# EDGAR Filing Document

**Accession Number:** 0001535538
**File Stem:** 0001193125-23-019820
**Filing Date:** 2023-1
**Character Count:** 920012
**Document Hash:** 5045c168f96b707579e69634cc34c044
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-019820.hdr.sgml**: 20230131

**ACCESSION NUMBER**: 0001193125-23-019820

**CONFORMED SUBMISSION TYPE**: N-CSRS

**PUBLIC DOCUMENT COUNT**: 12

**CONFORMED PERIOD OF REPORT**: 20221130

**FILED AS OF DATE**: 20230131

**DATE AS OF CHANGE**: 20230131

**EFFECTIVENESS DATE**: 20230131

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Franklin Alternative Strategies Funds
- **CENTRAL INDEX KEY:** 0001535538
- **IRS NUMBER:** 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:** 23570544

**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

### Franklin 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           |

### Franklin K2 Long Short Credit Fund (Series ID: S000049976)

| Class ID   | Class Name    | Ticker Symbol   |
|:---|:---|:---|
| C000157807 | Advisor Class | FKLZX           |
| C000157808 | Class A       | FKLSX           |
| C000157809 | Class C       | FKLCX           |
| C000157810 | Class R       | FKLRX           |
| C000157811 | Class R6      | FKLQX           |

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

**FORM N-CSRS** 

**CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT** 

**INVESTMENT COMPANIES** 

Investment Company Act file number <u>811-22641</u> 

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

One Franklin Parkway

<u>San Mateo, CA 94403-1096</u> 

(Name and address of agent for service)

Registrant's telephone number, including area code: <u>650-312-2000</u>

Date of fiscal year end: <u>May 31</u>

Date of reporting period: <u>November 30, 2022</u>

------

**Item 1.** **Reports to Stockholders.** <br>

The Report to Shareholders is attached herewith.

------

**SEMIANNUAL REPORT AND SHAREHOLDER LETTER** 

## FRANKLIN K2 ALTERNATIVE STRATEGIES FUND
**A Series of Franklin Alternative Strategies Funds** 

November 30, 2022

![LOGO](g402347g83o29.jpg)

![LOGO](g402347g87g17.jpg)

Sign up for electronic delivery at franklintempleton.com/edelivery

------

## SHAREHOLDER LETTER
Dear Fellow Shareholder:

During the six months ended November 30, 2022, the global economy was impacted by continued supply-chain disruptions, slower trade and volatile prices for energy and food commodities, which contributed to higher inflation in many countries. This inflationary pressure led many of the world's central banks to adopt less accommodative monetary policies. Strict lockdowns imposed by China's government to quell the spread of COVID-19 also hindered Asian and global emerging market stocks. Additionally, geopolitical instability amid the ongoing war in Ukraine and international sanctions on Russia also added to the uncertainty about the trajectory of the global economy.

In this environment, global developed market stocks, as measured by the MSCI World Index (USD), posted a -1.56% total return for the period.<sup>1</sup> Global emerging market stocks, as measured by the MSCI Emerging Markets Index (USD), posted a -7.88% total return.<sup>1</sup> Global government bonds, as measured by the FTSE World Government Bond Index (USD), posted a -6.94% total return.<sup>1</sup>

We are committed to our long-term perspective and disciplined investment approach as we continue to conduct a rigorous analysis of Fund subadvisors and markets with a strong emphasis on investment risk management.

We believe active, professional investment management serves investors well. We also recognize the important role of financial professionals in today's markets and encourage investors to continue to seek their advice. Amid changing markets and economic conditions, we are confident investors with a well-diversified portfolio and a patient, long-term outlook should be well positioned for the years ahead.

1. Source: Morningstar.

See www.franklintempletondatasources.com for additional data provider information.

On the following pages, the Fund's portfolio management team reviews investment decisions that pertain to performance during the past six months in light of the economic environment and other factors. Please remember all securities markets fluctuate, as do mutual fund share prices.

We thank you for investing with Franklin Templeton, welcome your questions and comments, and look forward to continuing to serve your investment needs in the future.

Sincerely,

![LOGO](g402347sig_brooks.jpg)

Brooks Ritchey

President and Chief Executive Officer –

Investment Management

Franklin Alternative Strategies Funds

------

*This letter reflects our analysis and opinions as of November 30, 2022, unless otherwise indicated. The information is not a complete analysis of every aspect of any market, country, industry, security or fund. Statements of fact are from sources considered reliable.* 

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Not FDIC Insured** | \| | **May Lose Value** | \| | **No Bank Guarantee** |

---

 <br> franklintempleton.com Semiannual Report 1

------

---

| | |
|:---|:---|
| Contents |  |
| **Semiannual Report** |  |
| [Franklin K2 Alternative Strategies Fund](#tx402347_1) | 3 |
| [Performance Summary](#tx402347_2) | 7 |
| [Your Fund's Expenses](#tx402347_3) | 9 |
| [Consolidated Financial Highlights and Consolidated Schedule of Investments](#tx402347_4) | 10 |
| [Consolidated Financial Statements](#tx402347_5) | 111 |
| [Notes to Consolidated Financial Statements](#tx402347_6) | 115 |
| [Shareholder Information](#tx402347_7) | 134 |

---

Visit **franklintempleton.com** for fund updates, to access your account, or to find helpful financial planning tools.

 <br> 2 Semiannual Report franklintempleton.com

------

## SEMIANNUAL REPORT
Franklin K2 Alternative Strategies Fund

This semiannual report for Franklin K2 Alternative Strategies Fund covers the period ended November 30, 2022. As recently approved by the Fund's Board of Trustees, effective January 17, 2023, the Fund's name will change to K2 Alternative Strategies Fund. Please refer to the Fund's prospectus for more information. If you have any questions, please contact your financial professional.

Your Fund's Goal and Main Investments

The Fund seeks capital appreciation with lower volatility relative to the broad equity markets by allocating its assets across multiple non-traditional or alternative strategies, including, but not limited to, some or all of the following strategies: long short equity, relative value, event driven and global macro. The Fund may invest in a wide range of securities and other investments including, but not limited to: equity securities including common stocks, preferred stocks, convertible securities, rights and warrants, private and registered investment vehicles and exchange-traded funds (ETFs); debt securities including bonds, notes, debentures, banker's acceptances and commercial paper; loans and loan participations; and mortgage-backed or asset-backed securities, including collateralized debt obligations; as well as derivatives, commodities and currencies.

Performance Overview

The Fund's Class A shares posted a -1.43% cumulative total return for the six months under review. For comparison, the Fund's primary benchmark, the HFRX Global Hedge Fund Index, which is designed to be representative of the overall composition of the hedge fund universe, posted a -1.07% cumulative total return for the same period.<sup>1</sup> Also for comparison, the Fund's secondary benchmark, the ICE BofA U.S. 3-Month Treasury Bill Index, which tracks the performance of short-term U.S. government securities with a remaining term to final maturity of less than three months, posted a +0.97% cumulative total return for the same period.<sup>1</sup> You can find more of the Fund's performance data in the Performance Summary beginning on page 7.

*Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to* ***franklintempleton.com*** *or* *****call* ***(800) 342-5236.*** 

Economic and Market Overview

Global developed and emerging market equities, as measured by the MSCI All Country World Index-NR (USD, net of tax withholding when dividends are paid), posted a -2.51% total return for the six months ended November 30, 2022.<sup>1</sup> Volatile prices for energy and food commodities contributed to higher inflation in many countries even as global trade cooled in the third quarter of 2022. This inflationary pressure led many of the world's central banks to adopt tighter stances regarding monetary policy. Continued COVID-19 lockdowns imposed by China's government prompted protests and pressured Asian and global emerging market stocks. Geopolitical instability disrupted financial markets amid the ongoing war in Ukraine and international sanctions on Russia, adding to investor uncertainty about the trajectory of the global economy.

In the U.S., gross domestic product growth contracted in 2022's second quarter, with the economy technically entering a recession amid lower investments in inventories and fixed investments. However, growth rebounded in the third quarter, driven in part by a narrowing trade deficit. The inflation rate began the six-month period at the highest level since 1981 before moderating slightly. Elevated inflation precipitated a notable decline in consumer confidence, despite high spending levels. In an effort to control inflation, the U.S. Federal Reserve (Fed) raised the federal funds target rate four times during the period to end at a range of 3.75%–4.00%. The Fed noted in its November 2022 meeting that inflation remained elevated, spending and production grew, job growth remained robust and the unemployment rate continued to be low. Furthermore, the Fed said it would continue to reduce its bond holdings, and it anticipates further increases to the federal funds rate will be needed to achieve its inflation target.

1. Source: Morningstar. Hedge Fund Research, Inc. – www.hedgefundresearch.com. The HFRX Global Hedge Fund Index is being used under license from Hedge Fund Research, Inc., which does not endorse or approve of any of the contents of this report. Treasuries, if held to maturity, offer a fixed rate of return and a fixed principal value; their interest payments and principal are guaranteed.

The indexes are unmanaged and include reinvestment of any income or distributions. They do not reflect any fees, expenses or sales charges. One cannot invest directly in an index, and an index is not representative of the Fund's portfolio. Unlike most asset class indexes, HFR Index returns reflect fees and expenses.

See www.franklintempletondatasources.com for additional data provider information.

**The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund's Consolidated Schedule of Investments (SOI). The Consolidated SOI begins on page 15.** 

 <br> franklintempleton.com Semiannual Report 3

------

FRANKLIN K2 ALTERNATIVE STRATEGIES FUND

Economies in the eurozone maintained a slow growth rate in 2022's second and third quarters. The war in Ukraine contributed to record high inflation across the eurozone as natural gas supplies were disrupted. The European Central Bank raised interest rates in July 2022 for the first time in more than a decade, increasing rates again at two subsequent meetings, to fight growing inflation. In this environment, European developed market equities, as measured by the MSCI Europe Index-NR (USD), posted a -3.44% total return for the six months under review.<sup>1</sup>

Asian developed and emerging market equities, as measured by the MSCI All Country Asia Index-NR (USD), posted a -6.70% total return for the six-month period.<sup>1</sup> Japan's economy expanded in 2022's second quarter before contracting again in the third quarter amid higher inflation and a weakening yen. China's economy grew despite investor concerns about the solvency of several large property developers in China. Continued COVID-19 lockdowns also negatively impacted China's economy, sparking rare protests late in the six-month period and further contributing to uncertainty surrounding China's growth.

Global emerging market stocks, as measured by the MSCI Emerging Markets Index-NR (USD), posted a -8.15% total return for the six months under review.<sup>1</sup> Higher inflation combined with a strong U.S. dollar raised concerns over the possibility of government debt defaults in some countries. While energy and food prices eased following an initial surge in the wake of Russia's invasion of Ukraine, prices remained elevated, particularly pressuring countries which rely on imported commodities denominated in U.S. dollars. Rising U.S. interest rates led investors to sell off many holdings in emerging markets, including India, South Korea and Taiwan.

Investment Strategy

The Fund is structured as a multi-manager fund (meaning the Fund's assets are managed by multiple subadvisors, but we have overall responsibility for the Fund's investments). We principally allocate assets to multiple subadvisors who are implementing one or more non-traditional or alternative investment strategies, including long short equity, relative value, event driven and global macro. We allocate the Fund's assets among these strategies utilizing a top-down approach, generating the Fund's strategy weightings by taking into account market conditions, risk factors, diversification, liquidity, transparency, and availability of various subadvisors and other investment options, among other things. We allocate the Fund's assets to specific subadvisors utilizing a bottom-up approach, selecting subadvisors and their weighting within the Fund's portfolio by taking into account their correlations to various markets and to each other, their risk

profiles and their return expectations. Long short equity strategies generally seek to produce returns from investments in the equity markets by taking long and short positions in stocks and stock indexes (through the use of derivatives or through a position in an ETF). Relative value strategies encompass a wide range of investment techniques that are intended to profit from pricing inefficiencies. Event driven strategies generally invest in securities of companies undergoing significant corporate events. Global macro strategies generally focus on macroeconomic opportunities across numerous markets and investments. In addition, the debt securities in which the Fund may invest may have variable or fixed interest rates, may be of any maturity or credit rating, and may include sovereign debt, high yield ("junk") bonds and distressed debt securities (securities of companies that are, or are about to be, involved in reorganizations, financial restructurings, or bankruptcy) and securities that are in default. The Fund may engage in active and frequent trading as part of its investment strategies.

The Fund may take long and/or short positions in a wide range of asset classes, including equities, fixed income, commodities and currencies, among others. Long positions benefit from an increase in the price of the underlying instrument or asset class, while short positions benefit from a decrease in that price. The Fund may use derivatives for hedging and non-hedging (investment) purposes, although no subadvisor is required to hedge any of the Fund's positions or to use derivatives. Such derivative investments may include futures contracts, swaps, options and currency forward contracts. As a result of the Fund's use of derivatives, the Fund may have economic leverage, which means the sum of the Fund's investment exposures through its use of

derivatives may significantly exceed the amount of assets invested in the Fund, although these exposures may vary over time. The Fund may engage in active and frequent trading as part of its investment strategies.

---

| | | |
|:---|:---|:---|
| **Strategy Allocation\*** | **Strategy Allocation\*** | **Strategy Allocation\*** |
| Based on Total Net Assets as of 11/30/22 | Based on Total Net Assets as of 11/30/22 | Based on Total Net Assets as of 11/30/22 |
| **Strategy** | **Long<br>Positions** | **Short<br>Positions** |
|  Event Driven | 21.5% | -11.9% |
|  Global Macro | 204.5% | -228.6% |
|  Long Short Equity | 35.6% | -27.2% |
|  Relative Value | 32.8% | -21.8% |
|  Conditional Risk Overlay (CRO) | 0.0% | -3.9% |
| **Total** | **294.4%** | **-293.4%** |

---

\*Figures include the effect of gross notional exposure of derivatives.

 <br> 4 Semiannual Report franklintempleton.com

------

FRANKLIN K2 ALTERNATIVE STRATEGIES FUND

---

| |
|:---|
| **Subadvisors** |
| 11/30/22 |
| **Long Short Equity** |
|  ActusRayPartners Limited<br> Chilton Investment Company, Inc. |
|  Electron Capital Partners, LLC |
|  Jennison Associates, LLC |
|  Portland Hill Asset Management Limited |
|  Wellington Management Company, LLP |
| **Relative Value** |
|  Apollo Credit Management LLC |
|  Benefit Street Partners, L.L.C. |
|  Ellington Global Asset Management, LLC |
|  Lazard Asset Management, LLC |
|  Loomis Sayles & Company, L.P. |
|  One River Asset Management, LLC |
| **Event Driven** |
|  Bardin Hill Arbitrage IC Management LP |
| P. Schoenfeld Asset Management L.P. |
| **Global Macro** |
|  BlueBay Asset Management LLP |
|  Emso Asset Management Limited |
|  Graham Capital Management, L.P. |
|  RV Capital Management Private Ltd |

---

Manager's Discussion

During the six months under review, three of the four underlying strategies in which we allocated assets hindered absolute returns, with the relative value strategy as the largest detractor, followed by global macro and long short equity. The event driven strategy marginally supported absolute returns. From an asset class perspective, long fixed income positioning was the key driver of negative performance. Exposures to equities and commodities also detracted from returns. Losses were partially offset by gains from currency hedges. The allocation percentages for each strategy are listed in the Strategy Allocation table on page 4.

In early October, the portfolio management team activated the conditional risk overlay (CRO), which is designed to help protect capital and mitigate the downside in periods of volatility. Catalysts toward re-implementation at the time included the upcoming U.S. mid-term elections, further escalation in the war in Ukraine, persistent inflation, continued macroeconomic erosion and potentially weakening corporate earnings reports, and further COVID-19 lockdowns in China. The team is aiming to hedge out some beta compared to the Standard & Poor's<sup>®</sup> 500 Index (S&P 500<sup>®</sup>) and has started to strategically build the CRO position in the portfolio. For the six

months under review, the CRO was a detractor, owing to its S&P 500<sup>®</sup> hedge amid a strong equity market rally at the end of the period.

The Fund's relative value subadvisors were Apollo Credit Management, Benefit Street Partners (BSP), Ellington Global Asset Management, Lazard Asset Management, Loomis Sayles & Company and One River Asset Management. All six subadvisors detracted from performance for the six-month period, led by Lazard, BSP and Loomis. Long exposure to fixed income drove the strategy's detraction, despite positive contribution from most asset classes, led by a significant boost from equity positioning. Within fixed income, the consumer discretionary and communication services sectors were substantial detractors. Volatility index futures also hindered returns. Conversely, currency and equity index hedges contributed positively to returns.

The Fund's global macro subadvisors were BlueBay Asset Management, Emso Asset Management, Graham Capital Management and RV Capital Management. Three of the four subadvisors—BlueBay, Emso and RV Capital—weakened Fund performance during the period, while Graham contributed positively. By asset class, fixed income and commodities exposures were the leading drivers of losses, partially offset by currency positioning. In terms of aggregate sector exposures, government bonds were a key detractor, driven by emerging markets. Positioning in real estate bonds also hindered returns. Within commodities, agriculture and livestock was the largest detracting sector, followed by energy. Conversely, currency positioning was a key positive contributor.

In July, the team onboarded and implemented a position in ActusRay Partners (ARP) within the long/short equity strategy. ARP employs an equity market neutral strategy focused on European small- and mid-cap equities. ARP aims to generate meaningful levels of alpha and strong risk-adjusted returns through an investment process it calls discretionary probabilistic investing, combining a quantitative base with a discretionary overlay to handle situations that may be problematic for a pure systematic process. The Fund reduced exposure to cash and relative value subadvisor One River at the time of adding ARP. ARP joined existing subadvisors Chilton Investment, Electron Capital Partners, Jennison Associates, Portland Hill Asset Management and Wellington Management.

Three of the six subadvisors in the long short equity strategy detracted from absolute returns. Wellington, Portland Hill and Chilton all ranked among the largest overall detractors for the

CFA<sup>®</sup> is a trademark owned by CFA Institute.

 <br> franklintempleton.com Semiannual Report 5

------

FRANKLIN K2 ALTERNATIVE STRATEGIES FUND

period. Conversely, subadvisor Electron was the largest overall positive contributor during the period. Equity exposure drove the strategy's negative performance, especially positioning in the information technology, materials and communication services sectors. Within the asset class, index hedges were a source of strength, along with positioning in utilities and industrials. Currency positioning also benefited the strategy.

The Fund's event driven strategy subadvisors were Bardin Hill Arbitrage IC Management and P. Schoenfeld Asset Management (PSAM). Bardin Hill's positive contribution was mostly offset by PSAM's negative return, leading to modest overall positive contribution from the overall strategy. By asset class, currency positioning was the leading positive contributor. Fixed income and equities positioning hindered returns. In terms of aggregate sector exposures, the top positive performance drivers were currencies, utilities and financials. Communication services and consumer discretionary were notable detractors.

During the period, in addition to adding ARP and activating the CRO, the team increased exposure to the global macro strategy and reduced exposure to the relative value strategy. In global macro, the team increased exposure to subadvisors Graham and BlueBay. Relative subadvisors Loomis and Lazard were trimmed. Within the long/short equity strategy, the team increased exposure to subadvisors Electron and Portland Hill, while subadvisor Jennison was marginally trimmed.

Thank you for your participation in Franklin K2 Alternative Strategies Fund. We look forward to continuing to serve your investment needs.

Brooks Ritchey

Co-Lead Portfolio Manager

Robert Christian

Co-Lead Portfolio Manager

Anthony Zanolla, CFA

Portfolio Manager

------

*The foregoing information reflects our analysis, opinions and portfolio holdings as of November 30, 2022, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.* 

 <br> 6 Semiannual Report franklintempleton.com

------

FRANKLIN K2 ALTERNATIVE STRATEGIES FUND

Performance Summary as of November 30, 2022

The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares. Total return reflects reinvestment of the Fund's dividends and capital gain distributions, if any, and any unrealized gains or losses. Your dividend income will vary depending on dividends or interest paid by securities in the Fund's portfolio, adjusted for operating expenses of each class. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 11/30/22<sup>1</sup> 

*Cumulative total return excludes sales charges. Average annual total return includes maximum sales charges. Sales charges will vary depending on the size of the investment and the class of share purchased. The maximum is 5.50% and the minimum is 0%.* ***Class***  ***A:*** *5.50% maximum initial sales charge;* ***Advisor Class:*** *no sales charges. For other share classes, visit* ***franklintempleton.com.*** 

---

| | | |
|:---|:---|:---|
| **Share Class** | **Cumulative<br>Total Return<sup>2</sup>** | **Average Annual<br>Total Return<sup>3</sup>** |
| **A<sup>4</sup>** |  |  |
|  6-Month | -1.43% | -6.86% |
|  1-Year | -7.89% | -12.97% |
|  5-Year | +6.42% | +0.12% |
|  Since Inception (10/11/13) | +24.94% | +1.84% |
| **Advisor** |  |  |
|  6-Month | -1.33% | -1.33% |
|  1-Year | -7.67% | -7.67% |
|  5-Year | +7.68% | +1.49% |
|  Since Inception (10/11/13) | +27.84% | +2.72% |

---

*Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to* ***franklintempleton.com*** *or call* ***(800) 342-5236.*** 

**See page 8 for Performance Summary footnotes.** 

 <br> franklintempleton.com Semiannual Report 7

------

FRANKLIN K2 ALTERNATIVE STRATEGIES FUND

**Total Annual Operating Expenses<sup>5</sup>** 

---

| | | |
|:---|:---|:---|
| **Share Class** | **With Fee<br>Waiver** | **Without Fee<br>Waiver** |
| **A** | 2.61% | 2.76% |
| **Advisor** | 2.36% | 2.51% |

---

**Each class of shares is available to certain eligible investors and has different annual fees and expenses, as described in the prospectus.** 

**All investments involve risks, including possible loss of principal. The market values of securities owned by the Fund will go up or down, sometimes rapidly or unpredictably. The Fund's performance depends on the manager's skill in selecting, overseeing and allocating Fund assets to the subadvisors. The Fund is actively managed and could experience losses if the investment manager's and subadvisors' judgment about particular investments made for the Fund's portfolio prove to be incorrect. Some subadvisors may have little or no experience managing the assets of a registered investment company. Foreign investments are subject to greater investment risk such as political, economic, credit and information risks as well as risk of currency fluctuations. Investments in derivatives involve costs and create economic leverage, which may result in significant volatility and cause the Fund to participate in losses (as well as gains) that significantly exceed the Fund's initial investment. Lower-rated or high-yield debt securities involve greater credit risk, including the possibility of default or bankruptcy. Currency management strategies could result in losses to the Fund if currencies do not perform as the investment manager or subadvisor expects. The Fund may make short sales of securities, which involves the risk that losses may exceed the original amount invested. Merger arbitrage investments risk loss if a proposed reorganization in which the Fund invests is renegotiated or terminated. Liquidity risk exists when securities have become more difficult to sell, or are unable to be sold, at the price at which they have been valued. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. The Fund's prospectus also includes a description of the main investment risks.** 

**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 may be impaired. The Fund could determine at any time that certain of the most affected securities have zero 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.** 

[1](#tx402347_2a). Gross expenses are the Fund's total annual operating expenses as of the Fund's prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns. Net expenses reflect contractual fee waivers, expense caps and/or reimbursements, which cannot be terminated prior to 9/30/23 without Board consent. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice.

2. Cumulative total return represents the change in value of an investment over the periods indicated.

3. Average annual total return represents the average annual change in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

4. Prior to 9/10/18, these shares were offered at a higher initial sales charge of 5.75%, thus actual returns (with sales charges) would have differed. Average annual total returns (with sales charges) have been restated to reflect the current maximum initial sales charge of 5.50%.

5. Figures are as stated in the Fund's current prospectus and may differ from the expense ratios disclosed in the Your Fund's Expenses and Consolidated Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.

See www.franklintempletondatasources.com for additional data provider information.

 <br> 8 Semiannual Report franklintempleton.com

------

FRANKLIN K2 ALTERNATIVE STRATEGIES FUND

Your Fund's Expenses

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including sales charges (loads) on Fund purchases and redemptions; and (2) ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other mutual funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading "Actual." In these columns the Fund's actual return, which includes the effect of Fund expenses, is used to calculate the "Ending Account Value" for each class of shares. You can estimate the expenses you paid during the period by following these steps (*of course, your account value and expenses will differ from those in this illustration*): Divide your account value by $1,000 (*if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6*). Then multiply the result by the number in the row for your class of shares under the headings "Actual" and "Expenses Paid During Period" (*if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50*). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading "Hypothetical" in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading "Hypothetical" is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Actual**<br>**(actual return after expenses)** | **Actual**<br>**(actual return after expenses)** | **Hypothetical**<br>**(5% annual return before expenses)** | **Hypothetical**<br>**(5% annual return before expenses)** | |
| <br>**Share**<br> **Class** |<br>**Beginning<br>Account<br>Value 6/01/22** | **Ending<br>Account<br>Value 11/30/22** | **Expenses<br>Paid During<br>Period<br>6/01/22–11/30/22<sup>1,2</sup>** | **Ending<br>Account<br>Value 11/30/22** | **Expenses<br>Paid During<br>Period<br>6/01/22–11/30/22<sup>1,2</sup>** |<br>**Net<br>Annualized<br>Expense<br>Ratio<sup>2</sup>** |
| **A** | $1000 | $985.70 | $12.99 | $1011.98 | $13.16 | 2.61% |
| **C** | $1000 | $982.40 | $16.70 | $1008.22 | $16.92 | 3.36% |
| **R** | $1000 | $984.70 | $14.23 | $1010.73 | $14.42 | 2.86% |
| **R6** | $1000 | $987.60 | $11.61 | $1013.39 | $11.76 | 2.33% |
| **Advisor** | $1000 | $986.70 | $11.75 | $1013.24 | $11.91 | 2.36% |

---

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/365 to reflect the one-half year period.

2. Reflects expenses after fee waivers and expense reimbursements. Does not include acquired fund fees and expenses.

 <br> franklintempleton.com Semiannual Report 9

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Consolidated Financial Highlights

**Franklin K2 Alternative Strategies Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** |
| | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Class A** |  |  |  |  |  |  |
| **Per share operating performance** <br> (for a share outstanding throughout the period) |  |  |  |  |  |  |
|  Net asset value, beginning of period | $11.16 | $12.46 | $11.19 | $11.28 | $11.38 | $11.14 |
| Income from investment operations<sup>a</sup>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>b</sup> | 0.03 | (0.06) | (0.08) | (0.03) | 0.04 | 0.01 |
| &nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | (0.19) | (0.68) | 1.45 | 0.02 | 0.11 | 0.38 |
|  Total from investment operations | (0.16) | (0.74) | 1.37 | (0.01) | 0.15 | 0.39 |
| Less distributions from: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income |  | (0.06) |  | (0.07) |  | (0.15) |
| &nbsp;&nbsp;&nbsp; Net realized gains |  | (0.50) | (0.10) | (0.01) | (0.25) |  |
|  Total distributions |  | (0.56) | (0.10) | (0.08) | (0.25) | (0.15) |
|  Net asset value, end of period | $11.00 | $11.16 | $12.46 | $11.19 | $11.28 | $11.38 |
|  Total return<sup>c</sup> | (1.43)% | (6.25)% | 12.25% | (0.15)% | 1.35% | 3.57% |
| **Ratios to average net assets<sup>d</sup>** |  |  |  |  |  |  |
|  Expenses before waiver, payments by affiliates and expense reduction<sup>e</sup> | 2.77% | 2.75% | 2.82% | 2.58% | 2.73% | 2.81% |
|  Expenses net of waiver, payments by affiliates and expense reduction<sup>e</sup> | 2.61% <sup>f</sup> | 2.60% <sup>f</sup> | 2.64% | 2.40% | 2.56% | 2.59% |
|  Expenses incurred in connection with securities sold short | 0.41% | 0.40% | 0.44% | 0.20% | 0.36% | 0.39% |
|  Net investment income (loss) | 0.61% | (0.49)% | (0.67)% | (0.25)% | 0.36% | 0.06% |
| **Supplemental data** |  |  |  |  |  |  |
|  Net assets, end of period (000's) | $87352 | $94580 | $102138 | $90205 | $104452 | $119214 |
|  Portfolio turnover rate | 95.08% | 177.61% | 236.64% | 271.51% | 235.47% | 234.77% |

---

<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(g).

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

 <br> 10 Semiannual Report \| The accompanying notes are an integral part of these consolidated financial statements. franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** |
| | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Class C** |  |  |  |  |  |  |
| **Per share operating performance** <br> (for a share outstanding throughout the period) |  |  |  |  |  |  |
|  Net asset value, beginning of period | $10.80 | $12.11 | $10.95 | $11.05 | $11.25 | $11.00 |
| Income from investment operations<sup>a</sup>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment (loss)<sup>b</sup> | (0.01) | (0.15) | (0.15) | (0.11) | (0.05) | (0.08) |
| &nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | (0.19) | (0.66) | 1.41 | 0.02 | 0.10 | 0.39 |
|  Total from investment operations | (0.20) | (0.81) | 1.26 | (0.09) | 0.05 | 0.31 |
| Less distributions from: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment (loss) |  |  |  |  |  | (0.06) |
| &nbsp;&nbsp;&nbsp; Net realized gains |  | (0.50) | (0.10) | (0.01) | (0.25) |  |
|  Total distributions |  | (0.50) | (0.10) | (0.01) | (0.25) | (0.06) |
|  Net asset value, end of period | $10.60 | $10.80 | $12.11 | $10.95 | $11.05 | $11.25 |
|  Total return<sup>c</sup> | (1.76)% | (7.06)% | 11.51% | (0.85)% | 0.56% | 2.82% |
| **Ratios to average net assets<sup>d</sup>** |  |  |  |  |  |  |
|  Expenses before waiver, payments by affiliates and expense reduction<sup>e</sup> | 3.52% | 3.50% | 3.54% | 3.33% | 3.48% | 3.56% |
|  Expenses net of waiver, payments by affiliates and expense reduction<sup>e</sup> | 3.36% <sup>f</sup> | 3.35% <sup>f</sup> | 3.36% | 3.15% | 3.31% | 3.34% |
|  Expenses incurred in connection with securities sold short | 0.41% | 0.40% | 0.44% | 0.20% | 0.36% | 0.39% |
|  Net investment income (loss) | (0.14)% | (1.24)% | (1.39)% | (1.00)% | (0.39)% | (0.69)% |
| **Supplemental data** |  |  |  |  |  |  |
|  Net assets, end of period (000's) | $20518 | $24486 | $31541 | $36043 | $44897 | $53196 |
|  Portfolio turnover rate | 95.08% | 177.61% | 236.64% | 271.51% | 235.47% | 234.77% |

---

<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(g).

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

 <br> franklintempleton.com The accompanying notes are an integral part of these consolidated financial statements. \| Semiannual Report 11

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** |
| | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Class R** |  |  |  |  |  |  |
| **Per share operating performance** <br> (for a share outstanding throughout the period) |  |  |  |  |  |  |
|  Net asset value, beginning of period | $11.13 | $12.44 | $11.20 | $11.28 | $11.42 | $11.17 |
| Income from investment operations<sup>a</sup>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>b</sup> | 0.01 | (0.08) | (0.11) | (0.06) | 0.02 | (0.02) |
| &nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | (0.19) | (0.68) | 1.45 | 0.02 | 0.09 | 0.39 |
|  Total from investment operations | (0.18) | (0.76) | 1.34 | (0.04) | 0.11 | 0.37 |
| Less distributions from: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income |  | (0.05) |  | (0.03) |  | (0.12) |
| &nbsp;&nbsp;&nbsp; Net realized gains |  | (0.50) | (0.10) | (0.01) | (0.25) |  |
|  Total distributions |  | (0.55) | (0.10) | (0.04) | (0.25) | (0.12) |
|  Net asset value, end of period | $10.95 | $11.13 | $12.44 | $11.20 | $11.28 | $11.42 |
|  Total return<sup>c</sup> | (1.53)% | (6.50)% | 11.97% | (0.39)% | 1.08% | 3.28% |
| **Ratios to average net assets<sup>d</sup>** |  |  |  |  |  |  |
|  Expenses before waiver, payments by affiliates and expense reduction<sup>e</sup> | 3.03% | 3.04% | 3.06% | 2.83% | 2.98% | 3.06% |
|  Expenses net of waiver, payments by affiliates and expense reduction<sup>e</sup> | 2.86% <sup>f</sup> | 2.85% <sup>f</sup> | 2.88% | 2.65% | 2.81% | 2.84% |
|  Expenses incurred in connection with securities sold short | 0.41% | 0.40% | 0.44% | 0.20% | 0.36% | 0.39% |
|  Net investment income (loss) | 0.36% | (0.78)% | (0.91)% | (0.50)% | 0.11% | (0.19)% |
| **Supplemental data** |  |  |  |  |  |  |
|  Net assets, end of period (000's) | $376 | $811 | $840 | $884 | $844 | $648 |
|  Portfolio turnover rate | 95.08% | 177.61% | 236.64% | 271.51% | 235.47% | 234.77% |

---

<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(g).

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

 <br> 12 Semiannual Report \| The accompanying notes are an integral part of these consolidated financial statements. franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** |
| | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Class R6** |  |  |  |  |  |  |
| **Per share operating performance** <br> (for a share outstanding throughout the period) |  |  |  |  |  |  |
|  Net asset value, beginning of period | $11.27 | $12.58 | $11.25 | $11.34 | $11.41 | $11.17 |
| Income from investment operations<sup>a</sup>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income<sup>b</sup> | 0.05 | (0.02) | (0.04) | 0.01 | 0.08 | 0.03 |
| &nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | (0.20) | (0.69) | 1.47 | 0.02 | 0.10 | 0.40 |
|  Total from investment operations | (0.15) | (0.71) | 1.43 | 0.03 | 0.18 | 0.43 |
| Less distributions from: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income |  | (0.10) |  | (0.11) |  | (0.19) |
| &nbsp;&nbsp;&nbsp; Net realized gains |  | (0.50) | (0.10) | (0.01) | (0.25) |  |
|  Total distributions |  | (0.60) | (0.10) | (0.12) | (0.25) | (0.19) |
|  Net asset value, end of period | $11.12 | $11.27 | $12.58 | $11.25 | $11.34 | $11.41 |
|  Total return<sup>c</sup> | (1.24)% | (6.05)% | 12.61% | 0.27% | 1.70% | 3.83% |
| **Ratios to average net assets<sup>d</sup>** |  |  |  |  |  |  |
|  Expenses before waiver, payments by affiliates and expense reduction<sup>e</sup> | 2.48% | 2.44% | 2.50% | 2.26% | 2.41% | 2.46% |
|  Expenses net of waiver, payments by affiliates and expense reduction<sup>e</sup> | 2.33% <sup>f</sup> | 2.32% <sup>f</sup> | 2.32% | 2.07% | 2.23% | 2.24% |
|  Expenses incurred in connection with securities sold short | 0.41% | 0.40% | 0.44% | 0.20% | 0.36% | 0.39% |
|  Net investment income (loss) | 0.94% | (0.18)% | (0.35)% | 0.08% | 0.69% | 0.41% |
| **Supplemental data** |  |  |  |  |  |  |
|  Net assets, end of period (000's) | $51283 | $47851 | $27471 | $15537 | $42842 | $31805 |
|  Portfolio turnover rate | 95.08% | 177.61% | 236.64% | 271.51% | 235.47% | 234.77% |

---

<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(g).

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

 <br> franklintempleton.com The accompanying notes are an integral part of these consolidated financial statements. \| Semiannual Report 13

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** |
| | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Advisor Class** |  |  |  |  |  |  |
| **Per share operating performance** <br> (for a share outstanding throughout the period) |  |  |  |  |  |  |
|  Net asset value, beginning of period | $11.24 | $12.55 | $11.23 | $11.33 | $11.40 | $11.16 |
| Income from investment operations<sup>a</sup>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income<sup>b</sup> | 0.05 | (0.03) | (0.05) | — <sup>c</sup> | 0.07 | 0.04 |
| &nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | (0.19) | (0.69) | 1.47 | 0.01 | 0.11 | 0.38 |
|  Total from investment operations | (0.14) | (0.72) | 1.42 | 0.01 | 0.18 | 0.42 |
| Less distributions from: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income |  | (0.09) |  | (0.10) |  | (0.18) |
| &nbsp;&nbsp;&nbsp; Net realized gains |  | (0.50) | (0.10) | (0.01) | (0.25) |  |
|  Total distributions |  | (0.59) | (0.10) | (0.11) | (0.25) | (0.18) |
|  Net asset value, end of period | $11.10 | $11.24 | $12.55 | $11.23 | $11.33 | $11.40 |
|  Total return<sup>d</sup> | (1.33)% | (6.05)% | 12.55% | 0.19% | 1.61% | 3.75% |
| **Ratios to average net assets<sup>e</sup>** |  |  |  |  |  |  |
|  Expenses before waiver, payments by affiliates and expense reduction<sup>f</sup> | 2.52% | 2.50% | 2.57% | 2.33% | 2.48% | 2.56% |
|  Expenses net of waiver, payments by affiliates and expense reduction<sup>f</sup> | 2.36% <sup>g</sup> | 2.35% <sup>g</sup> | 2.39% | 2.15% | 2.31% | 2.34% |
|  Expenses incurred in connection with securities sold short | 0.41% | 0.40% | 0.44% | 0.20% | 0.36% | 0.39% |
|  Net investment income (loss) | 0.86% | (0.24)% | (0.42)% | — <sup>h</sup> | 0.61% | 0.31% |
| **Supplemental data** |  |  |  |  |  |  |
|  Net assets, end of period (000's) | $857028 | $1099387 | $1152105 | $977094 | $1046252 | $896278 |
|  Portfolio turnover rate | 95.08% | 177.61% | 236.64% | 271.51% | 235.47% | 234.77% |

---

<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>Amount rounds to less than $0.01.

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

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

<sup>f</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(g).

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

<sup>h</sup>Amount rounds to less than 0.01%.

 <br> 14 Semiannual Report \| The accompanying notes are an integral part of these consolidated financial statements. franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Consolidated Schedule of Investments, November 30, 2022 (unaudited)

**Franklin K2 Alternative Strategies Fund** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Shares/<br>Warrants/**<br> **Rights** | **Value** |
|  | **Common Stocks and Other Equity Interests 37.2%** | **Common Stocks and Other Equity Interests 37.2%** | **Common Stocks and Other Equity Interests 37.2%** | **Common Stocks and Other Equity Interests 37.2%** |
|  | **Aerospace & Defense 0.0%<sup>†</sup>** | **Aerospace & Defense 0.0%<sup>†</sup>** | **Aerospace & Defense 0.0%<sup>†</sup>** | **Aerospace & Defense 0.0%<sup>†</sup>** |
| a | Aerojet Rocketdyne Holdings Inc. | United States | 3233 | $168116 |
|  | Lockheed Martin Corp. | United States | 42 | 20378 |
| a | Satellogic Inc., 1/25/27, wts. | United States | 2058 | 613 |
|  |  |  |  | 189107 |
|  | **Air Freight & Logistics 0.4%** | **Air Freight & Logistics 0.4%** | **Air Freight & Logistics 0.4%** | **Air Freight & Logistics 0.4%** |
| a,b | Atlas Air Worldwide Holdings Inc. | United States | 37682 | 3797215 |
|  | United Parcel Service Inc., B | United States | 76 | 14420 |
|  |  |  |  | 3811635 |
|  | **Auto Components 0.1%** | **Auto Components 0.1%** | **Auto Components 0.1%** | **Auto Components 0.1%** |
| a,c | Luminar Technologies Inc. | United States | 12104 | 92717 |
| a | Mobileye Global Inc., A | Israel | 35152 | 1002183 |
|  |  |  |  | 1094900 |
|  | **Automobiles 0.0%<sup>†</sup>** | **Automobiles 0.0%<sup>†</sup>** | **Automobiles 0.0%<sup>†</sup>** | **Automobiles 0.0%<sup>†</sup>** |
| a,c | Lucid Group Inc. | United States | 1930 | 19570 |
|  | **Banks 0.1%** | **Banks 0.1%** | **Banks 0.1%** | **Banks 0.1%** |
| b | First Citizens Bancshares Inc., A | United States | 606 | 494775 |
| b | First Horizon Corp. | United States | 13552 | 336767 |
|  |  |  |  | 831542 |
|  | **Beverages 0.4%** | **Beverages 0.4%** | **Beverages 0.4%** | **Beverages 0.4%** |
| d | The Coca-Cola Co. | United States | 190 | 12086 |
|  | Davide Campari-Milano NV | Italy | 188850 | 1990348 |
| a,b | Monster Beverage Corp. | United States | 12950 | 1332037 |
| b | PepsiCo Inc. | United States | 5439 | 1008989 |
|  |  |  |  | 4343460 |
|  | **Biotechnology 1.3%** | **Biotechnology 1.3%** | **Biotechnology 1.3%** | **Biotechnology 1.3%** |
|  | AbbVie Inc. | United States | 4980 | 802676 |
| a | Altimmune Inc. | United States | 3282 | 32656 |
| a,b | Apellis Pharmaceuticals Inc. | United States | 10543 | 526412 |
| a | Arcutis Biotherapeutics Inc. | United States | 5238 | 90251 |
| a | Argenx SE, ADR | Netherlands | 1732 | 689284 |
| a | Aveo Pharmaceuticals Inc. | United States | 103572 | 1548401 |
| a | Biohaven Ltd. | United States | 17900 | 283178 |
| a,b | BioMarin Pharmaceutical Inc. | United States | 5347 | 539940 |
| a,c | Celldex Therapeutics Inc. | United States | 5168 | 191681 |
| a | Horizon Therapeutics PLC | United States | 14447 | 1448890 |
| a | Immunogen Inc. | United States | 26932 | 139777 |
| a | Intercept Pharmaceuticals Inc. | United States | 41037 | 611862 |
| a,c | Karyopharm Therapeutics Inc. | United States | 1000 | 5290 |
| a,c | Madrigal Pharmaceuticals Inc. | United States | 792 | 55527 |
| a | Myovant Sciences Ltd. | United States | 142259 | 3821077 |
| a | Neurocrine Biosciences Inc. | United States | 1792 | 227691 |
| a | Seagen Inc. | United States | 1884 | 228699 |
| a,c | Seres Therapeutics Inc. | United States | 4646 | 30199 |
| a | Syndax Pharmaceuticals Inc. | United States | 6980 | 167241 |
| a | Vaxcyte Inc. | United States | 7655 | 352589 |
| a | Vertex Pharmaceuticals Inc. | United States | 2980 | 942872 |
|  |  |  |  | 12736193 |
|  | **Capital Markets 0.6%** | **Capital Markets 0.6%** | **Capital Markets 0.6%** | **Capital Markets 0.6%** |
| e | Amundi SA, 144A | France | 26558 | 1494425 |
|  | BlackRock Inc., A | United States | 21 | 15036 |

---

 <br> franklintempleton.com Semiannual Report 15

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin 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) |
|  | **Capital Markets** (continued) | **Capital Markets** (continued) | **Capital Markets** (continued) | **Capital Markets** (continued) |
|  | The Blackstone Group Inc., A | United States | 5368 | 491333 |
|  | Cowen Inc., A | United States | 65590 | 2535709 |
| b | Moody's Corp. | United States | 4812 | 1435275 |
|  | Morgan Stanley | United States | 123 | 11448 |
|  |  |  |  | 5983226 |
|  | **Chemicals 0.6%** | **Chemicals 0.6%** | **Chemicals 0.6%** | **Chemicals 0.6%** |
| a,c | Amyris Inc. | United States | 13900 | 24047 |
| a | Danimer Scientific Inc. | United States | 1700 | 4522 |
|  | The Sherwin-Williams Co. | United States | 24064 | 5996267 |
| a | Tronox Holdings PLC, A | United States | 24406 | 344857 |
|  |  |  |  | 6369693 |
|  | **Commercial Services & Supplies 1.2%** | **Commercial Services & Supplies 1.2%** | **Commercial Services & Supplies 1.2%** | **Commercial Services & Supplies 1.2%** |
| e | Biffa PLC, 144A | United Kingdom | 177644 | 873551 |
| b | Cintas Corp. | United States | 6225 | 2874580 |
| a,b | Digital Transformation Opportunities Corp., A | United States | 39182 | 389469 |
| a | Digital Transformation Opportunities Corp., A, 3/31/28, wts. | United States | 9795 | 882 |
|  | Homeserve PLC | United Kingdom | 225582 | 3230112 |
| a | Mason Industrial Technology Inc., A | United States | 15593 | 155306 |
| b | Republic Services Inc., A | United States | 30305 | 4221183 |
| a | Shapeways Holdings Inc., 10/31/26, wts. | United States | 13286 | 399 |
|  |  |  |  | 11745482 |
|  | **Communications Equipment 0.1%** | **Communications Equipment 0.1%** | **Communications Equipment 0.1%** | **Communications Equipment 0.1%** |
| a | Arista Networks Inc. | United States | 5590 | 778687 |
|  | Cisco Systems Inc. | United States | 139 | 6911 |
| a | Riverbed Technology Inc. | United States | 5404 | 1378 |
|  |  |  |  | 786976 |
|  | **Construction & Engineering 1.4%** | **Construction & Engineering 1.4%** | **Construction & Engineering 1.4%** | **Construction & Engineering 1.4%** |
| b | AECOM | United States | 29117 | 2474945 |
| a,b | Mastec Inc. | United States | 69171 | 6282802 |
|  | MDU Resources Group Inc. | United States | 5224 | 164504 |
|  | Quanta Services Inc. | United States | 32706 | 4901975 |
|  |  |  |  | 13824226 |
|  | **Construction Materials 0.0%<sup>†</sup>** | **Construction Materials 0.0%<sup>†</sup>** | **Construction Materials 0.0%<sup>†</sup>** | **Construction Materials 0.0%<sup>†</sup>** |
| a | Cemex SAB de CV, ADR | Mexico | 27529 | 125808 |
|  | **Containers & Packaging 0.5%** | **Containers & Packaging 0.5%** | **Containers & Packaging 0.5%** | **Containers & Packaging 0.5%** |
|  | Ball Corp. | United States | 89473 | 5017646 |
|  | Packaging Corp. of America | United States | 45 | 6115 |
|  |  |  |  | 5023761 |
|  | **Distributors 0.2%** | **Distributors 0.2%** | **Distributors 0.2%** | **Distributors 0.2%** |
|  | Pool Corp. | United States | 6485 | 2136224 |
|  | **Diversified Financial Services 2.6%** | **Diversified Financial Services 2.6%** | **Diversified Financial Services 2.6%** | **Diversified Financial Services 2.6%** |
| a | 7GC & Co. Holdings Inc., A, 12/31/26, wts. | United States | 3244 | 65 |
| a | Accelerate Acquisition Corp., A | United States | 8174 | 82312 |
| a | Aequi Acquisition Corp., A | United States | 13355 | 131814 |
| a | Aequi Acquisition Corp., A, 11/30/27, wts. | United States | 490 | 27 |
| a | African Gold Acquisition Corp., A, 3/13/28, wts. | United States | 4750 | 95 |
| a | Agile Growth Corp., A, 12/31/27, wts. | United States | 1303 | 17 |
| a | Ahren Acquisition Corp., A | Cayman Islands | 51027 | 519965 |
| a | Altimeter Growth Corp. 2, A | United States | 6603 | 66162 |

---

 <br> 16 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin 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) |
|  | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) |
| a | Angel Pond Holdings Corp., A | United States | 7260 | $69551 |
| a | Anthemis Digital Acquisitions I Corp. | United States | 17623 | 180195 |
| a | Anzu Special Acquisition Corp. I, A | United States | 1839 | 18372 |
| a | Apollo Strategic Growth Capital II, A | United States | 8845 | 88541 |
| a | Apollo Strategic Growth Capital II, A, 12/31/27, wts. | United States | 5294 | 318 |
| a | APx Acquisition Corp. I | Mexico | 13835 | 141670 |
| a | Ares Acquisition Corp., A | United States | 5799 | 58106 |
| a | Ares Acquisition Corp., A, 12/31/27, wts. | United States | 11095 | 833 |
| a | Ascendant Digital Acquisition Corp. III, A | United States | 4732 | 48503 |
| a | Athena Consumer Acquisition Corp., A | United States | 26388 | 270477 |
| a | Athena Consumer Acquisition Corp., A, 7/31/28, wts. | United States | 13194 | 1597 |
| a,b | Athena Technology Acquisition Corp. II, A | United States | 61944 | 621298 |
| a | Athena Technology Acquisition Corp. II, A, 10/17/28, wts. | United States | 19317 | 386 |
| a,b | Atlantic Coastal Acquisition Corp., A | United States | 16329 | 162800 |
| a | Atlantic Coastal Acquisition Corp., A, 12/31/27, wts. | United States | 5443 | 381 |
| a,b | Atlas Crest Investment Corp. II, A | United States | 18050 | 182125 |
| a | Atlas Crest Investment Corp. II, A, 2/28/26, wts. | United States | 3584 | 1 |
| a | Austerlitz Acquisition Corp. I, A, 2/19/26, wts. | United States | 3545 | 10 |
| a | Austerlitz Acquisition Corp. II, A, 12/31/27, wts. | United States | 30317 | 30 |
| a | B Riley Principal 250 Merger Corp., A, 12/31/27, wts. | United States | 2651 | 78 |
| a | Berkshire Hathaway Inc., B | United States | 4276 | 1362334 |
| a | Blue Whale Acquisition Corp. I, A, 7/09/23, wts. | United Arab Emirates | 1005 | 171 |
| a,b | Broadscale Acquisition Corp., A | United States | 12221 | 122821 |
| a | Capitalworks Emerging Markets Acquisition Corp., A | United States | 15474 | 158763 |
| a | Capitalworks Emerging Markets Acquisition Corp., A, 4/27/28, wts. | United States | 7737 | 290 |
| a,b | Carney Technology Acquisition Corp. II, A | United States | 12636 | 126992 |
| a | Carney Technology Acquisition Corp. II, A, 11/30/27, wts. | United States | 5876 | 238 |
| a | CC Neuberger Principal Holdings III | United States | 4164 | 41887 |
| a | CC Neuberger Principal Holdings III, 12/31/27, wts. | United States | 6916 | 692 |
| a,b | Churchill Capital Corp. V, A | United States | 6430 | 64493 |
| a | Churchill Capital Corp. VI, A | United States | 2693 | 26850 |
| a | Churchill Capital Corp. VII, A | United States | 26516 | 264894 |
| a,b | CIIG Capital Partners II Inc., A | United States | 10448 | 105211 |
| a | Clarim Acquisition Corp., A | United States | 50724 | 510284 |
| a | Clarim Acquisition Corp., A, 12/31/27, wts. | United States | 13108 | 19 |
| a,b | Class Acceleration Corp., A | United States | 13473 | 135000 |
| a | Climate Real Impact Solutions II Acquisition Corp., A | United States | 563 | 5653 |
| a | Climate Real Impact Solutions II Acquisition Corp., A, 12/31/27, wts. | United States | 112 | 1 |
| a | Colicity Inc., A | United States | 37960 | 381498 |
| a | Colicity Inc., A, 12/31/27, wts. | United States | 4313 | 4 |
| a | Colonnade Acquisition Corp. II, 12/31/27, wts. | United States | 13654 | 819 |
| a,b | Concord Acquisition Corp. II, A | United States | 79080 | 778938 |
| a | Concord Acquisition Corp. III, A | United States | 9774 | 99157 |
| a,b | Conyers Park III Acquisition Corp., A | United States | 8071 | 79499 |
| a | Corner Growth Acquisition Corp., A | United States | 22818 | 229549 |
| a | Corner Growth Acquisition Corp., A, 3/01/23, wts. | United States | 5737 | 61 |
| a | Corner Growth Acquisition Corp., A, 12/31/27, wts. | United States | 7606 | 229 |
| a | Crixus Bh3 Acquisition Co., A | United States | 30353 | 305503 |
| a | Crown PropTech Acquisitions, 12/31/27, wts. | United States | 12844 | 128 |
| a | Crypto 1 Acquisition Corp., A | United States | 7736 | 78404 |
| a | Crystal Peak Acquisition, A | Netherlands | 6767 | 66655 |
| a | Crystal Peak Acquisition, A, 6/22/26, wts. | Netherlands | 2725 | 1363 |
| a | Deep Lake Capital Acquisition Corp. | United States | 2067 | 20794 |

---

 <br> franklintempleton.com Semiannual Report 17

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin 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) |
|  | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) |
| a | DHC Acquisition Corp., A, 12/31/27, wts. | United States | 241 | $2 |
| a,b | dMY Technology Group Inc. VI | United States | 26930 | 267954 |
| a | Dragoneer Growth Opportunities Corp. III, A | United States | 57467 | 566050 |
| a,c | Elliott Opportunity II Corp., A | United States | 56350 | 562373 |
| a | Elliott Opportunity II Corp., A, 2/19/23, wts. | United States | 9039 | 1243 |
| a | Energy Transition Partners BV | Netherlands | 3372 | 34124 |
| a | Energy Transition Partners BV, 7/16/26, wts. | Netherlands | 1124 | 568 |
| a | Enterprise 4.0 Technology Acquisition Corp. | United States | 16406 | 167833 |
| a | Enterprise 4.0 Technology Acquisition Corp., 9/24/23, wts. | United States | 8203 | 164 |
| a | ESM Acquisition Corp., A | United States | 8367 | 83921 |
| a,b | Fast Acquisition Corp. II, A, 3/16/26, wts. | United States | 3606 | 2421 |
| a | Fifth Wall Acquisition Corp. III, A | United States | 5283 | 52830 |
| a | Figure Acquisition Corp. I, A, 12/31/27, wts. | United States | 1176 | 24 |
| a,b | Fintech Acquisition Corp. VI, A | United States | 36924 | 371455 |
| a,b | Fintech Acquisition Corp. VI, A, 12/31/27, wts. | United States | 9902 | 4 |
| a | Fintech Evolution Acquisition Group, A | United States | 17597 | 176322 |
| a | Fintech Evolution Acquisition Group, A, 3/31/28, wts. | United States | 5865 | 229 |
| a | First Reserve Sustainable Growth Corp., A | United States | 22062 | 220399 |
| a | First Reserve Sustainable Growth Corp., A, 12/31/27, wts. | United States | 8090 | 163 |
| a | Flame Acquisition Corp., A, 12/31/28, wts. | United States | 10165 | 8132 |
| a | Focus Impact Acquisition Corp., A | United States | 13236 | 133750 |
| a | Focus Impact Acquisition Corp., A, 4/23/23, wts. | United States | 6618 | 356 |
| a | Forest Road Acquisition Corp. II, A | United States | 822 | 8191 |
| a | Fortress Capital Acquisition Corp., A | United States | 9805 | 98638 |
| a | Fortress Capital Acquisition Corp., A, 12/31/27, wts. | United States | 12102 | 341 |
| a | Forum Merger IV Corp., A | United States | 563 | 5613 |
| a | Forum Merger IV Corp., A, 12/31/27, wts. | United States | 704 | 16 |
| a | FTAC Athena Acquisition Corp., A | United States | 28460 | 285738 |
| a | FTAC Hera Acquisition Corp., A | United States | 35780 | 358873 |
| a,b | FTAC Parnassus Acquisition Corp., A | United States | 49016 | 488199 |
| a | FTAC Zeus Acquisition Corp., A | United States | 6342 | 63769 |
| a,b | Fusion Acquisition Corp. II, A | United States | 14727 | 146534 |
| a,b | Fusion Acquisition Corp. II, A, 12/31/27, wts. | United States | 5297 | 5 |
| a | G Squared Ascend I Inc., A | United States | 10807 | 108611 |
| a | G Squared Ascend I Inc., A, 12/31/27, wts. | United States | 1114 | 112 |
| a | Glenfarne Merger Corp., A, 12/31/27, wts. | United States | 323 | 1 |
| a | Global Partner Acquisition Corp. II, A | United States | 17700 | 178151 |
| a | Global Partner Acquisition Corp. II, A, 12/31/27, wts. | United States | 2950 | 82 |
| a,b | Gores Holdings VII Inc., A | United States | 107070 | 1067488 |
| a | Gores Holdings VII Inc., A, 12/31/27, wts. | United States | 2103 | 10 |
| a,b | Gores Holdings VIII Inc., A | United States | 30157 | 300062 |
| a,b | Gores Holdings VIII Inc., A, 12/31/27, wts. | United States | 1116 | 1027 |
| a,b | Gores Technology Partners II Inc., A | United States | 25954 | 259003 |
| a | Gores Technology Partners II Inc., A, 12/31/27, wts. | United States | 232 | 1 |
| a,b | Gores Technology Partners Inc., A | United States | 23123 | 230319 |
| a,b | Gores Technology Partners Inc., A, 12/31/27, wts. | United States | 1971 | 9 |
| a | Group Nine Acquisition Corp., A | United States | 22173 | 222617 |
| a | Growth For Good Acquisition Corp., Contingent Value, rts., 6/14/23 | United States | 5118 | 256 |
| a,b | Healthcare Services Acquisition Corp., A | United States | 3074 | 30832 |
| a | Healthcare Services Acquisition Corp., A, 12/31/27, wts. | United States | 4019 | 121 |
| a | Hedosophia European Growth | United Kingdom | 35835 | 363802 |
| a | Hedosophia European Growth, 5/13/27, wts. | United Kingdom | 11638 | 242 |
| a | Innovative International Acquisition Corp., A | United States | 13172 | 135276 |
| a | Investcorp Europe Acquistion Corp. I, A | United States | 40934 | 419164 |
| a | Investcorp Europe Acqusition Corp. I, A, 11/23/28, wts. | United States | 9717 | 539 |

---

 <br> 18 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin 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) |
|  | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) |
| a | Itiquira Acquisition Corp. | United States | 361 | $3626 |
| a | Jackson Acquisition Co., A, 12/31/28, wts. | United States | 2966 | 115 |
| a | Jaws Juggernaut Acquisition Corp., A | United States | 6381 | 63714 |
| a | Jaws Juggernaut Acquisition Corp., A, 2/12/26, wts. | United States | 4284 | 665 |
| a | Jaws Mustang Acquisition Corp., A | United States | 6135 | 61657 |
| a | Jaws Mustang Acquisition Corp., A, 1/30/26, wts. | United States | 6663 | 666 |
| a | Juniper II Corp., A | United States | 11402 | 116072 |
| a | Kensington Capital Acquisition Corp. V, A | United States | 22622 | 229387 |
| a | Khosla Ventures Acquisition Co., A | United States | 19523 | 194450 |
| a,b | Khosla Ventures Acquisition Co. III, A | United States | 23001 | 229090 |
| a,b | KKR Acquisition Holdings I Corp., A | United States | 10052 | 101023 |
| a | Landcadia Holdings IV Inc., A | United States | 22893 | 229502 |
| a | Landcadia Holdings IV Inc., A, 3/29/28, wts. | United States | 1171 | 141 |
| a | Lazard Growth Acquisition Corp. I | United States | 10470 | 105014 |
| a | LDH Growth Corp. I, A, 12/31/28, wts. | United States | 97 | 6 |
| a | Lead Edge Growth Opportunities Ltd., A, 12/31/28, wts. | United States | 1175 | 71 |
| a | Learn CW Investment Corp., A | United States | 19726 | 197852 |
| a | Learn CW Investment Corp., A, 12/31/28, wts. | United States | 9863 | 823 |
| a | Legato Merger Corp. II | United States | 3958 | 39857 |
| a | Lerer Hippeau Acquisition Corp., A | United States | 10961 | 110158 |
| a | LF Capital Acquisition Corp. II, A | United States | 13246 | 134712 |
| a | Live Oak Crestview Climate Acquisition Corp., A, 3/12/26, wts. | United States | 452 | 105 |
| a | Live Oak Mobility Acquisition Corp., A | United States | 1366 | 13592 |
| a,b | Longview Acquisition Corp. II, A | United States | 14811 | 148702 |
| a | Longview Acquisition Corp. II, A, 5/10/26, wts. | United States | 1355 | 108 |
| a | M3-Brigade Acquisition II Corp., A, 12/31/27, wts. | United States | 7608 | 845 |
| a | Marlin Technology Corp., A | United States | 9915 | 99943 |
| a | MDH Acquisition Corp., A, 2/02/28, wts. | United States | 1198 | 5 |
| a | Motive Capital Corp. II, A | United States | 17352 | 176296 |
| a | Motive Capital Corp. II, A, 5/15/28, wts. | United States | 5384 | 269 |
| a | The Music Acquisition Corp., A, 2/05/28, wts. | United States | 2681 |  |
| a | Nightdragon Acquisition Corp., A | United States | 21996 | 220180 |
| a | Nightdragon Acquisition Corp., A, 12/31/27, wts. | United States | 4399 | 44 |
| a | North Atlantic Acquisition Corp., A | United States | 6495 | 65340 |
| a | Northern Star Investment Corp. II, A, 1/31/28, wts. | United States | 3083 | 93 |
| a | Northern Star Investment Corp. IV, A | United States | 14136 | 141077 |
| a | Obotech Acquisition SE, A | Luxembourg | 4205 | 42751 |
| a | Obotech Acquisition SE, A, 4/30/26, wts. | Luxembourg | 1401 | 146 |
| a | One Equity Partners Open Water I Corp., A | United States | 2269 | 22985 |
| a | One Equity Partners Open Water I Corp., A, 12/31/27, wts. | United States | 756 |  |
| a | Orion Biotech Opportunities Corp., A | United States | 16960 | 169600 |
| a | Orion Biotech Opportunities Corp., A, 12/31/27, wts. | United States | 3392 | 68 |
| a | Pathfinder Acquisition Corp., A | United States | 27835 | 277654 |
| a | Pathfinder Acquisition Corp., A, 12/31/27, wts. | United States | 5567 | 1172 |
| a | Pegasus Acquisition Co. Europe BV, A | Netherlands | 119812 | 1216563 |
| a | Pegasus Acquisition Co. Europe BV, A, 4/27/26, wts. | Netherlands | 29604 | 6161 |
| a,b | Periphas Capital Partnering Corp., A | United States | 10736 | 268937 |
| a,f | Pershing Square Tontine Holdings Ltd., A | United States | 42829 |  |
| a | Pine Technology Acquisition Corp., A, 3/31/28, wts. | United States | 3876 | 194 |
| a | Pioneer Merger Corp., A, 12/31/27, wts. | United States | 16710 | 224 |
| a | Pontem Corp., A | United States | 16446 | 165118 |
| a | Pontem Corp., A, 12/31/27, wts. | United States | 4749 | 373 |
| a,b | Post Holdings Partnering Corp., A | United States | 12717 | 125009 |
| a,c | Primavera Capital Acquisition Corp., A | Hong Kong | 3048 | 30556 |
| a | Primavera Capital Acquisition Corp., A, 1/19/26, wts. | Hong Kong | 1524 | 316 |

---

 <br> franklintempleton.com Semiannual Report 19

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin 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) |
|  | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) |
| a | RCF Acquisition Corp., A | United States | 12616 | $128683 |
| a | Rice Acquisition Corp. II, A, 3/12/26, wts. | United States | 3294 | 889 |
| a | Rigel Resource Acquisition Corp., A | United States | 8142 | 83048 |
| a | Rigel Resource Acquisition Corp., A, 4/19/23, wts. | United States | 4071 | 459 |
| a | RMG Acquisition Corp. III, A | United States | 37968 | 380412 |
| a | Rosecliff Acquisition Corp. I, A | United States | 59628 | 597473 |
| a,b | Rosecliff Acquisition Corp. I, A, 12/31/27, wts. | United States | 19875 | 582 |
| a,b | RXR Acquisition Corp., A | United States | 9640 | 96882 |
| a | Science Strategic Acquisition Corp. Alpha, A | United States | 5442 | 54665 |
| a | ScION Tech Growth I, A | United Kingdom | 3306 | 33258 |
| a | SCP & Co. Healthcare Acquisition Co., A, 1/27/28, wts. | United States | 1482 | 2 |
| a | Screaming Eagle Acquisition Corp., A | United States | 96744 | 954863 |
| a | Screaming Eagle Acquisition Corp., A, 12/15/27, wts. | United States | 20384 | 5504 |
| a | Sculptor Acquisition Corp. I, A | United States | 14028 | 142665 |
| a | Sculptor Acquisition Corp. I, A, 4/15/28, wts. | United States | 7014 | 421 |
| a,b | Simon Property Group Acquisition Holdings Inc., A | United States | 31630 | 318198 |
| a | Slam Corp., A | United States | 24487 | 245482 |
| a | Slam Corp., A, 12/31/27, wts. | United States | 7928 | 755 |
| a | Social Capital Suvretta Holdings Corp. II, A | United States | 14142 | 141137 |
| a | Social Capital Suvretta Holdings Corp. IV, A | United States | 27104 | 270227 |
| a,b | Social Leverage Acquisition Corp. I, A | United States | 59180 | 594482 |
| a | Southport Acquisition Corp., 5/24/28, wts. | United States | 4946 | 247 |
| a | Spindletop Health Acquisition Corp., A | United States | 11406 | 116626 |
| a | Spindletop Health Acquisition Corp., A, 12/31/28, wts. | United States | 5703 | 14 |
| a | Spree Acquisition Corp. 1 Ltd., 12/22/28, wts. | Israel | 3069 | 92 |
| a | StoneBridge Acquisition Corp. | United States | 3244 | 33056 |
| a | Supernova Partners Acquisition Co. III Ltd., A, 3/31/27, wts. | United States | 6587 | 165 |
| a | Sustainable Development Acquisition I Corp. | United States | 8363 | 83797 |
| a | SVF Investment Corp., A | United States | 16643 | 167262 |
| a | SVF Investment Corp. 2, A | United States | 9817 | 98465 |
| a | Target Global Acquisition I Corp., A, 12/31/27, wts. | Israel | 3516 | 264 |
| a | TB SA Acquisition Corp., A | United States | 22005 | 220490 |
| a | TB SA Acquisition Corp., A, 3/25/28, wts. | United States | 7335 | 238 |
| a | TCW Special Purpose Acquisition Corp., A, 12/31/28, wts. | United States | 2088 | 1 |
| a | Tech And Energy Transition Corp., A | United States | 102 | 1015 |
| a | Teract SA, 11/16/25, wts. | France | 3920 | 82 |
| a,b | Thunder Bridge Capital Partners IV Inc., A | United States | 12385 | 121621 |
| a | Tishman Speyer Innovation Corp. II, A | United States | 1653 | 16646 |
| a | TKB Critical Technologies 1 | United States | 10059 | 103155 |
| a | TLG Acquisition One Corp., A | United States | 9876 | 99451 |
| a | TPG Pace Beneficial II Corp., A | United States | 16740 | 164554 |
| a,b | Twelve Seas Investment Co. II, A | United States | 4888 | 48782 |
| a | Twelve Seas Investment Co. II, A, 3/02/28, wts. | United States | 1629 | 18 |
| a | Twin Ridge Capital Acquisition Corp., A | United States | 7511 | 75335 |
| a | two, A | United States | 9851 | 98707 |
| a | USHG Acquisition Corp., A | United States | 28448 | 285333 |
| a | Vahanna Tech Edge Acquisition I Corp., A | United States | 7916 | 80822 |
| a | Vahanna Tech Edge Acquisition I Corp., A, 11/30/28, wts. | United States | 3958 | 40 |
| a | Valor Latitude Acquisition Corp., A | United States | 16723 | 167230 |
| a | Valor Latitude Acquisition Corp., A, 12/31/28, wts. | United States | 5574 | 335 |
| a | Vector Acquisition Corp. II, A | United States | 8707 | 87244 |
| a | Velocity Acquisition Corp., A | United States | 6445 | 64772 |
| a | VMG Consumer Acquisition Corp., A | United States | 2210 | 22365 |
| a | VMG Consumer Acquisition Corp., A, 7/03/23, wts. | United States | 1105 | 44 |
| a | VPC Impact Acquisition Holdings II Inc., A | United States | 6544 | 65702 |

---

 <br> 20 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin 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) |
|  | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) |
| a | Warburg Pincus Capital Corp. I-A, 12/31/27, wts. | Cayman Islands | 249 |  |
| a | Zimmer Energy Transition Acquisition Corp., A, 5/14/23, wts. | United States | 2381 | 307 |
|  |  |  |  | 26326273 |
|  | **Diversified Telecommunication Services 0.2%** | **Diversified Telecommunication Services 0.2%** | **Diversified Telecommunication Services 0.2%** | **Diversified Telecommunication Services 0.2%** |
| a | Telecom Italia SpA | Italy | 276000 | 60215 |
| a | TELUS Corp. | Canada | 43877 | 934199 |
|  | Vantage Towers AG | Germany | 25500 | 874300 |
|  |  |  |  | 1868714 |
|  | **Electric 0.0%<sup>†</sup>** | **Electric 0.0%<sup>†</sup>** | **Electric 0.0%<sup>†</sup>** | **Electric 0.0%<sup>†</sup>** |
|  | Cia Energetica de Minas Gerais, ADR | Brazil | 102641 | 224784 |
|  | **Electric Utilities 2.9%** | **Electric Utilities 2.9%** | **Electric Utilities 2.9%** | **Electric Utilities 2.9%** |
|  | Constellation Energy Corp. | United States | 94436 | 9077188 |
|  | Duke Energy Corp. | United States | 87 | 8694 |
| b | Edison International | United States | 39851 | 2656468 |
|  | ENEL SpA | Italy | 291394 | 1572009 |
| a | Energy Harbor Corp. | United States | 85350 | 6486600 |
| d | NextEra Energy Inc. | United States | 78224 | 6625573 |
|  | Origin Energy Ltd. | Australia | 40752 | 219187 |
| a,b | PG&E Corp. | United States | 137157 | 2153365 |
|  | PNM Resources Inc. | United States | 11755 | 575995 |
|  |  |  |  | 29375079 |
|  | **Electrical Equipment 1.7%** | **Electrical Equipment 1.7%** | **Electrical Equipment 1.7%** | **Electrical Equipment 1.7%** |
| a,b | Array Technologies Inc. | United States | 216632 | 4536274 |
|  | Emerson Electric Co. | United States | 74 | 7087 |
| a,b | Enovix Corp. | United States | 170408 | 2223824 |
| a,b | Fluence Energy Inc., A | United States | 167071 | 2870280 |
| a,b | Shoals Technologies Group Inc., A | United States | 61930 | 1794112 |
| a,b | Stem Inc. | United States | 203031 | 2653615 |
| a,b | Sunrun Inc. | United States | 84962 | 2768062 |
|  |  |  |  | 16853254 |
|  | **Electronic Equipment, Instruments & Components 0.4%** | **Electronic Equipment, Instruments & Components 0.4%** | **Electronic Equipment, Instruments & Components 0.4%** | **Electronic Equipment, Instruments & Components 0.4%** |
| a | Coherent Corp. | United States | 7158 | 262484 |
| a | Flex Ltd. | United States | 138088 | 3035174 |
|  | Hollysys Automation Technologies Ltd. | China | 70884 | 1212117 |
|  |  |  |  | 4509775 |
|  | **Energy Equipment & Services 0.0%<sup>†</sup>** | **Energy Equipment & Services 0.0%<sup>†</sup>** | **Energy Equipment & Services 0.0%<sup>†</sup>** | **Energy Equipment & Services 0.0%<sup>†</sup>** |
| a | Nabors Industries Ltd. | United States | 226 | 35783 |
|  | **Entertainment 0.5%** | **Entertainment 0.5%** | **Entertainment 0.5%** | **Entertainment 0.5%** |
| d | Activision Blizzard Inc. | United States | 61069 | 4516053 |
| a | Manchester United PLC, A | United Kingdom | 1913 | 42277 |
| a,b | Netflix Inc. | United States | 2646 | 808432 |
|  |  |  |  | 5366762 |
|  | **Equity Real Estate Investment Trusts (REITs) 0.1%** | **Equity Real Estate Investment Trusts (REITs) 0.1%** | **Equity Real Estate Investment Trusts (REITs) 0.1%** | **Equity Real Estate Investment Trusts (REITs) 0.1%** |
|  | American Tower Corp. | United States | 32 | 7080 |
| a | Braemar Hotels & Resorts Inc. | United States | 47 | 173 |
|  | Store Capital Corp. | United States | 33310 | 1062589 |
|  |  |  |  | 1069842 |

---

 <br> franklintempleton.com Semiannual Report 21

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin 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) |
|  | **Food & Staples Retailing 0.6%** | **Food & Staples Retailing 0.6%** | **Food & Staples Retailing 0.6%** | **Food & Staples Retailing 0.6%** |
| b | Costco Wholesale Corp. | United States | 10179 | $5489026 |
|  | Walgreens Boots Alliance Inc. | United States | 5823 | 241654 |
|  | Walmart Inc. | United States | 114 | 17376 |
|  |  |  |  | 5748056 |
|  | **Food Products 0.1%** | **Food Products 0.1%** | **Food Products 0.1%** | **Food Products 0.1%** |
| a | Benson Hill Inc., 12/24/25, wts. | United States | 5669 | 1928 |
|  | Chocoladefabriken Lindt & Spruengli AG | Switzerland | 60 | 631159 |
|  | The Hershey Co. | United States | 2826 | 664590 |
|  |  |  |  | 1297677 |
|  | **Gas Utilities 0.2%** | **Gas Utilities 0.2%** | **Gas Utilities 0.2%** | **Gas Utilities 0.2%** |
| b | South Jersey Industries Inc. | United States | 71932 | 2496040 |
|  | **Health Care Equipment & Supplies 1.2%** | **Health Care Equipment & Supplies 1.2%** | **Health Care Equipment & Supplies 1.2%** | **Health Care Equipment & Supplies 1.2%** |
|  | Abbott Laboratories | United States | 8796 | 946274 |
| a | ABIOMED Inc. | United States | 15036 | 5680450 |
| a | Apollo Endosurgery Inc. | United States | 43210 | 437717 |
| a | Axonics Inc. | United States | 1757 | 120319 |
| c | CONMED Corp. | United States | 3248 | 269097 |
|  | The Cooper Cos. Inc. | United States | 1109 | 350832 |
| a | Cutera Inc. | United States | 8797 | 418561 |
| a | DexCom Inc. | United States | 3200 | 372096 |
| a | Envista Holdings Corp. | United States | 7574 | 258425 |
| a | Hologic Inc. | United States | 3457 | 263285 |
| a | Inspire Medical Systems Inc. | United States | 243 | 58702 |
| a | Intuitive Surgical Inc. | United States | 2130 | 575931 |
| a | LivaNova PLC | United States | 8092 | 448054 |
| a | Seaspine Holdings Corp. | United States | 100381 | 751854 |
| a | Shockwave Medical Inc. | United States | 730 | 185128 |
| a | Silk Road Medical Inc. | United States | 2292 | 122049 |
| b | Stryker Corp. | United States | 3143 | 735116 |
|  |  |  |  | 11993890 |
|  | **Health Care Providers & Services 0.4%** | **Health Care Providers & Services 0.4%** | **Health Care Providers & Services 0.4%** | **Health Care Providers & Services 0.4%** |
| a | Centene Corp. | United States | 1966 | 171140 |
| a | Davita Inc. | United States | 1655 | 122023 |
|  | Elevance Health Inc. | United States | 23 | 12257 |
|  | Humana Inc. | United States | 1463 | 804504 |
| a | LHC Group Inc. | United States | 3882 | 634358 |
| a,c | Oak Street Health Inc. | United States | 2973 | 64276 |
|  | UnitedHealth Group Inc. | United States | 3884 | 2127500 |
|  |  |  |  | 3936058 |
|  | **Health Care Technology 0.1%** | **Health Care Technology 0.1%** | **Health Care Technology 0.1%** | **Health Care Technology 0.1%** |
| a | Evolent Health Inc., A | United States | 14804 | 426207 |
| a | Phreesia Inc. | United States | 6608 | 183835 |
|  |  |  |  | 610042 |
|  | **Hotels, Restaurants & Leisure 0.3%** | **Hotels, Restaurants & Leisure 0.3%** | **Hotels, Restaurants & Leisure 0.3%** | **Hotels, Restaurants & Leisure 0.3%** |
| a,b | Airbnb Inc., A | United States | 14007 | 1430675 |
| a | Autogrill SpA | Italy | 125924 | 847430 |
|  | Domino's Pizza Inc. | United States | 1481 | 575709 |
| a | F45 Training Holdings Inc. | United States | 72042 | 193793 |
| a | HomeToGo SE, 12/31/25, wts. | Luxembourg | 716 | 75 |
| a | Sonder Holdings Inc., 1/31/28, wts. | United States | 3948 | 661 |

---

 <br> 22 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Shares/<br>Warrants/**<br> **Rights** | **Value** | **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) | **Common Stocks and Other Equity Interests** (continued) |
|  | **Hotels, Restaurants & Leisure** (continued) | **Hotels, Restaurants & Leisure** (continued) | **Hotels, Restaurants & Leisure** (continued) | **Hotels, Restaurants & Leisure** (continued) | **Hotels, Restaurants & Leisure** (continued) |
|  | Starbucks Corp. | United States | 142 | $| 14512 |
|  |  |  |  |  | 3062855 |
|  | **Household Durables 0.2%** | **Household Durables 0.2%** | **Household Durables 0.2%** | **Household Durables 0.2%** | **Household Durables 0.2%** |
| a | Skyline Champion Corp. | United States | 33780 |  | 1756222 |
|  | **Household Products 0.0%<sup>†</sup>** | **Household Products 0.0%<sup>†</sup>** | **Household Products 0.0%<sup>†</sup>** | **Household Products 0.0%<sup>†</sup>** | **Household Products 0.0%<sup>†</sup>** |
|  | The Procter & Gamble Co. | United States | 126 |  | 18794 |
|  | **Independent Power & Renewable Electricity Producers 2.0%** | **Independent Power & Renewable Electricity Producers 2.0%** | **Independent Power & Renewable Electricity Producers 2.0%** | **Independent Power & Renewable Electricity Producers 2.0%** | **Independent Power & Renewable Electricity Producers 2.0%** |
|  | The AES Corp. | United States | 402763 |  | 11647906 |
|  | Clearway Energy Inc., A | United States | 6911 |  | 227510 |
| b | Clearway Energy Inc., C | United States | 36540 |  | 1294978 |
| b | NextEra Energy Partners LP | United States | 40638 |  | 3270953 |
| a,b | Sunnova Energy International Inc. | United States | 154010 |  | 3516048 |
|  |  |  |  |  | 19957395 |
|  | **Industrial Conglomerates 0.3%** | **Industrial Conglomerates 0.3%** | **Industrial Conglomerates 0.3%** | **Industrial Conglomerates 0.3%** | **Industrial Conglomerates 0.3%** |
| b | General Electric Co. | United States | 26182 |  | 2250866 |
|  | Toshiba Corp. | Japan | 9747 |  | 332424 |
|  |  |  |  |  | 2583290 |
|  | **Insurance 0.3%** | **Insurance 0.3%** | **Insurance 0.3%** | **Insurance 0.3%** | **Insurance 0.3%** |
|  | Brown & Brown Inc. | United States | 20972 |  | 1249722 |
| a,c | Trupanion Inc. | United States | 20041 |  | 1047543 |
| b | W.R. Berkley Corp. | United States | 15022 |  | 1145878 |
|  |  |  |  |  | 3443143 |
|  | **Interactive Media & Services 0.8%** | **Interactive Media & Services 0.8%** | **Interactive Media & Services 0.8%** | **Interactive Media & Services 0.8%** | **Interactive Media & Services 0.8%** |
| a,b | Alphabet Inc., A | United States | 38890 |  | 3927501 |
| a | Alphabet Inc., C | United States | 9007 |  | 913760 |
| a,c | Bumble Inc., A | United States | 15072 |  | 367154 |
| a,b | Meta Platforms Inc., A | United States | 13417 |  | 1584548 |
| a | Pinterest Inc., A | United States | 25313 |  | 643456 |
| a | Snap Inc., A | United States | 23310 |  | 240326 |
| a | Wejo Group Ltd., 11/18/26, wts. | United States | 3488 |  | 276 |
|  |  |  |  |  | 7677021 |
|  | **Internet & Direct Marketing Retail 0.6%** |  |  |  |  |
| a,b | Alibaba Group Holding Ltd., ADR | China | 9003 |  | 788303 |
| a,b | Amazon.com Inc. | United States | 20784 |  | 2006487 |
| a | Cazoo Group Ltd., 8/26/26, wts. | Cayman Islands | 19178 |  | 230 |
| a,e | Deliveroo PLC, A, 144A | United Kingdom | 65088 |  | 68437 |
| b | eBay Inc. | United States | 15591 |  | 708455 |
| a | Etsy Inc. | United States | 5909 |  | 780520 |
|  | JD.Com Inc., A | China | 1162 |  | 33173 |
| a,c | Lands' End Inc. | United States | 24862 |  | 287405 |
|  | Prosus NV | China | 20562 |  | 1345553 |
| a | Wayfair Inc., A | United States | 2100 |  | 76944 |
|  |  |  |  |  | 6095507 |
|  | **IT Services 2.4%** |  |  |  |  |
| a | 21Vianet Group Inc., ADR | China | 57703 |  | 289092 |
|  | Accenture PLC, A | United States | 32 |  | 9630 |
|  | Be Shaping The Future SpA | Italy | 316310 |  | 1147867 |
| a | Block Inc., A | United States | 22997 |  | 1558507 |
| a | Core Scientific Inc., 1/19/27, wts. | United States | 1383 |  | 55 |

