 1-Day FEDEF - 0.65% | Monthly | MSCS | 11/27/30 | 121433 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (21676)  |
| Revenio Group Corp. | Euro STR - 0.28% | Monthly | SEBA | 7/17/30 | 94963 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 9732  |
| Rieter | Euro STR - 0.35% | Monthly | JPHQ | 7/24/29 | 61577 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 5507  |
| Riken Keiki Co Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 16800413 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (11656)  |
| Ringkjoebing Landbobank A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/17/26 | 1434361 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; (32607)  |
| Rio Tinto Ord | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/19/26 | 116872 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (26655)  |
| Riso Kyoiku Co Ltd | TONAR - 0.35% | Monthly | GSCO | 8/24/26 | 995708 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 468  |
| Riverstone | 1-Day SORA - 2.125% | Monthly | MSCO | 6/25/26 | 117735 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (21575)  |
| Ronshin Group | 1-Day FEDEF - 14.35% | Monthly | MSCO | 8/20/26 | 1186 |  | &nbsp;&nbsp;&nbsp;&nbsp;(102)  |
| RTL Group | Euro STR - 0.30% | Monthly | JPHQ | 1/30/31 | 200081 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (15006)  |
| Run Long Construction Co | 1-Day FEDEF - 4.00% | Monthly | MSCO | 8/31/26 | 42232 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3840  |
| Ruralfunds Stapled | 1-Day RBACR - 0.788% | Monthly | MSCO | 6/24/26 | 59038 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (3291)  |
| RVRC Holding | 1-Week STIBOR - 0.28% | Monthly | SEBA | 10/11/30 | 727507 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (29450)  |
| Rwc Corp Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 8/03/26 | 151802 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (1597)  |
| RWE AG | Euro STR - 0.30% | Monthly | JPHQ | 5/15/26 | 67254 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (18189)  |
| Ryohin Keikaku Co | TONAR - 0.35% | Monthly | GSCO | 8/31/26 | 5353284 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 547  |
|  S&P Biotechnology Select Industry Total Return Index | SOFR - 0.45% | Monthly | GSCO | 6/17/26 | 10423743 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1041808)  |
| Sabanci Holding | 1-Day FEDEF - 0.53% | Monthly | MSCO | 9/21/26 | 295005 |  | &nbsp;&nbsp;&nbsp;&nbsp; 28154  |
| Sacyr SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/30 | 261747 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (117367)  |
| Safestore Holdings PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 10/21/30 | 216213 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 2666  |
| Saga PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/30 | 108759 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (161173)  |
| Sagax AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 12/06/30 | 2025932 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 7182  |
| Saint Gobain | 1-Day EONIA - 0.275% | Monthly | MSCO | 6/03/26 | 167108 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 20986  |
| SalMar ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/29/30 | 1613962 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (40775)  |
| Salmon Evolution ASA | 1-Week NIBOR - 8.50% | Monthly | SEBA | 7/12/26 | 1107277 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 25351  |
| Sampo PLC | Euro STR - 0.275% | Monthly | SEBA | 7/17/30 | 257318 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (45679)  |
| Samsonite Group SA | 1-Day HONIA - 0.40% | Monthly | GSCO | 7/07/26 | 551595 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (12812)  |
| Samsung F&Mins | 1-Day FEDEF - 0.45% | Monthly | MSCO | 6/24/26 | 83648 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1375)  |
| Samsung Sdi Co Ltd | 1-Day FEDEF - 0.45% | Monthly | MSCO | 6/24/26 | 113661 |  | &nbsp;&nbsp;&nbsp;&nbsp; (51985)  |
| <sup>e</sup>San Fu Chemical Co Ltd | 1-Day FEDEF | Monthly | MSCO | 8/18/26 |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (2020)  |
| San Fu Chemical Co Ltd | 1-Day FEDEF - 3.094% | Monthly | MSCO | 8/18/26 | 28306 |  | &nbsp;&nbsp;&nbsp;&nbsp; 5780  |
| Sanbio Company Limited | TONAR - 8.75% | Monthly | GSCO | 6/24/26 | 6808892 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 9690  |
| Sands China Ltd | 1-Day HONIA - 0.40% | Monthly | GSCO | 7/23/26 | 353341 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (5803)  |
| Sanken Electric Co | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 11332297 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 23991  |
| Sanlam Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 7/17/30 | 2612658 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (5513)  |
| Sanlorenzo | Euro STR - 0.30% | Monthly | JPHQ | 10/20/30 | 123994 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 4180  |

---

<br> 92 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Santanamin Fpo | 1-Day RBACR - 6.50% | Monthly | MSCO | 6/24/26 | 81076 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; $(27348)  |
| Santander Bank Polska SA | 1-Day FEDEF - 0.50% | Monthly | MSCS | 7/17/30 | 51833 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1596)  |
| Santhera | 1-Day SARON - 3.75% | Monthly | JPHQ | 9/07/26 | 27979 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 1764  |
| SAP SE | Euro STR - 0.30% | Monthly | JPHQ | 11/27/30 | 167511 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 26503  |
| Sapporo Holdings Limited | TONAR - 0.35% | Monthly | GSCO | 9/02/26 | 11249988 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (5768)  |
| SBI Aruhi Corporation | TONAR - 0.75% | Monthly | GSCO | 6/24/26 | 11820741 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (10603)  |
| Scg Packaging Pcl | 1-Day FEDEF - 15.00% | Monthly | MSCO | 6/26/26 | 9419 |  | &nbsp;&nbsp;&nbsp;&nbsp; 449  |
| Schibsted ASA | 1-Day FEDEF | Monthly | SEBA | 1/16/31 | 1133378 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (127815)  |
| Schneider Electric SE | 1-Day EONIA - 0.275% | Monthly | MSCO | 6/25/26 | 106995 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (5246)  |
|  Schoeller-Bleckmann Oilfield Equipment AG | Euro STR - 0.30% | Monthly | JPHQ | 7/13/26 | 137553 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 6714  |
| Sci Pharmtech Inc | 1-Day FEDEF - 4.875% | Monthly | MSCO | 6/24/26 | 54506 |  | &nbsp;&nbsp;&nbsp;&nbsp; 14345  |
| Scinopharm Taiwan Ltd | 1-Day FEDEF - 3.625% | Monthly | MSCO | 6/24/26 | 66534 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2452  |
| SD Biosensor | 1-Day FEDEF - 2.75% | Monthly | MSCO | 6/24/26 | 39845 |  | &nbsp;&nbsp;&nbsp;&nbsp; 5301  |
| Sdiptech AB | 1-Week STIBOR - 1.00% | Monthly | SEBA | 7/17/26 | 1816870 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 6040  |
| Seatrium Ltd | 1-Day SORA - 1.375% | Monthly | MSCO | 6/25/26 | 37022 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (1128)  |
| Seche Environnement | 1-Day EONIA - 0.275% | Monthly | MSCO | 3/30/26 | 38230 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 3413  |
| secunet Security Networks AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 61475 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 7727  |
| Sedana Medical AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 11/14/30 | 245558 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 191 |
| Sega Sammy Holdings Inc | TONAR - 0.35% | Monthly | GSCO | 9/08/26 | 6822775 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 5684  |
| Segro PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/30 | 101455 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (14388)  |
| Sejin Heavy | 1-Day FEDEF - 14.25% | Monthly | MSCO | 6/24/26 | 40026 |  | &nbsp;&nbsp;&nbsp;&nbsp; (15850)  |
| Sembcorp Ind | 1-Day SORA - 0.40% | Monthly | MSCO | 6/25/26 | 115214 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 7573  |
| Senior PLC | 1-Day SONIA - 0.30% | Monthly | MSCO | 3/20/26 | 54870 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 1381  |
| Seobu T&D | 1-Day FEDEF - 5.375% | Monthly | MSCO | 6/24/26 | 95172 |  | &nbsp;&nbsp;&nbsp;&nbsp; (13529)  |
| Seojin System | 1-Day FEDEF - 8.00% | Monthly | MSCO | 6/24/26 | 73494 |  | &nbsp;&nbsp;&nbsp;&nbsp;(384)  |
| Septeni Holdings | TONAR - 1.00% | Monthly | GSCO | 6/24/26 | 17814092 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1904  |
| Serica Energy Plc Ord | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/19/26 | 131706 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 9259  |
| Sesa | Euro STR - 1.25% | Monthly | JPHQ | 3/25/26 | 73779 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (10696)  |
| Seven Bank Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 18885311 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (12266)  |
| Severfield PLC | 1-Day FEDEF | Monthly | MSCO | 1/02/31 | 30694 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 14307  |
| Severn Trent PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/30 | 117521 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (18385)  |
| Severn Trent PLC | 1-Day SONIA - 0.30% | Monthly | MSCO | 1/08/31 | 14199 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (2165)  |
| SG Holdings Co Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 21195178 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2823  |
| SGS SA | 1-Day SARON - 0.35% | Monthly | JPHQ | 6/17/29 | 103981 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (13179)  |
| Shaftesbury Capital PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/26/30 | 209494 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (21943)  |
| Shan Dong Yisheng | 1-Day FEDEF - 8.85% | Monthly | MSCO | 11/09/26 | 19212 |  | &nbsp;&nbsp;&nbsp;&nbsp; 109  |
| Shanghai United Imaging | 1-Day FEDEF - 16.058% | Monthly | MSCO | 6/26/26 | 14820 |  | &nbsp;&nbsp;&nbsp;&nbsp;(760)  |
| Shanghai Wayne Enterprises | 1-Day FEDEF - 13.35% | Monthly | MSCO | 6/24/26 | 2078 |  | &nbsp;&nbsp;&nbsp;&nbsp;(566)  |
| Shangri-La Asia | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 664222 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (3916)  |
| Sheng Siong | 1-Day SORA - 0.40% | Monthly | MSCO | 6/25/26 | 106089 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (36287)  |
| Shenzhen Chipscreen | 1-Day FEDEF - 10.45% | Monthly | MSCO | 6/25/26 | 5099 |  | &nbsp;&nbsp;&nbsp;&nbsp;(469)  |
| Shenzhen Expressway Corporation | 1-Day HONIA - 0.40% | Monthly | GSCO | 7/17/26 | 739124 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (8262)  |
| Shenzhen Investment Ltd | 1-Day HONIA - 1.00% | Monthly | GSCO | 7/10/26 | 844767 | HKD | &nbsp;&nbsp;&nbsp;&nbsp;(847)  |
| Shenzhen Sunway Co | 1-Day FEDEF - 5.937% | Monthly | MSCO | 7/23/26 | 21942 |  | &nbsp;&nbsp;&nbsp;&nbsp; (7439)  |
| Shift Up | 1-Day FEDEF - 9.00% | Monthly | MSCO | 6/24/26 | 50136 |  | &nbsp;&nbsp;&nbsp;&nbsp; 14557  |

---

<br> franklintempleton.com Semiannual Report 93

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Shima Seiki Mfg | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 12538110 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; $(8168)  |
| Shimano Inc | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 25805147 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 27937  |
| Shin ETSU Chemical Co | TONAR - 0.35% | Monthly | GSCO | 9/23/26 | 6644400 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 395  |
| Shinhan Alpha REIT | 1-Day FEDEF - 16.125% | Monthly | MSCO | 6/24/26 | 21797 |  | &nbsp;&nbsp;&nbsp;&nbsp; 84  |
| Shiseido Company Limited | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 12472441 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 8759  |
| Shochiku Co Ltd | TONAR - 0.75% | Monthly | GSCO | 6/24/26 | 21809478 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 5852  |
| Shoei Co Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 6146447 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (3251)  |
| Shoei Foods Corp | TONAR - 1.25% | Monthly | GSCO | 6/24/26 | 17074344 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (5789)  |
| Shop Apotheke Europe NV | Euro STR - 0.85% | Monthly | JPHQ | 7/17/30 | 145898 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 63177  |
| Shurgard | Euro STR - 0.30% | Monthly | JPHQ | 4/14/26 | 192420 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (2088)  |
| Siam Cement Co | 1-Day FEDEF - 0.75% | Monthly | MSCO | 6/25/26 | 47045 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4226  |
| Siam Global House Public | 1-Day FEDEF - 13.75% | Monthly | MSCO | 6/25/26 | 26097 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2307)  |
| Sibanye Stillwater Ltd | 1-Day SABOR - 0.75% | Monthly | MSCO | 4/25/30 | 1829115 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (9779)  |
| Siemens AG | Euro STR - 0.30% | Monthly | JPHQ | 6/25/26 | 196392 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (9621)  |
| Siemens Healthineers AG | Euro STR - 0.30% | Monthly | JPHQ | 8/21/30 | 76224 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 6115  |
| Sika | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/08/30 | 75222 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 16606  |
| Silergy Corp | 1-Day FEDEF - 4.25% | Monthly | MSCO | 6/24/26 | 82273 |  | &nbsp;&nbsp;&nbsp;&nbsp; 36355  |
| Silicon2 | 1-Day FEDEF - 6.50% | Monthly | MSCO | 6/24/26 | 72766 |  | &nbsp;&nbsp;&nbsp;&nbsp; 18564  |
| Siltronic AG | Euro STR - 1.05% | Monthly | JPHQ | 5/13/26 | 142129 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (47578)  |
| Simmtech Co | 1-Day FEDEF - 5.25% | Monthly | MSCO | 9/07/26 | 90430 |  | &nbsp;&nbsp;&nbsp;&nbsp; (60010)  |
| Singapore Post | 1-Day SORA - 2.50% | Monthly | MSCO | 6/22/26 | 351752 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; 75039  |
| Singapore Telecommunications | 1-Day SORA - 0.40% | Monthly | MSCO | 6/25/26 | 104651 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (20968)  |
| Sinko Industries Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 9926576 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (8935)  |
| Sino Land Co | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 1568634 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (56448)  |
| Sinopec Kantons Hldgs | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 875813 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 9072  |
| Sitc International | 1-Day HONIA - 0.40% | Monthly | GSCO | 7/31/26 | 288336 | HKD | &nbsp;&nbsp;&nbsp;&nbsp;(679)  |
| SK Bioscience Co Ltd | 1-Day FEDEF - 0.875% | Monthly | MSCO | 6/24/26 | 71868 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1534)  |
| Sk Eternix | 1-Day FEDEF - 10.25% | Monthly | MSCO | 6/24/26 | 48923 |  | &nbsp;&nbsp;&nbsp;&nbsp; 14121  |
| SK Gas Co | 1-Day FEDEF - 1.50% | Monthly | MSCO | 9/16/26 | 35415 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1318  |
| Sk Ie Technology | 1-Day FEDEF - 4.75% | Monthly | MSCO | 6/24/26 | 148685 |  | &nbsp;&nbsp;&nbsp;&nbsp; 9738  |
| SK Innovation | 1-Day FEDEF - 2.75% | Monthly | MSCO | 6/24/26 | 109910 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2015)  |
| SK REIT | 1-Day FEDEF - 3.75% | Monthly | MSCO | 6/24/26 | 14883 |  | &nbsp;&nbsp;&nbsp;&nbsp;(779)  |
| Skandinaviska Enskilda Bank | 1-Day FEDEF | Monthly | SEBA | 2/11/26 | 703971 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (1668)  |
| SKBP | 1-Day FEDEF - 0.875% | Monthly | MSCO | 6/24/26 | 81469 |  | &nbsp;&nbsp;&nbsp;&nbsp; (29965)  |
| SKC | 1-Day FEDEF - 28.75% | Monthly | MSCO | 6/24/26 | 159932 |  | &nbsp;&nbsp;&nbsp;&nbsp; 7150  |
| Skchem | 1-Day FEDEF - 1.625% | Monthly | MSCO | 6/24/26 | 164452 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4373 |
| SkiStar AB | 1-Week STIBOR - 0.73% | Monthly | SEBA | 7/15/29 | 738679 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (7912)  |
| Skycity Entertainment Group | 1-Day NZOCR -0.40% | Monthly | MSCO | 6/24/26 | 92592 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; 5863  |
| Sm Prime Holdings Inc | 1-Day FEDEF - 2.50% | Monthly | MSCO | 6/23/26 | 78785 |  | &nbsp;&nbsp;&nbsp;&nbsp;(703)  |
| Smc Corp | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 19549768 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (16344)  |
| Smoore Intl Hdgs Ltd | 1-Day HONIA - 1.75% | Monthly | GSCO | 6/25/26 | 714880 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 25200  |
| Smurfit Westrock PLC | 1-Day FEDEF | Monthly | MSCO | 2/24/26 | 72078 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 9600  |
| Snam SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 213713 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (57084)  |
| Snt Dynamics | 1-Day FEDEF - 7.125% | Monthly | MSCO | 6/24/26 | 69380 |  | &nbsp;&nbsp;&nbsp;&nbsp; 18910  |
| Sodexo | 1-Day EONIA - 0.30% | Monthly | MSCS | 11/27/30 | 178100 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 31165  |
| Softbank Group Corp | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 4067671 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (17178)  |