---

 <br> franklintempleton.com Semiannual Report 23

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Shares/<br>Warrants/**<br> **Rights** | **Value** | **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) | **Common Stocks and Other Equity Interests** (continued) |
|  | **IT Services** (continued) | | | | |
| a | Evo Payments Inc., A | United States | 75706 | $| 2552049 |
| a | FleetCor Technologies Inc. | United States | 4676 |  | 917431 |
|  | Genpact Ltd. | United States | 14684 |  | 677079 |
|  | Global Payments Inc. | United States | 13272 |  | 1377368 |
|  | Link Administration Holdings Ltd. | Australia | 272940 |  | 664057 |
| b | MasterCard Inc., A | United States | 10400 |  | 3706560 |
| a | MoneyGram International Inc. | United States | 62430 |  | 681736 |
| a | MongoDB Inc., A | United States | 2937 |  | 448451 |
| a,b | PayPal Holdings Inc. | United States | 22027 |  | 1727137 |
| a | Pushpay Holdings Ltd. | New Zealand | 289958 |  | 235775 |
| a | Snowflake Inc., A | United States | 5462 |  | 780520 |
|  | Switch Inc., A | United States | 189400 |  | 6486950 |
| a | VeriSign Inc. | United States | 2156 |  | 430790 |
| a | WEX Inc. | United States | 5275 |  | 892213 |
| a | Wise PLC, A | United Kingdom | 35887 |  | 283594 |
|  |  |  |  |  | 24866861 |
|  | **Leisure Products 0.0%<sup>†</sup>** |  |  |  |  |
| a | Tonies SE, A, 4/30/26, wts. | Germany | 41605 |  | 12988 |
|  | **Life Sciences Tools & Services 1.4%** |  |  |  |  |
|  | Agilent Technologies Inc. | United States | 1151 |  | 178382 |
| a,b | BIO-RAD Laboratories Inc., A | United States | 531 |  | 220211 |
|  | Danaher Corp., W | United States | 8487 |  | 2320431 |
|  | Eurofins Scientific SE | Luxembourg | 23357 |  | 1621346 |
|  | Gerresheimer AG | Germany | 24633 |  | 1818258 |
|  | Lonza Group AG | Switzerland | 99 |  | 52083 |
| a | Mettler-Toledo International Inc. | United States | 3596 |  | 5284538 |
| a | QIAGEN NV | United States | 6629 |  | 328401 |
| b | Thermo Fisher Scientific Inc. | United States | 3800 |  | 2128835 |
|  |  |  |  |  | 13952485 |
|  | **Machinery 0.1%** |  |  |  |  |
| a | Berkshire Grey Inc., 7/21/26, wts. | United States | 23782 |  | 2102 |
|  | Cummins Inc. | United States | 41 |  | 10298 |
|  | Deere & Co. | United States | 29 |  | 12789 |
|  | Fanuc Corp. | Japan | 6856 |  | 1030875 |
| a | Fast Radius Inc., 2/11/28, wts. | United States | 2678 |  | 26 |
| a,c | Nikola Corp. | United States | 33653 |  | 88171 |
|  |  |  |  |  | 1144261 |
|  | **Marine 0.4%** | **Marine 0.4%** | **Marine 0.4%** | **Marine 0.4%** | **Marine 0.4%** |
| a | Atlas Corp. | Canada | 262312 |  | 4031735 |
|  | **Media 0.8%** | **Media 0.8%** | **Media 0.8%** | **Media 0.8%** | **Media 0.8%** |
| a | Altice USA Inc., A | United States | 10775 |  | 49134 |
| a | Clear Channel Outdoor Holdings Inc., A | United States | 159666 |  | 180423 |
|  | Comcast Corp., A | United States | 159 |  | 5826 |
| a | Innovid Corp., A, 12/31/27, wts. | Israel | 69 |  | 25 |
|  | Shaw Communications Inc., B | Canada | 205750 |  | 5615041 |
|  | Stroeer SE & Co. KGaA | Germany | 42879 |  | 1970070 |
|  | Tegna Inc. | United States | 34020 |  | 671555 |
|  |  |  |  |  | 8492074 |
|  | **Metals & Mining 0.7%** | **Metals & Mining 0.7%** | **Metals & Mining 0.7%** | **Metals & Mining 0.7%** | **Metals & Mining 0.7%** |
| a | Iamgold Corp. | Burkina Faso | 395656 |  | 811095 |
| d | Newmont Corp. | United States | 244 |  | 11583 |

---

 <br> 24 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Shares/<br>Warrants/**<br> **Rights** | **Value** | **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) | **Common Stocks and Other Equity Interests** (continued) |
|  | **Metals & Mining** (continued) | **Metals & Mining** (continued) | **Metals & Mining** (continued) | **Metals & Mining** (continued) | **Metals & Mining** (continued) |
|  | Oz Minerals Ltd. | Australia | 54425 | $| 1022669 |
| a | Turquoise Hill Resources Ltd. | Mongolia | 61772 |  | 1943965 |
|  | Yamana Gold Inc. | Canada | 702012 |  | 3832985 |
|  |  |  |  |  | 7622297 |
|  | **Oil, Gas & Consumable Fuels 0.7%** | **Oil, Gas & Consumable Fuels 0.7%** | **Oil, Gas & Consumable Fuels 0.7%** | **Oil, Gas & Consumable Fuels 0.7%** | **Oil, Gas & Consumable Fuels 0.7%** |
| a,b | Archaea Energy Inc., A | United States | 81559 |  | 2115640 |
| a | Battalion Oil Corp. | United States | 3790 |  | 42903 |
|  | California Resources Corp. | United States | 3913 |  | 177572 |
| b | Chesapeake Energy Corp. | United States | 11749 |  | 1216022 |
| a | Denbury Inc. | United States | 5500 |  | 493680 |
|  | Devon Energy Corp. | United States | 48 |  | 3289 |
| f,g | Gazprom PJSC | Russia | 615160 |  |  |
| b | New Fortress Energy Inc., A | United States | 36240 |  | 1844616 |
|  | Pioneer Natural Resources Co. | United States | 58 |  | 13687 |
|  | Suncor Energy Inc. | Canada | 5802 |  | 190776 |
|  | Targa Resources Corp. | United States | 6090 |  | 453035 |
| a,b | Tellurian Inc. | United States | 351914 |  | 946649 |
| d | The Williams Cos. Inc. | United States | 297 |  | 10306 |
|  |  |  |  |  | 7508175 |
|  | **Personal Products 0.4%** | **Personal Products 0.4%** | **Personal Products 0.4%** | **Personal Products 0.4%** | **Personal Products 0.4%** |
|  | L'Oreal SA | France | 8681 |  | 3260203 |
| a | Unilever PLC | United Kingdom | 13815 |  | 692826 |
|  |  |  |  |  | 3953029 |
|  | **Pharmaceuticals 0.7%** | **Pharmaceuticals 0.7%** | **Pharmaceuticals 0.7%** | **Pharmaceuticals 0.7%** | **Pharmaceuticals 0.7%** |
| b | AstraZeneca PLC, ADR | United Kingdom | 10591 |  | 719870 |
| a | Avadel Pharmaceuticals PLC, ADR | United States | 17800 |  | 163226 |
|  | Bristol-Myers Squibb Co. | United States | 115 |  | 9232 |
| a | Catalent Inc. | United States | 1068 |  | 53539 |
|  | Eli Lilly & Co., W | United States | 4506 |  | 1672086 |
|  | Hikma Pharmaceuticals PLC | Jordan | 8547 |  | 156635 |
|  | Johnson & Johnson | United States | 108 |  | 19224 |
| b | Merck & Co. Inc. | United States | 12935 |  | 1424403 |
| b | Novo Nordisk AS, ADR | Denmark | 5661 |  | 705361 |
| a | Omeros Corp. | United States | 3700 |  | 7918 |
| a | Pliant Therapeutics Inc. | United States | 4177 |  | 76773 |
|  | Roche Holding AG | United States | 3773 |  | 1232352 |
| a | Verona Pharma PLC, ADR | United Kingdom | 1553 |  | 20034 |
|  | Zoetis Inc., A | United States | 2946 |  | 454096 |
| a,f | Zogenix Inc., Contingent Value, rts., 12/31/23 | United States | 38902 |  | 26453 |
|  |  |  |  |  | 6741202 |
|  | **Professional Services 0.0%<sup>†</sup>** |  |  |  |  |
|  | SGS SA | Switzerland | 84 |  | 197356 |
|  | **Real Estate Management & Development 0.0%<sup>†</sup>** |  |  |  |  |
| a | Opendoor Technologies Inc. | United States | 11300 |  | 20905 |
| a | Redfin Corp. | United States | 4100 |  | 21976 |
|  |  |  |  |  | 42881 |
|  | **Road & Rail 1.7%** |  |  |  |  |
|  | Canadian Pacific Railway Ltd. | Canada | 65384 |  | 5355604 |
|  | CSX Corp. | United States | 71754 |  | 2345638 |
| b,f | Hertz Corp. Escrow | United States | 1982000 |  |  |

---

 <br> franklintempleton.com Semiannual Report 25

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Shares/<br>Warrants/**<br> **Rights** | **Value** | **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) | **Common Stocks and Other Equity Interests** (continued) |
|  | **Road & Rail** (continued) | | | | |
| b | Knight-Swift Transportation Holdings Inc., A | United States | 64626 | $| 3582219 |
| a | Uber Technologies Inc. | United States | 44595 |  | 1299498 |
| b | Union Pacific Corp. | United States | 20861 |  | 4535807 |
|  |  |  |  |  | 17118766 |
|  | **Semiconductors & Semiconductor Equipment 0.8%** |  |  |  |  |
| a | Advanced Micro Devices Inc. | United States | 17575 |  | 1364347 |
| b | ASML Holding NV, G | Netherlands | 1693 |  | 1029547 |
|  | Aspeed Technology Inc. | Taiwan | 7310 |  | 508278 |
|  | Broadcom Inc. | United States | 21 |  | 11572 |
|  | KLA Corp. | United States | 2979 |  | 1171194 |
|  | LAM Research Corp. | United States | 1077 |  | 508753 |
|  | Marvell Technology Inc. | United States | 41506 |  | 1930859 |
|  | Microchip Technology Inc. | United States | 147 |  | 11641 |
| b | NVIDIA Corp. | United States | 5236 |  | 886088 |
| a | ON Semiconductor Corp. | United States | 10543 |  | 792834 |
|  | Qualcomm Inc. | United States | 242 |  | 30611 |
|  | Silicon Motion Technology Corp., ADR | Taiwan | 3835 |  | 241988 |
|  |  |  |  |  | 8487712 |
|  | **Software 3.1%** |  |  |  |  |
| a | Atlassian Corp., A | United States | 8488 |  | 1116596 |
|  | Aveva Group PLC | United Kingdom | 67561 |  | 2621781 |
| a | Benefitfocus Inc. | United States | 148142 |  | 1536233 |
| a | Bill.Com Holdings Inc. | United States | 3652 |  | 439774 |
| a,b | BTRS Holdings Inc. | United States | 251704 |  | 2383637 |
| a | Ceridian HCM Holding Inc. | United States | 23589 |  | 1614431 |
| a | Datadog Inc., A | United States | 4711 |  | 357000 |
| a | Dynatrace Inc. | United States | 28386 |  | 1099957 |
| a | Elmo Software Ltd. | Australia | 144122 |  | 464692 |
| a,b | HubSpot Inc. | United States | 4499 |  | 1363332 |
|  | Infomedia Ltd. | Australia | 497543 |  | 374420 |
|  | Intuit Inc. | United States | 5443 |  | 2218512 |
| a,b | Knowbe4 Inc., A | United States | 102000 |  | 2518380 |
| a | Livevox Holdings Inc., 6/18/26, wts. | United States | 23891 |  | 6135 |
|  | Micro Focus International PLC | United Kingdom | 134447 |  | 851197 |
| b | Microsoft Corp. | United States | 22002 |  | 5613590 |
| a | Momentive Global Inc. | United States | 24628 |  | 195300 |
| a | Nearmap Ltd. | Australia | 1154748 |  | 1669815 |
| a | Palo Alto Networks Inc. | United States | 4357 |  | 740254 |
| a | Salesforce.com Inc. | United States | 3168 |  | 507672 |
|  | SAP SE | Germany | 26433 |  | 2932919 |
| a,b | ServiceNow Inc. | United States | 2409 |  | 1002867 |
|  |  |  |  |  | 31628494 |
|  | **Specialty Retail 0.7%m** | **Specialty Retail 0.7%m** | **Specialty Retail 0.7%m** | **Specialty Retail 0.7%m** | **Specialty Retail 0.7%m** |
| a | Frasers Group PLC | United Kingdom | 38301 |  | 419585 |
|  | The Home Depot Inc. | United States | 15284 |  | 4951863 |
| a,e | Watches of Switzerland Group PLC, 144A | United Kingdom | 140408 |  | 1734974 |
|  |  |  |  |  | 7106422 |
|  | **Technology Hardware, Storage & Peripherals 0.0%<sup>†</sup>** | **Technology Hardware, Storage & Peripherals 0.0%<sup>†</sup>** | **Technology Hardware, Storage & Peripherals 0.0%<sup>†</sup>** | **Technology Hardware, Storage & Peripherals 0.0%<sup>†</sup>** | **Technology Hardware, Storage & Peripherals 0.0%<sup>†</sup>** |
|  | Apple Inc. | United States | 303 |  | 44853 |
|  | **Textiles, Apparel & Luxury Goods 0.2%** | **Textiles, Apparel & Luxury Goods 0.2%** | **Textiles, Apparel & Luxury Goods 0.2%** | **Textiles, Apparel & Luxury Goods 0.2%** | **Textiles, Apparel & Luxury Goods 0.2%** |
|  | Adidas AG | Germany | 6159 |  | 793945 |

---

 <br> 26 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Shares/<br>Warrants/**<br> **Rights** | **Value** | **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) | **Common Stocks and Other Equity Interests** (continued) |
|  | **Textiles, Apparel & Luxury Goods** (continued) | **Textiles, Apparel & Luxury Goods** (continued) | **Textiles, Apparel & Luxury Goods** (continued) | **Textiles, Apparel & Luxury Goods** (continued) | **Textiles, Apparel & Luxury Goods** (continued) |
| a | Ermenegildo Zegna Holditalia SpA, 10/30/27, wts. | Italy | 2117 | $| 4234 |
|  | Hermes International | France | 948 |  | 1540765 |
|  |  |  |  |  | 2338944 |
|  | **Trading Companies & Distributors 0.4%** | **Trading Companies & Distributors 0.4%** | **Trading Companies & Distributors 0.4%** | **Trading Companies & Distributors 0.4%** | **Trading Companies & Distributors 0.4%** |
|  | Brenntag SE | Germany | 17131 |  | 1089206 |
| b | Herc Holdings Inc. | United States | 20538 |  | 2632355 |
|  | IMCD Group NV | Netherlands | 2491 |  | 368430 |
| a | United Rentals Inc. | United States | 1102 |  | 389039 |
|  |  |  |  |  | 4479030 |
|  | **Water Utilities 0.2%** | **Water Utilities 0.2%** | **Water Utilities 0.2%** | **Water Utilities 0.2%** | **Water Utilities 0.2%** |
|  | Cia de Saneamento Basico Do Estado de Sao Paulo, ADR | Brazil | 37677 |  | 435169 |
|  | Guangdong Investment Ltd. | China | 1680058 |  | 1549129 |
|  |  |  |  |  | 1984298 |
|  | **Wireless Telecommunication Services 0.1%** | **Wireless Telecommunication Services 0.1%** | **Wireless Telecommunication Services 0.1%** | **Wireless Telecommunication Services 0.1%** | **Wireless Telecommunication Services 0.1%** |
| a | T-Mobile US Inc. | United States | 1195 |  | 180995 |
| b | Vodafone Group PLC, ADR | United Kingdom | 70121 |  | 787459 |
|  |  |  |  |  | 968454 |
|  | **Total Common Stocks and Other Equity Interests<br>(Cost $306,961,854)** |  |  |  | 378050376 |
|  | **Exchange Traded Funds 1.1%** |  |  |  |  |
|  | ARK Innovation ETF | United States | 61400 |  | 2301272 |
|  | Invesco QQQ Series 1 ETF | United States | 42 |  | 12321 |
|  | iShares China Large-Cap ETF | China | 78778 |  | 2218388 |
|  | iShares Russell 2000 ETF | United States | 8100 |  | 1517697 |
|  | Utilities Select Sector SPDR Fund | United States | 73600 |  | 5257248 |
|  | **Total Exchange Traded Funds<br>(Cost $11,539,261)** |  |  |  | 11306926 |
|  | **Preferred Stocks 0.0%<sup>†</sup>** |  |  |  |  |
|  | **Communications Equipment 0.0%<sup>†</sup>** | **Communications Equipment 0.0%<sup>†</sup>** | **Communications Equipment 0.0%<sup>†</sup>** | **Communications Equipment 0.0%<sup>†</sup>** | **Communications Equipment 0.0%<sup>†</sup>** |
| a | Riverbed Technology Inc., pfd., A | United States | 3699 |  | 3699 |
|  | **Gas Utilities 0.0%<sup>†</sup>** | **Gas Utilities 0.0%<sup>†</sup>** | **Gas Utilities 0.0%<sup>†</sup>** | **Gas Utilities 0.0%<sup>†</sup>** | **Gas Utilities 0.0%<sup>†</sup>** |
| c | El Paso Energy Capital Trust I, 4.75%, pfd. | United States | 114 |  | 5227 |
|  | **Professional Services 0.0%<sup>†</sup>** | **Professional Services 0.0%<sup>†</sup>** | **Professional Services 0.0%<sup>†</sup>** | **Professional Services 0.0%<sup>†</sup>** | **Professional Services 0.0%<sup>†</sup>** |
|  | Clarivate PLC, 5.25%, pfd. | United Kingdom | 1431 |  | 61719 |
|  | **Thrifts & Mortgage Finance 0.0%<sup>†</sup>** | **Thrifts & Mortgage Finance 0.0%<sup>†</sup>** | **Thrifts & Mortgage Finance 0.0%<sup>†</sup>** | **Thrifts & Mortgage Finance 0.0%<sup>†</sup>** | **Thrifts & Mortgage Finance 0.0%<sup>†</sup>** |
|  | FHLMC, pfd., |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; O, 5.81% | United States | 17150 |  | 55995 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Z, 8.375% | United States | 8177 |  | 17989 |
|  | FNMA, pfd., |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>a</sup> O | United States | 16250 |  | 67438 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S, 8.25% | United States | 15150 |  | 35905 |
|  |  |  |  |  | 177327 |
|  | **Total Preferred Stocks (Cost $485,937)** |  |  |  | 247972 |

---

 <br> franklintempleton.com Semiannual Report 27

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** |
|  | **Convertible Bonds 11.7%** | | | | |
|  | **Aerospace & Defense 0.2%** | **Aerospace & Defense 0.2%** | **Aerospace & Defense 0.2%** | **Aerospace & Defense 0.2%** | **Aerospace & Defense 0.2%** |
|  | Kaman Corp., senior note, 3.25%, 5/01/24 | United States | 1576000 |  | $1466468 |
| e | Virgin Galactic Holdings Inc., senior note, 144A, 2.50%, 2/01/27 | United States | 335000 |  | 190783 |
|  |  |  |  |  | 1657251 |
|  | **Air Freight & Logistics 0.0%<sup>†</sup>** | **Air Freight & Logistics 0.0%<sup>†</sup>** | **Air Freight & Logistics 0.0%<sup>†</sup>** | **Air Freight & Logistics 0.0%<sup>†</sup>** | **Air Freight & Logistics 0.0%<sup>†</sup>** |
| c,e | Zto Express Cayman Inc., senior note, 144A, 1.50%, 9/01/27 | China | 276000 |  | 280416 |
|  | **Airlines 0.6%** | **Airlines 0.6%** | **Airlines 0.6%** | **Airlines 0.6%** | **Airlines 0.6%** |
| e | Air France-KLM, senior note, Reg S, 0.125%, 3/25/26 | France | 32034 | EUR | 553326 |
| c | American Airlines Group Inc., senior note, 6.50%, 7/01/25 | United States | 683000 |  | 775546 |
| e | Cathay Pacific Finance III Ltd., senior note, Reg S, 2.75%, 2/05/26 | Hong Kong | 8000000 | HKD | 1057234 |
|  | Copa Holdings SA, senior note, 4.50%, 4/15/25 | Panama | 1667000 |  | 2972261 |
| e | GOL Equity Finance SA, senior note, 144A, 3.75%, 7/15/24 | Brazil | 1277000 |  | 485899 |
|  | Jetblue Airways Corp., senior note, 0.50%, 4/01/26 | United States | 614000 |  | 463263 |
|  | Southwest Airlines Co., senior note, 1.25%, 5/01/25 | United States | 130000 |  | 169227 |
|  |  |  |  |  | 6476756 |
|  | **Auto Components 0.0%<sup>†</sup>** | **Auto Components 0.0%<sup>†</sup>** | **Auto Components 0.0%<sup>†</sup>** | **Auto Components 0.0%<sup>†</sup>** | **Auto Components 0.0%<sup>†</sup>** |
| e | Luminar Technologies Inc., senior note, 144A, 1.25%, 12/15/26 | United States | 194000 |  | 128732 |
|  | **Automobiles 0.4%** | **Automobiles 0.4%** | **Automobiles 0.4%** | **Automobiles 0.4%** | **Automobiles 0.4%** |
| e | Fisker Inc., senior note, 144A, 2.50%, 9/15/26 | United States | 1346000 |  | 699955 |
| b | Ford Motor Co., senior note, zero cpn., 3/15/26 | United States | 683000 |  | 708954 |
| b | Li Auto Inc., senior note, 0.25%, 5/01/28 | China | 1508000 |  | 1560780 |
| b,e | Lucid Group Inc., senior note, 144A, 1.25%, 12/15/26 | United States | 968000 |  | 543290 |
|  | NIO Inc., senior note, zero cpn., 2/01/26 | China | 600000 |  | 513673 |
|  |  |  |  |  | 4026652 |
|  | **Banks 0.2%** | **Banks 0.2%** | **Banks 0.2%** | **Banks 0.2%** | **Banks 0.2%** |
|  | Hope Bancorp Inc., senior bond, 2.00%, 5/15/38 | United States | 1778000 |  | 1740306 |
| e,h | Standard Chartered PLC, senior bond, Reg S, 7.75% to 8/15/27, FRN thereafter, Perpetual | United Kingdom | 200000 |  | 190838 |
|  |  |  |  |  | 1931144 |
|  | **Biotechnology 0.9%** | **Biotechnology 0.9%** | **Biotechnology 0.9%** | **Biotechnology 0.9%** | **Biotechnology 0.9%** |
|  | Apellis Pharmaceuticals Inc., senior note, 3.50%, 9/15/26 | United States | 800000 |  | 1202500 |
| e | Avid SPV LLC, senior note, 144A, 1.25%, 3/15/26 | United States | 838000 |  | 841391 |
| c | BioMarin Pharmaceutical Inc., senior sub. note, 1.25%, 5/15/27 | United States | 240000 |  | 256200 |
|  | Coherus Biosciences Inc., senior sub. note, 1.50%, 4/15/26 | United States | 1298000 |  | 895750 |
|  | Dynavax Technologies Corp., senior note, 2.50%, 5/15/26 | United States | 1530000 |  | 2160360 |
|  | Gossamer Bio Inc., senior note, 5.00%, 6/01/27 | United States | 622000 |  | 499653 |
| e | Halozyme Therapeutics Inc., senior note, 144A, 1.00%, 8/15/28 | United States | 258000 |  | 304440 |
|  | Insmed Inc., senior note, 0.75%, 6/01/28 | United States | 1302000 |  | 1034844 |
|  | Intercept Pharmaceuticals Inc., senior secured note, 3.50%, 2/15/26 | United States | 250000 |  | 265325 |
|  | Ionis Pharmaceuticals Inc., senior note, zero cpn., 4/01/26 | United States | 254000 |  | 244316 |
|  | Karyopharm Therapeutics Inc., senior note, 3.00%, 10/15/25 | United States | 855000 |  | 694030 |
| e | Pharming Group NV, senior note, Reg S, 3.00%, 1/21/25 | Netherlands | 600000 | EUR | 573787 |
|  | Travere Therapeutics Inc., senior note, 2.25%, 3/01/29 | United States | 774000 |  | 691182 |
|  |  |  |  |  | 9663778 |
|  | **Chemicals 0.1%** |  |  |  |  |
|  | Amyris Inc., senior note, 1.50%, 11/15/26 | United States | 1201000 |  | 318336 |
| e | Danimer Scientific Inc., senior note, 144A, 3.25%, 12/15/26 | United States | 551000 |  | 243051 |
|  |  |  |  |  | 561387 |
|  | **Communications Equipment 0.0%<sup>†</sup>** |  |  |  |  |
| e | Infinera Corp., senior note, 144A, 3.75%, 8/01/28 | United States | 139000 |  | 171924 |

---

 <br> 28 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** | **Value** |
|  | **Convertible Bonds** (continued) | | | | | |
|  | **Construction & Engineering 0.1%** | | | | | |
|  | Granite Construction Inc., senior note, 2.75%, 11/01/24 | United States | 574000 |  | $| 708459 |
|  | **Consumer Finance 0.3%** | | | | | |
|  | EZCORP Inc., senior note, 2.875%, 7/01/24 | United States | 1076000 |  |  | 1207272 |
| b | PRA Group Inc., senior note, 3.50%, 6/01/23 | United States | 1347000 |  |  | 1335551 |
| e | Zip Co. Ltd., senior note, Reg S, zero cpn., 4/23/28 | Australia | 800000 | AUD |  | 108600 |
|  |  |  |  |  |  | 2651423 |
|  | **Diversified Consumer Services 0.1%** |  |  |  |  |  |
|  | Affirm Holdings Inc., senior note, zero cpn., 11/15/26 | United States | 469000 |  |  | 276007 |
| e | Nexi SpA, senior note, Reg S, zero cpn., 2/24/28 | Italy | 400000 | EUR |  | 305056 |
|  |  |  |  |  |  | 581063 |
|  | **Diversified Financial Services 0.2%** |  |  |  |  |  |
| c | Lendingtree Inc., senior note, 0.50%, 7/15/25 | United States | 1862000 |  |  | 1335426 |
|  | Upstart Holdings Inc., senior note, 0.25%, 8/15/26 | United States | 872000 |  |  | 452350 |
|  |  |  |  |  |  | 1787776 |
|  | **Diversified Telecommunication Services 0.1%** |  |  |  |  |  |
| e | Match Group Financeco 2 Inc., senior note, 144A, 0.875%, 6/15/26 | United States | 763000 |  |  | 711498 |
| e | Radius Global Infrastructure Inc., senior note, 144A, 2.50%, 9/15/26 | United States | 860000 |  |  | 768252 |
|  |  |  |  |  |  | 1479750 |
|  | **Electrical Equipment 0.2%** |  |  |  |  |  |
| e | Array Technologies Inc., senior note, 144A, 1.00%, 12/01/28 | United States | 677000 |  |  | 717287 |
|  | Plug Power Inc., senior note, 3.75%, 6/01/25 | United States | 407000 |  |  | 1304638 |
|  |  |  |  |  |  | 2021925 |
|  | **Electronic Equipment, Instruments & Components 0.1%** |  |  |  |  |  |
|  | PAR Technology Corp., senior note, 1.50%, 10/15/27 | United States | 709000 |  |  | 502327 |
|  | Vishay Intertechnology Inc., senior note, 2.25%, 6/15/25 | United States | 452000 |  |  | 443231 |
|  |  |  |  |  |  | 945558 |
|  | **Energy Equipment & Services 0.1%** |  |  |  |  |  |
| b | Helix Energy Solutions Group Inc., senior note, 6.75%, 2/15/26 | United States | 1067000 |  |  | 1359145 |
|  | **Entertainment 0.3%** |  |  |  |  |  |
|  | Cinemark Holdings Inc., senior note, 4.50%, 8/15/25 | United States | 1031000 |  |  | 1238231 |
| b,e | The Marcus Corp., senior note, 144A, 5.00%, 9/15/25 | United States | 680000 |  |  | 1093950 |
| b | Sea Ltd., senior note, 0.25%, 9/15/26 | Singapore | 387000 |  |  | 290250 |
|  |  |  |  |  |  | 2622431 |
|  | **Equity Real Estate Investment Trusts (REITs) 0.2%** |  |  |  |  |  |
|  | Braemar Hotels & Resorts Inc., senior note, 4.50%, 6/01/26 | United States | 641000 |  |  | 591247 |
| c,e | Hat Holdings I LLC / Hat Holdings II LLC, senior note, 144A, zero cpn., 5/01/25 | United States | 645000 |  |  | 605388 |
| b | Pebblebrook Hotel Trust, senior note, 1.75%, 12/15/26 | United States | 1161000 |  |  | 1050705 |
|  | Summit Hotel Properties Inc., senior note, 1.50%, 2/15/26 | United States | 290000 |  |  | 266365 |
|  |  |  |  |  |  | 2513705 |
|  | **Food & Staples Retailing 0.2%** |  |  |  |  |  |
|  | The Chefs' Warehouse Inc., senior note, 1.875%, 12/01/24 | United States | 1652000 |  |  | 1842806 |
|  | **Food Products 0.0%<sup>†</sup>** | **Food Products 0.0%<sup>†</sup>** | **Food Products 0.0%<sup>†</sup>** | **Food Products 0.0%<sup>†</sup>** | **Food Products 0.0%<sup>†</sup>** | **Food Products 0.0%<sup>†</sup>** |
| e | Post Holdings Inc., senior note, 144A, 2.50%, 8/15/27 | United States | 338000 |  |  | 361998 |
|  | **Health Care Equipment & Supplies 0.4%** | **Health Care Equipment & Supplies 0.4%** | **Health Care Equipment & Supplies 0.4%** | **Health Care Equipment & Supplies 0.4%** | **Health Care Equipment & Supplies 0.4%** | **Health Care Equipment & Supplies 0.4%** |
|  | Cutera Inc., senior note,<br>2.25%, 3/15/26 | United States | 239000 |  |  | 375708 |

---

 <br> franklintempleton.com Semiannual Report 29

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** | **Value** |
|  | **Convertible Bonds** (continued) | | | | | |
|  | **Health Care Equipment & Supplies** (continued) | **Health Care Equipment & Supplies** (continued) | **Health Care Equipment & Supplies** (continued) | **Health Care Equipment & Supplies** (continued) | **Health Care Equipment & Supplies** (continued) | **Health Care Equipment & Supplies** (continued) |
|  | Cutera Inc., senior note, (continued) | Cutera Inc., senior note, (continued) | Cutera Inc., senior note, (continued) | Cutera Inc., senior note, (continued) | Cutera Inc., senior note, (continued) | Cutera Inc., senior note, (continued) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>b,e</sup> 144A, 2.25%, 6/01/28 | United States | 893000 |  | $| 1002393 |
|  | NuVasive Inc., senior note,<br>1.00%, 6/01/23 | United States | 794000 |  |  | 780601 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 3/15/25 | United States | 334000 |  |  | 287574 |
| b | Varex Imaging Corp., senior note, 4.00%, 6/01/25 | United States | 1108000 |  |  | 1338611 |
|  |  |  |  |  |  | 3784887 |
|  | **Health Care Providers & Services 0.1%** | **Health Care Providers & Services 0.1%** | **Health Care Providers & Services 0.1%** | **Health Care Providers & Services 0.1%** | **Health Care Providers & Services 0.1%** | **Health Care Providers & Services 0.1%** |
|  | Guardant Health Inc., senior note, zero cpn., 11/15/27 | United States | 50000 |  |  | 36382 |
|  | Inotiv Inc., senior note, 3.25%, 10/15/27 | United States | 587000 |  |  | 340521 |
|  | PetIQ Inc., A, senior note, 4.00%, 6/01/26 | United States | 882000 |  |  | 771438 |
|  |  |  |  |  |  | 1148341 |
|  | **Health Care Technology 0.5%** | **Health Care Technology 0.5%** | **Health Care Technology 0.5%** | **Health Care Technology 0.5%** | **Health Care Technology 0.5%** | **Health Care Technology 0.5%** |
|  | Bandwidth Inc., senior note, 0.50%, 4/01/28 | United States | 1114000 |  |  | 662384 |
| e | Bilibili Inc., Z, senior note, 144A, 0.50%, 12/01/26 | China | 65000 |  |  | 41638 |
|  | Cloudflare Inc., senior note, zero cpn., 8/15/26 | United States | 335000 |  |  | 270848 |
|  | Coupa Software Inc., senior note,<br>0.125%, 6/15/25 | United States | 625000 |  |  | 574879 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.375%, 6/15/26 | United States | 363000 |  |  | 320166 |
|  | Digitalocean Holdings Inc., senior note, zero cpn., 12/01/26 | United States | 1174000 |  |  | 845280 |
|  | Health Catalyst Inc., senior note, 2.50%, 4/15/25 | United States | 740000 |  |  | 645650 |
|  | Livongo Health Inc., senior note, 0.875%, 6/01/25 | United States | 180000 |  |  | 156330 |
| e | Nextgen Healthcare Inc., senior note, 144A, 3.75%, 11/15/27 | United States | 387000 |  |  | 420768 |
|  | Nutanix Inc., senior note, 0.25%, 10/01/27 | United States | 50000 |  |  | 44025 |
| c | Teladoc Health Inc., senior note, 1.25%, 6/01/27 | United States | 105000 |  |  | 80126 |
|  | Unity Software Inc., senior note, zero cpn., 11/15/26 | United States | 720000 |  |  | 534240 |
|  | Veritone Inc., senior note, 1.75%, 11/15/26 | United States | 800000 |  |  | 518400 |
|  |  |  |  |  |  | 5114734 |
|  | **Hotels, Restaurants & Leisure 0.3%** | **Hotels, Restaurants & Leisure 0.3%** | **Hotels, Restaurants & Leisure 0.3%** | **Hotels, Restaurants & Leisure 0.3%** | **Hotels, Restaurants & Leisure 0.3%** | **Hotels, Restaurants & Leisure 0.3%** |
| e | Carnival Corp., senior note, 144A, 5.75%, 12/01/27 | United States | 375000 |  |  | 378750 |
|  | Draftkings Holdings Inc., senior note, zero cpn., 3/15/28 | United States | 586000 |  |  | 379728 |
|  | Penn Entertainment Inc., senior note, 2.75%, 5/15/26 | United States | 25000 |  |  | 41913 |
| e | Royal Caribbean Cruises Ltd., senior note, 144A, 6.00%, 8/15/25 | United States | 1323000 |  |  | 1887898 |
|  |  |  |  |  |  | 2688289 |
|  | **Independent Power & Renewable Electricity Producers 0.1%** | **Independent Power & Renewable Electricity Producers 0.1%** | **Independent Power & Renewable Electricity Producers 0.1%** |  |  |  |
| e | Sunnova Energy International Inc., senior note, 144A, 2.625%, 2/15/28 | United States | 581000 |  |  | 533649 |
|  | **Interactive Media & Services 0.1%** | **Interactive Media & Services 0.1%** | **Interactive Media & Services 0.1%** | **Interactive Media & Services 0.1%** | **Interactive Media & Services 0.1%** | **Interactive Media & Services 0.1%** |
|  | Snap Inc., senior note,<br>zero cpn., 5/01/27 | United States | 80000 |  |  | 56200 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 144A, 0.125%, 3/01/28 | United States | 1654000 |  |  | 1120585 |
|  |  |  |  |  |  | 1176785 |
|  | **Internet & Direct Marketing Retail 1.0%** | **Internet & Direct Marketing Retail 1.0%** | **Internet & Direct Marketing Retail 1.0%** | **Internet & Direct Marketing Retail 1.0%** | **Internet & Direct Marketing Retail 1.0%** | **Internet & Direct Marketing Retail 1.0%** |
|  | Airbnb Inc., senior note, zero cpn., 3/15/26 | United States | 554000 |  |  | 466468 |
| e | Cornwall Jersey Ltd., senior note, Reg S, 0.75%, 4/16/26 | United Kingdom | 300000 | GBP |  | 231408 |
| e | Delivery Hero AG, senior note, Reg S,<br>1.50%, 1/15/28 | South Korea | 1000000 | EUR |  | 694718 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A, 1.00%, 4/30/26 | South Korea | 700000 | EUR |  | 523111 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B, 2.125%, 3/10/29 | South Korea | 500000 | EUR |  | 332040 |
|  | Etsy Inc., senior note, 0.25%, 6/15/28 | United States | 250000 |  |  | 219875 |
| c | Fiverr International Ltd., senior note, zero cpn., 11/01/25 | United States | 1125000 |  |  | 922500 |
| b | Fubotv Inc., senior note, 3.25%, 2/15/26 | United States | 341000 |  |  | 163851 |
|  | Groupon Inc., senior note, 1.125%, 3/15/26 | United States | 1144000 |  |  | 710710 |

---

 <br> 30 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** | **Value** |
|  | **Convertible Bonds** (continued) | | | | | |
|  | **Internet & Direct Marketing Retail** (continued) | **Internet & Direct Marketing Retail** (continued) | **Internet & Direct Marketing Retail** (continued) | **Internet & Direct Marketing Retail** (continued) | **Internet & Direct Marketing Retail** (continued) | **Internet & Direct Marketing Retail** (continued) |
| e | Just Eat Takeaway.com NV, senior note, Reg S,<br>1.25%, 4/30/26 | United Kingdom | 600000 | EUR | $| 489918 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B, 0.625%, 2/09/28 | United Kingdom | 1000000 | EUR |  | 707162 |
| b | Magnite Inc., senior note, 0.25%, 3/15/26 | United States | 272000 |  |  | 210077 |
|  | Okta Inc., senior note, 0.125%, 9/01/25 | United States | 323000 |  |  | 277296 |
| e | Porch Group Inc., senior note, 144A, 0.75%, 9/15/26 | United States | 1428000 |  |  | 763980 |
|  | The Realreal Inc., senior note, 1.00%, 3/01/28 | United States | 557000 |  |  | 208875 |
|  | Spotify USA Inc., senior note, zero cpn., 3/15/26 | United States | 1318000 |  |  | 1060331 |
|  | Wayfair Inc., senior note,<br>1.00%, 8/15/26 | United States | 798000 |  |  | 462042 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.625%, 10/01/25 | United States | 673000 |  |  | 435768 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 144A, 3.25%, 9/15/27 | United States | 401000 |  |  | 324409 |
| c,e | Xometry Inc., A, senior note, 144A, 1.00%, 2/01/27 | United States | 678000 |  |  | 666135 |
| c | Zillow Group Inc., senior note, 1.375%, 9/01/26 | United States | 15000 |  |  | 16597 |
|  |  |  |  |  |  | 9887271 |
|  | **IT Services 0.3%** | **IT Services 0.3%** | **IT Services 0.3%** | **IT Services 0.3%** | **IT Services 0.3%** | **IT Services 0.3%** |
|  | Mitek Systems Inc., senior note, 0.75%, 2/01/26 | United States | 933000 |  |  | 796070 |
| e | Repay Holdings Corp., A, senior note, 144A, zero cpn., 2/01/26 | United States | 1069000 |  |  | 797046 |
| b | Shift4 Payments Inc., senior note, zero cpn., 12/15/25 | United States | 903000 |  |  | 832453 |
| b | Shopify Inc., senior note, 0.125%, 11/01/25 | Canada | 800000 |  |  | 688177 |
|  |  |  |  |  |  | 3113746 |
|  | **Leisure Products 0.1%** | **Leisure Products 0.1%** | **Leisure Products 0.1%** | **Leisure Products 0.1%** | **Leisure Products 0.1%** | **Leisure Products 0.1%** |
|  | NCL Corp. Ltd.,<br>senior note, 1.125%, 2/15/27 | United States | 773000 |  |  | 590756 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup>senior note, 144A, 2.50%, 2/15/27 | United States | 644000 |  |  | 503286 |
|  | Peloton Interactive Inc., senior note, zero cpn., 2/15/26 | United States | 320000 |  |  | 227847 |
|  |  |  |  |  |  | 1321889 |
|  | **Machinery 0.3%** | **Machinery 0.3%** | **Machinery 0.3%** | **Machinery 0.3%** | **Machinery 0.3%** | **Machinery 0.3%** |
|  | Bloom Energy Corp., senior note, 2.50%, 8/15/25 | United States | 1134000 |  |  | 1651947 |
| e | Desktop Metal Inc., senior note, 144A, 6.00%, 5/15/27 | United States | 534000 |  |  | 713958 |
|  | The Greenbrier Cos. Inc., senior note, 2.875%, 4/15/28 | United States | 551000 |  |  | 517664 |
|  |  |  |  |  |  | 2883569 |
|  | **Media 0.4%** | **Media 0.4%** | **Media 0.4%** | **Media 0.4%** | **Media 0.4%** | **Media 0.4%** |
|  | Cable One Inc., senior note, zero cpn., 3/15/26 | United States | 5000 |  |  | 3840 |
|  | Dish Network Corp.,<br>senior bond, 3.375%, 8/15/26 | United States | 1279000 |  |  | 831350 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, zero cpn., 12/15/25 | United States | 569000 |  |  | 387432 |
| e | Liberty Broadband Corp., senior bond, 144A, 2.75%, 9/30/50 | United States | 650000 |  |  | 630604 |
|  | Liberty Interactive LLC,<br>senior bond, 4.00%, 11/15/29 | United States | 1448000 |  |  | 506800 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 3.75%, 2/15/30 | United States | 1969000 |  |  | 679305 |
| b,e | Liberty Media Corp., senior bond, 144A, 2.75%, 12/01/49 | United States | 1238000 |  |  | 1159387 |
| e | Techtarget Inc., senior note, 144A, zero cpn., 12/15/26 | United States | 452000 |  |  | 341260 |
|  |  |  |  |  |  | 4539978 |
|  | **Metals & Mining 0.4%** | **Metals & Mining 0.4%** | **Metals & Mining 0.4%** | **Metals & Mining 0.4%** | **Metals & Mining 0.4%** | **Metals & Mining 0.4%** |
|  | Century Aluminum Co., senior note, 2.75%, 5/01/28 | United States | 514000 |  |  | 385243 |
| b,e | Ivanhoe Mines Ltd., senior note, 144A, 2.50%, 4/15/26 | Canada | 597000 |  |  | 809817 |
| e | Lithium Americas Corp., senior note, 144A, 1.75%, 1/15/27 | Canada | 582000 |  |  | 504594 |
| e | MP Materials Corp., senior note, 144A, 0.25%, 4/01/26 | United States | 580000 |  |  | 590150 |
|  | U.S. Steel Corp., senior note, 5.00%, 11/01/26 | United States | 937000 |  |  | 1941932 |
|  |  |  |  |  |  | 4231736 |

---

 <br> franklintempleton.com Semiannual Report 31

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** |
|  | **Convertible Bonds** (continued) | | | | |
|  | **Mortgage Real Estate Investment Trusts (REITs) 0.7%** | **Mortgage Real Estate Investment Trusts (REITs) 0.7%** | **Mortgage Real Estate Investment Trusts (REITs) 0.7%** | **Mortgage Real Estate Investment Trusts (REITs) 0.7%** | **Mortgage Real Estate Investment Trusts (REITs) 0.7%** |
| e | Arbor Realty Trust Inc., senior note, 144A, 7.50%, 8/01/25 | United States | 625000 |  | $631875 |
| b | KKR Real Estate Finance Trust Inc., senior note, 6.125%, 5/15/23 | United States | 515000 |  | 511652 |
|  | PennyMac Corp., senior note,<br>5.50%, 11/01/24 | United States | 910000 |  | 813312 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>b</sup> 5.50%, 3/15/26 | United States | 1671000 |  | 1430794 |
|  | Redwood Trust Inc., senior note,<br>4.75%, 8/15/23 | United States | 2854000 |  | 2782650 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 144A, 7.75%, 6/15/27 | United States | 486000 |  | 434059 |
|  | Two Harbors Investment Corp., senior note, 6.25%, 1/15/26 | United States | 760000 |  | 657856 |
|  |  |  |  |  | 7262198 |
|  | **Personal Products 0.2%** | **Personal Products 0.2%** | **Personal Products 0.2%** | **Personal Products 0.2%** | **Personal Products 0.2%** |
| e | The Beauty Health Co., senior note, 144A, 1.25%, 10/01/26 | United States | 825000 |  | 643912 |
| b | Herbalife Nutrition Ltd., senior note, 2.625%, 3/15/24 | United States | 1203000 |  | 1100745 |
|  |  |  |  |  | 1744657 |
|  | **Pharmaceuticals 0.7%** | **Pharmaceuticals 0.7%** | **Pharmaceuticals 0.7%** | **Pharmaceuticals 0.7%** | **Pharmaceuticals 0.7%** |
|  | Aurora Cannabis Inc., senior note, 5.50%, 2/28/24 | Canada | 887000 |  | 847085 |
|  | Avadel Finance Cayman Ltd., senior note,<br>4.50%, 2/01/23 | United States | 757000 |  | 749714 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.50%, 10/02/23 | United States | 597000 |  | 631979 |
|  | Collegium Pharmaceutical Inc., senior note, 2.625%, 2/15/26 | United States | 1026000 |  | 1016808 |
| e | Innoviva Inc., senior note, 144A, 2.125%, 3/15/28 | United States | 742000 |  | 599165 |
|  | Mannkind Corp., senior note, 2.50%, 3/01/26 | United States | 1773000 |  | 1952073 |
|  | Omeros Corp., senior note, 5.25%, 2/15/26 | United States | 15000 |  | 8023 |
| c | Pacira Biosciences Inc., senior note, 0.75%, 8/01/25 | United States | 238000 |  | 225654 |
| b | Revance Therapeutics Inc., senior note, 1.75%, 2/15/27 | United States | 822000 |  | 815835 |
|  |  |  |  |  | 6846336 |
|  | **Professional Services 0.0%<sup>†</sup>** | **Professional Services 0.0%<sup>†</sup>** | **Professional Services 0.0%<sup>†</sup>** | **Professional Services 0.0%<sup>†</sup>** | **Professional Services 0.0%<sup>†</sup>** |
| c | Upwork Inc., senior note, 0.25%, 8/15/26 | United States | 549000 |  | 415895 |
|  | **Real Estate Management & Development 0.3%** | **Real Estate Management & Development 0.3%** | **Real Estate Management & Development 0.3%** | **Real Estate Management & Development 0.3%** | **Real Estate Management & Development 0.3%** |
| e | Opendoor Technologies Inc., senior note, 144A, 0.25%, 8/15/26 | United States | 2648000 |  | 1121158 |
|  | Realogy Group LLC / Realogy Co.-Issuer Corp., senior note, 0.25%, 6/15/26 | United States | 1496000 |  | 1056176 |
|  | Redfin Corp., senior note,<br>0.50%, 4/01/27 | United States | 1384000 |  | 581280 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; zero cpn., 10/15/25 | United States | 188000 |  | 113740 |
|  |  |  |  |  | 2872354 |
|  | **Road & Rail 0.0%<sup>†</sup>** | **Road & Rail 0.0%<sup>†</sup>** | **Road & Rail 0.0%<sup>†</sup>** | **Road & Rail 0.0%<sup>†</sup>** | **Road & Rail 0.0%<sup>†</sup>** |
|  | Uber Technologies Inc., senior note, zero cpn., 12/15/25 | United States | 90000 |  | 76767 |
|  | **Semiconductors & Semiconductor Equipment 0.3%** | **Semiconductors & Semiconductor Equipment 0.3%** | **Semiconductors & Semiconductor Equipment 0.3%** | **Semiconductors & Semiconductor Equipment 0.3%** | **Semiconductors & Semiconductor Equipment 0.3%** |
| e | Ams-Osram AG, senior note, Reg S, 2.125%, 11/03/27 | Austria | 1400000 | EUR | 1018696 |
|  | Veeco Instruments Inc., senior note, 3.75%, 6/01/27 | United States | 1229000 |  | 1999583 |
| e | Wolfspeed Inc., senior note, 144A, 1.875%, 12/01/29 | United States | 43000 |  | 44806 |
|  |  |  |  |  | 3063085 |
|  | **Software 0.6%** | **Software 0.6%** | **Software 0.6%** | **Software 0.6%** | **Software 0.6%** |
| e | 8x8 Inc., senior note, 144A, 4.00%, 2/01/28 | United States | 581000 |  | 472644 |
| e | Altair Engineering Inc., senior note, 144A, 1.75%, 6/15/27 | United States | 459000 |  | 431460 |
|  | Alteryx Inc., senior note, 0.50%, 8/01/24 | United States | 133000 |  | 121612 |
|  | Bentley Systems Inc., senior note, 0.375%, 7/01/27 | United States | 392000 |  | 320656 |
| e | Confluent Inc., senior note, 144A, zero cpn., 1/15/27 | United States | 710000 |  | 537825 |
| e | Dye & Durham Ltd., senior note, 144A, 3.75%, 3/01/26 | Canada | 1409000 | CAD | 809168 |
|  | Envestnet Inc., senior note, 0.75%, 8/15/25 | United States | 328000 |  | 292535 |
| b | Guidewire Software Inc., senior note, 1.25%, 3/15/25 | United States | 645000 |  | 592755 |

---

 <br> 32 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Value** | **Value** |
|  | **Convertible Bonds** (continued) | | | | |
|  | **Software** (continued) | **Software** (continued) | **Software** (continued) | **Software** (continued) | **Software** (continued) |
| b | i3 Verticals LLC, senior note, 1.00%, 2/15/25 | United States | 788000 | $| 735795 |
|  | Palo Alto Networks Inc., senior note, 0.75%, 7/01/23 | United States | 736000 |  | 1415328 |
|  | Ringcentral Inc., senior note,<br>zero cpn., 3/15/26 | United States | 65000 |  | 50602 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A, 3/01/25 | United States | 576000 |  | 495360 |
|  | Splunk Inc., senior note, 1.125%, 6/15/27 | United States | 95000 |  | 78802 |
|  |  |  |  |  | 6354542 |
|  | **Specialty Retail 0.4%** | **Specialty Retail 0.4%** | **Specialty Retail 0.4%** | **Specialty Retail 0.4%** | **Specialty Retail 0.4%** |
| c | Burlington Stores Inc., senior note, 2.25%, 4/15/25 | United States | 555000 |  | 633394 |
| b | Guess? Inc., senior note, 2.00%, 4/15/24 | United States | 1484000 |  | 1554490 |
|  | National Vision Holdings Inc., senior note, 2.50%, 5/15/25 | United States | 967000 |  | 1383390 |
| e | Shift Technologies Inc., senior note, 144A, 4.75%, 5/15/26 | United States | 1014000 |  | 152100 |
|  |  |  |  |  | 3723374 |
|  | **Transportation Infrastructure 0.2%** | **Transportation Infrastructure 0.2%** | **Transportation Infrastructure 0.2%** | **Transportation Infrastructure 0.2%** | **Transportation Infrastructure 0.2%** |
|  | Eagle Bulk Shipping Inc., senior note, 5.00%, 8/01/24 | United States | 1311000 |  | 2229392 |
|  | **Total Convertible Bonds (Cost $132,331,852)** |  |  |  | 118787553 |
|  | **Corporate Bonds and Notes 14.0%** |  |  |  |  |
|  | **Aerospace & Defense 0.1%** |  |  |  |  |
|  | The Boeing Co., senior bond,<br>3.375%, 6/15/46 | United States | 90000 |  | 59991 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.625%, 3/01/48 | United States | 25000 |  | 16842 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.90%, 5/01/49 | United States | 100000 |  | 71076 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.825%, 3/01/59 | United States | 25000 |  | 16443 |
| e | Leonardo US Holdings Inc., senior bond, 144A, 6.25%, 1/15/40 | Italy | 136000 |  | 160480 |
| e | ST Engineering Urban Solutions USA Inc., senior note, Reg S, 3.75%, 5/05/32 | Singapore | 400000 |  | 362961 |
| e | TransDigm Inc., senior secured note, 144A, 8.00%, 12/15/25 | United States | 75000 |  | 76446 |
|  |  |  |  |  | 764239 |
|  | **Airlines 0.1%** | **Airlines 0.1%** | **Airlines 0.1%** | **Airlines 0.1%** | **Airlines 0.1%** |
| e | Allegiant Travel Co., senior secured note, 144A, 7.25%, 8/15/27 | United States | 92000 |  | 89731 |
| e | American Airlines Group Inc., senior note, 144A, 3.75%, 3/01/25 | United States | 700000 |  | 613676 |
| e | Spirit Loyalty Cayman Ltd. / Spirit IP Cayman Ltd., senior secured note, 144A, 8.00%, 9/20/25 | United States | 343000 |  | 348037 |
|  | United Airlines Pass-Through Trust,<br>B, 4.875%, 1/15/26 | United States | 38100 |  | 36096 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2019-2, B, 3.50%, 5/01/28 | United States | 293226 |  | 252307 |
|  |  |  |  |  | 1339847 |
|  | **Automobiles 0.3%** | **Automobiles 0.3%** | **Automobiles 0.3%** | **Automobiles 0.3%** | **Automobiles 0.3%** |
| e | Aston Martin Capital Holdings Ltd., senior secured note, 144A, 10.50%, 11/30/25 | United Kingdom | 700000 |  | 674975 |
|  | Ford Motor Credit Co. LLC, senior note, 5.125%, 6/16/25 | United States | 531000 |  | 514779 |
| e | Frontier Communications Holdings LLC, senior secured note, 144A, 8.75%, 5/15/30 | United States | 1218000 |  | 1261470 |
|  | General Motors Co., senior bond,<br>5.20%, 4/01/45 | United States | 30000 |  | 25505 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.95%, 4/01/49 | United States | 90000 |  | 83848 |
| h | General Motors Financial Co. Inc., junior sub. note,<br>A, 5.75% to 9/30/27, FRN thereafter, Perpetual | United States | 30000 |  | 25493 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>c</sup> B, 6.50% to 9/30/28, FRN thereafter, Perpetual | United States | 75000 |  | 65222 |
|  |  |  |  |  | 2651292 |

---

 <br> franklintempleton.com Semiannual Report 33

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | |
|  | **Banks 1.2%** | **Banks 1.2%** | **Banks 1.2%** | **Banks 1.2%** |
|  | Bank of America Corp., senior bond, 2.972% to 2/04/32, FRN thereafter, 2/04/33 | United States | 1268000 | $1037530 |
| e | Bank Rakyat Indonesia Persero TBK PT, senior note, Reg S, 4.625%, 7/20/23 | Indonesia | 400000 | 398382 |
|  | Barclays PLC,<br>senior bond, 7.437% to 11/02/32, FRN thereafter, 11/02/33 | United Kingdom | 787000 | 834577 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; sub. bond, 3.564% to 9/23/30, FRN thereafter, 9/23/35 | United Kingdom | 325000 | 247111 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>h</sup> junior sub. note, 4.375% to 3/15/28, FRN thereafter, Perpetual | United Kingdom | 210000 | 154852 |
| e | Canara Bank, E, senior note, Reg S, 3.875%, 3/28/24 | India | 466000 | 455021 |
| e | Credit Suisse Group AG, senior note, 144A, 2.193% to 6/05/25, FRN thereafter, 6/05/26 | Switzerland | 250000 | 210683 |
|  | Deutsche Bank AG, sub. bond, 3.729% to 10/14/30, FRN thereafter, 1/14/32 | Germany | 200000 | 147186 |
| e,h | HDFC Bank Ltd., senior bond, Reg S, 3.70% to 8/25/26, FRN thereafter, Perpetual | India | 200000 | 173333 |
|  | HSBC Holdings PLC,<br>sub. bond, 8.113% to 11/03/32, FRN thereafter, 11/03/33 | United Kingdom | 200000 | 211372 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>h</sup> junior sub. note, 6.25% to 3/23/23, FRN thereafter, Perpetual | United Kingdom | 3400000 | 3276070 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 4.755% to 6/09/27, FRN thereafter, 6/09/28 | United Kingdom | 336000 | 318842 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 7.39% to 11/03/27, FRN thereafter, 11/03/28 | United Kingdom | 622000 | 652684 |
| e,h | Kasikornbank PCL, E, junior sub. note, Reg S, 4.00% to 2/10/27, FRN thereafter, Perpetual | Thailand | 200000 | 160494 |
|  | Mizuho Financial Group Inc., senior bond, 5.669% to 9/13/32, FRN thereafter, 9/13/33 | Japan | 200000 | 200867 |
|  | Norinchukin Bank, senior note, 5.071%, 9/14/32 | Japan | 500000 | 494833 |
| e | Societe Generale SA, sub. bond, 144A, 3.653% to 7/08/30, FRN thereafter, 7/08/35 | France | 200000 | 156224 |
|  | Standard Chartered PLC, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> sub. bond, 144A, 3.265% to 11/18/30, FRN thereafter, 2/18/36 | United Kingdom | 255000 | 185488 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e,h</sup> senior bond, Reg S, 7.75% to 4/02/23, FRN thereafter, Perpetual | United Kingdom | 1000000 | 993195 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 7.767%, 11/16/28 | United Kingdom | 200000 | 211096 |
| e | UniCredit SpA, senior note, 144A, 1.982% to 6/03/26, FRN thereafter, 6/03/27 | Italy | 329000 | 278906 |
| h | Westpac Banking Corp., junior sub. note, 5.00% to 9/21/27, FRN thereafter, Perpetual | Australia | 600000 | 502070 |
| e | Yes Bank IFSC Banking Unit Branch, E, senior note, Reg S, 3.75%, 2/06/23 | India | 400000 | 395600 |
|  |  |  |  | 11696416 |
|  | **Capital Markets 0.6%** |  |  |  |
|  | Ares Capital Corp.,<br>senior bond, 3.20%, 11/15/31 | United States | 105000 | 78754 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 2.875%, 6/15/28 | United States | 95000 | 78098 |
|  | Barings BDC Inc., senior note, 3.30%, 11/23/26 | United States | 125000 | 105852 |
|  | Blackstone Private Credit Fund, senior note,<br>4.70%, 3/24/25 | United States | 119000 | 116386 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.625%, 12/15/26 | United States | 298000 | 253363 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.25%, 3/15/27 | United States | 289000 | 249199 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 144A, 7.05%, 9/29/25 | United States | 421000 | 422124 |
|  | Blackstone Secured Lending Fund, senior note, 2.125%, 2/15/27 | United States | 190000 | 158904 |
|  | FS KKR Capital Corp., senior note,<br>3.40%, 1/15/26 | United States | 85000 | 77375 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 10/12/28 | United States | 150000 | 121535 |
| e | Huarong Finance 2017 Co. Ltd., senior bond, Reg S, 4.75%, 4/27/27 | China | 200000 | 173250 |
| e | Huarong Finance 2019 Co. Ltd., Reg S,<br>senior bond, E, 4.50%, 5/29/29 | China | 1200000 | 955500 |

---

 <br> 34 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Value** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | | |
|  | **Capital Markets** (continued) | | | | |
|  | Huarong Finance 2019 Co. Ltd., Reg S, (continued) | | | | |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, E, 3.875%, 11/13/29 | China | 500000 | $| 381674 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, E, 3.625%, 9/30/30 | China | 400000 |  | 293520 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>h</sup> senior note, G, 4.25% to 9/30/25, FRN thereafter, Perpetual | China | 200000 |  | 143111 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, E, 3.25%, 11/13/24 | China | 200000 |  | 180874 |
| e | Huarong Finance II Co. Ltd., senior bond, Reg S, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 11/19/25 | China | 500000 |  | 451837 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EMTN, 4.875%, 11/22/26 | China | 200000 |  | 174000 |
| e | MDGH GMTN RSC Ltd., E, senior bond, Reg S, 3.40%, 6/07/51 | United Arab Emirates | 302000 |  | 229679 |
|  | Oaktree Specialty Lending Corp., senior note, 2.70%, 1/15/27 | United States | 45000 |  | 39224 |
|  | Owl Rock Capital Corp., senior note, 2.875%, 6/11/28 | United States | 80000 |  | 64256 |
| e | Owl Rock Core Income Corp., senior note, 144A, 7.75%, 9/16/27 | United States | 1298000 |  | 1313726 |
|  |  |  |  |  | 6062241 |
|  | **Chemicals 0.1%** | **Chemicals 0.1%** | **Chemicals 0.1%** | **Chemicals 0.1%** | **Chemicals 0.1%** |
| e | Ashland LLC, senior bond, 144A, 3.375%, 9/01/31 | United States | 120000 |  | 96317 |
| e | Braskem Idesa SAPI, senior bond, Reg S, 6.99%, 2/20/32 | Mexico | 886000 |  | 629069 |
| e | Braskem Netherlands Finance BV, senior bond, 144A, 4.50%, 1/31/30 | Brazil | 200000 |  | 170791 |
|  |  |  |  |  | 896177 |
|  | **Commercial Services & Supplies 0.0%<sup>†</sup>** | **Commercial Services & Supplies 0.0%<sup>†</sup>** | **Commercial Services & Supplies 0.0%<sup>†</sup>** | **Commercial Services & Supplies 0.0%<sup>†</sup>** | **Commercial Services & Supplies 0.0%<sup>†</sup>** |
| e | Verscend Escrow Corp., senior note, 144A, 9.75%, 8/15/26 | United States | 296000 |  | 296503 |
|  | **Communications Equipment 0.0%<sup>†</sup>** | **Communications Equipment 0.0%<sup>†</sup>** | **Communications Equipment 0.0%<sup>†</sup>** | **Communications Equipment 0.0%<sup>†</sup>** | **Communications Equipment 0.0%<sup>†</sup>** |
| e | Audacy Capital Corp., senior secured note, 144A, 6.75%, 3/31/29 | United States | 998000 |  | 226955 |
| e | CommScope Inc., 144A, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 7.125%, 7/01/28 | United States | 145000 |  | 112610 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 4.75%, 9/01/29 | United States | 60000 |  | 50608 |
| e | CommScope Technologies LLC, senior bond, 144A, 5.00%, 3/15/27 | United States | 60000 |  | 45881 |
|  |  |  |  |  | 436054 |
|  | **Construction & Engineering 0.1%** | **Construction & Engineering 0.1%** | **Construction & Engineering 0.1%** | **Construction & Engineering 0.1%** | **Construction & Engineering 0.1%** |
| e | GMR Hyderabad International Airport Ltd., senior secured note, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reg S, 5.375%, 4/10/24 | India | 200000 |  | 197510 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 144A, 4.75%, 2/02/26 | India | 200000 |  | 185500 |
| e | India Airport Infra, senior secured note, Reg S, 6.25%, 10/25/25 | India | 300000 |  | 284691 |
|  |  |  |  |  | 667701 |
|  | **Construction Materials 0.1%** | **Construction Materials 0.1%** | **Construction Materials 0.1%** | **Construction Materials 0.1%** | **Construction Materials 0.1%** |
| e | Cemex SAB de CV, senior secured bond, 144A, 5.20%, 9/17/30 | Mexico | 245000 |  | 221823 |
| e | SRM Escrow Issuer LLC, senior secured note, 144A, 6.00%, 11/01/28 | United States | 784000 |  | 699187 |
|  |  |  |  |  | 921010 |
|  | **Consumer Finance 0.1%** | **Consumer Finance 0.1%** | **Consumer Finance 0.1%** | **Consumer Finance 0.1%** | **Consumer Finance 0.1%** |
| h | Ally Financial Inc., C, junior sub. note, 4.70% to 5/15/28, FRN thereafter, Perpetual | United States | 150000 |  | 100271 |
| e | Manappuram Finance Ltd., E, senior secured note, Reg S, 5.90%, 1/13/23 | India | 939000 |  | 934446 |
|  |  |  |  |  | 1034717 |

---

 <br> franklintempleton.com Semiannual Report 35

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | | |
|  | **Containers & Packaging 0.1%** | **Containers & Packaging 0.1%** | **Containers & Packaging 0.1%** | **Containers & Packaging 0.1%** | **Containers & Packaging 0.1%** |
|  | Ball Corp., senior note, 6.875%, 3/15/28 | United States | 337000 |  | $348896 |
| e | Mauser Packaging Solutions Holding Co., senior secured note, 144A, 5.50%, 4/15/24 | United States | 629000 |  | 621230 |
|  |  |  |  |  | 970126 |
|  | **Diversified Consumer Services 0.3%** | **Diversified Consumer Services 0.3%** | **Diversified Consumer Services 0.3%** | **Diversified Consumer Services 0.3%** | **Diversified Consumer Services 0.3%** |
| e | Aramark Services Inc., senior note, 144A, 6.375%, 5/01/25 | United States | 60000 |  | 59967 |
|  | Global Payments Inc., senior note, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.90%, 11/15/31 | United States | 15000 |  | 11914 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.40%, 8/15/32 | United States | 10000 |  | 9607 |
| e | GLP China Holdings Ltd., E, senior note, Reg S, 2.95%, 3/29/26 | China | 200000 |  | 128999 |
| e | The Hertz Corp., senior note, 144A, 4.625%, 12/01/26 | United States | 262000 |  | 227564 |
| e | Metis Merger Sub LLC, senior note, 144A, 6.50%, 5/15/29 | United States | 141000 |  | 116341 |
| b,e | MoneyGram International Inc., senior secured note, 144A, 5.375%, 8/01/26 | United States | 994000 |  | 1003479 |
| e,i | Sabre GLBL Inc., senior secured note, 144A, 11.25%, 12/15/27 | United States | 191000 |  | 195894 |
| e | Sotheby's/Bidfair Holdings Inc., senior secured note, 144A, 5.875%, 6/01/29 | United States | 700000 |  | 583698 |
| e | United Rentals North America Inc., senior secured note, 144A, 6.00%, 12/15/29 | United States | 202000 |  | 203396 |
|  |  |  |  |  | 2540859 |
|  | **Diversified Financial Services 0.7%** | **Diversified Financial Services 0.7%** | **Diversified Financial Services 0.7%** | **Diversified Financial Services 0.7%** | **Diversified Financial Services 0.7%** |
| e | AG Issuer LLC, senior secured note, 144A, 6.25%, 3/01/28 | United States | 554000 |  | 517487 |
| e | Aviation Capital Group LLC, senior note, 144A, 1.95%, 1/30/26 | United States | 25000 |  | 21820 |
| e | Finance of America Funding LLC, senior note, 144A, 7.875%, 11/15/25 | United States | 700000 |  | 425726 |
| e | Financiera de Desarrollo Territorial SA Findeter, senior bond, 144A, 7.875%, 8/12/24 | Colombia | 393000000 | COP | 72638 |
| e | Jane Street Group / JSG Finance Inc., senior secured note, 144A, 4.50%, 11/15/29 | United States | 980000 |  | 861542 |
| e | Medline Borrower LP, senior secured note, 144A, 3.875%, 4/01/29 | United States | 536000 |  | 461434 |
| e | MPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28 | United States | 395000 |  | 278090 |
|  | OneMain Finance Corp., senior note, 3.50%, 1/15/27 | United States | 75000 |  | 61567 |
| e | Rec Ltd., senior note, Reg S, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.75%, 5/19/23 | India | 1000000 |  | 994700 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 11/13/23 | India | 1370000 |  | 1363773 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; G, 3.375%, 7/25/24 | India | 300000 |  | 287486 |
| e | Rocket Mortgage LLC / Rocket Mortgage Co.-Issuer Inc., 144A, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 3.875%, 3/01/31 | United States | 5000 |  | 3874 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 4.00%, 10/15/33 | United States | 360000 |  | 265041 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 2.875%, 10/15/26 | United States | 360000 |  | 307409 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 3.625%, 3/01/29 | United States | 40000 |  | 32272 |
| e | Vistajet Malta Finance PLC / XO Management Holding Inc., senior note, 144A, 6.375%, 2/01/30 | Switzerland | 691000 |  | 567484 |
| e | WMG Acquisition Corp., senior secured bond, 144A, 3.00%, 2/15/31 | United States | 577000 |  | 479089 |
|  |  |  |  |  | 7001432 |
|  | **Diversified Telecommunication Services 0.9%** | **Diversified Telecommunication Services 0.9%** | **Diversified Telecommunication Services 0.9%** | **Diversified Telecommunication Services 0.9%** | **Diversified Telecommunication Services 0.9%** |
| e | Altice France Holding SA, senior secured note, 144A, 10.50%, 5/15/27 | Luxembourg | 1262000 |  | 999340 |
| b,e | Avaya Inc., senior secured note, 144A, 6.125%, 9/15/28 | United States | 1828000 |  | 810151 |
|  | British Telecommunications PLC, senior note, 4.50%, 12/04/23 | United Kingdom | 439000 |  | 435401 |
| e | Connect Finco Sarl / Connect US Finco LLC, senior secured note, 144A, 6.75%, 10/01/26 | United Kingdom | 290000 |  | 274524 |
| e | IHS Holding Ltd., senior note, Reg S, 6.25%, 11/29/28 | Nigeria | 785000 |  | 610612 |

---

 <br> 36 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | | | |
|  | **Diversified Telecommunication Services** (continued) | **Diversified Telecommunication Services** (continued) | **Diversified Telecommunication Services** (continued) | **Diversified Telecommunication Services** (continued) | **Diversified Telecommunication Services** (continued) | **Diversified Telecommunication Services** (continued) |
| e | Kenbourne Invest SA, senior note, 144A, 6.875%, 11/26/24 | Chile | 200000 |  | $| 185298 |
| e | Level 3 Financing Inc., senior note, 144A, 4.625%, 9/15/27 | United States | 2073000 |  |  | 1749353 |
| e | Lorca Telecom Bondco SA, senior secured note, Reg S, 4.00%, 9/18/27 | Spain | 200000 | EUR |  | 189284 |
|  | Sprint LLC, senior note, 7.125%, 6/15/24 | United States | 1176000 |  |  | 1202440 |
| e | Switch Ltd., senior note, 144A, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.75%, 9/15/28 | United States | 128000 |  |  | 129196 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>b</sup> 4.125%, 6/15/29 | United States | 2028000 |  |  | 2043616 |
| e | VMED O2 UK Financing I PLC, Reg S, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured bond, 4.50%, 7/15/31 | United Kingdom | 465000 | GBP |  | 447653 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 4.00%, 1/31/29 | United Kingdom | 210000 | GBP |  | 206468 |
| e | Zayo Group Holdings Inc., senior note, 144A, 6.125%, 3/01/28 | United States | 290000 |  |  | 157848 |
|  |  |  |  |  |  | 9441184 |
|  | **Electric Utilities 0.6%** | **Electric Utilities 0.6%** | **Electric Utilities 0.6%** | **Electric Utilities 0.6%** | **Electric Utilities 0.6%** | **Electric Utilities 0.6%** |
| b,f | Bruce Mansfield Escrow, senior bond, zero cpn., 6/01/34 | United States | 6394000 |  |  | 23977 |
| h | Edison International, A, junior sub. note, 5.375% to 3/15/26, FRN thereafter, Perpetual | United States | 50000 |  |  | 42600 |
| e | EP Infrastructure AS, Reg S, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 1.816%, 3/02/31 | Czech Republic | 100000 | EUR |  | 68101 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 1.659%, 4/26/24 | Czech Republic | 147000 | EUR |  | 136182 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 1.698%, 7/30/26 | Czech Republic | 514000 | EUR |  | 431412 |
| e | Eskom Holdings SOC Ltd., senior bond, Reg S, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.75%, 8/06/23 | South Africa | 510000 |  |  | 499035 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.125%, 2/11/25 | South Africa | 781000 |  |  | 736221 |
| e | Greenko Investment Co., senior secured note, Reg S, 4.875%, 8/16/23 | India | 200000 |  |  | 195550 |
|  | Greenko Mauritius Ltd., senior note, 6.25%, 2/21/23 | India | 300000 |  |  | 298500 |
| e | Greenko Power II Ltd., senior secured note, Reg S, 4.30%, 12/13/28 | India | 195500 |  |  | 169049 |
| e | Greenko Wind Projects Mauritius Ltd., senior note, Reg S, 5.50%, 4/06/25 | India | 200000 |  |  | 188113 |
|  | Pacific Gas and Electric Co., |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; secured bond, 4.95%, 7/01/50 | United States | 2484000 |  |  | 1992215 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; secured bond, 3.50%, 8/01/50 | United States | 328000 |  |  | 213227 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 4.30%, 3/15/45 | United States | 85000 |  |  | 62099 |
|  | PG&E Corp., senior secured bond, 5.25%, 7/01/30 | United States | 700000 |  |  | 634970 |
|  |  |  |  |  |  | 5691251 |
|  | **Energy Equipment & Services 0.2%** | **Energy Equipment & Services 0.2%** | **Energy Equipment & Services 0.2%** | **Energy Equipment & Services 0.2%** | **Energy Equipment & Services 0.2%** | **Energy Equipment & Services 0.2%** |
| e | Shelf Drilling Holdings Ltd., senior note, 144A, 8.25%, 2/15/25 | United Arab Emirates | 157000 |  |  | 136673 |
| e | Solaris Midstream Holdings LLC, senior note, 144A, 7.625%, 4/01/26 | United States | 557000 |  |  | 549291 |
| e | Transocean Inc., senior note, 144A, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.25%, 11/01/25 | United States | 824000 |  |  | 716287 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.50%, 1/15/26 | United States | 297000 |  |  | 249391 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>b</sup> 11.50%, 1/30/27 | United States | 225000 |  |  | 228161 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.00%, 2/01/27 | United States | 277000 |  |  | 226841 |
| e | Transocean Phoenix 2 Ltd., senior secured note, 144A, 7.75%, 10/15/24 | United States | 312800 |  |  | 310068 |
| e | Transocean Pontus Ltd., senior secured note, 144A, 6.125%, 8/01/25 | United States | 43680 |  |  | 42438 |
|  |  |  |  |  |  | 2459150 |

---

 <br> franklintempleton.com Semiannual Report 37

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | | |
|  | **Entertainment 0.1%** | **Entertainment 0.1%** | **Entertainment 0.1%** | **Entertainment 0.1%** | **Entertainment 0.1%** |
| e,j | AMC Entertainment Holdings Inc., senior secured note, 144A, PIK, 10.00% (cash), 6/15/26 | United States | 519000 |  | $194939 |
|  | Netflix Inc., senior bond, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.875%, 4/15/28 | United States | 15000 |  | 14591 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 11/15/28 | United States | 115000 |  | 116462 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.375%, 5/15/29 | United States | 60000 |  | 61978 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 144A, 5.375%, 11/15/29 | United States | 30000 |  | 29490 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 144A, 4.875%, 6/15/30 | United States | 934000 |  | 883503 |
|  |  |  |  |  | 1300963 |
|  | **Equity Real Estate Investment Trusts (REITs) 0.3%** | **Equity Real Estate Investment Trusts (REITs) 0.3%** | **Equity Real Estate Investment Trusts (REITs) 0.3%** | **Equity Real Estate Investment Trusts (REITs) 0.3%** | **Equity Real Estate Investment Trusts (REITs) 0.3%** |
|  | National Health Investors Inc., senior bond, 3.00%, 2/01/31 | United States | 30000 |  | 21769 |
|  | SBA Communications Corp., senior note, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 2/15/27 | United States | 10000 |  | 9245 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 2/01/29 | United States | 700000 |  | 585156 |
|  | Service Properties Trust, senior bond, 4.50%, 6/15/23 | United States | 265000 |  | 263012 |
| e | Uniti Group LP / Uniti Fiber Holdings Inc. / CSL Capital LLC, senior note, 144A, 6.00%, 1/15/30 | United States | 516000 |  | 373223 |
| e | Vici Properties LP / Vici Note Co. Inc., 144A, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 4.125%, 8/15/30 | United States | 761000 |  | 660421 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 5.625%, 5/01/24 | United States | 126000 |  | 124938 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 4.625%, 6/15/25 | United States | 100000 |  | 95815 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 4.50%, 9/01/26 | United States | 125000 |  | 117198 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 4.25%, 12/01/26 | United States | 1312000 |  | 1222089 |
|  |  |  |  |  | 3472866 |
|  | **Food & Staples Retailing 0.4%** | **Food & Staples Retailing 0.4%** | **Food & Staples Retailing 0.4%** | **Food & Staples Retailing 0.4%** | **Food & Staples Retailing 0.4%** |
| e | Albertsons Cos. Inc. / Safeway Inc. / New Albertsons LP / Albertsons LLC, senior note, 144A, 4.625%, 1/15/27 | United States | 1921000 |  | 1779365 |
| e | Chobani LLC / Chobani Finance Corp. Inc., senior note, 144A, 7.50%, 4/15/25 | United States | 1150000 |  | 1125539 |
| e | JBS USA Lux SA / JBS USA Food Co. / JBS USA Finance Inc., senior note, 144A, 3.00%, 2/02/29 | United States | 35000 |  | 29528 |
| e | Marb Bondco PLC, senior bond, 144A, 3.95%, 1/29/31 | Brazil | 215000 |  | 166821 |
| e | Market Bidco Finco PLC, senior note, 144A, 5.50%, 11/04/27 | United Kingdom | 1000000 |  | 926976 |
|  |  |  |  |  | 4028229 |
|  | **Food Products 0.0%<sup>†</sup>** | **Food Products 0.0%<sup>†</sup>** | **Food Products 0.0%<sup>†</sup>** | **Food Products 0.0%<sup>†</sup>** | **Food Products 0.0%<sup>†</sup>** |
| e | Darling Ingredients Inc., senior note, 144A, 6.00%, 6/15/30 | United States | 5000 |  | 4882 |
| e | Post Holdings Inc., senior bond, 144A, 5.75%, 3/01/27 | United States | 65000 |  | 63446 |
|  |  |  |  |  | 68328 |
|  | **Gas Utilities 0.0%<sup>†</sup>** | **Gas Utilities 0.0%<sup>†</sup>** | **Gas Utilities 0.0%<sup>†</sup>** | **Gas Utilities 0.0%<sup>†</sup>** | **Gas Utilities 0.0%<sup>†</sup>** |
| e | Eustream AS, senior note, Reg S, 1.625%, 6/25/27 | Slovak Republic | 356000 | EUR | 244166 |
|  | **Health Care Providers & Services 0.4%** | **Health Care Providers & Services 0.4%** | **Health Care Providers & Services 0.4%** | **Health Care Providers & Services 0.4%** | **Health Care Providers & Services 0.4%** |
| e | Global Medical Response Inc., senior secured note, 144A, 6.50%, 10/01/25 | United States | 522000 |  | 393742 |
|  | HCA Inc., |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> senior bond, 144A, 4.625%, 3/15/52 | United States | 1970000 |  | 1591213 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured bond, 3.50%, 7/15/51 | United States | 519000 |  | 351599 |
| e | LifePoint Health Inc., senior note, 144A, 5.375%, 1/15/29 | United States | 749000 |  | 440648 |
| e | Molina Healthcare Inc., senior note, 144A, 4.375%, 6/15/28 | United States | 35000 |  | 32159 |
| e | RP Escrow Issuer LLC, senior secured note, 144A, 5.25%, 12/15/25 | United States | 579000 |  | 485607 |
| e | Tenet Healthcare Corp., senior secured note, 144A, 4.875%, 1/01/26 | United States | 779000 |  | 740432 |

---

 <br> 38 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Value** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | | |
|  | **Health Care Providers & Services** (continued) | **Health Care Providers & Services** (continued) | **Health Care Providers & Services** (continued) | **Health Care Providers & Services** (continued) | **Health Care Providers & Services** (continued) |
| e | Universal Health Services Inc., senior secured note, 144A, 1.65%, 9/01/26 | United States | 192000 | $| 164883 |
|  |  |  |  |  | 4200283 |
|  | **Health Care Technology 0.1%** | **Health Care Technology 0.1%** | **Health Care Technology 0.1%** | **Health Care Technology 0.1%** | **Health Care Technology 0.1%** |
| e | Cloud Software Group Holdings Inc., senior secured note, 144A, 6.50%, 3/31/29 | United States | 845000 |  | 739304 |
| e,i | Open Text Corp., senior secured note, 144A, 6.90%, 12/01/27 | Canada | 471000 |  | 472159 |
|  |  |  |  |  | 1211463 |
|  | **Hotels, Restaurants & Leisure 0.5%** | **Hotels, Restaurants & Leisure 0.5%** | **Hotels, Restaurants & Leisure 0.5%** | **Hotels, Restaurants & Leisure 0.5%** | **Hotels, Restaurants & Leisure 0.5%** |
| e | Carnival Corp., 144A, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 7.625%, 3/01/26 | United States | 566000 |  | 477962 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 5.75%, 3/01/27 | United States | 95000 |  | 70775 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 6.00%, 5/01/29 | United States | 543000 |  | 386220 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 9.875%, 8/01/27 | United States | 345000 |  | 337237 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 4.00%, 8/01/28 | United States | 485000 |  | 404488 |
| b,e | Carnival Holdings Bermuda Ltd., senior note, 144A, 10.375%, 5/01/28 | United States | 1121000 |  | 1168945 |
| e | Hilton Grand Vacations Borrower Escrow LLC, 144A, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 4.875%, 7/01/31 | United States | 20000 |  | 16531 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 5.00%, 6/01/29 | United States | 50000 |  | 43358 |
| e | Lions Gate Capital Holdings LLC, senior note, 144A, 5.50%, 4/15/29 | United States | 638000 |  | 415542 |
| e | Magallanes Inc., senior bond, 144A, 4.279%, 3/15/32 | United States | 135000 |  | 114756 |
| e | Marriott Ownership Resorts Inc., senior note, 144A, 4.50%, 6/15/29 | United States | 35000 |  | 29547 |
| e | Royal Caribbean Cruises Ltd., 144A, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 4.25%, 7/01/26 | United States | 45000 |  | 37357 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 5.50%, 4/01/28 | United States | 125000 |  | 102176 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 9.25%, 1/15/29 | United States | 440000 |  | 450914 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 8.25%, 1/15/29 | United States | 715000 |  | 726654 |
| e | Scientific Games International Inc., senior note, 144A, 7.00%, 5/15/28 | United States | 135000 |  | 133962 |
|  | Travel + Leisure Co., |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured bond, 6.00%, 4/01/27 | United States | 10000 |  | 9393 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> senior secured bond, 144A, 4.625%, 3/01/30 | United States | 45000 |  | 36544 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> senior secured note, 144A, 6.625%, 7/31/26 | United States | 115000 |  | 112825 |
|  |  |  |  |  | 5075186 |
|  | **Household Durables 0.2%** | **Household Durables 0.2%** | **Household Durables 0.2%** | **Household Durables 0.2%** | **Household Durables 0.2%** |
| e | K. Hovnanian Enterprises Inc., senior secured note, 144A, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.75%, 2/15/26 | United States | 1164000 |  | 1148612 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.50%, 2/15/26 | United States | 850000 |  | 833098 |
|  |  |  |  |  | 1981710 |
|  | **Independent Power & Renewable Electricity Producers 0.0%<sup>†</sup>** | **Independent Power & Renewable Electricity Producers 0.0%<sup>†</sup>** | **Independent Power & Renewable Electricity Producers 0.0%<sup>†</sup>** | **Independent Power & Renewable Electricity Producers 0.0%<sup>†</sup>** | **Independent Power & Renewable Electricity Producers 0.0%<sup>†</sup>** |
|  | NRG Energy Inc., senior note, 5.75%, 1/15/28 | United States | 65000 |  | 62322 |
|  | **Industrial Conglomerates 0.0%<sup>†</sup>** | **Industrial Conglomerates 0.0%<sup>†</sup>** | **Industrial Conglomerates 0.0%<sup>†</sup>** | **Industrial Conglomerates 0.0%<sup>†</sup>** | **Industrial Conglomerates 0.0%<sup>†</sup>** |
|  | Icahn Enterprises LP / Icahn Enterprises Finance Corp., senior note, | Icahn Enterprises LP / Icahn Enterprises Finance Corp., senior note, | Icahn Enterprises LP / Icahn Enterprises Finance Corp., senior note, | Icahn Enterprises LP / Icahn Enterprises Finance Corp., senior note, | Icahn Enterprises LP / Icahn Enterprises Finance Corp., senior note, |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.375%, 12/15/25 | United States | 75000 |  | 73350 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.25%, 5/15/26 | United States | 105000 |  | 103773 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 5/15/27 | United States | 130000 |  | 119885 |
|  |  |  |  |  | 297008 |
|  | **Insurance 0.1%** | **Insurance 0.1%** | **Insurance 0.1%** | **Insurance 0.1%** | **Insurance 0.1%** |
| e | Global Atlantic Finance Co., senior bond, 144A, 4.40%, 10/15/29 | United States | 165000 |  | 138918 |
| e,h | KDB Life Insurance Co. Ltd., sub. note, Reg S, 7.50% to 5/21/23, FRN thereafter, Perpetual | South Korea | 200000 |  | 174250 |
| e | QBE Insurance Group Ltd., sub. bond, Reg S, 7.5% to 11/24/23, FRN thereafter, 11/24/43 | Australia | 250000 |  | 249688 |

---

 <br> franklintempleton.com Semiannual Report 39

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | | | |
|  | **Insurance** (continued) | **Insurance** (continued) | **Insurance** (continued) | **Insurance** (continued) | **Insurance** (continued) | **Insurance** (continued) |
| e,h | Tongyang Life Insurance Co. Ltd., sub. note, Reg S, 5.25% to 9/22/25, FRN thereafter, Perpetual | South Korea | 200000 |  | $| 158500 |
|  |  |  |  |  |  | 721356 |
|  | **Interactive Media & Services 0.1%** | **Interactive Media & Services 0.1%** | **Interactive Media & Services 0.1%** | **Interactive Media & Services 0.1%** | **Interactive Media & Services 0.1%** | **Interactive Media & Services 0.1%** |
| e | Tencent Holdings Ltd., senior bond, Reg S, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.84%, 4/22/51 | China | 250000 |  |  | 173839 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.94%, 4/22/61 | China | 500000 |  |  | 333326 |
|  |  |  |  |  |  | 507165 |
|  | **Internet & Direct Marketing Retail 0.4%** | **Internet & Direct Marketing Retail 0.4%** | **Internet & Direct Marketing Retail 0.4%** | **Internet & Direct Marketing Retail 0.4%** | **Internet & Direct Marketing Retail 0.4%** | **Internet & Direct Marketing Retail 0.4%** |
|  | Amazon.com Inc., senior bond, 2.70%, 6/03/60 | United States | 1024000 |  |  | 649031 |
|  | Expedia Group Inc., senior note, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.25%, 2/15/30 | United States | 30000 |  |  | 25684 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.95%, 3/15/31 | United States | 40000 |  |  | 32559 |
| e | Meituan, senior bond, Reg S, 3.05%, 10/28/30 | China | 600000 |  |  | 449914 |
| e | Meta Platforms Inc., senior note, 144A, 3.50%, 8/15/27 | United States | 1168000 |  |  | 1098407 |
| e | Prosus NV, Reg S, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 1.985%, 7/13/33 | China | 300000 | EUR |  | 206287 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 2.778%, 1/19/34 | China | 821000 | EUR |  | 596532 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 3.832%, 2/08/51 | China | 110000 |  |  | 66003 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 4.987%, 1/19/52 | China | 100000 |  |  | 69999 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 1.288%, 7/13/29 | China | 204000 | EUR |  | 157653 |
| e | Rakuten Group Inc., senior note, 144A, 10.25%, 11/30/24 | Japan | 446000 |  |  | 439554 |
|  |  |  |  |  |  | 3791623 |
|  | **IT Services 0.1%** | **IT Services 0.1%** | **IT Services 0.1%** | **IT Services 0.1%** | **IT Services 0.1%** | **IT Services 0.1%** |
| e | Hurricane Finance PLC, senior secured note, Reg S, 8.00%, 10/15/25 | United Kingdom | 358000 | GBP |  | 407748 |
| e | Virtusa Corp., senior note, 144A, 7.125%, 12/15/28 | United States | 700000 |  |  | 526190 |
|  |  |  |  |  |  | 933938 |
|  | **Leisure Products 0.1%** | **Leisure Products 0.1%** | **Leisure Products 0.1%** | **Leisure Products 0.1%** | **Leisure Products 0.1%** | **Leisure Products 0.1%** |
| e | Life Time Inc., senior secured note, 144A, 5.75%, 1/15/26 | United States | 144000 |  |  | 138664 |
| e | Mattel Inc., senior note, 144A, 3.375%, 4/01/26 | United States | 611000 |  |  | 561812 |
| e | NCL Corp. Ltd., 144A, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 5.875%, 3/15/26 | United States | 95000 |  |  | 78053 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 5.875%, 2/15/27 | United States | 60000 |  |  | 53500 |
|  |  |  |  |  |  | 832029 |
|  | **Machinery 0.1%** | **Machinery 0.1%** | **Machinery 0.1%** | **Machinery 0.1%** | **Machinery 0.1%** | **Machinery 0.1%** |
| e | TK Elevator US Newco Inc., senior secured note, 144A, 5.25%, 7/15/27 | Germany | 579000 |  |  | 526308 |
|  | **Media 1.0%** | **Media 1.0%** | **Media 1.0%** | **Media 1.0%** | **Media 1.0%** | **Media 1.0%** |
| e | Advantage Sales & Marketing Inc., senior secured note, 144A, 6.50%, 11/15/28 | United States | 905000 |  |  | 709972 |
| e | CCO Holdings LLC / CCO Holdings Capital Corp., senior bond, 144A, | CCO Holdings LLC / CCO Holdings Capital Corp., senior bond, 144A, | CCO Holdings LLC / CCO Holdings Capital Corp., senior bond, 144A, | CCO Holdings LLC / CCO Holdings Capital Corp., senior bond, 144A, | CCO Holdings LLC / CCO Holdings Capital Corp., senior bond, 144A, | CCO Holdings LLC / CCO Holdings Capital Corp., senior bond, 144A, |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.50%, 5/01/26 | United States | 40000 |  |  | 38850 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 5/01/27 | United States | 495000 |  |  | 469069 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 2/01/28 | United States | 1328000 |  |  | 1222995 |
|  | Charter Communications Operating LLC / Charter Communications Operating Capital, senior secured bond, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.30%, 2/01/32 | United States | 15000 |  |  | 11259 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.40%, 4/01/33 | United States | 20000 |  |  | 17550 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.50%, 3/01/42 | United States | 909000 |  |  | 617096 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.484%, 10/23/45 | United States | 768000 |  |  | 724554 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.40%, 12/01/61 | United States | 235000 |  |  | 160621 |

---

 <br> 40 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | | | |
|  | **Media** (continued) | **Media** (continued) | **Media** (continued) | **Media** (continued) | **Media** (continued) | **Media** (continued) |
|  | Charter Communications Operating LLC / Charter Communications<br>Operating Capital, senior secured bond, (continued) | | | | | |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.95%, 6/30/62 | United States | 1973000 |  | $| 1234596 |
|  | CSC Holdings LLC, senior bond, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 144A, 5.50%, 4/15/27 | United States | 295000 |  |  | 270660 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 144A, 5.375%, 2/01/28 | United States | 181000 |  |  | 162262 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 6/01/24 | United States | 192000 |  |  | 185244 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 144A, 4.625%, 12/01/30 | United States | 655000 |  |  | 416418 |
| e | DIRECTV Holdings LLC / DIRECTV Financing Co. Inc., senior secured note, 144A, 5.875%, 8/15/27 | United States | 30000 |  |  | 27562 |
|  | DISH DBS Corp., |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 5.125%, 6/01/29 | United States | 270000 |  |  | 178200 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> senior secured note, 144A, 5.25%, 12/01/26 | United States | 295000 |  |  | 253811 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> senior secured note, 144A, 5.75%, 12/01/28 | United States | 191000 |  |  | 155269 |
| e | Dish Network Corp., senior secured note, 144A, 11.75%, 11/15/27 | United States | 585000 |  |  | 602012 |
| e | iHeartCommunications Inc., senior secured note, 144A, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 8/15/27 | United States | 90000 |  |  | 80284 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.75%, 1/15/28 | United States | 1193000 |  |  | 1030340 |
|  | Liberty Interactive LLC, senior bond, 8.25%, 2/01/30 | United States | 840000 |  |  | 421533 |
|  | TEGNA Inc., senior note, 4.625%, 3/15/28 | United States | 587000 |  |  | 554357 |
| e | Virgin Media Secured Finance PLC, senior secured bond, Reg S, 4.25%, 1/15/30 | United Kingdom | 301000 | GBP |  | 291594 |
| e | Wolverine Escrow LLC, senior secured note, 144A, 8.50%, 11/15/24 | United States | 654000 |  |  | 327000 |
|  |  |  |  |  |  | 10163108 |
|  | **Metals & Mining 0.3%** | **Metals & Mining 0.3%** | **Metals & Mining 0.3%** | **Metals & Mining 0.3%** | **Metals & Mining 0.3%** | **Metals & Mining 0.3%** |
| e | Abja Investment Co. Pte. Ltd., senior note, Reg S, 4.45%, 7/24/23 | India | 600000 |  |  | 594900 |
|  | Arcelormittal SA, senior bond, 6.80%, 11/29/32 | Luxembourg | 245000 |  |  | 247814 |
| e | First Quantum Minerals Ltd., senior note, 144A, 6.875%, 10/15/27 | Zambia | 375000 |  |  | 357775 |
|  | Freeport-McMoRan Inc., senior bond, 4.625%, 8/01/30 | United States | 65000 |  |  | 59458 |
| e | Glencore Funding LLC, senior bond, 144A, 2.85%, 4/27/31 | Australia | 165000 |  |  | 136024 |
| e | Taseko Mines Ltd., senior secured note, 144A, 7.00%, 2/15/26 | Canada | 792000 |  |  | 665979 |
| e | Vedanta Resources Finance II PLC, senior note, Reg S, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.00%, 4/23/23 | India | 400000 |  |  | 374227 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13.875%, 1/21/24 | India | 400000 |  |  | 343619 |
| e | Vedanta Resources Ltd., senior note, Reg S, 7.125%, 5/31/23 | India | 200000 |  |  | 187000 |
| e | Volcan Cia Minera SAA, senior note, 144A, 4.375%, 2/11/26 | Peru | 30000 |  |  | 25751 |
|  |  |  |  |  |  | 2992547 |
|  | **Mining 0.0%<sup>†</sup>** | **Mining 0.0%<sup>†</sup>** | **Mining 0.0%<sup>†</sup>** | **Mining 0.0%<sup>†</sup>** | **Mining 0.0%<sup>†</sup>** | **Mining 0.0%<sup>†</sup>** |
| e | FMG Resources August 2006 Pty Ltd., senior note, 144A, 4.50%, 9/15/27 | Australia | 50000 |  |  | 45805 |
|  | **Mortgage Real Estate Investment Trusts (REITs) 0.1%** | **Mortgage Real Estate Investment Trusts (REITs) 0.1%** | **Mortgage Real Estate Investment Trusts (REITs) 0.1%** | **Mortgage Real Estate Investment Trusts (REITs) 0.1%** | **Mortgage Real Estate Investment Trusts (REITs) 0.1%** | **Mortgage Real Estate Investment Trusts (REITs) 0.1%** |
| e | Apollo Commercial Real Estate Finance Inc., senior secured note, 144A, 4.625%, 6/15/29 | United States | 690000 |  |  | 550506 |
|  | Office Properties Income Trust, senior note, 4.50%, 2/01/25 | United States | 316000 |  |  | 280108 |
| e | Rithm Capital Corp., senior note, 144A, 6.25%, 10/15/25 | United States | 248000 |  |  | 224332 |
|  |  |  |  |  |  | 1054946 |
|  | **Multiline Retail 0.0%<sup>†</sup>** | **Multiline Retail 0.0%<sup>†</sup>** | **Multiline Retail 0.0%<sup>†</sup>** | **Multiline Retail 0.0%<sup>†</sup>** | **Multiline Retail 0.0%<sup>†</sup>** | **Multiline Retail 0.0%<sup>†</sup>** |
|  | Kohl's Corp., senior bond, 5.55%, 7/17/45 | United States | 424000 |  |  | 281383 |
|  | **Oil, Gas & Consumable Fuels 2.2%** | **Oil, Gas & Consumable Fuels 2.2%** | **Oil, Gas & Consumable Fuels 2.2%** | **Oil, Gas & Consumable Fuels 2.2%** | **Oil, Gas & Consumable Fuels 2.2%** | **Oil, Gas & Consumable Fuels 2.2%** |
| e | Aethon United BR LP / Aethon United Finance Corp., senior note, 144A, 8.25%, 2/15/26 | United States | 159000 |  |  | 158411 |
| e,h | BP Capital Markets PLC, senior note, Reg S, 3.625% to 3/22/29, FRN thereafter, Perpetual | United Kingdom | 429000 | EUR |  | 385679 |
| e | Callon Petroleum Co., senior note, 144A, 8.00%, 8/01/28 | United States | 210000 |  |  | 207718 |

---

 <br> franklintempleton.com Semiannual Report 41

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | |
|  | **Oil, Gas & Consumable Fuels** (continued) | **Oil, Gas & Consumable Fuels** (continued) | **Oil, Gas & Consumable Fuels** (continued) | **Oil, Gas & Consumable Fuels** (continued) |
| e | Continental Resources Inc., senior bond, 144A, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.75%, 1/15/31 | United States | 280000 | $262723 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 4/01/32 | United States | 20000 | 15106 |
| e | Energean Israel Finance Ltd., senior secured note, 144A, Reg S, 5.375%, 3/30/28 | Israel | 60000 | 55308 |
|  | Energy Transfer LP, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 6.125%, 12/15/45 | United States | 272000 | 258337 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 6.00%, 6/15/48 | United States | 329000 | 303098 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 6.25%, 4/15/49 | United States | 181000 | 171725 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 5.00%, 5/15/50 | United States | 352000 | 290663 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>h</sup> junior sub. note, H, 6.50% to 11/15/26, FRN thereafter, Perpetual | United States | 554000 | 478202 |
|  | Equities Corp., senior note, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.90%, 10/01/27 | United States | 50000 | 46345 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 1/15/29 | United States | 35000 | 33411 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>c,e</sup> 144A, 3.625%, 5/15/31 | United States | 135000 | 116943 |
| e | Hess Midstream Operations LP, senior note, 144A, 5.625%, 2/15/26 | United States | 25000 | 24609 |
| e | Indian Oil Corp. Ltd., senior bond, Reg S, 5.75%, 8/01/23 | India | 300000 | 300522 |
|  | Laredo Petroleum Inc., senior note, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.50%, 1/15/25 | United States | 128000 | 128188 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.125%, 1/15/28 | United States | 142000 | 143879 |
| e | Moss Creek Resources Holdings Inc., senior note, 144A, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.50%, 1/15/26 | United States | 316000 | 294444 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.50%, 5/15/27 | United States | 843000 | 830355 |
| e | New Fortress Energy Inc., senior secured note, 144A, 6.75%, 9/15/25 | United States | 797000 | 779729 |
| e | NGL Energy Operating LLC / NGL Energy Finance Corp., senior secured note, 144A, 7.50%, 2/01/26 | United States | 783000 | 708115 |
| e | Northern Oil And Gas Inc., senior note, 144A, 8.125%, 3/01/28 | United States | 780000 | 762505 |
|  | Occidental Petroleum Corp., |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 8.875%, 7/15/30 | United States | 15000 | 17215 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 6.125%, 1/01/31 | United States | 10000 | 10158 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 7.875%, 9/15/31 | United States | 15000 | 16444 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 5.55%, 3/15/26 | United States | 120000 | 120160 |
| e | Ongc Videsh Ltd., senior bond, Reg S, 3.75%, 5/07/23 | India | 363000 | 360170 |
|  | Ovintiv Inc., senior bond, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.125%, 9/15/30 | United States | 25000 | 27829 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.20%, 11/01/31 | United States | 5000 | 5351 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.375%, 11/01/31 | United States | 5000 | 5427 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.50%, 8/15/34 | United States | 20000 | 20684 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.50%, 2/01/38 | United States | 10000 | 10193 |
| e | Pertamina Persero PT, senior note, Reg S, 4.30%, 5/20/23 | Indonesia | 400000 | 398000 |
|  | Petroleos Mexicanos, senior bond, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.95%, 1/28/31 | Mexico | 285000 | 213981 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.625%, 6/15/35 | Mexico | 205000 | 144925 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.75%, 9/21/47 | Mexico | 698000 | 444338 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.69%, 1/23/50 | Mexico | 2583000 | 1783529 |
| e | Rockies Express Pipeline LLC, senior bond, 144A, 4.95%, 7/15/29 | United States | 136000 | 122540 |
|  | Southwestern Energy Co., senior bond, 4.75%, 2/01/32 | United States | 892000 | 780869 |
| b | Talos Production Inc., secured note, 12.00%, 1/15/26 | United States | 986000 | 1031533 |
|  | Targa Resources Partners LP / Targa Resources Partners Finance Corp., senior bond, 4.875%, 2/01/31 | United States | 86000 | 78446 |
| e | Thai Oil PCL, senior bond, Reg S, 3.625%, 1/23/23 | Thailand | 200000 | 199486 |
| e | Thaioil Treasury Center Co. Ltd., senior note, Reg S, 3.625%, 1/23/23 | Thailand | 2500000 | 2493744 |
| e | Transocean Guardian Ltd., senior secured note, 144A, 5.875%, 1/15/24 | United States | 475488 | 463753 |
| e | Tullow Oil PLC, senior note, Reg S, 10.25%, 5/15/26 | Ghana | 2105000 | 1807490 |

---

 <br> 42 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | | | |
|  | **Oil, Gas & Consumable Fuels** (continued) | **Oil, Gas & Consumable Fuels** (continued) | **Oil, Gas & Consumable Fuels** (continued) | **Oil, Gas & Consumable Fuels** (continued) | **Oil, Gas & Consumable Fuels** (continued) | **Oil, Gas & Consumable Fuels** (continued) |
| e | Venture Global Calcasieu Pass LLC, senior secured bond, 144A, 3.875%, 11/01/33 | United States | 1351000 |  | $| 1101065 |
|  | Western Midstream Operating LP, senior note, 3.35%, 2/01/25 | United States | 85000 |  |  | 81583 |
|  | The Williams Cos. Inc., senior bond, 3.50%, 10/15/51 | United States | 2098000 |  |  | 1487408 |
| e | YPF Sociedad Anonima, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, Reg S, 8.50%, 7/28/25 | Argentina | 536000 |  |  | 424231 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 144A, 6.95%, 7/21/27 | Argentina | 105000 |  |  | 70838 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, Reg S, 8.75%, 4/04/24 | Argentina | 1418900 |  |  | 1323605 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, Reg S, 8.50%, 3/23/25 | Argentina | 995000 |  |  | 869819 |
|  |  |  |  |  |  | 22670829 |
|  | **Pharmaceuticals 0.4%** | **Pharmaceuticals 0.4%** | **Pharmaceuticals 0.4%** | **Pharmaceuticals 0.4%** | **Pharmaceuticals 0.4%** | **Pharmaceuticals 0.4%** |
| e | 1375209 Bc Ltd., senior secured note, 144A, 9.00%, 1/30/28 | Canada | 540000 |  |  | 533250 |
| e | Bausch Health Cos. Inc., 144A,<br>senior bond, 5.25%, 1/30/30 | United States | 120000 |  |  | 50193 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 5.25%, 2/15/31 | United States | 40000 |  |  | 16790 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 7.00%, 1/15/28 | United States | 70000 |  |  | 30025 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 5.00%, 1/30/28 | United States | 165000 |  |  | 67800 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 5.00%, 2/15/29 | United States | 20000 |  |  | 8458 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 6.25%, 2/15/29 | United States | 20000 |  |  | 8393 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 5.50%, 11/01/25 | United States | 829000 |  |  | 701641 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 11.00%, 9/30/28 | United States | 1299000 |  |  | 1003477 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 14.00%, 10/15/30 | United States | 259000 |  |  | 144988 |
| e | Organon & Co. / Organon Foreign Debt Co.-Issuer BV, senior bond, 144A, 5.125%, 4/30/31 | United States | 691000 |  |  | 613954 |
|  | Teva Pharmaceutical Finance Co. LLC, senior bond, 6.15%, 2/01/36 | Israel | 10000 |  |  | 8556 |
|  | Teva Pharmaceutical Finance Netherlands II BV, senior note, 6.00%, 1/31/25 | Israel | 335000 | EUR |  | 348649 |
|  | Teva Pharmaceutical Finance Netherlands III BV,<br>senior bond, 3.15%, 10/01/26 | Israel | 185000 |  |  | 161157 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 4.10%, 10/01/46 | Israel | 100000 |  |  | 62139 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 2.80%, 7/21/23 | Israel | 325000 |  |  | 317338 |
|  |  |  |  |  |  | 4076808 |
|  | **Professional Services 0.0%<sup>†</sup>** | **Professional Services 0.0%<sup>†</sup>** | **Professional Services 0.0%<sup>†</sup>** | **Professional Services 0.0%<sup>†</sup>** | **Professional Services 0.0%<sup>†</sup>** | **Professional Services 0.0%<sup>†</sup>** |
| e | Corelogic Inc., senior secured note, 144A, 4.50%, 5/01/28 | United States | 452000 |  |  | 334166 |
|  | **Real Estate Management & Development 0.3%** | **Real Estate Management & Development 0.3%** | **Real Estate Management & Development 0.3%** | **Real Estate Management & Development 0.3%** | **Real Estate Management & Development 0.3%** | **Real Estate Management & Development 0.3%** |
| e | Agile Group Holdings Ltd., Reg S,<br><sup>h</sup> senior note, 7.875% to 7/31/24, FRN thereafter, Perpetual | China | 200000 |  |  | 36337 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 6.05%, 10/13/25 | China | 200000 |  |  | 77648 |
| e | Central China Real Estate Ltd., senior secured note, Reg S, 7.25%, 8/13/24 | China | 200000 |  |  | 24859 |
| e | CFLD Cayman Investment Ltd., senior note, Reg S, 8.60%, 4/08/24 | China | 200000 |  |  | 17569 |
| e | China Aoyuan Group Ltd., senior secured note, Reg S, 5.98%, 8/18/25 | China | 200000 |  |  | 10201 |
| e | China Evergrande Group, senior note, Reg S, 8.75%, 6/28/25 | China | 200000 |  |  | 12836 |
| e,f | China South City Holdings Ltd., Reg S,<br>senior note, 9.00%, 12/11/24 | China | 195000 |  |  | 59239 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 9.00%, 7/20/24 | China | 190000 |  |  | 61367 |
| e | Country Garden Holdings Co. Ltd., Reg S,<br>senior secured bond, 5.625%, 1/14/30 | China | 200000 |  |  | 75734 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 7.25%, 4/08/26 | China | 200000 |  |  | 94520 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 2.70%, 7/12/26 | China | 400000 |  |  | 180088 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 5.125%, 1/14/27 | China | 200000 |  |  | 84146 |
| j | Easy Tactic Ltd., senior secured note, PIK, 6.50% (cash), 7/11/27 | China | 206048 |  |  | 24654 |
| e | Hunt Cos. Inc., senior secured note, 144A, 5.25%, 4/15/29 | United States | 431000 |  |  | 358167 |
| e | Logan Group Co. Ltd., senior note, Reg S, 5.25%, 10/19/25 | China | 200000 |  |  | 25750 |

---

 <br> franklintempleton.com Semiannual Report 43

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Value** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | | |
|  | **Real Estate Management & Development** (continued) | **Real Estate Management & Development** (continued) | **Real Estate Management & Development** (continued) | **Real Estate Management & Development** (continued) | **Real Estate Management & Development** (continued) |
| e | New Metro Global Ltd., senior note, Reg S,<br>4.625%, 10/15/25 | China | 200000 | $| 120000 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.50%, 5/02/26 | China | 200000 |  | 109000 |
| e,h | NWD Finance BVI Ltd., senior note, Reg S, 6.15% to 3/16/25, FRN thereafter, Perpetual | Hong Kong | 500000 |  | 420750 |
| e | Perfect Point Ventures Ltd., senior note, Reg S, 5.20%, 9/20/25 | Hong Kong | 400000 |  | 336600 |
| e | RKPF Overseas 2019 A Ltd., senior note, Reg S, 5.90%, 3/05/25 | China | 200000 |  | 112650 |
| e,h | Sino-Ocean Land Treasure III Ltd., senior note, Reg S, 6.876%, Perpetual | China | 330000 |  | 59565 |
| e | Sino-Ocean Land Treasure IV Ltd., senior bond, Reg S, 4.75%, 1/14/30 | China | 200000 |  | 72862 |
| e | Times China Holdings Ltd., senior secured note, Reg S, 5.55%, 6/04/24 | China | 200000 |  | 19080 |
| e | Wanda Properties Overseas Ltd., senior note, Reg S, 6.95%, 12/05/22 | China | 200000 |  | 198744 |
|  |  |  |  |  | 2592366 |
|  | **Road & Rail 0.1%** | **Road & Rail 0.1%** | **Road & Rail 0.1%** | **Road & Rail 0.1%** | **Road & Rail 0.1%** |
| e | SF Holding Investment Ltd., senior bond, Reg S, 3.125%, 11/17/31 | China | 400000 |  | 326380 |
| e | Uber Technologies Inc., senior note, 144A,<br>8.00%, 11/01/26 | United States | 20000 |  | 20255 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.50%, 9/15/27 | United States | 400000 |  | 402696 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.25%, 1/15/28 | United States | 40000 |  | 38649 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.50%, 8/15/29 | United States | 180000 |  | 157032 |
|  |  |  |  |  | 945012 |
|  | **Semiconductors & Semiconductor Equipment 0.1%** | **Semiconductors & Semiconductor Equipment 0.1%** | **Semiconductors & Semiconductor Equipment 0.1%** | **Semiconductors & Semiconductor Equipment 0.1%** | **Semiconductors & Semiconductor Equipment 0.1%** |
|  | Broadcom Inc., senior bond,<br>4.15%, 11/15/30 | United States | 120000 |  | 107898 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 144A, 3.137%, 11/15/35 | United States | 50000 |  | 37099 |
|  | Intel Corp., senior bond, 3.05%, 8/12/51 | United States | 512000 |  | 349320 |
|  | Micron Technology Inc., senior note, 6.75%, 11/01/29 | United States | 115000 |  | 119849 |
|  | NVIDIA Corp., senior bond, 2.85%, 4/01/30 | United States | 512000 |  | 452451 |
|  |  |  |  |  | 1066617 |
|  | **Software 0.2%** | **Software 0.2%** | **Software 0.2%** | **Software 0.2%** | **Software 0.2%** |
|  | Microsoft Corp., senior bond, 2.525%, 6/01/50 | United States | 512000 |  | 353383 |
|  | Oracle Corp., senior bond,<br>3.60%, 4/01/40 | United States | 287000 |  | 215924 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.60%, 4/01/50 | United States | 739000 |  | 515318 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.95%, 3/25/51 | United States | 125000 |  | 91641 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.85%, 4/01/60 | United States | 570000 |  | 385293 |
|  |  |  |  |  | 1561559 |
|  | **Specialty Retail 0.6%** | **Specialty Retail 0.6%** | **Specialty Retail 0.6%** | **Specialty Retail 0.6%** | **Specialty Retail 0.6%** |
| e | Abercrombie & Fitch Management Co., senior secured note, 144A, 8.75%, 7/15/25 | United States | 265000 |  | 264000 |
|  | Bath & Body Works Inc., senior bond,<br>6.875%, 11/01/35 | United States | 191000 |  | 173116 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.75%, 7/01/36 | United States | 248000 |  | 218085 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 144A, 6.625%, 10/01/30 | United States | 319000 |  | 299062 |
| e | Carvana Co., senior note, 144A,<br>5.625%, 10/01/25 | United States | 2123000 |  | 959055 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.50%, 4/15/27 | United States | 355000 |  | 128050 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 10/01/28 | United States | 507000 |  | 178804 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.875%, 9/01/29 | United States | 675000 |  | 226857 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.25%, 5/01/30 | United States | 2019000 |  | 860447 |

---

 <br> 44 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | |
|  | **Specialty Retail** (continued) | **Specialty Retail** (continued) | **Specialty Retail** (continued) | **Specialty Retail** (continued) |
| e | China Grand Automotive Services Ltd., E, senior note, Reg S, 9.125%, 1/30/24 | China | 333000 | 202298 |
| e | Douglas GMBH, senior secured note, Reg S, 6.00%, 4/08/26 | Germany | 2293000 | 1992033 |
| e | Guitar Center Inc., senior secured note, 144A, 8.50%, 1/15/26 | United States | 702000 | 615113 |
| e | LS Finance 2017 Ltd., senior note, Reg S,<br>4.80%, 6/18/26 | Hong Kong | 200000 | 129853 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; E, 4.875%, 7/15/24 | Hong Kong | 200000 | 169500 |
|  |  |  |  | 6416273 |
|  | **Technology Hardware, Storage & Peripherals 0.0%<sup>†</sup>** | **Technology Hardware, Storage & Peripherals 0.0%<sup>†</sup>** | **Technology Hardware, Storage & Peripherals 0.0%<sup>†</sup>** | **Technology Hardware, Storage & Peripherals 0.0%<sup>†</sup>** |
|  | CDW LLC / CDW Finance Corp., senior note,<br>4.25%, 4/01/28 | United States | 40000 | 36208 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.25%, 2/15/29 | United States | 55000 | 46710 |
|  | Western Digital Corp., senior note,<br>4.75%, 2/15/26 | United States | 75000 | 70781 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.85%, 2/01/29 | United States | 70000 | 55733 |
|  |  |  |  | 209432 |
|  | **Telecommunications 0.0%<sup>†</sup>** | **Telecommunications 0.0%<sup>†</sup>** | **Telecommunications 0.0%<sup>†</sup>** | **Telecommunications 0.0%<sup>†</sup>** |
|  | Embarq Corp., senior bond, 7.995%, 6/01/36 | United States | 437000 | 186420 |
|  | **Thrifts & Mortgage Finance 0.1%** | **Thrifts & Mortgage Finance 0.1%** | **Thrifts & Mortgage Finance 0.1%** | **Thrifts & Mortgage Finance 0.1%** |
| e | IIFL Finance Ltd., E, senior secured note, Reg S, 5.875%, 4/20/23 | India | 1300000 | 1284400 |
| e | Nationstar Mortgage Holdings Inc., senior bond, 144A, 5.75%, 11/15/31 | United States | 60000 | 48081 |
|  |  |  |  | 1332481 |
|  | **Tobacco 0.2%** | **Tobacco 0.2%** | **Tobacco 0.2%** | **Tobacco 0.2%** |
| b,e | Vector Group Ltd., senior note, 144A, 10.50%, 11/01/26 | United States | 1566000 | 1572115 |
|  | **Trading Companies & Distributors 0.0%<sup>†</sup>** | **Trading Companies & Distributors 0.0%<sup>†</sup>** | **Trading Companies & Distributors 0.0%<sup>†</sup>** | **Trading Companies & Distributors 0.0%<sup>†</sup>** |
|  | Aircastle Ltd.,<br><sup>e,h</sup> junior sub. note, 144A, 5.25% to 6/15/26, FRN thereafter, Perpetual | United States | 25000 | 18625 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 4.25%, 6/15/26 | United States | 170000 | 158601 |
|  |  |  |  | 177226 |
|  | **Transportation Infrastructure 0.0%<sup>†</sup>** |  |  |  |
| e | Adani Ports & Special Economic Zone Ltd., senior note, 144A, 4.20%, 8/04/27 | India | 200000 | 175363 |
|  | **Wireless Telecommunication Services 0.0%<sup>†</sup>** | **Wireless Telecommunication Services 0.0%<sup>†</sup>** | **Wireless Telecommunication Services 0.0%<sup>†</sup>** | **Wireless Telecommunication Services 0.0%<sup>†</sup>** |
| e | Softbank Group Corp., senior bond, Reg S, 5.25%, 7/06/31 | Japan | 200000 | 160000 |
|  | **Total Corporate Bonds and Notes<br>(Cost $154,514,246)** |  |  | 142139598 |
|  | **Corporate Bonds and Notes in Reorganization 0.6%** | **Corporate Bonds and Notes in Reorganization 0.6%** | **Corporate Bonds and Notes in Reorganization 0.6%** |  |
|  | **Electric Utilities 0.4%** | **Electric Utilities 0.4%** | **Electric Utilities 0.4%** | **Electric Utilities 0.4%** |
| e,k | Talen Energy Supply LLC, 144A,<br><sup>b</sup> senior note, 7.25%, 5/15/27 | United States | 3359000 | 3457782 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 6.625%, 1/15/28 | United States | 596000 | 604177 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 7.625%, 6/01/28 | United States | 436000 | 449625 |
|  |  |  |  | 4511584 |
|  | **Metals & Mining 0.0%<sup>†</sup>** | **Metals & Mining 0.0%<sup>†</sup>** | **Metals & Mining 0.0%<sup>†</sup>** | **Metals & Mining 0.0%<sup>†</sup>** |
| e,k | Samarco Mineracao SA, senior bond, Reg S,<br>4.125%, 11/01/22 | Brazil | 925000 | 413825 |

---

 <br> franklintempleton.com Semiannual Report 45

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** | **Value** |
|  | **Corporate Bonds and Notes in Reorganization** (continued) | **Corporate Bonds and Notes in Reorganization** (continued) | **Corporate Bonds and Notes in Reorganization** (continued) | | | |
|  | **Metals & Mining** (continued)**<sup>†</sup>** | **Metals & Mining** (continued)**<sup>†</sup>** | **Metals & Mining** (continued)**<sup>†</sup>** | **Metals & Mining** (continued)**<sup>†</sup>** | **Metals & Mining** (continued)**<sup>†</sup>** | **Metals & Mining** (continued)**<sup>†</sup>** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.75%, 10/24/23 | Brazil | 184000 |  | $| 94116 |
|  |  |  |  |  |  | 507941 |
|  | **Pharmaceuticals 0.1%** | **Pharmaceuticals 0.1%** | **Pharmaceuticals 0.1%** | **Pharmaceuticals 0.1%** | **Pharmaceuticals 0.1%** | **Pharmaceuticals 0.1%** |
| b,e,k | Par Pharmaceutical Inc., senior note, 144A, 7.50%, 4/01/27 | United States | 1105000 |  |  | 833540 |
|  | **Real Estate Management & Development 0.1%** | **Real Estate Management & Development 0.1%** | **Real Estate Management & Development 0.1%** | **Real Estate Management & Development 0.1%** | **Real Estate Management & Development 0.1%** | **Real Estate Management & Development 0.1%** |
| e,k | Kaisa Group Holdings Ltd., senior secured note, Reg S,<br>8.50%, 6/30/22 | China | 692000 |  |  | 72775 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.95%, 11/12/23 | China | 200000 |  |  | 19360 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.375%, 6/30/24 | China | 205000 |  |  | 19773 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.25%, 4/16/25 | China | 994000 |  |  | 95892 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.70%, 11/11/25 | China | 200000 |  |  | 19401 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.65%, 6/01/26 | China | 200000 |  |  | 19292 |
| e,k | Ronshine China Holdings Ltd., senior secured note, Reg S,<br>8.10%, 6/09/23 | China | 200000 |  |  | 9407 |
| e,k | Shimao Group Holdings Ltd., Reg S,<br>senior bond, 4.60%, 7/13/30 | China | 200000 |  |  | 21172 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 4.75%, 7/03/22 | China | 200000 |  |  | 23262 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 6.125%, 2/21/24 | China | 200000 |  |  | 20173 |
| e,k | Sunac China Holdings Ltd., Reg S,<br>senior note, 6.80%, 10/20/24 | China | 300000 |  |  | 38250 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 8.35%, 4/19/23 | China | 200000 |  |  | 23407 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 6.65%, 8/03/24 | China | 200000 |  |  | 23878 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 6.50%, 1/26/26 | China | 200000 |  |  | 24250 |
| e,k | Yuzhou Group Holdings Co. Ltd., senior secured note, Reg S,<br>8.375%, 10/30/24 | China | 200000 |  |  | 10412 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.70%, 2/20/25 | China | 200000 |  |  | 10500 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.85%, 8/12/26 | China | 205000 |  |  | 11638 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.35%, 1/13/27 | China | 400000 |  |  | 23702 |
| k | Zhenro Properties Group Ltd., senior note,<br>8.00%, 3/06/23 | China | 981000 |  |  | 34351 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> Reg S, 6.63%, 1/07/26 | China | 403000 |  |  | 14173 |
|  |  |  |  |  |  | 535068 |
|  | **Total Corporate Bonds and Notes in Reorganization (Cost $9,434,065)** |  |  |  |  | 6388133 |
| l,m | **Senior Floating Rate Interests 0.2%** |  |  |  |  |  |
|  | **Communications Equipment 0.0%<sup>†</sup>** |  |  |  |  |  |
| j | Riverbed Technology Inc., Exit Term Loan, PIK, 7.00% (cash), (1-Month USD LIBOR + 6.00%), 12/08/26 | United States | 137428 |  |  | 58112 |
|  | **Consumer Discretionary Services 0.1%** | **Consumer Discretionary Services 0.1%** | **Consumer Discretionary Services 0.1%** | **Consumer Discretionary Services 0.1%** | **Consumer Discretionary Services 0.1%** | **Consumer Discretionary Services 0.1%** |
|  | Travel Leaders Group LLC, Term Loan B, 8.071%, (1-Month USD LIBOR + 4.00%), 1/25/24 | United States | 477200 |  |  | 436141 |
|  | **Diversified Financial Services 0.0%<sup>†</sup>** | **Diversified Financial Services 0.0%<sup>†</sup>** | **Diversified Financial Services 0.0%<sup>†</sup>** | **Diversified Financial Services 0.0%<sup>†</sup>** | **Diversified Financial Services 0.0%<sup>†</sup>** | **Diversified Financial Services 0.0%<sup>†</sup>** |
|  | Ziggo BV, Term Loan H, 3.764%, (3-Month EURIBOR + 3.00%), 1/31/29 | United States | 115000 |  |  | 112375 |
|  | **Entertainment 0.0%<sup>†</sup>** |  |  |  |  |  |
|  | Playtika Holding Corp., Term Loan B, 6.821%, (1-Month USD LIBOR + 2.75%), 3/13/28 | United States | 151199 |  |  | 147702 |
|  | **Equity Real Estate Investment Trusts (REITs) 0.0%<sup>†</sup>** |  |  |  |  |  |
|  | McCarthy & Stone PLC, Term Loan B, 7.00%, (1-Month USD LIBOR + 7.00%), 12/16/25 | United Kingdom | 170938 | GBP |  | 178210 |

---

 <br> 46 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** |
| l,m | **Senior Floating Rate Interests** (continued) |  |  |  |  |
|  | **Food & Staples Retailing 0.0%<sup>†</sup>** |  |  |  |  |
| n | Upfield Group BV, Term Loan RC, 4.492%, (3-Month EURIBOR + 3.00%), 1/02/25 | Netherlands | 227457 |  | $198229 |
|  | **Health Care Equipment & Supplies 0.0%<sup>†</sup>** |  |  |  |  |
|  | Bausch & Lomb Corp., Initial Term Loan, 7.149%, (1-Month SOFR + 3.35%), 5/10/27 | United States | 192419 |  | 182943 |
|  | **Media 0.0%<sup>†</sup>** |  |  |  |  |
|  | Advantage Sales & Marketing Inc., Term Loan B1, 8.284%, (3-Month USD LIBOR + 4.50%), 10/28/27 | United States | 115805 |  | 93903 |
|  | Altice USA Inc., Term Loan B, 6.123%, (1-Month USD LIBOR + 2.25%), 1/15/26 | United States | 35172 |  | 33617 |
|  |  |  |  |  | 127520 |
|  | **Pharmaceuticals 0.0%<sup>†</sup>** |  |  |  |  |
| n | Bausch Health Cos. Inc., Term Loan B, 9.146%, (1-Month SOFR + 5.25%), 2/01/27 | United States | 225663 |  | 169106 |
|  | **Software 0.1%** |  |  |  |  |
| n | Citrix Systems Inc., Term Loan B, 8.153%, (1-Month SOFR + 4.50%), 3/30/29 | United States | 308266 |  | 280798 |
|  | **Textiles, Apparel & Luxury Goods 0.0%<sup>†</sup>** |  |  |  |  |
| n | Varsity Brands, Initial Term Loan, 7.571%, (1-Month USD LIBOR + 3.50%), 12/16/24 | United States | 27263 |  | 26229 |
|  | **Total Senior Floating Rate Interests<br>(Cost $2,200,109)** |  |  |  | 1917365 |
|  | **Foreign Government and Agency Securities 5.5%** | **Foreign Government and Agency Securities 5.5%** | **Foreign Government and Agency Securities 5.5%** |  |  |
| e | Export-Import Bank of India, E, senior bond, Reg S, 4.00%, 1/14/23 | India | 500000 |  | 499318 |
| e | Government of Abu Dhabi, senior bond, Reg S,<br>3.125%, 9/30/49 | United Arab Emirates | 1595000 |  | 1174255 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.70%, 9/02/70 | United Arab Emirates | 992000 |  | 614913 |
| e | Government of Angola, senior bond,<br>144A, 8.75%, 4/14/32 | Angola | 349000 |  | 315398 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reg S, 8.00%, 11/26/29 | Angola | 241000 |  | 219250 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reg S, 9.375%, 5/08/48 | Angola | 300000 |  | 251483 |
|  | Government of Argentina, senior bond,<br>3.875%, 1/09/28 | Argentina | 10646545 |  | 3212437 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.50%, 7/09/35 | Argentina | 3851885 |  | 905240 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.50%, 7/09/41 | Argentina | 2914585 |  | 795904 |
|  | Government of Colombia, senior bond,<br>2.25%, 4/18/29 | Colombia | 8477628092 | COP | 1461571 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B, 7.00%, 6/30/32 | Colombia | 14834900000 | COP | 2077964 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.00%, 4/20/33 | Colombia | 1500000 |  | 1484662 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B, 7.25%, 10/26/50 | Colombia | 8292400000 | COP | 978840 |
| e | Government of Dominican Republic, senior bond, Reg S, 5.875%, 1/30/60 | Dominican Republic | 584000 |  | 435810 |
| e | Government of Ecuador, senior bond, Reg S, 2.50%, 7/31/35 | Ecuador | 2042415 |  | 905605 |
| e | Government of Egypt, senior bond, Reg S,<br>7.903%, 2/21/48 | Egypt | 504000 |  | 327442 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.50%, 2/16/61 | Egypt | 1825000 |  | 1168120 |
| e | Government of El Salvador, senior bond, Reg S,<br>7.75%, 1/24/23 | El Salvador | 1470000 |  | 1381800 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.25%, 4/10/32 | El Salvador | 2066000 |  | 878050 |
| e | Government of Germany, senior bond, Reg S,<br>zero cpn., 2/15/32 | Germany | 388800 | EUR | 339623 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.70%, 8/15/31 | Germany | 287000 | EUR | 292342 |

---

 <br> franklintempleton.com Semiannual Report 47

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Principal Amount\*** | **Value** |
|  | **Foreign Government and Agency Securities** (continued) | **Foreign Government and Agency Securities** (continued) | **Foreign Government and Agency Securities** (continued) |  | | |
| e | Government of Ghana, senior bond, Reg S, 10.75%, 10/14/30 | Ghana | 3093000 |  |  | $2171286 |
| e | Government of Iraq, senior bond, Reg S, 5.80%, 1/15/28 | Iraq | 1618375 |  |  | 1456553 |
|  | Government of Italy, senior note, 2.375%, 10/17/24 | Italy | 350000 |  |  | 328469 |
|  | Government of Mexico, senior bond,<br>M, 7.75%, 5/29/31 | Mexico | 41430000 | <sup>o</sup> | MXN | 1953974 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S, 2.75%, 11/27/31 | Mexico | 44375529 | <sup>o</sup> | MXN | 2010661 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; M, 7.75%, 11/13/42 | Mexico | 21980000 | <sup>o</sup> | MXN | 975335 |
| e | Government of Nigeria, senior note, 144A, 8.375%, 3/24/29 | Nigeria | 530000 |  |  | 443207 |
| e | Government of Oman, senior bond, Reg S,<br>6.25%, 1/25/31 | Oman | 386000 |  |  | 385695 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.75%, 1/17/48 | Oman | 442000 |  |  | 406289 |
|  | Government of Peru, senior note, 8.20%, 8/12/26 | Peru | 2166000 |  |  | 593159 |
| e | Government of Qatar, Reg S,<br>senior bond, 4.40%, 4/16/50 | Qatar | 2141000 |  |  | 1961980 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 3.375%, 3/14/24 | Qatar | 1230000 |  |  | 1208454 |
|  | Government of South Africa, senior bond,<br>10.50%, 12/21/26 | South Africa | 16194525 |  | ZAR | 993874 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.25%, 3/31/32 | South Africa | 64098616 |  | ZAR | 3162654 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.50%, 1/31/37 | South Africa | 61016496 |  | ZAR | 2814926 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.75%, 2/28/48 | South Africa | 14354417 |  | ZAR | 653750 |
| e | Government of Tunisian Republic, senior note, Reg S,<br>6.75%, 10/31/23 | Tunisia | 569000 |  | EUR | 532418 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.625%, 2/17/24 | Tunisia | 1706000 |  | EUR | 1474766 |
|  | Government of Turkey,<br>senior bond, 5.75%, 5/11/47 | Turkey | 1931000 |  |  | 1322721 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> senior note, Reg S, 9.758%, 11/13/25 | Turkey | 2995000 |  |  | 3126031 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 9.875%, 1/15/28 | Turkey | 920000 |  |  | 962847 |
| e | Government of Ukraine, Reg S,<br>senior bond, 7.75%, 9/01/26 | Ukraine | 2041000 |  |  | 487864 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 7.375%, 9/25/34 | Ukraine | 1838000 |  |  | 397706 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 7.253%, 3/15/35 | Ukraine | 1125000 |  |  | 241884 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, zero cpn., 8/01/41 | Ukraine | 7606000 |  |  | 2333931 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 8.994%, 2/01/26 | Ukraine | 845000 |  |  | 206173 |
| e | Government of Zambia, senior bond, Reg S,<br>8.50%, 4/14/24 | Zambia | 1763000 |  |  | 822746 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.97%, 7/30/27 | Zambia | 1797000 |  |  | 829765 |
| e | Provincia de Buenos Aires, Reg S,<br><sup>p</sup> 144A, FRN, 72.792%, (ARS BADLAR + 3.75%), 4/12/25 | Argentina | 3670000 |  | ARS | 9555 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 5.25%, 9/01/37 | Argentina | 6299775 |  |  | 2122205 |
|  | **Total Foreign Government and Agency Securities (Cost $61,381,243)** |  |  |  |  | 56110905 |
|  | **U.S. Government and Agency Securities 1.4%** |  |  |  |  |  |
|  | U.S. Treasury Bond,<br>2.25%, 2/15/52 | United States | 251100 |  |  | 181410 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 5/15/52 | United States | 1325700 |  |  | 1102402 |
|  | U.S. Treasury Note,<br>1.375%, 8/31/23 | United States | 1095000 |  |  | 1067882 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.125%, 9/15/23 | United States | 480000 |  |  | 463049 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.375%, 9/30/23 | United States | 705000 |  |  | 685613 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 8/31/27 | United States | 4727500 |  |  | 4583644 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.125%, 10/31/27 | United States | 3008000 |  |  | 3046658 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 9/30/29 | United States | 267000 |  |  | 268898 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 10/31/29 | United States | 57000 |  |  | 57873 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.875%, 2/15/32 | United States | 358000 |  |  | 308355 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 5/15/32 | United States | 218200 |  |  | 204563 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.75%, 8/15/32 | United States | 1732900 |  |  | 1605369 |

---

 <br> 48 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** | **Value** |
|  | **U.S. Government and Agency Securities** (continued) | | | | | |
|  | U.S. Treasury Note, (continued)<br>4.125%, 11/15/32 | United States | 388100 |  | $| 403321 |
|  | **Total U.S. Government and Agency Securities (Cost $14,058,716)** |  |  |  |  | 13979037 |
|  | **Asset-Backed Securities and Commercial<br>Mortgage-Backed Securities 4.9%** | | | | | |
|  | **Diversified Financial Services 3.0%** | **Diversified Financial Services 3.0%** | **Diversified Financial Services 3.0%** | **Diversified Financial Services 3.0%** | **Diversified Financial Services 3.0%** | **Diversified Financial Services 3.0%** |
| e | AASET Trust, 144A,<br>2021-1A, A, 2.95%, 11/16/41 | United States | 207471 |  |  | 165594 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2021-1A, B, 3.80%, 11/16/41 | United States | 1219989 |  |  | 860768 |
| e | Accelerated Assets LLC, 2018-1, B, 144A, 4.51%, 12/02/33 | United States | 33197 |  |  | 31620 |
| e | Adams Outdoor Advertising LP, 2018-1, A, 144A, 4.81%, 11/15/48 | United States | 165772 |  |  | 157349 |
| e,m | AGL CLO 3 Ltd., 2020-3A, C, 144A, FRN, 6.229%, (3-Month USD LIBOR + 2.15%), 1/15/33 | United States | 285000 |  |  | 270280 |
| e | AIM Aviation Finance Ltd., 2015-1A, B1, 144A, 7.072%, 2/15/40 | United States | 170624 |  |  | 47763 |
| e,m | Arbor Realty Commercial Real Estate Notes Ltd., 2022-FL1, D, 144A, FRN, 6.218%, (SOFR + 3.00%), 1/15/37 | United States | 1000000 |  |  | 923125 |
| m | Argent Securities Inc., 2004-W3, M4, FRN, 3.447%, (1-Month USD LIBOR + 4.58%), 2/25/34 | United States | 102795 |  |  | 116024 |
| e | Avis Budget Rental Car Funding AESOP LLC, 2020-2A, C, 144A, 4.25%, 2/20/27 | United States | 100000 |  |  | 89332 |
| e,m | Battalion CLO VIII Ltd., 2020-8A, D1R2, 144A, FRN, 10.944%, (3-Month USD LIBOR + 6.75%), 7/18/30 | United States | 1500000 |  |  | 1239773 |
| q | Bear Stearns ALT-A Trust, 2006-3, 21A1, FRN, 3.169%, 5/25/36 | United States | 1011570 |  |  | 777211 |
| e,q | Binom Securitization Trust, 2022-RPL1, M1, 144A, FRN, 3.00%, 2/25/61 | United States | 160000 |  |  | 114832 |
| e | Black Diamond CLO Designated Activity Co., 2015-1, ER, Reg S, 6.29%, 10/03/29 | Ireland | 1330000 | EUR |  | 1248607 |
| e | Blackbird Capital Aircraft Lease Securitization Ltd., 2016-1A, A, 144A, 4.213%, 12/16/41 | United States | 169015 |  |  | 138381 |
| e,m | Catamaran CLO Ltd., 2014-2A, D, 144A, FRN, 9.044%, (3-Month USD LIBOR + 4.85%), 10/18/26 | United States | 1010665 |  |  | 970543 |
| e,m | CHCP Ltd., 2021-FL1, C, 144A, FRN, 6.078%, (SOFR + 2.21%), 2/15/38 | United States | 1000000 |  |  | 972858 |
|  | CHL Mortgage Pass-Through Trust,<br><sup>f</sup> 2004-4, M, 5.50%, 5/25/34 | United States | 663469 |  |  | 356394 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2006-21, A8, 5.75%, 2/25/37 | United States | 289650 |  |  | 144209 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>q</sup> 2006-HYB1, 2A2C, FRN, 2.967%, 3/20/36 | United States | 1072517 |  |  | 950192 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>q</sup> 2006-HYB4, 3B, FRN, 3.519%, 6/20/36 | United States | 1553115 |  |  | 1165450 |
| e,m | Connecticut Avenue Securities Trust, 144A, FRN,<br>2021-R01, 1B1, 6.621%, (SOFR + 3.10%), 10/25/41 | United States | 100000 |  |  | 92179 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2022-R07, 1B1, 10.347%, (SOFR + 6.80%), 6/25/42 | United States | 70003 |  |  | 71588 |
| e | CoreVest American Finance Trust, 2019-2, B, 144A, 3.424%, 6/15/52 | United States | 100000 |  |  | 88137 |
| e | CSMC Trust, 144A,<br><sup>q</sup> 2020-RPL3, A1, FRN, 2.691%, 3/25/60 | United States | 89316 |  |  | 84833 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2021-RPL1, A2, 3.937%, 9/27/60 | United States | 155000 |  |  | 145556 |
| e | Domino's Pizza Master Issuer LLC, 2018-1A, A2II, 144A, 4.328%, 7/25/48 | United States | 172800 |  |  | 161036 |
| e | Education Funding Trust Trust, 2020-A, A, 144A, 2.79%, 7/25/41 | United States | 72735 |  |  | 67290 |
| e,m | Eurosail-UK PLC, 2007-2X, C1A, FRN, Reg S, 1.384%, (3-Month EURIBOR + 0.45%), 3/13/45 | United Kingdom | 1220000 | EUR |  | 1031818 |
| e | Exeter Automobile Receivables Trust, 2020-2A, D, 144A, 4.73%, 4/15/26 | United States | 90000 |  |  | 89155 |
| q | Fannie Mae Grantor Trust, 2004-T5, AB7, FRN, 4.086%, 5/28/35 | United States | 273525 |  |  | 248098 |
| e,m | FHLMC, 2022-DNA1, M1B, 144A, FRN, 5.371%, (SOFR + 1.85%), 1/25/42 | United States | 78000 |  |  | 71453 |
| e | Flagship Credit Auto Trust, 2019-4, D, 144A, 3.12%, 1/15/26 | United States | 90000 |  |  | 85287 |

---

 <br> franklintempleton.com Semiannual Report 49

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Value** |
|  | **Asset-Backed Securities and Commercial<br>Mortgage-Backed Securities** (continued) | | | |
|  | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) |
| e,m | GSRPM Mortgage Loan Trust, 2002-1A, M1, 144A, FRN, 5.994%, (1-Month USD LIBOR + 1.95%), 11/25/31 | United States | 698678 | $680686 |
| e | Hertz Vehicle Financing III LLC, 2022-3A, D, 144A, 6.31%, 3/25/25 | United States | 250000 | 239402 |
| e | Kestrel Aircraft Funding Ltd., 2018-1A, A, 144A, 4.25%, 12/15/38 | United States | 197332 | 166610 |
| e,m | Marathon CLO V Ltd., 2017-5A, CR, 144A, FRN, 7.425%, (3-Month USD LIBOR + 2.75%), 11/21/27 | United States | 2200000 | 2122383 |
| e,m | Marathon CLO VI Ltd., 2018-6A, CR2, 144A, FRN, 8.15%, (3-Month USD LIBOR + 3.50%), 5/13/28 | United States | 1000000 | 968545 |
| e,m | MF1 Ltd., 2022-FL8, D, 144A, FRN, 6.068%, (SOFR + 2.65%), 2/19/37 | United States | 500000 | 461479 |
| e,q | Mill City Mortgage Loan Trust, 2021-NMR1, M3, 144A, FRN, 2.50%, 11/25/60 | United States | 100000 | 78500 |
| m | MortgageIT Mortgage Loan Trust, 2006-1, 2A1B, FRN, 4.604%, (1-Month USD LIBOR + 0.56%), 4/25/36 | United States | 552049 | 227379 |
| e | MVW Owner Trust, 2019-1A, C, 144A, 3.33%, 11/20/36 | United States | 36757 | 34123 |
| e,m | Neuberger Berman Loan Advisers CLO Ltd., 2018-27A, E, 144A, FRN, 9.279%, (3-Month USD LIBOR + 5.20%), 1/15/30 | United States | 350000 | 306216 |
| e,m | OCP CLO Ltd., 2021-21A, D, 144A, FRN, 7.193%, (3-Month USD LIBOR + 2.95%), 7/20/34 | United States | 330000 | 305107 |
| e,m | OHA Credit Funding 4 Ltd., 2021-4A, ER, 144A, FRN, 10.725%, (3-Month USD LIBOR + 6.40%), 10/22/36 | United States | 310000 | 283249 |
| e | OneMain Financial Issuance Trust, 2020-2A, C, 144A, 2.76%, 9/14/35 | United States | 100000 | 83703 |
| e | Prestige Auto Receivables Trust, 144A,<br>2019-1A, E, 3.90%, 5/15/26 | United States | 100000 | 97873 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2020-1A, E, 3.67%, 2/15/28 | United States | 100000 | 97147 |
| e | Progress Residential Trust, 144A,<br>2021-SFR4, F, 3.407%, 5/17/38 | United States | 230000 | 193323 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2021-SFR7, F, 3.834%, 8/17/40 | United States | 260000 | 211235 |
| m | Saxon Asset Securities Trust, 2002-3, M2, FRN, 6.631%, (1-Month USD LIBOR + 2.59%), 12/25/32 | United States | 1133472 | 978173 |
| e | SCF Equipment Leasing LLC, 2021-1A, E, 144A, 3.56%, 8/20/32 | United States | 100000 | 91018 |
| e,q | Security National Mortgage Loan Trust, 2004-1A, AF3, 144A, FRN, 6.42%, 6/25/32 | United States | 1483060 | 1110966 |
| e | Sierra Timeshare Receivables Funding LLC, 2021-1A, C, 144A, 1.79%, 11/20/37 | United States | 112300 | 102561 |
| e | S-Jets Ltd., 2017-1, A, 144A, 3.967%, 8/15/42 | Bermuda | 325995 | 251002 |
| m | SLM Private Credit Student Loan Trust, 2003-B, A3, FRN, 2.806%, (28-Day T-Bill + 1.00%), 3/15/33 | United States | 150000 | 146838 |
| m | Soundview Home Loan Trust, 2006-WF2, M3, FRN, 4.719%, (1-Month USD LIBOR + 0.68%), 12/25/36 | United States | 1749083 | 2200133 |
| e | Stack Infrastructure Issuer LLC, 2019-1A, A2, 144A, 4.54%, 2/25/44 | United States | 120313 | 117538 |
| e,m | Starwood Retail Property Trust, 2014-STAR, E, 144A, FRN, 8.276%, (1-Month USD LIBOR + 4.40%), 11/15/27 | United States | 200000 | 875 |
| e,q | Towd Point Mortgage Trust, 2018-5, M1, 144A, FRN, 3.25%, 7/25/58 | United States | 100000 | 74210 |
| e | VCAT LLC, 144A,<br>2021-NPL1, A1, 2.289%, 12/26/50 | United States | 43789 | 41980 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2021-NPL5, A1, 1.868%, 8/25/51 | United States | 77457 | 70420 |
| e,m | VMC Finance LLC, 144A, FRN,<br>2019-FL3, C, 5.961%, (1-Month USD LIBOR + 2.05%), 9/15/36 | United States | 880961 | 838561 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2019-FL3, D, 6.561%, (1-Month USD LIBOR + 2.65%), 9/15/36 | United States | 880961 | 818921 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2021-FL4, C, 6.189%, (1-Month USD LIBOR + 2.25%), 6/16/36 | United States | 1000000 | 973873 |
| e,q | WaMu Commercial Mortgage Securities Trust, 2007-SL2, G, 144A, FRN, 3.039%, 12/27/49 | United States | 2866082 | 2395121 |
| e | Wave Trust, 2017-1A, A, 144A, 3.844%, 11/15/42 | United States | 158141 | 119447 |

---

 <br> 50 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Value** | **Value** |
|  | **Asset-Backed Securities and Commercial<br>Mortgage-Backed Securities** (continued) | | | | |
|  | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) | **Diversified Financial Services** (continued) |
| q | Wells Fargo Mortgage Backed Securities Trust, 2007-AR6, A2, FRN, 4.243%, 10/25/37 | United States | 105498 | $| 92531 |
|  |  |  |  |  | 29957863 |
|  | **Equity Real Estate Investment Trusts (REITs) 0.0%<sup>†</sup>** |  |  |  |  |
| e | Diamond Resorts Owner Trust, 144A,<br>2018-1, C, 4.53%, 1/21/31 | United States | 24620 |  | 24049 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2019-1A, B, 3.53%, 2/20/32 | United States | 22862 |  | 22233 |
|  |  |  |  |  | 46282 |
|  | **Mortgage Real Estate Investment Trusts (REITs) 1.9%** | **Mortgage Real Estate Investment Trusts (REITs) 1.9%** | **Mortgage Real Estate Investment Trusts (REITs) 1.9%** | **Mortgage Real Estate Investment Trusts (REITs) 1.9%** | **Mortgage Real Estate Investment Trusts (REITs) 1.9%** |
| e | 510 Asset Backed Trust, 2021-NPL1, A1, 144A, 2.24%, 6/25/61 | United States | 108530 |  | 100646 |
| m | American Home Mortgage Investment Trust, 2006-1, 11A1, FRN, 4.324%, (1-Month USD LIBOR + 0.28%), 3/25/46 | United States | 122319 |  | 102648 |
|  | Banc of America Alternative Loan Trust, 2003-8, 1CB1, 5.50%, 10/25/33 | United States | 2878 |  | 2726 |
|  | Banc of America Funding Trust,<br>2003-1, B2, 6.00%, 5/20/33 | United States | 109737 |  | 72418 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2005-8, 1A1, 5.50%, 1/25/36 | United States | 261079 |  | 208693 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2007-4, 5A1, 5.50%, 11/25/34 | United States | 29235 |  | 25821 |
| q | Banc of America Mortgage Trust, 2005-A, 2A1, FRN, 2.542%, 2/25/35 | United States | 2074 |  | 1971 |
| e,m | BCAP LLC Trust, 2012-RR4, 9A7, 144A, FRN, 3.298%, (1-Month USD LIBOR + 0.08%), 11/26/36 | United States | 317854 |  | 300856 |
| q | Bear Stearns ARM Trust, 2007-4, 12A1, FRN, 3.231%, 5/25/37 | United States | 931406 |  | 850386 |
| e,m | BPR Trust, 2021-NRD, F, 144A, FRN, 10.681%, (SOFR + 6.87%), 12/15/23 | United States | 140000 |  | 128076 |
| e,m | BXMT Ltd., 144A, FRN,<br>2020-FL2, D, 5.939%, (SOFR + 2.06%), 2/15/38 | United States | 1350000 |  | 1310581 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2021-FL4, C, 5.625%, (1-Month USD LIBOR + 1.75%), 5/15/38 | United States | 2500000 |  | 2340395 |
| e | CIM Trust, 2021-NR2, A1, 144A, 2.568%, 7/25/59 | United States | 126723 |  | 116040 |
| e,q | Citigroup Commercial Mortgage Trust, 2014-GC21, D, 144A, FRN, 5.11%, 5/10/47 | United States | 330000 |  | 294234 |
| e,q | Citigroup Mortgage Loan Trust, 2009-10, 6A2, 144A, FRN, 4.019%, 9/25/34 | United States | 18491 |  | 17962 |
|  | Countrywide Alternative Loan Trust,<br>2003-22CB, 1A1, 5.75%, 12/25/33 | United States | 23070 |  | 22360 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2004-16CB, 1A1, 5.50%, 7/25/34 | United States | 10742 |  | 10229 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2004-16CB, 3A1, 5.50%, 8/25/34 | United States | 10407 |  | 9981 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2004-28CB, 3A1, 6.00%, 1/25/35 | United States | 174879 |  | 154124 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2004-3T1, M, 6.00%, 5/25/34 | United States | 186043 |  | 124391 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2004-J10, 2CB1, 6.00%, 9/25/34 | United States | 28680 |  | 27302 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2005-J1, 2A1, 5.50%, 2/25/25 | United States | 951 |  | 917 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2006-25CB, A1, 6.00%, 10/25/36 | United States | 1597404 |  | 902989 |
| q | Countrywide Home Loans Mortgage Pass-Through Trust, 2004-HYB4, 2A1, FRN, 3.894%, 9/20/34 | United States | 33868 |  | 30294 |
|  | Credit Suisse First Boston Mortgage Securities Corp.,<br>2002-10, 1B, 7.50%, 5/25/32 | United States | 148824 |  | 111015 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2003-27, 4A4, 5.75%, 11/25/33 | United States | 11091 |  | 10708 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2005-8, 1A3, 5.25%, 9/25/35 | United States | 78453 |  | 64283 |
| e | CSMC OA LLC, 2014-USA, E, 144A, 4.373%, 9/15/37 | United States | 400000 |  | 266630 |
| m | DSLA Mortgage Loan Trust, 2005-AR5, 2A1A, FRN, 4.599%, (1-Month USD LIBOR + 0.66%), 9/19/45 | United States | 27453 |  | 17243 |
| e,m | Federal Home Loan Mortgage Corp., 2021-DNA6, B1, 144A, FRN, 6.947%, (SOFR + 3.40%), 10/25/41 | United States | 98429 |  | 88723 |
| e,m | FHLMC, 144A, FRN,<br>2021-DNA5, B2, 9.021%, (SOFR + 5.50%), 1/25/34 | United States | 1500000 |  | 1164561 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2021-HQA1, B2, 8.521%, (SOFR + 5.00%), 8/25/33 | United States | 1000000 |  | 760961 |

---

 <br> franklintempleton.com Semiannual Report 51

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Value** |
|  | **Asset-Backed Securities and Commercial<br>Mortgage-Backed Securities** (continued) | | | |
|  | **Mortgage Real Estate Investment Trusts (REITs)** (continued) | **Mortgage Real Estate Investment Trusts (REITs)** (continued) | **Mortgage Real Estate Investment Trusts (REITs)** (continued) | **Mortgage Real Estate Investment Trusts (REITs)** (continued) |
| q | GS Mortgage Securities Trust, FRN,<br><sup>e</sup> 2011-GC5, C, 144A, 5.299%, 8/10/44 | United States | 100000 | $78107 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 2011-GC5, D, 144A, 5.299%, 8/10/44 | United States | 195000 | 83319 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2014-GC18, B, 4.885%, 1/10/47 | United States | 100000 | 91659 |
|  | GSR Mortgage Loan Trust,<br>2005-4F, 6A1, 6.50%, 2/25/35 | United States | 7093 | 6623 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>q</sup> 2005-AR6, 4A5, FRN, 4.144%, 9/25/35 | United States | 20929 | 19058 |
| m | Harborview Mortgage Loan Trust, 2004-11, 2A2A, FRN, 4.579%, (1-Month USD LIBOR + 0.64%), 1/19/35 | United States | 58363 | 48102 |
|  | IndyMac INDX Mortgage Loan Trust, FRN,<br><sup>q</sup> 2004-AR15, B1, 2.874%, 2/25/35 | United States | 1439275 | 1089560 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>m</sup> 2004-AR7, A5, 5.264%, (1-Month USD LIBOR + 1.22%), 9/25/34 | United States | 29283 | 25160 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>q</sup> 2005-AR11, A3, 3.185%, 8/25/35 | United States | 34120 | 27254 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>m</sup> 2006-AR2, 2A1, 4.464%, (1-Month USD LIBOR + 0.42%), 2/25/46 | United States | 151152 | 106193 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>q</sup> 2006-AR3, 3A1A, 3.106%, 4/25/36 | United States | 1532999 | 1247361 |
| e,q | Jefferies Resecuritization Trust, 2009-R12, 2A2, 144A, FRN, 2.574%, 1/26/35 | United States | 121878 | 115686 |
|  | JPMorgan Mortgage Trust,<br>2004-S1, 2A1, 6.00%, 9/25/34 | United States | 49029 | 46857 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>q</sup> 2006-A3, 2B1, FRN, 3.637%, 4/25/35 | United States | 1752064 | 1116545 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>q</sup> 2007-A1, 4A2, FRN, 3.94%, 7/25/35 | United States | 837 | 815 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e,q</sup> 2020-2, B4, 144A, FRN, 3.823%, 7/25/50 | United States | 965029 | 757410 |
| m | Lehman XS Trust, 2006-2N, 1A1, FRN, 4.564%, (1-Month USD LIBOR + 0.52%), 2/25/46 | United States | 24594 | 21169 |
|  | MASTR Alternative Loan Trust,<br>2004-2, 8A4, 5.50%, 3/25/34 | United States | 100271 | 87003 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2004-8, 2A1, 6.00%, 9/25/34 | United States | 21408 | 20253 |
| q | Merrill Lynch Mortgage Backed Securities Trust Series, 2007-3, 3A1, FRN, 3.448%, 6/25/37 | United States | 1990163 | 1262467 |
| q | Merrill Lynch Mortgage Investors MLCC, 2006-2, 2A, FRN, 3.574%, 5/25/36 | United States | 1056 | 1019 |
| q | Morgan Stanley Bank of America Merrill Lynch Trust, 2013-C11, B, FRN, 4.545%, 8/15/46 | United States | 200000 | 143405 |
| e,q | Morgan Stanley Capital I Trust, 2011-C2, E, 144A, FRN, 5.385%, 6/15/44 | United States | 150000 | 120354 |
| e,q | MSBAM Commercial Mortgage Securities Trust, 2012-CKSV, C, 144A, FRN, 4.423%, 10/15/30 | United States | 340000 | 249964 |
| e,q | PRPM LLC, 2021-2, A2, 144A, FRN, 3.77%, 3/25/26 | United States | 130000 | 111050 |
| q | RFMSI Trust, 2005-SA1, 1A1, FRN, 3.692%, 3/25/35 | United States | 77905 | 41757 |
| q | Structured Adjustable Rate Mortgage Loan Trust Series, 2006-8, 1A2, FRN, 3.639%, 9/25/36 | United States | 154529 | 103864 |
| m | Structured ARM Loan Trust, 2005-14, A1, FRN, 4.354%, (1-Month USD LIBOR + 0.31%), 7/25/35 | United States | 153127 | 97993 |
| e | Toorak Mortgage Corp. Ltd., 2021-1, A1, 144A, 2.24%, 6/25/24 | United States | 190000 | 179303 |
| e | VOLT XCII LLC, 2021-NPL1, A1, 144A, 1.893%, 2/27/51 | United States | 87846 | 78229 |
| e | VOLT XCIV LLC, 2021-NPL3, A2, 144A, 4.949%, 2/27/51 | United States | 215000 | 182204 |
| m | WaMu Mortgage Pass-Through Certificates Series Trust, 2005-AR11, B1, FRN, 4.959%, (1-Month USD LIBOR + 0.92%), 8/25/45 | United States | 2173736 | 1729463 |
|  | Wells Fargo Commercial Mortgage Trust,<br><sup>q</sup> 2013-LC12, B, FRN, 4.431%, 7/15/46 | United States | 190000 | 179564 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2014-LC16, C, 4.458%, 8/15/50 | United States | 215000 | 135715 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>q</sup> 2016-C36, B, FRN, 3.671%, 11/15/59 | United States | 100000 | 84407 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>q</sup> 2016-C36, C, FRN, 4.272%, 11/15/59 | United States | 100000 | 77580 |
| q | WFRBS Commercial Mortgage Trust, FRN,<br><sup>e</sup> 2011-C3, D, 144A, 5.42%, 3/15/44 | United States | 199819 | 83924 |