---

<br> 94 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| SoftwareONE | Euro STR - 0.35% | Monthly | JPHQ | 7/15/30 | 64635 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; $(6627)  |
| S-Oil | 1-Day FEDEF - 2.125% | Monthly | MSCO | 6/24/26 | 140054 |  | &nbsp;&nbsp;&nbsp;&nbsp; (27091)  |
| Soitec SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/12/30 | 58783 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 25017  |
| &nbsp;&nbsp;&nbsp;&nbsp; Solaria Energia y Medio Ambiente <br>SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/30 | 77989 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (90997)  |
| Solasia Pharma | TONAR - 5.50% | Monthly | GSCO | 6/24/26 | 5867490 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(327)  |
| SolGold PLC | 1-Day SONIA - 0.56% | Monthly | MSCS | 7/17/26 | 69023 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (211077)  |
| Solum | 1-Day FEDEF - 5.625% | Monthly | MSCO | 6/24/26 | 77493 |  | &nbsp;&nbsp;&nbsp;&nbsp; 237  |
| Solus Advanced Materials | 1-Day FEDEF - 6.622% | Monthly | MSCO | 6/24/26 | 109953 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6154  |
| Somero Enterprises | 1-Day SONIA - 1.25% | Monthly | MSCO | 12/01/30 | 42373 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 4546  |
| Sonova Holding AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 8/08/30 | 42190 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 7429  |
| Soul WH Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 217193 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 11319  |
| South32 Ltd. | 1-Day SABOR - 2.125% | Monthly | MSCS | 10/10/30 | 1375075 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 721  |
| Sparebank 1 Oestlandet | 1-Week NIBOR - 0.28% | Monthly | SEBA | 12/23/30 | 1270144 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (9576)  |
| SpareBank 1 SMN | 1-Week NIBOR - 1.50% | Monthly | SEBA | 10/23/30 | 3410898 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (25763)  |
| SpareBank 1 SR Bank ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/22/30 | 3268342 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (17681)  |
| Sparebanken Vest | 1-Week NIBOR - 0.275% | Monthly | SEBA | 3/24/26 | 1223281 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (22927)  |
| Spark New Zealand Ltd | 1-Day NZOCR - 0.40% | Monthly | MSCO | 9/03/26 | 143127 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; 7951  |
| Spirax-Sarco Engineering PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/30 | 155207 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 26855  |
| Square Enix Holdings Co | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 8836638 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 3778  |
| SSE PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/28 | 112574 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (31640)  |
| SSY Group Limited | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 979659 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (10358)  |
| St Barbara Fpo | 1-Day RBACR - 0.675% | Monthly | MSCO | 6/24/26 | 70678 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (35648)  |
| Standard Bank Group Ltd | 1-Day SABOR - 0.50% | Monthly | MSCO | 6/29/26 | 1111852 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (9635)  |
| Star Asia Investoment Corp | TONAR - 0.35% | Monthly | GSCO | 6/23/26 | 13951692 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (8314)  |
| Star Micronics Co | TONAR - 0.35% | Monthly | GSCO | 10/15/26 | 11438093 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (24514)  |
| Starlux Airlines Co Ltd | 1-Day FEDEF - 6.375% | Monthly | MSCO | 6/24/26 | 93361 |  | &nbsp;&nbsp;&nbsp;&nbsp; 14127  |
| Steadfast Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 134407 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 12299  |
| Stef | 1-Day EONIA - 0.275% | Monthly | MSCO | 10/28/26 | 26589 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 44  |
| Stellantis | Euro STR - 0.30% | Monthly | JPHQ | 5/08/26 | 201426 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (14506)  |
| Storskogen Group AB | 1-Week STIBOR - 0.75% | Monthly | SEBA | 7/17/30 | 2545254 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 57246  |
| STOXX Europe 600 Utilities Index | 1-Day EONIA - 0.45% | Monthly | MSCS | 9/13/30 | 750172 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 6290  |
| STOXX Europe 600 Utilities Index | 1-Day EONIA - 0.45% | Monthly | MSCS | 3/25/35 | 461486 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 3603  |
| Straumann Group | 1-Day SARON - 0.35% | Monthly | JPHQ | 10/18/30 | 167786 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 7018  |
| Strike Energy Fpo | 1-Day RBACR - 3.625% | Monthly | MSCO | 6/24/26 | 91552 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 11812  |
| STX Engine | 1-Day FEDEF - 17.00% | Monthly | MSCO | 6/24/26 | 26893 |  | &nbsp;&nbsp;&nbsp;&nbsp; (8448)  |
| Sudzucker AG | Euro STR - 0.30% | Monthly | JPHQ | 8/19/30 | 164034 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 12476  |
| Sumber Alfaria Trijaya Tb | 1-Day FEDEF - 4.00% | Monthly | MSCO | 6/24/26 | 78052 |  | &nbsp;&nbsp;&nbsp;&nbsp; 18733  |
| Sumco Corporation | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 7735098 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (4948)  |
| Sumitomo Metal Mining Co | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 5564891 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (18156)  |
| Sun Yad Construction Co | 1-Day FEDEF - 16.75% | Monthly | MSCO | 6/24/26 | 110833 |  | &nbsp;&nbsp;&nbsp;&nbsp; (8082)  |
| Sunac Services Hldgs | 1-Day HONIA - 2.09% | Monthly | GSCO | 11/13/26 | 523840 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 3844  |
| Sungeel Hitech | 1-Day FEDEF - 17.00% | Monthly | MSCO | 6/24/26 | 57323 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3710)  |
| Sungshin Cement Industry | 1-Day FEDEF - 4.625% | Monthly | MSCO | 10/13/26 | 49691 |  | &nbsp;&nbsp;&nbsp;&nbsp; 810  |
| Sunresin New Mater | 1-Day FEDEF - 6.05% | Monthly | MSCO | 9/29/26 | 16128 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1085  |
| Sunrise | 1-Day SARON - 0.35% | Monthly | JPHQ | 5/08/26 | 101528 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 10043  |

---

<br> franklintempleton.com Semiannual Report 95

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Sunshine Lake Pharma Co | HIBOR - 1.75% | Monthly | GSCO | 7/06/26 | 192546 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; $4436  |
| Super Hi International | 1-Day HONIA - 6.25% | Monthly | GSCO | 7/20/26 | 634220 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 4756  |
| Supermarket Income REIT | 1-Day SONIA - 0.28% | Monthly | MSCS | 9/16/30 | 56616 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (4938)  |
| Supply Net Fpo | 1-Day RBACR - 0.875% | Monthly | MSCO | 9/24/26 | 94219 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 159  |
| Surgical Science Sweden AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 8/01/30 | 308155 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 22710  |
| Suzhou Institute of Build | 1-Day FEDEF - 3.729% | Monthly | MSCO | 9/02/26 | 25119 |  | &nbsp;&nbsp;&nbsp;&nbsp; 85  |
| Svenska Handelsbanken | 1-Week STIBOR - 0.275% | Monthly | SEBA | 5/08/30 | 1819218 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (13971)  |
| Swedencare AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/13/26 | 205390 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 467 |
| Swisscom AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 2/03/31 | 266958 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (36597)  |
| Sword Group SE | 1-Day EONIA - 4.00% | Monthly | MSCS | 7/17/29 | 19966 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 396  |
| Syarikat Takaful Malaysia | 1-Day FEDEF - 3.125% | Monthly | MSCO | 6/25/26 | 80023 |  | &nbsp;&nbsp;&nbsp;&nbsp; (4852)  |
| Sydbank AS | 1-Week CIBOR - 0.275% | Monthly | SEBA | 5/27/26 | 945850 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; (25296)  |
| Syensqo | Euro STR - 0.30% | Monthly | JPHQ | 5/08/26 | 215454 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (10182)  |
| Syuppin Co. Limited | TONAR - 0.35% | Monthly | GSCO | 12/01/26 | 988356 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 18  |
| Ta Ya Electronic Wire & Co | 1-Day FEDEF - 9.25% | Monthly | MSCO | 6/24/26 | 65896 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1289  |
| TAG Immobilien AG | Euro STR - 0.30% | Monthly | JPHQ | 8/16/30 | 188277 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (6986)  |
| Taihan Elecwire | 1-Day FEDEF - 5.50% | Monthly | MSCO | 6/24/26 | 95553 |  | &nbsp;&nbsp;&nbsp;&nbsp; (18764)  |
| Taihei Dengyo Kaisha | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 11872144 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (16564)  |
| Taimed Biologics Inc | 1-Day FEDEF - 4.25% | Monthly | MSCO | 7/07/26 | 41303 |  | &nbsp;&nbsp;&nbsp;&nbsp; 9844  |
| Taiwan High Speed Rail Co | 1-Day FEDEF - 0.75% | Monthly | MSCO | 6/24/26 | 229752 |  | &nbsp;&nbsp;&nbsp;&nbsp; 18379  |
| Taiwan Mobile Co | 1-Day FEDEF - 0.75% | Monthly | MSCO | 6/24/26 | 109549 |  | &nbsp;&nbsp;&nbsp;&nbsp; 9893  |
| Taiwan Styrene Monomer | 1-Day FEDEF - 4.25% | Monthly | MSCO | 6/24/26 | 30742 |  | &nbsp;&nbsp;&nbsp;&nbsp; 258  |
| Taiwan-Asia Semiconductor | 1-Day FEDEF - 8.75% | Monthly | MSCO | 6/24/26 | 64011 |  | &nbsp;&nbsp;&nbsp;&nbsp; (10071)  |
| Takara Leben Real Estate | TONAR - 0.35% | Monthly | GSCO | 8/24/26 | 3048915 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 139  |
| Tama Home Co Limited | TONAR - 5.75% | Monthly | GSCO | 10/15/26 | 3487433 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1265)  |
| Tamburi | Euro STR - 0.30% | Monthly | JPHQ | 7/17/26 | 25724 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (10369)  |
| Tasmea Fpo | 1-Day RBACR - 11.625% | Monthly | MSCO | 10/13/26 | 35753 | AUD | &nbsp;&nbsp;&nbsp;&nbsp;(510)  |
| Tate & Lyle PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/30 | 144907 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 45957  |
| Tatung Co Ltd | 1-Day FEDEF - 3.375% | Monthly | MSCO | 7/14/26 | 84001 |  | &nbsp;&nbsp;&nbsp;&nbsp; 11593  |
| Tav Havalimanlari | 1-Day FEDEF - 5.00% | Monthly | MSCO | 9/21/26 | 148541 |  | &nbsp;&nbsp;&nbsp;&nbsp; (18546)  |
| Taylor Wimpey Plc Ord | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/19/26 | 134757 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (3774)  |
| Tbs Holdings Inc | TONAR - 0.35% | Monthly | GSCO | 7/10/26 | 8784211 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (11169)  |
| Technoprobe | Euro STR - 0.30% | Monthly | JPHQ | 10/16/30 | 83806 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (146348)  |
| Tekfen Holding | 1-Day FEDEF - 5.25% | Monthly | MSCO | 9/21/26 | 182220 |  | &nbsp;&nbsp;&nbsp;&nbsp; 48951  |
| Tenaris | Euro STR - 0.30% | Monthly | JPHQ | 6/19/26 | 182595 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (24099)  |
| Terna SpA | Euro STR - 0.30% | Monthly | JPHQ | 11/27/30 | 148344 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (27309)  |
| Tess Holdings Co Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 18904637 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (3111)  |
| TGS ASA | 1-Week NIBOR - 1.50% | Monthly | SEBA | 4/16/26 | 1287128 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (2770)  |
| Thai Beverage | 1-Day SORA - 0.40% | Monthly | MSCO | 6/25/26 | 145125 | SGD | &nbsp;&nbsp;&nbsp;&nbsp;(866)  |
| Theon International Plc | Euro STR - 5.30% | Monthly | JPHQ | 6/19/26 | 169725 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 22100  |
| Thomson Medical | 1-Day SORA - 6.75% | Monthly | MSCO | 6/25/26 | 12327 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (3089)  |
| ThyssenKrupp Nucera AG | Euro STR - 0.34% | Monthly | JPHQ | 3/28/26 | 133299 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 7486  |
| Tiangong International Co | 1-Day HONIA - 1.25% | Monthly | GSCO | 6/25/26 | 421344 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (30792)  |
| Tietoevry Corp. | Euro STR - 0.275% | Monthly | SEBA | 3/04/26 | 82223 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (10791)  |
| Tikehau Capital SCA | 1-Day EONIA - 4.00% | Monthly | MSCS | 7/17/26 | 74595 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 19665  |
| Timee Inc | TONAR - 10.50% | Monthly | GSCO | 11/16/26 | 2464380 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(128)  |

---

<br> 96 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Titan SA | Euro STR - 0.30% | Monthly | JPHQ | 11/03/26 | 43089 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; $(5548)  |
| TKP Corporation | TONAR - 2.31% | Monthly | GSCO | 6/24/26 | 16486891 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1528)  |
| Tmbthanachart Bank Pcl | 1-Day FEDEF - 2.50% | Monthly | MSCO | 7/22/26 | 48978 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1416)  |
| TOC Co Ltd | TONAR - 0.35% | Monthly | GSCO | 7/13/26 | 4128051 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (7343)  |
| Toda Corp | TONAR - 0.35% | Monthly | GSCO | 7/13/26 | 9611749 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (15724)  |
| Toei Co Ltd | TONAR - 0.35% | Monthly | GSCO | 10/12/26 | 5449554 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (2115)  |
| Toho Titanium Co | TONAR - 1.25% | Monthly | GSCO | 6/24/26 | 7600555 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1380  |
| Tokyo Electron | TONAR - 0.35% | Monthly | GSCO | 10/08/26 | 3084894 | JPY | &nbsp;&nbsp;&nbsp;&nbsp;(608)  |
| Tokyo Keiki Inc | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 9664357 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (20959)  |
| Tokyo Metro Co Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 5744846 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1381  |
| Tokyo Tatemono Co | TONAR - 0.35% | Monthly | GSCO | 7/06/26 | 6836802 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (15871)  |
| Tosei Reit Investment Corp | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 11731717 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (8512)  |
| TotalEnergies | 1-Day EONIA - 0.275% | Monthly | MSCO | 3/04/26 | 211630 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (8254)  |
| Toyo Gosei Co Ltd | TONAR - 4.50% | Monthly | GSCO | 6/24/26 | 14005489 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (36251)  |
| Toyo Suisan Kaisha | TONAR - 0.35% | Monthly | GSCO | 8/31/26 | 3142463 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1615)  |
| Toyota Motor Corp | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 13289754 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (21231)  |
| Transaction Capital Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 7/17/26 | 487036 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 18939  |
| Transaction Co Ltd | TONAR - 1.00% | Monthly | GSCO | 6/24/26 | 10254853 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 5641  |
| Transurban Stapled | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/19/26 | 195762 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (6858)  |
| Traton SE | Euro STR - 0.80% | Monthly | JPHQ | 7/17/30 | 144983 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2425  |
| Trav FPO | 1-Day RBACR - 0.788% | Monthly | MSCO | 7/28/26 | 77073 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (1300)  |
| Tri Chemical Laboratories | TONAR - 0.35% | Monthly | GSCO | 8/24/26 | 6234342 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 4166  |
| Trigano | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/09/30 | 144162 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (50762)  |
| Tritax Big Box | 1-Day SONIA - 0.275% | Monthly | MSCO | 4/24/26 | 179011 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (10988)  |
| Troax Group AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 8/02/30 | 1118968 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 24385 |
| Trustpilot Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/30 | 55967 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 7246  |
| Truworths Int Ltd | 1-Day SABOR - 0.50% | Monthly | MSCO | 7/16/26 | 954201 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 421  |
| Tryg A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/13/26 | 2705951 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 3743  |
| Tuas Ltd Fpo | 1-Day RBACR - 0.875% | Monthly | MSCO | 6/24/26 | 59355 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (3102)  |
| Tubacex SA | 1-Day EONIA - 1.63% | Monthly | MSCS | 7/17/30 | 84826 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (6806)  |
| TXC Corp | 1-Day FEDEF - 2.25% | Monthly | MSCO | 10/28/26 | 26712 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2699  |
| Tyro Pay Fpo | 1-Day RBACR - 2.50% | Monthly | MSCO | 9/24/26 | 93457 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 4346  |
| UBE Corporation | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 12047058 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (11396)  |
| UCB | Euro STR - 0.30% | Monthly | JPHQ | 11/21/30 | 26706 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (1648)  |
| U-Ming Marine Transport | 1-Day FEDEF - 3.00% | Monthly | MSCO | 8/25/26 | 79278 |  | &nbsp;&nbsp;&nbsp;&nbsp; (4817)  |
| Unicharm Corp | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 16482113 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 14650  |
| Unilever | 1-Day SONIA - 0.30% | Monthly | MSCS | 10/16/30 | 141399 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 64  |
| Unimicron Technology | 1-Day FEDEF - 2.125% | Monthly | MSCO | 6/24/26 | 102562 |  | &nbsp;&nbsp;&nbsp;&nbsp; (45920)  |
| <sup>e</sup>Unimicron Technology | 1-Day FEDEF - 1.50% | Monthly | MSCO | 6/24/26 |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1264)  |
| Unisem Bhd | 1-Day FEDEF - 8.25% | Monthly | MSCO | 9/22/26 | 40391 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3635)  |
| Unite Group PLC (The) | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/05/26 | 210363 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 101143  |
| United Internet AG | Euro STR - 0.30% | Monthly | JPHQ | 3/20/26 | 187278 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (101240)  |
| United Super Markets Hldg | TONAR - 1.00% | Monthly | GSCO | 7/06/26 | 13422085 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 2366  |
| Universal Microwave Technologies | 1-Day FEDEF - 7.625% | Monthly | MSCO | 8/10/26 | 48610 |  | &nbsp;&nbsp;&nbsp;&nbsp; (17128)  |
| Universal Music Group | Euro STR - 0.30% | Monthly | JPHQ | 9/05/30 | 27068 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 3393  |