---

 <br> 52 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Value** |
|  | **Asset-Backed Securities and Commercial<br>Mortgage-Backed Securities** (continued) | | | |
|  | **Mortgage Real Estate Investment Trusts (REITs)** (continued) | **Mortgage Real Estate Investment Trusts (REITs)** (continued) | **Mortgage Real Estate Investment Trusts (REITs)** (continued) | **Mortgage Real Estate Investment Trusts (REITs)** (continued) |
| q | WFRBS Commercial Mortgage Trust, FRN, (continued) |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 2011-C4, E, 144A, 4.988%, 6/15/44 | United States | 120000 | $96612 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2012-C7, C, 4.806%, 6/15/45 | United States | 20674 | 15027 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 2012-C7, D, 144A, 4.806%, 6/15/45 | United States | 130000 | 53300 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 2012-C7, E, 144A, 4.806%, 6/15/45 | United States | 72385 | 5807 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>q</sup> 2014-C24, B, 4.204%, 11/15/47 | United States | 100000 | 90903 |
|  |  |  |  | 19752209 |
|  | **Total Asset-Backed Securities and Commercial Mortgage-Backed Securities (Cost $54,570,739)** |  |  | 49756354 |
|  |  | **Number of<br>Contracts** | **Notional Amount<sup>#</sup>** |  |
|  | **Options Purchased 0.3%** |  |  |  |
|  | **Calls – Exchange-Traded 0.1%** |  |  |  |
|  | 3 Month EURIBOR, December Strike Price 97.88 EUR, Expires 12/16/22 | 40 | 9704500 | 260 |
|  | 3 Month EURIBOR, December Strike Price 98.63 EUR, Expires 12/19/22 | 50 | 12228125 |  |
|  | 3 Month EURIBOR, December Strike Price 99.88 EUR, Expires 12/19/22 | 80 | 19565000 |  |
|  | 3 Month EURIBOR, March Strike Price 98.50 EUR, Expires 3/10/23 | 80 | 19428000 | 3642 |
|  | 3 Month SOFR, December Strike Price $98.19, Expires 12/16/22 | 89 | 21239850 | 556 |
|  | Alibaba Group Holding Ltd., January Strike Price $90.00, Expires 1/20/23 | 35 | 306460 | 24675 |
|  | Arrival SA, December Strike Price $1.50, Expires 12/16/22 | 66 | 2104 | 198 |
|  | Carvana Co., December Strike Price $20.00, Expires 12/16/22 | 126 | 97146 | 504 |
|  | Carvana Co., March Strike Price $20.00, Expires 3/17/23 | 63 | 48573 | 3024 |
|  | CBOE Volatility Index, December Strike Price $27.00, Expires 12/21/22 | 161 | 331338 | 10948 |
|  | CBOE Volatility Index, December Strike Price $30.00, Expires 12/21/22 | 758 | 1559964 | 32594 |
|  | CBOE Volatility Index, January Strike Price $27.00, Expires 1/18/23 | 50 | 102900 | 9200 |
|  | CBOE Volatility Index, January Strike Price $28.00, Expires 1/18/23 | 46 | 94668 | 7728 |
|  | CBOE Volatility Index, January Strike Price $29.00, Expires 1/18/23 | 100 | 205800 | 14600 |
|  | CBOE Volatility Index, February Strike Price $28.00, Expires 2/15/23 | 46 | 94668 | 10994 |
|  | Cinemark Holdings Inc., December Strike Price $15.00, Expires 12/16/22 | 26 | 35386 | 546 |
|  | Cinemark Holdings Inc., January Strike Price $15.00, Expires 1/20/23 | 45 | 61245 | 2925 |
|  | Coupa Software Inc., December Strike Price $75.00, Expires 12/16/22 | 5 | 31620 | 675 |
|  | Crown Holdings Inc., April Strike Price $75.00, Expires 4/21/23 | 37 | 304177 | 44770 |
|  | E-mini S&P 500, December Strike Price $4,100.00, Expires 12/16/22 | 2 | 408125 | 6225 |
|  | E-mini S&P 500, December Strike Price $4,400.00, Expires 12/16/22 | 2 | 408125 | 185 |
|  | E-mini S&P 500, March Strike Price $4,200.00, Expires 3/17/23 | 1 | 205763 | 6913 |
|  | Eurodollar 1 Yr., December Strike Price $96.63, Expires 12/16/22 | 40 | 9532000 | 500 |
|  | Flex Ltd., January Strike Price $19.00, Expires 1/20/23 | 491 | 1079218 | 157120 |
|  | Gol Linhas Aereas Inteligentes SA, January Strike Price $5.00, Expires 1/20/23 | 65 | 21385 | 455 |
|  | The Greenbrier Cos. Inc., December Strike Price $40.00, Expires 12/16/22 | 15 | 57585 | 945 |
|  | Helix Energy Solutions Group Inc., December Strike Price $5.00, Expires 12/16/22 | 90 | 57420 | 12600 |
|  | IMM Eurodollar, June Strike Price $95.50, Expires 6/19/23 | 20 | 4741500 | 5875 |
|  | IMM Eurodollar, June Strike Price $96.50, Expires 6/19/23 | 20 | 4741500 | 1875 |
|  | iShares 20+ Year Treasury Bond ETF, January Strike Price $102.00, Expires 1/20/23 | 105 | 1078665 | 33075 |

---

 <br> franklintempleton.com Semiannual Report 53

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | |
|:---|:---|:---|:---|
| | **Number of<br>Contracts** | **Notional Amount<sup>#</sup>** | **Value** |
| **Options Purchased** (continued) | | | |
| **Calls – Exchange-Traded** (continued) | | | |
|  iShares 20+ Year Treasury Bond ETF, January Strike Price $105.00, Expires 1/20/23 | 426 | 4376298 | $76680 |
|  iShares China Large-Cap ETF, December Strike Price $27.00, Expires 12/16/22 | 2237 | 6299392 | 348972 |
|  JD.com Inc., December Strike Price $67.50, Expires 12/16/22 | 70 | 400260 | 6650 |
|  Magnachip Semiconductor Corp., December Strike Price $17.50, Expires 12/16/22 | 142 | 143704 | 2130 |
|  Marvell Technology Inc., December Strike Price $50.00, Expires 12/16/22 | 95 | 441940 | 12255 |
|  Meta Platforms Inc., March Strike Price $150.00, Expires 3/17/23 | 133 | 1570730 | 47215 |
|  Okta Inc., December Strike Price $55.00, Expires 12/09/22 | 8 | 42656 | 3136 |
|  Repay Holdings Corp., December Strike Price $12.50, Expires 12/16/22 | 33 | 29238 | 825 |
|  S&P 500 Index, December Strike Price $4,100.00, Expires 12/30/22 | 14 | 5712154 | 117866 |
|  S&P 500 Index, December Strike Price $4,150.00, Expires 12/30/22 | 1 | 408011 | 6060 |
|  S&P 500 Index, December Strike Price $4,200.00, Expires 12/30/22 | 32 | 13056352 | 129600 |
|  Sirius XM Holdings Inc., December Strike Price $6.75, Expires 12/16/22 | 139 | 90211 | 1390 |
|  Sirius XM Holdings Inc., January Strike Price $6.75, Expires 1/20/23 | 26 | 16874 | 338 |
|  Snowflake Inc., December Strike Price $170.00, Expires 12/02/22 | 14 | 200060 | 2310 |
|  Snowflake Inc., December Strike Price $175.00, Expires 12/02/22 | 13 | 185770 | 1495 |
|  SPDR S&P Oil & Gas Exploration & Production ETF, January Strike Price $160.00, Expires 1/20/23 | 75 | 1140900 | 44625 |
|  Transocean Ltd., December Strike Price $4.00, Expires 12/16/22 | 500 | 212500 | 18000 |
|  Transocean Ltd., December Strike Price $4.50, Expires 12/16/22 | 518 | 220150 | 6216 |
|  U.S. Treasury 5 Yr. Note, December Strike Price $109.00, Expires 12/23/22 | 20 | 2171400 | 8906 |
|  VanEck Semiconductor ETF, December Strike Price $220.00, Expires 12/02/22 | 29 | 660417 | 23780 |
|  Vodafone Group PLC, January Strike Price $12.00, Expires 1/20/23 | 78 | 87594 | 1560 |
|  Vodafone Group PLC, January Strike Price $13.00, Expires 1/20/23 | 76 | 85348 | 608 |
|  Vodafone Group PLC, January Strike Price $14.00, Expires 1/20/23 | 79 | 88717 | 237 |
|  Vodafone Group PLC, January Strike Price $16.00, Expires 1/20/23 | 192 | 215616 | 384 |
|  Workiva Inc., January Strike Price $80.00, Expires 1/20/23 | 77 | 620312 | 50204 |
|  |  |  | 1305049 |
| **Calls – Over-the-Counter 0.0%<sup>†</sup>** |  |  |  |
|  JD.com Inc., Counterparty GSCO, January Strike Price $55.00, Expires 1/20/23 | 35 | 200130 | 25550 |
|  S&P ASX 200 Index, Counterparty JPHQ, December Strike Price 7,196.00 AUD, Expires 12/23/22 | 427 | 1767631 | 45896 |
|  S&P ASX 200 Index, Counterparty JPHQ, December Strike Price 7,258.00 AUD, Expires 12/28/22 | 203 | 840349 | 17373 |
|  |  |  | 88819 |
| **Currency Options 0.0%<sup>†</sup>** |  |  |  |
|  USD/INR, Counterparty JPHQ, March Strike Price 84.00 INR, Expires 3/15/23 | 1 | 600000 | 3247 |
|  USD/INR, Counterparty JPHQ, March Strike Price 86.00 INR, Expires 3/15/23 | 1 | 2400000 | 6111 |
|  USD/JPY, Counterparty JPHQ, December Strike Price 147.00 JPY, Expires 12/21/22 | 1 | 2000000 | 903 |
|  USD/PHP, Counterparty JPHQ, March Strike Price 60.00 PHP, Expires 3/15/23 | 1 | 1300000 | 3290 |
|  |  |  | 13551 |
| **Puts – Exchange-Traded 0.2%** |  |  |  |
|  1 Year SOFR, December Strike Price $94.88, Expires 12/16/22 | 54 | 12903300 | 675 |
|  1 Year SOFR, December Strike Price $95.38, Expires 12/16/22 | 54 | 12903300 | 9113 |

---

 <br> 54 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | |
|:---|:---|:---|:---|
| | **Number of<br>Contracts** | **Notional Amount<sup>#</sup>** | **Value** |
| **Options Purchased** (continued) | | | |
| **Puts – Exchange-Traded** (continued) | | | |
|  3 Month EURIBOR, December Strike Price 98.38 EUR, Expires 12/19/22 | 18 | 4402125 | $25755 |
|  3 Month EURIBOR, December Strike Price 98.63 EUR, Expires 12/19/22 | 4 | 978250 | 8325 |
|  3 Month EURIBOR, December Strike Price 100.13 EUR, Expires 12/19/22 | 40 | 9782500 | 239338 |
|  3 Month SOFR, December Strike Price $94.75, Expires 12/16/22 | 96 | 22910400 | 600 |
|  3 Month SOFR, December Strike Price $95.25, Expires 12/16/22 | 96 | 22910400 | 1200 |
|  8x8 Inc., January Strike Price $2.50, Expires 1/20/23 | 72 | 30816 | 900 |
|  Activision Blizzard Inc., January Strike Price $70.00, Expires 1/19/24 | 389 | 2876655 | 268410 |
|  Activision Blizzard Inc., January Strike Price $75.00, Expires 1/19/24 | 53 | 391935 | 47435 |
|  American Airlines Group Inc., January Strike Price $10.00, Expires 1/20/23 | 40 | 57720 | 440 |
|  American Airlines Group Inc., January Strike Price $13.00, Expires 1/20/23 | 43 | 62049 | 2193 |
|  Amyris Inc., December Strike Price $1.50, Expires 12/16/22 | 3 | 519 | 45 |
|  Amyris Inc., January Strike Price $2.00, Expires 1/20/23 | 87 | 15051 | 4785 |
|  ARK Innovation ETF, December Strike Price $34.00, Expires 12/16/22 | 178 | 667144 | 10502 |
|  Atlas Corp., January Strike Price $12.50, Expires 1/20/23 | 144 | 221328 | 2160 |
|  Blackstone Inc., February Strike Price $85.00, Expires 2/17/23 | 132 | 1208196 | 65076 |
|  CBOE Volatility Index, December Strike Price $27.00, Expires 12/21/22 | 304 | 625632 | 168720 |
|  CBOE Volatility Index, January Strike Price $27.00, Expires 1/18/23 | 93 | 191394 | 39525 |
|  Danimer Scientific Inc., January Strike Price $2.50, Expires 1/20/23 | 70 | 18620 | 2450 |
|  Deere & Co., December Strike Price $310.00, Expires 12/16/22 | 29 | 1278900 | 145 |
|  Deere & Co., March Strike Price $300.00, Expires 3/17/23 | 18 | 793800 | 3708 |
|  Dick's Sporting Good Inc., December Strike Price $85.00, Expires 12/16/22 | 115 | 1375170 | 1150 |
|  Dick's Sporting Good Inc., March Strike Price $70.00, Expires 3/17/23 | 50 | 597900 | 5350 |
|  E-mini S&P 500, December Strike Price $3,900.00, Expires 12/16/22 | 2 | 408125 | 1875 |
|  E-mini S&P 500, March Strike Price $2,600.00, Expires 3/17/23 | 13 | 2674913 | 3575 |
|  E-mini S&P 500, March Strike Price $2,800.00, Expires 3/17/23 | 1 | 205763 | 387 |
|  E-mini S&P 500, March Strike Price $3,600.00, Expires 3/17/23 | 13 | 2674913 | 33312 |
|  Euro-Bund, December Strike Price 141.00 EUR, Expires 12/23/22 | 10 | 1402300 | 19875 |
|  Euro-Bund, February Strike Price 138.00 EUR, Expires 2/24/23 | 10 | 1402300 | 20916 |
|  Eurodollar 1 Yr., December Strike Price $94.50, Expires 12/16/22 | 30 | 7149000 | 188 |
|  Eurodollar 1 Yr., June Strike Price $95.00, Expires 6/16/23 | 40 | 9612500 | 10750 |
|  Eurodollar 1 Yr., June Strike Price $96.00, Expires 6/16/23 | 40 | 9612500 | 40500 |
|  Gol Linhas Aereas Inteligentes SA, January Strike Price $3.00, Expires 1/20/23 | 346 | 113834 | 8650 |
|  Gossamer Bio Inc., December Strike Price $7.50, Expires 12/16/22 | 16 | 13696 | 4720 |
|  Hollysys Automation Technologies Ltd., January Strike Price $15.00, Expires 1/20/23 | 531 | 908010 | 42480 |
|  Horizon Therapeutics PLC, January Strike Price $80.00, Expires 1/20/23 | 164 | 1644756 | 36900 |
|  Horizon Therapeutics PLC, February Strike Price $85.00, Expires 2/17/23 | 164 | 1644756 | 82000 |
|  HubSpot Inc., December Strike Price $260.00, Expires 12/16/22 | 15 | 454545 | 5250 |
|  IMM Eurodollar, December Strike Price $96.00, Expires 12/19/22 | 17 | 4041856 | 38144 |
|  IMM Eurodollar, December Strike Price $97.50, Expires 12/19/22 | 17 | 4041856 | 101894 |
|  IMM Eurodollar, June Strike Price $94.63, Expires 6/19/23 | 40 | 9483000 | 22750 |
|  iShares Expanded Tech-Software Sector ETF, December Strike Price $255.00, Expires 12/16/22 | 32 | 870048 | 10560 |
|  iShares iBoxx High Yield Corporate Bond ETF, December Strike Price $68.00, Expires 12/16/22 | 4000 | 30264000 | 16000 |
|  iShares iBoxx High Yield Corporate Bond ETF, January Strike Price $61.00, Expires 1/20/23 | 776 | 5871216 | 4656 |
|  JB Hunt Transport Services Inc., January Strike Price $165.00, Expires 1/20/23 | 65 | 1195285 | 22750 |

---

 <br> franklintempleton.com Semiannual Report 55

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Number of<br>Contracts** | **Notional Amount<sup>#</sup>** | **Notional Amount<sup>#</sup>** | **Value** |
| **Options Purchased** (continued) | | | | |
| **Puts – Exchange-Traded** (continued) | | | | |
|  Marvell Technology Inc., December Strike Price $38.00, Expires 12/02/22 | 98 | 455896 |  | $882 |
|  Russell 2000 Index, December Strike Price $1,550.00, Expires 12/01/22 | 1 | 188658 |  | 8 |
|  S&P 500 Index, March Strike Price $3,445.00, Expires 3/31/23 | 15 | 6120165 |  | 60600 |
|  Shaw Communications Inc., December Strike Price $25.00, Expires 12/16/22 | 378 | 1031562 |  | 1890 |
|  Shaw Communications Inc., December Strike Price 31.00 CAD, Expires 12/16/22 | 105 | 385455 |  | 4605 |
|  Shift Technologies Inc., January Strike Price $2.50, Expires 1/20/23 | 16 | 444 |  | 3760 |
|  Shift Technologies Inc., February Strike Price $2.50, Expires 2/17/23 | 81 | 2248 |  | 18832 |
|  SPDR S&P 500 ETF Trust, December Strike Price $365.00, Expires 12/16/22 | 38 | 1549184 |  | 1216 |
|  Tenneco Inc., January Strike Price $12.00, Expires 1/20/23 | 488 | 975512 |  | 2440 |
|  Tesla Inc., April Strike Price $100.00, Expires 4/21/23 | 132 | 2570040 |  | 35508 |
|  Turquoise Hill Resources Ltd., December Strike Price $27.00, Expires 12/16/22 | 97 | 305259 |  | 970 |
|  Turquoise Hill Resources Ltd., January Strike Price $27.00, Expires 1/20/23 | 9 | 28323 |  | 270 |
|  U.S. Treasury 10 Yr. Note, December Strike Price $108.00, Expires 12/23/22 | 20 | 2270000 |  | 313 |
|  U.S. Treasury 10 Yr. Note, December Strike Price $113.00, Expires 12/23/22 | 10 | 1135000 |  | 7031 |
|  U.S. Treasury 5 Yr. Note, December Strike Price $107.00, Expires 12/23/22 | 73 | 7925610 |  | 10836 |
|  U.S. Treasury 5 Yr. Note, February Strike Price $107.50, Expires 2/24/23 | 20 | 2171400 |  | 14063 |
|  Upstart Holdings Inc., March Strike Price $10.00, Expires 3/17/23 | 133 | 260015 |  | 13433 |
|  UserTesting Inc., December Strike Price $7.50, Expires 12/16/22 | 66 | 48972 |  | 825 |
|  UserTesting Inc., February Strike Price $7.50, Expires 2/17/23 | 608 | 451136 |  | 62320 |
|  Vnet Group Inc., January Strike Price $5.00, Expires 1/20/23 | 408 | 204408 |  | 24480 |
|  Vodafone Group PLC, January Strike Price 0.95 GBP, Expires 1/20/23 | 1166 | 107085440 |  | 77293 |
|  Vodafone Group PLC, March Strike Price 0.95 GBP, Expires 3/17/23 | 1519 | 139504960 |  | 132731 |
|  |  |  |  | 1910438 |
| **Puts – Over-the-Counter 0.0%<sup>†</sup>** |  |  |  |  |
|  DJ EURO STOXX 50 Index, Counterparty BZWS, December Strike Price 3,450.00 EUR, Expires 12/16/22 | 21 | 832591 |  | 568 |
|  DJ EURO STOXX 50 Index, Counterparty BZWS, December Strike Price 3,750.00 EUR, Expires 12/16/22 | 26 | 1030827 |  | 3490 |
|  H & M Hennes & Mauritz AB, Counterparty CITI, December Strike Price 114.00 SEK, Expires 12/16/22 | 81 | 944946 |  | 2354 |
|  H & M Hennes & Mauritz AB, Counterparty CITI, March Strike Price 100.00 SEK, Expires 3/17/23 | 109 | 1271594 |  | 3322 |
|  S&P ASX 200 Index, Counterparty JPHQ, December Strike Price 7,196.00 AUD, Expires 12/23/22 | 427 | 1767631 |  | 16608 |
|  S&P ASX 200 Index, Counterparty JPHQ, December Strike Price 7,258.00 AUD, Expires 12/28/22 | 203 | 840349 |  | 11567 |
|  Softbank Group, Counterparty GSCO, March Strike Price 4,540.00 JPY, Expires 3/09/23 | 5531 | 32920512 |  | 3551 |
|  |  |  |  | 41460 |
| **Currency Options 0.0%<sup>†</sup>** |  |  |  |  |
|  AUD/USD, Counterparty JPHQ, March Strike Price $0.64, Expires 3/15/23 | 1 | 4000000 | AUD | 23930 |
|  EUR/SGD, Counterparty JPHQ, March Strike Price 1.35 SGD, Expires 3/15/23 | 1 | 2400000 | EUR | 5349 |

---

 <br> 56 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Number of<br>Contracts** | **Notional Amount<sup>#</sup>** | **Notional Amount<sup>#</sup>** | **Value** |
|  | **Options Purchased** (continued) | | | | |
|  | **Currency Options** (continued)**<sup>†</sup>** | | | | |
|  | GBP/USD, Counterparty JPHQ, March Strike Price $1.14, Expires 3/15/23 | 1 | 2000000 | GBP | $20866 |
|  | USD/JPY, Counterparty GSCO, March Strike Price 126.00 JPY, Expires 3/14/23 | 1 | 6306000 |  | 37594 |
|  |  |  |  |  | 87739 |
|  | **Total Options Purchased (Cost $4,456,270)** |  |  |  | 3447056 |
|  | **Total Investments before Short Term Investments (Cost $751,934,292)** |  |  |  | 782131275 |
|  |  | **Country** | **Shares** | | |
|  | **Short Term Investments 15.7%** | | | | |
|  | **Money Market Funds 15.2%** | | | | |
| r,s | Dreyfus Government Cash Management, Institutional, 3.62% | United States | 57486267 |  | 57486267 |
| r | Fidelity Investments Money Market Government Portfolio, Institutional, 3.58% | United States | 97303407 |  | 97303407 |
|  | **Total Money Market Funds (Cost $154,789,674)** |  |  |  | 154789674 |
| t | **Investments from Cash Collateral Received for<br>Loaned Securities 0.4%** |  |  |  |  |
|  | **Money Market Funds 0.3%** |  |  |  |  |
| r,u | Institutional Fiduciary Trust Money Market Portfolio, 3.446% | United States | 2661000 |  | 2661000 |
|  |  |  | **Principal Amount\*** | **Principal Amount\*** |  |
|  | **Repurchase Agreements 0.1%** |  |  |  |  |
| v | Joint Repurchase Agreement, 3.79%, 12/01/22 (Maturity Value $646,953) | United States | 646885 |  | 646885 |
|  | J.P. Morgan Securities LLC Collateralized by U.S. Government Agency Obligations, 0.00%-4.37%, 7/31/23-7/31/24 (valued at $659,823) |  |  |  |  |
|  | **Total Investments from Cash Collateral Received for Loaned Securities (Cost $3,307,885)** |  |  |  | 3307885 |
|  | **U.S. Government and Agency Securities**<br>**(Cost $1,365,000) 0.1%** | **U.S. Government and Agency Securities**<br>**(Cost $1,365,000) 0.1%** | **U.S. Government and Agency Securities**<br>**(Cost $1,365,000) 0.1%** | **U.S. Government and Agency Securities**<br>**(Cost $1,365,000) 0.1%** | **U.S. Government and Agency Securities**<br>**(Cost $1,365,000) 0.1%** |
| w | Federal Home Loan Bank Discount Notes, 12/01/22 | United States | 1365000 |  | 1365000 |
|  | **Total Investments (Cost $911,396,851) 92.6%** |  |  |  | 941593834 |
|  | **Options Written (0.2)%** |  |  |  | (2343346) |
|  | **Securities Sold Short (22.0)%** |  |  |  | (223678274) |
|  | **Other Assets, less Liabilities 29.6%** |  |  |  | 300984662 |
|  | **Net Assets 100.0%** |  |  |  | $1016556876 |
|  |  | **Number of<br>Contracts** | **Notional Amount<sup>#</sup>** | **Notional Amount<sup>#</sup>** |  |
| x | **Options Written (0.2)%** |  |  |  |  |
|  | **Calls – Exchange-Traded (0.2)%** |  |  |  |  |
|  | 3 Month EURIBOR, December Strike Price 98.38 EUR, Expires 12/16/22 | 60 | 14556750 |  |  |
|  | 3 Month EURIBOR, December Strike Price 99.00 EUR, Expires 12/19/22 | 100 | 24456250 |  |  |
|  | 3 Month EURIBOR, December Strike Price 99.63 EUR, Expires 12/19/22 | 40 | 9782500 |  |  |
|  | 3 Month EURIBOR, December Strike Price 100.13 EUR, Expires 12/19/22 | 40 | 9782500 |  |  |

---

 <br> franklintempleton.com Semiannual Report 57

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Number of<br>Contracts** | **Notional Amount#** | **Value** |
| x | **Options Written** (continued) |  |  |  |
|  | **Calls – Exchange-Traded** (continued) |  |  |  |
|  | 3 Month EURIBOR, March Strike Price 99.00 EUR, Expires 3/10/23 | 80 | 19428000 | $(1041) |
|  | Activision Blizzard Inc., June Strike Price $90.00, Expires 6/16/23 | 447 | 3305565 | (74649) |
|  | Biohaven Pharmaceutical Holding Co. Ltd., December Strike Price $150.00, Expires 12/16/22 | 29 | 220110 | (8990) |
|  | CME 3-Month SOFR Futures, December Strike Price $98.50, Expires 12/16/22 | 89 | 21239850 | (556) |
|  | CME 3-Month SOFR Futures, December Strike Price $98.88, Expires 12/16/22 | 89 | 21239850 | (556) |
|  | The Coca-Cola Co., December Strike Price $62.50, Expires 12/16/22 | 1 | 6361 | (164) |
|  | Crown Holdings Inc., April Strike Price $95.00, Expires 4/21/23 | 37 | 304177 | (9805) |
|  | E-mini S&P 500, December Strike Price $4,250.00, Expires 12/16/22 | 4 | 816250 | (2750) |
|  | E-mini S&P 500, March Strike Price $4,000.00, Expires 3/17/23 | 1 | 205763 | (12713) |
|  | Eurodollar 1 Yr., December Strike Price $97.19, Expires 12/16/22 | 60 | 14298000 | (750) |
|  | IMM Eurodollar, June Strike Price $96.00, Expires 6/19/23 | 40 | 9483000 | (6500) |
|  | iShares 20+ Year Treasury Bond ETF, January Strike Price $110.00, Expires 1/20/23 | 317 | 3256541 | (23141) |
|  | iShares 20+ Year Treasury Bond ETF, January Strike Price $115.00, Expires 1/20/23 | 426 | 4376298 | (12354) |
|  | iShares iBoxx High Yield Corporate Bond ETF, December Strike Price $74.00, Expires 12/16/22 | 4000 | 30264000 | (644000) |
|  | Magnachip Semiconductor Corp., December Strike Price $22.50, Expires 12/16/22 | 142 | 143704 | (710) |
|  | Newmont Corp., December Strike Price $47.50, Expires 12/16/22 | 1 | 4747 | (121) |
|  | NextEra Energy Inc., December Strike Price $82.50, Expires 12/16/22 | 1 | 8470 | (320) |
|  | S&P 500 Index, December Strike Price $4,225.00, Expires 12/30/22 | 11 | 4488121 | (35695) |
|  | S&P 500 Index, December Strike Price $4,250.00, Expires 12/30/22 | 23 | 9384253 | (58995) |
|  | S&P 500 Index, December Strike Price $4,300.00, Expires 12/30/22 | 32 | 13056352 | (49984) |
|  | S&P 500 Index, March Strike Price $4,100.00, Expires 3/31/23 | 15 | 6120165 | (230835) |
|  | U.S. Treasury 5 Yr. Note, December Strike Price $110.00, Expires 12/23/22 | 20 | 2171400 | (3281) |
|  | The Williams Cos. Inc., December Strike Price $34.00, Expires 12/16/22 | 1 | 3470 | (100) |
|  | Workiva Inc., January Strike Price $90.00, Expires 1/20/23 | 77 | 620312 | (21175) |
|  |  |  |  | (1199185) |
|  | **Calls – Over-the-Counter (0.0)%<sup>†</sup>** |  |  |  |
|  | **Currency Options (0.0)%<sup>†</sup>** |  |  |  |
|  | USD/INR, Counterparty JPHQ, March Strike Price 90.00 INR, Expires 3/15/23 | 1 | 600000 | (455) |
|  | USD/INR, Counterparty JPHQ, March Strike Price 95.00 INR, Expires 3/15/23 | 1 | 2400000 | (583) |
|  |  |  |  | (1038) |
|  | **Puts – Exchange-Traded (0.0)%<sup>†</sup>** |  |  |  |
|  | 1 Year SOFR, December Strike Price $95.13, Expires 12/16/22 | 108 | 25806600 | (5400) |
|  | 3 Month EURIBOR, December Strike Price 98.88 EUR, Expires 12/19/22 | 22 | 5380375 | (60095) |
|  | 3 Month EURIBOR, December Strike Price 99.25 EUR, Expires 12/19/22 | 20 | 4891250 | (74143) |
|  | 3 Month EURIBOR, December Strike Price 99.88 EUR, Expires 12/19/22 | 39 | 9537938 | (207990) |
|  | 3 Month SOFR, December Strike Price $95.00, Expires 12/16/22 | 192 | 45820800 | (1200) |
|  | Activision Blizzard Inc., January Strike Price $55.00, Expires 1/19/24 | 53 | 391935 | (12190) |
|  | Activision Blizzard Inc., January Strike Price $60.00, Expires 1/19/24 | 389 | 2876655 | (155600) |
|  | Blackstone Inc., February Strike Price $75.00, Expires 2/17/23 | 132 | 1208196 | (29304) |
|  | Coupa Software Inc., December Strike Price $60.00, Expires 12/16/22 | 5 | 31620 | (1950) |
|  | Crown Holdings Inc., April Strike Price $70.00, Expires 4/21/23 | 37 | 304177 | (9435) |
|  | E-mini S&P 500, December Strike Price $3,700.00, Expires 12/16/22 | 4 | 816250 | (740) |
|  | E-mini S&P 500, March Strike Price $3,000.00, Expires 3/17/23 | 13 | 2674913 | (7312) |
|  | E-mini S&P 500, March Strike Price $3,200.00, Expires 3/17/23 | 13 | 2674913 | (11537) |

---

 <br> 58 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Number of<br>Contracts** | **Notional Amount#** | **Notional Amount#** | **Value** | **Value** |
| x | **Options Written** (continued) |  |  |  |  |  |
|  | **Puts – Exchange-Traded** (continued)**<sup>†</sup>** |  |  |  |  |  |
|  | Euro-Bund, December Strike Price 138.00 EUR, Expires 12/23/22 | 15 | 2103450 |  | $| (10146) |
|  | Euro-Bund, February Strike Price 134.00 EUR, Expires 2/24/23 | 15 | 2103450 |  |  | (14204) |
|  | Eurodollar 1 Yr., December Strike Price $94.75, Expires 12/16/22 | 30 | 7149000 |  |  | (750) |
|  | Eurodollar 1 Yr., June Strike Price $95.50, Expires 6/16/23 | 80 | 19225000 |  |  | (43500) |
|  | Gossamer Bio Inc., December Strike Price $12.50, Expires 12/16/22 | 16 | 13696 |  |  | (11440) |
|  | Horizon Therapeutics PLC, January Strike Price $85.00, Expires 1/20/23 | 164 | 1644756 |  |  | (52480) |
|  | Horizon Therapeutics PLC, February Strike Price $80.00, Expires 2/17/23 | 164 | 1644756 |  |  | (45920) |
|  | IMM Eurodollar, December Strike Price $96.50, Expires 12/19/22 | 32 | 7608200 |  |  | (111800) |
|  | IMM Eurodollar, June Strike Price $94.13, Expires 6/19/23 | 60 | 14224500 |  |  | (11625) |
|  | iShares 20+ Year Treasury Bond ETF, January Strike Price $96.00, Expires 1/20/23 | 74 | 760202 |  |  | (6512) |
|  | iShares 20+ Year Treasury Bond ETF, January Strike Price $97.00, Expires 1/20/23 | 404 | 4150292 |  |  | (42824) |
|  | iShares iBoxx High Yield Corporate Bond ETF, December Strike Price $63.00, Expires 12/16/22 | 4000 | 30264000 |  |  | (8000) |
|  | Manchester United PLC, January Strike Price $18.00, Expires 1/20/23 | 39 | 86190 |  |  | (2340) |
|  | Manchester United PLC, January Strike Price $19.00, Expires 1/20/23 | 146 | 322660 |  |  | (13140) |
|  | S&P 500 Index, December Strike Price $3,600.00, Expires 12/30/22 | 34 | 13872374 |  |  | (18700) |
|  | S&P 500 Index, December Strike Price $3,700.00, Expires 12/30/22 | 34 | 13872374 |  |  | (30940) |
|  | S&P 500 Index, December Strike Price $3,750.00, Expires 12/30/22 | 11 | 4488121 |  |  | (13618) |
|  | Sirius XM Holdings Inc., January Strike Price $6.75, Expires 1/20/23 | 348 | 225852 |  |  | (18270) |
|  | U.S. Treasury 10 Yr. Note, December Strike Price $110.00, Expires 12/23/22 | 30 | 3405000 |  |  | (2344) |
|  | U.S. Treasury 5 Yr. Note, December Strike Price $105.00, Expires 12/23/22 | 24 | 2605680 |  |  | (563) |
|  | U.S. Treasury 5 Yr. Note, February Strike Price $105.50, Expires 2/24/23 | 30 | 3257100 |  |  | (7500) |
|  | Vodafone Group PLC, January Strike Price 0.85 GBP, Expires 1/20/23 | 1166 | 107085440 |  |  | (14053) |
|  | Vodafone Group PLC, January Strike Price $9.00, Expires 1/20/23 | 78 | 87594 |  |  | (312) |
|  | Vodafone Group PLC, January Strike Price $10.00, Expires 1/20/23 | 79 | 88717 |  |  | (790) |
|  | Vodafone Group PLC, January Strike Price $12.00, Expires 1/20/23 | 192 | 215616 |  |  | (20352) |
|  | Vodafone Group PLC, March Strike Price 0.85 GBP, Expires 3/17/23 | 1519 | 139504960 |  |  | (45769) |
|  |  |  |  |  |  | (1124788) |
|  | **Puts – Over-the-Counter (0.0)%<sup>†</sup>** |  |  |  |  |  |
|  | DJ EURO STOXX 50 Index, Counterparty BZWS, December Strike Price 3,550.00 EUR, Expires 12/16/22 | 26 | 1030827 |  |  | (1055) |
|  | **Currency Options (0.0)%<sup>†</sup>** | **Currency Options (0.0)%<sup>†</sup>** | **Currency Options (0.0)%<sup>†</sup>** | **Currency Options (0.0)%<sup>†</sup>** | **Currency Options (0.0)%<sup>†</sup>** | **Currency Options (0.0)%<sup>†</sup>** |
|  | AUD/USD, Counterparty JPHQ, March Strike Price $0.60, Expires 3/15/23 | 1 | 4000000 | AUD |  | (9150) |
|  | EUR/SGD, Counterparty JPHQ, March Strike Price 1.29 SGD, Expires 3/15/23 | 1 | 2400000 | EUR |  | (1260) |
|  | GBP/USD, Counterparty JPHQ, March Strike Price $1.07, Expires 3/15/23 | 1 | 2000000 | GBP |  | (6870) |
|  |  |  |  |  |  | (17280) |
|  | **Total Options Written (Premiums Received $1,956,522)** |  |  |  |  | (2343346) |
|  |  | **Country** | **Shares** |  |  |  |
| <sup>y</sup> | **Securities Sold Short (22.0)%** |  |  |  |  |  |
|  | **Common Stocks (9.1)%** |  |  |  |  |  |
|  | **Aerospace & Defense (0.0)%<sup>†</sup>** | **Aerospace & Defense (0.0)%<sup>†</sup>** | **Aerospace & Defense (0.0)%<sup>†</sup>** | **Aerospace & Defense (0.0)%<sup>†</sup>** | **Aerospace & Defense (0.0)%<sup>†</sup>** | **Aerospace & Defense (0.0)%<sup>†</sup>** |
|  | Virgin Galactic Holdings Inc. | United States | 21670 |  |  | (110300) |

---

 <br> franklintempleton.com Semiannual Report 59

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Shares** | **Value** |
| <sup>y</sup> | **Securities Sold Short** (continued) |  |  |  |
|  | **Common Stocks** (continued) |  |  |  |
|  | **Air Freight & Logistics (0.0)%<sup>†</sup>** | **Air Freight & Logistics (0.0)%<sup>†</sup>** | **Air Freight & Logistics (0.0)%<sup>†</sup>** | **Air Freight & Logistics (0.0)%<sup>†</sup>** |
|  | Zto Express Cayman Inc., ADR | China | 5908 | $(148114) |
|  | **Airlines (0.4)%** | **Airlines (0.4)%** | **Airlines (0.4)%** | **Airlines (0.4)%** |
|  | American Airlines Group Inc. | United States | 31455 | (453896) |
|  | Cathay Pacific Airways Ltd. | Hong Kong | 667600 | (693960) |
|  | Copa Holdings SA, A | Panama | 29629 | (2596389) |
|  | GOL Linhas Aereas Inteligentes SA, ADR | Brazil | 20675 | (68021) |
|  | Jetblue Airways Corp. | United States | 7949 | (63274) |
|  |  |  |  | (3875540) |
|  | **Auto Components (0.0)%<sup>†</sup>** | **Auto Components (0.0)%<sup>†</sup>** | **Auto Components (0.0)%<sup>†</sup>** | **Auto Components (0.0)%<sup>†</sup>** |
|  | Luminar Technologies Inc. | United States | 18210 | (139488) |
|  | Quantumscape Corp., A | United States | 17167 | (128581) |
|  |  |  |  | (268069) |
|  | **Automobiles (1.0)%** | **Automobiles (1.0)%** | **Automobiles (1.0)%** | **Automobiles (1.0)%** |
|  | Fisker Inc. | United States | 33390 | (258439) |
|  | Ford Motor Co. | United States | 25022 | (347806) |
|  | Li Auto Inc., ADR | China | 36364 | (800008) |
|  | Lucid Group Inc. | United States | 124957 | (1267064) |
|  | Rivian Automotive Inc., A | United States | 121075 | (3879243) |
|  | Tesla Inc. | United States | 20673 | (4025033) |
|  |  |  |  | (10577593) |
|  | **Banks (0.1)%** | **Banks (0.1)%** | **Banks (0.1)%** | **Banks (0.1)%** |
|  | SVB Financial Group | United States | 2499 | (579218) |
|  | **Biotechnology (0.7)%** | **Biotechnology (0.7)%** | **Biotechnology (0.7)%** | **Biotechnology (0.7)%** |
|  | Apellis Pharmaceuticals Inc. | United States | 16884 | (843018) |
|  | Avid Bioservices Inc. | United States | 27001 | (422836) |
|  | Biohaven Ltd. | United States | 6798 | (107544) |
|  | Coherus Biosciences Inc. | United States | 34107 | (233974) |
|  | Dynavax Technologies Corp. | United States | 117358 | (1456413) |
|  | Gossamer Bio Inc. | United States | 38281 | (327685) |
|  | Halozyme Therapeutics Inc. | United States | 3302 | (189073) |
|  | Insmed Inc. | United States | 29688 | (548931) |
|  | Intercept Pharmaceuticals Inc. | United States | 48943 | (729740) |
|  | Ionis Pharmaceuticals Inc. | United States | 2330 | (95041) |
|  | Karyopharm Therapeutics Inc. | United States | 28434 | (150416) |
|  | Mannkind Corp. | United States | 252072 | (1179697) |
|  | Pharming Group NV | Netherlands | 106214 | (137614) |
|  | Travere Therapeutics Inc. | United States | 18670 | (375827) |
|  |  |  |  | (6797809) |
|  | **Capital Markets (0.3)%** | **Capital Markets (0.3)%** | **Capital Markets (0.3)%** | **Capital Markets (0.3)%** |
|  | Ares Capital Corp. | United States | 105648 | (2075983) |
|  | Coinbase Global Inc., A | United States | 5410 | (247400) |
|  | Owl Rock Capital Corp. | United States | 99475 | (1284222) |
|  |  |  |  | (3607605) |
|  | **Chemicals (0.3)%** | **Chemicals (0.3)%** | **Chemicals (0.3)%** | **Chemicals (0.3)%** |
|  | Albemarle Corp. | United States | 5077 | (1411355) |
|  | Amyris Inc. | United States | 74336 | (128601) |
|  | Danimer Scientific Inc. | United States | 25184 | (66990) |
|  | Livent Corp. | United States | 3544 | (99197) |
|  | The Sherwin-Williams Co. | United States | 5074 | (1264339) |
|  |  |  |  | (2970482) |
|  | **Communications Equipment (0.0)%<sup>†</sup>** | **Communications Equipment (0.0)%<sup>†</sup>** | **Communications Equipment (0.0)%<sup>†</sup>** | **Communications Equipment (0.0)%<sup>†</sup>** |
|  | Infinera Corp. | United States | 18356 | (123903) |

---

 <br> 60 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Shares** | **Value** |
| <sup>y</sup> | **Securities Sold Short** (continued) |  |  |  |
|  | **Common Stocks** (continued) |  |  |  |
|  | **Construction & Engineering (0.1)%** | **Construction & Engineering (0.1)%** | **Construction & Engineering (0.1)%** | **Construction & Engineering (0.1)%** |
|  | Granite Construction Inc. | United States | 13279 | $(478309) |
|  | Mastec Inc. | United States | 2414 | (219264) |
|  |  |  |  | (697573) |
|  | **Consumer Finance (0.1)%** | **Consumer Finance (0.1)%** | **Consumer Finance (0.1)%** | **Consumer Finance (0.1)%** |
|  | EZCORP Inc., A | United States | 73314 | (734606) |
|  | PRA Group Inc. | United States | 3908 | (134357) |
|  |  |  |  | (868963) |
|  | **Diversified Telecommunication Services (0.1)%** | **Diversified Telecommunication Services (0.1)%** | **Diversified Telecommunication Services (0.1)%** | **Diversified Telecommunication Services (0.1)%** |
|  | Bandwidth Inc., A | United States | 2335 | (53378) |
|  | Radius Global Infrastructure Inc., A | United States | 19010 | (240666) |
|  | TELUS Corp. | Canada | 43877 | (934199) |
|  |  |  |  | (1228243) |
|  | **Electric Utilities (0.6)%** | **Electric Utilities (0.6)%** | **Electric Utilities (0.6)%** | **Electric Utilities (0.6)%** |
|  | American Electric Power Co. Inc. | United States | 22762 | (2203362) |
|  | NRG Energy Inc. | United States | 35654 | (1513512) |
|  | The Southern Co. | United States | 35511 | (2401964) |
|  |  |  |  | (6118838) |
|  | **Electrical Equipment (0.3)%** | **Electrical Equipment (0.3)%** | **Electrical Equipment (0.3)%** | **Electrical Equipment (0.3)%** |
|  | Array Technologies Inc. | United States | 25061 | (524777) |
|  | Bloom Energy Corp., A | United States | 58344 | (1242144) |
|  | Plug Power Inc. | United States | 110647 | (1765926) |
|  |  |  |  | (3532847) |
|  | **Electronic Equipment, Instruments & Components (0.3)%** | **Electronic Equipment, Instruments & Components (0.3)%** | **Electronic Equipment, Instruments & Components (0.3)%** | **Electronic Equipment, Instruments & Components (0.3)%** |
|  | Coherent Corp. | United States | 7158 | (262484) |
|  | Jabil Inc. | United States | 33390 | (2410424) |
|  | PAR Technology Corp. | United States | 4682 | (114101) |
|  | Vishay Intertechnology Inc. | United States | 3956 | (91146) |
|  |  |  |  | (2878155) |
|  | **Energy Equipment & Services (0.1)%** | **Energy Equipment & Services (0.1)%** | **Energy Equipment & Services (0.1)%** | **Energy Equipment & Services (0.1)%** |
|  | Helix Energy Solutions Group Inc. | United States | 128896 | (822357) |
|  | **Entertainment (0.2)%** | **Entertainment (0.2)%** | **Entertainment (0.2)%** | **Entertainment (0.2)%** |
|  | Cinemark Holdings Inc. | United States | 53110 | (722827) |
|  | The Marcus Corp. | United States | 56286 | (914085) |
|  | Sea Ltd., ADR | Singapore | 109 | (6362) |
|  |  |  |  | (1643274) |
|  | **Equity Real Estate Investment Trusts (REITs) (0.1)%** | **Equity Real Estate Investment Trusts (REITs) (0.1)%** | **Equity Real Estate Investment Trusts (REITs) (0.1)%** | **Equity Real Estate Investment Trusts (REITs) (0.1)%** |
|  | Braemar Hotels & Resorts Inc. | United States | 59557 | (219765) |
|  | Pebblebrook Hotel Trust | United States | 29809 | (496320) |
|  | Summit Hotel Properties Inc. | United States | 15462 | (132200) |
|  |  |  |  | (848285) |
|  | **Food & Staples Retailing (0.1)%** | **Food & Staples Retailing (0.1)%** | **Food & Staples Retailing (0.1)%** | **Food & Staples Retailing (0.1)%** |
|  | The Chefs' Warehouse Inc. | United States | 25098 | (975057) |
|  | **Food Products (0.0)%<sup>†</sup>** | **Food Products (0.0)%<sup>†</sup>** | **Food Products (0.0)%<sup>†</sup>** | **Food Products (0.0)%<sup>†</sup>** |
|  | Post Holdings Inc. | United States | 2185 | (204538) |
|  | **Gas Utilities (0.4)%** | **Gas Utilities (0.4)%** | **Gas Utilities (0.4)%** | **Gas Utilities (0.4)%** |
|  | Atmos Energy Corp. | United States | 31132 | (3742066) |
|  | **Health Care Equipment & Supplies (0.3)%** | **Health Care Equipment & Supplies (0.3)%** | **Health Care Equipment & Supplies (0.3)%** | **Health Care Equipment & Supplies (0.3)%** |
|  | Cutera Inc. | United States | 29025 | (1381010) |
|  | NuVasive Inc. | United States | 901 | (34995) |
|  | Orthofix Medical Inc. | United States | 41788 | (751766) |

---

 <br> franklintempleton.com Semiannual Report 61

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Shares** | **Value** |
| <sup>y</sup> | **Securities Sold Short** (continued) |  |  |  |
|  | **Common Stocks** (continued) |  |  |  |
|  | **Health Care Equipment & Supplies** (continued) | **Health Care Equipment & Supplies** (continued) | **Health Care Equipment & Supplies** (continued) | **Health Care Equipment & Supplies** (continued) |
|  | Varex Imaging Corp. | United States | 40855 | (867760) |
|  |  |  |  | (3035531) |
|  | **Health Care Providers & Services (0.1)%** | **Health Care Providers & Services (0.1)%** | **Health Care Providers & Services (0.1)%** | **Health Care Providers & Services (0.1)%** |
|  | PetIQ Inc., A | United States | 12350 | (146594) |
|  | Signify Health Inc., A | United States | 14861 | (425322) |
|  |  |  |  | (571916) |
|  | **Health Care Technology (0.1)%** | **Health Care Technology (0.1)%** | **Health Care Technology (0.1)%** | **Health Care Technology (0.1)%** |
|  | Evolent Health Inc., A | United States | 14804 | (426207) |
|  | Health Catalyst Inc. | United States | 5857 | (61381) |
|  | Nextgen Healthcare Inc. | United States | 10287 | (213970) |
|  |  |  |  | (701558) |
|  | **Hotels, Restaurants & Leisure (0.2)%** | **Hotels, Restaurants & Leisure (0.2)%** | **Hotels, Restaurants & Leisure (0.2)%** | **Hotels, Restaurants & Leisure (0.2)%** |
|  | Airbnb Inc., A | United States | 219 | (22368) |
|  | Carnival Corp. | United States | 24476 | (243047) |
|  | Norwegian Cruise Line Holdings Ltd. | United States | 26532 | (436186) |
|  | Royal Caribbean Cruises Ltd. | United States | 22533 | (1350403) |
|  |  |  |  | (2052004) |
|  | **Household Durables (0.1)%** | **Household Durables (0.1)%** | **Household Durables (0.1)%** | **Household Durables (0.1)%** |
|  | iRobot Corp. | United States | 11301 | (588669) |
|  | **Independent Power & Renewable Electricity Producers (0.0)%<sup>†</sup>** | **Independent Power & Renewable Electricity Producers (0.0)%<sup>†</sup>** | **Independent Power & Renewable Electricity Producers (0.0)%<sup>†</sup>** | **Independent Power & Renewable Electricity Producers (0.0)%<sup>†</sup>** |
|  | Sunnova Energy International Inc. | United States | 14370 | (328067) |
|  | **Interactive Media & Services (0.0)%<sup>†</sup>** | **Interactive Media & Services (0.0)%<sup>†</sup>** | **Interactive Media & Services (0.0)%<sup>†</sup>** | **Interactive Media & Services (0.0)%<sup>†</sup>** |
|  | fuboTV Inc. | United States | 1017 | (2837) |
|  | Match Group Inc. | United States | 4087 | (206639) |
|  | Snap Inc., A | United States | 10164 | (104791) |
|  |  |  |  | (314267) |
|  | **Internet & Direct Marketing Retail (0.1)%** | **Internet & Direct Marketing Retail (0.1)%** | **Internet & Direct Marketing Retail (0.1)%** | **Internet & Direct Marketing Retail (0.1)%** |
| e | Delivery Hero SE, 144A | South Korea | 3753 | (164279) |
|  | Etsy Inc. | United States | 647 | (85462) |
|  | Fiverr International Ltd. | Israel | 245 | (8617) |
|  | Groupon Inc., A | United States | 6567 | (54703) |
| e | Just Eat Takeaway.com NV, 144A | United Kingdom | 1677 | (38853) |
|  | Porch Group Inc. | United States | 9356 | (19086) |
|  | Wayfair Inc., A | United States | 9908 | (363029) |
|  | Xometry Inc., A | United States | 8915 | (376481) |
|  |  |  |  | (1110510) |
|  | **IT Services (0.1)%** | **IT Services (0.1)%** | **IT Services (0.1)%** | **IT Services (0.1)%** |
|  | Cloudflare Inc., A | United States | 742 | (36462) |
|  | Digitalocean Holdings Inc. | United States | 1345 | (40121) |
|  | i3 Verticals Inc., A | United States | 10193 | (267974) |
|  | Okta Inc., A | United States | 219 | (11677) |
|  | Repay Holdings Corp., A | United States | 9715 | (86075) |
|  | Shift4 Payments Inc., A | United States | 6601 | (305890) |
|  | Shopify Inc., A | Canada | 743 | (30374) |
|  |  |  |  | (778573) |
|  | **Life Sciences Tools & Services (0.0)%<sup>†</sup>** | **Life Sciences Tools & Services (0.0)%<sup>†</sup>** | **Life Sciences Tools & Services (0.0)%<sup>†</sup>** | **Life Sciences Tools & Services (0.0)%<sup>†</sup>** |
|  | Inotiv Inc. | United States | 6272 | (37883) |
|  | **Machinery (0.2)%** | **Machinery (0.2)%** | **Machinery (0.2)%** | **Machinery (0.2)%** |
|  | Caterpillar Inc. | United States | 4510 | (1066209) |
|  | Desktop Metal Inc., A | United States | 285357 | (584982) |

---

 <br> 62 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Shares** | **Value** |
| <sup>y</sup> | **Securities Sold Short** (continued) |  |  |  |
|  | **Common Stocks** (continued) |  |  |  |
|  | **Machinery** (continued) | **Machinery** (continued) | **Machinery** (continued) | **Machinery** (continued) |
|  | The Greenbrier Cos. Inc. | United States | 6121 | (234985) |
|  |  |  |  | (1886176) |
|  | **Marine (0.3)%** | **Marine (0.3)%** | **Marine (0.3)%** | **Marine (0.3)%** |
|  | A.P. Moeller-Maersk AS, B | Denmark | 268 | (581013) |
|  | Eagle Bulk Shipping Inc. | United States | 37621 | (1935600) |
|  | ZIM Integrated Shipping Services Ltd. | Israel | 47349 | (995276) |
|  |  |  |  | (3511889) |
|  | **Media (0.1)%** | **Media (0.1)%** | **Media (0.1)%** | **Media (0.1)%** |
|  | Dish Network Corp., A | United States | 9702 | (155717) |
|  | Magnite Inc. | United States | 1393 | (15476) |
|  | Sirius XM Holdings Inc. | United States | 61033 | (396104) |
|  | Techtarget Inc. | United States | 1265 | (57760) |
|  |  |  |  | (625057) |
|  | **Metals & Mining (0.6)%** | **Metals & Mining (0.6)%** | **Metals & Mining (0.6)%** | **Metals & Mining (0.6)%** |
|  | Agnico Eagle Mines Ltd. | Canada | 26394 | (1329466) |
|  | Century Aluminum Co. | United States | 20596 | (185570) |
|  | Ivanhoe Mines Ltd., A | Canada | 66810 | (597994) |
|  | Lithium Americas Corp. | Canada | 17996 | (449540) |
|  | MP Materials Corp. | United States | 8992 | (298984) |
|  | Pan American Silver Corp. | Canada | 112179 | (1838614) |
|  | Piedmont Lithium Inc. | United States | 2265 | (130600) |
|  | United States Steel Corp. | United States | 63437 | (1667759) |
|  |  |  |  | (6498527) |
|  | **Mortgage Real Estate Investment Trusts (REITs) (0.1)%** | **Mortgage Real Estate Investment Trusts (REITs) (0.1)%** | **Mortgage Real Estate Investment Trusts (REITs) (0.1)%** | **Mortgage Real Estate Investment Trusts (REITs) (0.1)%** |
|  | Arbor Realty Trust Inc. | United States | 17769 | (264403) |
|  | Hannon Armstrong Sustainable Infrastructure Capital Inc. | United States | 3114 | (101018) |
|  | PennyMac Mortgage Investment Trust | United States | 36713 | (560608) |
|  | Redwood Trust Inc. | United States | 25016 | (197626) |
|  | Two Harbors Investment Corp. | United States | 4251 | (69716) |
|  |  |  |  | (1193371) |
|  | **Personal Products (0.0)%<sup>†</sup>** | **Personal Products (0.0)%<sup>†</sup>** | **Personal Products (0.0)%<sup>†</sup>** | **Personal Products (0.0)%<sup>†</sup>** |
|  | The Beauty Health Co. | United States | 8868 | (95331) |
|  | **Pharmaceuticals (0.2)%** | **Pharmaceuticals (0.2)%** | **Pharmaceuticals (0.2)%** | **Pharmaceuticals (0.2)%** |
|  | Avadel Pharmaceuticals PLC, ADR | United States | 52918 | (485258) |
|  | Collegium Pharmaceutical Inc. | United States | 24000 | (524880) |
|  | Innoviva Inc. | United States | 15056 | (197685) |
|  | Omeros Corp. | United States | 4186 | (8958) |
|  | Pacira Biosciences Inc. | United States | 1771 | (85451) |
|  | Revance Therapeutics Inc. | United States | 18261 | (396447) |
|  |  |  |  | (1698679) |
|  | **Professional Services (0.1)%** | **Professional Services (0.1)%** | **Professional Services (0.1)%** | **Professional Services (0.1)%** |
|  | Jacobs Solutions Inc. | United States | 9147 | (1157461) |
|  | Upwork Inc. | United States | 1374 | (16832) |
|  |  |  |  | (1174293) |
|  | **Real Estate Management & Development (0.0)%<sup>†</sup>** | **Real Estate Management & Development (0.0)%<sup>†</sup>** | **Real Estate Management & Development (0.0)%<sup>†</sup>** | **Real Estate Management & Development (0.0)%<sup>†</sup>** |
|  | Anywhere Real Estate Inc. | United States | 11584 | (87459) |
|  | Opendoor Technologies Inc. | United States | 36048 | (66689) |
|  | Redfin Corp. | United States | 5399 | (28939) |
|  |  |  |  | (183087) |

---

 <br> franklintempleton.com Semiannual Report 63

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Shares** | **Value** |
| <sup>y</sup> | **Securities Sold Short** (continued) |  |  |  |
|  | **Common Stocks** (continued) |  |  |  |
|  | **Road & Rail (0.4)%** | **Road & Rail (0.4)%** | **Road & Rail (0.4)%** | **Road & Rail (0.4)%** |
|  | J.B. Hunt Transport Services Inc. | United States | 7261 | $(1335225) |
|  | Old Dominion Freight Line Inc. | United States | 7793 | (2358240) |
|  |  |  |  | (3693465) |
|  | **Semiconductors & Semiconductor Equipment (0.2)%** | **Semiconductors & Semiconductor Equipment (0.2)%** | **Semiconductors & Semiconductor Equipment (0.2)%** | **Semiconductors & Semiconductor Equipment (0.2)%** |
|  | Ams-Osram AG | Austria | 16675 | (138875) |
|  | Veeco Instruments Inc. | United States | 77464 | (1539984) |
|  | Wolfspeed Inc. | United States | 251 | (22821) |
|  |  |  |  | (1701680) |
|  | **Software (0.2)%** | **Software (0.2)%** | **Software (0.2)%** | **Software (0.2)%** |
|  | 8x8 Inc. | United States | 65261 | (279317) |
|  | Altair Engineering Inc., A | United States | 4082 | (200304) |
|  | Bentley Systems Inc., B | United States | 2266 | (89756) |
|  | Confluent Inc., A | United States | 2581 | (59441) |
|  | Coupa Software Inc. | United States | 1020 | (64505) |
|  | Dye & Durham Ltd. | Canada | 1898 | (19175) |
|  | Envestnet Inc. | United States | 922 | (54417) |
|  | Guidewire Software Inc. | United States | 330 | (19572) |
|  | Mitek Systems Inc. | United States | 22844 | (233694) |
|  | Palo Alto Networks Inc. | United States | 8208 | (1394539) |
|  | Unity Software Inc. | United States | 227 | (8969) |
|  | Veritone Inc. | United States | 10083 | (67959) |
|  |  |  |  | (2491648) |
|  | **Specialty Retail (0.4)%** | **Specialty Retail (0.4)%** | **Specialty Retail (0.4)%** | **Specialty Retail (0.4)%** |
|  | Burlington Stores Inc. | United States | 1514 | (296260) |
|  | Guess? Inc. | United States | 28632 | (594400) |
|  | The Home Depot Inc. | United States | 3498 | (1133317) |
|  | Lowe's Cos. Inc. | United States | 5421 | (1152234) |
|  | National Vision Holdings Inc. | United States | 25811 | (1044313) |
|  |  |  |  | (4220524) |
|  | **Water Utilities (0.1)%** | **Water Utilities (0.1)%** | **Water Utilities (0.1)%** | **Water Utilities (0.1)%** |
|  | American Water Works Co. Inc. | United States | 8077 | (1225766) |
|  | **Total Common Stocks (Proceeds $102,810,197)** |  |  | (92337300) |
|  | **Exchange Traded Funds (11.2)%** |  |  |  |
|  | ARK Innovation ETF | United States | 91226 | (3419150) |
|  | Health Care Select Sector SPDR Fund | United States | 7277 | (1011649) |
|  | Invesco QQQ Series 1 ETF | United States | 12875 | (3777010) |
|  | iShares 20+ Year Treasury Bond ETF | United States | 68458 | (7032690) |
|  | iShares iBoxx High Yield Corporate Bond ETF | United States | 43345 | (3279483) |
|  | iShares Nasdaq Biotechnology ETF | United States | 2054 | (280433) |
|  | iShares North American Tech-Software ETF | United States | 17400 | (4730886) |
|  | iShares PHLX Semiconductor ETF | United States | 10169 | (3945877) |
|  | iShares Russell 1000 ETF | United States | 236796 | (53115711) |
|  | iShares Russell 2000 ETF | United States | 8100 | (1517697) |
|  | iShares Russell Mid-Cap Growth ETF | United States | 231424 | (20643021) |
|  | Utilities Select Sector SPDR Fund | United States | 147505 | (10536282) |
|  | VanEck Oil Services ETF | United States | 2028 | (616816) |
|  | **Total Exchange Traded Funds<br>(Proceeds $122,124,099)** |  |  | (113906705) |
|  | **Preferred Stocks (Proceeds $1,164,189) (0.1)%** |  |  |  |
|  | **Automobiles (0.1)%** |  |  |  |
|  | Dr ING HC F Porsche AG, pfd., zero cpn. | Germany | 10668 | (1207803) |

---

 <br> 64 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Value** |
|  | **Corporate Bonds and Notes (1.1)%** | | | |
|  | **Automobiles (0.1)%** | **Automobiles (0.1)%** | **Automobiles (0.1)%** | **Automobiles (0.1)%** |
|  | Ford Motor Credit Co. LLC, senior note, 4.95%, 5/28/27 | United States | 624000 | $(591212) |
|  | **Banks (0.1)%** | **Banks (0.1)%** | **Banks (0.1)%** | **Banks (0.1)%** |
| e,h | Industrial & Commercial Bank of China Ltd., junior sub. note, Reg S, 3.2% to 9/24/26, FRN thereafter, Perpetual | China | 761000 | (702956) |
|  | **Building Products (0.1)%** | **Building Products (0.1)%** | **Building Products (0.1)%** | **Building Products (0.1)%** |
|  | 3M Co., senior bond, 2.375%, 8/26/29 | United States | 748000 | (644254) |
|  | **Chemicals (0.0)%<sup>†</sup>** | **Chemicals (0.0)%<sup>†</sup>** | **Chemicals (0.0)%<sup>†</sup>** | **Chemicals (0.0)%<sup>†</sup>** |
|  | Celanese US Holdings LLC, senior note, 6.33%, 7/15/29 | United States | 402000 | (386801) |
|  | **Construction & Engineering (0.1)%** | **Construction & Engineering (0.1)%** | **Construction & Engineering (0.1)%** | **Construction & Engineering (0.1)%** |
|  | Fluor Corp., senior bond, 4.25%, 9/15/28 | United States | 951000 | (867074) |
|  | **Consumer Finance (0.2)%** | **Consumer Finance (0.2)%** | **Consumer Finance (0.2)%** | **Consumer Finance (0.2)%** |
|  | Ally Financial Inc., junior sub. bond, 5.75%, 11/20/25 | United States | 268000 | (264585) |
|  | Onemain Finance Corp., senior note, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.875%, 3/15/25 | United States | 155000 | (150737) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.125%, 3/15/26 | United States | 1171000 | (1135870) |
|  |  |  |  | (1551192) |
|  | **Diversified Financial Services (0.1)%** | **Diversified Financial Services (0.1)%** | **Diversified Financial Services (0.1)%** | **Diversified Financial Services (0.1)%** |
| e | Kronos Acquisition Holdings Inc. / KIK Custom Products Inc., senior note, 144A, 7.00%, 12/31/27 | Canada | 549000 | (456631) |
| e | Medline Borrower LP, senior note, 144A, 5.25%, 10/01/29 | United States | 536000 | (437443) |
| e | MPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28 | United States | 463000 | (325963) |
|  |  |  |  | (1220037) |
|  | **Electric Utilities (0.0)%<sup>†</sup>** | **Electric Utilities (0.0)%<sup>†</sup>** | **Electric Utilities (0.0)%<sup>†</sup>** | **Electric Utilities (0.0)%<sup>†</sup>** |
| e | Vistra Operations Co. LLC, senior note, 144A, 4.375%, 5/01/29 | United States | 67000 | (60019) |
|  | **Health Care Providers & Services (0.0)%<sup>†</sup>** | **Health Care Providers & Services (0.0)%<sup>†</sup>** | **Health Care Providers & Services (0.0)%<sup>†</sup>** | **Health Care Providers & Services (0.0)%<sup>†</sup>** |
| e | Tenet Healthcare Corp., senior secured note, 144A, 6.25%, 2/01/27 | United States | 392000 | (376100) |
|  | **Media (0.2)%** | **Media (0.2)%** | **Media (0.2)%** | **Media (0.2)%** |
|  | DISH DBS Corp., senior note, 7.75%, 7/01/26 | United States | 191000 | (160271) |
|  | Grupo Televisa Sab, senior bond, 6.125%, 1/31/46 | Mexico | 471000 | (468896) |
|  | iHeartCommunications Inc., senior note, 8.375%, 5/01/27 | United States | 1039411 | (926780) |
| e | Scripps Escrow II Inc., senior bond, 144A, 5.375%, 1/15/31 | United States | 1013000 | (828229) |
|  |  |  |  | (2384176) |
|  | **Oil, Gas & Consumable Fuels (0.0)%<sup>†</sup>** | **Oil, Gas & Consumable Fuels (0.0)%<sup>†</sup>** | **Oil, Gas & Consumable Fuels (0.0)%<sup>†</sup>** | **Oil, Gas & Consumable Fuels (0.0)%<sup>†</sup>** |
|  | Apache Corp., senior bond, 4.375%, 10/15/28 | United States | 24000 | (21604) |
| e | Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp., senior bond, 144A, 6.00%, 12/31/30 | United States | 396000 | (358873) |
|  |  |  |  | (380477) |
|  | **Semiconductors & Semiconductor Equipment (0.2)%** | **Semiconductors & Semiconductor Equipment (0.2)%** | **Semiconductors & Semiconductor Equipment (0.2)%** | **Semiconductors & Semiconductor Equipment (0.2)%** |
|  | Intel Corp., senior bond, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.75%, 3/25/50 | United States | 743000 | (669654) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.90%, 8/05/52 | United States | 1076000 | (985498) |
|  |  |  |  | (1655152) |
|  | **Total Corporate Bonds and Notes<br>(Proceeds $11,138,160)** |  |  | (10819450) |
|  | **Foreign Government and Agency Securities (0.2)%** |  |  |  |
| e | Government of Italy, senior bond, Reg S, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.95%, 6/01/32 | Italy | 467000 | (379103) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.50%, 12/01/32 | Italy | 536000 | (496463) |

---

 <br> franklintempleton.com Semiannual Report 65

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | |
|:---|:---|:---|:---|
| | **Country** | **Principal Amount\*** | **Value** |
| **Foreign Government and Agency Securities** (continued) | | | |
|  Government of Turkey, senior bond, |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.75%, 3/22/24 | Turkey | 573000 | $(573125) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.375%, 2/05/25 | Turkey | 590000 | (594153) |
|  **Total Foreign Government and Agency Securities<br>(Proceeds $2,074,957)** |  |  | (2042844) |
| **U.S. Government and Agency Securities (0.3)%** |  |  |  |
|  U.S. Treasury Bond, |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.375%, 8/15/42 | United States | 321000 | (293765) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.25%, 2/15/52 | United States | 251100 | (181410) |
|  U.S. Treasury Note, |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.125%, 9/30/27 | United States | 270000 | (273322) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.875%, 2/15/32 | United States | 358000 | (308355) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 5/15/32 | United States | 218200 | (204563) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.75%, 8/15/32 | United States | 2269800 | (2102757) |
|  **Total U.S. Government and Agency Securities (Proceeds $3,463,455)** |  |  | (3364172) |
|  **Total Securities Sold Short (Proceeds $242,775,057)** |  |  | $(223678274) |

---

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

\* 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, 2022, the aggregate value of these securities and/or cash pledged amounted to $95,806,319, representing 9.4% of net assets.

<sup>c</sup> A portion or all of the security is on loan at November 30, 2022. See Note 1(h).

<sup>d</sup> A portion or all of the security is held in connection with written option contracts open at period end.

<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, 2022, the net value of these securities was $206,846,797, representing 20.3% of net assets.

<sup>f</sup> Fair valued using significant unobservable inputs. See Note 14 regarding fair value measurements.

<sup>g</sup> See Note 9 regarding investments in Russian securities.

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

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

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

<sup>k</sup> See Note 7 regarding defaulted securities.

<sup>l</sup> See Note 1(j) regarding senior floating rate interests.

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

<sup>n</sup> See Note 11 regarding unfunded loan commitments.

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

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

<sup>q</sup> Adjustable rate security with an interest rate that is not based on a published reference index and spread. The rate is based on the structure of the agreement and current market conditions. The coupon rate shown represents the rate at period end.

<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(i).

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

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

<sup>v</sup> See Note 1(c) regarding joint repurchase agreement.

<sup>w</sup> The security was issued on a discount basis with no stated coupon rate.

<sup>x</sup> See Note 1(e) regarding written options.

<sup>y</sup> See Note 1(g) regarding securities sold short.

 <br> 66 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

At November 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(e).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Futures Contracts**<br>**Description** |<br>**Type** |<br>**Number of<br>Contracts** |<br>**Notional<br>Amount\*** |<br>**Expiration<br>Date** |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **Commodity Contracts<sup>a</sup>** | | | | | |
|  Aluminum | Long | 18 | $1104750 | 12/19/22 | $41116 |
|  Aluminum | Short | 18 | 1104750 | 12/19/22 | (26458) |
|  Aluminum | Long | 1 | 62000 | 3/13/23 | 828 |
|  Aluminum | Short | 15 | 930000 | 3/13/23 | (48008) |
|  Brent Crude Oil | Long | 20 | 1739400 | 12/29/22 | (100180) |
|  Cocoa | Long | 15 | 361214 | 3/16/23 | 10438 |
|  Coffee | Short | 19 | 1210537 | 3/21/23 | 24078 |
|  Copper | Long | 13 | 2677919 | 12/19/22 | 204568 |
|  Copper | Short | 13 | 2677919 | 12/19/22 | (123993) |
|  Copper | Long | 2 | 412012 | 3/13/23 | (14994) |
|  Copper | Short | 5 | 1030031 | 3/13/23 | (31365) |
|  Corn | Long | 79 | 2634650 | 3/14/23 | (24756) |
|  Cotton | Short | 13 | 549965 | 3/09/23 | 2488 |
|  Gasoline | Long | 20 | 2003148 | 12/30/22 | (66656) |
|  Gold 100 Oz | Short | 22 | 3871780 | 2/24/23 | 10370 |
|  Hard Red Winter Wheat | Long | 4 | 179950 | 3/14/23 | (8661) |
|  Low Sulphur Gas Oil | Long | 18 | 1682100 | 1/12/23 | (61527) |
|  Natural Gas | Long | 25 | 1732500 | 12/28/22 | (32756) |
|  NY Harbor | Long | 22 | 3107874 | 12/30/22 | (81160) |
|  Silver | Short | 11 | 1197955 | 3/29/23 | (21421) |
|  Soybean Meal | Long | 22 | 915200 | 3/14/23 | 26569 |
|  Soybean Oil | Long | 19 | 801192 | 3/14/23 | (13427) |
|  Soybeans | Long | 9 | 663975 | 3/14/23 | 25489 |
|  Sugar | Long | 29 | 637582 | 2/28/23 | 6526 |
|  Wheat | Short | 38 | 1511450 | 3/14/23 | 88155 |
|  WTI Crude Oil | Long | 5 | 402750 | 12/20/22 | (10391) |
|  Zinc | Long | 24 | 1829100 | 12/19/22 | (152972) |
|  Zinc | Short | 24 | 1829100 | 12/19/22 | 109982 |
|  Zinc | Short | 9 | 683213 | 3/13/23 | (35644) |
|  |  |  |  |  | (303762) |
| **Currency Contracts<sup>a</sup>** |  |  |  |  |  |
|  U.S. Dollar Index | Long | 14 | 1482558 | 12/19/22 | (39860) |
| **Equity Contracts** |  |  |  |  |  |
|  CAC 40 10 Euro Index<sup>a</sup> | Long | 40 | 2804002 | 12/16/22 | 48599 |
|  CBOE Volatility Index | Long | 5 | 123335 | 1/18/23 | (9580) |
|  CBOE Volatility Index | Long | 5 | 127516 | 2/15/23 | (8700) |
|  CBOE Volatility Index | Long | 9 | 234450 | 3/22/23 | (6337) |
|  CBOE Volatility Index | Long | 17 | 450485 | 4/19/23 | (20457) |
|  CBOE Volatility Index | Long | 8 | 212817 | 5/17/23 | (10118) |
|  DAX Index<sup>a</sup> | Long | 22 | 8251859 | 12/16/22 | 17365 |
|  DJ EURO STOXX 50 Index<sup>a</sup> | Long | 214 | 8829600 | 12/16/22 | 256583 |
|  DJ EURO STOXX 50 Index | Short | 439 | 18113058 | 12/16/22 | (1475922) |
|  DJIA Mini E-CBOT Index<sup>a</sup> | Long | 20 | 3459900 | 12/16/22 | 112010 |
|  E-Mini Russell 2000<sup>a</sup> | Long | 18 | 1698750 | 12/16/22 | 52617 |
|  FTSE 100 Index<sup>a</sup> | Long | 25 | 2289675 | 12/16/22 | 31041 |
|  FTSE 100 Index | Short | 38 | 3480306 | 12/16/22 | (63373) |
|  FTSE China A50 Index | Long | 18 | 228510 | 12/29/22 | 9471 |
|  FTSE/MIB Index | Short | 1 | 128166 | 12/16/22 | (10631) |
|  Hang Seng China Enterprises Index | Long | 4 | 163668 | 12/29/22 | 9784 |
|  Hang Seng Index<sup>a</sup> | Short | 22 | 2621794 | 12/29/22 | (138131) |
|  Hang Seng Tech Index | Long | 8 | 194906 | 12/29/22 | 11545 |
|  MSCI Singapore Index | Long | 2 | 43645 | 12/29/22 | 151 |

---

 <br> franklintempleton.com Semiannual Report 67

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Futures Contracts** (continued)<br>**Description** |<br>**Type** |<br>**Number of<br>Contracts** |<br>**Notional<br>Amount\*** |<br>**Expiration<br>Date** |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **Equity Contracts** (continued) | | | | | |
|  NASDAQ 100 E-Mini Index<sup>a</sup> | Short | 23 | $5539435 | 12/16/22 | $(8017) |
|  Nikkei 225 Index<sup>a</sup> | Long | 37 | 7513071 | 12/08/22 | 100455 |
|  S&P 500 E-Mini Index<sup>a</sup> | Long | 64 | 13060000 | 12/16/22 | 603376 |
|  S&P 500 E-Mini Index | Short | 216 | 44077498 | 12/16/22 | (3081822) |
|  SGX Nifty 50 | Short | 91 | 3442803 | 12/29/22 | (107634) |
|  TOPIX Index<sup>a</sup> | Long | 61 | 8790644 | 12/08/22 | 267128 |
|  VSTOXX | Long | 5 | 11082 | 12/21/22 | (1251) |
|  VSTOXX | Long | 6 | 14735 | 1/18/23 |  |
|  |  |  |  |  | (3421848) |
| **Interest Rate Contracts** |  |  |  |  |  |
|  3 Month EURIBOR | Long | 1 | 254492 | 12/19/22 | (62) |
|  3 Month EURIBOR | Short | 15 | 3792014 | 3/13/23 | 59355 |
|  3 Month EURIBOR | Long | 3 | 756881 | 9/18/23 | (1361) |
|  3 Month EURIBOR<sup>a</sup> | Short | 108 | 27265973 | 12/18/23 | (2040) |
|  3 Month EURIBOR | Short | 16 | 4043358 | 3/18/24 | 22604 |
|  3 Month SOFR | Short | 8 | 1901700 | 6/20/23 | (1015) |
|  3 Month SOFR | Long | 130 | 30902625 | 9/19/23 | 22278 |
|  3 Month SOFR<sup>a</sup> | Short | 313 | 74791350 | 3/19/24 | (63017) |
|  1 Month SOFR | Short | 62 | 24776794 | 12/30/22 | 204954 |
|  30 Day Federal Funds | Long | 62 | 24769690 | 12/30/22 | (132316) |
|  30 Day Federal Funds | Long | 39 | 15542743 | 1/31/23 | 9691 |
|  30 Day Federal Funds | Long | 2 | 794147 | 2/28/23 | (337) |
|  30 Day Federal Funds | Long | 62 | 24572049 | 4/28/23 | (6242) |
|  30 Day Federal Funds | Short | 16 | 6337840 | 5/31/23 | 3785 |
|  30 Day Federal Funds | Short | 90 | 35655977 | 7/31/23 | 51688 |
|  90 Day Eurodollar | Long | 2 | 475512 | 12/19/22 | (6991) |
|  90 Day Sterling<sup>a</sup> | Short | 27 | 7764465 | 3/19/24 | 79586 |
|  Australian 10 Yr. Bond<sup>a</sup> | Short | 62 | 5077658 | 12/15/22 | (100023) |
|  Canadian 10 Yr. Bond<sup>a</sup> | Long | 3 | 280430 | 3/22/23 | 1399 |
|  Euro-BOBL<sup>a</sup> | Short | 79 | 9867360 | 12/08/22 | (45825) |
|  Euro-Bund<sup>a</sup> | Short | 47 | 6890191 | 12/08/22 | (84217) |
|  Euro-SCHATZ<sup>a</sup> | Short | 271 | 30112255 | 12/08/22 | (11291) |
|  Japanese 10 Yr. Bond | Short | 2 | 2153958 | 12/13/22 | 7835 |
|  Long Gilt<sup>a</sup> | Short | 11 | 1391932 | 3/29/23 | 7366 |
|  U.S. Treasury 2 Yr. Note<sup>a</sup> | Short | 90 | 18482344 | 3/31/23 | (45090) |
|  U.S. Treasury 5 Yr. Note<sup>a</sup> | Short | 30 | 3257109 | 3/31/23 | (17485) |
|  U.S. Treasury 10 Yr. Note<sup>a</sup> | Long | 48 | 5448000 | 3/22/23 | 28781 |
|  U.S. Treasury 10 Yr. Ultra | Short | 52 | 6222125 | 3/22/23 | (43872) |
|  U.S. Treasury Long Bond<sup>a</sup> | Long | 15 | 1905000 | 3/22/23 | 39 |
|  U.S. Treasury Ultra Bond | Long | 1 | 136281 | 3/22/23 | 770 |
|  U.S. Treasury Ultra Bond | Short | 46 | 6268937 | 3/22/23 | (6641) |
|  |  |  |  |  | (67694) |
| &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 | $(3833164) |

---

\*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(i).

 <br> 68 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

At November 30, 2022, the Fund had the following forward exchange contracts outstanding. See Note 1(e).

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Forward Exchange Contracts** | **Forward Exchange Contracts** | **Forward Exchange Contracts** | **Forward Exchange Contracts** | **Forward Exchange Contracts** | **Forward Exchange Contracts** | **Forward Exchange Contracts** | **Forward Exchange Contracts** | |
| **Currency** | **Counterparty<sup>a</sup>** | **Type** | **Quantity** | **Contract<br>Amount\*** | | **Settlement<br>Date** | **Unrealized<br>Appreciation** |<br>**Unrealized<br>Depreciation** |
| **OTC Forward Exchange Contracts** | **OTC Forward Exchange Contracts** | | | | | | | |
|  Brazilian Real | JPHQ | Buy | 5089899 | 951574 |  | 12/02/22 | $29262 | $— |
|  Brazilian Real | JPHQ | Sell | 5089899 | 957386 |  | 12/02/22 |  | (23450) |
|  Singapore Dollar | BOFA | Buy | 10836000 | 7891895 |  | 12/02/22 | 71360 |  |
|  Singapore Dollar | BOFA | Sell | 1200000 | 874126 |  | 12/02/22 |  | (7741) |
|  Singapore Dollar | CITI | Sell | 1200000 | 874317 |  | 12/02/22 |  | (7550) |
|  Singapore Dollar | DBAB | Sell | 1000000 | 728721 |  | 12/02/22 |  | (6168) |
|  Singapore Dollar | GSCO | Sell | 1600000 | 1165471 |  | 12/02/22 |  | (10351) |
|  Brazilian Real | MSCO | Sell | 7058370 | 1316713 |  | 12/08/22 |  | (41346) |
|  Indian Rupee | BNPP | Buy | 133500 | 1606 |  | 12/14/22 | 32 |  |
|  Indian Rupee | DBAB | Buy | 41361500 | 500000 |  | 12/14/22 | 7515 |  |
|  Indian Rupee | GSCO | Sell | 41495000 | 500000 |  | 12/14/22 |  | (9153) |
|  Chinese Yuan | MSCO | Buy | 10134392 | 1416685 |  | 12/15/22 | 5747 | (1869) |
|  Chinese Yuan | MSCO | Sell | 22383296 | 3158739 |  | 12/15/22 | 37777 | (16563) |
|  British Pound | BNYM | Sell | 771813 | 916145 |  | 12/16/22 |  | (14710) |
|  Euro | BNYM | Sell | 14624169 | 15226802 |  | 12/16/22 |  | (14125) |
|  Swiss Franc | BNYM | Sell | 1400507 | 1491554 |  | 12/16/22 | 7972 |  |
|  Australian Dollar | BZWS | Buy | 3250000 | 2125916 |  | 12/20/22 | 82140 |  |
|  Australian Dollar | BZWS | Sell | 12516000 | 8336431 |  | 12/20/22 | 14 | (166971) |
|  British Pound | BZWS | Buy | 933000 | 1072691 |  | 12/20/22 | 52756 |  |
|  British Pound | BZWS | Sell | 7452000 | 8345033 |  | 12/20/22 | 191 | (644253) |
|  Canadian Dollar | BZWS | Buy | 5428000 | 3965253 |  | 12/20/22 | 71701 | (107) |
|  Canadian Dollar | BZWS | Sell | 11367000 | 8510098 |  | 12/20/22 | 79068 | (22699) |
|  Euro | BZWS | Buy | 7513000 | 7710640 |  | 12/20/22 | 122167 |  |
|  Euro | BZWS | Sell | 10269000 | 10400736 |  | 12/20/22 | 2 | (305389) |
|  Japanese Yen | BZWS | Buy | 608334000 | 4230285 |  | 12/20/22 | 188078 |  |
|  Japanese Yen | BZWS | Sell | 608334000 | 4284652 |  | 12/20/22 |  | (133711) |
|  New Zealand Dollar | BZWS | Sell | 389000 | 227020 |  | 12/20/22 |  | (18189) |
|  Swiss Franc | BZWS | Buy | 11000 | 11626 |  | 12/20/22 | 40 | (6) |
|  Swiss Franc | BZWS | Sell | 414000 | 432521 |  | 12/20/22 |  | (6297) |
|  Singapore Dollar | BNPP | Sell | 132818 | 140000 | AUD | 12/21/22 | 441 | (2935) |
|  Singapore Dollar | BOFA | Sell | 125635 | 140000 | AUD | 12/21/22 | 6681 | (3896) |
|  Australian Dollar | BOFA | Sell | 5711 | 3832 |  | 12/21/22 |  | (48) |
|  Australian Dollar | CITI | Buy | 140000 | 88910 |  | 12/21/22 | 6211 |  |
|  New Zealand Dollar | DBAB | Sell | 157024 | 140000 | AUD | 12/21/22 | 7095 | (10957) |
|  Australian Dollar | DBAB | Buy | 338837 | 229783 |  | 12/21/22 | 2695 | (2261) |
|  Australian Dollar | DBAB | Sell | 553370 | 351694 |  | 12/21/22 |  | (24285) |
|  New Zealand Dollar | GSCO | Sell | 219064 | 200000 | AUD | 12/21/22 | 7183 | (9387) |
|  Australian Dollar | GSCO | Buy | 104606 | 65800 |  | 12/21/22 | 5273 |  |
|  New Zealand Dollar | HSBC | Sell | 224779 | 200000 | AUD | 12/21/22 | 747 | (6553) |
|  Australian Dollar | HSBC | Sell | 26826 | 16981 |  | 12/21/22 |  | (1246) |
|  Australian Dollar | JPHQ | Buy | 79460 | 51042 |  | 12/21/22 | 2946 |  |
|  Australian Dollar | JPHQ | Sell | 149425 | 98667 |  | 12/21/22 |  | (2857) |
|  Australian Dollar | MSCO | Sell | 117685 | 74800 |  | 12/21/22 |  | (5159) |
|  Australian Dollar | SCBL | Sell | 200000 | 131947 |  | 12/21/22 |  | (3940) |
|  Australian Dollar | SSBT | Buy | 244911 | 153932 |  | 12/21/22 | 12469 |  |
|  Australian Dollar | SSBT | Sell | 132726 | 87600 |  | 12/21/22 |  | (2578) |
|  Australian Dollar | UBSW | Sell | 140000 | 88641 |  | 12/21/22 |  | (6480) |
|  British Pound | BNYM | Buy | 316572 | 378144 |  | 12/21/22 | 3742 |  |
|  British Pound | BNYM | Sell | 1678595 | 1926913 |  | 12/21/22 |  | (98004) |
|  British Pound | DBAB | Buy | 345437 | 386128 |  | 12/21/22 | 30580 |  |
|  British Pound | DBAB | Sell | 344933 | 385955 |  | 12/21/22 |  | (30144) |
|  British Pound | HSBC | Buy | 34210 | 39417 |  | 12/21/22 | 1851 |  |
|  British Pound | HSBC | Sell | 497 | 566 |  | 12/21/22 |  | (34) |
|  British Pound | JPHQ | Buy | 220515 | 250781 |  | 12/21/22 | 15231 |  |
|  British Pound | JPHQ | Sell | 225862 | 255233 |  | 12/21/22 |  | (17228) |

---

 <br> franklintempleton.com Semiannual Report 69

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | |
| **Currency** | **Counterparty<sup>a</sup>** | **Type** | **Quantity** | **Contract<br>Amount\*** | | **Settlement<br>Date** | **Unrealized<br>Appreciation** |<br>**Unrealized<br>Depreciation** |
| **OTC Forward Exchange Contracts** (continued) | **OTC Forward Exchange Contracts** (continued) | **OTC Forward Exchange Contracts** (continued) | | | | | | |
|  British Pound | MSCO | Buy | 44929 | 49800 |  | 12/21/22 | $4399 | $— |
|  British Pound | MSCO | Sell | 282323 | 317548 |  | 12/21/22 |  | (23023) |
|  British Pound | SCBL | Buy | 237837 | 268151 |  | 12/21/22 | 18756 |  |
|  British Pound | UBSW | Buy | 44939 | 49800 |  | 12/21/22 | 4411 |  |
|  Chilean Peso | JPHQ | Sell | 476248725 | 484337 |  | 12/21/22 |  | (48610) |
|  Chinese Yuan | BNPP | Buy | 21086580 | 3000000 |  | 12/21/22 |  | (2154) |
|  Chinese Yuan | BOFA | Buy | 3297756 | 467000 |  | 12/21/22 | 2553 | (717) |
|  Chinese Yuan | BOFA | Sell | 726282 | 100000 |  | 12/21/22 |  | (3254) |
|  Chinese Yuan | BZWS | Sell | 1888614 | 260000 |  | 12/21/22 |  | (8501) |
|  Chinese Yuan | DBAB | Buy | 25728897 | 3647116 |  | 12/21/22 | 11563 | (842) |
|  Chinese Yuan | DBAB | Sell | 2422427 | 340000 |  | 12/21/22 |  | (4393) |
|  Chinese Yuan | GSCO | Buy | 5411262 | 750000 |  | 12/21/22 | 19310 |  |
|  Chinese Yuan | GSCO | Sell | 4807398 | 679200 |  | 12/21/22 | 364 | (4626) |
|  Chinese Yuan | JPHQ | Buy | 4380969 | 606686 |  | 12/21/22 | 16148 |  |
|  Chinese Yuan | JPHQ | Sell | 5161182 | 724694 |  | 12/21/22 | 3532 | (12595) |
|  Chinese Yuan | MSCO | Buy | 1591356 | 222800 |  | 12/21/22 | 3441 |  |
|  Chinese Yuan | MSCO | Sell | 1423518 | 200000 |  | 12/21/22 |  | (2380) |
|  Chinese Yuan | SCBL | Buy | 1017618 | 140000 |  | 12/21/22 | 4673 |  |
|  Chinese Yuan | SCBL | Sell | 3623305 | 500000 |  | 12/21/22 |  | (15120) |
|  Chinese Yuan | SSBT | Buy | 1601654 | 222800 |  | 12/21/22 | 4905 |  |
|  Chinese Yuan | SSBT | Sell | 3550754 | 501000 |  | 12/21/22 |  | (3806) |
|  Chinese Yuan | UBSW | Buy | 1448215 | 200000 |  | 12/21/22 | 5891 |  |
|  Euro | BNYM | Buy | 300981 | 300657 |  | 12/21/22 | 13165 |  |
|  Euro | BNYM | Sell | 3427086 | 3452974 |  | 12/21/22 |  | (120331) |
|  Euro | BOFA | Sell | 432872 | 428696 |  | 12/21/22 |  | (22645) |
|  Euro | DBAB | Buy | 727263 | 730673 |  | 12/21/22 | 27618 |  |
|  Euro | DBAB | Sell | 368118 | 368030 |  | 12/21/22 | 12 | (15807) |
|  Euro | HSBC | Buy | 237375 | 234958 |  | 12/21/22 | 12545 |  |
|  Euro | HSBC | Sell | 746282 | 729174 |  | 12/21/22 |  | (48948) |
|  Polish Zloty | JPHQ | Sell | 888274 | 179931 | EUR | 12/21/22 | 11321 | (20550) |
|  Hungarian Forint | JPHQ | Sell | 212918508 | 513158 | EUR | 12/21/22 | 26004 | (28912) |
|  Euro | JPHQ | Buy | 1527397 | 1504886 |  | 12/21/22 | 87678 |  |
|  Euro | JPHQ | Sell | 1927397 | 1910264 |  | 12/21/22 |  | (99366) |
|  Euro | MSCO | Buy | 1110000 | 1104014 |  | 12/21/22 | 53345 |  |
|  Euro | MSCO | Sell | 3362764 | 3385288 |  | 12/21/22 |  | (120950) |
|  Euro | SCBL | Buy | 237396 | 232249 |  | 12/21/22 | 15276 |  |
|  Euro | SSBT | Buy | 104842 | 103985 |  | 12/21/22 | 5330 |  |
|  Euro | SSBT | Sell | 180881 | 178800 |  | 12/21/22 |  | (9799) |
|  Hong Kong Dollar | HSBC | Buy | 775581 | 98943 |  | 12/21/22 | 323 |  |
|  Hong Kong Dollar | JPHQ | Buy | 499509 | 63755 |  | 12/21/22 | 177 |  |
|  Hong Kong Dollar | JPHQ | Sell | 315360 | 40293 |  | 12/21/22 | 9 | (79) |
|  Hong Kong Dollar | SCBL | Sell | 222706 | 28517 |  | 12/21/22 | 13 |  |
|  Euro | DBAB | Sell | 146012 | 62434684 | HUF | 12/21/22 | 15780 | (10274) |
|  Euro | JPHQ | Sell | 357176 | 150483825 | HUF | 12/21/22 | 22606 | (14808) |
|  Indian Rupee | BNPP | Buy | 17798330 | 219444 |  | 12/21/22 | 396 | (1533) |
|  Indian Rupee | BNPP | Sell | 19741590 | 240000 |  | 12/21/22 |  | (2142) |
|  Indian Rupee | BOFA | Buy | 16626360 | 200000 |  | 12/21/22 | 3932 |  |
|  Indian Rupee | BOFA | Sell | 16338000 | 200000 |  | 12/21/22 |  | (395) |
|  Indian Rupee | BZWS | Sell | 16350000 | 200000 |  | 12/21/22 |  | (542) |
|  Indian Rupee | DBAB | Buy | 2043485 | 24600 |  | 12/21/22 | 465 |  |
|  Indian Rupee | GSCO | Buy | 73031600 | 900000 |  | 12/21/22 | 1534 | (5759) |
|  Indian Rupee | GSCO | Sell | 16436000 | 200000 |  | 12/21/22 |  | (1597) |
|  Indian Rupee | HSBC | Buy | 68669466 | 840000 |  | 12/21/22 | 5322 | (3050) |
|  Indian Rupee | HSBC | Sell | 13077923 | 161400 |  | 12/21/22 | 1577 | (585) |
|  Indian Rupee | JPHQ | Sell | 27742793 | 336762 |  | 12/21/22 | 221 | (3740) |
|  Indian Rupee | MSCO | Sell | 10344160 | 128000 |  | 12/21/22 | 1626 | (503) |

---

 <br> 70 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | |
| **Currency** | **Counterparty<sup>a</sup>** | **Type** | **Quantity** | **Contract<br>Amount\*** | | **Settlement<br>Date** | **Unrealized<br>Appreciation** |<br>**Unrealized<br>Depreciation** |
| **OTC Forward Exchange Contracts** (continued) | **OTC Forward Exchange Contracts** (continued) | **OTC Forward Exchange Contracts** (continued) | | | | | | |
|  Indian Rupee | SCBL | Sell | 32788000 | 400000 |  | 12/21/22 | $— | $(2164) |
|  Indian Rupee | SSBT | Buy | 2042308 | 24600 |  | 12/21/22 | 450 |  |
|  Indonesian Rupiah | BOFA | Sell | 698248320 | 46200 |  | 12/21/22 | 1827 |  |
|  Indonesian Rupiah | GSCO | Buy | 2189936000 | 140000 |  | 12/21/22 |  | (832) |
|  Indonesian Rupiah | HSBC | Buy | 2547681718 | 166842 |  | 12/21/22 |  | (4940) |
|  Indonesian Rupiah | HSBC | Sell | 3392492426 | 224800 |  | 12/21/22 | 9210 |  |
|  Indonesian Rupiah | MSCO | Buy | 697393620 | 46200 |  | 12/21/22 |  | (1881) |
|  Indonesian Rupiah | MSCO | Sell | 28464800 | 1818 |  | 12/21/22 | 9 |  |
|  Indonesian Rupiah | SSBT | Buy | 6192000000 | 400000 |  | 12/21/22 |  | (6505) |
|  Indonesian Rupiah | SSBT | Sell | 596473062 | 38600 |  | 12/21/22 | 695 |  |
|  Indonesian Rupiah | UBSW | Buy | 1048610660 | 68000 |  | 12/21/22 |  | (1362) |
|  Indonesian Rupiah | UBSW | Sell | 2899182258 | 186200 |  | 12/21/22 | 1960 |  |
|  Japanese Yen | BOFA | Buy | 14709080 | 100000 |  | 12/21/22 | 6849 |  |
|  Japanese Yen | DBAB | Buy | 175758147 | 1237620 |  | 12/21/22 | 39110 |  |
|  Japanese Yen | DBAB | Sell | 186230566 | 1309275 |  | 12/21/22 | 315 | (43840) |
|  Japanese Yen | GSCO | Buy | 85317780 | 600000 |  | 12/21/22 | 19759 |  |
|  Japanese Yen | GSCO | Sell | 130280500 | 900000 |  | 12/21/22 |  | (46374) |
|  Japanese Yen | HSBC | Buy | 40311500 | 280000 |  | 12/21/22 | 12828 |  |
|  Japanese Yen | HSBC | Sell | 82705393 | 580000 |  | 12/21/22 |  | (20782) |
|  South Korean Won | JPHQ | Sell | 451237000 | 46000000 | JPY | 12/21/22 | 12156 | (20261) |
|  Japanese Yen | JPHQ | Buy | 97055749 | 685000 |  | 12/21/22 | 20025 |  |
|  Japanese Yen | JPHQ | Sell | 98188631 | 683648 |  | 12/21/22 |  | (29606) |
|  Japanese Yen | MSCO | Sell | 90970090 | 636881 |  | 12/21/22 |  | (23937) |
|  Japanese Yen | SCBL | Buy | 406066 | 2934 |  | 12/21/22 | 16 |  |
|  Japanese Yen | SSBT | Buy | 40620888 | 282810 |  | 12/21/22 | 12265 |  |
|  Japanese Yen | SSBT | Sell | 84369104 | 592200 |  | 12/21/22 |  | (20667) |
|  New Zealand Dollar | UBSW | Sell | 200000 | 17136040 | JPY | 12/21/22 | 3551 | (5146) |
|  Japanese Yen | UBSW | Buy | 99327510 | 700000 |  | 12/21/22 | 21528 |  |
|  Japanese Yen | UBSW | Sell | 28641240 | 200000 |  | 12/21/22 |  | (8054) |
|  Mexican Peso | JPHQ | Buy | 37686074 | 1866212 |  | 12/21/22 | 79607 |  |
|  Mexican Peso | JPHQ | Sell | 38030198 | 1858849 |  | 12/21/22 |  | (104737) |
|  New Zealand Dollar | BOFA | Sell | 74743 | 42558 |  | 12/21/22 |  | (4558) |
|  New Zealand Dollar | DBAB | Buy | 540000 | 322411 |  | 12/21/22 | 17986 |  |
|  New Zealand Dollar | DBAB | Sell | 400000 | 232852 |  | 12/21/22 |  | (19294) |
|  Japanese Yen | GSCO | Sell | 17261840 | 200000 | NZD | 12/21/22 | 4587 | (3906) |
|  New Zealand Dollar | GSCO | Sell | 140000 | 86548 |  | 12/21/22 |  | (1703) |
|  Australian Dollar | HSBC | Sell | 340000 | 382560 | NZD | 12/21/22 | 18116 | (7971) |
|  New Zealand Dollar | SCBL | Buy | 178887 | 100905 |  | 12/21/22 | 11860 |  |
|  New Zealand Dollar | SSBT | Buy | 200000 | 120754 |  | 12/21/22 | 5319 |  |
|  New Zealand Dollar | UBSW | Buy | 262286 | 152272 |  | 12/21/22 | 13064 |  |
|  New Zealand Dollar | UBSW | Sell | 400000 | 249088 |  | 12/21/22 |  | (3059) |
|  Norwegian Krone | CITI | Sell | 1006777 | 100000 |  | 12/21/22 |  | (2320) |
|  Norwegian Krone | DBAB | Buy | 998561 | 100000 |  | 12/21/22 | 1485 |  |
|  Norwegian Krone | DBAB | Sell | 3463524 | 340000 |  | 12/21/22 |  | (12001) |
|  Norwegian Krone | GSCO | Buy | 1495789 | 140000 |  | 12/21/22 | 12019 |  |
|  Norwegian Krone | HSBC | Buy | 2062624 | 200000 |  | 12/21/22 | 9627 |  |
|  Philippine Peso | GSCO | Sell | 5439172 | 92400 |  | 12/21/22 |  | (3746) |
|  Philippine Peso | HSBC | Buy | 3586556 | 60842 |  | 12/21/22 | 2556 |  |
|  Philippine Peso | JPHQ | Buy | 2016982 | 34000 |  | 12/21/22 | 1654 |  |
|  Philippine Peso | JPHQ | Sell | 4574726 | 77200 |  | 12/21/22 |  | (3666) |
|  Polish Zloty | DBAB | Sell | 771941 | 154172 |  | 12/21/22 |  | (16886) |
|  Euro | JPHQ | Sell | 185235 | 888274 | PLN | 12/21/22 | 9493 | (5794) |
|  Polish Zloty | JPHQ | Buy | 2430325 | 503812 |  | 12/21/22 | 34736 |  |
|  Polish Zloty | JPHQ | Sell | 1658385 | 342147 |  | 12/21/22 |  | (25343) |
|  Singapore Dollar | BOFA | Buy | 567252 | 400000 |  | 12/21/22 | 16905 |  |
|  Singapore Dollar | BOFA | Sell | 2528228 | 1760000 |  | 12/21/22 |  | (98134) |

---

 <br> franklintempleton.com Semiannual Report 71

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | |
| **Currency** | **Counterparty<sup>a</sup>** | **Type** | **Quantity** | **Contract<br>Amount\*** | | **Settlement<br>Date** | **Unrealized<br>Appreciation** |<br>**Unrealized<br>Depreciation** |
| **OTC Forward Exchange Contracts** (continued) | **OTC Forward Exchange Contracts** (continued) | **OTC Forward Exchange Contracts** (continued) | | | | | | |
|  Australian Dollar | BZWS | Sell | 140000 | 128883 | SGD | 12/21/22 | $1313 | $(1711) |
|  Australian Dollar | CITI | Sell | 140000 | 134479 | SGD | 12/21/22 | 3715 |  |
|  Singapore Dollar | DBAB | Buy | 1276520 | 900000 |  | 12/21/22 | 38185 |  |
|  Singapore Dollar | GSCO | Buy | 1133885 | 800000 |  | 12/21/22 | 33354 |  |
|  Euro | HSBC | Sell | 200000 | 284301 | SGD | 12/21/22 | 2271 | (1857) |
|  Singapore Dollar | HSBC | Buy | 1812043 | 1276637 |  | 12/21/22 | 55133 |  |
|  Singapore Dollar | HSBC | Sell | 564103 | 396721 |  | 12/21/22 |  | (17869) |
|  Singapore Dollar | JPHQ | Buy | 157824 | 109932 |  | 12/21/22 | 6062 |  |
|  Singapore Dollar | SCBL | Buy | 341824 | 249517 |  | 12/21/22 | 1708 |  |
|  Singapore Dollar | SCBL | Sell | 1002632 | 710050 |  | 12/21/22 |  | (26839) |
|  Singapore Dollar | SSBT | Buy | 2013406 | 1420000 |  | 12/21/22 | 59763 |  |
|  Singapore Dollar | SSBT | Sell | 6680 | 4862 |  | 12/21/22 |  | (48) |
|  South African Rand | JPHQ | Sell | 29081828 | 1657216 |  | 12/21/22 |  | (22533) |
|  South Korean Won | BNPP | Buy | 78992806 | 55647 |  | 12/21/22 | 4267 |  |
|  South Korean Won | BNPP | Sell | 347538798 | 260000 |  | 12/21/22 |  | (3601) |
|  South Korean Won | BOFA | Buy | 185556000 | 140000 |  | 12/21/22 | 740 |  |
|  South Korean Won | BOFA | Sell | 416220000 | 300000 |  | 12/21/22 |  | (15694) |
|  South Korean Won | BZWS | Buy | 158922000 | 120000 |  | 12/21/22 | 539 |  |
|  South Korean Won | CITI | Buy | 187541200 | 140000 |  | 12/21/22 | 2246 |  |
|  South Korean Won | CITI | Sell | 451266000 | 340000 |  | 12/21/22 |  | (2275) |
|  South Korean Won | DBAB | Buy | 1117800000 | 800000 |  | 12/21/22 | 47827 |  |
|  South Korean Won | DBAB | Sell | 488240000 | 340000 |  | 12/21/22 |  | (30319) |
|  South Korean Won | GSCO | Buy | 67007772 | 46800 |  | 12/21/22 | 4024 |  |
|  South Korean Won | GSCO | Sell | 416310000 | 300000 |  | 12/21/22 |  | (15762) |
|  South Korean Won | HSBC | Buy | 1219280976 | 886800 |  | 12/21/22 | 37998 |  |
|  South Korean Won | HSBC | Sell | 1268591320 | 903600 |  | 12/21/22 |  | (58599) |
|  Japanese Yen | JPHQ | Sell | 46000000 | 446403200 | KRW | 12/21/22 | 7991 | (3554) |
|  South Korean Won | JPHQ | Buy | 478136000 | 340000 |  | 12/21/22 | 22655 |  |
|  South Korean Won | JPHQ | Sell | 242530210 | 173200 |  | 12/21/22 |  | (10754) |
|  South Korean Won | MSCO | Sell | 247498772 | 183600 |  | 12/21/22 | 170 | (4292) |
|  South Korean Won | UBSW | Buy | 1038205638 | 740000 |  | 12/21/22 | 47457 |  |
|  South Korean Won | UBSW | Sell | 485946000 | 353200 |  | 12/21/22 | 109 | (15488) |
|  Swedish Krona | JPHQ | Sell | 160000 | 14160 |  | 12/21/22 |  | (1103) |
|  Swiss Franc | BNYM | Sell | 584847 | 604901 |  | 12/21/22 |  | (15098) |
|  Swiss Franc | JPHQ | Buy | 800000 | 841330 |  | 12/21/22 | 6753 |  |
|  Swiss Franc | JPHQ | Sell | 80000 | 83576 |  | 12/21/22 |  | (1232) |
|  Taiwan Dollar | BNPP | Sell | 9480600 | 300000 |  | 12/21/22 |  | (7353) |
|  Taiwan Dollar | CITI | Buy | 10471374 | 340000 |  | 12/21/22 |  | (526) |
|  Taiwan Dollar | GSCO | Sell | 4843354 | 156800 |  | 12/21/22 | 684 | (902) |
|  Taiwan Dollar | HSBC | Buy | 3858974 | 123619 |  | 12/21/22 | 1486 |  |
|  Taiwan Dollar | HSBC | Sell | 16722720 | 540000 |  | 12/21/22 |  | (2137) |
|  Taiwan Dollar | JPHQ | Buy | 684769 | 21347 |  | 12/21/22 | 853 |  |
|  Taiwan Dollar | JPHQ | Sell | 6317200 | 200000 |  | 12/21/22 |  | (4798) |
|  Taiwan Dollar | MSCO | Buy | 6783256 | 220000 |  | 12/21/22 | 791 | (884) |
|  Taiwan Dollar | MSCO | Sell | 4418484 | 140000 |  | 12/21/22 |  | (3244) |
|  Taiwan Dollar | SCBL | Buy | 3680988 | 120000 |  | 12/21/22 |  | (665) |
|  Taiwan Dollar | UBSW | Buy | 1715781 | 54000 |  | 12/21/22 | 1625 |  |
|  Taiwan Dollar | UBSW | Sell | 1946162 | 61200 |  | 12/21/22 |  | (1893) |
|  Thai Baht | CITI | Buy | 841094 | 22403 |  | 12/21/22 | 1507 |  |
|  Thai Baht | DBAB | Buy | 11517312 | 320000 |  | 12/21/22 | 7407 |  |
|  Thai Baht | DBAB | Sell | 1221362 | 32200 |  | 12/21/22 |  | (2520) |
|  Thai Baht | GSCO | Buy | 5215000 | 140000 |  | 12/21/22 | 8249 |  |
|  Thai Baht | HSBC | Sell | 11897504 | 320000 |  | 12/21/22 |  | (18214) |
|  Thai Baht | UBSW | Buy | 2535635 | 66755 |  | 12/21/22 | 5326 |  |
|  Thai Baht | UBSW | Sell | 7630749 | 210800 |  | 12/21/22 |  | (6122) |
|  Australian Dollar<sup>b</sup> | MSCO | Buy | 11288000 | 7340190 |  | 12/23/22 | 329996 |  |

---

 <br> 72 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | |
| **Currency** | **Counterparty<sup>a</sup>** | **Type** | **Quantity** | **Contract<br>Amount\*** | **Settlement<br>Date** | **Unrealized<br>Appreciation** |<br>**Unrealized<br>Depreciation** |
| **OTC Forward Exchange Contracts** (continued) | **OTC Forward Exchange Contracts** (continued) | **OTC Forward Exchange Contracts** (continued) | | | | | |
|  Australian Dollar<sup>b</sup> | MSCO | Sell | 22325000 | 14772163 | 12/23/22 | $— | $(397656) |
|  British Pound<sup>b</sup> | MSCO | Buy | 8008000 | 8822379 | 12/23/22 | 838632 | (16) |
|  British Pound<sup>b</sup> | MSCO | Sell | 9849000 | 11420139 | 12/23/22 | 18 | (461891) |
|  Canadian Dollar | BNYM | Buy | 600000 | 436483 | 12/23/22 | 9768 |  |
|  Canadian Dollar | BNYM | Sell | 6026000 | 4388935 | 12/23/22 |  | (92917) |
|  Canadian Dollar<sup>b</sup> | MSCO | Buy | 9965000 | 7457547 | 12/23/22 | 19379 | (65432) |
|  Canadian Dollar<sup>b</sup> | MSCO | Sell | 26220000 | 19326156 | 12/23/22 | 46704 | (221734) |
|  Euro | BNYM | Sell | 665000 | 641299 | 12/23/22 |  | (52204) |
|  Euro<sup>b</sup> | MSCO | Buy | 13204000 | 13225475 | 12/23/22 | 544497 | (21) |
|  Euro<sup>b</sup> | MSCO | Sell | 12565000 | 12627694 | 12/23/22 | 90 | (475961) |
|  Japanese Yen | BNYM | Sell | 42521000 | 296136 | 12/23/22 |  | (12833) |
|  Japanese Yen | HSBC | Buy | 73062460 | 500000 | 12/23/22 | 30891 |  |
|  Japanese Yen | JPHQ | Buy | 85953000 | 600000 | 12/23/22 | 24557 |  |
|  Japanese Yen | JPHQ | Sell | 41665761 | 300000 | 12/23/22 |  | (2754) |
|  Japanese Yen<sup>b</sup> | MSCO | Buy | 1814829000 | 12707285 | 12/23/22 | 479742 |  |
|  Japanese Yen<sup>b</sup> | MSCO | Sell | 2367066000 | 16655940 | 12/23/22 |  | (543786) |
|  Mexican Peso<sup>b</sup> | MSCO | Buy | 71861000 | 3525790 | 12/23/22 | 183206 |  |
|  Mexican Peso<sup>b</sup> | MSCO | Sell | 4134000 | 208698 | 12/23/22 |  | (4671) |
|  New Zealand Dollar<sup>b</sup> | MSCO | Buy | 3302000 | 2004651 | 12/23/22 | 76888 |  |
|  New Zealand Dollar<sup>b</sup> | MSCO | Sell | 7862000 | 4708299 | 12/23/22 |  | (247803) |
|  Swiss Franc<sup>b</sup> | MSCO | Buy | 2825000 | 2973251 | 12/23/22 | 24509 | (2078) |
|  Swiss Franc<sup>b</sup> | MSCO | Sell | 9974000 | 10453182 | 12/23/22 | 1956 | (125383) |
|  Australian Dollar | BNYM | Buy | 809000 | 524349 | 12/28/22 | 25498 |  |
|  Australian Dollar | BNYM | Sell | 989000 | 638587 | 12/28/22 |  | (33599) |
|  Canadian Dollar | BNYM | Sell | 1764000 | 1282908 | 12/28/22 |  | (29202) |
|  Euro | BNYM | Sell | 3865000 | 3737803 | 12/28/22 |  | (294760) |
|  Hong Kong Dollar | BNYM | Sell | 9897000 | 1262695 | 12/28/22 |  | (3888) |
|  Chinese Yuan | BZWS | Sell | 7791102 | 1090000 | 12/29/22 |  | (18400) |
|  Chinese Yuan | DBAB | Sell | 7790884 | 1090000 | 12/29/22 |  | (18369) |
|  South Korean Won | DBAB | Sell | 133712000 | 100000 | 12/29/22 |  | (1430) |
|  South Korean Won | HSBC | Sell | 294178200 | 220000 | 12/29/22 |  | (3155) |
|  South Korean Won | JPHQ | Sell | 267602000 | 200000 | 12/29/22 |  | (2995) |
|  Colombian Peso | MSCS | Sell | 424857000 | 93085 | 1/11/23 | 5741 |  |
|  Indian Rupee | BNPP | Buy | 41585000 | 500000 | 1/17/23 | 9366 |  |
|  Indian Rupee | DBAB | Sell | 41509000 | 500000 | 1/17/23 |  | (8435) |
|  Indian Rupee | GSCO | Sell | 184500 | 2211 | 1/17/23 |  | (49) |
|  Indian Rupee | JPHQ | Buy | 41617500 | 500000 | 1/17/23 | 9764 |  |
|  Indian Rupee | JPHQ | Sell | 41509000 | 500000 | 1/17/23 |  | (8435) |
|  Singapore Dollar | BNPP | Sell | 13000000 | 9484403 | 1/18/23 |  | (72360) |
|  Singapore Dollar | BOFA | Sell | 2000000 | 1456664 | 1/18/23 |  | (13607) |
|  Singapore Dollar | CITI | Sell | 2000000 | 1459002 | 1/18/23 |  | (11269) |
|  Singapore Dollar | GSCO | Buy | 11488368 | 8000000 | 1/18/23 | 445509 |  |
|  Singapore Dollar | HSBC | Buy | 2872630 | 2000000 | 1/18/23 | 111773 |  |
|  Singapore Dollar | HSBC | Sell | 2000000 | 1457875 | 1/18/23 |  | (12396) |
|  Singapore Dollar | MSCO | Buy | 2871920 | 2000000 | 1/18/23 | 111251 |  |
|  Singapore Dollar | MSCO | Sell | 2000000 | 1457195 | 1/18/23 |  | (13076) |
|  Singapore Dollar | SCBL | Sell | 2000000 | 1459005 | 1/18/23 |  | (11266) |
|  Singapore Dollar | SSBT | Buy | 5745600 | 4000000 | 1/18/23 | 223795 |  |
|  Chilean Peso | BNYM | Buy | 172821456 | 173956 | 1/19/23 | 18481 |  |
|  Chilean Peso | BZWS | Buy | 1806261896 | 1901034 | 1/19/23 | 110246 |  |
|  Chilean Peso | BZWS | Sell | 2987660075 | 3180583 | 1/19/23 |  | (146188) |
|  Chilean Peso | GSCO | Buy | 171716613 | 173956 | 1/19/23 | 17251 |  |
|  Chilean Peso | JPHQ | Buy | 1078643362 | 1091054 | 1/19/23 | 110020 |  |
|  Colombian Peso | GSCO | Sell | 4299186488 | 863714 | 1/19/23 |  | (18651) |
|  Colombian Peso | JPHQ | Sell | 18759367795 | 3883474 | 1/19/23 | 60100 | (26799) |
|  Colombian Peso | MSCO | Sell | 5076165295 | 1039218 | 1/19/23 |  | (2614) |

---

 <br> franklintempleton.com Semiannual Report 73

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | |
| **Currency** | **Counterparty<sup>a</sup>** | **Type** | **Quantity** | **Contract<br>Amount\*** | | **Settlement<br>Date** | **Unrealized<br>Appreciation** |<br>**Unrealized<br>Depreciation** |
| **OTC Forward Exchange Contracts** (continued) | **OTC Forward Exchange Contracts** (continued) | **OTC Forward Exchange Contracts** (continued) | | | | | | |
|  Colombian Peso | UBSW | Buy | 7236950000 | 1450000 |  | 1/19/23 | $35312 | $— |
|  Euro | BZWS | Sell | 520653 | 12761362 | CZK | 1/19/23 | 962 | (956) |
|  Euro | MSCO | Sell | 972577 | 23845270 | CZK | 1/19/23 | 5797 | (5483) |
|  Czech Koruna | CITI | Sell | 73643339 | 2955961 | EUR | 1/19/23 | 157175 | (208024) |
|  Polish Zloty | GSCO | Sell | 21140440 | 4282173 | EUR | 1/19/23 | 227692 | (416419) |
|  Euro | JPHQ | Sell | 1455589 | 1439574 |  | 1/19/23 |  | (81504) |
|  Euro | SSBT | Sell | 90000 | 89403 |  | 1/19/23 |  | (4646) |
|  Euro | UBSW | Sell | 50000 | 49135 |  | 1/19/23 |  | (3115) |
|  Euro | BNPP | Sell | 645098 | 275053357 | HUF | 1/19/23 | 49672 | (34554) |
|  Euro | BNYM | Sell | 1206622 | 516540063 | HUF | 1/19/23 | 96046 | (62589) |
|  Euro | GSCO | Sell | 1908907 | 818317949 | HUF | 1/19/23 | 176360 | (120577) |
|  Euro | JPHQ | Sell | 662966 | 284102006 | HUF | 1/19/23 | 54558 | (35437) |
|  Hungarian Forint | MSCO | Sell | 60719317 | 136890 |  | 1/19/23 |  | (15263) |
|  Indian Rupee | DBAB | Buy | 175278750 | 2150000 |  | 1/19/23 |  | (3258) |
|  Indian Rupee | JPHQ | Buy | 173511520 | 2080000 |  | 1/19/23 | 45098 |  |
|  Indian Rupee | JPHQ | Sell | 347974235 | 4180473 |  | 1/19/23 |  | (81373) |
|  Indonesian Rupiah | HSBC | Buy | 47195050000 | 3020000 |  | 1/19/23 |  | (22076) |
|  Indonesian Rupiah | UBSW | Buy | 24104050000 | 1550000 |  | 1/19/23 |  | (18863) |
|  Mexican Peso | BNYM | Buy | 2983950 | 146842 |  | 1/19/23 | 6422 |  |
|  Mexican Peso | BNYM | Sell | 27000000 | 1339491 |  | 1/19/23 |  | (47307) |
|  Mexican Peso | BZWS | Buy | 85643210 | 4350000 |  | 1/19/23 | 48883 |  |
|  Mexican Peso | BZWS | Sell | 103816255 | 5200000 |  | 1/19/23 |  | (132304) |
|  Mexican Peso | DBAB | Sell | 41023500 | 2100000 |  | 1/19/23 |  | (7086) |
|  Mexican Peso | JPHQ | Buy | 18190664 | 890000 |  | 1/19/23 | 44325 |  |
|  Mexican Peso | MSCO | Buy | 34291021 | 1710000 |  | 1/19/23 | 51286 |  |
|  Euro | BNPP | Sell | 1507213 | 15679168 | NOK | 1/19/23 | 103040 | (82967) |
|  Euro | CITI | Sell | 1620832 | 16863222 | NOK | 1/19/23 | 110822 | (89021) |
|  Peruvian Nuevo Sol | FBCO | Sell | 360260 | 89646 |  | 1/19/23 |  | (3857) |
|  Peruvian Nuevo Sol | GSCO | Sell | 2310135 | 598900 |  | 1/19/23 |  | (679) |
|  Polish Zloty | GSCO | Sell | 2071115 | 412810 |  | 1/19/23 |  | (44076) |
|  South African Rand | GSCO | Buy | 86269535 | 4840000 |  | 1/19/23 | 129823 |  |
|  South African Rand | HSBC | Sell | 59033044 | 3400000 |  | 1/19/23 |  | (781) |
|  South African Rand | JPHQ | Sell | 101832261 | 5563932 |  | 1/19/23 |  | (302430) |
|  South African Rand | MSCO | Sell | 29400000 | 1617645 |  | 1/19/23 |  | (76033) |
|  South Korean Won | MSCO | Sell | 3000330000 | 2120000 |  | 1/19/23 |  | (157725) |
|  South Korean Won | UBSW | Buy | 2860687500 | 2190000 |  | 1/19/23 |  | (18286) |
|  Thai Baht | BNYM | Buy | 287716456 | 7631872 |  | 1/19/23 | 571424 |  |
|  Thai Baht | BZWS | Buy | 12309507 | 333546 |  | 1/19/23 | 17419 |  |
|  Thai Baht | CITI | Sell | 16317279 | 460030 |  | 1/19/23 |  | (5204) |
|  Thai Baht | JPHQ | Buy | 35383673 | 958500 |  | 1/19/23 | 50350 |  |
|  Thai Baht | JPHQ | Sell | 320017333 | 8659970 |  | 1/19/23 |  | (464281) |
|  Turkish Lira | GSCO | Buy | 24075000 | 1250000 |  | 1/19/23 | 6220 |  |
|  Turkish Lira | GSCO | Sell | 24008451 | 1192670 |  | 1/19/23 |  | (60078) |
|  British Pound | MSCO | Sell | 725000 | 875917 |  | 1/20/23 | 538 |  |
|  Euro | BOFA | Sell | 370000 | 368653 |  | 1/30/23 |  | (18287) |
|  Euro | BZWS | Sell | 115000 | 114308 |  | 1/30/23 |  | (5957) |
|  Brazilian Real | BNYM | Buy | 209299 | 40000 |  | 2/02/23 |  | (168) |
|  Brazilian Real | CITI | Buy | 7918561 | 1446397 |  | 2/02/23 | 60600 |  |
|  Brazilian Real | GSCO | Buy | 8658398 | 1618422 |  | 2/02/23 | 29374 |  |
|  Brazilian Real | GSCO | Sell | 7304560 | 1310000 |  | 2/02/23 |  | (80145) |
|  Brazilian Real | HSBC | Buy | 3231216 | 600000 |  | 2/02/23 | 14939 |  |
|  Brazilian Real | JPHQ | Sell | 9784644 | 1830000 |  | 2/02/23 |  | (32134) |
|  South Korean Won | MSCO | Buy | 995638301 | 742010 |  | 2/09/23 | 15391 | (889) |
|  South Korean Won | MSCO | Sell | 4617677332 | 3292270 |  | 2/09/23 | 226 | (216591) |
|  Indonesian Rupiah | CITI | Buy | 890881539 | 60778 |  | 2/22/23 |  | (4215) |
|  Indonesian Rupiah | GSCO | Sell | 26370000000 | 1800000 |  | 2/22/23 | 125742 |  |

---

 <br> 74 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | |
| **Currency** | **Counterparty<sup>a</sup>** | **Type** | **Quantity** | **Contract<br>Amount\*** | | **Settlement<br>Date** | **Unrealized<br>Appreciation** |<br>**Unrealized<br>Depreciation** |
| **OTC Forward Exchange Contracts** (continued) | **OTC Forward Exchange Contracts** (continued) | **OTC Forward Exchange Contracts** (continued) | | | | | | |
|  Indonesian Rupiah | JPHQ | Buy | 87150147032 | 5964286 |  | 2/22/23 | $— | $(431036) |
|  Indonesian Rupiah | JPHQ | Sell | 29181428571 | 1964286 |  | 2/22/23 | 111528 |  |
|  Indonesian Rupiah | SCBL | Sell | 32489600000 | 2200000 |  | 2/22/23 | 137203 |  |
|  British Pound | JPHQ | Sell | 550000 | 657256 |  | 2/28/23 |  | (7401) |
|  Danish Krone | JPHQ | Buy | 700000 | 97660 |  | 2/28/23 | 1036 |  |
|  Euro | JPHQ | Sell | 1550000 | 1604493 |  | 2/28/23 |  | (19610) |
|  Polish Zloty | JPHQ | Buy | 200000 | 43421 |  | 2/28/23 | 522 |  |
|  Swedish Krona | JPHQ | Sell | 5200000 | 489071 |  | 2/28/23 |  | (9083) |
|  Swiss Franc | JPHQ | Sell | 350000 | 370303 |  | 2/28/23 |  | (3659) |
|  Singapore Dollar | BNPP | Sell | 129057 | 140000 | AUD | 3/15/23 | 478 |  |
|  Singapore Dollar | BZWS | Sell | 129173 | 140000 | AUD | 3/15/23 | 1982 | (1589) |
|  Australian Dollar | DBAB | Buy | 850000 | 552349 |  | 3/15/23 | 27184 |  |
|  Australian Dollar | DBAB | Sell | 640000 | 417975 |  | 3/15/23 |  | (18379) |
|  Australian Dollar | HSBC | Sell | 600000 | 390227 |  | 3/15/23 |  | (18855) |
|  Australian Dollar | JPHQ | Sell | 2600000 | 1689806 |  | 3/15/23 |  | (82882) |
|  Australian Dollar | SSBT | Sell | 48425 | 32900 |  | 3/15/23 |  | (116) |
|  Australian Dollar | UBSW | Buy | 3460297 | 2248901 |  | 3/15/23 | 110340 |  |
|  British Pound | BOFA | Buy | 200000 | 229227 |  | 3/15/23 | 12537 |  |
|  British Pound | DBAB | Buy | 200000 | 229254 |  | 3/15/23 | 12510 |  |
|  British Pound | DBAB | Sell | 100000 | 120816 |  | 3/15/23 |  | (66) |
|  British Pound | JPHQ | Sell | 20505 | 24900 |  | 3/15/23 | 113 |  |
|  British Pound | MSCO | Sell | 500000 | 587921 |  | 3/15/23 |  | (16490) |
|  British Pound | SSBT | Sell | 200000 | 230607 |  | 3/15/23 |  | (11157) |
|  British Pound | UBSW | Buy | 300000 | 355327 |  | 3/15/23 | 7320 |  |
|  Chinese Yuan | GSCO | Sell | 436301 | 61400 |  | 3/15/23 |  | (1032) |
|  Euro | HSBC | Sell | 62544 | 65700 |  | 3/15/23 | 98 |  |
|  Chinese Yuan | SCBL | Sell | 744753 | 100000 | EUR | 3/15/23 | 775 | (2455) |
|  Indian Rupee | BNPP | Sell | 1010826 | 12300 |  | 3/15/23 |  | (46) |
|  Indonesian Rupiah | HSBC | Sell | 267079010 | 17000 |  | 3/15/23 | 50 |  |
|  Indonesian Rupiah | UBSW | Buy | 2206962800 | 140000 |  | 3/15/23 | 65 |  |
|  Japanese Yen | DBAB | Buy | 19001468 | 140000 |  | 3/15/23 |  | (421) |
|  South Korean Won | JPHQ | Sell | 310438400 | 32000000 | JPY | 3/15/23 | 1136 | (2387) |
|  Japanese Yen | MSCO | Sell | 5804559 | 42500 |  | 3/15/23 |  | (139) |
|  New Zealand Dollar | GSCO | Buy | 140000 | 86658 |  | 3/15/23 | 1679 |  |
|  New Zealand Dollar | SSBT | Sell | 140000 | 87392 |  | 3/15/23 |  | (945) |
|  New Zealand Dollar | UBSW | Buy | 400000 | 249395 |  | 3/15/23 | 2997 |  |
|  Philippine Peso | DBAB | Sell | 17304000 | 300000 |  | 3/15/23 |  | (5515) |
|  Philippine Peso | UBSW | Sell | 967898 | 17000 |  | 3/15/23 |  | (89) |
|  Singapore Dollar | JPHQ | Buy | 602606 | 440000 |  | 3/15/23 | 3461 |  |
|  South Korean Won | CITI | Buy | 265058000 | 200000 |  | 3/15/23 | 1768 |  |
|  South Korean Won | GSCO | Sell | 30829500 | 23400 |  | 3/15/23 |  | (68) |
|  Taiwan Dollar | CITI | Sell | 6074240 | 200000 |  | 3/15/23 | 1404 |  |
|  Taiwan Dollar | HSBC | Sell | 406712 | 13500 |  | 3/15/23 | 203 |  |
|  Taiwan Dollar | JPHQ | Sell | 1152539 | 36800 |  | 3/15/23 |  | (882) |
|  Thai Baht | UBSW | Buy | 4930814 | 140000 |  | 3/15/23 | 1357 |  |
|  Thai Baht | UBSW | Sell | 1923219 | 52800 |  | 3/15/23 |  | (2335) |
|  Philippine Peso | MSCO | Buy | 31070000 | 520000 |  | 3/16/23 | 28557 |  |
|  Singapore Dollar | JPHQ | Sell | 434465 | 310000 | EUR | 3/17/23 | 19740 | (14277) |
|  Indian Rupee | JPHQ | Sell | 26992000 | 320000 |  | 3/17/23 |  | (9623) |
|  Indian Rupee | SCBL | Buy | 61309000 | 740000 |  | 3/17/23 | 8698 |  |
|  Euro | GSCO | Sell | 440000 | 617758 | SGD | 3/17/23 | 19196 | (26141) |
|  Euro | JPHQ | Buy | 1470000 | 1534518 |  | 3/31/23 | 9074 |  |
|  Euro | JPHQ | Sell | 2300000 | 2585108 |  | 3/31/23 | 169964 |  |
|  Singapore Dollar | BNPP | Buy | 13000000 | 9502312 |  | 4/18/23 | 72680 |  |
|  Singapore Dollar | BOFA | Buy | 2000000 | 1459162 |  | 4/18/23 | 13914 |  |
|  Singapore Dollar | CITI | Buy | 2000000 | 1461828 |  | 4/18/23 | 11248 |  |

---

 <br> franklintempleton.com Semiannual Report 75

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | |
| **Currency** | **Counterparty<sup>a</sup>** | **Type** | **Quantity** | **Contract<br>Amount\*** | **Settlement<br>Date** | **Unrealized<br>Appreciation** |<br>**Unrealized<br>Depreciation** |
| **OTC Forward Exchange Contracts** (continued) | **OTC Forward Exchange Contracts** (continued) | **OTC Forward Exchange Contracts** (continued) | | | | | |
|  Singapore Dollar | GSCO | Sell | 11459342 | 8000000 | 4/18/23 | $— | $(440238) |
|  Singapore Dollar | HSBC | Buy | 2000000 | 1460600 | 4/18/23 | 12476 |  |
|  Singapore Dollar | HSBC | Sell | 2865230 | 2000000 | 4/18/23 |  | (110350) |
|  Singapore Dollar | MSCO | Buy | 2000000 | 1459854 | 4/18/23 | 13222 |  |
|  Singapore Dollar | MSCO | Sell | 2864620 | 2000000 | 4/18/23 |  | (109901) |
|  Singapore Dollar | SCBL | Buy | 2000000 | 1461831 | 4/18/23 | 11245 |  |
|  Singapore Dollar | SSBT | Sell | 5730960 | 4000000 | 4/18/23 |  | (221068) |
|  Indian Rupee | CITI | Sell | 80545000 | 1000000 | 5/22/23 | 20300 |  |
|  Indian Rupee | GSCO | Buy | 96569400 | 1200000 | 5/22/23 |  | (25389) |
|  Indian Rupee | HSBC | Buy | 121900 | 1516 | 5/22/23 |  | (33) |
|  Indian Rupee | SCBL | Sell | 80547500 | 1000000 | 5/22/23 | 20270 |  |
|  Indian Rupee | UBSW | Buy | 64401200 | 800000 | 5/22/23 |  | (16664) |
|  Australian Dollar | DBAB | Buy | 3941622 | 2835044 | 5/31/23 |  | (138947) |
|  Australian Dollar | HSBC | Sell | 3941622 | 2833749 | 5/31/23 | 137652 |  |
|  Australian Dollar | UBSW | Buy | 50000 | 34051 | 6/21/23 | 171 |  |
|  Hong Kong Dollar | BOFA | Sell | 10931200 | 1400000 | 6/21/23 | 104 |  |
|  Indonesian Rupiah | BNPP | Buy | 20055410000 | 1300000 | 6/21/23 |  | (29871) |
|  Indonesian Rupiah | BNPP | Sell | 24775536000 | 1600000 | 6/21/23 | 30940 |  |
|  Indonesian Rupiah | BZWS | Buy | 7852500000 | 500000 | 6/21/23 |  | (2693) |
|  Indonesian Rupiah | CITI | Buy | 7853000000 | 500000 | 6/21/23 |  | (2662) |
|  Indonesian Rupiah | HSBC | Sell | 1563941000 | 100000 | 6/21/23 | 954 |  |
|  Indonesian Rupiah | JPHQ | Sell | 12374136000 | 800000 | 6/21/23 | 16334 |  |
|  Indonesian Rupiah | SCBL | Buy | 6140800000 | 400000 | 6/21/23 |  | (11097) |
|  Indonesian Rupiah | SCBL | Sell | 12352000000 | 800000 | 6/21/23 | 17735 |  |
|  Indonesian Rupiah | UBSW | Buy | 9276120000 | 600000 | 6/21/23 |  | (12534) |
|  Chinese Yuan | BNPP | Buy | 13705291 | 2040000 | 8/21/23 |  | (57477) |
|  Chinese Yuan | BNPP | Sell | 9474234 | 1400000 | 8/21/23 | 29516 |  |
|  Chinese Yuan | BZWS | Buy | 9334500 | 1400000 | 8/21/23 |  | (49729) |
|  Chinese Yuan | CITI | Sell | 7011700 | 1000000 | 8/21/23 |  | (14269) |
|  Chinese Yuan | DBAB | Buy | 9409946 | 1400000 | 8/21/23 |  | (38815) |
|  Chinese Yuan | DBAB | Sell | 7025000 | 1000000 | 8/21/23 |  | (16193) |
|  Chinese Yuan | GSCO | Sell | 7177730 | 1060000 | 8/21/23 | 21714 |  |
|  Chinese Yuan | HSBC | Buy | 9366329 | 1400000 | 8/21/23 |  | (45125) |
|  Chinese Yuan | JPHQ | Buy | 20912380 | 3100000 | 8/21/23 | 9284 | (84228) |
|  Chinese Yuan | JPHQ | Sell | 9474360 | 1400000 | 8/21/23 | 29498 |  |
|  Chinese Yuan | SSBT | Sell | 7010000 | 1000000 | 8/21/23 |  | (14023) |
|  Philippine Peso | DBAB | Buy | 57410000 | 1000000 | 9/20/23 | 10218 |  |
|  Philippine Peso | JPHQ | Buy | 57400000 | 1000000 | 9/20/23 | 10042 |  |
|  Singapore Dollar | BNPP | Sell | 1000000 | 703550 | 9/25/23 |  | (36697) |
|  Singapore Dollar | BOFA | Buy | 2400000 | 1758950 | 9/25/23 | 17642 |  |
|  Singapore Dollar | BOFA | Sell | 5212801 | 3704007 | 9/25/23 |  | (154752) |
|  Singapore Dollar | CITI | Buy | 2400000 | 1759274 | 9/25/23 | 17318 |  |
|  Singapore Dollar | DBAB | Buy | 1000000 | 733850 | 9/25/23 | 6397 |  |
|  Singapore Dollar | GSCO | Buy | 1600000 | 1173288 | 9/25/23 | 11107 |  |
|  Singapore Dollar | GSCO | Sell | 1800000 | 1276970 | 9/25/23 |  | (55474) |
|  Singapore Dollar | HSBC | Buy | 1200000 | 879282 | 9/25/23 | 9014 |  |
|  Singapore Dollar | HSBC | Sell | 840564 | 600000 | 9/25/23 |  | (22224) |
|  Singapore Dollar | JPHQ | Buy | 3440000 | 2521975 | 9/25/23 | 24474 |  |
|  Singapore Dollar | JPHQ | Sell | 1401000 | 1000000 | 9/25/23 |  | (37086) |
|  Singapore Dollar | MSCO | Sell | 5441328 | 3871969 | 9/25/23 |  | (155957) |
|  Singapore Dollar | UBSW | Buy | 1320000 | 968310 | 9/25/23 | 8816 |  |
|  Singapore Dollar | UBSW | Sell | 3400840 | 2408005 | 9/25/23 |  | (109455) |
|  Indian Rupee | DBAB | Sell | 42436500 | 500000 | 10/16/23 |  | (12332) |
|  Indian Rupee | GSCO | Buy | 42700000 | 500000 | 10/16/23 | 15514 |  |
|  Indian Rupee | JPHQ | Sell | 263500 | 3085 | 10/16/23 |  | (96) |
|  Chinese Yuan | BNPP | Sell | 20611080 | 3000000 | 12/21/23 |  | (182) |

---

 <br> 76 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | **Forward Exchange Contracts** (continued) | |
| **Currency** | **Counterparty<sup>a</sup>** | **Type** | **Quantity** | **Contract<br>Amount\*** | **Settlement<br>Date** | **Unrealized<br>Appreciation** |<br>**Unrealized<br>Depreciation** |
| **OTC Forward Exchange Contracts** (continued) | **OTC Forward Exchange Contracts** (continued) | | | | | | |
|  Chinese Yuan | DBAB | Sell | 20622720 | 3000000 | 12/21/23 | $— | $(1876) |
|  Philippine Peso | DBAB | Sell | 58320000 | 1000000 | 9/20/24 |  | (24776) |
|  Philippine Peso | JPHQ | Sell | 58310000 | 1000000 | 9/20/24 |  | (24600) |
|  Euro | JPHQ | Sell | 2900000 | 3396074 | 3/31/25 | 240480 |  |
| &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 | $9717341 | $(12374543) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) |  | $(2657202) |

---

\* 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(i).

At November 30, 2022, the Fund had the following credit default swap contracts outstanding. See Note 1(e).

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit Default Swap Contracts** | **Credit Default Swap Contracts** | **Credit Default Swap Contracts** | **Credit Default Swap Contracts** | **Credit Default Swap Contracts** | **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>** | |<br>**Value** |<br>**Upfront<br>Payments<br>(Receipts)** |<br>**Unrealized<br>Appreciation<br>(Depreciation)** |<br>**Rating<sup>b</sup>** |
| **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>** | | | | | | | |
| **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | | | | | | |
|  Government of Indonesia | (1.00)% | Quarterly |  | 12/20/27 | 300000 |  | $(1017) | $8400 | $(9417) |  |
|  Government of South Africa | (1.00)% | Quarterly |  | 12/20/27 | 720000 |  | 44601 | 72955 | (28354) |  |
|  Transocean Inc. | (1.00)% | Quarterly |  | 12/20/25 | 204000 |  | 51850 | 54060 | (2210) |  |
| **Traded Index** | **Traded Index** | **Traded Index** | **Traded Index** | **Traded Index** |  |  |  |  |  |  |
|  CDX.NA.HY.39 | (5.00)% | Quarterly |  | 12/20/27 | 242000 |  | (4540) | 5136 | (9676) |  |
|  CDX.NA.HY.39 | (5.00)% | Quarterly |  | 12/20/27 | 3565000 |  | (66875) | 73779 | (140654) |  |
|  CDX.NA.HY.CDSI | (1.00)% | Quarterly |  | 12/20/27 | 600000 |  | (6540) | 2373 | (8913) |  |
|  iTraxx Europe Crossover S38 | (5.00)% | Quarterly |  | 12/20/27 | 300000 | EUR | (5316) | 12454 | (17770) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Centrally Cleared Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Centrally Cleared Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Centrally Cleared Swap Contracts |  |  |  |  | $12163 | $229157 | $(216994) |  |
| **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>** |  |  |  |  |  |  |  |
| **Single Name** | **Single Name** | **Single Name** | **Counterparty** |  |  |  |  |  |  |  |
|  Air France-KLM | (5.00)% | Quarterly | CITI | 12/20/27 | 27000 | EUR | 1754 | 2932 | (1178) |  |
|  Air France-KLM | (5.00)% | Quarterly | CITI | 12/20/27 | 38000 | EUR | 2468 | 4036 | (1568) |  |
|  Air France-KLM | (5.00)% | Quarterly | CITI | 12/20/27 | 70000 | EUR | 4547 | 5350 | (803) |  |
|  Air France-KLM | (5.00)% | Quarterly | CITI | 12/20/27 | 80000 | EUR | (20502) | 8047 | (28549) |  |
|  Air France-KLM | (5.00)% | Quarterly | CITI | 12/20/27 | 132000 | EUR | 8574 | 10650 | (2076) |  |
|  Air France-KLM | (5.00)% | Quarterly | GSCO | 12/20/22 | 60000 | EUR | (609) | (114) | (495) |  |
|  Air France-KLM | (5.00)% | Quarterly | JPHQ | 6/20/24 | 200000 | EUR | (564) | 4063 | (4627) |  |
|  Air France-KLM | (5.00)% | Quarterly | MSCO | 6/20/24 | 100000 | EUR | (282) | 2636 | (2918) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | BNPP | 12/20/27 | 671000 |  | (65767) | (51152) | (14615) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | BNPP | 12/20/27 | 213000 |  | (20877) | (17128) | (3749) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | BNPP | 12/20/27 | 126000 |  | (12350) | (10972) | (1378) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | CITI | 12/20/24 | 224000 |  | (15605) | (11245) | (4360) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | GSCO | 12/20/27 | 375000 |  | (36755) | (30651) | (6104) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | GSCO | 12/20/27 | 76000 |  | (7449) | (6798) | (651) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | GSCO | 12/20/27 | 81000 |  | (7939) | (6396) | (1543) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | GSCO | 12/20/27 | 63000 |  | (6175) | (6010) | (165) |  |

---

 <br> franklintempleton.com Semiannual Report 77

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (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>** | |<br>**Value** |<br>**Upfront<br>Payments<br>(Receipts)** |<br>**Unrealized<br>Appreciation<br>(Depreciation)** |<br>**Rating<sup>b</sup>** |
| **OTC Swap Contracts** (continued) | **OTC Swap Contracts** (continued) | **OTC Swap Contracts** (continued) | **OTC 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) | | | | | | | |
| **Single Name Counterparty** (continued) | **Single Name Counterparty** (continued) | **Single Name Counterparty** (continued) | | | | | | | | |
|  Ally Financial Inc. | (5.00)% | Quarterly | GSCO | 12/20/27 | 66000 |  | $(6469) | $(5853) | $(616) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | JPHQ | 12/20/27 | 641000 |  | (62826) | (55903) | (6923) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | MSCO | 12/20/24 | 190000 |  | (13236) | (9487) | (3749) |  |
|  American Airlines Inc. | (5.00)% | Quarterly | BZWS | 6/20/23 | 216000 |  | (2486) | 4010 | (6496) |  |
|  American Airlines Inc. | (5.00)% | Quarterly | BZWS | 12/20/23 | 111000 |  | 185 | 2995 | (2810) |  |
|  American Airlines Inc. | (5.00)% | Quarterly | BZWS | 12/20/23 | 154000 |  | 257 | 3548 | (3291) |  |
|  American Airlines Inc. | (5.00)% | Quarterly | BZWS | 6/20/24 | 143000 |  | 4499 | 4633 | (134) |  |
|  American Airlines Inc. | (5.00)% | Quarterly | BZWS | 6/20/24 | 286000 |  | 8997 | 18597 | (9600) |  |
|  American Airlines Inc. | (5.00)% | Quarterly | BZWS | 6/20/24 | 178000 |  | 5600 | 19728 | (14128) |  |
|  American Airlines Inc. | (5.00)% | Quarterly | BZWS | 12/20/24 | 78000 |  | 4515 | 10860 | (6345) |  |
|  American Airlines Inc. | (5.00)% | Quarterly | BZWS | 6/20/25 | 72000 |  | 6660 | 8853 | (2193) |  |
|  American Airlines Inc. | (5.00)% | Quarterly | BZWS | 6/20/25 | 288000 |  | 26642 | 33611 | (6969) |  |
|  American Airlines Inc. | (5.00)% | Quarterly | BZWS | 12/20/26 | 31000 |  | 4723 | 3978 | 745 |  |
|  American Airlines Inc. | (5.00)% | Quarterly | BZWS | 12/20/26 | 116000 |  | 17673 | 7984 | 9689 |  |
|  American Airlines Inc. | (5.00)% | Quarterly | CITI | 6/20/26 | 103000 |  | 14240 | 7066 | 7174 |  |
|  American Airlines Inc. | (5.00)% | Quarterly | GSCO | 12/20/23 | 66000 |  | 110 | 4094 | (3984) |  |
|  American Airlines Inc. | (5.00)% | Quarterly | GSCO | 12/20/23 | 155000 |  | 258 | 7042 | (6784) |  |
|  American Airlines Inc. | (5.00)% | Quarterly | GSCO | 12/20/23 | 483000 |  | 805 | 7634 | (6829) |  |
|  American Airlines Inc. | (5.00)% | Quarterly | GSCO | 6/20/24 | 41000 |  | 1290 | 3339 | (2049) |  |
|  American Airlines Inc. | (5.00)% | Quarterly | GSCO | 6/20/24 | 189000 |  | 5946 | 16896 | (10950) |  |
|  American Airlines Inc. | (5.00)% | Quarterly | GSCO | 12/20/24 | 70000 |  | 4052 | 10234 | (6182) |  |
|  American Airlines Inc. | (5.00)% | Quarterly | JPHQ | 12/20/25 | 89000 |  | 10915 | 11080 | (165) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | Quarterly | JPHQ | 6/20/25 | 66000 |  | (3417) | (3004) | (413) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | Quarterly | JPHQ | 6/20/27 | 134000 |  | (3375) | (1678) | (1697) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | Quarterly | MSCO | 6/20/25 | 106000 |  | (5488) | (4091) | (1397) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | Quarterly | MSCO | 6/20/27 | 335000 |  | (8437) | (4565) | (3872) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | Quarterly | MSCO | 6/20/27 | 134000 |  | (3375) | (2170) | (1205) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | Quarterly | MSCO | 6/20/27 | 67000 |  | (1687) | 701 | (2388) |  |
|  ArcelorMittal SA | (5.00)% | Quarterly | BOFA | 12/20/27 | 127000 | EUR | (17386) | (8028) | (9358) |  |
|  ArcelorMittal SA | (5.00)% | Quarterly | JPHQ | 12/20/27 | 254000 | EUR | (34771) | (16163) | (18608) |  |
|  ArcelorMittal SA | (5.00)% | Quarterly | JPHQ | 12/20/27 | 63000 | EUR | (8624) | (5462) | (3162) |  |
|  ArcelorMittal SA | (5.00)% | Quarterly | JPHQ | 12/20/27 | 63000 | EUR | (8624) | (5066) | (3558) |  |
|  ArcelorMittal SA | (5.00)% | Quarterly | JPHQ | 12/20/27 | 63000 | EUR | (8624) | (4965) | (3659) |  |
|  BMW AG | (1.00)% | Quarterly | BZWS | 12/20/27 | 286000 | EUR | (4510) | 3709 | (8219) |  |
|  BMW AG | (1.00)% | Quarterly | MSCO | 12/20/27 | 281000 | EUR | (4431) | 2901 | (7332) |  |
|  Carnival Corp. | (1.00)% | Quarterly | BZWS | 12/20/26 | 66000 |  | 21461 | 26256 | (4795) |  |
|  Carnival Corp. | (1.00)% | Quarterly | BZWS | 12/20/26 | 66000 |  | 21461 | 26578 | (5117) |  |
|  Carnival Corp. | (1.00)% | Quarterly | BZWS | 12/20/26 | 66000 |  | 21461 | 26722 | (5261) |  |
|  Carnival Corp. | (1.00)% | Quarterly | BZWS | 12/20/26 | 132000 |  | 42922 | 46280 | (3358) |  |
|  Carnival Corp. | (1.00)% | Quarterly | BZWS | 12/20/26 | 132000 |  | 42922 | 52677 | (9755) |  |
|  Carnival Corp. | (1.00)% | Quarterly | CITI | 12/20/26 | 66000 |  | 21461 | 22590 | (1129) |  |
|  Ceconomy AG | (1.00)% | Quarterly | MSCO | 6/20/23 | 12000 | EUR | 490 | 1155 | (665) |  |
|  Ceconomy AG | (1.00)% | Quarterly | MSCO | 12/20/23 | 26000 | EUR | 2505 | 3068 | (563) |  |
|  Ceconomy AG | (1.00)% | Quarterly | MSCO | 12/20/23 | 26000 | EUR | 2505 | 3079 | (574) |  |
|  Ceconomy AG | (1.00)% | Quarterly | MSCO | 12/20/23 | 26000 | EUR | 2505 | 3215 | (710) |  |

---

 <br> 78 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (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>** | |<br>**Value** |<br>**Upfront<br>Payments<br>(Receipts)** |<br>**Unrealized<br>Appreciation<br>(Depreciation)** |<br>**Rating<sup>b</sup>** |
| **OTC Swap Contracts** (continued) | **OTC Swap Contracts** (continued) | **OTC Swap Contracts** (continued) | **OTC 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) | | | | | | | |
| **Single Name Counterparty** (continued) | **Single Name Counterparty** (continued) | **Single Name Counterparty** (continued) | | | | | | | | |
|  Ceconomy AG | (1.00)% | Quarterly | MSCO | 12/20/23 | 52000 | EUR | 5010 | $5801 | $(791) |  |
|  Compagnie de Saint-Gobain SA | (1.00)% | Quarterly | CITI | 12/20/27 | 511000 | EUR | (825) | 11980 | (12805) |  |
|  Compagnie de Saint-Gobain SA | (1.00)% | Quarterly | MSCO | 12/20/27 | 306000 | EUR | (494) | 7189 | (7683) |  |
|  Daimler Truck Holding AG | (1.00)% | Quarterly | GSCO | 12/20/27 | 287000 | EUR | (3086) | 4360 | (7446) |  |
|  Ford Motor Credit Co. LLC | (5.00)% | Quarterly | CITI | 12/20/27 | 408000 |  | (39477) | (23643) | (15834) |  |
|  Ford Motor Credit Co. LLC | (5.00)% | Quarterly | GSCO | 12/20/27 | 4000 |  | (387) | (249) | (138) |  |
|  Ford Motor Credit Co. LLC | (5.00)% | Quarterly | MSCO | 12/20/27 | 143000 |  | (13836) | (11230) | (2606) |  |
|  Ford Motor Credit Co. LLC | (5.00)% | Quarterly | MSCO | 12/20/27 | 57000 |  | (5515) | (2352) | (3163) |  |
|  Government of Argentina | (5.00)% | Quarterly | BZWS | 12/20/26 | 696000 |  | 441276 | 312798 | 128478 |  |
|  Government of Argentina | (5.00)% | Quarterly | CITI | 12/20/26 | 200000 |  | 126803 | 128391 | (1588) |  |
|  Government of Argentina | (5.00)% | Quarterly | CITI | 12/20/26 | 800000 |  | 507214 | 575020 | (67806) |  |
|  Government of Argentina | (5.00)% | Quarterly | GSCO | 12/20/26 | 253000 |  | 160406 | 111891 | 48515 |  |
|  Government of Argentina | (5.00)% | Quarterly | GSCO | 12/20/26 | 842000 |  | 533843 | 372030 | 161813 |  |
|  Government of Argentina | (5.00)% | Quarterly | JPHQ | 12/20/26 | 253000 |  | 160406 | 111786 | 48620 |  |
|  Government of Egypt | (1.00)% | Quarterly | BZWS | 6/20/24 | 695000 |  | 51507 | 44246 | 7261 |  |
|  Government of Egypt | (1.00)% | Quarterly | BZWS | 6/20/24 | 520000 |  | 38537 | 50100 | (11563) |  |
|  Government of Egypt | (1.00)% | Quarterly | BZWS | 6/20/24 | 610000 |  | 45207 | 94683 | (49476) |  |
|  Government of Egypt | (1.00)% | Quarterly | BZWS | 12/20/27 | 475000 |  | 117915 | 135607 | (17692) |  |
|  Government of Italy | (1.00)% | Quarterly | BOFA | 6/20/24 | 132000 |  | (1152) | 965 | (2117) |  |
|  Government of Italy | (1.00)% | Quarterly | JPHQ | 6/20/24 | 218000 |  | (1902) | 742 | (2644) |  |
|  Government of Japan | (1.00)% | Quarterly | BZWS | 12/20/27 | 328000 |  | (12030) | (10206) | (1824) |  |
|  Government of Japan | (1.00)% | Quarterly | BZWS | 12/20/27 | 263000 |  | (9646) | (8153) | (1493) |  |
|  Government of Japan | (1.00)% | Quarterly | BZWS | 12/20/27 | 134000 |  | (4915) | (4145) | (770) |  |
|  Government of Japan | (1.00)% | Quarterly | GSCO | 12/20/27 | 460000 |  | (16872) | (14115) | (2757) |  |
|  Government of Japan | (1.00)% | Quarterly | GSCO | 12/20/27 | 263000 |  | (9646) | (8160) | (1486) |  |
|  Government of Japan | (1.00)% | Quarterly | GSCO | 12/20/27 | 198000 |  | (7262) | (6814) | (448) |  |
|  Government of Japan | (1.00)% | Quarterly | GSCO | 12/20/27 | 133000 |  | (4878) | (4087) | (791) |  |
|  Government of Mexico | (1.00)% | Quarterly | BZWS | 6/20/26 | 680000 |  | (2555) | 1857 | (4412) |  |
|  Government of Turkey | (1.00)% | Quarterly | BZWS | 6/20/24 | 1175000 |  | 53809 | 99439 | (45630) |  |
|  Government of Turkey | (1.00)% | Quarterly | CITI | 12/20/23 | 610000 |  | 16179 | 34487 | (18308) |  |
|  Government of Turkey | (1.00)% | Quarterly | CITI | 6/20/24 | 500000 |  | 22897 | 42480 | (19583) |  |
|  Government of Turkey | (1.00)% | Quarterly | GSCO | 12/20/23 | 1220000 |  | 32357 | 54588 | (22231) |  |
|  Government of Turkey | (1.00)% | Quarterly | GSCO | 6/20/24 | 1300000 |  | 59533 | 117172 | (57639) |  |
|  Government of Turkey | (1.00)% | Quarterly | GSCO | 6/20/24 | 1570000 |  | 71898 | 148772 | (76874) |  |
|  Groupe Casino | (5.00)% | Quarterly | BZWS | 12/20/22 | 80000 | EUR | (618) | 434 | (1052) |  |
|  Groupe Casino | (5.00)% | Quarterly | JPHQ | 12/20/22 | 10000 | EUR | (77) | 54 | (131) |  |
|  HP Inc. | (1.00)% | Quarterly | GSCO | 12/20/27 | 308000 |  | 2672 | 12508 | (9836) |  |
|  HP Inc. | (1.00)% | Quarterly | JPHQ | 12/20/27 | 335000 |  | 2907 | 11745 | (8838) |  |
|  HSBC Holdings PLC | (1.00)% | Quarterly | JPHQ | 12/20/27 | 403000 | EUR | 7554 | 15060 | (7506) |  |

---

 <br> franklintempleton.com Semiannual Report 79

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (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>** | |<br>**Value** |<br>**Upfront<br>Payments<br>(Receipts)** |<br>**Unrealized<br>Appreciation<br>(Depreciation)** |<br>**Rating<sup>b</sup>** |
| **OTC Swap Contracts** (continued) | **OTC Swap Contracts** (continued) | **OTC Swap Contracts** (continued) | **OTC 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) | | | | | | | |
| **Single Name Counterparty** (continued) | **Single Name Counterparty** (continued) | **Single Name Counterparty** (continued) | | | | | | | | |
|  Iceland Bondco | (5.00)% | Quarterly | GSCO | 6/20/25 | 36000 | EUR | 5433 | $5189 | $244 |  |
|  Iceland Bondco | (5.00)% | Quarterly | JPHQ | 6/20/25 | 24000 | EUR | 3622 | 846 | 2776 |  |
|  JFE Holdings Inc. | (1.00)% | Quarterly | BZWS | 12/20/27 | 26519000 | JPY | (4844) | (1877) | (2967) |  |
|  JFE Holdings Inc. | (1.00)% | Quarterly | GSCO | 12/20/27 | 26520000 | JPY | (4845) | (3583) | (1262) |  |
|  JFE Holdings Inc. | (1.00)% | Quarterly | GSCO | 12/20/27 | 13260000 | JPY | (2422) | (1309) | (1113) |  |
|  JFE Holdings Inc. | (1.00)% | Quarterly | GSCO | 12/20/27 | 13260000 | JPY | (2422) | (1028) | (1394) |  |
|  Kawasaki Heavy Industries Ltd. | (1.00)% | Quarterly | BZWS | 12/20/27 | 26354000 | JPY | (6229) | (4061) | (2168) |  |
|  Kawasaki Heavy Industries Ltd. | (1.00)% | Quarterly | BZWS | 12/20/27 | 13177000 | JPY | (3115) | (2574) | (541) |  |
|  Kawasaki Heavy Industries Ltd. | (1.00)% | Quarterly | BZWS | 12/20/27 | 13177000 | JPY | (3115) | (2057) | (1058) |  |
|  Kawasaki Heavy Industries Ltd. | (1.00)% | Quarterly | BZWS | 12/20/27 | 13177000 | JPY | (3115) | (1610) | (1505) |  |
|  Kawasaki Heavy Industries Ltd. | (1.00)% | Quarterly | GSCO | 12/20/27 | 13177000 | JPY | (3115) | (2594) | (521) |  |
|  Kobe Steel Ltd. | (1.00)% | Quarterly | BZWS | 12/20/27 | 7114000 | JPY | (28) | 100 | (128) |  |
|  Kobe Steel Ltd. | (1.00)% | Quarterly | JPHQ | 12/20/27 | 13320000 | JPY | (52) | 232 | (284) |  |
|  Kohl's Corp. | (1.00)% | Quarterly | GSCO | 6/20/26 | 139000 |  | 10136 | 2016 | 8120 |  |
|  Lanxess AG | (1.00)% | Quarterly | GSCO | 12/20/27 | 149000 | EUR | 6332 | 10461 | (4129) |  |
|  Lanxess AG | (1.00)% | Quarterly | JPHQ | 12/20/27 | 746000 | EUR | 31696 | 57376 | (25680) |  |
|  Lloyds Bank | (1.00)% | Quarterly | BZWS | 12/20/27 | 207000 | EUR | 5046 | 12314 | (7268) |  |
|  Lloyds Bank | (1.00)% | Quarterly | CITI | 12/20/27 | 72000 | EUR | 1755 | 3414 | (1659) |  |
|  Lloyds Bank | (1.00)% | Quarterly | CITI | 12/20/27 | 490000 | EUR | 11944 | 22514 | (10570) |  |
|  Lloyds Bank | (1.00)% | Quarterly | JPHQ | 12/20/27 | 69000 | EUR | 1682 | 5209 | (3527) |  |
|  Louis Dreyfus Co. | (5.00)% | Quarterly | JPHQ | 12/20/27 | 106000 | EUR | (18648) | (12796) | (5852) |  |
|  Mitsui OSK Lines | (1.00)% | Quarterly | BZWS | 12/20/27 | 14060000 | JPY | (1094) | (749) | (345) |  |
|  Mitsui OSK Lines | (1.00)% | Quarterly | GSCO | 12/20/27 | 6585000 | JPY | (513) | (371) | (142) |  |
|  Mitsui OSK Lines | (1.00)% | Quarterly | GSCO | 12/20/27 | 13170000 | JPY | (1025) | (133) | (892) |  |
|  Mitsui OSK Lines | (1.00)% | Quarterly | GSCO | 12/20/27 | 13170000 | JPY | (1025) |  | (1025) |  |
|  Mitsui OSK Lines | (1.00)% | Quarterly | GSCO | 12/20/27 | 6585000 | JPY | (513) | 109 | (622) |  |
|  Mitsui OSK Lines | (1.00)% | Quarterly | GSCO | 12/20/27 | 13170000 | JPY | (1025) | 220 | (1245) |  |
|  Mitsui OSK Lines | (1.00)% | Quarterly | JPHQ | 12/20/27 | 13170000 | JPY | (1025) | (836) | (189) |  |
|  Next PLC | (1.00)% | Quarterly | BZWS | 12/20/27 | 43000 | EUR | 1941 | 3033 | (1092) |  |
|  Next PLC | (1.00)% | Quarterly | CITI | 12/20/27 | 362000 | EUR | 16340 | 25538 | (9198) |  |
|  Next PLC | (1.00)% | Quarterly | GSCO | 12/20/27 | 144000 | EUR | 6500 | 10216 | (3716) |  |
|  Nippon Paper Industries Co. Ltd. | (1.00)% | Quarterly | BZWS | 12/20/27 | 3565000 | JPY | 1077 | 1647 | (570) |  |
|  Nippon Paper Industries Co. Ltd. | (1.00)% | Quarterly | BZWS | 12/20/27 | 28523000 | JPY | 8617 | 10689 | (2072) |  |
|  Nippon Paper Industries Co. Ltd. | (1.00)% | Quarterly | JPHQ | 12/20/27 | 14262000 | JPY | 4309 | 6865 | (2556) |  |
|  Nippon Steel Corp. | (1.00)% | Quarterly | BZWS | 12/20/27 | 33149000 | JPY | (6728) | (3476) | (3252) |  |
|  Nippon Steel Corp. | (1.00)% | Quarterly | BZWS | 12/20/27 | 13260000 | JPY | (2691) | (1629) | (1062) |  |
|  Nippon Steel Corp. | (1.00)% | Quarterly | GSCO | 12/20/27 | 13260000 | JPY | (2691) | (2272) | (419) |  |
|  Nippon Steel Corp. | (1.00)% | Quarterly | MSCO | 12/20/27 | 26520000 | JPY | (5383) | (4078) | (1305) |  |
|  Rakuten Group Inc. | (1.00)% | Quarterly | BZWS | 12/20/24 | 12659000 | JPY | 5826 | 2040 | 3786 |  |
|  Rakuten Group Inc. | (1.00)% | Quarterly | CITI | 12/20/24 | 28584000 | JPY | 13155 | 7984 | 5171 |  |
|  Rakuten Group Inc. | (1.00)% | Quarterly | JPHQ | 12/20/24 | 14292000 | JPY | 6577 | 3694 | 2883 |  |
|  Rakuten Group Inc. | (1.00)% | Quarterly | JPHQ | 6/20/27 | 473000 | JPY | 434 | 264 | 170 |  |
|  Rakuten Group Inc. | (1.00)% | Quarterly | JPHQ | 6/20/27 | 3263000 | JPY | 2990 | 2373 | 617 |  |
|  Rakuten Group Inc. | (1.00)% | Quarterly | JPHQ | 6/20/27 | 7070000 | JPY | 6479 | 5284 | 1195 |  |

---

 <br> 80 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (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>** | |<br>**Value** |<br>**Upfront<br>Payments<br>(Receipts)** |<br>**Unrealized<br>Appreciation<br>(Depreciation)** |<br>**Rating<sup>b</sup>** |
| **OTC Swap Contracts** (continued) | **OTC Swap Contracts** (continued) | **OTC Swap Contracts** (continued) | **OTC 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) | | | | | | | |
| **Single Name Counterparty** (continued) | **Single Name Counterparty** (continued) | **Single Name Counterparty** (continued) | | | | | | | | |
|  Rakuten Group Inc. | (1.00)% | Quarterly | JPHQ | 12/20/27 | 7202000 | JPY | 7147 | $6027 | $1120 |  |
|  Simon Property Group LP | (1.00)% | Quarterly | BNPP | 12/20/27 | 271000 |  | 174 | 4193 | (4019) |  |
|  Simon Property Group LP | (1.00)% | Quarterly | BZWS | 12/20/27 | 478000 |  | 307 | 8222 | (7915) |  |
|  Societe Generale SA | (1.00)% | Quarterly | BZWS | 12/20/23 | 700000 | EUR | (4870) | 3298 | (8168) |  |
|  Softbank Group Corp. | (1.00)% | Quarterly | BZWS | 6/20/27 | 3561000 | JPY | 2830 | 3504 | (674) |  |
|  Softbank Group Corp. | (1.00)% | Quarterly | BZWS | 6/20/27 | 6111000 | JPY | 4857 | 5704 | (847) |  |
|  Softbank Group Corp. | (1.00)% | Quarterly | BZWS | 6/20/27 | 30569000 | JPY | 24297 | 28724 | (4427) |  |
|  Stellantis NV | (5.00)% | Quarterly | BZWS | 12/20/27 | 73000 | EUR | (11951) | (7722) | (4229) |  |
|  Stellantis NV | (5.00)% | Quarterly | CITI | 12/20/27 | 292000 | EUR | (47803) | (30790) | (17013) |  |
|  Stellantis NV | (5.00)% | Quarterly | CITI | 12/20/27 | 72000 | EUR | (11787) | (8431) | (3356) |  |
|  Stena AB | (5.00)% | Quarterly | BZWS | 6/20/24 | 71000 | EUR | 360 | (1658) | 2018 |  |
|  Stena AB | (5.00)% | Quarterly | GSCO | 6/20/24 | 15000 | EUR | 76 | 125 | (49) |  |
|  Stena AB | (5.00)% | Quarterly | GSCO | 6/20/24 | 22000 | EUR | 112 | 183 | (71) |  |
|  Stena AB | (5.00)% | Quarterly | GSCO | 12/20/24 | 273000 | EUR | 2050 | (11373) | 13423 |  |
|  Stena AB | (5.00)% | Quarterly | GSCO | 6/20/27 | 14000 | EUR | 502 | (27) | 529 |  |
|  Stena AB | (5.00)% | Quarterly | JPHQ | 6/20/27 | 29000 | EUR | 1039 | 279 | 760 |  |
|  Stena AB | (5.00)% | Quarterly | JPHQ | 6/20/27 | 29000 | EUR | 1039 | 334 | 705 |  |
|  Stena AB | (5.00)% | Quarterly | JPHQ | 6/20/27 | 28000 | EUR | 1004 | 622 | 382 |  |
|  Stena AB | (5.00)% | Quarterly | JPHQ | 6/20/27 | 142000 | EUR | 5090 | 841 | 4249 |  |
|  Stena AB | (5.00)% | Quarterly | JPHQ | 6/20/27 | 157000 | EUR | 5628 | 1207 | 4421 |  |
|  Stena AB | (5.00)% | Quarterly | JPHQ | 6/20/27 | 71000 | EUR | 2545 | 4457 | (1912) |  |
|  TDC A/S | (1.00)% | Quarterly | BNPP | 6/20/27 | 212000 | EUR | 757 | 10973 | (10216) |  |
|  U.S. Steel Corp. | (5.00)% | Quarterly | BZWS | 12/20/27 | 26000 |  | (113) | 1116 | (1229) |  |
|  U.S. Steel Corp. | (5.00)% | Quarterly | BZWS | 12/20/27 | 66000 |  | (286) | 3259 | (3545) |  |
|  U.S. Steel Corp. | (5.00)% | Quarterly | GSCO | 12/20/27 | 66000 |  | (286) | 1347 | (1633) |  |
|  U.S. Steel Corp. | (5.00)% | Quarterly | MSCO | 12/20/27 | 66000 |  | (286) | 982 | (1268) |  |
|  U.S. Steel Corp. | (5.00)% | Quarterly | MSCO | 12/20/27 | 66000 |  | (286) | 3247 | (3533) |  |
|  U.S. Steel Corp. | (5.00)% | Quarterly | MSCO | 12/20/27 | 66000 |  | (286) | 3507 | (3793) |  |
|  U.S. Steel Corp. | (5.00)% | Quarterly | MSCO | 12/20/27 | 131000 |  | (568) | 4153 | (4721) |  |
|  UniCredit SpA | (1.00)% | Quarterly | JPHQ | 12/20/27 | 329000 | EUR | 24519 | 35580 | (11061) |  |
| **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** |  |  |  |  |  |  |
|  American Axle & Manufacturing Inc. | 5.00% | Quarterly | CITI | 6/20/25 | 90000 |  | 4660 | 4087 | 573 | BB- |
|  American Axle & Manufacturing Inc. | 5.00% | Quarterly | GSCO | 12/20/27 | 67000 |  | 1017 | 3020 | (2003) | BB- |
|  American Axle & Manufacturing Inc. | 5.00% | Quarterly | MSCO | 6/20/25 | 4000 |  | 207 | 146 | 61 | BB- |
|  American Axle & Manufacturing Inc. | 5.00% | Quarterly | MSCO | 6/20/25 | 335000 |  | 17345 | 14596 | 2749 | BB- |

---

 <br> franklintempleton.com Semiannual Report 81

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (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>** |<br>**Value** |<br>**Upfront<br>Payments<br>(Receipts)** |<br>**Unrealized<br>Appreciation<br>(Depreciation)** |<br>**Rating<sup>b</sup>** |
| **OTC Swap Contracts** (continued) | **OTC Swap Contracts** (continued) | **OTC Swap Contracts** (continued) | **OTC Swap Contracts** (continued) | | | | | | |
| **Contracts to Sell Protection<sup>c,d</sup>** (continued) | **Contracts to Sell Protection<sup>c,d</sup>** (continued) | **Contracts to Sell Protection<sup>c,d</sup>** (continued) | **Contracts to Sell Protection<sup>c,d</sup>** (continued) | | | | | | |
| **Single Name** (continued) | **Single Name** (continued) | **Single Name** (continued) | **Single Name** (continued) | **Single Name** (continued) | | | | | |
|  Calpine Corp. | 5.00% | Quarterly | JPHQ | 12/20/27 | 22000 | $1051 | $(212) | $1263 | BB- |
|  Calpine Corp. | 5.00% | Quarterly | JPHQ | 12/20/27 | 264000 | 12612 | 1001 | 11611 | BB- |
|  Kohl's Corp. | 1.00% | Quarterly | BOFA | 6/20/26 | 141000 | (10281) | (9046) | (1235) | BB+ |
|  United Airlines Inc. | 5.00% | Quarterly | MSCO | 12/20/27 | 63000 | (2062) | (6754) | 4692 | B+ |
|  United Airlines Inc. | 5.00% | Quarterly | MSCO | 12/20/27 | 63000 | (2062) | (5307) | 3245 | B+ |
| &nbsp;&nbsp;&nbsp;&nbsp; Total OTC Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total OTC Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total OTC Swap Contracts |  |  |  | $2349046 | $2814965 | $(465919) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts |  | $2361209 | $3044122 | $(682913) |  |

---

<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.