---

<br> franklintempleton.com Semiannual Report 97

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| UOB | 1-Day SORA - 0.40% | Monthly | MSCO | 10/12/26 | 24710 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; $718  |
| USI Corporation | 1-Day FEDEF - 2.50% | Monthly | MSCO | 6/24/26 | 38571 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2210)  |
| Vaisala Corporation | Euro STR - 0.275% | Monthly | SEBA | 6/24/26 | 99752 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 7300  |
| Valneva SE | 1-Day EONIA - 4.50% | Monthly | MSCS | 5/16/26 | 44899 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (8756)  |
| Valqua Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 17756081 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (39328)  |
| Vastned Nv | Euro STR - 0.30% | Monthly | JPHQ | 8/18/26 | 14943 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (1141)  |
| VAT Group AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 4/22/26 | 199357 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (86216)  |
| Vats Liquor Chain | 1-Day FEDEF - 9.95% | Monthly | MSCO | 6/24/26 | 7171 |  | &nbsp;&nbsp;&nbsp;&nbsp;(358)  |
| Vbg Group Ab Ser B | 1-Week STIBOR - 0.275% | Monthly | SEBA | 6/03/26 | 865812 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (32869)  |
| VERBIO Vereinigte BioEnergie AG | Euro STR - 1.00% | Monthly | JPHQ | 7/01/27 | 76334 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (77362)  |
| Vestel | 1-Day FEDEF - 7.63% | Monthly | MSCS | 9/09/30 | 39143 |  | &nbsp;&nbsp;&nbsp;&nbsp; 23742  |
| VGP NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 110867 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (45444)  |
| Via Labs Inc | 1-Day FEDEF - 6.875% | Monthly | MSCO | 6/24/26 | 58106 |  | &nbsp;&nbsp;&nbsp;&nbsp; 15078  |
| Vimian Group | 1-Week STIBOR - 0.275% | Monthly | SEBA | 7/01/26 | 1349017 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 30092  |
| Vinatech | 1-Day FEDEF - 15.00% | Monthly | MSCO | 6/24/26 | 22366 |  | &nbsp;&nbsp;&nbsp;&nbsp; (14871)  |
| Vinci | 1-Day EONIA - 0.30% | Monthly | MSCS | 11/27/30 | 117899 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (16604)  |
| Virbac | 1-Day EONIA - 0.30% | Monthly | MSCS | 4/01/26 | 120945 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (23127)  |
| Vital Healthcare Property | 1-Day NZOCR - 0.788% | Monthly | MSCO | 6/24/26 | 104650 | NZD | &nbsp;&nbsp;&nbsp;&nbsp; (1420)  |
| Vitec Software Group AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 5/22/26 | 1496710 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 62555  |
| Vitrolife AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/28 | 698287 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (4755)  |
| Viva Energy Grp Fpo | 1-Day RBACR -0.40% | Monthly | MSCO | 6/24/26 | 103882 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (1642)  |
| Volati AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 12/06/30 | 240594 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 2008  |
| Voltalia SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/30 | 133801 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 14236  |
| Voltronic Power Technology | 1-Day FEDEF - 9.50% | Monthly | MSCO | 10/28/26 | 37612 |  | &nbsp;&nbsp;&nbsp;&nbsp; 515  |
| Volution Grp Plc Ord | 1-Day SONIA - 0.275% | Monthly | MSCO | 9/21/26 | 40666 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (1260)  |
| Volvo Group (The) | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/28 | 1297886 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (1340)  |
| Vossloh Ag | Euro STR - 0.30% | Monthly | JPHQ | 8/18/26 | 144131 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 29512  |
| VT | 1-Day FEDEF - 18.00% | Monthly | MSCO | 6/24/26 | 71865 |  | &nbsp;&nbsp;&nbsp;&nbsp; 33469  |
| Wa1 Resources Fpo | 1-Day RBACR - 5.25% | Monthly | MSCO | 6/24/26 | 54720 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (2616)  |
| Wacker Chemie AG | Euro STR - 0.30% | Monthly | JPHQ | 3/20/26 | 276890 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (11086)  |
| Wallenstam AB Series B | 1-Week STIBOR - 0.275% | Monthly | SEBA | 7/17/30 | 1108454 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 711  |
| Walsin Lihwa Corp | 1-Day FEDEF - 4.625% | Monthly | MSCO | 9/23/26 | 100959 |  | &nbsp;&nbsp;&nbsp;&nbsp; (8110)  |
| Warehouses De Pauw | Euro STR - 0.30% | Monthly | JPHQ | 1/05/31 | 92466 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (3850)  |
| Watches of Switzerland | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/16/26 | 188255 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (26355)  |
| Wavestone | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/18/30 | 78379 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (3038)  |
| WCT Holdings Berhad | 1-Day FEDEF - 6.875% | Monthly | MSCO | 9/23/26 | 54081 |  | &nbsp;&nbsp;&nbsp;&nbsp; 12201  |
| WeBuyCars Pty Ltd. | 1-Day SABOR - 2.75% | Monthly | MSCO | 7/17/30 | 3020581 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 21619  |
| Webzen Co | 1-Day FEDEF - 3.625% | Monthly | MSCO | 8/26/26 | 30581 |  | &nbsp;&nbsp;&nbsp;&nbsp; 166  |
| Weir Group PLC | 1-Day SONIA - 0.76% | Monthly | MSCS | 2/19/29 | 117016 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (14797)  |
| Wemade | 1-Day FEDEF - 4.25% | Monthly | MSCO | 6/24/26 | 88574 |  | &nbsp;&nbsp;&nbsp;&nbsp; 24723  |
| Wendel Group | 1-Day EONIA - 0.30% | Monthly | MSCS | 5/27/26 | 265327 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 12484  |
| West Holdings Corp | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 13851552 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 4493  |
| Westpac Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 167236 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; (10900) |
| WHA Corporation Public Co | 1-Day FEDEF - 7.75% | Monthly | MSCO | 10/09/26 | 33067 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3014  |
| Wharf | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 1108856 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (4332)  |

---

<br> 98 Semiannual Report franklintempleton.com

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Whitbread PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 4/14/26 | 157054 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; $28258  |
| Wienerberger AG | Euro STR - 0.30% | Monthly | JPHQ | 8/26/30 | 302427 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (40327)  |
| Wihlborgs Fastigheter AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 11/11/29 | 482035 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 283  |
| Wilmar Intl. | 1-Day SORA - 0.40% | Monthly | MSCO | 9/08/26 | 103088 | SGD | &nbsp;&nbsp;&nbsp;&nbsp; (8936)  |
| Wizz Air Holdings PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 12/19/30 | 118072 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 23709  |
| Woolworths Holdings Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCO | 9/15/30 | 6717847 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 1626  |
| Wuhan Jingce Electric | 1-Day FEDEF - 6.51% | Monthly | MSCO | 11/04/26 | 47244 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4462  |
| Wuxi Rural Commercial | 1-Day FEDEF - 12.194% | Monthly | MSCO | 6/24/26 | 11124 |  | &nbsp;&nbsp;&nbsp;&nbsp; 455  |
| Xinyi Energy Holdings Ltd | 1-Day HONIA - 3.25% | Monthly | GSCO | 9/02/26 | 766038 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 8639  |
| Xinyi Glass Hldgs | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 903772 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (17809)  |
| XP Power Ltd. | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/30/30 | 7752 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(268)  |
| Xpeng Inc | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 871762 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (10871)  |
| XTB | 1-Day FEDEF - 0.50% | Monthly | MSCO | 6/30/26 | 274271 |  | &nbsp;&nbsp;&nbsp;&nbsp; (25968)  |
| Xvivo Perfusion AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/26 | 811689 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 12716  |
| Yadea Group Holdings Ltd | 1-Day HONIA - 0.40% | Monthly | GSCO | 6/25/26 | 974789 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 4756  |
| Yamaha Motor Co | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 12252250 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1968)  |
| Yamami Company | TONAR - 6.75% | Monthly | GSCO | 9/30/26 | 3515597 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 1174  |
| Yamato Holdings Co Ltd | TONAR - 0.35% | Monthly | GSCO | 7/15/26 | 6033355 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (6594)  |
| Yankuang Energy Group | 1-Day FEDEF - 13.35% | Monthly | MSCO | 6/26/26 | 4239 |  | &nbsp;&nbsp;&nbsp;&nbsp;(691)  |
| Yankuang Energy Group | 1-Day HONIA - 1.00% | Monthly | GSCO | 8/27/26 | 268851 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; (1958)  |
| Yapi VE Kredi Bank | 1-Day FEDEF - 0.53% | Monthly | MSCO | 9/21/26 | 150319 |  | &nbsp;&nbsp;&nbsp;&nbsp; (6433)  |
| Yaskawa Electric Corp | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 8985407 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (14883)  |
| YC Inox Co Ltd | 1-Day FEDEF - 2.00% | Monthly | MSCO | 7/02/26 | 28218 |  | &nbsp;&nbsp;&nbsp;&nbsp; 4502  |
| Yidu Tech Inc | 1-Day HONIA - 8.00% | Monthly | GSCO | 6/25/26 | 399896 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 8628  |
| YIT Corp. | Euro STR - 0.275% | Monthly | SEBA | 11/08/30 | 66287 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (30151)  |
| Yokogawa Bridge Holdings | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 25081586 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (29564)  |
| Yokohama REIT Co Ltd | TONAR - 0.35% | Monthly | GSCO | 6/24/26 | 7153887 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (23832)  |
| Yondoshi Holdings Inc | TONAR - 0.35% | Monthly | GSCO | 8/24/26 | 13029504 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (1379)  |
| Yoshinoya Holdings Co Ltd | TONAR - 1.00% | Monthly | GSCO | 6/24/26 | 25570518 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; (2506)  |
| Young & Co's Brewery | 1-Day SONIA - 2.50% | Monthly | MSCO | 6/23/26 | 77543 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 16072  |
| Ypsomed Holding AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/26 | 125290 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;(392)  |
| Yuhan | 1-Day FEDEF - 0.75% | Monthly | MSCO | 6/24/26 | 89132 |  | &nbsp;&nbsp;&nbsp;&nbsp; (4673)  |
| Yulon Finance Corporation | 1-Day FEDEF - 3.081% | Monthly | MSCO | 8/19/26 | 89144 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1722  |
| Yunnan Energy New | 1-Day FEDEF - 14.43% | Monthly | MSCO | 9/10/26 | 31123 |  | &nbsp;&nbsp;&nbsp;&nbsp; (10282)  |
| Yutori Inc | TONAR - 7.75% | Monthly | GSCO | 8/24/26 | 3629703 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 9812  |
| Zai Lab Limited | 1-Day HONIA - 0.40% | Monthly | GSCO | 8/18/26 | 205036 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 9885  |
| Zealand Pharma A/S | 1-Week CIBOR - 0.45% | Monthly | SEBA | 7/17/30 | 430764 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; (6770)  |
| Zhejiang Jinggon | 1-Day FEDEF - 4.90% | Monthly | MSCO | 9/04/26 | 24956 |  | &nbsp;&nbsp;&nbsp;&nbsp; (2636)  |
| Zhejiang Weixing | 1-Day FEDEF - 10.30% | Monthly | MSCO | 11/20/26 | 1647 |  | &nbsp;&nbsp;&nbsp;&nbsp; 67  |
| Zhong Yang Technology Co | 1-Day FEDEF - 10.625% | Monthly | MSCO | 6/24/26 | 34109 |  | &nbsp;&nbsp;&nbsp;&nbsp; 8820  |
| Zhongan Online P & C | 1-Day HONIA - 8.50% | Monthly | GSCO | 6/25/26 | 445550 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 12400  |
| Zhongji Innolight | 1-Day FEDEF - 1.984% | Monthly | MSCO | 7/31/26 | 26212 |  | &nbsp;&nbsp;&nbsp;&nbsp; (39206)  |
| Zhongsheng Group Holdings | 1-Day HONIA - 3.50% | Monthly | GSCO | 6/25/26 | 402200 | HKD | &nbsp;&nbsp;&nbsp;&nbsp; 11036  |
| Zhongtai Securities | 1-Day FEDEF - 7.45% | Monthly | MSCO | 6/24/26 | 20575 |  | &nbsp;&nbsp;&nbsp;&nbsp;(836)  |
| Zignago Vetro SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/30 | 56223 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 6210  |

---

<br> franklintempleton.com Semiannual Report 99

------

**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)**<br>|  |  |  |  |  |  |  |
| Zip Co Ltd Fpo | 1-Day RBACR - 0.40% | Monthly | MSCO | 6/24/26 | 142077 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; $(9594)  |
| Zozo Inc | TONAR - 0.35% | Monthly | GSCO | 7/17/26 | 7469078 | JPY | &nbsp;&nbsp;&nbsp;&nbsp; 4736  |
| Zyxel Group Corporation | 1-Day FEDEF - 4.625% | Monthly | MSCO | 6/24/26 | 17936 |  | &nbsp;&nbsp;&nbsp;&nbsp; (3593)  |
|  |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (9186696)  |
| **Interest Rate Contract - Long<sup>a</sup>**<br>|  |  |  |  |  |  |  |
| Egyptian Treasury Bills | 1-Day FEDEF | Monthly | CITI | 12/09/25 | 1150460 |  | &nbsp;&nbsp;&nbsp;&nbsp; 176913  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total - Total Return Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total - Total Return Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total - Total Return Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total - Total Return Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total - Total Return Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total - Total Return Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total - Total Return Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; $3039070 |

---

<sup>\*</sup> In U.S. dollars unless otherwise indicated.

<sup>a</sup> The Fund receives the total return on the underlying instrument and pays a variable financing rate.

<sup>b</sup> Fair valued using significant unobservable input. See Note 12 regarding fair value investments.

<sup>c</sup> See Note 7 regarding investments in Russian securities.

<sup>d</sup> The Fund receives the variable financing rate and pays the total return on the underlying instrument.

<sup>e</sup> Notional value rounds to less than 1.

See Note 10 regarding other derivative information.

See Abbreviations on page 120.

<br> 100 Semiannual Report franklintempleton.com

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Assets and Liabilities

November 30, 2025 (unaudited)

**K2 Alternative Strategies Fund** 

---

| | |
|:---|:---|
| **Assets:** <br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in securities:<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost – Unaffiliated issuers | $465555816  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost – Non-controlled affiliates (Note 3f) | 1805000  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Value – Unaffiliated issuers<sup>†</sup> | $496727780  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Value – Non-controlled affiliates (Note 3f) | 1805000  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | 1716243  |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency, at value (cost $9,555,362) | 9540843  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivables:<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment securities sold | 9376889  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital shares sold | 137922  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 2388470  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits with brokers for:<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold short | 101325172  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OTC derivative contracts | 9982364  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | 8904257  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Centrally cleared swap contracts | 2525795  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from brokers | 8765994  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on centrally cleared swap contracts | 30295  |
| &nbsp;&nbsp;&nbsp;&nbsp; OTC swap contracts (upfront payments $613,102) | 542700  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized appreciation on OTC forward exchange contracts | 1591580  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized appreciation on OTC swap contracts | 24064358  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | 679425662  |
| **Liabilities:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables:<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment securities purchased | 2648240  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital shares redeemed | 30863  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 599353  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution fees | 14982  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 4839  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer agent fees | 97270  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to brokers | 4691871  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on futures contracts | 359649  |
| &nbsp;&nbsp;&nbsp;&nbsp; OTC swap contracts (upfront receipts $224,074) | 215349  |
| &nbsp;&nbsp;&nbsp;&nbsp; Options written, at value (premiums received $150,036) | 56819  |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities sold short, at value (proceeds $109,060,802) | 110462488  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payable upon return of securities loaned (Note 1f) | 1805000  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized depreciation on OTC forward exchange contracts | 1559816  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized depreciation on OTC swap contracts | 21469326  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized depreciation on unfunded loan commitments (Note 9) | 375455  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities | 329033  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 144720353  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $534705309  |
| **Net assets consist of:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Paid-in capital | $510068863  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributable earnings (loss) | 24636446  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $534705309  |
| <sup>†</sup>Includes securities loaned | $9606471 |

---

<br> franklintempleton.com &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accompanying notes are an integral part of these consolidated financial statements. \| Semiannual Report 101

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Assets and Liabilities (continued)

November 30, 2025 (unaudited)

**K2 Alternative Strategies Fund** 

---

| | |
|:---|:---|
| **Class A:** <br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $56978849  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares outstanding | 4837414  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net asset value per share<sup>a,b</sup> | $11.78  |
| &nbsp;&nbsp;&nbsp;&nbsp; Maximum offering price per share (net asset value per share ÷ 94.50%)<sup>a</sup> | $12.47  |
| **Class C:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $3757889  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares outstanding | 332181  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net asset value and maximum offering price per share<sup>a,b</sup> | $11.31  |
| **Class R:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $250052  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares outstanding | 21179  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net asset value and maximum offering price per share<sup>a</sup> | $11.81  |
| **Class R6:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $112063361  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares outstanding | 9420903  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net asset value and maximum offering price per share<sup>a</sup> | $11.90  |
| **Advisor Class:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $361655158  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares outstanding | 30426686  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net asset value and maximum offering price per share<sup>a</sup> | $11.89 |

---

<sup>a</sup>Net asset value per share amount may not recalculate due to rounding.

<sup>b</sup>Redemption price is equal to net asset value less contingent deferred sales charges, if applicable.