<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.

At November 30, 2022, the Fund had the following cross-currency swap contracts outstanding. See Note 1(e).

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Cross-Currency Swap Contracts** | **Cross-Currency Swap Contracts** | | | | | |
| **Description** | **Payment<br>Frequency** |<br>**Counterparty** |<br>**Maturity<br>Date** |<br>**Notional<br>Amount** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** | **OTC Swap Contracts** | | | | | |
|  Receive Floating Rate Overnight SOFR<br>Pay Floating rate Overnight SIBCSORA + 0.41% | Semi-Annually | GSCO | 10/14/23 | $4355970<br>5900000 | SGD | $5265 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Cross-Currency Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Cross-Currency Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Cross-Currency Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Cross-Currency Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Cross-Currency Swap Contracts |  | $5265 |

---

At November 30, 2022, the Fund had the following interest rate swap contracts outstanding. See Note 1(e).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Interest Rate Swap Contracts**<br>**Description** |<br>**Payment<br>Frequency** |<br>**Maturity<br>Date** |<br>**Notional<br>Amount\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **Centrally Cleared Swap Contracts** | | | |  | |
|  Receive Fixed 1.34%<br>Pay Floating 3-Month-KDR | Quarterly | 12/15/22 | 46000000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | $(139244) |
|  Receive Fixed 1.39%<br>Pay Floating 3-Month-KDR | Quarterly | 12/15/22 | 9600000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | (4240) |
|  Receive Floating 3-Month-KDR<br>Pay Fixed rate 2.94% | Quarterly | 12/15/22 | 6560000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | (87) |
|  Receive Floating AONIA<br>Pay Fixed rate 3.35% | Annually | 2/08/23 | 10630000 | &nbsp;&nbsp;&nbsp;&nbsp;AUD | (4365) |
|  Receive Fixed 6.03%<br>Pay Floating MIBOR | Annually | 3/14/23 | 340000000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | 1061 |
|  Receive Floating MIBOR<br>Pay Fixed rate 6.03% | Annually | 3/14/23 | 204000000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | (862) |
|  Receive Floating MIBOR<br>Pay Fixed rate 6.64% | Annually | 3/14/23 | 136000000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | (1229) |

---

 <br> 82 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Interest Rate Swap Contracts** (continued)<br>**Description** |<br>**Payment<br>Frequency** |<br>**Maturity<br>Date** |<br>**Notional<br>Amount\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **Centrally Cleared Swap Contracts** (continued) | | | |  | |
|  Receive Fixed 1.81%<br>Pay Floating rate China 7-Day Repo | Quarterly | 3/15/23 | 60000000 | &nbsp;&nbsp;&nbsp;&nbsp;CNY | $(9507) |
|  Receive Fixed 3.51%<br>Pay Floating 3-Month-KDR | Quarterly | 3/21/23 | 10200000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | (7801) |
|  Receive Fixed 2.63%<br>Pay Floating rate Euro STR | Annually | 5/10/23 | 37800000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | (1039) |
|  Receive Fixed 4.92%<br>Pay Floating MIBOR | Annually | 5/10/23 | 384000000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | 6408 |
|  Receive Fixed 6.10%<br>Pay Floating MIBOR | Annually | 5/10/23 | 372000000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | 5087 |
|  Receive Floating MIBOR<br>Pay Fixed rate 6.60% | Annually | 5/10/23 | 581800000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | (1607) |
|  Receive Fixed 1.82%<br>Pay Floating rate China 7-Day Repo | Quarterly | 6/15/23 | 60000000 | &nbsp;&nbsp;&nbsp;&nbsp;CNY | (17615) |
|  Receive Fixed 1.96%<br>Pay Floating CNRR007 Index | Quarterly | 6/15/23 | 54000000 | &nbsp;&nbsp;&nbsp;&nbsp;CNY | (7980) |
|  Receive Fixed 2.11%<br>Pay Floating rate China 7-Day Repo | Quarterly | 6/15/23 | 50000000 | &nbsp;&nbsp;&nbsp;&nbsp;CNY | (3770) |
|  Receive Fixed 2.19%<br>Pay Floating CNRR007 Index | Quarterly | 6/15/23 | 88000000 | &nbsp;&nbsp;&nbsp;&nbsp;CNY | 8043 |
|  Receive Fixed 2.20%<br>Pay Floating rate China 7-Day Repo | Quarterly | 6/15/23 | 31000000 | &nbsp;&nbsp;&nbsp;&nbsp;CNY | 3402 |
|  Receive Floating rate China 7-Day Repo<br>Pay Fixed rate 2.19% | Quarterly | 6/15/23 | 38220000 | &nbsp;&nbsp;&nbsp;&nbsp;CNY | 8960 |
|  Receive Fixed 2.15%<br>Pay Floating rate China 7-Day Repo | Quarterly | 6/21/23 | 48000000 | &nbsp;&nbsp;&nbsp;&nbsp;CNY | (1510) |
|  Receive Fixed 2.82%<br>Pay Floating rate Euro STR | Annually | 6/21/23 | 44600000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | 1154 |
|  Receive Floating rate Euro STR<br>Pay Fixed rate 2.80% | Annually | 6/21/23 | 44600000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | (32) |
|  Receive Floating rate Euro STR<br>Pay Fixed rate 2.88% | Annually | 8/02/23 | 45000000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | (1896) |
|  Receive Fixed 4.39%<br>Pay Floating 3-Month-KDR | Quarterly | 9/15/23 | 8700000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 10318 |
|  Receive Fixed 4.24%<br>Pay Floating 3-Month-KDR | Quarterly | 9/20/23 | 8500000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 5301 |
|  Receive Fixed 4.24%<br>Pay Floating 3-Month-KDR | Quarterly | 9/20/23 | 5646000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 3542 |
|  Receive Fixed 3.47%<br>Pay Floating rate Overnight SIBCSORA | Semi-<br>Annually | 9/23/23 | 6040000 | &nbsp;&nbsp;&nbsp;&nbsp;SGD | (17368) |
|  Receive Fixed 4.46%<br>Pay Floating 3-Month-KDR | Quarterly | 9/23/23 | 5660000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 8317 |
|  Receive Floating rate Overnight SOFR<br>Pay Fixed rate 4.20% | Annually | 9/23/23 | 4160000 |  | 14919 |
|  Receive Fixed 4.16%<br>Pay Floating 3-Month-KDR | Quarterly | 10/26/23 | 8210000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 6460 |
|  Receive Floating 3-Month-KDR<br>Pay Fixed rate 3.84% | Quarterly | 10/26/23 | 8210000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 10901 |
|  Receive Fixed 2.30%<br>Pay Floating rate China 7-Day Repo | Quarterly | 12/21/23 | 44000000 | &nbsp;&nbsp;&nbsp;&nbsp;CNY | 1416 |
|  Receive Fixed 2.96%<br>Pay Floating rate 3-Month-BKBM | Quarterly | 12/21/23 | 10802700 | &nbsp;&nbsp;&nbsp;&nbsp;NZD | (20857) |
|  Receive Fixed 3.88%<br>Pay Floating 3-Month-KDR | Quarterly | 12/21/23 | 4000000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | (4901) |
|  Receive Floating rate Overnight SOFR<br>Pay Fixed rate 4.83% | Annually | 12/21/23 | 6000000 |  | 2716 |

---

 <br> franklintempleton.com Semiannual Report 83

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Interest Rate Swap Contracts** (continued)<br>**Description** |<br>**Payment<br>Frequency** |<br>**Maturity<br>Date** |<br>**Notional<br>Amount\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **Centrally Cleared Swap Contracts** (continued) | | | |  | |
|  Receive Floating rate 1 Year-SOFR<br>Pay Fixed rate 1.36% | Annually | 3/08/24 | 4000000 |  | $167316 |
|  Receive Fixed 4.96%<br>Pay Floating rate Overnight SOFR | Annually | 3/15/24 | 6280000 |  | 6942 |
|  Receive Fixed 4.96%<br>Pay Floating rate Overnight SOFR | Annually | 3/15/24 | 6300000 |  | 6663 |
|  Receive Fixed 7.36%<br>Pay Floating MIBOR | Annually | 3/15/24 | 624000000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | 51845 |
|  Receive Floating MIBOR<br>Pay Fixed rate 6.58% | Annually | 3/15/24 | 364000000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | 1349 |
|  Receive Floating rate Overnight SIBCSORA<br>Pay Fixed rate 4.16% | Semi-Annually | 3/15/24 | 17200000 | &nbsp;&nbsp;&nbsp;&nbsp;SGD | (26062) |
|  Receive Fixed 5.50%<br>Pay Floating MIBOR | Semi-Annually | 4/11/24 | 228480000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | 907 |
|  Receive Floating MIBOR<br>Pay Fixed rate 6.51% | Semi-Annually | 4/11/24 | 391680000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | (2523) |
|  Receive Floating 3-Month-KDR<br>Pay Fixed rate 3.51% | Quarterly | 8/25/24 | 5560000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 13742 |
|  Receive Floating 3-Month-KDR<br>Pay Fixed rate 3.82% | Quarterly | 9/20/24 | 5720000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 15 |
|  Receive Fixed 9.47%<br>Pay Floating Banxico Mexico 1 Month Rate | Monthly | 10/22/24 | 82400000 | &nbsp;&nbsp;&nbsp;&nbsp;MXN | (39762) |
|  Receive Fixed 7.74%<br>Pay Floating rate 3-Month-JIBAR | Quarterly | 10/25/24 | 49768689 | &nbsp;&nbsp;&nbsp;&nbsp;ZAR | (5747) |
|  Receive Fixed 4.00%<br>Pay Floating 3-Month-BBSW | Quarterly | 12/20/24 | 8000000 | &nbsp;&nbsp;&nbsp;&nbsp;AUD | 12313 |
|  Receive Floating rate 3-Month-TAIBOR<br>Pay Fixed rate 1.22% | Quarterly | 12/20/24 | 385000000 | &nbsp;&nbsp;&nbsp;&nbsp;TWD | (4946) |
|  Receive Floating rate Overnight SIBCSORA<br>Pay Fixed rate 3.29% | Semi-Annually | 12/20/24 | 2940000 | &nbsp;&nbsp;&nbsp;&nbsp;SGD | (292) |
|  Receive Fixed 5.24%<br>Pay Floating rate 3-Month-BKBM | Quarterly | 12/21/24 | 4700000 | &nbsp;&nbsp;&nbsp;&nbsp;NZD | 1384 |
|  Receive Fixed 8.44%<br>Pay Floating BRLCDI | Annually | 1/02/25 | 12000000 | &nbsp;&nbsp;&nbsp;&nbsp;BRL | (214288) |
|  Receive Fixed 6.67%<br>Pay Floating rate 6-Month-CZEONIA | Semi-Annually | 1/19/25 | 66992676 | &nbsp;&nbsp;&nbsp;&nbsp;CZK | 52181 |
|  Receive Fixed 6.63%<br>Pay Floating rate 6-Month-CZEONIA | Semi-Annually | 1/20/25 | 77898460 | &nbsp;&nbsp;&nbsp;&nbsp;CZK | 58126 |
|  Receive Fixed 6.63%<br>Pay Floating rate 6-Month-CZEONIA | Semi-Annually | 1/20/25 | 77898460 | &nbsp;&nbsp;&nbsp;&nbsp;CZK | 58126 |
|  Receive Fixed 3.87%<br>Pay Floating 3-Month-KLIBOR | Quarterly | 6/15/25 | 11600000 | &nbsp;&nbsp;&nbsp;&nbsp;MYR | 1047 |
|  Receive Fixed 3.64%<br>Pay Floating 3-Month-KDR | Quarterly | 6/21/25 | 4500000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | (4348) |
|  Receive Fixed 6.30%<br>Pay Floating rate 3-Month-JIBAR | Quarterly | 7/31/25 | 53795745 | &nbsp;&nbsp;&nbsp;&nbsp;ZAR | (84458) |
|  Receive Fixed 7.57%<br>Pay Floating rate 3-Month-JIBAR | Quarterly | 11/04/25 | 39000000 | &nbsp;&nbsp;&nbsp;&nbsp;ZAR | (12144) |
|  Receive Floating Banxico Mexico 1 Month rate<br>Pay Fixed rate 9.35% | Monthly | 12/17/25 | 12235010 | &nbsp;&nbsp;&nbsp;&nbsp;MXN | (3944) |
|  Receive Fixed 3.31%<br>Pay Floating 3-Month-KDR | Quarterly | 12/20/25 | 15136000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | (47681) |
|  Receive Fixed 3.56%<br>Pay Floating rate Overnight SOFR | Annually | 12/20/25 | 3520000 |  | 7711 |
|  Receive Fixed 3.64%<br>Pay Floating rate Overnight SOFR | Annually | 12/20/25 | 3500000 |  | 12869 |

---

 <br> 84 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Interest Rate Swap Contracts** (continued)<br>**Description** |<br>**Payment<br>Frequency** |<br>**Maturity<br>Date** |<br>**Notional<br>Amount\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **Centrally Cleared Swap Contracts** (continued) | | | |  | |
|  Receive Floating 3-Month-KDR<br>Pay Fixed rate 4.14% | Quarterly | 12/20/25 | 9636000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | $(84070) |
|  Receive Floating 3-Month-KDR<br>Pay Fixed rate 6.03% | Quarterly | 12/21/25 | 307000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | (2996) |
|  Receive Fixed 4.06%<br>Pay Floating 3-Month-KDR | Quarterly | 6/11/26 | 1320000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 11863 |
|  Receive Floating 3-Month-KDR<br>Pay Fixed rate 3.25% | Quarterly | 6/11/26 | 3520000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 8310 |
|  Receive Floating rate 3-Month USD LIBOR<br>Pay Fixed rate 0.50% | Quarterly | 6/16/26 | 1400000 |  | 129683 |
|  Receive Floating rate 3-Month USD LIBOR<br>Pay Fixed rate 0.50% | Quarterly | 6/16/26 | 1150000 |  | 107940 |
|  Receive Fixed 4.02%<br>Pay Floating 3-Month-KDR | Quarterly | 9/27/26 | 1200000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 10959 |
|  Receive Fixed 1.25%<br>Pay Floating 3-Month-USD LIBOR | Semi-Annually | 12/15/26 | 1300000 |  | (127261) |
|  Receive Fixed 11.07%<br>Pay Floating BRLCDI | Annually | 1/04/27 | 9430255 | &nbsp;&nbsp;&nbsp;&nbsp;BRL | (68277) |
|  Receive Fixed 11.22%<br>Pay Floating BRLCDI | Annually | 1/04/27 | 8000000 | &nbsp;&nbsp;&nbsp;&nbsp;BRL | (51811) |
|  Receive Fixed 11.22%<br>Pay Floating BRLCDI | Annually | 1/04/27 | 10436876 | &nbsp;&nbsp;&nbsp;&nbsp;BRL | (67215) |
|  Receive Fixed 11.26%<br>Pay Floating BRLCDI | Annually | 1/04/27 | 9695993 | &nbsp;&nbsp;&nbsp;&nbsp;BRL | (60831) |
|  Receive Fixed 11.48%<br>Pay Floating BRLCDI | Annually | 1/04/27 | 10436876 | &nbsp;&nbsp;&nbsp;&nbsp;BRL | (53793) |
|  Receive Fixed 12.34%<br>Pay Floating BRLCDI | Annually | 1/04/27 | 5028240 | &nbsp;&nbsp;&nbsp;&nbsp;BRL | (6975) |
|  Receive Fixed 12.72%<br>Pay Floating BRLCDI | Annually | 1/04/27 | 10721816 | &nbsp;&nbsp;&nbsp;&nbsp;BRL | 9572 |
|  Receive Fixed 12.79%<br>Pay Floating BRLCDI | Annually | 1/04/27 | 10721816 | &nbsp;&nbsp;&nbsp;&nbsp;BRL | 12737 |
|  Receive Floating rate 1 Year-SOFR<br>Pay Fixed rate 1.42% | Annually | 3/08/27 | 4000000 |  | 352805 |
|  Receive Fixed 8.78%<br>Pay Floating Banxico Mexico 1 Month Rate | Monthly | 10/19/27 | 72800000 | &nbsp;&nbsp;&nbsp;&nbsp;MXN | (15443) |
|  Receive Fixed 3.89%<br>Pay Floating 3-Month-KDR | Quarterly | 12/17/27 | 9832000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 80753 |
|  Receive Floating 3-Month-KDR<br>Pay Fixed rate 3.04% | Quarterly | 12/17/27 | 15452400000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 50413 |
|  Receive Fixed 3.46%<br>Pay Floating rate Overnight SOFR | Annually | 12/21/27 | 2218000 |  | (10505) |
|  Receive Fixed 4.13%<br>Pay Floating rate Overnight SOFR | Annually | 12/21/27 | 2700000 |  | 68662 |
|  Receive Fixed 6.42%<br>Pay Floating MIBOR | Semi-Annually | 12/21/27 | 79000000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | 4027 |
|  Receive Fixed 6.52%<br>Pay Floating MIBOR | Semi-Annually | 12/21/27 | 40000000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | 4085 |
|  Receive Fixed 6.54%<br>Pay Floating MIBOR | Semi-Annually | 12/21/27 | 78600000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | 8864 |
|  Receive Floating MIBOR<br>Pay Fixed rate 6.47% | Semi-Annually | 12/21/27 | 124000000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | (9030) |
|  Receive Floating MIBOR<br>Pay Fixed rate 6.53% | Semi-Annually | 12/21/27 | 59000000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | (6418) |
|  Receive Floating MIBOR<br>Pay Fixed rate 6.75% | Semi-Annually | 12/21/27 | 39600000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | (8939) |

---

 <br> franklintempleton.com Semiannual Report 85

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Interest Rate Swap Contracts** (continued)<br>**Description** |<br>**Payment<br>Frequency** |<br>**Maturity<br>Date** |<br>**Notional<br>Amount\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **Centrally Cleared Swap Contracts** (continued) | | | |  | |
|  Receive Floating rate 6-Month-BBSW<br>Pay Fixed rate 3.97% | Semi-Annually | 12/21/27 | 3304000 | &nbsp;&nbsp;&nbsp;&nbsp;AUD | $(4566) |
|  Receive Floating rate 6-Month-WIBOR<br>Pay Fixed rate 6.025% | Semi-Annually | 12/21/27 | 1533195 | &nbsp;&nbsp;&nbsp;&nbsp;PLN | (2254) |
|  Receive Floating rate China 7-Day Repo<br>Pay Fixed rate 2.56% | Quarterly | 12/21/27 | 6300000 | &nbsp;&nbsp;&nbsp;&nbsp;CNY | 11200 |
|  Receive Floating rate China 7-Day Repo<br>Pay Fixed rate 2.56% | Quarterly | 12/21/27 | 6400000 | &nbsp;&nbsp;&nbsp;&nbsp;CNY | 11583 |
|  Receive Floating rate China 7-Day Repo<br>Pay Fixed rate 2.79% | Quarterly | 12/21/27 | 6200000 | &nbsp;&nbsp;&nbsp;&nbsp;CNY | 1844 |
|  Receive Floating rate China 7-Day Repo<br>Pay Fixed rate 6.03% | Quarterly | 12/21/27 | 8000000 | &nbsp;&nbsp;&nbsp;&nbsp;CNY | 19242 |
|  Receive Floating rate China 7-Day Repo<br>Pay Fixed rate 6.03% | Quarterly | 12/21/27 | 8000000 | &nbsp;&nbsp;&nbsp;&nbsp;CNY | 19937 |
|  Receive Fixed 4.16%<br>Pay Floating 3-Month-KDR | Quarterly | 1/19/28 | 3470000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 76641 |
|  Receive Fixed 4.23%<br>Pay Floating 3-Month-KDR | Quarterly | 1/19/28 | 1492100000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 36819 |
|  Receive Fixed 6.12%<br>Pay Floating rate 6-Month-WIBOR | Semi-Annually | 1/19/28 | 2820745 | &nbsp;&nbsp;&nbsp;&nbsp;PLN | (7520) |
|  Receive Fixed 6.14%<br>Pay Floating rate 6-Month-WIBOR | Semi-Annually | 1/19/28 | 979255 | &nbsp;&nbsp;&nbsp;&nbsp;PLN | (2825) |
|  Receive Fixed 6.58%<br>Pay Floating rate CLP TNA | Semi-Annually | 1/19/28 | 1526993811 | &nbsp;&nbsp;&nbsp;&nbsp;CLP | (78196) |
|  Receive Fixed 6.86%<br>Pay Floating rate CLP TNA | Semi-Annually | 1/19/28 | 819202689 | &nbsp;&nbsp;&nbsp;&nbsp;CLP | (52789) |
|  Receive Fixed 6.98%<br>Pay Floating rate 6-Month-WIBOR | Semi-Annually | 1/19/28 | 7000000 | &nbsp;&nbsp;&nbsp;&nbsp;PLN | (72370) |
|  Receive Fixed 7.20%<br>Pay Floating rate CLP TNA | Semi-Annually | 1/19/28 | 439092641 | &nbsp;&nbsp;&nbsp;&nbsp;CLP | (35650) |
|  Receive Fixed 7.24%<br>Pay Floating rate CLP TNA | Semi-Annually | 1/19/28 | 1000000000 | &nbsp;&nbsp;&nbsp;&nbsp;CLP | (83132) |
|  Receive Fixed 7.26%<br>Pay Floating rate 6-Month-WIBOR | Semi-Annually | 1/19/28 | 11000000 | &nbsp;&nbsp;&nbsp;&nbsp;PLN | (141741) |
|  Receive Fixed 7.58%<br>Pay Floating rate 6-Month-WIBOR | Semi-Annually | 1/19/28 | 16020000 | &nbsp;&nbsp;&nbsp;&nbsp;PLN | (251884) |
|  Receive Floating 3-Month-KLIBOR<br>Pay Fixed rate 3.98% | Quarterly | 6/15/28 | 4700000 | &nbsp;&nbsp;&nbsp;&nbsp;MYR | (1136) |
|  Receive Floating 3-Month-KDR<br>Pay Fixed rate 3.81% | Quarterly | 9/28/28 | 1220000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | (9242) |
|  Receive Fixed 3.80%<br>Pay Floating 3-Month-KDR | Quarterly | 12/16/28 | 3046000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 22659 |
|  Receive Fixed 3.85%<br>Pay Floating 3-Month-KDR | Quarterly | 12/16/28 | 2537600000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 20659 |
|  Receive Floating 3-Month-KDR<br>Pay Fixed rate 2.91% | Quarterly | 12/16/28 | 5583600000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 23544 |
|  Receive Fixed 3.15%<br>Pay Floating rate Overnight SOFR | Annually | 6/16/29 | 3072000 |  | 5533 |
|  Receive Fixed 3.44%<br>Pay Floating rate Overnight SOFR | Annually | 9/15/29 | 3142000 |  | 19630 |
|  Receive Fixed 1.17%<br>Pay Floating 3-Month-KDR | Quarterly | 12/16/30 | 340500000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 8256 |
|  Receive Fixed 1.53%<br>Pay Floating 3-Month-KDR | Quarterly | 6/16/31 | 207200000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 5510 |
|  Receive Floating rate 1 Year-SOFR<br>Pay Fixed rate 1.52% | Annually | 3/08/32 | 4000000 |  | 586602 |

---

 <br> 86 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Interest Rate Swap Contracts** (continued)<br>**Description** |<br>**Payment<br>Frequency** |<br>**Maturity<br>Date** |<br>**Notional<br>Amount\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **Centrally Cleared Swap Contracts** (continued) | | | |  | |
|  Receive Fixed 0.77%<br>Pay Floating rate 6 Month-EURIBOR | Annually | 3/17/32 | 2308338 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | $(165936) |
|  Receive Fixed 0.98%<br>Pay Floating rate 6 Month-EURIBOR | Annually | 3/17/32 | 1042890 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | (74246) |
|  Receive Floating rate Overnight SOFR<br>Pay Fixed rate 3.17% | Annually | 6/20/32 | 2220000 |  | (760) |
|  Receive Fixed 2.60%<br>Pay Floating rate 6 Month-EURIBOR | Semi-Annually | 9/15/32 | 2236000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | (3933) |
|  Receive Fixed 2.68%<br>Pay Floating rate 6 Month-EURIBOR | Semi-Annually | 9/15/32 | 1210000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | 1953 |
|  Receive Fixed 2.71%<br>Pay Floating rate 6 Month-EURIBOR | Semi-Annually | 9/15/32 | 1190000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | 3362 |
|  Receive Fixed 2.88%<br>Pay Floating rate 6 Month-EURIBOR | Semi-Annually | 9/15/32 | 1276000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | 13041 |
|  Receive Fixed 2.93%<br>Pay Floating rate Overnight SOFR | Annually | 9/15/32 | 366000 |  | (2791) |
|  Receive Fixed 2.99%<br>Pay Floating rate Overnight SOFR | Annually | 9/15/32 | 1274000 |  | (6756) |
|  Receive Fixed 3.12%<br>Pay Floating rate Overnight SOFR | Annually | 9/15/32 | 2576000 |  | 36 |
|  Receive Fixed 3.15%<br>Pay Floating rate Overnight SOFR | Annually | 9/15/32 | 732000 |  | 891 |
|  Receive Floating rate Overnight SOFR<br>Pay Fixed rate 3.38% | Annually | 9/19/32 | 2284000 |  | (11226) |
|  Receive Fixed 8.47%<br>Pay Floating Banxico Mexico 1 Month Rate | Monthly | 10/12/32 | 37000000 | &nbsp;&nbsp;&nbsp;&nbsp;MXN | (16557) |
|  Receive Fixed 8.71%<br>Pay Floating Banxico Mexico 1 Month Rate | Monthly | 10/12/32 | 21700000 | &nbsp;&nbsp;&nbsp;&nbsp;MXN | 8220 |
|  Receive Fixed 8.72%<br>Pay Floating Banxico Mexico 1 Month Rate | Monthly | 10/12/32 | 21700000 | &nbsp;&nbsp;&nbsp;&nbsp;MXN | 9257 |
|  Receive Fixed 9.07%<br>Pay Floating JIBAR | Quarterly | 10/25/32 | 19017434 | &nbsp;&nbsp;&nbsp;&nbsp;ZAR | 10244 |
|  Receive Floating 3-Month-KDR<br>Pay Fixed rate 3.15% | Quarterly | 11/22/32 | 662000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 1168 |
|  Receive Fixed 2.75%<br>Pay Floating rate 6 Month-EURIBOR | Semi-Annually | 12/15/32 | 1232000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | 5116 |
|  Receive Fixed 4.50%<br>Pay Floating 6-Month-BBSW | Semi-Annually | 12/15/32 | 2000000 | &nbsp;&nbsp;&nbsp;&nbsp;AUD | 2946 |
|  Receive Floating rate Overnight SIBCSORA<br>Pay Fixed rate 2.72% | Semi-Annually | 12/15/32 | 700000 | &nbsp;&nbsp;&nbsp;&nbsp;SGD | 2434 |
|  Receive Floating rate Overnight SIBCSORA<br>Pay Fixed rate 2.84% | Semi-Annually | 12/15/32 | 700000 | &nbsp;&nbsp;&nbsp;&nbsp;SGD | (4) |
|  Receive Floating rate Overnight SOFR<br>Pay Fixed rate 3.13% | Annually | 12/15/32 | 1300000 |  | 151 |
|  Receive Fixed 4.13%<br>Pay Floating 6-Month-BBSW | Semi-Annually | 12/21/32 | 1806000 | &nbsp;&nbsp;&nbsp;&nbsp;AUD | (2733) |
|  Receive Floating MIBOR<br>Pay Fixed rate 6.51% | Semi-Annually | 12/21/32 | 46000000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | (4080) |
|  Receive Floating MIBOR<br>Pay Fixed rate 6.56% | Semi-Annually | 12/21/32 | 23000000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | (3028) |
|  Receive Floating MIBOR<br>Pay Fixed rate 6.62% | Semi-Annually | 12/21/32 | 46000000 | &nbsp;&nbsp;&nbsp;&nbsp;INR | (8799) |
|  Receive Floating rate Overnight SOFR<br>Pay Fixed rate 3.26% | Annually | 12/21/32 | 1192000 |  | 11042 |
|  Receive Fixed 5.32%<br>Pay Floating rate 6-Month-CZEONIA | Semi-Annually | 1/19/33 | 18343230 | &nbsp;&nbsp;&nbsp;&nbsp;CZK | (69013) |

---

 <br> franklintempleton.com Semiannual Report 87

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Interest Rate Swap Contracts** (continued)<br>**Description** |<br>**Payment<br>Frequency** |<br>**Maturity<br>Date** |<br>**Notional<br>Amount\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **Centrally Cleared Swap Contracts** (continued) | | | |  | |
|  Receive Fixed 5.33%<br>Pay Floating rate 6-Month-CZEONIA | Semi-Annually | 1/19/33 | 17961079 | &nbsp;&nbsp;&nbsp;&nbsp;CZK | $(68211) |
|  Receive Fixed 5.40%<br>Pay Floating rate 6-Month-CZEONIA | Semi-Annually | 1/19/33 | 15695691 | &nbsp;&nbsp;&nbsp;&nbsp;CZK | (63496) |
|  Receive Floating 3-Month-KDR<br>Pay Fixed rate 3.27% | Quarterly | 6/21/33 | 990000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | 3998 |
|  Receive Floating rate Overnight SOFR<br>Pay Fixed rate 3.35% | Annually | 12/20/33 | 800000 |  | (10526) |
|  Receive Floating rate Overnight SOFR<br>Pay Fixed rate 3.41% | Annually | 12/20/33 | 800000 |  | (13971) |
|  Receive Floating 3-Month-KDR<br>Pay Fixed rate 1.15% | Quarterly | 12/16/40 | 177000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | (7786) |
|  Receive Floating 3-Month-KDR<br>Pay Fixed rate 1.57% | Quarterly | 6/16/41 | 108000000 | &nbsp;&nbsp;&nbsp;&nbsp;KRW | (5389) |
|  Receive Floating rate 6 Month-EURIBOR<br>Pay Fixed rate 0.74% | Semi-Annually | 3/17/42 | 1098871 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | 127430 |
|  Receive Floating rate 6 Month-EURIBOR<br>Pay Fixed rate 0.94% | Semi-Annually | 3/17/42 | 558230 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | 56624 |
|  Receive Fixed 2.88%<br>Pay Floating rate 6 Month-EURIBOR | Semi-Annually | 9/15/42 | 860000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | 29486 |
|  Receive Floating rate 6 Month-EURIBOR<br>Pay Fixed rate 2.21% | Semi-Annually | 9/15/42 | 764000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | 3272 |
|  Receive Floating rate 6 Month-EURIBOR<br>Pay Fixed rate 2.23% | Semi-Annually | 9/15/42 | 274000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | 788 |
|  Receive Floating rate 6 Month-EURIBOR<br>Pay Fixed rate 2.43% | Semi-Annually | 9/15/42 | 720000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | (8441) |
|  Receive Floating rate Overnight SOFR<br>Pay Fixed rate 2.97% | Annually | 9/15/42 | 190000 |  | 3401 |
|  Receive Floating rate Overnight SOFR<br>Pay Fixed rate 2.99% | Annually | 9/15/42 | 799372 |  | 13454 |
|  Receive Floating rate Overnight SOFR<br>Pay Fixed rate 3.08% | Annually | 9/15/42 | 1628000 |  | 18431 |
|  Receive Floating rate Overnight SOFR<br>Pay Fixed rate 3.11% | Annually | 9/15/42 | 436000 |  | 4202 |
|  Receive Floating rate 6 Month-EURIBOR<br>Pay Fixed rate 2.24% | Semi-Annually | 9/17/42 | 2124000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | 3615 |
|  Receive Floating rate 6 Month-EURIBOR<br>Pay Fixed rate 2.26% | Semi-Annually | 9/17/42 | 722000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | 290 |
|  Receive Floating rate 6 Month-EURIBOR<br>Pay Fixed rate 2.22% | Semi-Annually | 12/15/42 | 730000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | 415 |
|  Receive Floating rate 6 Month-EURIBOR<br>Pay Fixed rate 0.44% | Semi-Annually | 10/27/51 | 430000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | (7560) |
|  Receive Floating rate 6 Month-EURIBOR<br>Pay Fixed rate 1.27% | Semi-Annually | 9/16/52 | 542000 | &nbsp;&nbsp;&nbsp;&nbsp;EUR | 3821 |
|  Receive Floating rate Overnight SOFR<br>Pay Fixed rate 3.45% | Annually | 12/21/52 | 670000 |  | (46232) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Interest Rate Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Interest Rate Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Interest Rate Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Interest Rate Swap Contracts |  | $9513 |

---

\*In U.S. dollars unless otherwise indicated.

 <br> 88 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

At November 30, 2022, the Fund had the following total return swap contracts outstanding. See Note 1(e).

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** | **Total Return Swap Contracts** | **Total Return Swap Contracts** | **Total Return Swap Contracts** | **Total Return Swap Contracts** | **Total Return Swap Contracts** | **Total Return Swap Contracts** | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** |  | | | | | | |
| **Equity Contracts – Long<sup>a</sup>** |  | | | | | | |
|  3i Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 227190 | GBP | $42181 |
|  7C Solarparken AG | Euro STR + 0.35% | Monthly | JPHQ | 11/06/23 | 57836 | EUR | (327) |
|  A.P. Moller – Maersk | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1055357 | DKK | (10274) |
|  A1 Telekom Austria AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 204114 | EUR | (1542) |
|  AB Fastator | 1-Week STIBOR + 0.28% | Monthly | SEBA | 8/04/23 | 331256 | SEK | (6154) |
|  AcadeMedia AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1020961 | SEK | 2851 |
|  AddLife AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 8/02/23 | 2215095 | SEK | (37208) |
|  ADvTECH Ltd. | 1-Day SABOR + 0.30% | Monthly | MSCS | 7/17/23 | 910076 | ZAR | 7871 |
|  Aegon NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 146694 | EUR | (3722) |
|  AFC Energy | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 14131 | GBP | 517 |
|  Afentra PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/30/23 | 3105 | GBP | 8 |
|  Africa Energy | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 168724 | SEK | (546) |
|  African Rainbow Minerals Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 8/30/23 | 1358889 | ZAR | 14087 |
|  AIB Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 24738 | GBP | 10877 |
|  Air France-KLM | 1-Day EONIA + 0.30% | Monthly | MSCS | 10/02/23 | 214308 | EUR | (2163) |
|  Airtel Africa PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 242197 | GBP | (56768) |
|  Aker Solutions ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 996179 | NOK | (5314) |
|  Albaraka Turk Katilim Bankasi AS | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/27/23 | 16792 |  | (611) |
|  Alfen NV | Euro STR + 0.35% | Monthly | JPHQ | 11/15/23 | 134738 | EUR | (268) |
|  Alliance Pharma PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 11752 | GBP | 914 |
|  Ambea AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1673483 | SEK | 1536 |
|  Amundi SA | 1-Month EURIBOR + 0.40% | Monthly | MSCS | 11/14/23 | 380385 | EUR | (335) |
|  Amundi SA | 1-Day EONIA + 0.40% | Monthly | GSCO | 3/14/25 | 266038 | EUR | 32739 |
|  Anadolu Grubu | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/27/23 | 109108 |  | 7663 |
|  Andritz AG | Euro STR + 0.35% | Monthly | JPHQ | 7/14/23 | 250769 | EUR | (3107) |
|  Anima Holding SpA | 1-Month EURIBOR + 0.40% | Monthly | JPHQ | 7/17/23 | 97944 | EUR | 5637 |
|  Anima Holding SpA | 1-Month EURIBOR + 0.40% | Monthly | MSCS | 11/14/23 | 869081 | EUR | 15972 |
|  AO World PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/30/23 | 4401 | GBP | (41) |
|  Aperam SA | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 16236 | EUR | 375 |
|  Aquafil | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 7503 | EUR | (325) |
|  Arcadis | Euro STR + 0.35% | Monthly | JPHQ | 9/22/23 | 154856 | EUR | 13838 |
|  ArcelorMittal SA | 1-Day SABOR + 0.70% | Monthly | MSCS | 11/27/23 | 166586 | ZAR | (81) |
|  Arctic | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/27/23 | 15791 |  | 492 |
|  Arctic Paper SA | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 83521 | SEK | 396 |
|  Argo Blockchain PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 1797 | GBP | (465) |
|  Arise AB | 1-Day SABOR + 0.70% | Monthly | SEBA | 8/03/23 | 706045 | SEK | (9520) |
|  Ariston Holding NV | Euro STR + 0.35% | Monthly | JPHQ | 11/29/23 | 31099 | EUR | 1389 |
|  Arjo AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1379026 | SEK | (31797) |
|  ASBIS Kypros Ltd. | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/12/23 | 68961 |  | 54773 |
|  Ascencio | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 55212 | EUR | 417 |
|  ASML Holding NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 113722 | EUR | 14136 |
|  ASR Nederland NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 84555 | EUR | (1456) |
|  Asseco Poland SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/23 | 268038 |  | 12796 |
|  Aston Martin Lagonda | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 14064 | GBP | 365 |
|  Astral Foods Ltd. | 1-Day SABOR + 0.30% | Monthly | MSCS | 7/17/23 | 4416466 | ZAR | (24941) |
|  AT&S Austria Technologie & Systemtechnik AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 127998 | EUR | 1942 |
|  Atlantic Sapphire ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 61341 | NOK | 176 |
|  Atoss Software AG | Euro STR + 0.35% | Monthly | JPHQ | 8/01/23 | 112014 | EUR | 12988 |
|  Atresmedia Corporacion de Medios de Comunicacion SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/23 | 67185 | EUR | 1832 |
|  Audioboom Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 11532 | GBP | (161) |
|  Aurelius Equity Opportunities AB | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 109363 | EUR | (15742) |

---

 <br> franklintempleton.com Semiannual Report 89

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Long<sup>a</sup>** (continued) |  | | | | | | |
|  Aurubis AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 182575 | EUR | $15135 |
|  Austevoll Seafood ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/12/23 | 783133 | NOK | 4127 |
|  Auto Trader Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 41710 | GBP | (821) |
|  Autogrill SpA | 1-Day EONIA + 0.65% | Monthly | MSCO | 8/18/23 | 66558 | EUR | (3333) |
|  Autoneum | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/23 | 15875 | CHF | 18 |
|  AVI Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 10/03/23 | 1551831 | ZAR | (277) |
|  Axa SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 108207 | EUR | 32397 |
|  Axfood AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1823989 | SEK | (6906) |
|  Azelio AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 110856 | SEK | (62) |
|  Azimut Holding SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 47343 | EUR | 4768 |
|  B2Holding ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1215729 | NOK | (3418) |
|  Balfour Beatty | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/18/23 | 190889 | GBP | 5721 |
|  Banca de Sabadell SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 10/10/23 | 94629 | EUR | 14639 |
|  Banca Ifis SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 260350 | EUR | 835 |
|  Banca Popolare di Sondrio SpA | Euro STR + 0.35% | Monthly | JPHQ | 8/22/23 | 88037 | EUR | 7262 |
|  Banco Bilbao Vizcaya Argentaria SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 9/29/23 | 77364 | EUR | 14338 |
|  Banco BPM SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/26/23 | 138234 | EUR | 9564 |
|  Bank Handlowy w Warszawie SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/14/23 | 82999 |  | 31705 |
|  Bank of Georgia Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/31/23 | 152514 | GBP | 102305 |
|  Barclays PLC | 1-Day SONIA + 0.44% | Monthly | MSCS | 7/17/23 | 107037 | GBP | 10027 |
|  Barclays PLC | 1-Day SONIA + 0.44% | Monthly | MSCS | 11/14/23 | 101094 | GBP | 3099 |
|  Barco | Euro STR + 0.35% | Monthly | JPHQ | 10/09/23 | 78597 | EUR | 3740 |
|  Bavarian Nordic A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 499192 | DKK | 482 |
|  Bayer AG | Euro STR + 0.35% | Monthly | JPHQ | 9/04/23 | 195012 | EUR | 14339 |
|  BE Group AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1174167 | SEK | (29254) |
|  Bell Food Group AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/23 | 170172 | CHF | 6578 |
|  Beneteau | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 160269 | EUR | 8460 |
|  Bergen Carbon Solutions | 1-Week NIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 153752 | NOK | (674) |
|  Betsson AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1355588 | SEK | 53119 |
|  BHG Group AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 176477 | SEK | (317) |
|  Bico Group | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 175676 | SEK | 450 |
|  Bidvest Group Ltd. | 1-Day SABOR + 0.35% | Monthly | MSCS | 7/17/23 | 1004700 | ZAR | 3163 |
|  Bigben Interactive | 1-Day EONIA + 0.30% | Monthly | MSCS | 11/27/23 | 12267 | EUR | (721) |
|  Bilia AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1575714 | SEK | (34707) |
|  BioGaia AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1458952 | SEK | (29696) |
|  Biosynex | 1-Day EONIA + 0.30% | Monthly | MSCS | 11/27/23 | 10993 | EUR | 1601 |
|  Biotage AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 2525184 | SEK | (21620) |
|  Bloomsbury Publishing PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 63493 | GBP | 15847 |
|  BNP Paribas SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 173667 | EUR | 50481 |
|  BNP Paribas SA | 1-Month LIBOR + 0.40% | Monthly | GSCO | 3/14/25 | 641191 | EUR | 217490 |
|  Bogdanka SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 8/18/23 | 124577 |  | 13902 |
|  Bonava | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 175883 | SEK | (183) |
|  Bonheur ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 8/28/23 | 559388 | NOK | (12899) |
|  Borr Drilling Ltd. | 1-Week NIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 104110 | NOK | (121) |
|  BPER Banca SpA | Euro STR + 0.35% | Monthly | JPHQ | 9/25/23 | 141171 | EUR | 5575 |
|  Bravida Holding AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/01/23 | 1749057 | SEK | (464) |
|  Brederode | Euro STR + 0.35% | Monthly | JPHQ | 11/21/23 | 49567 | EUR | (85) |
|  Breedon Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 172467 | GBP | (18731) |
|  Brunel International NV | 1-Week STIBOR + 0.28% | Monthly | JPHQ | 7/17/23 | 113285 | EUR | 1045 |
|  Budimex SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/20/23 | 34694 |  | 2666 |
|  Bumech SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/27/23 | 16899 |  | 649 |
|  Burberry Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 11014 | GBP | 4109 |
|  Burckhardt | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 126243 | CHF | 1022 |

---

 <br> 90 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Long<sup>a</sup>** (continued) | **Equity Contracts – Long<sup>a</sup>** (continued) | | | | | | |
|  Bureau Veritas SA | 1-Month EURIBOR + 0.40% | Monthly | MSCS | 11/14/23 | 85071 | EUR | $(5676) |
|  Bureau Veritas SA | 1-Month EURIBOR + 0.40% | Monthly | GSCO | 3/14/25 | 495996 | EUR | 63396 |
|  BW Offshore Ltd. | 1-Week NIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 167490 | NOK | 213 |
|  Bytes Technology Group | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/07/23 | 161880 | GBP | (1306) |
|  C&C Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/24/23 | 86950 | GBP | (2142) |
|  Cairn Homes PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 53903 | GBP | (8739) |
|  Cairo Communication SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 91371 | EUR | (5597) |
|  Cantargia AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 137696 | SEK | (497) |
|  Capital & Counties Properties PLC | 1-Day SABOR + 0.70% | Monthly | MSCS | 11/27/23 | 282579 | ZAR | (753) |
|  CapMan OYJ | Euro STR + 0.28% | Monthly | SEBA | 7/17/23 | 55063 | EUR | (3707) |
|  Card Factory PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 52897 | GBP | 30124 |
|  Cargotec OYJ | Euro STR + 0.28% | Monthly | SEBA | 8/23/23 | 72226 | EUR | 11865 |
|  Carlsberg Group | 1-Week CIBOR + 0.28% | Monthly | SEBA | 9/12/23 | 1856013 | DKK | (13429) |
|  Catena AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/17/23 | 732167 | SEK | (5733) |
|  Catena Media PLC | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1292821 | SEK | (26064) |
|  Cbrain A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 558020 | DKK | (6146) |
|  Cellectis | 1-Day EONIA + 0.30% | Monthly | MSCS | 11/27/23 | 15423 | EUR | (523) |
|  Cementir Holding NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 126822 | EUR | 6967 |
|  Cemig | 1-Day FEDEF + 1.00% | Monthly | MSCO | 9/26/23 | 324935 |  | 43937 |
|  Central Asia Metals PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/25/23 | 54937 | GBP | 7585 |
|  CentralNic Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 113046 | GBP | 2528 |
|  Centrica PLC ORD | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 258737 | GBP | 36139 |
|  Cerillion | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/29/23 | 9100 | GBP | 62 |
|  Chemometec | 1-Week CIBOR + 0.28% | Monthly | SEBA | 11/15/23 | 749708 | DKK | 659 |
|  Chemring Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 8/22/23 | 61860 | GBP | 2500 |
|  Cherry AG | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 11155 | EUR | 181 |
|  Chrysalis Investments | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 11830 | GBP | 309 |
|  Chrysalis Investments | 1-Day SONIA + 0.35% | Monthly | MSCS | 12/01/23 | 2382 | GBP | 12 |
|  Ciech SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/23 | 55148 |  | 14483 |
|  Citycon OYJ | Euro STR + 0.28% | Monthly | SEBA | 8/23/23 | 155363 | EUR | (12707) |
|  Clas Ohlson AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 3138898 | SEK | (82328) |
|  CLIQ Digital AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 119037 | EUR | 14647 |
|  Cloetta AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 3479783 | SEK | 5596 |
|  Coca-Cola Europacific Partners PLC | 1-Day SONIA + 0.30% | Monthly | JPHQ | 10/11/23 | 166101 | EUR | 6560 |
|  COFACE | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/14/23 | 216201 | EUR | 49460 |
|  Coltene Holding AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/23 | 35696 | CHF | (797) |
|  Compagnie des Alpes | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 117351 | EUR | (8775) |
|  Compleo | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 14474 | EUR | (1193) |
|  Computacenter PLC ORD | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/13/23 | 253144 | GBP | (43917) |
|  Construcciones y Auxiliar de Ferrocarriles | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/23 | 139920 | EUR | 2599 |
|  ContourGlobal PLC | 1-Day SONIA + 0.40% | Monthly | BZWS | 6/02/23 | 524210 | GBP | (58) |
|  Coor Service Management Holding AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 2910991 | SEK | (72224) |
|  Corem Property Group | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 176314 | SEK | (100) |
|  Crest Nicholson Holdings PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 89165 | GBP | (3394) |
|  CRH PLC ORD | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 105448 | GBP | 17596 |
|  Croda International PLC | 1-Day SONIA + 0.44% | Monthly | MSCS | 11/14/23 | 401917 | GBP | (21376) |
|  CropEnergies AG | Euro STR + 0.35% | Monthly | JPHQ | 10/18/23 | 91453 | EUR | (4660) |
|  CS Group | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/23 | 15080 | CHF | (2013) |
|  Curro Holdings Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 11/27/23 | 175177 | ZAR | 196 |
|  Currys PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 13732 | GBP | (892) |
|  CVS Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 10/30/23 | 30834 | GBP | 2615 |

---

 <br> franklintempleton.com Semiannual Report 91

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Long<sup>a</sup>** (continued) | **Equity Contracts – Long<sup>a</sup>** (continued) | | | | | | |
|  Dampskibsselskabet Norden A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 864691 | DKK | $25725 |
|  Danieli & C Officine Meccaniche SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 215115 | EUR | 1482 |
|  Danone SA | 1-Month EURIBOR + 0.40% | Monthly | MSCS | 11/14/23 | 155078 | EUR | 1655 |
|  Danone SA | 1-Month LIBOR + 0.40% | Monthly | GSCO | 3/14/25 | 1149365 | EUR | (156377) |
|  Datatec Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 11/27/23 | 213468 | ZAR | (514) |
|  DBV Technologies | 1-Day EONIA + 0.30% | Monthly | MSCS | 11/27/23 | 14774 | EUR | (273) |
|  DCC PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 244601 | GBP | (32372) |
|  DCP Midstream Partners LP | 1-Day FEDEF + 1.00% | Monthly | MSCO | 9/21/23 | 850733 |  | 15810 |
|  Derichebourg SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 213391 | EUR | (13684) |
|  Deutsche Bank AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 201810 | EUR | 4557 |
|  Deutsche Lufthansa AG | Euro STR + 0.35% | Monthly | JPHQ | 9/06/23 | 177020 | EUR | 11191 |
|  Deutsche Telekom AG | Euro STR + 0.35% | Monthly | JPHQ | 8/01/23 | 58603 | EUR | (859) |
|  Deutz AG | Euro STR + 0.35% | Monthly | JPHQ | 7/13/23 | 33461 | EUR | 928 |
|  DKSH Switzerland Ltd. | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/23 | 177749 | CHF | (6307) |
|  DNO ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/14/23 | 2600625 | NOK | (175) |
|  Drax Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 206524 | GBP | (34309) |
|  Dufry AG | Euro STR + 0.35% | Monthly | JPHQ | 8/16/23 | 124815 | CHF | 5033 |
|  Dustin Group AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 10/18/23 | 1068539 | SEK | 524 |
|  Eco Atlantic | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 9894 | GBP | (284) |
|  Econocom Group SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 49735 | EUR | 1585 |
|  Edenred | 1-Day EONIA + 0.30% | Monthly | MSCS | 10/02/23 | 144611 | EUR | 14693 |
|  EDF | 1-Day EONIA + 0.65% | Monthly | MSCO | 9/22/23 | 356322 | EUR | 1939 |
|  EFG International AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/23 | 163162 | CHF | (3887) |
|  Eiffage SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 133182 | EUR | 12273 |
|  El.En. SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/13/23 | 195296 | EUR | 23370 |
|  Elecnor SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/23 | 37411 | EUR | (1863) |
|  Elementis PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/29/23 | 100869 | GBP | 28155 |
|  Eletrobras | 1-Day FEDEF + 1.00% | Monthly | MSCO | 1/16/24 | 3221187 |  | 399059 |
|  Elia Group SA | Euro STR + 0.35% | Monthly | JPHQ | 7/28/23 | 101270 | EUR | 4808 |
|  Elis SA | 1-Month EURIBOR + 0.40% | Monthly | GSCO | 3/14/25 | 338534 | EUR | (10305) |
|  Elkem ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/13/23 | 3126761 | NOK | 52897 |
|  Elmos Semiconductor SE | Euro STR + 0.35% | Monthly | JPHQ | 7/18/23 | 86233 | EUR | 20671 |
|  ElringKlinger AG | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 16166 | EUR | (24) |
|  Enad Global 7 AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 129182 | SEK | 383 |
|  Encavis AG | Euro STR + 0.35% | Monthly | JPHQ | 11/15/23 | 69784 | EUR | 1743 |
|  Enea AB | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/23 | 296656 |  | (99097) |
|  Energy Transfer LP | 1-Month LIBOR + 0.90% | Monthly | GSCO | 1/26/23 | 39745 |  | 2629 |
|  Energy Transfer LP | 1-Month LIBOR + 0.90% | Monthly | BZWS | 2/14/23 | 158846 |  | 10428 |
|  Energy Transfer LP | 1-Month LIBOR + 0.50% | Monthly | CITI | 10/18/23 | 90194 |  | 5313 |
|  Engie SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 8/30/23 | 168520 | EUR | 35114 |
|  ENI SpA | Euro STR + 0.35% | Monthly | JPHQ | 8/22/23 | 29821 | EUR | 225 |
|  EnQuest PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 13916 | GBP | 178 |
|  EnQuest PLC | 1-Day SONIA + 0.35% | Monthly | SEBA | 11/27/23 | 176812 | SEK | 72 |
|  Entain PLC | 1-Day SONIA + 0.65% | Monthly | MSCO | 2/08/23 | 578087 | GBP | (101423) |
|  Equatorial Energia SA | 1-Day FEDEF + 1.00% | Monthly | MSCO | 9/26/23 | 571540 |  | 24803 |
|  Equinor ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1507805 | NOK | 15363 |
|  Eramet | 1-Day EONIA + 0.30% | Monthly | MSCS | 11/27/23 | 16205 | EUR | 687 |
|  Ercros SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/23 | 196416 | EUR | (11556) |
|  Ergomed PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 57743 | GBP | 23746 |
|  Ericsson | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 2078727 | SEK | (19201) |
|  ESG Core Investments BV | 1-Day EONIA + 0.65% | Monthly | MSCO | 9/06/23 | 41835 | EUR | (2284) |
|  Eurobio Scientific SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 57171 | EUR | (6226) |
|  Eurocommercial Properties NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 280540 | EUR | 1651 |
|  Europris ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1632237 | NOK | 16797 |

---

 <br> 92 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Long<sup>a</sup>** (continued) | **Equity Contracts – Long<sup>a</sup>** (continued) | | | | | | |
|  Eutelsat SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 11/27/23 | 15943 | EUR | $(668) |
|  EVS Broadcast Equipment SA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 36914 | EUR | (1086) |
|  Exxaro Resources Ltd. | 1-Day SABOR + 0.36% | Monthly | MSCS | 7/17/23 | 1960755 | ZAR | 18201 |
|  Faes Farma SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 8/22/23 | 96282 | EUR | (6612) |
|  FD Technologies PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 125484 | GBP | (39115) |
|  Ferrexpo PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 13888 | GBP | (160) |
|  Fingerprint Cards | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 177649 | SEK | (787) |
|  FirstGroup PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 8/24/23 | 180739 | GBP | (22264) |
|  Flex LNG Ltd. | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 548765 | NOK | 9895 |
|  FLSmidth & Co. A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 10/19/23 | 1116152 | DKK | 20042 |
|  ForFarmers | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 29435 | EUR | 1969 |
|  Fortress REIT Ltd. | 1-Day SABOR + 0.50% | Monthly | MSCS | 11/27/23 | 285543 | ZAR | (228) |
|  Foxtons Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/18/23 | 40981 | GBP | (933) |
|  Frasers Group PLC | 1-Day SONIA + 0.44% | Monthly | MSCS | 7/17/23 | 175175 | GBP | 70200 |
|  Frasers Group PLC | 1-Day SONIA + 0.44% | Monthly | MSCS | 11/14/23 | 161264 | GBP | 29744 |
|  Galenica AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/23 | 198519 | CHF | 7835 |
|  Galliford Try Holdings PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 45210 | GBP | (2647) |
|  Gas Plus SpA | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 11550 | EUR | (98) |
|  <sup>b,c</sup>Gazprom PJSC ADR | 1-Day FEDEF | Monthly | MSCS | 1/31/24 |  |  |  |
|  GB Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 13571 | GBP | (1425) |
|  Genfit | 1-Day EONIA + 0.30% | Monthly | MSCS | 11/01/23 | 31876 | EUR | (4070) |
|  Genmab A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1113903 | DKK | 41188 |
|  Gestamp Automocion SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/23 | 228317 | EUR | 26014 |
|  Getinge AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1619029 | SEK | 9168 |
|  GFT Technologies SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 83814 | EUR | 2326 |
|  GK Software SE | Euro STR + 0.35% | Monthly | JPHQ | 8/07/23 | 50592 | EUR | 8462 |
|  Glanbia PLC | 1-Day EONIA + 0.35% | Monthly | MSCS | 10/27/23 | 2917 | EUR | 60 |
|  Global Dominion Access SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/18/23 | 64476 | EUR | (9147) |
|  Global Fashion Group | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 16129 | EUR | (630) |
|  Grand City Properties SA | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 15984 | EUR | (731) |
|  Greencore Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/12/23 | 136123 | GBP | (24356) |
|  Greggs PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 55825 | GBP | 15922 |
|  Grieg Seafood ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 2088606 | NOK | (88424) |
|  Grindrod Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 11/27/23 | 287367 | ZAR | (138) |
|  Groupe Casino | 1-Day EONIA + 0.30% | Monthly | MSCS | 11/27/23 | 16151 | EUR | (638) |
|  Groupe LDLC | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 122889 | EUR | (34135) |
|  Groupe Renault | 1-Day EONIA + 0.30% | Monthly | MSCS | 10/03/23 | 150634 | EUR | 25640 |
|  Grupa Azoty SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/23 | 109352 |  | 5623 |
|  Grupo Catalana Occidente | 1-Day EONIA + 0.35% | Monthly | MSCS | 11/10/23 | 14146 | EUR | 996 |
|  GSK PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 172615 | GBP | 13748 |
|  Guerbet | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 51150 | EUR | (11496) |
| H. Lundbeck A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 625337 | DKK | (2755) |
|  H+H International A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 671480 | DKK | (18702) |
|  Halkbank | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/27/23 | 16936 |  | (212) |
|  Hammerson PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 278741 | ZAR | (281) |
|  Hammerson PLC | 1-Day SABOR + 0.70% | Monthly | MSCS | 11/27/23 | 13826 | GBP | (450) |
|  Hanwha Solutions | 1-Day FEDEF + 0.30% | Monthly | MSCO | 7/31/23 | 715440 |  | 21090 |
|  Harbour Energy | 1-Day SONIA + 0.35% | Monthly | MSCS | 10/27/23 | 89113 | GBP | (13135) |
|  Hargreaves Lansdown PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 10/30/23 | 65022 | GBP | 5647 |
|  HeidelbergCement AG | 1-Month EURIBOR + 0.40% | Monthly | JPHQ | 7/17/23 | 124860 | EUR | 7981 |
|  HeidelbergCement AG | 1-Month EURIBOR + 0.40% | Monthly | MSCS | 11/14/23 | 659563 | EUR | 18363 |
|  Heijmans NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 244456 | EUR | 5212 |
|  Heineken Holding NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 63609 | EUR | 3651 |
|  Hemnet Group AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 8/02/23 | 1512886 | SEK | (18903) |
|  Hensoldt AG | Euro STR + 0.35% | Monthly | JPHQ | 8/23/23 | 189638 | EUR | 2617 |

---

 <br> franklintempleton.com Semiannual Report 93

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Long<sup>a</sup>** (continued) | **Equity Contracts – Long<sup>a</sup>** (continued) | | | | | | |
|  Hermes International | 1-Month EURIBOR + 0.40% | Monthly | MSCS | 11/14/23 | 279630 | EUR | $21770 |
|  HEXPOL AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 8/03/23 | 821216 | SEK | 4259 |
|  Hikma Pharmaceuticals PLC | 1-Day SONIA + 0.44% | Monthly | MSCS | 11/14/23 | 14773 | GBP | 2367 |
|  Hilton Food Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 10/18/23 | 45095 | GBP | (7205) |
|  Hochschild Mining PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 14050 | GBP | 261 |
|  Hoist Finance AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 137777 | SEK | (385) |
|  Hollywood Bowl Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 60677 | GBP | 5441 |
|  home24 | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 16174 | EUR | 13 |
|  HORNBACH Holding AG & Co. KGaA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 100711 | EUR | 4030 |
|  Hotel Chocolat Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 6975 | GBP | (440) |
|  Huber + Suhner AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 181764 | CHF | (4355) |
|  Hugo Boss AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 210640 | EUR | 27431 |
|  Humana AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 541701 | SEK | (6064) |
|  Humble Group AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 82404 | SEK | 69 |
|  Hunting PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 13840 | GBP | 112 |
|  Hurricane Energy PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 41573 | GBP | 2549 |
|  IG Design Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 5183 | GBP | 700 |
|  IGas Energy PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 2982 | GBP | (12) |
|  Illimity Bank | Euro STR + 0.35% | Monthly | JPHQ | 11/13/23 | 92979 | EUR | 568 |
|  Immobiliare Grande Distribuzione SIIQ SpA | 1-Day EONIA + 0.30% | Monthly | JPHQ | 7/17/23 | 111956 | EUR | 1091 |
|  Immofinanz | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 15957 | EUR | (212) |
|  Inchcape PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/28/23 | 161897 | GBP | 34795 |
|  Indivior PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 164464 | GBP | 21502 |
|  Indra Sistemas SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/23 | 160341 | EUR | 10334 |
|  Industria de Diseno Textil Inditex SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 8/22/23 | 53864 | EUR | 3057 |
|  Inmobiliaria Colonial | 1-Day EONIA + 0.35% | Monthly | MSCS | 11/27/23 | 16159 | EUR | (213) |
|  Innovatec SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 211404 | EUR | (11766) |
|  International Petroleum Corp. | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 635863 | SEK | 16067 |
|  Intervest Offices & Warehouses NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 101838 | EUR | (5910) |
|  Intrum AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1342989 | SEK | (33730) |
|  Investec Property Fund | 1-Day SABOR + 0.70% | Monthly | MSCS | 11/27/23 | 287619 | ZAR | (10) |
|  Inwido AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1998480 | SEK | (15132) |
|  IOG PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 11108 | GBP | 1691 |
|  Ion Beam Applications SA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 55330 | EUR | 1030 |
|  IP Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 13879 | GBP | (330) |
|  Ipsos Group SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 81769 | EUR | 17933 |
|  Iren | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 98168 | EUR | 5965 |
|  ISS A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 376719 | DKK | 1163 |
|  ITM Power PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 14175 | GBP | 671 |
|  ITV PLC | 1-Day SONIA + 0.44% | Monthly | MSCS | 11/14/23 | 482897 | GBP | 20028 |
|  Iveco | Euro STR + 0.35% | Monthly | JPHQ | 11/28/23 | 101951 | EUR | 1891 |
|  IVU Traffic Technologies AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 28746 | EUR | 5436 |
|  Jacquet Metals SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 38582 | EUR | 1820 |
|  JD Sports Fashion PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 151487 | GBP | 686 |
|  Jet2 PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/18/23 | 130496 | GBP | 24000 |
|  Julius Baer | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 235805 | CHF | 14750 |
|  Just Eat Takeaway.com NV | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 14068 | GBP | 229 |
|  Just Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 14175 | GBP | 245 |
|  Jyske Bank A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 120051 | DKK | (122) |
|  Kap Industrial Holdings Ltd. | 1-Day SABOR + 0.30% | Monthly | MSCS | 7/17/23 | 2932652 | ZAR | 14146 |
|  Keller Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 103443 | GBP | (5680) |

---

 <br> 94 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Long<sup>a</sup>** (continued) | **Equity Contracts – Long<sup>a</sup>** (continued) | | | | | | |
|  Kenmare Resources PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 49230 | GBP | $765 |
|  Kering SA | 1-Month EURIBOR + 0.40% | Monthly | MSCS | 11/14/23 | 105336 | EUR | 7200 |
|  Kering SA | 1-Month EURIBOR + 0.40% | Monthly | GSCO | 3/14/25 | 871783 | EUR | 16810 |
|  Kernel Holding SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/23 | 88325 |  | (18107) |
|  Kesko Corp. | Euro STR + 0.28% | Monthly | SEBA | 7/14/23 | 218329 | EUR | (23879) |
|  K-Fast Holding AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 176213 | SEK | 321 |
|  Kid ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 595029 | NOK | (13132) |
|  Kion Group AG | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 16192 | EUR | (208) |
|  Klepierre SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 8/08/23 | 146919 | EUR | 1365 |
|  Koc Holding | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/23 | 183124 |  | 130090 |
|  Koenig & Bauer AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 52246 | EUR | 4490 |
|  Konecranes OYJ | Euro STR + 0.28% | Monthly | SEBA | 11/22/23 | 33817 | EUR | 156 |
|  Kongsberg Gruppen ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 635598 | NOK | 15989 |
|  Koninklijke Ahold Delhaize NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 172116 | EUR | (5669) |
|  Koninklijke BAM Groep NV | Euro STR + 0.35% | Monthly | JPHQ | 8/14/23 | 119613 | EUR | 11128 |
|  Koninklijke KPN NV | Euro STR + 0.35% | Monthly | JPHQ | 10/11/23 | 148931 | EUR | 7492 |
|  Krones AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 288102 | EUR | 17448 |
|  Kuehne + Nagel AG | Euro STR + 0.35% | Monthly | JPHQ | 8/11/23 | 156504 | CHF | 6818 |
|  Laboratorios Farmaceuticos Rovi SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/14/23 | 211085 | EUR | (62141) |
|  Lar Espana Real Estate SOCIMI SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/23 | 71755 | EUR | (2210) |
|  Lastminute.com Group | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/23 | 11095 | CHF | (40) |
|  Leonardo SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 204265 | EUR | 12464 |
|  Leonteq AG | Euro STR + 0.35% | Monthly | JPHQ | 7/14/23 | 190417 | CHF | (4245) |
|  LG Chem Ltd. | 1-Day FEDEF + 0.30% | Monthly | MSCO | 8/10/23 | 1797557 |  | 66869 |
|  LG Energy Solution Ltd. | 1-Day FEDEF + 0.30% | Monthly | MSCO | 8/03/23 | 1987659 |  | (45180) |
|  Linde PLC | Euro STR + 0.35% | Monthly | JPHQ | 10/20/23 | 36001 | EUR | 486 |
|  Link Mobility Group Holding ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 167155 | NOK | (694) |
|  Logista | 1-Day EONIA + 0.35% | Monthly | MSCS | 9/14/23 | 108553 | EUR | 15579 |
|  Logo Yazilim AS | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/27/23 | 88851 |  | 903 |
|  Lookers PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 46033 | GBP | 2988 |
|  Loomis AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/14/23 | 3256314 | SEK | 64972 |
|  Luceco PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 9857 | GBP | (595) |
|  LVMH Moet Hennessy Louis Vuitton SE | 1-Day EONIA + 0.40% | Monthly | GSCO | 3/14/25 | 173666 | EUR | 125399 |
|  M.P. Evans Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 36476 | GBP | 3840 |
|  Mabion | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/23 | 4902 |  | (94) |
|  Maire Tecnimont SpA | Euro STR + 0.35% | Monthly | JPHQ | 8/14/23 | 173833 | EUR | (8395) |
|  Maisons du Monde France SAS | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 110448 | EUR | 36188 |
|  Man Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/14/23 | 248059 | GBP | (47449) |
|  Marimekko Corp. | Euro STR + 0.28% | Monthly | SEBA | 7/17/23 | 136434 | EUR | (34403) |
|  Marks & Spencer Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 193943 | GBP | (16164) |
|  Marston's PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 13860 | GBP | (794) |
|  MAS PLC | 1-Day SABOR + 0.30% | Monthly | MSCS | 7/17/23 | 3602393 | ZAR | 4256 |
|  Mavi Giyim Sanayi Ve Ticaret AS | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/23 | 76553 |  | 45933 |
|  ME Group International PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/28/23 | 2071 | GBP | (4) |
|  Media and Games Invest SE | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1203311 | SEK | (25730) |
|  Mediaset Espana Comunicacion SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/23 | 81464 | EUR | (6199) |
|  Melexis NV | Euro STR + 0.35% | Monthly | JPHQ | 8/18/23 | 148629 | EUR | 11539 |
|  Mensch und Maschine Software SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 118755 | EUR | 6352 |
|  Mercator Ltd. | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/27/23 | 16882 |  | (346) |
|  Mercedes-Benz Group AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 175340 | EUR | 10724 |

---

 <br> franklintempleton.com Semiannual Report 95

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Long<sup>a</sup>** (continued) | **Equity Contracts – Long<sup>a</sup>** (continued) | | | | | | |
|  Mercialys SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 117749 | EUR | $14051 |
|  Merck KGaA | Euro STR + 0.35% | Monthly | JPHQ | 7/14/23 | 123117 | EUR | 3297 |
|  MERLIN Properties SOCIMI SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/23 | 133377 | EUR | (3552) |
|  Mersen | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 134689 | EUR | 35462 |
|  Metall Zug AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 33390 | CHF | 1989 |
|  Metro Bank PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 7904 | GBP | 79 |
|  MFE | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 30551 | EUR | 320 |
|  MFE | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 16374 | EUR | 286 |
|  Migros Ticaret | 1-Day FEDEF + 0.30% | Monthly | MSCS | 9/08/23 | 52280 |  | 15977 |
|  Mitchells & Butlers PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 14008 | GBP | (247) |
|  Mitie Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 228629 | GBP | 34412 |
|  MLP SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 22541 | EUR | 2429 |
|  Mo-Bruk SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/23 | 58698 |  | (1343) |
|  Molecular Partners | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/23 | 15766 | CHF | (251) |
|  Molten Ventures PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 34072 | GBP | 1020 |
|  Montana | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/23 | 16122 | CHF | 872 |
|  Moonpig Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 161319 | GBP | 2705 |
|  Morgan Advanced Materials | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 161297 | GBP | 24043 |
|  Morgan Sindall Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 198366 | GBP | (27219) |
|  Motus Holdings Ltd. | 1-Day SABOR + 0.34% | Monthly | MSCS | 7/17/23 | 2470753 | ZAR | 5560 |
|  MPC Container Ships ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1087252 | NOK | (15722) |
|  MPS | Euro STR | Monthly | JPHQ | 11/27/23 | 16135 | EUR | 641 |
|  MTN Group Ltd. | 1-Day SABOR + 0.32% | Monthly | MSCS | 7/13/23 | 4046567 | ZAR | 8985 |
|  MTU Aero Engines AG | Euro STR + 0.35% | Monthly | JPHQ | 8/01/23 | 142398 | EUR | 16486 |
|  Muenchener Rueckversicherungs Gesellschaft AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 27631 | EUR | 2256 |
|  MultiChoice Group Ltd. | 1-Day SABOR + 0.30% | Monthly | MSCS | 7/17/23 | 2932655 | ZAR | 2090 |
|  National Express Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 8/25/23 | 177067 | GBP | (2168) |
|  NatWest Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 172378 | GBP | 21588 |
|  NCC AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1629377 | SEK | (5512) |
|  Neinor Homes SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/23 | 245151 | EUR | (58287) |
|  Nemetschek SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 143910 | EUR | 3311 |
|  NEPI Rockcastle NV | 1-Day SABOR + 0.70% | Monthly | MSCS | 11/17/23 | 2465299 | ZAR | 4085 |
|  Netcare Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 10/02/23 | 1548710 | ZAR | 4931 |
|  New Wave Group AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1616623 | SEK | 63920 |
|  New Work SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 157091 | EUR | 36155 |
|  Newriver Reit PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 140630 | GBP | (23109) |
|  Nexans | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 140416 | EUR | 1277 |
|  Next Fifteen Communications Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 76211 | GBP | 10171 |
|  Nilfisk Holding A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/12/23 | 804833 | DKK | (12571) |
|  NKT A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 374148 | DKK | (571) |
|  NN Group NV | Euro STR + 0.35% | Monthly | JPHQ | 7/14/23 | 222752 | EUR | (15104) |
|  Nokia Corp. | Euro STR + 0.28% | Monthly | SEBA | 7/17/23 | 195164 | EUR | 7345 |
|  Nordic Nanovector | 1-Week NIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 113745 | NOK | (231) |
|  Nordic Semiconductor ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 297267 | NOK | 6542 |
|  Norske Skog ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1189058 | NOK | (6670) |
|  Northern Data AG | Euro STR | Monthly | JPHQ | 11/27/23 | 3453 | EUR | (311) |
|  Novacyt Group | 1-Day EONIA + 0.30% | Monthly | MSCS | 11/27/23 | 9865 | EUR | 1006 |
|  Novo Nordisk AS | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1108434 | DKK | 11064 |
|  NRC Group ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 354318 | NOK | (5923) |
|  NSI NV | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 16001 | EUR | (372) |
|  NTG Nordic Transport Group | 1-Week CIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 339474 | DKK | (657) |
|  OC Oerlikon | 1-Day SARON + 0.35% | Monthly | JPHQ | 10/19/23 | 154255 | CHF | (8433) |
|  OCI NV | Euro STR + 0.35% | Monthly | JPHQ | 7/12/23 | 147424 | EUR | 16139 |

---

 <br> 96 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Long<sup>a</sup>** (continued) | **Equity Contracts – Long<sup>a</sup>** (continued) | | | | | | |
|  ODAS Elektrik Uretim ve Sanayi Ticaret AS | 1-Day FEDEF + 0.30% | Monthly | MSCS | 8/24/23 | 65405 |  | $28525 |
|  Odfjell Drilling | 1-Week NIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 129938 | NOK | 210 |
|  Okea ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1927765 | NOK | 6304 |
|  Omnia Holdings Ltd. | 1-Day SABOR + 0.31% | Monthly | MSCS | 7/17/23 | 3300849 | ZAR | 12752 |
|  OMV AG | Euro STR + 0.35% | Monthly | JPHQ | 7/13/23 | 80510 | EUR | 583 |
|  On The Beach Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 224413 | GBP | 10431 |
|  Oncopeptides AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 178251 | SEK | 1216 |
|  Ontex Group NV | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 16284 | EUR | 481 |
|  Orange Polska SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/23 | 29078 |  | 2486 |
|  Ordina NV | Euro STR + 0.35% | Monthly | JPHQ | 7/13/23 | 215828 | EUR | 22524 |
|  Oriola Corp. | Euro STR + 0.28% | Monthly | SEBA | 7/17/23 | 60132 | EUR | (8846) |
|  ORIOR AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 96726 | CHF | 7873 |
|  Orkla ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 8/28/23 | 1795536 | NOK | (27299) |
|  Orpea SA | 1-Month EURIBOR + 0.40% | Monthly | MSCS | 11/14/23 | 69465 | EUR | (13252) |
|  Orr Energy Group | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 173977 | SEK | (1025) |
|  ORSERO | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 70024 | EUR | (2912) |
|  OSB Group | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/12/23 | 214053 | GBP | (4595) |
|  Osram Licht AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/23 | 15866 | CHF | (28) |
|  Outokumpu OYJ | Euro STR + 0.28% | Monthly | SEBA | 7/25/23 | 203859 | EUR | 33646 |
|  OVS SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/26/23 | 115912 | EUR | 6711 |
|  OZAK GMYO | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/23 | 129882 |  | 79511 |
|  Pagegroup PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 156068 | GBP | 14616 |
|  Pan African Resources PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 204681 | GBP | (13801) |
|  Pandora A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/14/23 | 1207268 | DKK | 18943 |
|  Pandox AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/01/23 | 1273130 | SEK | (6157) |
|  Partners Group | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/29/23 | 33281 | CHF | 20 |
|  Patrizia | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 16151 | EUR | (23) |
|  Peach Property Group | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/23 | 15680 | CHF | (809) |
|  Pearson PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 10/31/23 | 46418 | GBP | 2166 |
|  Per Aarsleff Holding A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1234507 | DKK | 20041 |
|  Petra Diamonds Ltd. | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 8325 | GBP | (186) |
|  Peugeot Invest SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 116467 | EUR | 3535 |
|  Pexip Holding | 1-Week NIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 164122 | NOK | 430 |
|  Pfizer Inc. | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1081016 | SEK | (2338) |
|  PGE Polska Grupa Energetyczna SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/14/23 | 205711 |  | (33275) |
|  PGS | 1-Day FEDEF + 0.30% | Monthly | SEBA | 11/27/23 | 166188 | NOK | 132 |
|  Pharming Group NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 31228 | EUR | 4212 |
|  PKN Orlen | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/20/23 | 33996 |  | 1296 |
|  PORR AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 90981 | EUR | 12504 |
|  Poste Italiane SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 118932 | EUR | 1949 |
|  PPC Ltd. | 1-Day SABOR + 0.32% | Monthly | MSCS | 7/17/23 | 1437934 | ZAR | (7672) |
|  Premier Foods PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 29426 | GBP | (1003) |
|  Prysmian SpA | Euro STR + 0.35% | Monthly | JPHQ | 8/22/23 | 91115 | EUR | 3156 |
|  PSI Software AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 68103 | EUR | (1112) |
|  PSP | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/29/23 | 16140 | CHF | (241) |
|  QIAGEN NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 212042 | EUR | 15244 |
|  QinetiQ Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/10/23 | 117289 | GBP | 649 |
|  Quadient | 1-Day EONIA + 0.30% | Monthly | MSCS | 11/27/23 | 16147 | EUR | (490) |
|  Quantafuel | 1-Week NIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 112993 | NOK | 1181 |
|  Quantum Genomics | 1-Day EONIA + 0.30% | Monthly | MSCS | 11/27/23 | 5459 | EUR | (445) |
|  Questerre Energy Corp. | 1-Week NIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 111216 | NOK | 290 |
|  Ramsay Health Care Ltd. | 1-Month BBSW + 0.40% | Monthly | BZWS | 4/21/23 | 365997 | AUD | 3577 |
|  Rana Gruber ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1068437 | NOK | 306 |

---

 <br> franklintempleton.com Semiannual Report 97

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Long<sup>a</sup>** (continued) | **Equity Contracts – Long<sup>a</sup>** (continued) | | | | | | |
|  Randstad NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 132906 | EUR | $4823 |
|  Reach PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 13911 | GBP | (843) |
|  Redefine Properties Ltd. | 1-Day SABOR + 0.31% | Monthly | MSCS | 7/12/23 | 2321259 | ZAR | 13957 |
|  Renew Holdings PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 59641 | GBP | (3507) |
|  Renewi PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 209468 | GBP | (56358) |
|  Repsol SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/12/23 | 82331 | EUR | 21487 |
|  Repsol SA | 1-Day EONIA + 0.40% | Monthly | MSCO | 10/24/23 | 1028008 | EUR | 57522 |
|  Resilient REIT | 1-Day SABOR + 0.70% | Monthly | MSCS | 11/28/23 | 778319 | ZAR | (280) |
|  Restaurant Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 13768 | GBP | (1720) |
|  Retail Estates NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 145440 | EUR | (832) |
|  Rexel | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/13/23 | 160577 | EUR | 22320 |
|  Richemont | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/31/23 | 158465 | CHF | 33987 |
|  Rightmove PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 97434 | GBP | (7104) |
|  Roche | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 212813 | CHF | (7409) |
|  Rockwool A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1311590 | DKK | (12321) |
|  Rothschild & Co. | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 157224 | EUR | 25195 |
|  Rovio Entertainment OYJ | Euro STR + 0.28% | Monthly | SEBA | 9/04/23 | 89044 | EUR | 2232 |
|  RPS Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 13946 | GBP | (51) |
|  Ryanair Holdings PLC | 1-Month EURIBOR + 0.40% | Monthly | MSCS | 11/14/23 | 253059 | EUR | (8574) |
|  S IMMO AG | Euro STR + 0.35% | Monthly | JPHQ | 12/01/23 | 2600 | EUR | (34) |
|  SA Corporate Real Estate Ltd. | 1-Day SABOR + 0.34% | Monthly | MSCS | 7/17/23 | 1082341 | ZAR | 3858 |
|  Saab AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 878917 | SEK | (2200) |
|  Sabesp | 1-Day FEDEF + 1.00% | Monthly | MSCO | 9/26/23 | 389102 |  | 37397 |
|  Safestore Holdings PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 10/06/23 | 48593 | GBP | 5363 |
|  SAF-HOLLAND SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 152559 | EUR | 16128 |
|  Sagax AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/24/23 | 579784 | SEK | 4652 |
|  Saint Gobain | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 206679 | EUR | 13155 |
|  Sanlorenzo | Euro STR + 0.35% | Monthly | JPHQ | 8/25/23 | 125814 | EUR | 4034 |
|  Sappi Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 11/27/23 | 285782 | ZAR | (286) |
|  Saras | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 16154 | EUR | (1185) |
|  Sartorius Stedim Biotech SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 56925 | EUR | 281 |
|  Sartorius AG | 1-Day EONIA + 0.30% | Monthly | JPHQ | 7/19/23 | 115227 | EUR | (2050) |
|  Sasol Ltd. | 1-Day SABOR + 0.33% | Monthly | MSCS | 7/17/23 | 3901808 | ZAR | (25694) |
|  SAVILLS PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 258620 | GBP | (22707) |
|  SBB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 176649 | SEK | 818 |
|  Scandi Standard AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 796099 | SEK | 30206 |
|  Schindler | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/29/23 | 50369 | CHF | (427) |
|  SCOR SE | 1-Day EONIA + 0.30% | Monthly | MSCS | 8/11/23 | 167077 | EUR | 16593 |
|  Seplat Energy | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 9791 | GBP | (21) |
|  SESA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 176466 | EUR | 10736 |
|  Shangji Auto | 1-Day FEDEF + 0.30% | Monthly | MSCO | 10/24/23 | 955947 |  | (143723) |
|  Sibanye Stillwater Ltd. | 1-Day SABOR + 0.31% | Monthly | MSCS | 7/14/23 | 2708287 | ZAR | 34817 |
|  Siegfried | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/09/23 | 103828 | CHF | (4473) |
|  Signify NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 201566 | EUR | 15093 |
|  SII | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 85934 | EUR | 4102 |
|  Siltronic AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 121314 | EUR | 17246 |
|  Sinch | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 179234 | SEK | (590) |
|  SIPEF | Euro STR + 0.35% | Monthly | JPHQ | 7/13/23 | 48048 | EUR | (1970) |
|  Smart Eye AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 153542 | SEK | (196) |
|  SMCP SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 158470 | EUR | 54631 |
|  Smith & Nephew PLC | 1-Day SONIA + 0.44% | Monthly | MSCS | 11/14/23 | 1343371 | GBP | 41904 |
|  Snam SpA | Euro STR + 0.35% | Monthly | JPHQ | 10/13/23 | 106450 | EUR | 5282 |
|  Societe Generale SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 172357 | EUR | 37664 |
|  Societe Generale SA | 1-Month LIBOR + 0.40% | Monthly | GSCO | 3/14/25 | 377157 | EUR | 115600 |
|  Solar A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/13/23 | 1486314 | DKK | (10033) |

---

 <br> 98 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Long<sup>a</sup>** (continued) | **Equity Contracts – Long<sup>a</sup>** (continued) | | | | | | |
|  Solstad Offshore | 1-Week NIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 167704 | NOK | $2389 |
|  SolTech Energy Sweden AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 87648 | SEK | 1162 |
|  Solutions 30 | 1-Day EONIA + 0.30% | Monthly | MSCS | 11/27/23 | 15990 | EUR | (653) |
|  Solvay | Euro STR + 0.35% | Monthly | JPHQ | 10/09/23 | 134000 | EUR | (5469) |
|  Sonova | Euro STR + 0.35% | Monthly | JPHQ | 7/31/23 | 155245 | CHF | 6225 |
|  Sopra Steria Group SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 183303 | EUR | 1712 |
|  Southern Energy Corp. | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/29/23 | 4490 | GBP | (29) |
|  Speedy Hire PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 97556 | GBP | (1654) |
|  SSAB AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1124750 | SEK | 29734 |
|  Stadler Rail AG | Euro STR + 0.35% | Monthly | JPHQ | 7/31/23 | 123714 | CHF | 6649 |
|  Standard Chartered PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 141611 | GBP | 17387 |
|  STEF | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 73208 | EUR | (6675) |
|  Stellantis NV | Euro STR + 0.35% | Monthly | JPHQ | 7/12/23 | 217358 | EUR | 19382 |
|  SThree PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/12/23 | 209326 | GBP | 22690 |
|  Stillfront Group AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1248957 | SEK | (32647) |
|  Stockmann PLC | Euro STR + 0.28% | Monthly | SEBA | 7/12/23 | 157977 | EUR | (49246) |
|  Stolt-Nielsen Ltd. | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1599856 | NOK | 40640 |
|  Stora Enso Oyj | Euro STR + 0.28% | Monthly | SEBA | 10/23/23 | 125887 | EUR | 1645 |
|  STORE Capital | OBFR + 0.45% | Monthly | BZWS | 9/25/23 | 6109117 |  | 24274 |
|  Storskogen Group AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 174642 | SEK | (564) |
|  STRABAG SE | Euro STR + 0.35% | Monthly | JPHQ | 7/12/23 | 213981 | EUR | 3283 |
|  Stroeer SE & Co. KGaA | 1-Month EURIBOR + 0.40% | Monthly | MSCS | 11/14/23 | 191259 | EUR | (1702) |
|  Sulzer Ltd. | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/10/23 | 138402 | CHF | 312 |
|  Superdry PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 13711 | GBP | (1842) |
|  Sureserve Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 31525 | GBP | (5976) |
|  SUSS MicroTec SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 97600 | EUR | 15117 |
|  Swatch Group Ltd. | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/23 | 104792 | CHF | 4066 |
|  Swedish Orphan Biovitrum AB | 1-Week STIBOR + 0.65% | Monthly | SEBA | 7/13/23 | 3320084 | SEK | 4239 |
|  Swiss Life Holding AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/23 | 223451 | CHF | 4995 |
|  Swiss Prime Site | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/10/23 | 80729 | CHF | (3288) |
|  Swissquote Group Holding SA | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/23 | 60003 | CHF | 3659 |
|  Sydbank A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 679100 | DKK | 25952 |
|  Sylvania Platinum Ltd. | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 90912 | GBP | 24930 |
|  Synthomer PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 13819 | GBP | (1131) |
|  Talanx AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 229937 | EUR | 24556 |
|  Tauron Polska Energia SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/23 | 182659 |  | (53101) |
|  TBC Bank Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 60137 | GBP | 56305 |
|  TeamViewer AG | Euro STR + 0.35% | Monthly | JPHQ | 8/01/23 | 163802 | EUR | 25782 |
|  Technip Energies NV | 1-Day EONIA + 0.30% | Monthly | MSCS | 8/07/23 | 148230 | EUR | 35313 |
|  Telecom Plus PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/06/23 | 147016 | GBP | 65333 |
|  Telkom SA SOC Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 7/17/23 | 285949 | ZAR | 107 |
|  Tessenderlo Group | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 130651 | EUR | 3428 |
|  TF1 Group | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/12/23 | 194443 | EUR | 22842 |
|  Thales | 1-Day EONIA + 0.30% | Monthly | MSCS | 8/23/23 | 141313 | EUR | 1341 |
|  Tharisa PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 32680 | GBP | 3163 |
|  THG PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 14040 | GBP | 141 |
|  Thungela Resources Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 8/23/23 | 2503010 | ZAR | (8689) |
|  ThyssenKrupp AG | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 16224 | EUR | 204 |
|  TIM SpA | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 16082 | EUR | (1120) |
|  Tod's SpA | Euro STR + 0.35% | Monthly | JPHQ | 11/30/23 | 5158 | EUR | 10 |
|  Toshiba Corp. | 1-Day MUTSCALM + 0.55% | Monthly | MSCO | 8/25/23 | 57983894 | JPY | (40016) |
|  Trainline PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 127416 | GBP | (8693) |
|  Transtema Group AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 963597 | SEK | (1021) |
|  Trelleborg AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 880639 | SEK | 14296 |
|  Tremor International Ltd. | 1-Day SONIA + 0.35% | Monthly | MSCS | 10/06/23 | 105927 | GBP | (613) |

---

 <br> franklintempleton.com Semiannual Report 99

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Long<sup>a</sup>** (continued) | **Equity Contracts – Long<sup>a</sup>** (continued) | | | | | | |
|  TUI AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 130045 | EUR | $5574 |
|  Tullow Oil PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 73726 | GBP | (2689) |
|  Turkiye Hava Yollari | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/23 | 67753 |  | 62858 |
|  Turkiye Sinai Kalkinma Bankasi AS | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/27/23 | 16860 |  | 223 |
|  TX Group AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/23 | 13917 | CHF | 19 |
|  u-blox AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/23 | 190027 | CHF | 25213 |
|  UBS Group AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/23 | 229984 | CHF | 12325 |
|  Umicore | Euro STR + 0.35% | Monthly | JPHQ | 11/21/23 | 107321 | EUR | 894 |
|  Unicaja Banco | 1-Day EONIA + 0.35% | Monthly | MSCS | 11/13/23 | 73830 | EUR | 2033 |
|  UniCredit SpA | Euro STR + 0.35% | Monthly | JPHQ | 9/25/23 | 215199 | EUR | 2568 |
|  Unipol Gruppo SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/14/23 | 310726 | EUR | 18200 |
|  Universal Music Group NV | Euro STR + 0.35% | Monthly | JPHQ | 10/12/23 | 81189 | EUR | 11300 |
|  Uponor OYJ | Euro STR + 0.28% | Monthly | SEBA | 7/17/23 | 112970 | EUR | 9475 |
|  VakifBank | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/27/23 | 16907 |  | (118) |
|  Valiant | Euro STR + 0.35% | Monthly | JPHQ | 7/12/23 | 235127 | CHF | 9146 |
|  Valora | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/23 | 6976 | CHF | (11) |
|  Var Energi | 1-Week NIBOR + 0.28% | Monthly | SEBA | 10/23/23 | 931149 | NOK | 4537 |
|  Varia US Properties AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/23 | 22553 | CHF | 387 |
|  Vastned Retail NV | Euro STR + 0.35% | Monthly | JPHQ | 11/27/23 | 12329 | EUR | (353) |
|  VEF | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 105889 | SEK | (145) |
|  Veidekke | 1-Week NIBOR + 0.28% | Monthly | SEBA | 8/24/23 | 712773 | NOK | (2303) |
|  Verallia | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 128267 | EUR | 45361 |
|  Verbund AG | Euro STR + 0.35% | Monthly | JPHQ | 8/23/23 | 31303 | EUR | 3047 |
|  Vertu Motors PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 115303 | GBP | (20178) |
|  Vetropack | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 105693 | CHF | (1616) |
|  VIB Vermoegen AG | Euro STR + 0.35% | Monthly | JPHQ | 7/12/23 | 74837 | EUR | (5328) |
|  Victoria PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 13770 | GBP | (919) |
|  Vilmorin & Cie SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/23 | 53593 | EUR | 11186 |
|  Virgin Money PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 62346 | GBP | 24879 |
|  Vitec Software Group AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 917306 | SEK | (7283) |
|  Vitesco Technologies | Euro STR + 0.35% | Monthly | JPHQ | 9/04/23 | 111595 | EUR | (9553) |
|  VNV Global | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 179233 | SEK | (841) |
|  Vodafone Group PLC | 1-Day SONIA + 0.65% | Monthly | MSCO | 2/08/23 | 1853842 | GBP | (493132) |
|  Volkswagen AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 60350 | EUR | 979 |
|  Vontobel | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 111778 | CHF | (229) |
|  Vukile Property Fund Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 8/24/23 | 2788084 | ZAR | 5567 |
|  Wacker Chemie AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 186875 | EUR | 4249 |
|  Wacker Neuson SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 119328 | EUR | 5615 |
|  Wallenius Wilhelmsen ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 183277 | NOK | 5170 |
|  Watkin Jones PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 297550 | GBP | (172955) |
|  Wereldhave NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 94456 | EUR | 2646 |
|  Wickes Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 208028 | GBP | (32554) |
|  Wienerberger AG | Euro STR + 0.35% | Monthly | JPHQ | 10/09/23 | 123929 | EUR | 7067 |
|  Wihlborgs Fastigheter AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1873608 | SEK | 14184 |
|  WithSecure | Euro STR + 0.28% | Monthly | SEBA | 7/17/23 | 16286 | EUR | (1067) |
|  Woodbois Ltd. | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/28/23 | 6175 | GBP | (400) |
|  Workspace Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 10/27/23 | 91280 | GBP | (4478) |
|  WPP PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/23 | 125829 | GBP | 15192 |
|  Wuestenrot & Wuerttembergische AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 75610 | EUR | (1464) |
|  Xior Student Housing NV | Euro STR + 0.35% | Monthly | JPHQ | 7/28/23 | 164264 | EUR | (12936) |
|  XXL ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 11/27/23 | 72332 | NOK | 117 |
|  Yamana Gold Inc. | 1-Day FEDEF + 0.40% | Monthly | MSCO | 11/29/23 | 280794 |  | 13724 |
|  Yara International ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/23 | 1081367 | NOK | 13365 |
|  YouGov | 1-Day SONIA + 0.35% | Monthly | MSCS | 10/27/23 | 42618 | GBP | 4126 |

---

 <br> 100 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Long<sup>a</sup>** (continued) | **Equity Contracts – Long<sup>a</sup>** (continued) | | | | | | |
|  Zehnder | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 249776 | CHF | $7818 |
|  Zepak Corp. | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/27/23 | 16950 |  | (101) |
|  Zephyr Energy | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/23 | 9469 | GBP | (125) |
|  Zug Estates Holding AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/23 | 9966 | CHF | (7) |
|  Zumtobel Group AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/23 | 29622 | EUR | (112) |
|  Zur Rose Group | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/23 | 15591 | CHF | (1086) |
|  |  |  |  |  |  |  | 1915929 |
| **Equity Contracts – Short<sup>d</sup>** |  |  |  |  |  |  |  |
|  1Life Healthcare Inc. | 1-Day FEDEF - 0.35% | Monthly | MSCO | 10/25/23 | 263069 |  | 1426 |
|  AAK AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 3207050 | SEK | (14768) |
|  AB Dynamics PLC | 1-Day SONIA - 1.25% | Monthly | MSCS | 7/18/23 | 58308 | GBP | (25964) |
|  ABB Ltd. | 1-Day SARON - 0.35% | Monthly | JPHQ | 10/31/23 | 76869 | CHF | (1637) |
|  ABB Ltd. | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/23 | 351288 | SEK | 138 |
|  ABOUT YOU Holding SE | Euro STR - 6.00% | Monthly | JPHQ | 7/17/23 | 38923 | EUR | (3077) |
|  Abrdn European Logistics Income PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 114426 | GBP | 32202 |
|  Accor SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 165987 | EUR | (952) |
|  ACEA | Euro STR - 0.30% | Monthly | JPHQ | 10/13/23 | 48915 | EUR | (454) |
|  Acomo NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 42767 | EUR | (1451) |
|  Adecco | Euro STR - 0.35% | Monthly | JPHQ | 7/17/23 | 123986 | CHF | 4608 |
|  adesso SE | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 72473 | EUR | (21212) |
|  Adevinta ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 1805341 | NOK | (39901) |
|  Admiral Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 147383 | GBP | (10872) |
|  AECI Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 9/20/23 | 2482796 | ZAR | (9447) |
|  Aeffe | Euro STR - 3.20% | Monthly | JPHQ | 8/08/23 | 34836 | EUR | 635 |
|  Agilyx | 1-Week NIBOR - 4.25% | Monthly | SEBA | 8/07/23 | 325240 | NOK | (4136) |
|  Agnico Eagle Mines Ltd. | 1-Day FEDEF - 0.35% | Monthly | MSCO | 11/29/23 | 98826 |  | (3314) |
|  Agronomics Ltd. | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 47089 | GBP | 5421 |
|  Air Liquide | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 32196 | EUR | 424 |
|  Aker BP ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 1198151 | NOK | (9374) |
|  Aker Carbon Capture ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/14/23 | 77006 | NOK | 2801 |
|  Aker Horizons | 1-Week NIBOR - 4.25% | Monthly | SEBA | 11/22/23 | 379129 | NOK | 1362 |
|  AkzoNobel NV | Euro STR - 0.30% | Monthly | JPHQ | 8/28/23 | 189328 | EUR | (6379) |
|  Alcadon Group AB | 1-Week STIBOR - 6.00% | Monthly | SEBA | 7/17/23 | 155375 | SEK | (8) |
|  Alfa Laval AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 353011 | SEK | 111 |
|  Allfunds Group PLC | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 33326 | EUR | 2484 |
|  Allianz SE | Euro STR - 0.30% | Monthly | JPHQ | 11/27/23 | 32371 | EUR | 90 |
|  Allreal Holding AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/23 | 217554 | CHF | 6 |
|  Alm. Brand A/S | 1-Week CIBOR - 0.75% | Monthly | SEBA | 7/26/23 | 1239459 | DKK | (17411) |
|  Almirall SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 10/11/23 | 113512 | EUR | 2820 |
|  Alpha FX Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 99699 | GBP | (43338) |
|  Alstom SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/13/23 | 156177 | EUR | (15307) |
|  Aluflexpack AG | Euro STR - 0.85% | Monthly | JPHQ | 7/17/23 | 45231 | CHF | (7970) |
|  Ambu A/S | 1-Week CIBOR - 1.50% | Monthly | SEBA | 7/17/23 | 453417 | DKK | (12925) |
|  AMG Advanced Metallurgical Group NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 50506 | EUR | 512 |
|  Amplifon | Euro STR - 0.30% | Monthly | JPHQ | 11/27/23 | 84356 | EUR | 1898 |
|  AngloGold Ashanti Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 10/06/23 | 3110649 | ZAR | (38431) |
|  Anheuser-Busch InBev SA/NV | Euro STR - 0.30% | Monthly | JPHQ | 7/13/23 | 198364 | EUR | (12305) |
|  Anora Group PLC | Euro STR - 0.28% | Monthly | SEBA | 7/17/23 | 81104 | EUR | 6583 |
|  Antares Vision | Euro STR - 2.65% | Monthly | JPHQ | 8/07/23 | 15845 | EUR | (291) |
|  Antero Resources Corp. | 1-Day FEDEF - 0.35% | Monthly | MSCO | 10/23/23 | 116658 |  | (1581) |
|  Antin Infrastructure Partners | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 156201 | EUR | 4779 |
|  Aramis Group | 1-Day EONIA - 8.50% | Monthly | MSCS | 7/17/23 | 75799 | EUR | (13220) |

---

 <br> franklintempleton.com Semiannual Report 101

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Short<sup>d</sup>** (continued) |  | | | | | | |
|  Arbonia AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/08/23 | 69266 | CHF | $1065 |
|  Arcelik | 1-Day FEDEF - 5.00% | Monthly | MSCS | 7/17/23 | 133760 |  | (41679) |
|  Argan SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 119187 | EUR | 19529 |
|  Aroundtown SA | Euro STR - 0.30% | Monthly | JPHQ | 7/12/23 | 47714 | EUR | (4591) |
|  Ascential PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 214864 | GBP | 21714 |
|  Ascopiave SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 41726 | EUR | (1628) |
|  Aselsan AS | 1-Day FEDEF - 7.50% | Monthly | MSCS | 7/17/23 | 111890 |  | (120885) |
|  Ashmore Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/18/23 | 78926 | GBP | (16208) |
|  ASOS PLC | 1-Day SONIA - 0.88% | Monthly | MSCS | 9/29/23 | 65480 | GBP | (5369) |
|  Aspen Pharmacare Holdings Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 7/17/23 | 2242366 | ZAR | 2673 |
|  Assa Abloy AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/23 | 352027 | SEK | 463 |
|  AstraZeneca PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/23 | 28008 | GBP | (420) |
|  AstraZeneca PLC | 1-Day SONIA - 0.30% | Monthly | SEBA | 11/27/23 | 354432 | SEK | (567) |
|  Atlas Copco | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/23 | 352902 | SEK | 308 |
|  Atlas Copco | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/23 | 353024 | SEK | 437 |
|  Atos SE | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 66187 | EUR | (22279) |
|  AUTO1 Group SE | Euro STR - 0.75% | Monthly | JPHQ | 7/14/23 | 188413 | EUR | 4898 |
|  Avanza Bank Holding AB | 1-Week STIBOR - 0.75% | Monthly | SEBA | 7/17/23 | 921293 | SEK | (18104) |
|  Avon Protection PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 126646 | GBP | (11256) |
|  Azelis Holding SA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 110024 | EUR | (5983) |
|  B&M European Value Retail SA | 1-Day SONIA - 0.30% | Monthly | MSCS | 10/31/23 | 142158 | GBP | (36326) |
|  B&S Group SA | Euro STR - 0.30% | Monthly | JPHQ | 10/12/23 | 39621 | EUR | (2184) |
|  Bachem AG | Euro STR - 0.35% | Monthly | JPHQ | 7/17/23 | 159083 | CHF | (29247) |
|  Banca Generali SpA | Euro STR - 0.30% | Monthly | JPHQ | 9/21/23 | 171541 | EUR | (1687) |
|  Banque Cantonale Vaudoise | Euro STR - 0.35% | Monthly | JPHQ | 7/12/23 | 256065 | CHF | 9171 |
|  Barloworld Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 10/03/23 | 2040169 | ZAR | (11940) |
|  Basic-Fit | Euro STR - 1.75% | Monthly | JPHQ | 7/14/23 | 42414 | EUR | (2140) |
|  Basler AG | Euro STR - 1.20% | Monthly | JPHQ | 7/17/23 | 104131 | EUR | (12668) |
|  BAWAG Group AG | Euro STR - 0.30% | Monthly | JPHQ | 10/23/23 | 135643 | EUR | 2818 |
|  BayWa AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 150250 | EUR | (1485) |
|  Befesa SA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 270963 | EUR | (17186) |
|  Beiersdorf AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 76602 | EUR | (3238) |
|  Beijer Ref AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 1825521 | SEK | (34191) |
|  Believe SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 24798 | EUR | (8394) |
|  Belimo Holding AG | Euro STR - 0.35% | Monthly | JPHQ | 7/17/23 | 243492 | CHF | (10922) |
|  Berkeley Group Holdings PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/17/23 | 148220 | GBP | 1289 |
|  BFF Bank SpA | Euro STR - 0.30% | Monthly | JPHQ | 10/16/23 | 38806 | EUR | (1417) |
|  BHP Group Ltd. | 1-Day SONIA - 0.30% | Monthly | MSCS | 12/01/23 | 4588 | GBP | (22) |
|  Bollore SE | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 239329 | EUR | (42835) |
|  Boohoo Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/01/23 | 72542 | GBP | (1939) |
|  Borussia Dortmund | Euro STR - 0.95% | Monthly | JPHQ | 7/17/23 | 75871 | EUR | 4037 |
|  Bossard AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/23 | 208530 | CHF | (8759) |
|  Bouygues Telecom | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/09/23 | 124967 | EUR | 3444 |
|  Bpost | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 6781 | EUR | 43 |
|  Bufab AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 633273 | SEK | 6779 |
|  Bunzl PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/23 | 27828 | GBP | 337 |
|  Bureau Veritas SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/09/23 | 181015 | EUR | 3251 |
|  Burford Capital Ltd. | 1-Day SONIA - 0.63% | Monthly | MSCS | 7/17/23 | 159256 | GBP | 12769 |
|  Burkhalter | 1-Day SARON - 0.35% | Monthly | JPHQ | 9/20/23 | 57416 | CHF | (1715) |
|  BW Energy Ltd. | 1-Week NIBOR - 0.45% | Monthly | SEBA | 7/17/23 | 1170166 | NOK | (18464) |
|  Bystronic AG | Euro STR - 0.35% | Monthly | JPHQ | 8/03/23 | 218050 | CHF | (18487) |
|  CA Immobilien Anlagen AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 285252 | EUR | 11782 |
|  Cadeler AS | 1-Week NIBOR - 6.50% | Monthly | SEBA | 7/17/23 | 1055141 | NOK | (11811) |
|  CaixaBank SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/23 | 122732 | EUR | (30653) |
|  Campari | Euro STR - 0.30% | Monthly | JPHQ | 7/31/23 | 159077 | EUR | (11584) |
|  Camurus AB | 1-Week STIBOR - 0.75% | Monthly | SEBA | 7/17/23 | 1065231 | SEK | (18247) |

---

 <br> 102 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Short<sup>d</sup>** (continued) |  | | | | | | |
|  Capitec Bank Holdings Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 7/14/23 | 5504065 | ZAR | $(16474) |
|  Carel Industries | Euro STR - 0.30% | Monthly | JPHQ | 9/21/23 | 77792 | EUR | (6412) |
|  Carnival Corp. | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 211401 | GBP | (10855) |
|  Castellum AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 1619531 | SEK | 16279 |
|  CCC SA | 1-Day FEDEF - 12.75% | Monthly | MSCS | 8/02/23 | 59726 |  | 4249 |
|  CD Projekt SA | 1-Day FEDEF - 1.25% | Monthly | MSCS | 7/17/23 | 193073 |  | (83862) |
|  Cellnex Telecom SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/14/23 | 387499 | EUR | 60533 |
|  Ceres Power Holdings PLC | 1-Day SONIA - 1.38% | Monthly | MSCS | 7/17/23 | 77414 | GBP | (3972) |
|  CEWE Stiftung & Co. KGaA | Euro STR - 0.75% | Monthly | JPHQ | 9/01/23 | 44237 | EUR | (6450) |
|  CGG SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 100684 | EUR | 13118 |
|  Cint Group AB | 1-Week STIBOR - 0.45% | Monthly | SEBA | 7/17/23 | 168832 | SEK | 1237 |
|  CIR SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 31854 | EUR | 1023 |
|  Civitas Social Housing PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/01/23 | 143834 | GBP | 22652 |
|  Clicks Group Ltd. | 1-Day SABOR - 1.25% | Monthly | MSCS | 10/06/23 | 3363132 | ZAR | (7685) |
|  Close Brothers Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/31/23 | 135214 | GBP | (9912) |
|  Cloudberry Clean Energy ASA | 1-Week NIBOR - 1.00% | Monthly | SEBA | 7/17/23 | 418141 | NOK | 8276 |
|  CMC Markets PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/17/23 | 95677 | GBP | 429 |
|  Coca-Cola HBC AG | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/23 | 27872 | GBP | 229 |
|  Cofinimmo | Euro STR - 0.30% | Monthly | JPHQ | 10/13/23 | 97038 | EUR | 5339 |
|  Coloplast A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 401735 | DKK | (1388) |
|  Colruyt SA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 215511 | EUR | 4178 |
|  Compass Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/23 | 28062 | GBP | (558) |
|  Concentric AB | 1-Week STIBOR - 0.75% | Monthly | SEBA | 7/17/23 | 553262 | SEK | (3186) |
|  Convatec Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 149626 | GBP | (10180) |
|  Corbion NV | Euro STR - 0.30% | Monthly | JPHQ | 7/12/23 | 178576 | EUR | (7479) |
|  Corporacion Acciona | 1-Day EONIA - 0.50% | Monthly | MSCO | 10/13/23 | 561016 | EUR | 15832 |
|  COSMO Pharmaceuticals NV | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/23 | 150854 | CHF | (8045) |
|  Covestro AG | Euro STR - 0.30% | Monthly | JPHQ | 11/06/23 | 113078 | EUR | (6021) |
|  Covivio SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 100165 | EUR | (179) |
|  Credem | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 112786 | EUR | (8545) |
|  Credit Agricole SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 108937 | EUR | (9499) |
|  Croda International PLC | 1-Day SONIA - 0.44% | Monthly | MSCS | 11/27/23 | 27862 | GBP | 341 |
|  CTP NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 125725 | EUR | 1276 |
|  Cyfrowy Polsat SA | 1-Day FEDEF - 0.50% | Monthly | MSCS | 7/17/23 | 148481 |  | (2290) |
|  Daetwyler | Euro STR - 0.35% | Monthly | JPHQ | 7/17/23 | 303653 | CHF | (5753) |
|  D'Amico | Euro STR | Monthly | JPHQ | 9/04/23 | 44606 | EUR | (4334) |
|  Danone SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 32253 | EUR | 265 |
|  De La Rue PLC | 1-Day SONIA - 0.66% | Monthly | MSCS | 7/17/23 | 43252 | GBP | (4574) |
|  Deliveroo PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 58464 | GBP | (4224) |
|  Delivery Hero SE | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 125337 | EUR | (17808) |
|  De'Longhi SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/25/23 | 232887 | EUR | (32512) |
|  Deutsche Beteiligungs AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 96066 | EUR | (10376) |
|  Deutsche Boerse | Euro STR - 0.30% | Monthly | JPHQ | 11/27/23 | 32288 | EUR | (444) |
|  Deutsche Wohnen SE | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 212538 | EUR | 1772 |
|  Diageo PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/23 | 27894 | GBP | (292) |
|  Digital Bros Group | Euro STR - 0.80% | Monthly | JPHQ | 10/13/23 | 127170 | EUR | 8440 |
|  Digital Value SpA | Euro STR - 0.30% | Monthly | JPHQ | 11/27/23 | 20317 | EUR | 26 |
|  Dignity PLC | 1-Day SONIA - 1.97% | Monthly | MSCS | 7/17/23 | 47221 | GBP | 6390 |
|  Dino Polska SA | 1-Day FEDEF - 0.50% | Monthly | MSCS | 7/14/23 | 220452 |  | (34166) |
|  Discovery Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 7/17/23 | 2456657 | ZAR | (3598) |
|  Dometic Group AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 2135496 | SEK | (29770) |
|  Dottikon ES Holding AG | 1-Day SARON - 1.40% | Monthly | JPHQ | 7/17/23 | 279310 | CHF | (2824) |
|  DRDGOLD Ltd. | 1-Day SABOR - 1.00% | Monthly | MSCS | 7/17/23 | 554783 | ZAR | (3936) |
|  DSV A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/14/23 | 352538 | DKK | (4516) |
|  Dufry AG | 1-Day SARON - 0.35% | Monthly | BZWS | 11/17/23 | 373448 | CHF | (7149) |
|  Ebro Foods SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/13/23 | 157338 | EUR | 3679 |

---

 <br> franklintempleton.com Semiannual Report 103

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Short<sup>d</sup>** (continued) | **Equity Contracts – Short<sup>d</sup>** (continued) | | | | | | |
|  Eckert & Ziegler AG | Euro STR - 0.30% | Monthly | JPHQ | 8/21/23 | 204086 | EUR | $(62887) |
|  EDP Renovaveis SA | 1-Day EONIA - 0.50% | Monthly | MSCO | 10/13/23 | 613568 | EUR | 824 |
|  Electrolux AB | 1-Week STIBOR - 1.00% | Monthly | SEBA | 10/03/23 | 1264433 | SEK | (31951) |
|  Elior Group SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/14/23 | 113279 | EUR | (49531) |
|  Elisa Oyj | Euro STR - 0.28% | Monthly | SEBA | 11/15/23 | 48768 | EUR | 167 |
|  Emmi | 1-Day SARON - 0.35% | Monthly | JPHQ | 9/04/23 | 118712 | CHF | (6261) |
|  Ems-chemie AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/23 | 158694 | CHF | 1656 |
|  Enagas SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/18/23 | 35387 | EUR | (638) |
|  ENAV SpA | Euro STR - 0.30% | Monthly | JPHQ | 9/21/23 | 122382 | EUR | (11798) |
|  ENEL SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 119780 | EUR | (8547) |
|  Enento Group OYJ | Euro STR - 0.28% | Monthly | SEBA | 7/17/23 | 49100 | EUR | (633) |
|  Energean PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 93024 | GBP | (36233) |
|  Entra ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/13/23 | 2186324 | NOK | 29230 |
|  Epiroc AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/23 | 353911 | SEK | (387) |
|  EQT AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 1693203 | SEK | (10074) |
|  Eregli Demir ve Celik Fabrikalari TAS | 1-Day FEDEF - 5.00% | Monthly | MSCS | 7/14/23 | 100949 |  | (51422) |
|  Erste Group Bank AG | Euro STR - 0.30% | Monthly | JPHQ | 10/12/23 | 84123 | EUR | (2560) |
|  Esprinet | Euro STR - 0.30% | Monthly | JPHQ | 11/27/23 | 57202 | EUR | 325 |
|  Essentra PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/01/23 | 134251 | GBP | (42767) |
|  EssilorLuxottica SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 60913 | EUR | (12976) |
|  Essity AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 1541268 | SEK | (1965) |
|  Euronext | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 79324 | EUR | 2110 |
|  Eurotech | Euro STR - 10.60% | Monthly | JPHQ | 8/04/23 | 72901 | EUR | (1818) |
|  Evolution | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/29/23 | 56021 | SEK | 4813 |
|  Exasol AG | Euro STR - 2.05% | Monthly | JPHQ | 7/17/23 | 2364 | EUR | 57 |
|  EXMAR | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 48311 | EUR | (447) |
|  Experian PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/23 | 27928 | GBP | 228 |
|  Fabege AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 10/04/23 | 515004 | SEK | (8440) |
|  Faurecia SE | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/09/23 | 206480 | EUR | (33640) |
|  Ferguson PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/23 | 27711 | GBP | 1359 |
|  Ferrari SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 163615 | EUR | (5437) |
|  Ferrovial SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/23 | 315843 | EUR | (11948) |
|  Fevertree Drinks PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/25/23 | 235278 | GBP | (61378) |
|  Fielmann AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 214030 | EUR | (5168) |
|  FinecoBank SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 182662 | EUR | (19338) |
|  Flow Traders NV | Euro STR - 0.30% | Monthly | JPHQ | 8/28/23 | 73172 | EUR | 4253 |
|  Fluidra SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 9/29/23 | 150447 | EUR | 5165 |
|  Flutter Entertainment PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/31/23 | 165372 | GBP | (34888) |
|  Fortress REIT Ltd. | 1-Day SABOR - 0.56% | Monthly | MSCS | 7/12/23 | 4866602 | ZAR | (16759) |
|  Francaise Energie | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 201332 | EUR | 56197 |
|  Fresenius Medical Care AG & Co. | 1-Day FEDEF - 0.50% | Monthly | JPHQ | 11/20/23 | 16062 | EUR | (291) |
|  Fresnillo PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 173993 | GBP | (65010) |
|  Friedrich Vorwerk Group SE | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 88826 | EUR | (10942) |
|  Fugro | Euro STR - 0.30% | Monthly | JPHQ | 10/12/23 | 78359 | EUR | (7231) |
|  GAM | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/23 | 3271 | CHF | (469) |
|  Generali Group | Euro STR - 0.30% | Monthly | JPHQ | 10/13/23 | 60035 | EUR | (1992) |
|  Genuit Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 157640 | GBP | 20949 |
|  Getlink SE | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 210400 | EUR | 33955 |
|  Givaudan SA | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/23 | 109890 | CHF | (7660) |
|  Gjensidige Forsikring ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 1686632 | NOK | 7431 |
|  Granges AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 1225477 | SEK | (3399) |
|  Great Portland Estates PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 195446 | GBP | 27222 |
|  Greatland Gold PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 181075 | GBP | 40740 |
|  Grenergy Renovables SA | 1-Day EONIA - 1.75% | Monthly | MSCS | 12/01/23 | 10500 | EUR | 17 |
|  Grifols SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/23 | 74056 | EUR | 26440 |

---

 <br> 104 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Short<sup>d</sup>** (continued) | **Equity Contracts – Short<sup>d</sup>** (continued) | | | | | | |
|  Groupe SEB | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/30/23 | 217976 | EUR | $(27424) |
|  Groupe ADP | 1-Day EONIA - 0.30% | Monthly | MSCS | 11/27/23 | 32288 | EUR | 5 |
|  Groupe Bruxelles Lambert NV | Euro STR - 0.30% | Monthly | JPHQ | 7/12/23 | 219643 | EUR | (1550) |
|  Gruppo MutuiOnline SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 161301 | EUR | (20731) |
|  Gurit | Euro STR - 1.20% | Monthly | JPHQ | 7/17/23 | 125757 | CHF | (3694) |
|  GVS | Euro STR - 0.30% | Monthly | JPHQ | 7/13/23 | 24097 | EUR | 8444 |
|  The Gym Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 53205 | GBP | 26146 |
|  Halfords Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 10/11/23 | 71726 | GBP | (14039) |
|  Halma PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 10/27/23 | 98022 | GBP | 224 |
|  Hamborner REIT AG | Euro STR - 0.30% | Monthly | JPHQ | 9/27/23 | 75734 | EUR | 1827 |
|  Hannover Re | Euro STR - 0.30% | Monthly | JPHQ | 11/27/23 | 32586 | EUR | (293) |
|  Hannover Rueck SE | 1-Day EONIA - 0.35% | Monthly | GSCO | 3/14/25 | 243195 | EUR | (100682) |
|  Hansa Biopharma AB | 1-Week STIBOR - 1.00% | Monthly | SEBA | 7/17/23 | 375436 | SEK | (247) |
|  Heineken Holding NV | Euro STR - 0.35% | Monthly | JPHQ | 11/27/23 | 32198 | EUR | 160 |
|  Hektas | 1-Day FEDEF - 15.00% | Monthly | MSCS | 7/17/23 | 5828 |  | (202426) |
|  Helical PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 58658 | GBP | 8990 |
|  Helios Towers PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 196847 | GBP | 16589 |
|  HELLA GmbH & Co. KGaA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 165243 | EUR | (11008) |
|  Henkel AG & Co. KGaA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 43286 | EUR | (753) |
|  Hennes & Mauritz AB | 1-Week STIBOR - 0.40% | Monthly | GSCO | 3/14/25 | 2651823 | SEK | 71965 |
|  Henry Boot PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 40515 | GBP | 6000 |
|  Hera | Euro STR - 0.30% | Monthly | JPHQ | 11/27/23 | 84477 | EUR | (53) |
|  Hermes International | 1-Day SONIA - 0.40% | Monthly | MSCS | 9/07/23 | 69550 | EUR | (9472) |
|  Hexagon Composites ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 939694 | NOK | (4749) |
|  Hexagon Purus ASA | 1-Week NIBOR - 3.00% | Monthly | SEBA | 8/28/23 | 406589 | NOK | (1902) |
|  HIAG Immobilien Holding AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/23 | 45975 | CHF | (363) |
|  Hill & Smith Holdings PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/17/23 | 134749 | GBP | (16643) |
|  Hiscox Ltd. ORD | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 120985 | GBP | (20656) |
|  Hitachi Transport System Ltd. | 1-Day MUTSCALM - 0.40% | Monthly | MSCO | 9/22/23 | 2255347 | JPY | (213) |
|  HMM Co. Ltd. | 1-Day FEDEF - 3.50% | Monthly | MSCS | 8/10/23 | 252628 |  | (6852) |
|  HomeServe | 1-Day SONIA - 0.35% | Monthly | MSCO | 9/21/23 | 757302 | GBP | (1318) |
|  Horizonte Minerals PLC | 1-Day SONIA - 11.00% | Monthly | MSCS | 8/10/23 | 14204 | GBP | (1939) |
|  Hufvudstaden AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/12/23 | 1818676 | SEK | (31644) |
|  Huhtamaki OYJ | Euro STR - 0.28% | Monthly | SEBA | 7/13/23 | 179945 | EUR | 9350 |
|  Husqvarna AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/01/23 | 983833 | SEK | (21583) |
|  Hypoport SE | 1-Day SABOR - 0.75% | Monthly | JPHQ | 9/27/23 | 125222 | EUR | 13342 |
|  Hyprop Investments Ltd. | 1-Day SABOR - 2.00% | Monthly | MSCS | 7/17/23 | 1549554 | ZAR | 2175 |
|  Iberdrola ORD | 1-Day EONIA - 0.50% | Monthly | MSCO | 12/01/23 | 1115683 | EUR | (2853) |
|  Iberdrola SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 11/27/23 | 32316 | EUR | (78) |
|  Icade SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 116512 | EUR | 9133 |
|  Idorsia | Euro STR - 6.50% | Monthly | JPHQ | 7/17/23 | 170491 | CHF | 7447 |
|  Ilika PLC | 1-Day SONIA - 2.50% | Monthly | MSCS | 7/17/23 | 3147 | GBP | 1194 |
|  IMCD Group NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 43635 | EUR | (1818) |
|  IMI PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 10/26/23 | 61663 | GBP | (1184) |
|  Industrial Select Sector Index | 1-Day FEDEF - 0.12% | Monthly | MSCS | 8/22/23 | 352689 |  | (1088) |
|  Infrastrutture Wireless Italiane SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 164937 | EUR | (3469) |
|  InPost SA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 275704 | EUR | (11722) |
|  Instone Real Estate Group SE | Euro STR - 0.70% | Monthly | JPHQ | 8/21/23 | 144262 | EUR | (7045) |
|  IntegraFin Holdings PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 107710 | GBP | (23233) |
|  InterContinental Hotels Group | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/23 | 27901 | GBP | (194) |
|  Interparfums SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 104453 | EUR | (18435) |
|  Interroll Group | 1-Day SARON - 0.35% | Monthly | JPHQ | 10/26/23 | 118943 | CHF | (1589) |
|  Intertek Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/31/23 | 151977 | GBP | (3243) |
|  Intesa Sanpaolo SpA | Euro STR - 0.30% | Monthly | JPHQ | 10/13/23 | 178565 | EUR | 2306 |
|  Investor AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/14/23 | 3369451 | SEK | (37143) |

---

 <br> franklintempleton.com Semiannual Report 105

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Short<sup>d</sup>** (continued) | **Equity Contracts – Short<sup>d</sup>** (continued) | | | | | | |
|  INVISIO AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 1195552 | SEK | $(10729) |
|  IQE PLC | 1-Day SONIA - 1.25% | Monthly | MSCS | 7/17/23 | 152613 | GBP | (59091) |
|  Italian Wine Brands SpA | Euro STR - 1.30% | Monthly | JPHQ | 7/17/23 | 30638 | EUR | (1502) |
|  Italtile Ltd. | 1-Day SABOR - 0.63% | Monthly | MSCS | 8/08/23 | 258838 | ZAR | 691 |
|  ITV PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 109237 | GBP | (19297) |
|  James Halstead PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 37240 | GBP | 2086 |
|  JCDecaux SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 149201 | EUR | (14742) |
|  Jenoptik AG NA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 187821 | EUR | (17657) |
|  JM AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 2734026 | SEK | 8580 |
|  John Wood Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 173657 | GBP | 6531 |
|  Johnson Service Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 107926 | GBP | 6835 |
|  JTC PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 231977 | GBP | (64391) |
|  Jupiter Fund Management PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 143619 | GBP | (4231) |
|  Just Eat Takeaway.com NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 82446 | EUR | (2382) |
|  Juventus FC SpA | Euro STR - 3.20% | Monthly | JPHQ | 9/01/23 | 34285 | EUR | 854 |
|  Kahoot! ASA | 1-Week NIBOR - 3.50% | Monthly | SEBA | 7/17/23 | 1102442 | NOK | (8549) |
|  Kainos Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 85527 | GBP | (34331) |
|  Kambi Group PLC | 1-Week STIBOR - 0.75% | Monthly | SEBA | 10/11/23 | 922963 | SEK | (16690) |
|  Kardex | Euro STR - 0.35% | Monthly | JPHQ | 7/17/23 | 72018 | CHF | 5083 |
|  Karnov Group AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 540850 | SEK | 5183 |
|  KBC Groep NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 169673 | EUR | 3080 |
|  Kempower OYJ | Euro STR - 3.75% | Monthly | SEBA | 7/17/23 | 29546 | EUR | (27590) |
|  Kering SA | 1-Month EURIBOR -0.40% | Monthly | MSCS | 11/27/23 | 32445 | EUR | (1071) |
|  Kerry Group PLC | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 132409 | EUR | 9252 |
|  KGHM Polska Miedz SA | 1-Day FEDEF - 0.50% | Monthly | MSCS | 8/18/23 | 91758 |  | (38140) |
|  Kin + Carta PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 48920 | GBP | (16785) |
|  Kinnevik AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 1215209 | SEK | (9123) |
|  Kitron ASA | 1-Week NIBOR - 0.75% | Monthly | SEBA | 7/17/23 | 360490 | NOK | (7198) |
|  Kloeckner + Co SE NA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 317322 | EUR | (10824) |
|  Knorr-Bremse AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 182603 | EUR | (26486) |
|  Kojamo PLC | Euro STR - 0.28% | Monthly | SEBA | 7/14/23 | 284628 | EUR | 5205 |
|  Kone OYJ | Euro STR - 0.28% | Monthly | SEBA | 7/28/23 | 91546 | EUR | (20240) |
|  Koninklijke DSM NV | Euro STR - 0.30% | Monthly | JPHQ | 8/28/23 | 138879 | EUR | (2174) |
|  Koninklijke Philips NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 98354 | EUR | (8721) |
|  KWS SAAT SE & Co. KGaA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 10265 | EUR | (814) |
|  L F ORD | 1-Day FEDEF - 4.00% | Monthly | MSCO | 7/14/23 | 559924 |  | (67522) |
|  Lanxess AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 288898 | EUR | (7198) |
|  LEG Immobilien AG | Euro STR - 0.30% | Monthly | JPHQ | 8/21/23 | 118724 | EUR | 12283 |
|  Legrand France SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/09/23 | 83224 | EUR | 2288 |
|  LEM | Euro STR - 0.35% | Monthly | JPHQ | 7/17/23 | 186864 | CHF | (1935) |
|  Lenzing AG | Euro STR - 0.30% | Monthly | JPHQ | 7/14/23 | 245897 | EUR | 16292 |
|  LHC Group Inc. | 1-Day FEDEF - 0.35% | Monthly | MSCO | 10/25/23 | 553644 |  | 12240 |
|  Lifco | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/23 | 352058 | SEK | 9 |
|  Linea Directa Aseguradora SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/23 | 144595 | EUR | 16639 |
|  London Stock Exchange Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 124869 | GBP | (9659) |
|  L'Oreal SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/09/23 | 95159 | EUR | 469 |
|  Lotus Bakeries NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 223470 | EUR | (15751) |
|  LU-VE SpA | Euro STR - 0.30% | Monthly | JPHQ | 8/07/23 | 36744 | EUR | (4443) |
|  LVMH Moet Hennessy Louis Vuitton SE | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/03/23 | 33179 | EUR | (1532) |
|  Magnora ASA | 1-Week NIBOR - 7.00% | Monthly | SEBA | 7/17/23 | 292810 | NOK | (4664) |
|  Marel | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 17574 | EUR | (2114) |
|  Marlowe PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/01/23 | 84436 | GBP | 30466 |
|  Mayr-Melnhof Karton AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 260559 | EUR | (18972) |
|  mBank SA | 1-Day FEDEF - 0.50% | Monthly | MSCS | 7/14/23 | 193261 |  | (126588) |

---

 <br> 106 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Short<sup>d</sup>** (continued) | **Equity Contracts – Short<sup>d</sup>** (continued) | | | | | | |
|  McPhy Energy SA | 1-Day EONIA - 9.63% | Monthly | MSCS | 7/17/23 | 29555 | EUR | $(7567) |
|  Medacta Group SA | Euro STR - 0.35% | Monthly | JPHQ | 7/17/23 | 111815 | CHF | (7460) |
|  Medartis AG | 1-Day SARON - 0.85% | Monthly | JPHQ | 7/17/23 | 106590 | CHF | (6110) |
|  Medicover AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 9/08/23 | 851505 | SEK | (11916) |
|  Melia Hotels International | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/23 | 60789 | EUR | 5475 |
|  Meyer Burger AG | 1-Day SARON - 0.95% | Monthly | JPHQ | 7/14/23 | 240451 | CHF | (69639) |
|  Millennium | 1-Day FEDEF - 0.50% | Monthly | MSCS | 7/17/23 | 151384 |  | (71688) |
|  Mips AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 9/20/23 | 1993695 | SEK | (36162) |
|  MoneyGram International Inc. | 1-Day FEDEF - 0.35% | Monthly | MSCO | 2/06/23 | 534838 |  | (47055) |
|  Morgan Stanley MSPSDCPH Index | 1-Day FEDEF - 0.35% | Monthly | MSCO | 10/03/23 | 294846 |  | (62197) |
|  Morgan Stanley MSPSEGRL Index | 1-Day SONIA - 1.50% | Monthly | MSCO | 11/01/23 | 299232 | GBP | (5014) |
|  Morgan Stanley MSPSENTH Index | 1-Day SONIA - 0.45% | Monthly | MSCO | 11/01/23 | 294418 | GBP | (9381) |
|  Morgan Stanley MSPSGDXJ Index | 1-Day FEDEF - 2.05% | Monthly | MSCO | 6/19/23 | 639740 |  | 8111 |
|  Morgan Stanley MSPSKRE Index | 1-Day FEDEF - 0.35% | Monthly | MSCO | 9/21/23 | 460874 |  | (9863) |
|  Morgan Stanley MSPSSCN Index | 1-Day DISC - 0.35% | Monthly | MSCO | 6/08/23 | 279980 | CAD | 9916 |
|  Morgan Stanley MSPSSPCH Index | 1-Day FEDEF - 1.70% | Monthly | MSCO | 6/23/23 | 172725 |  | (10311) |
|  Morgan Stanley MSPSXLB Index | 1-Day FEDEF - 0.35% | Monthly | MSCO | 9/21/23 | 46237 |  | (2370) |
|  Morgan Stanley MSPSXOP Index | 1-Day FEDEF - 0.45% | Monthly | MSCO | 11/27/23 | 439435 |  | 4793 |
|  Mr Price Group Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 8/30/23 | 1908349 | ZAR | 11816 |
|  Musti Group PLC | Euro STR - 0.28% | Monthly | SEBA | 7/12/23 | 45817 | EUR | 7173 |
|  Mycronic AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 835337 | SEK | (31930) |
|  Nagarro SE | Euro STR - 1.95% | Monthly | JPHQ | 8/21/23 | 113730 | EUR | (8628) |
|  Naked Wines PLC | 1-Day SONIA - 2.49% | Monthly | MSCS | 7/17/23 | 40417 | GBP | 14892 |
|  National Grid PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 129930 | GBP | 6936 |
|  Naturgy Energy Group SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 11/27/23 | 26889 | EUR | 145 |
|  NCC Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/13/23 | 95307 | GBP | (13495) |
|  Nel ASA | 1-Week NIBOR - 7.00% | Monthly | SEBA | 7/17/23 | 224571 | NOK | (2757) |
|  Neoen | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 121838 | EUR | 2302 |
|  Neste Corp. | Euro STR - 0.28% | Monthly | SEBA | 7/17/23 | 166520 | EUR | (23972) |
|  Nestle SA | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/27/23 | 31674 | CHF | 112 |
|  Netcompany | 1-Week CIBOR - 0.28% | Monthly | SEBA | 9/14/23 | 402234 | DKK | (14176) |
|  Nexi SpA | Euro STR - 0.30% | Monthly | JPHQ | 10/13/23 | 153693 | EUR | 10637 |
|  Nibe Industrier AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 8/11/23 | 967135 | SEK | (2814) |
|  Nokian Tyres PLC | Euro STR - 0.28% | Monthly | SEBA | 8/23/23 | 85906 | EUR | (965) |
|  Nolato AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 9/26/23 | 1057546 | SEK | (12864) |
|  Nordex SE | Euro STR - 0.95% | Monthly | JPHQ | 8/21/23 | 160634 | EUR | (27827) |
|  Nordnet AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 1214141 | SEK | (23716) |
|  Novartis | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/27/23 | 31673 | CHF | (296) |
|  NX Filtration NV | Euro STR - 2.65% | Monthly | JPHQ | 8/07/23 | 28983 | EUR | (4124) |
|  Obrascon Huarte Lain SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 9/01/23 | 87133 | EUR | 17054 |
|  Ocado Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 135851 | GBP | (25556) |
|  Oesterreichische Post AG | Euro STR - 3.80% | Monthly | JPHQ | 8/23/23 | 123949 | EUR | (5484) |
|  Orange | 1-Day EONIA - 0.30% | Monthly | MSCS | 11/27/23 | 32232 | EUR | 345 |
|  Orion Corp. | Euro STR - 0.28% | Monthly | SEBA | 7/17/23 | 41935 | EUR | (3135) |
|  Orpea SA | 1-Month EURIBOR - 0.40% | Monthly | MSCS | 8/24/23 | 25964 | EUR | 18963 |
|  Oxford BioMedica PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/26/23 | 73608 | GBP | (7314) |
|  Palfinger AG | Euro STR - 0.30% | Monthly | JPHQ | 7/12/23 | 110250 | EUR | (2783) |
|  Pan American Silver Corp. | 1-Day FEDEF - 0.35% | Monthly | MSCO | 11/29/23 | 129303 |  | (11983) |
|  PayPoint PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 69057 | GBP | 6369 |
|  Pennon Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 265440 | GBP | 11890 |
|  Pepkor | 1-Day SABOR - 0.50% | Monthly | MSCS | 10/10/23 | 3075016 | ZAR | (8371) |
|  Pernod Ricard | 1-Day EONIA - 0.30% | Monthly | MSCS | 11/27/23 | 31813 | EUR | (124) |
|  Persimmon PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/18/23 | 181218 | GBP | 23717 |
|  Petrofac Ltd. | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/01/23 | 211306 | GBP | 64303 |
|  Philadelphia SE Utility Index | 1-Day FEDEF - 0.05% | Monthly | MSCO | 8/22/23 | 3763735 |  | (169393) |
|  Phoenix Group Holdings PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 209299 | GBP | (2192) |

---

 <br> franklintempleton.com Semiannual Report 107

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Short<sup>d</sup>** (continued) | **Equity Contracts – Short<sup>d</sup>** (continued) | | | | | | |
|  Picton Property Income Ltd. | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/24/23 | 119784 | GBP | $(1853) |
|  PNE AG | Euro STR - 0.70% | Monthly | JPHQ | 7/13/23 | 260883 | EUR | (23472) |
|  Polar Capital Holdings PLC | 1-Day SONIA - 0.77% | Monthly | MSCS | 7/17/23 | 116315 | GBP | (15665) |
|  Polypeptide | 1-Day SARON - 0.35% | Monthly | JPHQ | 9/18/23 | 127944 | CHF | (29522) |
|  PostNL | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 115037 | EUR | (1119) |
|  PowerCell Sweden AB | 1-Week STIBOR -1.00% | Monthly | SEBA | 7/17/23 | 435456 | SEK | 6238 |
|  PRS REIT PLC (The) | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 17895 | GBP | 1435 |
|  Prudential PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/14/23 | 187632 | GBP | (3746) |
|  PureTech Health PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 58512 | GBP | (35539) |
|  PZ Cussons PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 65333 | GBP | (1992) |
|  RAI Way SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/31/23 | 39339 | EUR | (2479) |
|  Raiffeisen Bank International | Euro STR - 0.30% | Monthly | JPHQ | 11/21/23 | 16902 | EUR | (331) |
|  Raisio PLC Vaihto-osake | Euro STR - 0.28% | Monthly | SEBA | 7/17/23 | 25122 | EUR | (1780) |
|  Range Resources Corp. | 1-Day FEDEF - 0.35% | Monthly | MSCO | 9/08/23 | 91971 |  | (17173) |
|  Rathbones Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/31/23 | 167061 | GBP | (39413) |
|  Re:NewCell AB | 1-Week STIBOR - 1.75% | Monthly | SEBA | 7/17/23 | 841740 | SEK | 28455 |
|  Reckitt Benckiser Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 73024 | GBP | 4183 |
|  Recordati SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/26/23 | 158503 | EUR | (8026) |
|  Recticel | Euro STR - 0.30% | Monthly | JPHQ | 11/21/23 | 70553 | EUR | (536) |
|  RELX PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 73142 | GBP | (301) |
|  RELX PLC | 1-Day SONIA - 0.30% | Monthly | JPHQ | 11/27/23 | 32321 | EUR | 62 |
|  Rentokil Initial PLC | 1-Day FEDEF - 0.65% | Monthly | MSCS | 11/27/23 | 27850 | GBP | 97 |
|  Restore PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/18/23 | 77135 | GBP | 24800 |
|  RHI Magnesita NV | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 181926 | GBP | (38141) |
|  Rieter | Euro STR - 0.35% | Monthly | JPHQ | 7/24/23 | 230014 | CHF | 1523 |
|  Ringkjoebing Landbobank A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 1017697 | DKK | (26967) |
|  Robertet | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 40635 | EUR | 2747 |
|  Rotork PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 86821 | GBP | (27494) |
|  Royal Unibrew | 1-Week CIBOR - 0.28% | Monthly | SEBA | 11/27/23 | 752743 | DKK | 721 |
|  RVRC Holding | 1-Week STIBOR - 0.28% | Monthly | SEBA | 10/11/23 | 810917 | SEK | (22692) |
|  S4 Capital PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/24/23 | 156914 | GBP | (80508) |
|  Sabaf SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 45754 | EUR | 1175 |
|  Sabre Insurance Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 54332 | GBP | 1968 |
|  Sacyr SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/23 | 266879 | EUR | (56746) |
|  Saga PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 83370 | GBP | 37532 |
|  Sage Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/23 | 27804 | GBP | 450 |
|  Salcef Group SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 157023 | EUR | (10598) |
|  Salmon Evolution ASA | 1-Week NIBOR - 8.50% | Monthly | SEBA | 7/12/23 | 1398891 | NOK | 11103 |
|  Salzgitter AG | Euro STR - 0.30% | Monthly | JPHQ | 11/01/23 | 93432 | EUR | (8437) |
|  Sampo PLC | Euro STR - 0.28% | Monthly | SEBA | 7/17/23 | 32298 | EUR | (281) |
|  Samsung SDI Co. Ltd. | 1-Day FEDEF - 0.50% | Monthly | MSCO | 7/11/23 | 1030529 |  | (8134) |
|  Sandvik AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/23 | 352537 | SEK | 472 |
|  Sanlam Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 7/17/23 | 1377083 | ZAR | (3431) |
|  Sanoma Corp. | Euro STR - 0.28% | Monthly | SEBA | 7/17/23 | 95537 | EUR | 20501 |
|  Santam Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 7/17/23 | 885215 | ZAR | (3624) |
|  Santander Bank Polska SA | 1-Day FEDEF - 0.50% | Monthly | MSCS | 7/17/23 | 91315 |  | (29626) |
|  SAP SE | Euro STR - 0.30% | Monthly | JPHQ | 11/27/23 | 32238 | EUR | 178 |
|  SBM Offshore NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 153124 | EUR | (10034) |
|  Schibsted ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 2325449 | NOK | (42604) |
|  Schoeller-Bleckmann Oilfield Equipment AG | Euro STR - 0.30% | Monthly | JPHQ | 7/13/23 | 167422 | EUR | (7556) |
|  Schouw & Co. A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 1234867 | DKK | (11269) |
|  Schweiter Technologies AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/23 | 141303 | CHF | (12103) |
|  Sdiptech AB | 1-Week STIBOR - 1.00% | Monthly | SEBA | 7/17/23 | 1399354 | SEK | (9558) |
|  secunet Security Networks AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 155282 | EUR | (14777) |
|  Seeing Machines Ltd. | 1-Day SONIA - 5.75% | Monthly | MSCS | 8/04/23 | 38502 | GBP | (8201) |

---

 <br> 108 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Short<sup>d</sup>** (continued) | **Equity Contracts – Short<sup>d</sup>** (continued) | | | | | | |
|  Segro PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 53777 | GBP | $13433 |
|  Severn Trent PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/23 | 27823 | GBP | 787 |
|  SFC Energy AG | Euro STR - 7.00% | Monthly | JPHQ | 7/17/23 | 18854 | EUR | (4713) |
|  SGS SA | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/27/23 | 28964 | CHF | 384 |
|  Shoprite Holdings Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 7/17/23 | 2223319 | ZAR | (31499) |
|  Siemens Healthineers AG | Euro STR - 0.30% | Monthly | JPHQ | 8/21/23 | 120939 | EUR | (8011) |
|  SIG Group AG | Euro STR - 0.35% | Monthly | JPHQ | 7/17/23 | 206752 | CHF | (2444) |
|  Signify Health | 1-Day FEDEF - 0.35% | Monthly | MSCO | 10/25/23 | 262929 |  | 5361 |
|  Sika | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/08/23 | 101006 | CHF | 5310 |
|  SKAN AG | Euro STR - 0.35% | Monthly | JPHQ | 7/17/23 | 156074 | CHF | (22934) |
|  Smart Metering Systems PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/12/23 | 228837 | GBP | 21052 |
|  Smith & Nephew PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 101841 | GBP | 4544 |
|  Smiths Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 27776 | GBP | 399 |
|  Sodexo | 1-Day EONIA - 0.30% | Monthly | MSCS | 11/27/23 | 32452 | EUR | (293) |
|  Software AG | Euro STR - 0.30% | Monthly | JPHQ | 9/22/23 | 132153 | EUR | (11792) |
|  SoftwareONE | Euro STR - 0.35% | Monthly | JPHQ | 7/13/23 | 18618 | CHF | (4511) |
|  Soitec SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/11/23 | 55457 | EUR | (7305) |
|  Solaria Energia y Medio Ambiente SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/23 | 108328 | EUR | 17586 |
|  SolGold PLC | 1-Day SONIA - 0.56% | Monthly | MSCS | 7/17/23 | 94077 | GBP | 22852 |
|  Soltec Power Holdings SA | 1-Day EONIA - 0.73% | Monthly | MSCS | 7/17/23 | 142391 | EUR | (7549) |
|  SpareBank 1 SR Bank ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/20/23 | 660250 | NOK | (5912) |
|  Sparebank Nord-Norge | 1-Week NIBOR - 1.50% | Monthly | SEBA | 9/20/23 | 595025 | NOK | (4704) |
|  Sparebank Nord-Norge | 1-Week NIBOR - 1.50% | Monthly | SEBA | 10/23/23 | 967567 | NOK | (760) |
|  Spectris PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/17/23 | 122030 | GBP | (16359) |
|  Spinnova OYJ | Euro STR - 10.50% | Monthly | SEBA | 8/08/23 | 31719 | EUR | (2163) |
|  Spirax-Sarco Engineering PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/23 | 27802 | GBP | 426 |
|  SSE PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/23 | 27843 | GBP | 81 |
|  St Galler Kantonalbank AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/06/23 | 58224 | CHF | (2007) |
|  Storytel AB | 1-Week STIBOR - 7.50% | Monthly | SEBA | 7/17/23 | 291148 | SEK | 2894 |
|  Straumann Group | 1-Day SARON - 0.35% | Monthly | JPHQ | 10/18/23 | 163860 | CHF | (10131) |
|  Strix Group PLC | 1-Day SONIA - 2.00% | Monthly | MSCS | 7/17/23 | 96577 | GBP | 66044 |
|  Super Group Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 7/19/23 | 1968706 | ZAR | 2321 |
|  Supermarket Income REIT | 1-Day SONIA - 0.28% | Monthly | MSCS | 9/15/23 | 191998 | GBP | 10761 |
|  Svenska Cellulosa AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 1846158 | SEK | 5745 |
|  Swedencare AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/13/23 | 1817364 | SEK | 68837 |
|  Swisscom AG | 1-Day SARON - 0.35% | Monthly | GSCO | 3/14/25 | 312708 | CHF | (14325) |
|  Sword Group SE | 1-Day EONIA - 4.00% | Monthly | MSCS | 7/17/23 | 61946 | EUR | (954) |
|  Symrise AG | Euro STR - 0.30% | Monthly | JPHQ | 9/27/23 | 105732 | EUR | (5249) |
|  TAG Immobilien AG | Euro STR - 0.30% | Monthly | JPHQ | 8/16/23 | 48828 | EUR | 4946 |
|  Talenom OYJ | Euro STR - 2.50% | Monthly | SEBA | 7/17/23 | 55715 | EUR | 4507 |
|  Talgo SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/23 | 123899 | EUR | (1674) |
|  Tamburi | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 223044 | EUR | (8828) |
|  Tate & Lyle PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 66035 | GBP | 4163 |
|  Technogym SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 138322 | EUR | (7125) |
|  Technoprobe | Euro STR - 0.30% | Monthly | JPHQ | 10/16/23 | 85015 | EUR | (6138) |
|  Tecnicas Reunidas SA | 1-Day EONIA - 3.13% | Monthly | MSCS | 7/12/23 | 50785 | EUR | (15073) |
|  Tegna Inc. | 1-Day FEDEF - 0.35% | Monthly | MSCO | 9/21/23 | 521593 |  | 47327 |
|  Tele2 AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/23 | 351868 | SEK | 577 |
|  Telenor ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 11/27/23 | 333939 | NOK | 1245 |
|  Tenaris SA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 265980 | EUR | (4375) |
|  Terna SpA | Euro STR - 0.30% | Monthly | JPHQ | 11/27/23 | 32290 | EUR | (103) |
|  Thermador Groupe SA | 1-Day EONIA - 2.25% | Monthly | MSCS | 8/16/23 | 33742 | EUR | (5760) |
|  Thule Group AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 3553629 | SEK | (5012) |
|  Tikehau Capital SCA | 1-Day EONIA - 4.00% | Monthly | MSCS | 7/17/23 | 16432 | EUR | (2949) |
|  Tinexta SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 303021 | EUR | (15315) |
|  Topdanmark A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/26/23 | 1417713 | DKK | (8844) |

---

 <br> franklintempleton.com Semiannual Report 109

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | **Total Return Swap Contracts** (continued) | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional<br>Value\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** (continued) |  | | | | | | |
| **Equity Contracts – Short<sup>d</sup>** (continued) | **Equity Contracts – Short<sup>d</sup>** (continued) | | | | | | |
|  Tower Semiconductor Ltd. | 1-Day FEDEF - 0.35% | Monthly | MSCO | 7/07/23 | 421136 |  | $11465 |
|  Transaction Capital Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 7/17/23 | 2494444 | ZAR | (10372) |
|  Traton SE | Euro STR - 0.80% | Monthly | JPHQ | 7/17/23 | 59945 | EUR | (3917) |
|  Treatt PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 162084 | GBP | 13443 |
|  Tritax EuroBox PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 99799 | GBP | 31863 |
|  Troax Group AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 8/02/23 | 355852 | SEK | (7529) |
|  Trustpilot Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 179095 | GBP | (79625) |
|  Tryg A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/13/23 | 2422597 | DKK | (13060) |
|  Tubacex SA | 1-Day EONIA - 1.63% | Monthly | MSCS | 7/17/23 | 85136 | EUR | 323 |
|  UCB | Euro STR - 0.30% | Monthly | JPHQ | 11/21/23 | 83512 | EUR | (985) |
|  Unilever | 1-Day SONIA - 0.30% | Monthly | MSCS | 10/16/23 | 114291 | GBP | (8221) |
|  Unilever | 1-Day SONIA - 0.30% | Monthly | JPHQ | 11/27/23 | 32356 | EUR | (97) |
|  UnipolSai | Euro STR - 0.30% | Monthly | JPHQ | 11/27/23 | 32257 | EUR | (398) |
|  United Utilities | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/23 | 27758 | GBP | 829 |
|  UPM Kymmene Corp. | Euro STR - 0.28% | Monthly | SEBA | 7/17/23 | 231980 | EUR | (41589) |
|  Urban Logistics REIT PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 201032 | GBP | 23350 |
|  Vallourec | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 136289 | EUR | (30506) |
|  Valmet OYJ | Euro STR - 0.28% | Monthly | SEBA | 11/22/23 | 68034 | EUR | 1407 |
|  Vantage Towers AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 137420 | EUR | (12974) |
|  Veolia Environnement SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/30/23 | 33313 | EUR | (4432) |
|  Vestas Wind Systems A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/12/23 | 1372789 | DKK | (16239) |
|  Vestel | 1-Day FEDEF - 7.63% | Monthly | MSCS | 9/08/23 | 88881 |  | (66185) |
|  VGP NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 110325 | EUR | (2691) |
|  Viaplay Group AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 2991217 | SEK | 29117 |
|  Vicat SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/08/23 | 122072 | EUR | 6804 |
|  Victrex PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/23 | 85237 | GBP | 895 |
|  Vidrala SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 9/29/23 | 168979 | EUR | (55956) |
|  Vinci | 1-Day EONIA - 0.30% | Monthly | MSCS | 11/27/23 | 32261 | EUR | (8) |
|  Vodacom Group Ltd. | 1-Day SABOR - 0.75% | Monthly | MSCS | 7/13/23 | 643996 | ZAR | 1686 |
|  Volex PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/01/23 | 86320 | GBP | 718 |
|  Voltalia SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/23 | 124675 | EUR | 12851 |
|  Volvo Group (The) | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/23 | 352826 | SEK | 477 |
|  Volvo Group (The) | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/23 | 353056 | SEK | 41 |
|  Vonovia SE | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 127262 | EUR | (4145) |
|  Vopak | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 81822 | EUR | (27853) |
|  Waga Energy SA | 1-Day EONIA - 0.75% | Monthly | MSCS | 7/17/23 | 40953 | EUR | (521) |
|  Warehouse REIT PLC | 1-Day SONIA - 1.38% | Monthly | MSCS | 7/17/23 | 111666 | GBP | 29770 |
|  Westwing Group SE | Euro STR - 2.55% | Monthly | JPHQ | 7/17/23 | 35269 | EUR | (6091) |
|  Wiit SpA | Euro STR - 0.70% | Monthly | JPHQ | 7/31/23 | 107747 | EUR | (6615) |
|  Worldline SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/09/23 | 55831 | EUR | (4001) |
|  XP Power Ltd. | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/31/23 | 115552 | GBP | (7730) |
|  Xvivo Perfusion AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/23 | 505387 | SEK | 6225 |
|  Ypsomed Holding AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/23 | 158530 | CHF | (32088) |
|  Zignago Vetro SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/23 | 167193 | EUR | (8826) |
|  |  |  |  |  |  |  | (3474071) |
| &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 |  |  | $(1558142) |

---

\*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 inputs. See Note 14 regarding fair value investments.

<sup>c</sup>See Note 9 regarding investments in Russian securities.

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

See Note 12 regarding other derivative information.

See Abbreviations on page 133.