<br> 102 Semiannual Report \| The accompanying notes are an integral part of these consolidated financial statements. franklintempleton.com

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Operations

for the six months ended November 30, 2025 (unaudited)

**K2 Alternative Strategies Fund** 

---

| | |
|:---|:---|
| **Investment income:** <br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends: (net of foreign taxes)\*<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | $3911197  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest: (net of foreign taxes)~<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | 7520367  |
| &nbsp;&nbsp;&nbsp;&nbsp; Income from securities loaned:<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities (net of fees and rebates) | (30242)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlled affiliates (Note 3f) | 54565  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 11455887  |
| **Expenses:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees (Note 3a) | 4495831  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution fees: (Note 3c)<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | 71006  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C | 21897  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R | 690  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer agent fees: (Note 3e)<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | 29908  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C | 2310  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R | 146  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R6 | 10830  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | 187086  |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian fees  | 87397  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reports to shareholders fees | 17137  |
| &nbsp;&nbsp;&nbsp;&nbsp; Registration and filing fees | 38222  |
| &nbsp;&nbsp;&nbsp;&nbsp; Professional fees | 291570  |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 133185  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends on securities sold short | 329316  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest on securities sold short | 732604  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | 47419  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 6496554  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses waived/paid by affiliates (Note 3f and 3g) | (864426)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 5632128  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 5823759  |
| **Realized and unrealized gains (losses):**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Net realized gain (loss) from:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments:<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | 15719274  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | 474959  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (76945)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward exchange contracts | (2069914)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | 3819736  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold short | (9993618)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | 2238509  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 10112001  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Net change in unrealized appreciation (depreciation) on:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments:<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | 24816816  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | 54228  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Translation of other assets and liabilities denominated in foreign currencies | (53062)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward exchange contracts | 1838675  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (1232373)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold short | (4833217)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | (2557935)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | 18033132  |
| Net realized and unrealized gain (loss) | 28145133  |
| Net increase (decrease) in net assets resulting from operations | $33968892  |
| \* Foreign taxes withheld on dividends | $11369  |
| ~ Foreign taxes withheld on interest | $13264 |

---

<br> franklintempleton.com &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accompanying notes are an integral part of these consolidated financial statements. \| Semiannual Report 103

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Changes in Net Assets

**K2 Alternative Strategies Fund** 

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** <br>**November 30, 2025** <br>(unaudited) | **Year Ended** <br>**May 31, 2025**  |
| **Increase (decrease) in net assets:**<br>|  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Operations:**<br>|  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | &nbsp;&nbsp;&nbsp;&nbsp; $5823759 | $15981920  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | &nbsp;&nbsp;&nbsp;&nbsp; 10112001 | 40461214  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp; 18033132 | (23398695)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) in net assets resulting from operations | &nbsp;&nbsp;&nbsp;&nbsp; 33968892 | 33044439  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Distributions to shareholders:**<br>|  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | &nbsp;&nbsp;&nbsp;&nbsp; — | (6134800)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C | &nbsp;&nbsp;&nbsp;&nbsp; — | (637709)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R | &nbsp;&nbsp;&nbsp;&nbsp; — | (34770)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R6 | &nbsp;&nbsp;&nbsp;&nbsp; — | (14026917)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | &nbsp;&nbsp;&nbsp;&nbsp; — | (38251573)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions to shareholders | &nbsp;&nbsp;&nbsp;&nbsp; — | (59085769)  |
| **Capital share transactions: (Note 2)**<br>|  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | &nbsp;&nbsp;&nbsp;&nbsp; (3096484) | (3983668)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C | &nbsp;&nbsp;&nbsp;&nbsp; (1426952) | (2708243)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R | &nbsp;&nbsp;&nbsp;&nbsp; (209795) | 110339  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R6 | &nbsp;&nbsp;&nbsp;&nbsp; (8990195) | (4679920)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | &nbsp;&nbsp;&nbsp;&nbsp; (6648314) | (76258964)  |
| Total capital share transactions | &nbsp;&nbsp;&nbsp;&nbsp; (20371740) | (87520456)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) in net assets | &nbsp;&nbsp;&nbsp;&nbsp; 13597152 | (113561786)  |
| **Net assets:**<br>|  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | &nbsp;&nbsp;&nbsp;&nbsp; 521108157 | 634669943  |
| &nbsp;&nbsp;&nbsp;&nbsp; End of period | &nbsp;&nbsp;&nbsp;&nbsp; $534705309 | $521108157 |

---

<br> 104 Semiannual Report \| The accompanying notes are an integral part of these consolidated financial statements. franklintempleton.com

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Notes to Consolidated Financial Statements (unaudited)

**K2 Alternative Strategies Fund** 

1. Organization and Significant Accounting Policies

Franklin Alternative Strategies Funds (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of one fund, K2 Alternative Strategies Fund (Fund). The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment 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 C, Class R, 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.

Effective January 30, 2026, K2 Alternative Strategies Fund will be renamed Franklin Alternative Strategies Fund.

The following summarizes the 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, exchange traded funds and derivative financial instruments 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. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the day that the value of the security is determined. 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 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. Securities denominated in a foreign currency are converted into their U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the date that the values of the foreign debt securities are determined.

Investments in open-end mutual funds are valued at the closing NAV.

Certain derivative financial instruments are centrally cleared or trade in the OTC market. The Fund's pricing services use various techniques including industry standard option pricing models and proprietary discounted cash flow models to determine the fair value of those instruments. The Fund's net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.

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.

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Fund's business day. Events can occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund's portfolio

<br> franklintempleton.com Semiannual Report 105

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

1. Organization and Significant Accounting

**Policies (continued)** 

a. Financial Instrument Valuation (continued)

securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the value of the Fund's portfolio securities to the latest indications of fair value at 4 p.m. Eastern time. At November 30, 2025, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 within the fair value hierarchy (referred to as "market level fair value"). See the Fair Value Measurements note for more information.

When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Fund's NAV is not calculated, which could result in differences between the value of the Fund's portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Fund for financial reporting purposes.

b. Foreign Currency Translation

Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Fund may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board.

The Fund does not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments in the Consolidated Statement of Operations.

Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.

&nbsp;&nbsp;&nbsp;&nbsp;

c. Securities Purchased on a When-Issued, Forward Commitment or Delayed Delivery Basis

The Fund may purchase securities on a when-issued, forward commitment or delayed delivery 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. Sufficient assets have been segregated for these securities.

d. Derivative Financial Instruments

The Fund invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Consolidated Statement of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Consolidated Statement of Operations.

Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. The Fund attempts to reduce its exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination. Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty. Termination events applicable to the Fund include failure of the Fund to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. However, absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities. Early termination by the counterparty may result in an immediate payment by the Fund of any net liability owed to that counterparty under the ISDA agreement.

<br> 106 Semiannual Report franklintempleton.com

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

1. Organization and Significant Accounting

**Policies (continued)** 

d. Derivative Financial Instruments (continued)

Collateral requirements differ by type of derivative. Collateral or initial margin requirements are set by the broker or exchange clearing house for exchange traded and centrally cleared derivatives. Initial margin deposited is held at the exchange or at the broker and can be in the form of cash and/or securities. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of agreement. Generally, collateral is determined at the close of Fund business each day and any additional collateral required due to changes in derivative values may be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund for OTC derivatives, if any, is held in segregated accounts with the Fund's custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Fund's investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.

The Fund entered into exchange traded futures contracts primarily to manage and/or gain exposure to commodity price, interest rate, equity price, and foreign exchange rate risk. A futures contract is an agreement between the Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Consolidated Statement of Assets and Liabilities. Futures contracts outstanding at period end, if any, are listed in the Fund's Consolidated Schedule of Investments.

The Fund entered into OTC forward exchange contracts primarily to manage and/or gain exposure to certain foreign currencies. A forward exchange contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date. Forward exchange contracts outstanding at period end, if any, are listed in the Fund's Consolidated Schedule of Investments.

The Fund entered into credit default swap contracts primarily to manage and/or gain exposure to credit risk. A credit default swap is an agreement between the Fund and a counterparty whereby the buyer of the contract receives credit protection and the seller of the contract guarantees the credit worthiness of a referenced debt obligation. These agreements may be privately negotiated in the over-the-counter market (OTC credit default swaps) or may be executed in a multilateral trade facility platform, such as a registered exchange (centrally cleared credit default swaps). The underlying referenced debt obligation may be a single issuer of corporate or sovereign

debt, a credit index, a basket of issuers or indices, or a tranche of a credit index or basket of issuers or indices. In the event of a default of the underlying referenced debt obligation, the buyer is entitled to receive the notional amount of the credit default swap contract from the seller in exchange for the referenced debt obligation, a net settlement amount equal to the notional amount of the credit default swap less the recovery value of the referenced debt obligation, or other agreed upon amount. For centrally cleared credit default swaps, required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Consolidated Statement of Assets and Liabilities. Over the term of the contract, the buyer pays the seller a periodic stream of payments, provided that no event of default has occurred. Such periodic payments are accrued daily as an unrealized appreciation or depreciation until the payments are made, at which time they are realized. Upfront payments and receipts are reflected in the Consolidated Statement of Assets and Liabilities and represent compensating factors between stated terms of the credit default swap agreement and prevailing market conditions (credit spreads and other relevant factors). These upfront payments and receipts are amortized over the term of the contract as a realized gain or loss in the Consolidated Statement of Operations, if any. Credit default swap contracts outstanding at period end, if any, are listed in the Fund's Consolidated Schedule of Investments.

The Fund entered into OTC cross-currency swap contracts primarily to manage and/or gain exposure to certain foreign currencies. A cross-currency swap is an agreement between the Fund and a counterparty to exchange cash flows (determined using either a fixed or floating rate) based on the notional amounts of two different currencies. The notional amounts are typically determined based on the spot exchange rates at the opening of the contract. Cross-currency swaps may require the exchange of notional amounts at the opening and/or closing of the contract. Over the term of the contract, contractually required payments to be paid and to be received are accrued daily and recorded as unrealized appreciation or depreciation until the payments are made, at which time they are realized. Any upfront payments and receipts are reflected in the Consolidated Statement of Assets and Liabilities and represent compensating factors between stated terms of the cross-currency swap contract and prevailing market conditions (interest rate spreads and other relevant factors). These upfront payments and receipts are amortized over the term of the contract as a realized gain or loss in the Consolidated Statement of Operations, if any. Cross-currency swap contracts outstanding at period end, if any, are listed in the Fund's Consolidated Schedule of Investments.

The Fund entered into interest rate swap contracts primarily to manage and/or gain exposure to interest rate risk. An interest rate swap is an agreement between the Fund and a counterparty to exchange cash flows based on the difference between two interest rates, applied to a notional amount. These agreements may be privately negotiated in the over-the-counter market (OTC interest rate swaps) or may be executed on a registered exchange (centrally cleared interest rate swaps). For centrally cleared interest rate swaps, required

<br> franklintempleton.com Semiannual Report 107

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

1. Organization and Significant Accounting

**Policies (continued)** 

d. Derivative Financial Instruments (continued)

initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Consolidated Statement of Assets and Liabilities. Over the term of the contract, contractually required payments to be paid and to be received are accrued daily and recorded as unrealized appreciation or depreciation until the payments are made, at which time they are realized. Interest rate swap contracts outstanding at period end, if any, are listed in the Fund's Consolidated Schedule of Investments.

The Fund entered into OTC total return swap contracts primarily to manage and/or gain exposure to interest rate, foreign exchange rate, and equity price risk of an underlying instrument such as a stock, bond, index or basket of securities or indices. A total return swap is an agreement between the Fund and a counterparty to exchange a return linked to an underlying instrument for a floating or fixed rate payment, both based upon a notional amount. Over the term of the contract, contractually required payments to be paid or received are accrued daily and recorded as unrealized appreciation or depreciation until the payments are made, at which time they are recognized as realized gain or loss. Total return swap contracts outstanding at period end, if any, are listed in the Fund's Consolidated Schedule of Investments.

The Fund purchased or wrote exchange traded and/or OTC option contracts primarily to manage and/or gain exposure to equity price risk. An option is a contract entitling the holder to purchase or sell a specific amount of shares or units of an asset or notional amount of a swap (swaption), at a specified price. When an option is purchased or written, an amount equal to the premium paid or received is recorded as an asset or liability, respectively. Upon exercise of an option, the acquisition cost or sales proceeds of the underlying investment is adjusted by any premium received or paid. Upon expiration of an option, any premium received or paid is recorded as a realized gain or loss. Upon closing an option other than through expiration or exercise, the difference between the premium received or paid and the cost to close the position is recorded as a realized gain or loss. Option contracts outstanding at period end, if any, are listed in the Fund's Consolidated Schedule of Investments.

See Note 10 regarding other derivative information.

e. Securities Sold Short

The Fund is engaged in selling securities short, which obligates the Fund to replace a borrowed security with the same security at current fair value. The Fund incurs a loss if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund realizes a gain if the price of the security declines between those dates. Gains are limited to the price at which the Fund sold the security short, while losses are potentially unlimited in size.

The Fund is required to establish a margin account with the broker lending the security sold short. While the short sale is outstanding, the broker retains the proceeds of the short sale to the extent necessary to meet margin requirements until the short position is closed out. A deposit must also be maintained with the Fund's custodian/counterparty broker consisting of cash and/or securities having a value equal to a specified percentage of the value of the securities sold short. The Fund may receive income from the investment of cash collateral. The Fund is obligated to pay fees for borrowing the securities sold short and is required to pay the counterparty any dividends and/or interest due on securities sold short. Such dividends and/or interest and any security borrowing fees are recorded as an expense to the Fund.

f. Securities Lending

The Fund participates in an agency based securities lending program to earn additional income. The Fund receives collateral in the form of cash and/or U.S. Government and Agency securities against the loaned securities in an amount equal to at least 102% of the fair value of the loaned securities. Collateral is maintained over the life of the loan in an amount not less than 100% of the fair value of loaned securities, as determined at the close of Fund business each day; any additional collateral required due to changes in security values is delivered to the Fund on the next business day. Any cash collateral received is deposited into a joint cash account with other funds and is used to invest in a money market fund managed by Franklin Advisers, Inc., an affiliate of the Fund, and/or a joint repurchase agreement. Additionally, the Fund received $7,783,819 in U.S. Government and Agency securities as collateral. These securities are held as collateral in segregated accounts with the Fund's custodian. The Fund cannot repledge or resell these securities held as collateral. As such, the non-cash collateral is excluded from the Consolidated Statement of Assets and Liabilities. The Fund may receive income from the investment of cash collateral, in addition to lending fees paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third party vendor, is reported separately in the Consolidated Statement of Operations. The Fund bears the market risk with respect to any cash collateral investment, securities loaned, and the risk that the agent may default on its obligation to the Fund. If the borrower defaults on its obligations to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower. Securities on loan outstanding at period end, if any, are listed in the Fund's Consolidated Schedule of Investments.

g. Investments in K2 Holdings Investment Corp. (K2 Subsidiary)

The Fund invests in certain financial instruments and commodity-linked derivative investments through its investment in the K2 Subsidiary. The K2 Subsidiary is a Cayman Islands exempted company with limited liability, is a wholly-owned subsidiary of the Fund, and is able to invest in certain financial instruments and commodity-linked derivative

<br> 108 Semiannual Report franklintempleton.com

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

1. Organization and Significant Accounting

**Policies (continued)** 

g. Investments in K2 Holdings Investment Corp. (K2 Subsidiary) (continued)

investments consistent with the investment objective of the Fund. At November 30, 2025, the K2 Subsidiary's investments, as well as any other assets and liabilities of the K2 Subsidiary, are reflected in the Fund's Consolidated Schedule of Investments and Consolidated Statement of Assets and Liabilities. All intercompany transactions and balances have been eliminated. For tax purposes, the Fund is required to increase its taxable income by its share of the K2 Subsidiary's income. Net losses incurred by the K2 Subsidiary cannot offset income earned by the Fund and cannot be carried back or forward by the K2 Subsidiary to offset income from prior or future years. At November 30, 2025, the net assets of the K2 Subsidiary were $58,612,653 representing 11.0% of the Fund's consolidated net assets. The Fund's investment in the K2 Subsidiary is limited to 25% of consolidated assets.

h. Senior Floating Rate Interests

The Fund invests in senior secured corporate loans that pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank or the Secured Overnight Financing Rate (SOFR). Senior secured corporate loans often require prepayment of principal from excess cash flows, at the discretion of the borrower. As a result, actual maturity may be substantially less than the stated maturity. Senior secured corporate loans in which the Fund invests are generally readily marketable, but may be subject to certain restrictions on resale.

i. Income and Deferred 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 taxable 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 Fund may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which it invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests. When a capital gain tax is determined to apply, the Fund records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

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 November 30, 2025, the Fund has determined that no tax liability is required in its consolidated 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.

j. 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 (including interest income from payment in-kind securities, if any) and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Paydown gains and losses are recorded as an adjustment to interest income. The Fund may receive other income from investments in senior secured corporate loans or unfunded commitments, including amendment fees, consent fees or commitment fees. These fees are recorded as income when received by the Fund. Facility fees are recognized as income over the expected term of the loan. Dividend income and dividends declared on securities sold short are recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Fund. Distributions to shareholders 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.

k. 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.

<br> franklintempleton.com Semiannual Report 109

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

1. Organization and Significant Accounting

**Policies (continued)** 

l. 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.

2. Shares of Beneficial Interest

At November 30, 2025, there were an unlimited number of shares authorized (without par value). Transactions in the Fund's shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended** <br>**November 30, 2025** | **Six Months Ended** <br>**November 30, 2025** | **Year Ended** <br>**May 31, 2025**  | **Year Ended** <br>**May 31, 2025**  |
|  | **Shares** | **Amount** | **Shares** | **Amount**  |
| **Class A Shares:**<br>|  |  |  |  |
| Shares sold<sup>a</sup> | 314253 | $3609713 | 608387 | $6870172  |
| Shares issued in reinvestment of distributions |  |  | 523561 | 5701580  |
| Shares redeemed | (586208) | (6706197) | (1447837) | (16555420)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (271955) | $(3096484) | (315889) | $(3983668)  |
| **Class C Shares:**<br>|  |  |  |  |
| Shares sold | 13101 | $145058 | 15673 | $170732  |
| Shares issued in reinvestment of distributions |  |  | 53738 | 565862  |
| Shares redeemed<sup>a</sup> | (142753) | (1572010) | (313711) | (3444837)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (129652) | $(1426952) | (244300) | $(2708243)  |
| **Class R Shares:**<br>|  |  |  |  |
| Shares sold | 1689 | $19724 | 20823 | $230741  |
| Shares issued in reinvestment of distributions |  |  | 3172 | 34770  |
| Shares redeemed | (20309) | (229519) | (13853) | (155172)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (18620) | $(209795) | 10142 | $110339  |
| **Class R6 Shares:**<br>|  |  |  |  |
| Shares sold | 81715 | $937939 | 7697487 | $91462413  |
| Shares issued in reinvestment of distributions |  |  | 1270740 | 13940018  |
| Shares redeemed | (868553) | (9928134) | (9321314) | (110082351)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (786838) | $(8990195) | (353087) | $(4679920)  |
| **Advisor Class Shares:**<br>|  |  |  |  |
| Shares sold | 2195232 | $25281074 | 5686022 | $63924437  |
| Shares issued in reinvestment of distributions |  |  | 2587731 | 28361533  |
| Shares redeemed | (2772175) | (31929388) | (14595218) | (168544934)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (576943) | $(6648314) | (6321465) | $(76258964) |

---

<sup>a</sup> May include a portion of Class C shares that were automatically converted to Class A.

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 Trust are also officers and/or directors of the following subsidiaries:

---

| | |
|:---|:---|
| **Subsidiary** | **Affiliation**  |
| K2/D&S Management Co., L.L.C. (K2 Advisors) | Investment manager  |
| 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 |

---

<br> 110 Semiannual Report franklintempleton.com

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

3. Transactions with Affiliates (continued)

a. Management Fees

The Fund and K2 Subsidiary pay an investment management fee, calculated daily and paid monthly, to K2 Advisors based on the average daily net assets of the Fund and K2 Subsidiary as follows:

---

| | |
|:---|:---|
| **Annualized Fee Rate** | **Net Assets**  |
| 1.70% | Up to and including $1 billion  |
| 1.65% | Over $1 billion, up to and including $1.5 billion  |
| 1.60% | Over $1.5 billion, up to and including $3 billion  |
| 1.55% | In excess of $3 billion |

---

For the period ended November 30, 2025, the gross effective management fee rate was 1.70% of the Fund's average daily net assets.

Management fees paid by the Fund are reduced on assets invested in the K2 Subsidiary, in an amount equal to the management fees paid by the K2 Subsidiary.

Effective January 1, 2026, the Fund and K2 Subsidiary will pay an investment management fee to Advisers.

Under each subadvisory agreement, the below entities provide subadvisory services to the Fund or K2 Subsidiary. The subadvisory fees are paid by K2 Advisors and are not an additional expense of the Fund or K2 Subsidiary. Effective January 1, 2026 the subadvisory fees will be paid by Advisers. Each subadvisor is compensated for managing its respective portion of the average daily net assets of the Fund or K2 Subsidiary.

---

| |
|:---|
| **Subadvisors**  |
| ActusRayPartners Limited  |
| Apollo Credit Management LLC  |
| Bardin Hill Arbitrage IC Management LP<sup>a</sup>  |
| Capital Fund Management S.A.  |
| Electron Capital Partners, LLC  |
| Franklin Advisers, Inc.<sup>b</sup>  |
| Graham Capital Management, L.P.  |
| Jennison Associates, LLC  |
| Lazard Asset Management, LLC  |
| RBC Global Asset Management (U.S.) Inc.  |
| RBC Global Asset Management (UK) Limited |

---

<sup>a</sup> Effective September 19, 2025, the subadvisory agreement was terminated.

<sup>b</sup> An affiliate of K2 Advisors. Effective January 1, 2026, the subadvisory agreement will be terminated.

b. Administrative Fees

Under an agreement with K2 Advisors, FT Services provides administrative services to the Fund and K2 Subsidiary. The fee is paid by K2 Advisors based on the Fund's and K2 Subsidiary's average daily net assets, and is not an additional expense of the Fund or K2 Subsidiary. Effective January 1, 2026 the fee will be paid by Advisers.

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 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. Under the Class A reimbursement distribution plan, costs exceeding the maximum for the current plan year cannot be reimbursed in subsequent periods. In addition, under the Fund's Class C and R compensation distribution plans, 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 for each class. 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:

---

| | |
|:---|:---|
| Class A | &nbsp;&nbsp;&nbsp;&nbsp; 0.30%  |
| Class C | &nbsp;&nbsp;&nbsp;&nbsp; 1.00%  |
| Class R | &nbsp;&nbsp;&nbsp;&nbsp; 0.50% |

---

The Board has set the current rate at 0.25% per year for Class A shares until further notice and approval by the Board.

<br> franklintempleton.com Semiannual Report 111

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

3. Transactions with Affiliates (continued)

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:

---

| | |
|:---|:---|
| Sales charges retained net of commissions paid to unaffiliated brokers/dealers | &nbsp;&nbsp;&nbsp;&nbsp; $967  |
| CDSC retained | &nbsp;&nbsp;&nbsp;&nbsp; $107 |

---

e. Transfer Agent Fees

Each class of shares pays transfer agent fees, calculated monthly and paid monthly, to Investor Services for its performance of shareholder servicing obligations. The fees are based on a fixed margin earned by Investor Services and are allocated to the Fund based upon relative assets and relative transactions. 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 paid to third parties are accrued and allocated daily based upon their relative proportion of such classes' aggregate net assets. Class R6 pays Investor Services transfer agent fees allocated specifically to that class based upon its relative assets and relative transactions.

For the period ended November 30, 2025, the Fund paid transfer agent fees as noted in the Consolidated Statement of Operations, of which $69,389 was retained by Investor Services.

f. Investments in Affiliated Management Investment Companies

The Fund invests in one or more affiliated management investment companies. As defined in the 1940 Act, an investment is deemed to be a "Controlled Affiliate" of a fund when a fund owns, either directly or indirectly, 25% or more of the affiliated fund's outstanding shares or has the power to exercise control over management or policies of such fund. The Fund does not invest for purposes of exercising a controlling influence over the management or policies. Management fees paid by the Fund are waived on assets invested in the affiliated management investment companies, as noted in the Consolidated Statement of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the period ended November 30, 2025, the Fund held investments in affiliated management investment companies as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Value at** <br>**Beginning** <br>**of Period** | **Purchases** | **Sales** | **Realized** <br>**Gain (Loss)** | **Net Change in** <br>**Unrealized** <br>**Appreciation** <br>(Depreciation) | **Value at** <br>**End of** <br>**Period** | **Number of** <br>**Shares** <br>**Held at End** <br>**of Period** | **Income** <br>**from** <br>**Securities** <br>**Loaned**  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Non-Controlled Affiliates**<br>**Franklin Institutional U.S.** <br>**Government Money Market Fund, 3.92%** | $2829000 | $25578000 | $(26602000) | &nbsp;&nbsp;&nbsp; $— | &nbsp;&nbsp;&nbsp;&nbsp; $— | $1805000 | 1805000 | $54565 |

---

g. Waiver and Expense Reimbursements

K2 Advisors has contractually agreed in advance to waive or limit its fees and to assume as their own expense certain expenses otherwise payable by the Fund so that the operating expenses (excluding interest expense, distribution fees, acquired fund fees and expenses, expenses related to securities sold short 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 1.70% based on the average net assets of each class until September 30, 2026. Total expenses waived or paid are not subject to recapture subsequent to the Fund's fiscal year end. Effective January 1, 2026 the fees will be waived by Advisers.

Transfer agent fees on Class R6 shares of the Fund have been capped so that transfer agent fees for that class do not exceed 0.03% based on the average net assets of the class until September 30, 2026.

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains.

At November 30, 2025, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:

---

| | |
|:---|:---|
| Cost of investments | $399455645  |
| Unrealized appreciation | $49053171  |
| Unrealized depreciation | (55723413)  |
| Net unrealized appreciation (depreciation) | $(6670242) |

---

<br> 112 Semiannual Report franklintempleton.com

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

4. Income Taxes (continued)

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of derivative financial instruments, foreign currency transactions, wash sales and investments in the K2 Subsidiary.

5. Investment Transactions

Purchases and sales of investments and securities sold short (excluding short term securities) for the period ended November 30, 2025, aggregated $524,724,613 and $545,420,124, respectively.

At November 30, 2025, in connection with securities lending transactions, the Fund loaned equity investments and convertible bonds and received $1,805,000 of cash collateral. The gross amounts of recognized liability for such transactions are included in payable upon return of securities loaned in the Consolidated Statement of Assets and Liabilities. The agreements can be terminated at any time.

6. Credit Risk and Defaulted Securities

At November 30, 2025, the Fund had 28.2% of its portfolio invested in high yield, senior secured floating rate loans, or other securities rated below investment grade 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 may purchase the pre-default or defaulted debt of distressed companies. Distressed companies are financially troubled and could be or are already involved in financial restructuring or bankruptcy. Risks associated with purchasing these securities include the possibility that the bankruptcy or other restructuring process takes longer than expected, or that distributions in restructuring are less than anticipated, either or both of which may result in unfavorable consequences to the Fund. If it becomes probable that the income on debt securities, including those of distressed companies, will not be collected, the Fund discontinues accruing income and recognizes an adjustment for uncollectible interest.

At November 30, 2025, the aggregate long value of distressed company securities for which interest recognition has been discontinued was $1,496,945, representing 0.3% of the Fund's net assets. For information as to specific securities, see the accompanying Consolidated Schedule of Investments.

7. Concentration of Risk

Investments in issuers domiciled or with significant operations in developing or emerging market countries may be subject to higher risks than investments in developed countries. These risks include fluctuating currency values, underdeveloped legal or business systems, and changing local and regional economic, political and social conditions, which may result in greater market volatility. In addition, certain foreign securities may not be as liquid as U.S. securities. Currencies of developing or emerging market countries may be subject to significantly greater risks than currencies of developed countries, including the potential inability to repatriate those currencies into U.S. dollars.

Russia's military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict could increase volatility and uncertainty in the financial markets and adversely affect regional and global economies. The United States and other countries have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. These sanctions, as well as any other economic consequences related to the invasion, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on governments, companies or individuals, may further decrease the value and liquidity of certain Russian securities and securities of issuers in other countries that are subject to economic sanctions related to the invasion. To the extent that the Fund has exposure to Russian investments or investments in countries affected by the invasion, the Fund's ability to price, buy, sell, receive or deliver such investments was impaired. The Fund could determine at any time that certain of the most affected securities have little or no value. In addition, any exposure that the Fund may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Fund's portfolio. The extent and duration of Russia's military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact the Fund's performance and the value of an investment in the Fund, even beyond any direct exposure the Fund may have to Russian issuers or issuers in other countries affected by the invasion. The Valuation Committee determined that based on their analysis of the market and access to market participants, the Russian financial instruments held by the Fund had little or no value at November 30, 2025.

<br> franklintempleton.com Semiannual Report 113

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

7. Concentration of Risk (continued)

Certain investments in Chinese companies are made through a special structure known as a VIE. In a VIE structure, foreign investors, such as the Fund, will only own stock in a shell company rather than directly in the VIE, which must be owned by Chinese nationals (and/or Chinese companies) to obtain the licenses and/or assets required to operate in a restricted or prohibited sector in China. The value of the shell company is derived from its ability to consolidate the VIE into its financials pursuant to contractual arrangements that allow the shell company to exert a degree of control over, and obtain economic benefits arising from, the VIE without formal legal ownership. While VIEs are a longstanding industry practice and are well known by Chinese officials and regulators, the structure historically has not been formally recognized under Chinese law and it is uncertain whether Chinese officials or regulators will withdraw their implicit acceptance of the structure. It is also uncertain whether the contractual arrangements, which may be subject to conflicts of interest between the legal owners of the VIE and foreign investors, would be enforced by Chinese courts or arbitration bodies. Prohibitions of these structures by the Chinese government, or the inability to enforce such contracts, from which the shell company derives its value, would likely cause the

VIE-structured holding(s) to suffer significant, detrimental, and possibly permanent losses, and in turn, adversely affect the Fund's returns and net asset value.

8. Restricted Securities

The Fund invests in securities that are restricted under the Securities Act of 1933 (1933 Act). Restricted securities are often purchased in private placement transactions, and cannot be sold without prior registration unless the sale is pursuant to an exemption under the 1933 Act. Disposal of these securities may require greater effort and expense, and prompt sale at an acceptable price may be difficult. The Fund may have registration rights for restricted securities. The issuer generally incurs all registration costs.

At November 30, 2025, investments in restricted securities, excluding securities exempt from registration under the 1933 Act, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Principal** <br>**Amount** | **Issuer** | **Acquisition** <br>**Date** | **Cost** | **Value**  |
| 364401 | Atlas Security Products, A, zero cpn., 2/08/27 | &nbsp;&nbsp;&nbsp; 9/01/25 | $314853 | $333573  |
| 364401 | Atlas Security Products, B, zero cpn., 2/08/28 | &nbsp;&nbsp;&nbsp; 9/01/25 | 308429 | 315389  |
| 364401 | Atlas Security Products, C, zero cpn., 2/08/29 | &nbsp;&nbsp;&nbsp; 9/01/25 | 305588 | 297861  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Restricted Securities (Value is 0.2% of Net Assets)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Restricted Securities (Value is 0.2% of Net Assets)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Restricted Securities (Value is 0.2% of Net Assets)** | $928870 | $946823 |

---

9. Unfunded Loan Commitments

The Fund enters into certain credit agreements, all or a portion of which may be unfunded. The Fund is obligated to fund these loan commitments at the borrowers' discretion. Unfunded loan commitments and funded portions of credit agreements are marked to market daily and any unrealized appreciation or depreciation is included in the Consolidated Statement of Assets and Liabilities and the Consolidated Statement of Operations. Funded portions of credit agreements are presented in the Consolidated Schedule of Investments.

At November 30, 2025, unfunded commitments were as follows:

---

| | |
|:---|:---|
| **Borrower** | **Unfunded** <br>**Commitment** |
| DTI Holdings Inc., 2025 Refinancing Term Loan | $47505  |
| First Brands Group LLC, First Lien Term Loan | 700986  |
| H-Food Holdings LLC, Initial Term Loan | 135464  |
| Idera, Inc., Bank Debt Term Loan | 24976  |
| Liberty Communications of Puerto Rico LLC, Bank Debt Term Loan | 45456  |
| Ligado Networks LLC, DIP New Money Loan | 125624  |
| Ligado Networks LLC, DIP Roll-Up | 29505  |
| MH Sub LLC, 2024 December New Term Loans | 25788  |
| Multi-Color, Bank Debt Term Loan | 11189  |
| Perforce, Term Loan B | 147306  |
| Skopima Consillo Parent LLC, Amendment No. 5 Term Loan | 48862  |
| SonicWall, Bank Debt Term Loan | 328980  |
| XAI Holdings, Initial Fixed Rate Term Loan | 45425  |
|  | $1717066 |

---

<br> 114 Semiannual Report franklintempleton.com

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

10. Other Derivative Information

At November 30, 2025, the investments in derivative contracts are reflected in the Consolidated Statement of Assets and Liabilities as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Derivative Contracts** <br>**Not Accounted for as** <br>**Hedging Instruments** | **Asset Derivatives** | **Asset Derivatives** | **Liability Derivatives**  | **Liability Derivatives**  |
| **Derivative Contracts** <br>**Not Accounted for as** <br>**Hedging Instruments** | **Consolidated Statement** <br>**of Assets and Liabilities** <br>**Location** | **Fair Value** | **Consolidated Statement** <br>**of Assets and Liabilities** <br>**Location** | **Fair Value** |
| Interest rate contracts | Variation margin on futures contracts | &nbsp;&nbsp;&nbsp; $405873<sup>a</sup> | Variation margin on futures contracts | &nbsp;&nbsp;&nbsp; $527330<sup>a</sup>  |
|  | Unrealized appreciation on OTC swap contracts | &nbsp;&nbsp;&nbsp; 176913 | Unrealized depreciation on OTC swap contracts | &nbsp;&nbsp;&nbsp; 19693  |
|  | Variation margin on centrally cleared swap contracts | &nbsp;&nbsp;&nbsp; 580712<sup>a</sup> | Variation margin on centrally cleared swap contracts | &nbsp;&nbsp;&nbsp; 324081<sup>a</sup>  |
| Foreign exchange contracts | Variation margin on futures contracts | &nbsp;&nbsp;&nbsp; 744964<sup>a</sup> | Variation margin on futures contracts | &nbsp;&nbsp;&nbsp; 850183<sup>a</sup>  |
|  | Unrealized appreciation on OTC swap contracts | &nbsp;&nbsp;&nbsp; 22926 | Unrealized depreciation on OTC swap contracts | &nbsp;&nbsp;&nbsp; 21151  |
|  | Unrealized appreciation on OTC forward exchange contracts | &nbsp;&nbsp;&nbsp; 1591580 | Unrealized depreciation on OTC forward exchange contracts | &nbsp;&nbsp;&nbsp; 1559816  |
| Credit contracts | Variation margin on centrally cleared swap contracts | &nbsp;&nbsp;&nbsp; 39914<sup>a</sup> | Variation margin on centrally cleared swap contracts | &nbsp;&nbsp;&nbsp; 545038<sup>a</sup>  |
|  | OTC swap contracts (upfront payments) | &nbsp;&nbsp;&nbsp; 542700 | OTC swap contracts (upfront receipts) | &nbsp;&nbsp;&nbsp; 215349  |
|  | Unrealized appreciation on OTC swap contracts | &nbsp;&nbsp;&nbsp; 31754 | Unrealized depreciation on OTC swap contracts | &nbsp;&nbsp;&nbsp; 456099  |
| Equity contracts | Investments in securities, at value | &nbsp;&nbsp;&nbsp; 190642<sup>b</sup> | Options written, at value | &nbsp;&nbsp;&nbsp; 56819  |
|  | Variation margin on futures contracts | &nbsp;&nbsp;&nbsp; 2710172<sup>a</sup> | Variation margin on futures contracts | &nbsp;&nbsp;&nbsp; 984837<sup>a</sup>  |
|  | Unrealized appreciation on OTC swap contracts | &nbsp;&nbsp;&nbsp; 23832765 | Unrealized depreciation on OTC swap contracts | &nbsp;&nbsp;&nbsp; 20972383  |
| Commodity contracts | Variation margin on futures contracts | &nbsp;&nbsp;&nbsp; 1039992<sup>a</sup> | Variation margin on futures contracts | &nbsp;&nbsp;&nbsp; 2191152<sup>a</sup>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Totals |  | &nbsp;&nbsp;&nbsp; $31910907 |  | &nbsp;&nbsp;&nbsp; $28723931 |

---

<sup>a</sup> This amount reflects the cumulative appreciation (depreciation) of futures contracts and centrally cleared swap contracts as reported in the Consolidated Schedule of Investments. Only the variation margin receivable/payable at period end is separately reported within the Consolidated Statement of Assets and Liabilities. Prior variation margin movements were recorded to cash upon receipt or payment.

<sup>b</sup> Purchased option contracts are included in investments in securities, at value in the Consolidated Statement of Assets and Liabilities.

<br> franklintempleton.com Semiannual Report 115

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

10. Other Derivative Information (continued)

For the period ended November 30, 2025, the effect of derivative contracts in the Consolidated Statement of Operations was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Derivative Contracts** <br>**Not Accounted for as** <br>**Hedging Instruments**  | **Consolidated Statement of Operations Location** | **Net** <br>**Realized** <br>**Gain (Loss)** <br>**for the Period** | **Consolidated Statement** <br>**of Operations Location** | **Net** <br>**Change in** <br>**Unrealized** <br>**Appreciation** <br>(Depreciation) <br>**for the Period**  |
|  | Net realized gain (loss) from: |  | Net change in unrealized appreciation (depreciation) on: |  |
| Interest rate contracts | Futures contracts | $(1754262) | Futures contracts | $(297792)  |
|  | Swap contracts | 559019 | Swap contracts | 163810  |
| Foreign exchange contracts | Forward exchange contracts | (2069914) | Forward exchange contracts | 1838675  |
|  | Futures contracts | 263312 | Futures contracts | 118138  |
|  | Swap contracts | (160277) | Swap contracts | 63865  |
| Credit contracts | Swap contracts | 232795 | Swap contracts | (734554)  |
| Equity contracts | Investments | (759628)<sup>a</sup> | Investments | 52058<sup>a</sup>  |
|  | Written options | 474959 | Written options | 54228  |
|  | Futures contracts | 5110295 | Futures contracts | 526010  |
|  | Swap contracts | 1606972 | Swap contracts | (2051056)  |
| Commodity contracts | Futures contracts | 200391 | Futures contracts | (1578729)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Totals |  | $3703662 |  | $(1845347) |

---

<sup>a</sup> Purchased option contracts are included in net realized gain (loss) from investments and net change in unrealized appreciation (depreciation) on investments in the Consolidated Statement of Operations.

For the period ended November 30, 2025, the average month end notional amount of futures contracts and swap contracts represented $758,674,260 and $506,531,745, respectively. The average month end fair value of options was $336,251. The average month end contract value of forward exchange contracts was $163,457,879.

At November 30, 2025, OTC derivative assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
|  | **Gross Amounts of Assets and** <br>**Liabilities Presented in** <br>**the Consolidated Statement** <br>**of Assets and Liabilities**  | **Gross Amounts of Assets and** <br>**Liabilities Presented in** <br>**the Consolidated Statement** <br>**of Assets and Liabilities**  |
|  | **Assets<sup>a</sup>** | **Liabilities<sup>a</sup>**  |
| **Derivatives** | **Derivatives** | **Derivatives** |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward Exchange Contracts | $1591580 | $1559816  |
| &nbsp;&nbsp;&nbsp;&nbsp; Swap Contracts | 24607058 | 21684675  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $26198638 | $23244491 |

---

<sup>a</sup> Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

<br> 116 Semiannual Report franklintempleton.com

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

10. Other Derivative Information (continued)

At November 30, 2025, OTC derivative assets, which may be offset against OTC derivative liabilities and collateral received from the counterparty, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Gross Amounts of Assets** <br>**Presented in the** <br>**Consolidated Statement** <br>**of Assets and Liabilities** | **Amounts Not Offset in the Consolidated Statement** <br>**of Assets and Liabilities** | **Amounts Not Offset in the Consolidated Statement** <br>**of Assets and Liabilities** | **Amounts Not Offset in the Consolidated Statement** <br>**of Assets and Liabilities** | **Net Amount** <br>**(Not less than zero)**  |
|  | **Gross Amounts of Assets** <br>**Presented in the** <br>**Consolidated Statement** <br>**of Assets and Liabilities** | **Financial** <br>**Instruments** <br>**Available for Offset** | **Financial** <br>**Instruments** <br>**Collateral** <br>**Received<sup>a</sup>** | **Cash** <br>**Collateral** <br>**Received**  | **Net Amount** <br>**(Not less than zero)**  |
| **Counterparty**<br>|  |  |  |  |  |
| BNYM | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $4283 | &nbsp;&nbsp;&nbsp;&nbsp; $— | &nbsp;&nbsp;&nbsp; $— | $— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $4283  |
| BZWS | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 273452 | &nbsp;&nbsp;&nbsp;&nbsp; (254073) | &nbsp;&nbsp;&nbsp; (19379) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| CITI | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 211964 | &nbsp;&nbsp;&nbsp;&nbsp; (45401) | &nbsp;&nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 166563  |
| GSCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4248605 | &nbsp;&nbsp;&nbsp;&nbsp; (4248605) | &nbsp;&nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| HSBC | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| JPHQ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5540117 | &nbsp;&nbsp;&nbsp;&nbsp; (3658894) | &nbsp;&nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1881223  |
| JPHQ<sup>b</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 380106 | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 380106  |
| MSCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6047724 | &nbsp;&nbsp;&nbsp;&nbsp; (6047724) | &nbsp;&nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| MSCO<sup>b</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16765 | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16765  |
| MSCO<sup>c</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1021397 | &nbsp;&nbsp;&nbsp;&nbsp; (899392) | &nbsp;&nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 122005  |
| MSCS | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5605192 | &nbsp;&nbsp;&nbsp;&nbsp; (3899161) | &nbsp;&nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1706031  |
| NOMU | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| SEBA | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2849033 | &nbsp;&nbsp;&nbsp;&nbsp; (1751539) | &nbsp;&nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1097494  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $26198638 | &nbsp;&nbsp;&nbsp;&nbsp; $(20804789) | &nbsp;&nbsp;&nbsp; $(19379) | $— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $5374470 |

---

At November 30, 2025, OTC derivative liabilities, which may be offset against OTC derivative assets and collateral pledged to the counterparty, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Gross Amounts of Liabilities** <br>**Presented in the** <br>**Consolidated Statement** <br>**of Assets and Liabilities** | **Amounts Not Offset in the Consolidated Statement** <br>**of Assets and Liabilities** | **Amounts Not Offset in the Consolidated Statement** <br>**of Assets and Liabilities** | **Amounts Not Offset in the Consolidated Statement** <br>**of Assets and Liabilities** | **Net Amount** <br>**(Not less than zero)**  |
|  | **Gross Amounts of Liabilities** <br>**Presented in the** <br>**Consolidated Statement** <br>**of Assets and Liabilities** | **Financial** <br>**Instruments** <br>**Available for Offset** | **Financial** <br>**Instruments** <br>**Collateral** <br>**Pledged<sup>a</sup>** | **Cash** <br>**Collateral** <br>**Pledged<sup>a</sup>** | **Net Amount** <br>**(Not less than zero)**  |
| **Counterparty**<br>|  |  |  |  |  |
| BNYM | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $— | &nbsp;&nbsp;&nbsp;&nbsp; $— | &nbsp;&nbsp; $— | $— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $—  |
| BZWS | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 254073 | &nbsp;&nbsp;&nbsp;&nbsp; (254073) | &nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| CITI | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 45401 | &nbsp;&nbsp;&nbsp;&nbsp; (45401) | &nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| GSCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5391982 | &nbsp;&nbsp;&nbsp;&nbsp; (4248605) | &nbsp;&nbsp; (1143377) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| HSBC | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2476 | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2476  |
| JPHQ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3658894 | &nbsp;&nbsp;&nbsp;&nbsp; (3658894) | &nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| JPHQ<sup>b</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 492875 | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 492875  |
| MSCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6723573 | &nbsp;&nbsp;&nbsp;&nbsp; (6047724) | &nbsp;&nbsp; — | (675849) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| MSCO<sup>b</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 39727 | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 39727  |
| MSCO<sup>c</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 899392 | &nbsp;&nbsp;&nbsp;&nbsp; (899392) | &nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| MSCS | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3899161 | &nbsp;&nbsp;&nbsp;&nbsp; (3899161) | &nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| NOMU | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 85398 | &nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp; (85398) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| SEBA | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1751539 | &nbsp;&nbsp;&nbsp;&nbsp; (1751539) | &nbsp;&nbsp; — |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $23244491 | &nbsp;&nbsp;&nbsp;&nbsp; $(20804789) | &nbsp;&nbsp; $(1228775) | $(675849) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $535078 |

---

<sup>a</sup> In some instances, the collateral amounts disclosed in the table above were adjusted due to the requirement to limit the collateral amounts to avoid the effect of over collateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein.

<sup>b</sup> Represents derivatives not subject to an ISDA master agreement.

<sup>c</sup> Represents derivatives owned by the K2 Holdings Investment Corp., a wholly-owned subsidiary of the Fund. See Note 1(g).

See Note 1(d) regarding derivative financial instruments.

See Abbreviations on page 120.

<br> franklintempleton.com Semiannual Report 117

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

11. 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 $2.995 billion (Global Credit Facility) which matures on January 30, 2026. 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 may, 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, 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 Consolidated Statement of Operations. During the period ended November 30, 2025, the Fund did not use the Global Credit Facility.

12. 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:

&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 — quoted prices in active markets
 for identical financial instruments

&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 — other significant observable
 inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

&nbsp;&nbsp;&nbsp;&nbsp;• 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 November 30, 2025, in valuing the Fund's assets and liabilities carried at fair value, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| **Assets:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in Securities:<sup>a</sup><br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity Investments<sup>b</sup> | $100352852 | $5 | $15585<sup>c</sup> | $100368442  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible Bonds |  | 95586075 |  | 95586075  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible Bonds in Reorganization |  | 5762 |  | 5762  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds and Notes |  | 17666947 | 946823 | 18613770  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds and Notes in Reorganization |  | 587821 |  | 587821  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior Floating Rate Interests |  | 5783242 | 3335715 | 9118957  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign Government and Agency Securities |  | 31859692 |  | 31859692  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign Government and Agency Securities in Reorganization |  | 903362 |  | 903362  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. Government and Agency Securities |  | 14738113 |  | 14738113  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options Purchased | 190642 |  |  | 190642  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short Term Investments | 176793165 | 49766979 |  | 226560144  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Investments in Securities | $277336659 | $216897998<sup>d</sup> | $4298123 | $498532780  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other Financial Instruments:<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts | $4901001 | $— | $— | $4901001  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward Exchange Contracts |  | 1591580 |  | 1591580  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap Contracts |  | 24684984 |  | 24684984  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Other Financial Instruments | $4901001 | $26276564 | $— | $31177565  |
| **Liabilities:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other Financial Instruments:<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options Written | $56819 | $— | $— | $56819  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities Sold Short<sup>a</sup> | 72812086 | 37384980<sup>e</sup> | 265422 | 110462488  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts | 4553502 |  |  | 4553502  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward Exchange Contracts |  | 1559816 |  | 1559816  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap Contracts |  | 22338444 | —<sup>c</sup> | 22338444  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unfunded Loan Commitments |  | 7575 | 367880 | 375455  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Other Financial Instruments | $77422407 | $61290815 | $633302 | $139346524 |

---

<br> 118 Semiannual Report franklintempleton.com

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

12. Fair Value Measurements (continued)

<sup>a</sup> For detailed categories, see the accompanying Consolidated Schedule of Investments.

<sup>b</sup> Includes common stocks as well as other equity interests.

<sup>c</sup> Includes financial instruments determined to have no value.

<sup>d</sup> Includes foreign securities valued at $9,587,433, which were categorized as Level 2 as a result of the application of market level fair value procedures. See the Financial Instrument Valuation note for more information.

<sup>e</sup> Includes foreign securities valued at $1,657,151, which were categorized as Level 2 as a result of the application of market level fair value procedures. See the Financial Instrument Valuation note for more information.

A reconciliation 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.

13. Operating Segments

The Fund operates as a single operating segment, which is an investment portfolio. The portfolio managers assigned to the Fund within the Fund's investment manager serve as the Chief Operating Decision Maker ("CODM") and are responsible for evaluating the Fund's operating results and allocating resources in accordance with the Fund's investment strategy. Internal reporting provided to the CODM aligns with the accounting policies and measurement principles used in the consolidated financial statements.

For information regarding segment assets, segment profit or loss, and significant expenses, refer to the Consolidated Statement of Assets and Liabilities and the Consolidated Statement of Operations, along with the related notes to the consolidated financial statements. The Consolidated Schedule of Investments provides details of the Fund's investments that generate returns such as interest, dividends, and realized and unrealized gains or losses. Performance metrics, including portfolio turnover and expense ratios, are disclosed in the Consolidated Financial Highlights.

14. New Accounting Pronouncements

In December 2023, the FASB issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. The amendments enhance income tax disclosures by requiring greater disaggregation in the rate reconciliation and income taxes paid by jurisdiction, while removing certain disclosure requirements. The ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. Management is currently evaluating the impact and believes that the adoption of the ASU will not have a material impact on the financial statements.

15. Subsequent Events

The Fund has evaluated subsequent events through the issuance of the consolidated financial statements and determined that no events have occurred that require disclosure other than those already disclosed in the consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

**Abbreviations** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Counterparty** | **Currency** | **Currency** | **Selected Portfolio** | **Selected Portfolio** |
| **BNPP** | BNP Paribas | **AUD** | Australian Dollar | **ADR** | American Depositary Receipt  |
| **BNYM** | The Bank of New York Mellon Corp. | **BRL** | Brazilian Real | **ASX** | Australian Securities Exchange  |
| **BZWS** | Barclays Bank PLC | **CAD** | Canadian Dollar | **BOBL** | Bundesobligation  |
| **CITI** | Citigroup, NA | **CHF** | Swiss Franc | **BRLCDI** | Brazil Cetip Di Interbank Deposit Rate  |
| **DBAB** | Deutsche Bank, AG | **COP** | Colombian Peso | **BUBOR** | Budapest Interbank Offered Rate  |
| **GSCO** | Goldman Sachs International | **CZK** | Czech Koruna | **CAC** | Cotation Assistee en Continu  |
| **HSBC** | HSBC Bank PLC | **DKK** | Danish Krone | **CBOE** | Chicago Board Options Exchange  |
| **JPHQ** | JP Morgan Chase Bank, NA | **DOP** | Dominican Peso | **CMT** | Constant Maturity Treasury Index  |
| **MSCO** | Morgan Stanley & Co. LLC | **EGP** | Egyptian Pound | **CIBOR** | Copenhagen Interbank Offered Rate  |
| **MSCS** | Morgan Stanley Capital Services LLC | **EUR** | Euro | **COLIBOR** | Colombia Overnight Interbank Rate  |
| **NOMU** | Nomura International PLC | **GBP** | British Pound  | **DAX** | Deutscher Aktienindex  |
| **SEBA** | Skandinaviska Enskilda Banken AB | **HKD** | Hong Kong Dollar | **DJIA** | Dow Jones Industrial Average  |
|  |  | **HUF** | Hungarian Forint | **ECX** | European Climate Exchange  |
|  |  | **IDR** | Indonesian Rupiah | **EONIA** | Euro OverNight Index Average  |
|  |  | **INR** | Indian Rupee | **ETF** | Exchange Traded Fund  |
|  |  | **JPY** | Japanese Yen | **EURIBOR** | Euro Interbank Offered Rate  |
|  |  | **KZT** | Kazakhstani Tenge | **Euro STR** | Euro Area Euro Short Term Rate  |
|  |  | **MXN** | Mexican Peso | **FEDEF** | Federal Funds Effective Rate  |
|  |  | **MYR** | Malaysian Ringgits |  |  |
|  |  | **NOK** | Norwegian Krone | **<sup>FRN</sup>** | <sup>Floating Rate Note</sup>  |
|  |  | **NZD** | New Zealand Dollar | **<sup>FTSE</sup>** | <sup>Financial Times Stock Exchange</sup>  |
|  |  | **PEN** | Peruvian Nuevo Sol | **<sup>HIBOR</sup>** | <sup>Hong Kong Interbank Offered Rate</sup>  |
|  |  | **PLN** | Polish Zloty | **<sup>HONIA</sup>** | <sup>Hong Kong Overnight Index Average</sup>  |
|  |  | **PYG** | Paraguayan Guarani | **<sup>IBEX</sup>** | <sup>Iberian Index</sup>  |
|  |  | **SEK** | Swedish Krona | **<sup>ICE</sup>** | <sup>Intercontinental Exchange</sup>  |
|  |  | **SGD** | Singapore Dollar | **<sup>JIBAR</sup>** | <sup>Johannesburg Interbank Agreed Rate</sup>  |
|  |  | **TRY** | Turkish Lira | **<sup>JSE</sup>** | <sup>Johannesburg Stock Exchange Index</sup>  |
|  |  | **USD** | United States Dollar | **<sup>KLIBOR</sup>** | <sup>Kuala Lumpur Interbank Offered Rate</sup>  |
|  |  | **ZAR** | South African Rand | **<sup>MIB</sup>** | <sup>Milano Italia Borsa</sup>  |
|  |  |  |  | **<sup>MIBOR</sup>** | <sup>Mumbai Interbank Offered Rate</sup>  |
| **<u>Index</u>** |  |  |  | **<sup>MSCI</sup>** | <sup>Morgan Stanley Capital International</sup>  |
| **CDX.EM** | CDX Emerging Markets Index |  |  | **<sup>NIBOR</sup>** | <sup>Norwegian Interbank Offered Rate</sup>  |
| **CDX.NA.HY** | CDX North America High Yield Index |  |  | **<sup>NZOCR</sup>** | <sup>Reserve Bank of New Zealand Cash Rate</sup>  |
| **CDX.NA.IG** | CDX North America Investment Grade Index |  |  | **<sup>OAT</sup>** | <sup>Obligation Assumable by the Treasurer</sup>  |
| **ITRX.EUR** | iTraxx Europe Index |  |  | **<sup>PIK</sup>** | <sup>Payment In-Kind</sup>  |
| **ITRX.EUR.FIN** | iTraxx Europe Financials Index |  |  | **<sup>RBACR</sup>** | <sup>Reserve Bank of Australia's Cash Rate</sup>  |
| **ITRX.EUR.XOVER** | iTraxx Europe Crossover Index |  |  | **<sup>REIT</sup>**  | <sup>Real Estate Investment Trust</sup>  |
|  |  |  |  | **<sup>SABOR</sup>** | <sup>South African Benchmark Overnight Rate</sup>  |
|  |  |  |  | **<sup>SORA</sup>** | <sup>Singapore Overnight Rate Average</sup>  |
|  |  |  |  | **<sup>SARON</sup>** | <sup>Swiss Average Rate Overnight</sup>  |
|  |  |  |  | **<sup>SOFR</sup>** | <sup>Secured Overnight Financing Rate</sup>  |
|  |  |  |  | **<sup>SONIA</sup>** | <sup>Sterling Overnight Index Average</sup>  |
|  |  |  |  | **<sup>SPDR</sup>** | <sup>Standard & Poor's Depositary Receipt</sup>  |
|  |  |  |  | **<sup>SPI</sup>** | <sup>Swiss Performance Index</sup>  |
|  |  |  |  | **<sup>STIBOR</sup>** | <sup>Stockholm Interbank Offered Rate</sup>  |
|  |  |  |  | **<sup>STR</sup>** | <sup>Short Term Rate</sup>  |
|  |  |  |  | **<sup>TLREF</sup>** | <sup>Turkish Lira Overnight Reference Rate</sup>  |
|  |  |  |  | **<sup>TONAR</sup>** | <sup>Tokyo Overnight Average Rate</sup>  |
|  |  |  |  | **<sup>TOPIX</sup>** | <sup>Tokyo Price Index</sup>  |
|  |  |  |  | **<sup>TSX</sup>** | <sup>Toronto Stock Exchange</sup> |

---

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

The following reference rates, and their values as of year end, are used for security description:

---

| | |
|:---|:---|
| **Reference Index** | **Reference Rate** |
| 1-Day EONIA | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.925% |
| 1-Day FEDEF | &nbsp;&nbsp;&nbsp;&nbsp;3.890 |
| 1-Day HONIA | &nbsp;&nbsp;&nbsp;&nbsp;3.087 |
| 1-Day NZOCR | &nbsp;&nbsp;&nbsp;&nbsp;2.250 |
| 1-Day RBACR | &nbsp;&nbsp;&nbsp;&nbsp;3.600 |
| 1-Day SABOR | &nbsp;&nbsp;&nbsp;&nbsp;6.724 |
| 1-Day SARON | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (0.038) |
| 1-Day SONIA | &nbsp;&nbsp;&nbsp;&nbsp;3.969 |
| 1-Day SORA | &nbsp;&nbsp;&nbsp;&nbsp;1.052 |
| 1-Day TONAR | &nbsp;&nbsp;&nbsp;&nbsp;0.477 |
| 1-Month EURIBOR | &nbsp;&nbsp;&nbsp;&nbsp;1.946 |
| 1-Month SOFR | &nbsp;&nbsp;&nbsp;&nbsp;3.864 |
| 1-Week CIBOR | &nbsp;&nbsp;&nbsp;&nbsp;1.810 |
| 1-Week NIBOR | &nbsp;&nbsp;&nbsp;&nbsp;4.040 |
| 1-Week STIBOR | &nbsp;&nbsp;&nbsp;&nbsp;1.762 |
| 3-Month JIBAR | &nbsp;&nbsp;&nbsp;&nbsp;6.783 |
| 3-Month SOFR | &nbsp;&nbsp;&nbsp;&nbsp;3.787 |
| 6-Month BUBOR | &nbsp;&nbsp;&nbsp;&nbsp;6.480 |
| Banxico Mexico 1 Month Rate | &nbsp;&nbsp;&nbsp;&nbsp;7.250 |
| BRLCDI | &nbsp;&nbsp;&nbsp;&nbsp;14.900 |
| COLIBOR | &nbsp;&nbsp;&nbsp;&nbsp;8.658 |
| Euro STR | &nbsp;&nbsp;&nbsp;&nbsp;1.925 |
| EURIBOR | &nbsp;&nbsp;&nbsp;&nbsp;2.060 |
| HIBOR | &nbsp;&nbsp;&nbsp;&nbsp;3.183 |
| KLIBOR | &nbsp;&nbsp;&nbsp;&nbsp;3.260 |
| MIBOR | &nbsp;&nbsp;&nbsp;&nbsp;5.590 |
| SOFR | &nbsp;&nbsp;&nbsp;&nbsp;4.120 |
| TONAR | &nbsp;&nbsp;&nbsp;&nbsp;0.477 |
| TLREF | &nbsp;&nbsp;&nbsp;&nbsp;39.383 |
| US 5-Year CMT | &nbsp;&nbsp;&nbsp;&nbsp;3.590 |

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**Changes in and Disagreements with AccountantsFor the period covered by this report.** 

Not applicable.

**Results of Meeting(s) of ShareholdersFor the period covered by this report.** 

Not applicable.

**Renumeration Paid to Directors, Officers and OthersFor the period covered by this report.** 

Refer to the financial statements included herein. Remuneration to officers is paid by the Fund`s investment manager according to the terms of the agreement.

**Board Approval of Investment Management Agreements For the period covered by this report.** 

**and Sub-Advisory Agreements (unaudited)**

**FRANKLIN ALTERNATIVE STRATEGIES FUNDS** 

**K2 Alternative Strategies Fund** 

(Fund)

The Board of Trustees (Board) of Franklin Alternative Strategies Funds (the Trust), including a majority of trustees that are not "interested persons" as such term is defined in section 2(a)(19) of the Investment Company Act of 1940 (hereinafter referred to as "independent trustees"), at an in person meeting held on May 28, 2025, unanimously approved the continuance of the Fund's investment management agreement with K2/D&S Management Co., L.L.C. (K2 Advisors), and continuance of each sub-advisory agreement between K2 Advisors and each of the following sub-advisors (the Sub-Advisors):

ActusRayPartners Limited

Apollo Credit Management, LLC

Bardin Hill Arbitrage IC Management L.P.

Capital Fund Management S.A.

Electron Capital Partners, LLC

Graham Capital Management, L.P.

Jennison Associates LLC

Lazard Asset Management LLC

RBC Global Asset Management (UK) Limited /

RBC Global Asset Management (U.S.) Inc.

Franklin Advisers, Inc. (FAV)

The Board also approved the assignment and assumption of the Fund's investment management agreement and each sub-advisory agreement to FAV in connection with an internal reorganization at Franklin Templeton expected to occur on or about September 2, 2025. Employees of K2 Advisors who currently provide investment management and investment-related services to the Fund will become employees of FAV and will continue to provide the same investment management and investment-related services to the Fund under the same investment management fee schedule. Upon the transfer of the investment management agreement to FAV, the current sub-advisory agreement between K2 Advisors and FAV for the Fund will be terminated. This transfer will not involve a change in actual control or management of the Fund's investment manager and the same individuals will continue to provide portfolio management services to the Fund. Because there is no actual change in control or management of the investment manager, this transfer does not constitute an "assignment" of

the investment management agreement or the sub-advisory agreements for purposes of the Investment Company Act of 1940 and, therefore, a shareholder vote is not required.

Prior to a meeting of all of the trustees for the purpose of considering such continuance, the independent trustees participated in two other meetings held in connection with the renewal process. Throughout the process, the independent trustees received assistance and advice from and met separately with independent counsel. The independent trustees met with and interviewed officers of K2 Advisors and representatives of certain Sub-Advisors (including portfolio managers), the transfer agent and shareholder services group and the distributor. In approving the continuance of the investment management agreement and the continuance of the sub-advisory agreements for the Fund, the Board, including the independent trustees, determined that the investment management fee structure was fair and reasonable and that continuance of the agreements was in the best interests of the Fund and its shareholders.

In making the foregoing approvals, the Board considered various materials related to the investment management agreement and the sub-advisory agreements including: (1) a copy of the investment management agreement and sub-advisory agreements; (2) information describing the nature, quality and extent of services that K2 Advisors and each Sub-Advisor provided, and are expected to provide, to the Fund, and the investment management fees and sub-advisory fees payable to K2 Advisors and each Sub-Advisor; (3) reports from K2 Advisors on the continued diligence conducted on each Sub-Advisor and the reasons for recommending continuance of each of the sub-advisory agreements, including, but not limited to, each Sub-Advisor's background, experience, personnel, operations, policies, procedures and compliance functions; and (4) a report from the Trust's Chief Compliance Officer regarding K2 Advisors' and each Sub-Advisor's compliance program and capabilities, including policies and procedures in place to address potential conflicts of interest, and the diligence undertaken by the Trust's Chief Compliance Officer with respect thereto. 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 the ongoing integration of acquired third-party fund families into the FT

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family of funds and management's continued development of strategies to address areas of evolving changes in domestic policy and continuing geopolitical concerns.

The Board also took into account information furnished throughout the year at Board meetings, as well as information specifically requested and furnished for the renewal process, which culminated in the meetings referred to above for the specific purpose of considering such agreements. Information furnished throughout the year included, among others, reports on the Fund's investment performance, expenses, portfolio composition, derivatives, portfolio turnover, Rule 12b-1 plan, distribution, shareholder servicing, legal and compliance matters, pricing of securities, sales and redemptions, and marketing support payments made to financial intermediaries, as well as a third-party survey of transfer agent fees charged to funds within the FT complex in comparison to those charged to other fund complexes deemed comparable. Also, related financial statements and other information about the scope and quality of services provided by K2 Advisors and its affiliates and enhancements to such services over the past year were provided. In addition, the trustees received periodic reports throughout the year and during the renewal process relating to compliance with the Fund's investment policies and restrictions. During the renewal process, the independent trustees considered K2 Advisors' methods of operation within the FT group and its activities on behalf of other clients.

The information obtained by the trustees during the renewal process also included a special report prepared by Broadridge Financial Solutions, Inc., an independent third-party analyst that utilizes data from Lipper, Inc. (Lipper), comparing the Fund's investment performance and expenses with those of other mutual funds deemed comparable to such Fund as selected by Lipper (Broadridge Section 15(c) Report). The trustees reviewed the Broadridge Section 15(c) Report and its usefulness in the renewal process with respect to matters such as comparative fees, expenses, expense ratios and performance. The Board considered K2 Advisors' views that the peer group determined by Lipper for comparison purposes may not be an entirely appropriate representation of the Fund's peer universe. K2 Advisors explained that the universe of funds that are managed using multi-manager, multistrategy structures, like the Fund, continues to evolve, and has presented challenges in identifying an appropriate set of peers for the Fund. It was noted by K2 Advisors that the peer group compiled by Lipper includes single-manager funds which, due to their nature and relative simplicity, have lower expense ratios and are not true peers for fee comparison purposes (Base Expense Group). Because some of the sponsors of funds with multi-manager strategies that K2 Advisors considers to be peers were excluded from the peer group determined by Lipper, K2 Advisors requested a second peer group including funds that K2 Advisors considers to be peer funds (Alternate Expense Group) for the Board's consideration. While noting the limitations of the Broadridge Section 15(c) Report, the Board concluded that the Broadridge Section 15(c) Report was helpful in the performance of its duties and took into account the Alternate Expense Group as part of its considerations.

In addition, the trustees received a Profitability Study (Profitability Study) prepared by management discussing the profitability to FT from its overall U.S. fund operations, as well

as on an individual fund-by-fund basis. Over the past year, the Board and counsel to the independent trustees continued to receive reports on management's handling of recent regulatory inquiries and pending legal actions against K2 Advisors and its affiliates. The independent trustees were satisfied with the actions taken to date by management in response to such regulatory and legal matters. The independent trustees also received reports from the Trust's Chief Compliance Officer on regulatory inquiries and pending legal actions against the Sub-Advisors applicable to the services provided/to be provided by the Sub-Advisors to the Fund and noted that there were not any issues in this regard that should prevent the continuance of the sub-advisory agreements.

The trustees reviewed the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of K2 Advisors and each Sub-Advisor, including each management team's expertise in the management of other alternative strategies funds. As part of this review, particular attention was given to (1) the diligent risk management program of K2 Advisors and its parent, including those aspects of the program related to selecting and overseeing sub-advisors to the Fund and continual monitoring and management of cybersecurity, liquidity and counterparty credit risk, (2) each Sub-Advisor's risk management program, and (3) derivatives and other complex instruments that are held and expected to be held by the Fund and how such instruments are used to carry out the Fund's investment goal.

The Board also took into account, among other things, management's efforts in establishing a global credit facility for the benefit of the Fund and other accounts managed by FT to provide a source of cash for temporary and emergency purposes or to meet unusual redemption requests as well as the strong financial position of K2 Advisors' parent company and its commitment to the mutual fund business. The Board noted management's continuing efforts and expenditures in establishing effective business continuity plans and developing strategies to address areas of heightened concern in the mutual fund industry, such as cybersecurity and liquidity risk management. 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 recognized management's commitment to facilitating Board oversight of particular areas, including derivatives and payments to intermediaries, by enhanced reporting. In addition, the Board received updates from management on the compliance of the investment manager with comprehensive rules and regulations promulgated by the SEC and the U.S. Commodity Futures Trading Commission.

In addition to the above and other matters considered by the trustees throughout the course of the year, the following discussion relates to certain primary factors relevant to the Board's decision. This discussion of the information and factors considered by the Board (including the information and factors discussed above) is not intended to be exhaustive, but rather summarizes certain factors considered by the Board. In view of the wide variety of factors considered, the Board did

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not, unless otherwise noted, find it practicable to quantify or otherwise assign relative weights to the foregoing factors. In addition, individual trustees may have assigned different weights to various factors.

**NATURE, EXTENT AND QUALITY OF SERVICES. The trustees reviewed the nature, extent and quality of the services provided, and to be provided, by K2 Advisors and each Sub-Advisor. In this regard, they reviewed the Fund's investment goal and K2 Advisors' and each Sub-Advisor's investment strategy and sub-strategy, and K2 Advisors' and each Sub-Advisor's ability to implement such investment strategy and/or sub-strategy, including, but not limited to, K2 Advisors' and each Sub-Advisor's trading practices, investment decision processes and reputation. The Board also considered the investment management services that the investment manager and the Sub-Advisors (as applicable) provide to the Cayman Islands-based company, which is wholly owned by the Fund (Cayman Subsidiary).** 

The Board noted that the Fund employs a "manager of managers" structure, whereby K2 Advisors is responsible for selecting sub-advisors (subject to Board approval), principally allocating the Fund's assets among them, and overseeing the sub-advisors' day-to-day management of the Fund's assets. The Board noted the responsibilities that K2 Advisors has as the Fund's investment manager, including (1) due diligence on the Sub-Advisors and any potential new sub-advisors to the Fund, their respective trading strategies, risk management, operations and businesses, (2) on-going oversight and monitoring of the day-to-day investment activities of Sub-Advisors and other service providers, including their respective compliance with the investment mandate and restrictions, compliance policies and procedures and federal securities laws, and K2 Advisors' ongoing assessment of their performance, (3) portfolio construction with respect to the allocation of assets among Sub-Advisors, investment funds, cash and other investments, (4) directly managing a portion of the Fund's assets which are not allocated to Sub-Advisors, (5) risk management, (6) preparing quarterly reports to the Board, and (7) the implementation of Board directives as they relate to the Fund. The Trustees also considered the successful performance of K2 Advisors in managing the Fund and other investment products with similar investment strategies to the investment strategies of the Fund that are not subject to the Investment Company Act of 1940.

With respect to the sub-advisory services provided, and to be provided, by each Sub-Advisor, the Board noted the responsibilities that each Sub-Advisor has with respect to the portion of the Fund's assets allocated to the Sub-Advisor by K2 Advisors (Sub-Advised Portion), including, among others, implementing the investment strategies with respect to the Sub-Advised Portion and ensuring compliance with the investment strategies, policies and limitations of the Sub-Advised Portion. The trustees considered the performance of each Sub-Advisor in managing the Fund (as applicable) and other investment products with similar investment strategies to the investment strategies of its Sub-Advised Portion of the Fund, including, with respect to certain Sub-Advisors, mutual funds with similar investment strategies. The Board considered K2 Advisors' rationale for recommending the retention of each Sub-Advisor.

The trustees reviewed the Fund's portfolio management teams at K2 Advisors and each Sub-Advisor, including each such team's performance, staffing, skills and compensation program. With respect to portfolio manager compensation, management assured the trustees that the Fund's long-term performance is a significant component of incentive-based compensation for K2 Advisors' portfolio management team and noted that a portion of a K2 Advisors' portfolio manager's incentive-based compensation is paid in shares of pre-designated funds from the portfolio manager's fund management area. The trustees noted that the portfolio manager compensation program aligned the interests of the portfolio managers with that of Fund shareholders. During regular Board meetings and the aforementioned meetings of the independent trustees, the trustees considered periodic reports provided to them showing that K2 Advisors and the Sub-Advisors complied with the investment policies and restrictions of the Fund as well as other reports periodically furnished to the Board covering matters such as the compliance of portfolio managers and other management personnel with the code of ethics covering the investment management personnel, the adherence to fair value pricing procedures established by the Board and the accuracy of net asset value calculations. The Board noted the extent of the benefits provided to Fund shareholders from being part of the FT group of funds, including the right to exchange investments between funds (same class) without a sales charge, the ability to reinvest Fund dividends into other funds and the right to combine holdings of other funds to obtain reduced sales charges. The Board specifically noted FT's commitment to technological innovation and advancement, including continued focus on developing potential use cases for tokenization and the blockchain and the use of artificial intelligence tools to help streamline day-to-day tasks.

The trustees discussed with management various other products, portfolios and entities that are advised by K2 Advisors and each Sub-Advisor and the allocation of assets and expenses among and within them, as well as their relative fees and reasons for differences with respect thereto and any potential conflicts.

The Board also considered a report from the Trust's Chief Compliance Officer regarding K2 Advisors' and each Sub-Advisor's compliance program and capabilities as such programs and capabilities relate to the operations of the Fund and the monitoring and testing of such program undertaken by the Trust's Chief Compliance Officer. The Board considered the selection and due diligence process employed by K2 Advisors in selecting and deciding to retain each Sub-Advisor as a sub-advisor to the Fund, including the due diligence undertaken with respect to the Sub-Advisor's compliance and risk management capabilities. The trustees considered K2 Advisors' significant efforts in developing and implementing compliance procedures established in accordance with SEC and other requirements.

The Board also considered the nature, extent and quality of the services to be provided under the Fund's other service agreements to determine that, on an overall basis, Fund shareholders were well served. In this connection, the Board also took into account transfer agent and shareholder services provided to Fund shareholders by an affiliate of K2 Advisors,

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noting favorable periodic reports on shareholder services conducted by independent third parties. While such considerations directly affected the trustees' decision in renewing the Fund's transfer agent and shareholder services agreement, the Board also considered these commitments as incidental benefits to Fund shareholders deriving from the investment management relationship.

Based on their review, the trustees were satisfied with the nature and quality of the overall services provided, and to be provided, by K2 Advisors and its affiliates and each Sub Advisor to the Fund and its shareholders and were confident in the abilities of K2 Advisors and each Sub-Advisor to implement their respective investment strategy and/or sub-strategy and to provide quality services to the Fund and its shareholders.

**INVESTMENT PERFORMANCE. The trustees reviewed the investment performance of the Fund for the one-, three-, five- and ten-year periods ended December 31, 2024.** 

As part of their review, they inquired of management regarding benchmark and hedging activities. Consideration was also given to performance in the context of available levels of cash, including as affected by net flows, during the periods. The trustees had meetings during the year, including the meetings referred to above held in connection with the renewal process, with the Fund's portfolio managers to discuss performance and the management of the Fund and each Sub-Advisor.

In addition, attention in assessing performance was given to the Broadridge Section 15(c) Report. That report showed the investment performance of the Fund (Advisor Class shares) in comparison to other funds determined comparable by Lipper.

The comparable funds to the Fund, as chosen by Lipper, included all institutional alternative multi-strategy funds. The Fund had total returns in the best performing quintile for the one-year period ended December 31, 2024, total returns in the second-lowest performing quintile for the three-year period ended December 31, 2024, total returns in the middle performing quintile for the five-year period ended December 31, 2024 and total returns in the second-best performing quintile for the ten-year period ended December 31, 2024. The trustees also compared Fund performance to other industry benchmarks, including measures of risk-adjusted performance of a fund, as part of their evaluation of investment performance. The Board was encouraged by the improved performance in 2024, noting the initial success of the enhancements to the investment strategy that were implemented in the first quarter of 2024. While satisfied with the performance for the one-year period ended December 31, 2024, the Board noted that it would continue to monitor future performance.

COMPARATIVE EXPENSES AND PROFITABILITY. The trustees considered the cost of the services provided, and to be provided, by K2 Advisors and each Sub-Advisor and the profits realized by K2 Advisors and its affiliates from their relationships with the Fund. As part of the renewal process, they explored with management the trends in expense ratios over the past three fiscal years and the reasons for any increases in the Fund's expense ratios (or components thereof). In this regard, the trustees took into account the introduction in 2020 of breakpoints in the investment

management fee schedule of the Fund, which were designed to better position the Fund for potential asset growth. In addition, and following on-going discussions with the independent trustees with respect to the investment management fees and expense ratio of the Fund, the trustees took into account the reduction in 2024 in (i) the investment management fees from 1.90% to 1.70% for the initial investment management fee rate (and with corresponding 0.20% decreases for each breakpoint in the investment management fee schedule), and (ii) the cap in the fee waiver and expense limitation arrangement from 1.90% to 1.70%. In considering the appropriateness of the management fees and other expenses charged to the Fund, the Board took into account various factors including investment performance and matters relating to Fund operations, including, but not limited to, the quality and experience of K2 Advisors personnel. The Board also reviewed and considered the investment management fees in light of the nature, extent and quality of the investment management services provided, and/or to be provided, by K2 Advisors and each Sub-Advisor, as more fully discussed above. The Board also considered the changes negotiated by K2 Advisors in the sub-advisory fees charged by the Sub-Advisers, including the addition of breakpoints in the sub-advisory fee schedules of certain Sub-Advisors in the past few years. The Board noted that the sub-advisory fees are paid by K2 Advisors to each Sub-Advisor and are not additional fees borne by the Fund. The Board also noted that the sub-advisory fees paid, and to be paid, by K2 Advisors to each Sub-Advisor were the product of arms-length negotiations between K2 Advisors and each Sub-Advisor.

Furthermore, the Board took into account that information regarding Sub-Advisor profitability is not legally required to be provided. Accordingly, profitability information of the sub-advisors was given lesser weight than other factors. In addition, the Board considered the allocation of the investment management fees charged to the Fund between K2 Advisors and each Sub-Advisor in light of the nature, extent and quality of the investment management services provided, and to be provided, by K2 Advisors and each Sub-Advisor. As part of this discussion, the Board took into account the fee waiver and expense limitation arrangement in effect, and the amount of Fund expenses that were absorbed since inception of the Fund by K2 Advisors through such waivers and arrangements. The Board also considered the investment management services that the investment manager and the Sub-Advisors (as applicable) provide to the Cayman Subsidiary and the related fee waivers that are in place.

Consideration was also given to a comparative analysis in the Broadridge Section 15(c) Report of the investment management fees and total expense ratio of the Fund in comparison to those of a group of other funds selected by Lipper as its appropriate Lipper expense group.

Lipper expense data is based upon information taken from each fund's most recent annual report, which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility.

In reviewing comparative costs, emphasis was given to the Fund's contractual management fees in comparison with the contractual management fees that would have been charged

<br> franklintempleton.com Semiannual Report 125

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**[**TABLE OF CONTENTS**](#TOC)**

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

by other funds within its Lipper expense group assuming they were similar in size to the Fund, as well as the actual total expenses of the Fund in comparison with those of its Lipper expense group. The Lipper contractual management fee analysis includes administrative charges as being part of the management fee, and total expenses, for comparative consistency, are shown by Lipper for Fund Advisor Class shares. The Fund's contractual management fee rate was in the second-most expensive quintile of its Base Expense Group and its Alternate Expense Group. The Fund's total expenses were also in the second-most expensive quintile of its Base Expense Group and its Alternate Expense Group.

Noting (i) that the Fund's contractual management fees and total expenses were lower than the Fund's primary competitor, (ii) the factors and limitations with respect to the Broadridge Section 15(c) Report (including the inclusion of single-manager funds in the Base Expense Group), and (iii) factors relating to the Fund's operations, such as the quality and experience of K2 Advisors and the Sub-Advisors and the nature and quality of the services provided and to be provided by K2 Advisors and the Sub-Advisors, the Board found such comparative fees and expenses to be acceptable.

The trustees also reviewed the Profitability Study addressing profitability of Franklin Resources, Inc. (FRI), from its overall U.S. fund business, as well as profitability to K2 Advisors and its affiliates, from providing investment management and other services to the Fund during the 12-month period ended September 30, 2024, the most recent fiscal year-end of FRI. The trustees reviewed the basis on which such reports are prepared and the cost allocation methodology utilized in the Profitability Study, it being recognized that allocation methodologies may each be reasonable while producing different results. The Board also noted that an independent registered public accounting firm has been engaged by K2 Advisors to periodically review and assess the allocation methodologies to be used solely by the Board with respect to the profitability analysis.

The independent trustees met with management to discuss the Profitability Study. This included, among other things, a comparison of investment management income with investment management expenses of the Fund; a comparison of underwriting revenues and expenses; the relative relationship of investment management and underwriting expenses; shareholder servicing profitability; economies of scale; and the relative contribution of the Fund to the profitability of K2 Advisors and its parent. In discussing the Profitability Study with the Board, K2 Advisors stated its belief that the costs incurred in establishing the infrastructure necessary to operate the type of mutual fund operations conducted by it and its affiliates may not be fully reflected in the expenses allocated to the Fund in determining its profitability.

With respect to the impact on K2 Advisors' and its affiliates' profitability as a result of FAV serving as a sub-advisor to the Fund, the Board considered the following: (1) the fee waiver

and expense limitation arrangements in effect, the amount of Fund expenses that were absorbed since the inception of the Fund by K2 Advisors through such arrangements, and the expected impact of the engagement of FAV on the amount of Fund expenses being waived by K2 Advisors, (2) the level of sub-advisory fees to be paid to FAV, and (3) whether there is a conflict of interest from which K2 Advisors or the FAV derives an inappropriate advantage and concluded that no such inappropriate advantage existed.

The Board also took into account management's expenditures in improving shareholder services provided to the Fund, as well as the need to meet additional regulatory and compliance requirements resulting from recent US Securities and Exchange Commission and other regulatory requirements. The trustees also considered the extent to which K2 Advisors and the Sub-Advisors may derive ancillary benefits from Fund operations, including those derived from the allocation of Fund brokerage and the use of commission dollars to pay for research and other similar services.

Based upon their consideration of all these factors, the trustees determined that the level of profits realized by K2 Advisors and its affiliates in providing services to the Fund was not excessive in view of the nature, quality and extent of services provided. In addition, the Board noted that shareholders are able to redeem their Fund shares at any time if shareholders believe that Fund fees and expenses are too high or if they are dissatisfied with the performance of the Fund.

**ECONOMIES OF SCALE. The Board considered economies of scale realized by K2 Advisors and its affiliates and the Sub-Advisors as the Fund grows larger and the extent to which they are shared with Fund shareholders, as for example, in the level of the investment management fees charged, in the quality and efficiency of services rendered and in increased capital commitments benefiting the Fund directly or indirectly. The trustees noted that benefits of economies of scale will, depending on the fee waiver and expense limitation arrangement in effect at the time, potentially be shared with Fund shareholders due to the decline in the effective investment management fee rate as breakpoints are achieved by the Fund. The Board also considered the fee waiver and expense limitation arrangement in effect, and the amount of Fund expenses that were absorbed since inception of the Fund by K2 Advisors through such waiver and arrangement. The Board concluded that economies of scale were deemed not to be a significant factor at that time in light of, among other matters, the fee waiver and expense limitation arrangement in effect.** 

**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 Fund's investment management agreement and each sub-advisory agreement for an additional one-year period.

<br> 126 Semiannual Report franklintempleton.com

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**[**TABLE OF CONTENTS**](#TOC)**

![](ft_logo_pos_0119.jpg)<br>

<br>© 2026 Franklin Templeton Investments. All rights reserved. 18120-SFSOI 01/26 <br>

ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.

ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

---

| | |
|:---|:---|
| ITEM 15. | 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 16. CONTROLS AND PROCEDURES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Registrant's chief executive officer and chief financial officer have concluded that the Registrant's disclosure controls
 and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective
 as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their
 evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange
 Act of 1934.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940
 Act) that occurred during the period covered by this report that have materially affected or are likely to materially affect the Registrant's
 internal control over financial reporting.

ITEM 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

ITEM 19. EXHIBITS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (1) Not applicable

Exhibit 99.CODE ETH

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(a) (3) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.](fasf-efp21868_ex99cert.htm)

Exhibit 99.CERT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.](fasf-efp21868_ex99906cert.htm)

Exhibit 99.906CERT

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, there unto duly authorized.

---

| | |
|:---|:---|
| **Franklin Alternative Strategies Funds** | **Franklin Alternative Strategies Funds** |
| By: | /s/ Christopher Kings |
|  | Christopher Kings |
|  | Chief Executive Officer – Finance and Administration |
| Date: | January 27, 2026 |

---

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/ Christopher Kings |
|  | Christopher Kings |
|  | Chief Executive Officer – Finance and Administration |
| Date: | January 27, 2026 |
| By: | /s/ Jeffrey White |
|  | Jeffrey White |
|  | Chief Financial Officer, Chief Accounting Officer and Treasurer |
| Date: | January 27, 2026 |

---

## Ex-99.Cert

CERTIFICATIONS PURSUANT TO SECTION 302

EX-99.CERT

**<u>CERTIFICATIONS</u>**

I, Christopher Kings, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this report on Form N-CSR of **Franklin Alternative Strategies Funds**;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period
covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required
to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures
(as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule
30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented
in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to
the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change 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
registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officers and I have disclosed to the registrant's auditors
and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and
report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: | January 27, 2026 |
| /s/ Christopher Kings | /s/ Christopher Kings |
| Christopher Kings | Christopher Kings |
| Chief Executive Officer – Finance and Administration | Chief Executive Officer – Finance and Administration |

---

**<u>CERTIFICATIONS</u>**

I, Jeffrey White, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this report on Form N-CSR of **Franklin Alternative Strategies Funds**;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial information included in this report, and the financial statements
on which the financial information is based, fairly present in all material respects the financial condition, results of operations, changes
in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of,
and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officers and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's
disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change 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 registrant's internal control
over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officers and I have disclosed to the registrant's auditors
and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses
in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves
management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: | January 27, 2026 |
| /s/ Jeffrey White | /s/ Jeffrey White |
| Jeffrey White | Jeffrey White |
| Chief Financial Officer, Chief Accounting Officer and Treasurer | Chief Financial Officer, Chief Accounting Officer and Treasurer |

---

## Exhibit 99.906

CERTIFICATIONS PURSUANT TO SECTION 906

EX-99.906CERT

**CERTIFICATION**

**Christopher Kings,** Chief Executive Officer – Finance and Administration, and **Jeffrey White,** Chief Financial Officer, Chief Accounting Officer and Treasurer of **Franklin Alternative Strategies Funds.** (the "Registrant"), each certify to the best of their knowledge that:

&nbsp;&nbsp;&nbsp;&nbsp;1. The Registrant's periodic report on Form N-CSR for the period ended **November 30, 2025** (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

---

| | |
|:---|:---|
| **Chief Executive Officer –** | **Chief Financial Officer, Chief** |
| **Finance and Administration** | **Accounting Officer and Treasurer** |
| Franklin Alternative Strategies Funds | Franklin Alternative Strategies Funds |
| /s/ Christopher Kings | /s/ Jeffrey White |
| Christopher Kings | Jeffrey White |
| Date: January 27, 2026 | Date: January 27, 2026 |

---

This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Commission.