 <br> 110 Semiannual Report \| The accompanying notes are an integral part of these financial statements. franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Assets and Liabilities

November 30, 2022 (unaudited)

**Franklin K2 Alternative Strategies Fund** 

---

| | |
|:---|:---|
|  Assets: |  |
| &nbsp;&nbsp;&nbsp; Investments in securities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost – Unaffiliated issuers | $908088966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost – Non-controlled affiliates (Note 3f) | 2661000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost – Unaffiliated repurchase agreements | 646885 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Value – Unaffiliated issuers<sup>†</sup> | $938285949 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Value – Non-controlled affiliates (Note 3f) | 2661000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Value – Unaffiliated repurchase agreements | 646885 |
| &nbsp;&nbsp;&nbsp; Cash | 43234577 |
| &nbsp;&nbsp;&nbsp; Restricted cash for OTC derivatives (Note 1e) | 2010000 |
| &nbsp;&nbsp;&nbsp; Foreign currency, at value (cost $12,736,187) | 12956779 |
| &nbsp;&nbsp;&nbsp; Receivables: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment securities sold | 16091610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital shares sold | 10725969 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 5324438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits with brokers for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exchange traded options written | 100735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold short | 216244154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OTC derivative contracts | 43174527 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | 13751224 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Centrally cleared swap contracts | 2865106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from brokers | 6275298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on centrally cleared swap contracts | 126640 |
| &nbsp;&nbsp;&nbsp; OTC swap contracts (upfront payments $3,841,608) | 3303373 |
| &nbsp;&nbsp;&nbsp; Unrealized appreciation on OTC forward exchange contracts | 9717341 |
| &nbsp;&nbsp;&nbsp; Unrealized appreciation on OTC swap contracts | 7753713 |
| &nbsp;&nbsp;&nbsp; Other assets | 9237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | 1335258555 |
|  Liabilities: |  |
| &nbsp;&nbsp;&nbsp; Payables: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment securities purchased | 27206508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital shares redeemed | 18859178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 1465398 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution fees | 35115 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 9761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer agent fees | 318141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits from brokers for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OTC derivative contracts | 2010000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to brokers | 16018694 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on futures contracts | 350451 |
| &nbsp;&nbsp;&nbsp; OTC swap contracts (upfront receipts $518,010) | 488408 |
| &nbsp;&nbsp;&nbsp; Options written, at value (premiums received $1,956,522) | 2343346 |
| &nbsp;&nbsp;&nbsp; Securities sold short, at value (proceeds $242,775,057) | 223678274 |
| &nbsp;&nbsp;&nbsp; Payable upon return of securities loaned (Note 1h) | 3307885 |
| &nbsp;&nbsp;&nbsp; Unrealized depreciation on OTC forward exchange contracts | 12374543 |
| &nbsp;&nbsp;&nbsp; Unrealized depreciation on OTC swap contracts | 9772509 |
| &nbsp;&nbsp;&nbsp; Unrealized depreciation on unfunded loan commitments (Note 11) | 113847 |
| &nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities | 349621 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 318701679 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $1016556876 |
|  Net assets consist of: |  |
| &nbsp;&nbsp;&nbsp; Paid-in capital | $1014379770 |
| &nbsp;&nbsp;&nbsp; Total distributable earnings (loss) | 2177106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $1016556876 |
| &nbsp;&nbsp;&nbsp; <sup>†</sup>Includes securities loaned | $6642917 |

---

 <br> franklintempleton.com The accompanying notes are an integral part of these financial statements. \| Semiannual Report 111

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Assets and Liabilities (continued)

November 30, 2022 (unaudited)

**Franklin K2 Alternative Strategies Fund** 

---

| | |
|:---|:---|
| **Class A:** |  |
| &nbsp;&nbsp;&nbsp; Net assets, at value | $87351529 |
| &nbsp;&nbsp;&nbsp; Shares outstanding | 7939260 |
| &nbsp;&nbsp;&nbsp; Net asset value per share<sup>a</sup> | $11.00 |
| &nbsp;&nbsp;&nbsp; Maximum offering price per share (net asset value per share ÷ 94.50%) | $11.64 |
| **Class C:** |  |
| &nbsp;&nbsp;&nbsp; Net assets, at value | $20518012 |
| &nbsp;&nbsp;&nbsp; Shares outstanding | 1934774 |
| &nbsp;&nbsp;&nbsp; Net asset value and maximum offering price per share<sup>a</sup> | $10.60 |
| **Class R:** |  |
| &nbsp;&nbsp;&nbsp; Net assets, at value | $376404 |
| &nbsp;&nbsp;&nbsp; Shares outstanding | 34361 |
| &nbsp;&nbsp;&nbsp; Net asset value and maximum offering price per share | $10.95 |
| **Class R6:** |  |
| &nbsp;&nbsp;&nbsp; Net assets, at value | $51283004 |
| &nbsp;&nbsp;&nbsp; Shares outstanding | 4611248 |
| &nbsp;&nbsp;&nbsp; Net asset value and maximum offering price per share | $11.12 |
| **Advisor Class:** |  |
| &nbsp;&nbsp;&nbsp; Net assets, at value | $857027927 |
| &nbsp;&nbsp;&nbsp; Shares outstanding | 77239367 |
| &nbsp;&nbsp;&nbsp; Net asset value and maximum offering price per share | $11.10 |

---

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

 <br> 112 Semiannual Report \| The accompanying notes are an integral part of these consolidated financial statements. franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Operations

for the six months ended November 30, 2022 (unaudited)

**Franklin K2 Alternative Strategies Fund** 

---

| | |
|:---|:---|
|  Investment income: |  |
| &nbsp;&nbsp;&nbsp; Dividends: (net of foreign taxes)\* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | $4304346 |
| &nbsp;&nbsp;&nbsp; Interest: (net of foreign taxes)~ |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | 14104355 |
| &nbsp;&nbsp;&nbsp; Income from securities loaned: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities (net of fees and rebates) | 54996 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlled affiliates (Note 3f) | 41997 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 18505694 |
|  Expenses: |  |
| &nbsp;&nbsp;&nbsp; Management fees (Note 3a) | 10877984 |
| &nbsp;&nbsp;&nbsp; Distribution fees: (Note 3c) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | 113512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C | 112101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R | 1290 |
| &nbsp;&nbsp;&nbsp; Transfer agent fees: (Note 3e) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | 47451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C | 11705 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R | 267 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R6 | 16487 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | 513003 |
| &nbsp;&nbsp;&nbsp; Custodian fees (Note 4) . | 136919 |
| &nbsp;&nbsp;&nbsp; Reports to shareholders fees | 39621 |
| &nbsp;&nbsp;&nbsp; Registration and filing fees | 63102 |
| &nbsp;&nbsp;&nbsp; Professional fees | 191947 |
| &nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 175316 |
| &nbsp;&nbsp;&nbsp; Dividends and interest on securities sold short | 2352538 |
| &nbsp;&nbsp;&nbsp; Other | 74087 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 14727330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expense reductions (Note 4) | (18432) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses waived/paid by affiliates (Note 3f and 3g) | (940912) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 13767986 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 4737708 |
|  Realized and unrealized gains (losses): |  |
| &nbsp;&nbsp;&nbsp; Net realized gain (loss) from: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | (42599299) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | 1165772 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (700024) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward exchange contracts | 11366285 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | 84662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold short | 12389381 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | 2312576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | (15980647) |
| &nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) on: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | 18461362 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | (497949) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Translation of other assets and liabilities denominated in foreign currencies | (490976) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward exchange contracts | (4552264) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (4073618) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold short | (10079117) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | (4597168) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) | (5829730) |
| &nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (21810377) |
| &nbsp;&nbsp;&nbsp; Net increase (decrease) in net assets resulting from operations | $(17072669) |
|  \* Foreign taxes withheld on dividends | $69062 |
|  ~ Foreign taxes withheld on interest | $6992 |

---

 <br> franklintempleton.com The accompanying notes are an integral part of these consolidated financial statements. \| Semiannual Report 113

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Changes in Net Assets

**Franklin K2 Alternative Strategies Fund** 

---

| | | |
|:---|:---|:---|
| | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **Year Ended<br>May 31, 2022** |
|  Increase (decrease) in net assets: |  |  |
| &nbsp;&nbsp;&nbsp; Operations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $4737708 | $(3815892) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | (15980647) | 41368472 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (5829730) | (123367201) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) in net assets resulting from operations | (17072669) | (85814621) |
| &nbsp;&nbsp;&nbsp; Distributions to shareholders: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A |  | (4718508) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C |  | (1181591) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R |  | (56639) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R6 |  | (2581950) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advisor Class |  | (58285888) |
| &nbsp;&nbsp;&nbsp; Total distributions to shareholders |  | (66824576) |
| &nbsp;&nbsp;&nbsp; Capital share transactions: (Note 2) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (5884176) | 3686486 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C | (3537524) | (3895079) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R | (425036) | 115566 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R6 | 4080604 | 26424523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | (227719101) | 79327812 |
| &nbsp;&nbsp;&nbsp; Total capital share transactions | (233485233) | 105659308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) in net assets | (250557902) | (46979889) |
|  Net assets: |  |  |
| &nbsp;&nbsp;&nbsp; Beginning of period | 1267114778 | 1314094667 |
| &nbsp;&nbsp;&nbsp; End of period | $1016556876 | $1267114778 |

---

 <br> 114 Semiannual Report \| The accompanying notes are an integral part of these consolidated financial statements. franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Notes to Consolidated Financial Statements (unaudited)

**Franklin 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 two separate funds and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). Franklin K2 Alternative Strategies Fund (Fund) is included in this report. 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 17, 2023, Franklin K2 Alternative Strategies Fund was renamed K2 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. Investments in repurchase agreements are valued at cost, which approximates fair value.

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, book values, and other relevant information for the

 <br> franklintempleton.com Semiannual Report 115

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

**1. Organization and Significant Accounting Policies** (continued)

**a. Financial Instrument Valuation** (continued)

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 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 Funds' portfolio securities to the latest indications of fair value at 4 p.m. Eastern time. At November 30, 2022, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs 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.

**c. Joint Repurchase Agreement** 

The Fund enters into a joint repurchase agreement whereby its uninvested cash balance is deposited into a joint cash account with other funds managed by the investment manager or an affiliate of the investment manager and is used to invest in one or more repurchase agreements. The value and face amount of the joint repurchase agreement are allocated to the funds based on their pro-rata interest. A repurchase agreement is accounted for as a loan by the Fund to the seller, collateralized by securities which are delivered to the Fund's custodian. The fair value, including accrued interest, of the initial collateralization is required to be at least 102% of the dollar amount invested by the funds, with the value of the underlying securities marked to market daily to maintain coverage of at least 100%. Repurchase agreements are subject to the terms of Master Repurchase Agreements (MRAs) with approved counterparties (sellers). The MRAs contain various provisions, including but not limited to events of default and

 <br> 116 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

maintenance of collateral for repurchase agreements. In the event of default by either the seller or the Fund, certain MRAs may permit the non-defaulting party to net and close-out all transactions, if any, traded under such agreements. The Fund may sell securities it holds as collateral and apply the proceeds towards the repurchase price and any other amounts owed by the seller to the Fund in the event of default by the seller. This could involve costs or delays in addition to a loss on the securities if their value falls below the repurchase price owed by the seller. The joint repurchase agreement held by the Fund at period end, as indicated in the Consolidated Schedule of Investments, had been entered into on November 30, 2022.

**d. Securities Purchased on a Delayed Delivery Basis** 

The Fund purchases securities on a 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.

**e. 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.

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 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

 <br> franklintempleton.com Semiannual Report 117

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

**1. Organization and Significant Accounting Policies** (continued)

**e. Derivative Financial Instruments** (continued)

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.

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.

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.

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.

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 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.

 <br> 118 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

The Fund entered into OTC total return swap contracts primarily to manage and/or gain exposure to 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.

The Fund purchased or wrote exchange traded and/or OTC option contracts primarily to manage and/or gain exposure to equity price, interest rate and foreign exchange rate 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.

See Note 12 regarding other derivative information.

**f. Restricted Cash** 

At November 30, 2022, the Fund held restricted cash in connection with investments in certain derivative securities. Restricted cash is held in a segregated account with the Fund's custodian and/or counterparty broker and is reflected in the Consolidated Statement of Assets and Liabilities.

**g. 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 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.

**h. 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 $3,394,253 in U.S. Government and Agency Securities as collateral. These securities received as collateral are held in segregated accounts with the Fund's custodian. The Fund cannot repledge or resell these securities received 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 and rebates 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.

 <br> franklintempleton.com Semiannual Report 119

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

**1. Organization and Significant Accounting Policies** (continued)

**i. 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 investments consistent with the investment objective of the Fund. At November 30, 2022, 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, 2022, the net assets of the K2 Subsidiary were $26,892,373 representing 2.6% of the Fund's consolidated net assets. The Fund's investment in the K2 Subsidiary is limited to 25% of consolidated assets.

**j. 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 London InterBank Offered Rate (LIBOR). Senior secured corporate loans often require prepayment of principal from excess cash flows or 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.

**k. 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, 2022, 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.

**l. 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 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. 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.

 <br> 120 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each Fund to the combined net assets of the Trust or based on the ratio of number of shareholders of each Fund to the combined number of shareholders of the Trust. Fund specific expenses are charged directly to the Fund that incurred the expense.

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.

**m. 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.

**n. 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, 2022, 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, 2022** | **Six Months Ended<br>November 30, 2022** | **Year Ended<br>May 31, 2022** | **Year Ended<br>May 31, 2022** |
| | **Shares** | **Amount** | **Shares** | **Amount** |
| **Class A Shares:** |  |  |  |  |
|  Shares sold<sup>a</sup> | 527493 | $5806233 | 1769519 | $21332819 |
|  Shares issued in reinvestment of distributions |  |  | 360033 | 4313199 |
|  Shares redeemed | (1064535) | (11690409) | (1847856) | (21959532) |
|  Net increase (decrease) | (537042) | $(5884176) | 281696 | $3686486 |
| **Class C Shares:** |  |  |  |  |
|  Shares sold | 45451 | $482683 | 480168 | $5612560 |
|  Shares issued in reinvestment of distributions |  |  | 86857 | 1009276 |
|  Shares redeemed<sup>a</sup> | (378778) | (4020207) | (904193) | (10516915) |
|  Net increase (decrease) | (333327) | $(3537524) | (337168) | $(3895079) |
| **Class R Shares:** |  |  |  |  |
|  Shares sold | 233 | $2547 | 44316 | $551233 |
|  Shares issued in reinvestment of distributions |  |  | 4740 | 56639 |
|  Shares redeemed | (38751) | (427583) | (43693) | (492306) |
|  Net increase (decrease) | (38518) | $(425036) | 5363 | $115566 |
| **Class R6 Shares:** |  |  |  |  |
|  Shares sold | 1197539 | $13335793 | 2732753 | $34472560 |
|  Shares issued in reinvestment of distributions |  |  | 204346 | 2468501 |
|  Shares redeemed | (834027) | (9255189) | (872943) | (10516538) |
|  Net increase (decrease) | 363512 | $4080604 | 2064156 | $26424523 |

---

 <br> franklintempleton.com Semiannual Report 121

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

**2. Shares of Beneficial Interest** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended<br>November 30, 2022** | **Six Months Ended<br>November 30, 2022** | **Year Ended<br>May 31, 2022** | **Year Ended<br>May 31, 2022** |
| | **Shares** | **Amount** | **Shares** | **Amount** |
| **Advisor Class Shares:** |  |  |  |  |
|  Shares sold | 6568403 | $72881562 | 31381005 | $381327809 |
|  Shares issued in reinvestment of distributions |  |  | 3252963 | 39198207 |
|  Shares redeemed | (27149728) | (300600663) | (28619216) | (341198204) |
|  Net increase (decrease) | (20581325) | $(227719101) | 6014752 | $79327812 |

---

<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 Templeton Services, LLC (FT Services) | Administrative manager |
|  Franklin Distributors, LLC (Distributors) | Principal underwriter |
|  Franklin Templeton Investor Services, LLC (Investor Services) | Transfer agent |

---

**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** |
|  1.90% | Up to and including $1 billion |
|  1.85% | Over $1 billion, up to and including $1.5 billion |
|  1.80% | Over $1.5 billion, up to and including $3 billion |
|  1.75% | In excess of $3 billion |

---

For the period ended November 30, 2022, the annualized gross effective management fee rate was 1.89% 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.

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. Each subadvisor is compensated for managing its respective portion of the average daily net assets of the Fund or K2 Subsidiary.

 <br> 122 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

---

| |
|:---|
| **Subadvisors** |
|  ActusRayPartners Limited |
|  Apollo Credit Management LLC |
|  Bardin Hill Arbitrage IC Management LP |
|  Benefit Street Partners L.L.C. \* |
|  BlueBay Asset Management LLP |
|  Chilton Investment Company, Inc. |
|  Electron Capital Partners, LLC |
|  Ellington Global Asset Management, LLC |
|  Emso Asset Management Limited |
|  Graham Capital Management, L.P. |
|  Jennison Associates, LLC |
|  Lazard Asset Management, LLC |
|  Loomis Sayles & Company, L.P. |
|  One River Asset Management, LLC |
| P. Schoenfeld Asset Management L.P. |
|  Portland Hill Asset Management Limited |
|  RV Capital Management Private Ltd |
|  Wellington Management Company, LLP |

---

\*An affiliate of K2 Advisors.

**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.

**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 | 0.30% |
|  Class C | 1.00% |
|  Class R | 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 123

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin 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 | $1861 |
|  CDSC retained | $1103.0 |

---

**e. Transfer Agent Fees** 

Each class of shares pays transfer agent fees to Investor Services for its performance of shareholder servicing obligations. Effective October 1, 2022, the fees are based on an annualized asset based fee of 0.016% plus a reduced transaction based fee. Prior to October 1, 2022, the fees were based on an annualized asset based fee of 0.02% plus a transaction based fee. 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 are allocated daily based upon their relative proportion of such classes' aggregate net assets. Class R6 pays Investor Services transfer agent fees specific to that class.

For the period ended November 30, 2022, the Fund paid transfer agent fees of $588,913, of which $148,635 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, 2022, the Fund held investments in affiliated management investment companies as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Value at<br>Beginning<br>of Period** | **Purchases** | **Sales** | **Realized<br>Gain**<br> **(Loss)** | **Net Change<br>in Unrealized<br>Appreciation<br>(Depreciation)** | **Value<br>at End**<br> **of Period** | **Number<br>of Shares<br>Held<br>at End<br>of Period** | **Income<br>from<br>Securities<br>Loaned** |
| **Non-Controlled Affiliates** | | | | | | | | |
|  Institutional Fiduciary Trust Money Market Portfolio, 3.446% | $4937000 | $44372000 | $(46648000) | $— | $— | $2661000 | 2661000 | $41997 |

---

**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 1.95% based on the average net assets of each class until September 30, 2023. Total expenses waived or paid are not subject to recapture subsequent to the Fund's fiscal year end.

Investor Services has contractually agreed in advance to waive or limit its fees so that the Class R6 transfer agent fees do not exceed 0.03% based on the average net assets of the class until September 30, 2023.

 <br> 124 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

**4. Expense Offset Arrangement** 

The Fund has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund's custodian expenses. During the period ended November 30, 2022, the custodian fees were reduced as noted in the Consolidated Statement of Operations.

**5. Income Taxes** 

At November 30, 2022, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:

---

| | |
|:---|:---|
|  Cost of investments | $701170635 |
|  Unrealized appreciation | $106863427 |
|  Unrealized depreciation | (104193385) |
|  Net unrealized appreciation (depreciation) | $2670042 |

---

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

**6. Investment Transactions** 

Purchases and sales of investments and securities sold short (excluding short term securities) for the period ended November 30, 2022, aggregated $1,010,565,406 and $1,175,066,576, respectively.

At November 30, 2022, in connection with securities lending transactions, the Fund loaned equity investments and corporate bonds and notes and received $3,307,885 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.

**7. Credit Risk and Defaulted Securities** 

At November 30, 2022, the Fund had 4.4% of its portfolio invested in high yield, senior secured floating rate loans, or other securities rated below investment grade as determined by Nationally Recognized Statistical Credit Ratings Organizations and/or internally, by investment management 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, 2022, the aggregate long value of distressed company securities for which interest recognition has been discontinued was $6,388,133, representing 0.6% of the Fund's net assets. For information as to specific securities, see the accompanying Consolidated Schedule of Investments.

**8. 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

 <br> franklintempleton.com Semiannual Report 125

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

**8. Concentration of Risk** (continued)

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.

**9. Investments in Russian Securities** 

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, 2022.

**10. Novel Coronavirus Pandemic** 

The global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations, regions and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially impact the value and performance of the Fund, its ability to buy and sell fund investments at appropriate valuations and its ability to achieve its investment objectives.

**11. 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.

 <br> 126 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

At November 30, 2022, unfunded commitments were as follows:

---

| | |
|:---|:---|
| **Borrower** | **Unfunded<br>Commitment** |
|  Athenahealth Group Inc., Term Loan B | $63231 |
|  Athenahealth Group Inc., Term Loan B | 10744 |
|  Bausch Health Cos. Inc., Term Loan B | 595408 |
|  Citrix Systems Inc., Term Loan B | 37872 |
|  CSC Holdings LLC, Term Loan B | 204091 |
|  EPIC Crude Holdings LP, Term Loan B | 65000 |
|  Euro Garage Ltd., Term Loan B | 101945 |
| K. Hovnanian Enterprises Inc., Term Loan RC | 214834 |
|  Oldcastle BuildingEnvelope Inc., Term Loan RC | 274845 |
|  OpenText Corp., Initial Term Loan | 204360 |
|  Upfield Group BV, Term Loan RC | 498584 |
|  Varsity Brands, Initial Term Loan | 19764 |
|  | $2290678 |

---

**12. Other Derivative Information** 

At November 30, 2022, the investments in derivative contracts are reflected in the Consolidated Statement of Assets and Liabilities as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Asset Derivatives**  | **Asset Derivatives**  | **Liability Derivatives** | **Liability Derivatives** |
| <br>**Derivative Contracts<br>Not Accounted for as<br>Hedging Instruments** | **Consolidated Statement of<br>Assets and Liabilities<br>Location** | **Fair Value** | **Consolidated Statement of<br>Assets and Liabilities<br>Location** | **Fair Value** |
|  Interest rate contracts | Investments in securities, at value | $461024 <sup>a</sup> | Options written, at value | $1101500 |
|  | Variation margin on futures contracts | 500131 <sup>b</sup> | Variation margin on futures contracts | 567825 <sup>b</sup> |
|  | Variation margin on centrally cleared swap contracts | 2619961 <sup>b</sup> | Variation margin on centrally cleared swap contracts | 2610448 <sup>b</sup> |
|  Foreign exchange contracts | Investments in securities, at value | 101290 <sup>a</sup> | Options written, at value | 18318 |
|  | Unrealized appreciation on OTC forward exchange contracts | 9717341 | Unrealized depreciation on OTC forward exchange contracts | 12374543 |
|  | Unrealized appreciation on OTC swap contracts | 5265 | Variation margin on futures contracts | 39860 <sup>b</sup> |
|  Credit contracts |  |  | Variation margin on centrally cleared swap contracts | 216994 <sup>b</sup> |
|  | OTC swap contracts (upfront payments) | 3303373 | OTC swap contracts (upfront receipts) | 488408 |
|  | Unrealized appreciation on OTC swap contracts | 489058 | Unrealized depreciation on OTC swap contracts | 954977 |
|  Equity contracts | Investments in securities, at value | 2884742 <sup>a</sup> | Options written, at value | 1223528 |
|  | Variation margin on futures contracts | 1520125 <sup>b</sup> | Variation margin on futures contracts | 4941973 <sup>b</sup> |

---

 <br> franklintempleton.com Semiannual Report 127

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

**12. Other Derivative Information** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Asset Derivatives**  | **Asset Derivatives**  | **Liability Derivatives** | **Liability Derivatives** |
| <br>**Derivative Contracts<br>Not Accounted for as<br>Hedging Instruments** | **Consolidated Statement of<br>Assets and Liabilities<br>Location** | **Fair Value** | **Consolidated Statement of<br>Assets and Liabilities<br>Location** | **Fair Value** |
|  | Unrealized appreciation on OTC swap contracts | $7238889 | Unrealized depreciation on OTC swap contracts | $8797031 |
|  Commodity contracts | Variation margin on futures contracts | 550607 <sup>b</sup> | Variation margin on futures contracts | 854369 <sup>b</sup> |
|  Totals |  | $29391806 |  | $34189774 |

---

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

<sup>b</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.

For the period ended November 30, 2022, 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<br>Operations Location** | **Net Realized<br>Gain (Loss)<br>for the Period** | **Consolidated Statement of<br>Operations Location** | **Net 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 | Investments | $(35582)<sup>a</sup> | Investments | $(544029)<sup>a</sup> |
|  | Written options | (104172) | Written options | (223113) |
|  | Futures contracts | 4704964 | Futures contracts | (557061) |
|  | Swap contracts | (721069) | Swap contracts | (175798) |
|  Foreign exchange contracts | Investments | 114012 <sup>a</sup> | Investments | (154905)<sup>a</sup> |
|  | Written options | (40183) | Written options | 36103 |
|  | Forward exchange contracts | 11366285 | Forward exchange contracts | (4552264) |
|  | Futures contracts | 122040 | Futures contracts | (67665) |
|  | Swap contracts | 4652 | Swap contracts | (191550) |
|  Credit contracts | Swap contracts | 793806 | Swap contracts | (998213) |
|  Equity contracts | Investments | (2196946)<sup>a</sup> | Investments | 448666 <sup>a</sup> |
|  | Written options | 1310127 | Written options | (310939) |
|  | Futures contracts | (1750287) | Futures contracts | (2381688) |
|  | Swap contracts | 2235187 | Swap contracts | (3231607) |
|  Commodity contracts | Futures contracts | (2992055) | Futures contracts | (1067204) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Totals |  | $12810779 |  | $(13971267) |

---

<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, 2022, the average month end notional amount of futures contracts and swap contracts represented $520,293,139 and $1,367,357,559, respectively. The average month end fair value of options was $6,397,291. The average month end contract value of forward exchange contracts was $448,858,739.

 <br> 128 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

At November 30, 2022, OTC derivative assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
|  | **Gross Amounts of Assets<br>and Liabilities Presented in<br>the Consolidated Statement<br>of Assets and Liabilities** | **Gross Amounts of Assets<br>and Liabilities Presented in<br>the Consolidated Statement<br>of Assets and Liabilities** |
| | **Assets<sup>a</sup>** | **Liabilities<sup>a</sup>** |
| **Derivatives** | | |
| &nbsp;&nbsp;&nbsp; Forward Exchange Contracts | $9717341 | $12374543 |
| &nbsp;&nbsp;&nbsp; Options Purchased | 231569 |  |
| &nbsp;&nbsp;&nbsp; Options Written |  | 19373 |
| &nbsp;&nbsp;&nbsp; Swap Contracts | 11057086 | 10260917 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $21005996 | $22654833 |

---

<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.

At November 30, 2022, OTC derivative assets, which may be offset against OTC derivative liabilities and collateral received from the counterparty, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Amounts Not Offset in the Consolidated<br>Statement of Assets and Liabilities** | **Amounts Not Offset in the Consolidated<br>Statement of Assets and Liabilities** | **Amounts Not Offset in the Consolidated<br>Statement of Assets and Liabilities** | |
| |<br>**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<sup>a</sup>** |<br>**Net Amount (Not<br>less than zero)** |
| **Counterparty** | | | | | |
|  BNPP | $315994 | $(315994) | $— | $— | $— |
|  BNYM | 752518 | (752518) |  |  |  |
|  BOFA | 156009 | (156009) |  |  |  |
|  BZWS | 2095648 | (2001816) |  | (93832) |  |
|  CITI | 1334787 | (638827) |  |  | 695960 |
|  DBAB | 311947 | (311947) |  |  |  |
|  FBCO |  |  |  |  |  |
|  GSCO | 3197599 | (2042974) |  | (1154625) |  |
|  HSBC | 489640 | (427780) |  |  | 61860 |
|  JPHQ | 1985448 | (1600647) |  |  | 384801 |
|  JPHQ<sup>b</sup> | 1086783 |  |  |  | 1086783 |
|  MSCO | 1068029 | (1068029) |  |  |  |
|  MSCO<sup>b</sup> | 132112 |  |  |  | 132112 |
|  MSCO<sup>c</sup> | 2545617 | (2545617) |  |  |  |
|  MSCS | 3625966 | (3625966) |  |  |  |
|  SCBL | 248228 | (73546) |  |  | 174682 |
|  SEBA | 1063380 | (1063380) |  |  |  |
|  SSBT | 324991 | (295358) |  |  | 29633 |
|  UBSW | 271300 | (228945) |  |  | 42355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $21005996 | $(17149353) | $— | $(1248457) | $2608186 |

---

 <br> franklintempleton.com Semiannual Report 129

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

**12. Other Derivative Information** (continued)

At November 30, 2022, OTC derivative liabilities, which may be offset against OTC derivative assets and collateral pledged to the counterparty, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Amounts Not Offset in the Consolidated**<br>**Statement of Assets and Liabilities** | **Amounts Not Offset in the Consolidated**<br>**Statement of Assets and Liabilities** | **Amounts Not Offset in the Consolidated**<br>**Statement of Assets and Liabilities** | |
| |<br>**Gross Amounts of Liabilities<br>Presented in the<br>Consolidated Statement of<br>Assets and Liabilities** | **Financial<br>Instruments<br>Available for Offset** | **Financial<br>Instruments<br>Collateral<br>Pledged** | **Cash<br>Collateral<br>Pledged<sup>a</sup>** |<br>**Net Amount (Not<br>less than zero)** |
| **Counterparty** | | | | | |
|  BNPP | $447101 | $(315994) | $— | $— | $131107 |
|  BNYM | 891735 | (752518) |  | (139217) |  |
|  BOFA | 373512 | (156009) |  | (20000) | 197503 |
|  BZWS | 2001816 | (2001816) |  |  |  |
|  CITI | 638827 | (638827) |  |  |  |
|  DBAB | 525889 | (311947) |  |  | 213942 |
|  FBCO | 3857 |  |  |  | 3857 |
|  GSCO | 2042974 | (2042974) |  |  |  |
|  HSBC | 427780 | (427780) |  |  |  |
|  JPHQ | 1600647 | (1600647) |  |  |  |
|  JPHQ<sup>b</sup> | 2219424 |  |  |  | 2219424 |
|  MSCO | 1557267 | (1068029) |  |  | 489238 |
|  MSCO<sup>b</sup> | 821961 |  |  |  | 821961 |
|  MSCO<sup>c</sup> | 2546432 | (2545617) |  | (815) |  |
|  MSCS | 4094459 | (3625966) |  | (468493) |  |
|  SCBL | 73546 | (73546) |  |  |  |
|  SEBA | 1863303 | (1063380) |  | (799923) |  |
|  SSBT | 295358 | (295358) |  |  |  |
|  UBSW | 228945 | (228945) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $22654833 | $(17149353) | $— | $(1428448) | $4077032 |

---

<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(i).

See Note 1(e) regarding derivative financial instruments.

See Abbreviations on page 133.

**13. 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 $2.675 billion (Global Credit Facility) which matures on February 3, 2023. 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 shall, 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, 2022, the Fund did not use the Global Credit Facility.

 <br> 130 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

**14. 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;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 – quoted prices in active markets for identical financial instruments

&nbsp;&nbsp;&nbsp;&nbsp;&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;&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, 2022, in valuing the Fund's assets and liabilities carried at fair value, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in Securities:<sup>a</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity Investments<sup>b</sup> | $343591852 | $45986969 | $26453 | $389605274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible Bonds |  | 118787553 |  | 118787553 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds and Notes |  | 141995015 | 144583 | 142139598 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds and Notes in Reorganization |  | 6388133 |  | 6388133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior Floating Rate Interests |  | 1917365 |  | 1917365 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign Government and Agency Securities |  | 56110905 |  | 56110905 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. Government and Agency Securities |  | 13979037 |  | 13979037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset-Backed Securities and Commercial Mortgage-Backed Securities |  | 49399960 | 356394 | 49756354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options Purchased | 3245095 | 201961 |  | 3447056 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short Term Investments | 157450674 | 2011885 |  | 159462559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Investments in Securities | $504287621 | $436778783<sup>c</sup> | $527430 | $941593834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Financial Instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts | $2570863 | $— | $— | $2570863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward Exchange Contracts |  | 9717341 |  | 9717341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap Contracts |  | 10373674 | — <sup>d</sup> | 10373674 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Other Financial Instruments | $2570863 | $20091015 | $— | $22661878 |
| **Liabilities:** | **Liabilities:** | **Liabilities:** | **Liabilities:** | **Liabilities:** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Financial Instruments: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Financial Instruments: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Financial Instruments: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Financial Instruments: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Financial Instruments: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options Written | $2325028 | $18318 | $— | $2343346 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities Sold Short<sup>a</sup> | 205697213 | 17981061 <sup>e</sup> |  | 223678274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts | 6404027 |  |  | 6404027 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward Exchange Contracts |  | 12374543 |  | 12374543 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap Contracts |  | 12599951 |  | 12599951 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unfunded Loan Commitments |  | 113847 | — <sup>d</sup> | 113847 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Other Financial Instruments | $214426268 | $43087720 | $— | $257513988 |

---

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

<sup>b</sup>Includes common stocks, exchange traded funds, and preferred stocks as well as other equity interests.

<sup>c</sup>Includes foreign securities valued at $44,978,188, 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>d</sup>ncludes financial instruments determined to have no value at November 30, 2022.

<sup>e</sup>Includes foreign securities valued at $1,675,777, 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.

 <br> franklintempleton.com Semiannual Report 131

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

**14. Fair Value Measurements** (continued)

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.

**15. New Accounting Pronouncements** 

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021 and December 2022, the FASB issued ASU No. 2021-01 and ASU No. 2022-06, with further amendments to Topic 848. The amendments in the ASUs provide optional temporary accounting recognition and financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR and other interbank-offered based reference rates as of the end of 2021 for certain LIBOR settings and 2023 for the remainder. The ASUs are effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2024. Management has reviewed the requirements and believes the adoption of these ASUs will not have a material impact on the financial statements.

In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in the ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, should not be considered in measuring fair value. The ASU is effective for interim and annual reporting periods beginning after December 15, 2023, with the option of early adoption. Management has reviewed the requirements and believes that the adoption of the ASU will not have a material impact on the financial statements.

**16. 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.

 <br> 132 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Alternative Strategies Fund** (continued)

**Abbreviations** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Counterparty** | **Currency** | **Currency** | **Selected Portfolio** | **Selected Portfolio** |
| **BNPP** | BNP Paribas | **ARS** | Argentine Peso | **ADR** | American Depositary Receipt |
| **BNYM** | The Bank of New York Mellon Corp. | **AUD** | Australian Dollar | **AONIA** | Australian Interbank Offered Rate |
| **BOFA** | Bank of America, NA | **BRL** | Brazilian Real | **ARM** | Adjustable Rate Mortgage |
| **BZWS** | Barclays Bank PLC | **CAD** | Canadian Dollar | **BADLAR** | Argentina Deposit Rates BADLAR Private Banks ARS |
| **CITI** | Citigroup, NA | **CHF** | Swiss Franc | **BADLAR** | Argentina Deposit Rates BADLAR Private Banks ARS |
| **DBAB** | Deutsche Bank, AG | **CNY** | Chinese Yuan | **BBSW** | Bank Bill Swap Rate |
| **FBCO** | Credit Suisse International | **COP** | Colombian Peso | **BKBM** | Bank Bill Benchmark Rate |
| **GSCO** | Goldman Sachs International | **CZK** | Czech Koruna | **BRLCDI** | Brazil Cetip Di Interbank Deposit Rate |
| **HSBC** | HSBC Bank PLC | **DKK** | Danish Krone | **CAC** | Cotation Assistee en Continu |
| **JPHQ** | JP Morgan Chase Bank, NA | **EUR** | Euro | **CBOE** | Chicago Board Options Exchage |
| **MSCO** | Morgan Stanley & Co. LLC | **GBP** | British Pound | **CIBOR** | Copenhagen Interbank Offered Rate |
| **MSCS** | Morgan Stanley Capital Services LLC | **HKD** | Hong Kong Dollar | **CLO** | Collateralized Loan Obligation |
| **SCBL** | Standard Chartered Bank | **HUF** | Hungarian Forint | **CLP TNA** | Chilean Peso Floating Rate Index |
| **SEBA** | Skandinaviska Enskilda Banken AB | **INR** | Indian Rupee | **CME** | Chicago Mercantile Exchange |
| **SSBT** | State Street Bank & Trust | **JPY** | Japanese Yen | **CNRR007** | China 7-Day Reverse Repo Rate |
| **UBSW** | UBS AG | **KRW** | South Korean Won | **CZEONIA** | Czech Overnight Index Average |
|  |  | **MXN** | Mexican Peso | **DAX** | Deutscher Aktienindex |
|  |  | **MYR** | Malaysian Ringgit | **DJIA** | Dow Jones Industrial Average |
|  |  | **NOK** | Norwegian Krone | **EONIA** | Euro OverNight Index Average |
|  |  | **NZD** | New Zealand Dollar | **ETF** | Exchange Traded Fund |
|  |  | **PHP** | Philippine Peso | **EURIBOR** | Euro Interbank Offered Rate |
|  |  | **PLN** | Polish Zloty | **FEDEF** | Federal Funds Effective Rate |
|  |  | **SEK** | Swedish Krona | **FHLMC** | Federal Home Loan Mortgage Corp. |
|  |  | **SGD** | Singapore Dollar | **FNMA** | Federal National Mortgage Association |
|  |  | **USD** | United States Dollar | **FRN** | Floating Rate Note |
|  |  | **TWD** | Taiwan Dollar | **FTSE** | Financial Times Stock Exchange |
|  |  | **ZAR** | South African Rand | **IMM** | International Money Market |
|  |  |  |  | **JIBAR** | Johannesburg Interbank Agreed Rate |
| **Index** |  |  |  | **KDR** | Korean Depositary Receipt |
| **CDX.NA.HY** | CDX North America High Yield Index |  |  | **KLIBOR** | Kuala Lumpur Interbank Offered Rate |
|  |  |  |  | **LIBOR** | London InterBank Offered Rate |
|  |  |  |  | **MIB** | Milano Italia Borsa |
|  |  |  |  | **MIBOR** | Mumbai Interbank Offered Rate |
|  |  |  |  | **MUTSCALM** | Japan Unsecured Overnight Call Rate |
|  |  |  |  | **NIBOR** | Norwegian Interbank Offered Rate |
|  |  |  |  | **OBFR** | Overnight Bank Funding Rate |
|  |  |  |  | **PIK** | Payment In-Kind |
|  |  |  |  | **RC** | Revolving Loan Commitment |
|  |  |  |  | **REIT** | Real Estate Investment Trust |
|  |  |  |  | **SABOR** | South African Benchmark Overnight Rate |
|  |  |  |  | **SARON** | Swiss Average Rate Overnight |
|  |  |  |  | **SIBCSORA** | Singapore Overnight Rate Average |
|  |  |  |  | **SOFR** | Secured Overnight Financing Rate |
|  |  |  |  | **SONIA** | Sterling Overnight Index Average |
|  |  |  |  | **SPDR** | Standard & Poor's Depositary Receipt |
|  |  |  |  | **STR** | Short Term Rate |
|  |  |  |  | **STIBOR** | Stockholm Interbank Offered Rate |
|  |  |  |  | **TAIBOR** | Taiwan Interbank Offered Rate |
|  |  |  |  | **TOPIX** | Tokyo Price Index |
|  |  |  |  | **WIBOR** | Warsaw Interbank Offered Rate |

---

 <br> franklintempleton.com Semiannual Report 133

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Shareholder Information

Board Approval of Sub-Advisory Agreement

**FRANKLIN K2 ALTERNATIVE STRATEGIES FUND (THE "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 a meeting held on October 25, 2022, unanimously approved the sub-advisory agreement (the "New Sub-Advisory Agreement") with DLD Asset Management, LP ("Sub-Advisor").

In approving the New Sub-Advisory Agreement, the Board, including the independent trustees, determined that fees to be paid under the New Sub-Advisory Agreement were fair and reasonable and that approval of the New Sub-Advisory Agreement was in the best interests of the Fund and its shareholders. As part of the approval process, the trustees considered the process undertaken and information provided during their consideration and approval on May 24, 2022 of the investment management agreement between K2/D&S Management Co., L.L.C., the Fund's investment manager ("K2 Advisors"), and the Trust, on behalf of the Fund, and the sub-advisory agreements between K2 Advisors and the Fund's existing sub-advisors.

In making the foregoing approvals, the independent trustees received assistance and advice from their independent counsel and, in addition to the materials provided at prior meetings, considered various materials related to the New Sub-Advisory Agreement including: (1) a copy of the proposed form of New Sub-Advisory Agreement for the Sub-Advisor; (2) information describing the nature, quality and extent of services that the Sub-Advisor would provide to the Fund, and the proposed sub-advisory fees payable to the Sub-Adviser; (3) a report from K2 Advisors on the diligence conducted on the Sub-Advisor and the reasons for recommending the Sub-Advisor as a sub-advisor for the Fund, including, but not limited to, the Sub-Advisor's background, experience, personnel, operations, policies, procedures and compliance functions and plans for the integration of such operations, policies, procedures and compliance functions with those of K2 Advisors; and (4) a report from the Fund's Chief Compliance Officer regarding the Sub-Advisor's compliance program and capabilities, including the Sub-Advisor's policies and procedures in place to address potential conflicts of interest, and the diligence undertaken by the Fund's Chief

Compliance Officer with respect thereto. The Board noted that the terms of the New Sub-Advisory Agreement were substantially similar to the terms of the sub-advisory agreements with the Fund's existing sub-advisors.

The Board's consideration of whether to approve the New Sub-Advisory Agreement on behalf of the Fund took into account several factors including, but not limited to, the following: (1) the nature and quality of the services to be provided by the Sub-Advisor to the Fund under the New Sub-Advisory Agreement; (2) the Sub-Advisor's experience as a manager of other accounts; (3) the Sub-Advisor's strength and reputation within the industry; (4) the fairness of the compensation under the New Sub-Advisory Agreement; (5) the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of the Sub-Advisor; (6) profitability matters; (7) reports from K2 Advisors on the diligence conducted on the Sub-Advisor and the reasons for recommending the Sub-Advisor as a sub-advisor for the Fund, including, but not limited to, the Sub-Advisor's background, experience, personnel, operations, policies, procedures and compliance functions and plans for the integration of such operations, policies, procedures and compliance functions with those of K2 Advisors; and (8) a report from the Trust's Chief Compliance Officer regarding the Sub-Advisor's compliance program and capabilities, including the Sub-Advisor's 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. Particular attention was given to the due diligence and risk management procedures of K2 Advisors with respect to selecting and overseeing sub-advisors of the Fund, as well as the Sub-Advisor's risk management program and to derivatives and other complex instruments that are expected to be held by the Fund and how such instruments are expected to be used to pursue the Fund's investment goal.

The following discussion relates to certain primary factors relevant to the Board's decision to approve the New Sub-Advisory Agreement. 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 not, unless otherwise noted, find it practicable to quantify or otherwise assign relative weights to the following factors. In addition, individual trustees may have assigned different weights to various factors.

 <br> 134 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

**NATURE, EXTENT AND QUALITY OF SERVICES.** The trustees reviewed the nature, extent and quality of the services to be provided by the Sub-Advisor. In this regard, they reviewed the Fund's investment goal and the Sub-Advisor's proposed investment strategy, and the Sub-Advisor's ability to implement such investment goal and/or investment strategy, including, but not limited to, the Sub-Advisor's trading practices and investment decision processes.

With respect to the sub-advisory services to be provided by the Sub-Advisor, the Board noted the responsibilities that the Sub-Advisor would have with respect to the Fund's assets to be allocated to it by K2-Advisors (the "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 successful performance of the Sub-Advisor in managing other investment products with investment strategies similar to the investment strategies of its Sub-Advised Portion.

The trustees reviewed the portfolio management team at the Sub-Advisor that would be responsible for managing the Sub-Advised Portion, including the team's performance, staffing, skills and compensation program. The trustees considered various other products, portfolios and entities that are advised by the Sub-Advisor, 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 the Sub-Advisor's compliance program as such policies relate to the operations of the Fund. The Board considered the selection and due diligence process employed by K2 Advisors in proposing the Sub-Advisor as a sub-advisor to the Fund, including the due diligence undertaken with respect to the Sub-Advisor's compliance capabilities, and efforts to integrate the Sub-Advisor's operations, policies, procedures and compliance functions with those of K2 Advisors.

Based on their review, the trustees were satisfied with the nature and quality of the overall services to be provided by the Sub-Advisor to the Fund and its shareholders and were confident in the abilities of the Sub-Advisor to implement its proposed investment strategies, and to provide quality services to the Fund and its shareholders.

**INVESTMENT PERFORMANCE.** The Board noted that, as the Sub-Advisor had not provided any services to the Fund, there was no investment performance of the Sub-Advisor with respect to the Fund. The Board considered the investment

performance of the Sub-Advisor in managing other investment products with similar investment strategies to the investment strategies of the Sub-Advised Portion. The Board also considered the performance benchmarks for the Fund and how such benchmarks would be utilized to measure the performance of the Sub-Advisor in managing the Sub-Advised Portion.

**COMPARATIVE EXPENSES AND PROFITABILITY.** The Board considered the cost of the services to be provided by the Sub-Advisor. The Board also noted that it could not evaluate the Sub-Advisor's profitability with respect to the Fund since no assets had yet been allocated to the Sub-Advisor.

The Board noted that the sub-advisory fees would be paid by K2 Advisors to the Sub-Advisor and would not be additional fees to be borne by the Fund. The Board also noted that the sub-advisory fees to be paid by K2 Advisors to the Sub-Advisor were the product of negotiations between K2 Advisors and the Sub-Advisor and the Board considered the allocation of the investment management fee charged to the Fund between K2 Advisors and the Sub-Advisor in light of the nature, extent and quality of the investment management services expected to be provided by K2 Advisors and the Sub-Advisor. The trustees considered various other products, portfolios and entities that are advised by the 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 considered the extent to which the Sub-Advisor may derive ancillary benefits from the Fund's operations.

With respect to the impact on K2 Advisors' and its affiliates' profitability as a result of hiring the Sub-Advisor 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, (2) the level of sub-advisory fees to be paid to the Sub-Advisor, and (3) K2 Advisors' belief that hiring of the Sub-Advisor will not have any material impact on K2 Advisors' profitability.

Based upon its consideration of all these factors, the Board determined that the sub-advisory fee structure for the Sub-Advisor was fair and reasonable.

**ECONOMIES OF SCALE.** The Board considered economies of scale that may be realized by the Sub-Advisor as the Fund grows larger and the extent to which such economies of scale may be shared with Fund shareholders, as for example, in the level of the sub-advisory fees charged, in the

 <br> franklintempleton.com Semiannual Report 135

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

quality and efficiency of services rendered and in increased capital commitments benefiting the Fund directly or indirectly. 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.** After consideration of the foregoing factors, and such other matters as were deemed relevant, and with no single factor being determinative to their decision, the trustees—including a majority of the independent trustees—with the assistance of independent counsel approved the New Sub-Advisory Agreement, including the fees payable thereunder, with the Sub-Advisor for the Fund.

Board Approval of Sub-Advisory Agreement

**FRANKLIN K2 ALTERNATIVE STRATEGIES FUND (THE "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 meetings held on July 12, 2022 and October 25, 2022, unanimously approved the sub-advisory agreement (the "New Sub-Advisory Agreement") with Capital Fund Management S.A. ("Sub-Advisor").

In approving the New Sub-Advisory Agreement, the Board, including the independent trustees, determined that fees to be paid under the New Sub-Advisory Agreement were fair and reasonable and that approval of the New Sub-Advisory Agreement was in the best interests of the Fund and its shareholders. As part of the approval process, the trustees considered the process undertaken and information provided during their consideration and approval on May 24, 2022 of the investment management agreement between K2/D&S Management Co., L.L.C., the Fund's investment manager ("K2 Advisors"), and the Trust, on behalf of the Fund, and the sub-advisory agreements between K2 Advisors and the Fund's existing sub-advisors.

In making the foregoing approvals, the independent trustees received assistance and advice from their independent counsel and, in addition to the materials provided at prior meetings, considered various materials related to the New Sub-Advisory Agreement including: (1) a copy of the proposed form of New Sub-Advisory Agreement for the Sub-Advisor; (2) information

describing the nature, quality and extent of services that the Sub-Advisor would provide to the Fund, and the proposed sub-advisory fees payable to the Sub-Advisor; (3) a report from K2 Advisors on the diligence conducted on the Sub-Advisor and the reasons for recommending the Sub-Advisor as a sub-advisor for the Fund, including, but not limited to, the Sub-Advisor's background, experience, personnel, operations, policies, procedures and compliance functions and plans for the integration of such operations, policies, procedures and compliance functions with those of K2 Advisors; and (4) a report from the Fund's Chief Compliance Officer regarding the Sub-Advisor's compliance program and capabilities, including the Sub-Advisor's policies and procedures in place to address potential conflicts of interest, and the diligence undertaken by the Fund's Chief Compliance Officer with respect thereto. The Board noted that the terms of the New Sub-Advisory Agreement were substantially similar to the terms of the sub-advisory agreements with the Fund's existing sub-advisors.

The Board's consideration of whether to approve the New Sub-Advisory Agreement on behalf of the Fund took into account several factors including, but not limited to, the following: (1) the nature and quality of the services to be provided by the Sub-Advisor to the Fund under the New Sub-Advisory Agreement; (2) the Sub-Advisor's experience as a manager of other accounts; (3) the Sub-Advisor's strength and reputation within the industry; (4) the fairness of the compensation under the New Sub-Advisory Agreement; (5) the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of the Sub-Advisor; (6) profitability matters; (7) reports from K2 Advisors on the diligence conducted on the Sub-Advisor and the reasons for recommending the Sub-Advisor as a sub-advisor for the Fund, including, but not limited to, the Sub-Advisor's background, experience, personnel, operations, policies, procedures and compliance functions and plans for the integration of such operations, policies, procedures and compliance functions with those of K2 Advisors; and (8) a report from the Trust's Chief Compliance Officer regarding the Sub-Advisor's compliance program and capabilities, including the Sub-Advisor's 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. Particular attention was given to the due diligence and risk management procedures of K2 Advisors with respect to selecting and overseeing sub-advisors of the Fund, as well as the Sub-Advisor's risk management program and to derivatives and other complex instruments that are expected to be held by the Fund and how such instruments are expected to be used to pursue the Fund's investment goal.

 <br> 136 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

The following discussion relates to certain primary factors relevant to the Board's decision to approve the New Sub-Advisory Agreement. 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 not, unless otherwise noted, find it practicable to quantify or otherwise assign relative weights to the following 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 to be provided by the Sub-Advisor. In this regard, they reviewed the Fund's investment goal and the Sub-Advisor's proposed investment strategy, and the Sub-Advisor's ability to implement such investment goal and/or investment strategy, including, but not limited to, the Sub-Advisor's trading practices and investment decision processes. The Board also considered the investment management services that the investment manager will provide to the Cayman Islands-based company, which is wholly owned by the Fund (the "Cayman Subsidiary").

With respect to the sub-advisory services to be provided by the Sub-Advisor, the Board noted the responsibilities that the Sub-Advisor would have with respect to the Fund's assets to be allocated to it by K2-Advisors (the "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 successful performance of the Sub-Advisor in managing other investment products with investment strategies similar to the investment strategies of its Sub-Advised Portion.

The trustees reviewed the portfolio management team at the Sub-Advisor that would be responsible for managing the Sub-Advised Portion, including the team's performance, staffing, skills and compensation program. The trustees considered various other products, portfolios and entities that are advised by the Sub-Advisor, 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 the Sub-Advisor's compliance program as such policies relate to the operations of the Fund. The Board considered the selection and due diligence process employed by K2 Advisors in proposing the Sub-Advisor as a sub-advisor to the Fund, including the due

diligence undertaken with respect to the Sub-Advisor's compliance capabilities, and efforts to integrate the Sub-Advisor's operations, policies, procedures and compliance functions with those of K2 Advisors.

Based on their review, the trustees were satisfied with the nature and quality of the overall services to be provided by the Sub-Advisor to the Fund and its shareholders and were confident in the abilities of the Sub-Advisor to implement its proposed investment strategies, and to provide quality services to the Fund and its shareholders.

**INVESTMENT PERFORMANCE.** The Board noted that, as the Sub-Advisor had not provided any services to the Fund, there was no investment performance of the Sub-Advisor with respect to the Fund. The Board considered the investment performance of the Sub-Advisor in managing other investment products with similar investment strategies to the investment strategies of the Sub-Advised Portion. The Board also considered the performance benchmarks for the Fund and how such benchmarks would be utilized to measure the performance of the Sub-Advisor in managing the Sub-Advised Portion.

**COMPARATIVE EXPENSES AND PROFITABILITY.** The Board considered the cost of the services to be provided by the Sub-Advisor. The Board also noted that it could not evaluate the Sub-Advisor's profitability with respect to the Fund since no assets had yet been allocated to the Sub-Advisor.

The Board noted that the sub-advisory fees would be paid by K2 Advisors to the Sub-Advisor and would not be additional fees to be borne by the Fund. The Board also noted that the sub-advisory fees to be paid by K2 Advisors to the Sub-Advisor were the product of negotiations between K2 Advisors and the Sub-Advisor and the Board considered the allocation of the investment management fee charged to the Fund between K2 Advisors and the Sub-Advisor in light of the nature, extent and quality of the investment management services expected to be provided by K2 Advisors and the Sub-Advisor. The trustees considered various other products, portfolios and entities that are advised by the 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 considered the extent to which the Sub-Advisor may derive ancillary benefits from the Fund's operations.

With respect to the impact on K2 Advisors' and its affiliates' profitability as a result of hiring the Sub-Advisor as a sub-advisor to the Fund, the Board considered the following: (1) the fee waiver and expense limitation arrangements in

 <br> franklintempleton.com Semiannual Report 137

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

effect, the amount of Fund expenses that were absorbed since the inception of the Fund by K2 Advisors through such arrangements, (2) the level of sub-advisory fees to be paid to the Sub-Advisor, and (3) K2 Advisors' belief that hiring of the Sub-Advisor will not have any material impact on K2 Advisors' profitability. The Board also considered the investment management services that the investment manager will provide to the Cayman Subsidiary and the related fee waivers that were in place.

Based upon its consideration of all these factors, the Board determined that the sub-advisory fee structure for the Sub-Advisor was fair and reasonable.

**ECONOMIES OF SCALE.** The Board considered economies of scale that may be realized by the Sub-Advisor as the Fund grows larger and the extent to which such economies of scale may be shared with Fund shareholders, as for example, in the level of the sub-advisory fees charged, in the quality and efficiency of services rendered and in increased capital commitments benefiting the Fund directly or indirectly. 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.** After consideration of the foregoing factors, and such other matters as were deemed relevant, and with no single factor being determinative to their decision, the trustees—including a majority of the independent trustees—with the assistance of independent counsel approved the New Sub-Advisory Agreement, including the fees payable thereunder, with the Sub-Advisor for the Fund.

Proxy Voting Policies and Procedures

The Fund's investment manager has established Proxy Voting Policies and Procedures (Policies) that the Fund uses to determine how to vote proxies relating to portfolio securities. Shareholders may view the Fund's complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Fund's proxy voting records are also made available online at franklintempleton.com and posted on the U.S. Securities and Exchange Commission's website at sec.gov and reflect the most recent 12-month period ended June 30.

Quarterly Schedule of Investments

The Trust, on behalf of the Fund, files a complete schedule of investments with the U.S. Securities and Exchange Commission for the first and third quarters for each fiscal year as an exhibit to its report on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the Commission's website at sec.gov. The filed form may also be viewed and copied at the Commission's Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling (800) SEC-0330.

Householding of Reports and Prospectuses

You will receive, or receive notice of the availability of, the Fund's financial reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the financial reports (to the extent received by mail) and summary prospectus. This process, called "householding," will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at (800) 632-2301. At any time you may view current prospectuses/summary prospectuses and financial reports on our website. If you choose, you may receive these documents through electronic delivery.

 <br> 138 Semiannual Report franklintempleton.com

------

Authorized for distribution only when accompanied or preceded by a summary prospectus and/or prospectus. Investors should carefully consider a fund's investment goals, risks, charges and expenses before investing. A prospectus contains this and other information; please read it carefully before investing.

To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.

------

---

| | | | |
|:---|:---|:---|:---|
| ![LOGO](g402347g20k13.jpg) | **Semiannual Report and Shareholder Letter**<br> **Franklin K2 Alternative Strategies Fund** | **Semiannual Report and Shareholder Letter**<br> **Franklin K2 Alternative Strategies Fund** |  |
|  | **Investment Manager** | **Distributor** | **Shareholder Services** |
|  | K2/D&S Management Co., L.L.C. | Franklin Distributors, LLC<br> (800) DIAL BEN<sup>®</sup>/342-5236<br> franklintempleton.com | (800) 632-2301 |
|© 2023 Franklin Templeton Investments. All rights reserved. |© 2023 Franklin Templeton Investments. All rights reserved. |  | 068 S 01/23 |

---

------

**SEMIANNUAL REPORT AND SHAREHOLDER LETTER** 

## FRANKLIN K2 LONG SHORT CREDIT FUND
**A Series of Franklin Alternative Strategies Funds** 

November 30, 2022

![LOGO](g596514g83o29.jpg)

![LOGO](g596514g87g17.jpg)

Sign up for electronic delivery at franklintempleton.com/edelivery

------

## SHAREHOLDER LETTER
Dear Fellow Shareholder:

During the six months ended November 30, 2022, the global economy was impacted by continued supply-chain disruptions, slower trade and volatile prices for energy and food commodities, which contributed to higher inflation in many countries. This inflationary pressure led many of the world's central banks to adopt less accommodative monetary policies. Strict lockdowns imposed by China's government to quell the spread of COVID-19 also hindered Asian and global emerging market stocks. Additionally, geopolitical instability amid the ongoing war in Ukraine and international sanctions on Russia also added to the uncertainty about the trajectory of the global economy.

In this environment, global developed market stocks, as measured by the MSCI World Index (USD), posted a -1.56% total return for the period.<sup>1</sup> Global emerging market stocks, as measured by the MSCI Emerging Markets Index (USD), posted a -7.88% total return.<sup>1</sup> Global government bonds, as measured by the FTSE World Government Bond Index (USD), posted a -6.94% total return.<sup>1</sup>

We are committed to our long-term perspective and disciplined investment approach as we continue to conduct a rigorous analysis of Fund subadvisors and markets with a strong emphasis on investment risk management.

We believe active, professional investment management serves investors well. We also recognize the important role of financial professionals in today's markets and encourage investors to continue to seek their advice. Amid changing

markets and economic conditions, we are confident investors with a well-diversified portfolio and a patient, long-term outlook should be well positioned for the years ahead.

On the following pages, the Fund's portfolio management team reviews investment decisions that pertain to performance during the past six months in light of the economic environment and other factors. Please remember all securities markets fluctuate, as do mutual fund share prices.

We thank you for investing with Franklin Templeton, welcome your questions and comments, and look forward to continuing to serve your investment needs in the future.

Sincerely,

![LOGO](g596514sig_brooks.jpg)

Brooks Ritchey

President and Chief Executive Officer –

Investment Management

Franklin Alternative Strategies Funds

*This letter reflects our analysis and opinions as of November 30, 2022, unless otherwise indicated. The information is not a complete analysis of every aspect of any market, country, industry, security or fund. Statements of fact are from sources considered reliable.* 

1. Source: Morningstar.

See www.franklintempletondatasources.com for additional data provider information.

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Not FDIC Insured** | \| | **May Lose Value** | \| | **No Bank Guarantee** |

---

 <br> franklintempleton.com Semiannual Report 1

------

---

| | |
|:---|:---|
| Contents | |
| **Semiannual Report** | |
| [Franklin K2 Long Short Credit Fund](#tx596514_1) | 3 |
| [Performance Summary](#tx596514_2) | 6 |
| [Your Fund's Expenses](#tx596514_3) | 8 |
| [Financial Highlights and Schedule of Investments](#tx596514_4) | 9 |
| [Financial Statements](#tx596514_5) | 35 |
| [Notes to Financial Statements](#tx596514_6) | 39 |
| [Shareholder Information](#tx596514_7) | 54 |

---

Visit **franklintempleton.com** for fund updates, to access your account, or to find helpful financial planning tools.

 <br> 2 Semiannual Report franklintempleton.com

------

## SEMIANNUAL REPORT
Franklin K2 Long Short Credit Fund

This semiannual report for Franklin K2 Long Short Credit Fund covers the period ended November 30, 2022. As recently approved by the Fund's Board of Trustees, effective January 17, 2023, the Fund's name will change to K2 Long Short Credit Fund. Please refer to the Fund's prospectus for more information. If you have any questions, please contact your financial professional.

Your Fund's Goal and Main Investments

The Fund seeks total return through a combination of current income, capital preservation and capital appreciation. The Fund seeks to achieve its investment goal by allocating its assets across multiple alternative strategies in the fixed income and credit areas, including, but not limited to, some or all of the following: credit long short, structured credit and emerging market fixed income. The Fund is structured as a multi-manager fund, meaning the Fund's assets are managed by multiple subadvisors, and the Fund's investment manager has overall responsibility for the Fund's investments.

Under normal market conditions, the Fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in credit-related investments. The Fund invests in a wide range of securities and other investments including, but not limited to: corporate bonds, mortgage-backed securities (MBS) and asset-backed securities (ABS), U.S. government and agency securities, collateralized debt and loan obligations, foreign government and supranational debt securities, loans and loan participations and derivatives with similar economic characteristics. The Fund may also invest in repurchase agreements, reverse repurchase agreements, mortgage real estate investment trusts (REITs) and other similar transactions.

Performance Overview

The Fund's Class A shares posted a -5.36% cumulative total return for the six months under review. For comparison, the Fund's primary benchmark, the HFRX Fixed Income - Credit Index, which measures performance of strategies with exposure to credit across a broad continuum of credit

substrategies, including corporate, sovereign, distressed, convertible, asset backed, capital structure arbitrage, multi-strategy and other relative value and event driven substrategies, posted a -2.44% cumulative total return for the same period.<sup>1</sup> Also for comparison, the Fund's secondary benchmark, the ICE BofA U.S. 3-Month Treasury Bill Index, which tracks the performance of short-term U.S. government securities with a remaining term to final maturity of less than three months, posted a +0.97% cumulative total return.<sup>2</sup> You can find more of the Fund's performance data in the Performance Summary beginning on page 6.

*Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to* ***franklintempleton.com*** *or call* ***(800) 342-5236.*** 

---

| | |
|:---|:---|
| **Portfolio Composition** | |
| 11/30/22 |  |
|  | **% of Total<br>Net Assets** |
|  Long Positions | 79.0% |
|  Short Positions | -5.7% |
|  Short-Term Investments | 19.9% |
|  Other Assets, less Liabilities | 6.8% |

---

Economic and Market Overview

Global developed and emerging market equities, as measured by the MSCI All Country World Index-NR (USD, net of tax withholding when dividends are paid), posted a -2.51% total return for the six months ended November 30, 2022.<sup>2</sup> Volatile prices for energy and food commodities contributed to higher inflation in many countries even as global trade cooled in the third quarter of 2022. This inflationary pressure led many of the world's central banks to adopt tighter stances regarding monetary policy. Continued COVID-19 lockdowns imposed by China's government prompted protests and pressured Asian and global emerging market stocks. Geopolitical instability disrupted financial markets amid the ongoing war in Ukraine

1. Source: FactSet. Hedge Fund Research, Inc. – www.hedgefundresearch.com. The HFRX Fixed Income - Credit Index is being used under license from Hedge Fund Research, Inc., which does not endorse or approve of any of the contents of this report.

2. Source: Morningstar.

The indexes are unmanaged and include reinvestment of any income or distributions. They do not reflect any fees, expenses or sales charges. One cannot invest directly in an index, and an index is not representative of the Fund's portfolio. Unlike most asset class indexes, HFR Index returns reflect fees and expenses.

See www.franklintempletondatasources.com for additional data provider information.

**The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund's Schedule of Investments (SOI). The SOI begins on page 14.** 

 <br> franklintempleton.com Semiannual Report 3

------

FRANKLIN K2 LONG SHORT CREDIT FUND

and international sanctions on Russia, adding to investor uncertainty about the trajectory of the global economy.

In the U.S., gross domestic product growth contracted in 2022's second quarter, with the economy technically entering a recession amid lower investments in inventories and fixed investments. However, growth rebounded in the third quarter, driven in part by a narrowing trade deficit. The inflation rate began the six-month period at the highest level since 1981 before moderating slightly. Elevated inflation precipitated a notable decline in consumer confidence, despite high spending levels. In an effort to control inflation, the U.S. Federal Reserve (Fed) raised the federal funds target rate four times during the period to end at a range of 3.75%–4.00%. The Fed noted in its November 2022 meeting that inflation remained elevated, spending and production grew, job growth remained robust and the unemployment rate continued to be low. Furthermore, the Fed said it would continue to reduce its bond holdings, and it anticipates further increases to the federal funds rate will be needed to achieve its inflation target.

Economies in the eurozone maintained a slow growth rate in 2022's second and third quarters. The war in Ukraine contributed to record high inflation across the eurozone as natural gas supplies were disrupted. The European Central Bank raised interest rates in July 2022 for the first time in more than a decade, increasing rates again at two subsequent meetings, to fight growing inflation. In this environment, European developed market equities, as measured by the MSCI Europe Index-NR (USD), posted a -3.44% total return for the six months under review.<sup>2</sup>

Asian developed and emerging market equities, as measured by the MSCI All Country Asia Index-NR (USD), posted a -6.70% total return for the six-month period.<sup>2</sup> Japan's economy expanded in 2022's second quarter before contracting again in the third quarter amid higher inflation and a weakening yen. China's economy grew despite investor concerns about the solvency of several large property developers in China. Continued COVID-19 lockdowns also negatively impacted China's economy, sparking rare protests late in the six-month period and further contributing to uncertainty surrounding China's growth.

Global emerging market stocks, as measured by the MSCI Emerging Markets Index-NR (USD), posted a -8.15% total return for the six months under review.<sup>2</sup> Higher inflation combined with a strong U.S. dollar raised concerns over the possibility of government debt defaults in some countries. While energy and food prices eased following an initial surge in the wake of Russia's invasion of Ukraine, prices remained elevated, particularly pressuring countries which rely on imported commodities denominated in U.S. dollars. Rising U.S. interest rates led investors to sell off many holdings in emerging markets, including India, South Korea and Taiwan.

---

| |
|:---|
| **Subadvisors** |
| 11/30/22 |
| **Credit Long Short** |
|  Apollo Credit Management LLC |
|  Benefit Street Partners L.L.C. |
| **Structured Credit** |
|  Ellington Global Asset Management, LLC |
|  Medalist Partners, LP |
| **Emerging Market Fixed Income** |
|  Emso Asset Management Limited |

---

Manager's Discussion

The Fund's subadvisors for the six months under review were Apollo Management, Benefit Street Partners (BSP), Ellington Global Asset Management, Emso Asset Management and Medalist Partners. These subadvisors are also listed in the Subadvisors table on this page.

For the six-month period, the five managers detracted from the Fund's performance. The most significant detractor was Benefit Street Partners, followed by Emso and Medalist. Ellington and Apollo were less impactful, but still hindered absolute returns.

In terms of strategy performance, the Fund's three underlying strategies detracted from performance. The credit long short strategy was the leading detractor, followed by the structured credit and the emerging market fixed income strategies. The key driver of the Fund's negative aggregate returns on an asset class level was fixed income positioning, due in large part to long positions in corporate high yield, emerging markets (EM) government bonds, and asset backed securities (ABS). Exposure to currencies (net short versus the dollar), equities and interest-rate derivatives positively contributed to the Fund's performance.

At the strategy level, in the credit long short strategy, long positioning in the consumer discretionary and communication services sectors drove detraction during the period. Conversely, currency hedges and long positioning in energy benefited performance. In the structured credit strategy, long positions in ABS and mortgage-backed securities negatively affected performance, while interest-rate hedges were a notable contributor. Long positioning in EM government bonds was the key detractor from performance in the emerging market fixed income strategy. In contrast, currency hedges and interest-rate derivatives were modest positive contributors.

Over the six-month reporting period, there were no significant changes to portfolio allocation.

 <br> 4 Semiannual Report franklintempleton.com

------

FRANKLIN K2 LONG SHORT CREDIT FUND

Thank you for your participation in Franklin K2 Long Short Credit Fund. We look forward to continuing to serve your future investment needs.

Robert Christian

Co-Lead Portfolio Manager

Brooks Ritchey

Co-Lead Portfolio Manager

Art Vinokur

Portfolio Manager

------

*The foregoing information reflects our analysis, opinions and portfolio holdings as of November 30, 2022, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.* 

 <br> franklintempleton.com Semiannual Report 5

------

FRANKLIN K2 LONG SHORT CREDIT FUND

Performance Summary as of November 30, 2022

The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares. Total return reflects reinvestment of the Fund's dividends and capital gain distributions, if any, and any unrealized gains or losses. Your dividend income will vary depending on dividends or interest paid by securities in the Fund's portfolio, adjusted for operating expenses of each class. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 11/30/22<sup>1</sup> 

*Cumulative total return excludes sales charges. Average annual total return includes maximum sales charges. Sales charges will vary depending on the size of the investment and the class of share purchased. The maximum is 5.50% and the minimum is 0%.* ***Class A:*** *5.50% maximum initial sales charge;* ***Advisor Class:*** *no sales charges. For other share classes, visit* ***franklintempleton.com****.* 

---

| | | |
|:---|:---|:---|
| **Share Class** | **Cumulative<br>Total Return<sup>2</sup>** | **Average Annual<br>Total Return<sup>3</sup>** |
| **A<sup>4</sup>** |  |  |
|  6-Month | -5.36% | -10.59% |
|  1-Year | -9.38% | -14.33% |
|  5-Year | +4.17% | -0.32% |
|  Since Inception (9/8/15) | +18.50% | +1.58% |
| **Advisor** |  |  |
|  6-Month | -5.09% | -5.09% |
|  1-Year | -9.05% | -9.05% |
|  5-Year | +5.41% | +1.06% |
|  Since Inception (9/8/15) | +20.03% | +2.56% |

---

*Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to* ***franklintempleton.com*** *or call* ***(800) 342-5236.*** 

**See page 7 for Performance Summary footnotes.** 

 <br> 6 Semiannual Report franklintempleton.com

------

FRANKLIN K2 LONG SHORT CREDIT FUND

PERFORMANCE SUMMARY

**Distributions** (6/1/22–11/30/22)

---

| | |
|:---|:---|
| **Share Class** | **Net Investment**<br> **Income** |
|  A | $0.2011 |
|  C | $0.0810 |
|  R | $0.1748 |
|  R6 | $0.2286 |
|  Advisor | $0.2284 |

---

**Total Annual Operating Expenses<sup>5</sup>** 

---

| | | |
|:---|:---|:---|
| **Share Class** | **With Fee<br>Waiver** | **Without Fee<br>Waiver** |
| **A** | 2.09% | 2.60% |
| **Advisor** | 1.84% | 2.35% |

---

**Each class of shares is available to certain eligible investors and has different annual fees and expenses, as described in the prospectus.** 

**All investments involve risks, including possible loss of principal. The market values of securities owned by the Fund will go up or down, sometimes rapidly or unpredictably. The Fund's performance depends on the manager's skill in selecting, overseeing and allocating Fund assets to the subadvisors. The Fund is actively managed and could experience losses if the manager's and subadvisors' judgment about particular Fund portfolio investments prove to be incorrect. Some subadvisors may have little or no experience managing the assets of a registered investment company. Bond prices generally move in the opposite direction of interest rates. Changes in the financial strength of a bond issuer or in a bond's credit rating may affect its value. Lower-rated or high-yield debt securities (junk bonds) involve greater credit risk, including the possibility of default or bankruptcy. Liquidity risk exists when securities become more difficult to sell, or are unable to be sold, at the price at which they have been valued. Investments in derivatives involve costs and create economic leverage, which may result in significant volatility and cause the Fund to participate in losses (as well as gains) that significantly exceed the Fund's initial investment. The Fund may make short sales of securities, which involves the risk that losses may exceed the original amount invested. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. The Fund's prospectus also includes a description of the main investment risks, including the risks of foreign investments.** 

**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.** 

1. Gross expenses are the Fund's total annual operating expenses as of the Fund's prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns. Net expenses reflect contractual fee waivers, expense caps and/or reimbursements, which cannot be terminated prior to 9/30/23 without Board consent. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice.

2. Cumulative total return represents the change in value of an investment over the periods indicated.

3. Average annual total return represents the average annual change in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

4. Prior to 9/10/18, these shares were offered at a higher initial sales charge of 5.75%, thus actual returns (with sales charges) would have differed. Average annual total returns (with sales charges) have been restated to reflect the current maximum initial sales charge of 5.50%.

5. Figures are as stated in the Fund's current prospectus and may differ from the expense ratios disclosed in the Your Fund's Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.

See www.franklintempletondatasources.com for additional data provider information.

 <br> franklintempleton.com Semiannual Report 7

------

FRANKLIN K2 LONG SHORT CREDIT FUND

Your Fund's Expenses

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including sales charges (loads) on Fund purchases and redemptions; and (2) ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other mutual funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading "Actual." In these columns the Fund's actual return, which includes the effect of Fund expenses, is used to calculate the "Ending Account Value" for each class of shares. You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row for your class of shares under the headings "Actual" and "Expenses Paid During Period" (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading "Hypothetical" in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading "Hypothetical" is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Actual**<br>**(actual return after expenses)** | **Actual**<br>**(actual return after expenses)** | **Hypothetical**<br>**(5% annual return before expenses)** | **Hypothetical**<br>**(5% annual return before expenses)** | |
| <br>**Share**<br> **Class** |<br>**Beginning<br>Account<br>Value 6/01/22** | **Ending<br>Account<br>Value 11/30/22** | **Expenses<br>Paid During<br>Period**<br>**6/01/22–11/30/22<sup>1,2</sup>** | **Ending<br>Account<br>Value**<br>**11/30/22** | **Expenses<br>Paid During**<br>**Period**<br>**6/01/22–11/30/22<sup>1,2</sup>** |<br>**Net**<br>**Annualized**<br>**Expense**<br>**Ratio<sup>2</sup>** |
| **A** | $1000 | $946.40 | $10.30 | $1014.49 | $10.66 | 2.11% |
| **C** | $1000 | $943.40 | $13.93 | $1010.73 | $14.42 | 2.86% |
| **R** | $1000 | $945.20 | $11.46 | $1013.29 | $11.86 | 2.35% |
| **R6** | $1000 | $948.20 | $8.89 | $1015.94 | $9.20 | 1.82% |
| **Advisor** | $1000 | $949.10 | $9.09 | $1015.74 | $9.40 | 1.86% |

---

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/365 to reflect the one-half year period.

2. Reflects expenses after fee waivers and expense reimbursements. Does not include acquired fund fees and expenses.

 <br> 8 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Financial Highlights

**Franklin K2 Long Short Credit Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** |
| | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Class A** |  |  |  |  |  |  |
| **Per share operating performance** <br> (for a share outstanding throughout the period) |  |  |  |  |  |  |
|  Net asset value, beginning of period | $10.10 | $10.90 | $9.86 | $10.45 | $10.50 | $10.49 |
| Income from investment operations<sup>a</sup>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income<sup>b</sup> | 0.19 | 0.25 | 0.28 | 0.23 | 0.37 | 0.29 |
| &nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | (0.72) | (0.68) | 1.03 | (0.53) | (0.02) | 0.08 |
|  Total from investment operations | (0.53) | (0.43) | 1.31 | (0.30) | 0.35 | 0.37 |
| Less distributions from: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income | (0.20) | (0.23) | (0.26) | (0.25) | (0.31) | (0.19) |
| &nbsp;&nbsp;&nbsp; Net realized gains |  | (0.14) | (0.01) | (0.04) | (0.09) | (0.17) |
|  Total distributions | (0.20) | (0.37) | (0.27) | (0.29) | (0.40) | (0.36) |
|  Net asset value, end of period | $9.37 | $10.10 | $10.90 | $9.86 | $10.45 | $10.50 |
|  Total return<sup>c</sup> | (5.36)% | (4.16)% | 13.33% | (2.92)% | 3.42% | 3.63% |
| **Ratios to average net assets<sup>d</sup>** |  |  |  |  |  |  |
|  Expenses before waiver, payments by affiliates and expense reduction<sup>e</sup> | 2.83% | 2.65% | 2.85% | 3.24% | 3.15% | 3.51% |
|  Expenses net of waiver, payments by affiliates and expense reduction<sup>e</sup> | 2.11% <sup>f</sup> | 2.14% <sup>f</sup> | 2.27% <sup>f</sup> | 2.74% | 2.69% | 2.98% <sup>f</sup> |
|  Expenses incurred in connection with securities sold short | 0.31% | 0.28% | 0.41% | 0.58% | 0.62% | 0.89% |
|  Net investment income | 4.01% | 2.38% | 2.61% | 2.24% | 3.49% | 2.71% |
| **Supplemental data** |  |  |  |  |  |  |
|  Net assets, end of period (000's) | $16297 | $17506 | $26581 | $20212 | $27870 | $45088 |
|  Portfolio turnover rate | 67.09% | 169.38% | 194.81% | 205.14% | 158.66% | 251.81% |

---

<sup>a</sup> The amount shown for a share outstanding throughout the period may not correlate with the 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, except for non-recurring expenses, if any.

<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(f).

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

 <br> franklintempleton.com The accompanying notes are an integral part of these financial statements. \| Semiannual Report 9

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FINANCIAL HIGHLIGHTS

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** |
| | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Class C** |  |  |  |  |  |  |
| **Per share operating performance** <br> (for a share outstanding throughout the period) |  |  |  |  |  |  |
|  Net asset value, beginning of period | $9.91 | $10.70 | $9.69 | $10.26 | $10.34 | $10.35 |
| Income from investment operations<sup>a</sup>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income<sup>b</sup> | 0.16 | 0.17 | 0.19 | 0.15 | 0.27 | 0.19 |
| &nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | (0.72) | (0.68) | 1.01 | (0.52) | (0.01) | 0.07 |
|  Total from investment operations | (0.56) | (0.51) | 1.20 | (0.37) | 0.26 | 0.26 |
| Less distributions from: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income | (0.08) | (0.14) | (0.18) | (0.16) | (0.25) | (0.10) |
| &nbsp;&nbsp;&nbsp; Net realized gains |  | (0.14) | (0.01) | (0.04) | (0.09) | (0.17) |
|  Total distributions | (0.08) | (0.28) | (0.19) | (0.20) | (0.34) | (0.27) |
|  Net asset value, end of period | $9.27 | $9.91 | $10.70 | $9.69 | $10.26 | $10.34 |
|  Total return<sup>c</sup> | (5.66)% | (4.91)% | 12.40% | (3.66)% | 2.61% | 2.70% |
| **Ratios to average net assets<sup>d</sup>** |  |  |  |  |  |  |
|  Expenses before waiver, payments by affiliates and expense reduction<sup>e</sup> | 3.57% | 3.42% | 3.64% | 3.96% | 4.03% | 4.37% |
|  Expenses net of waiver, payments by affiliates and expense reduction<sup>e</sup> | 2.86% <sup>f</sup> | 2.91% <sup>f</sup> | 3.05% <sup>f</sup> | 3.46% | 3.57% | 3.84% <sup>f</sup> |
|  Expenses incurred in connection with securities sold short | 0.31% | 0.28% | 0.41% | 0.58% | 0.62% | 0.89% |
|  Net investment income | 3.26% | 1.61% | 1.82% | 1.52% | 2.61% | 1.85% |
| **Supplemental data** |  |  |  |  |  |  |
|  Net assets, end of period (000's) | $1797 | $2592 | $2945 | $2882 | $2893 | $2503 |
|  Portfolio turnover rate | 67.09% | 169.38% | 194.81% | 205.14% | 158.66% | 251.81% |

---

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

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

 <br> 10 Semiannual Report \| The accompanying notes are an integral part of these financial statements. franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FINANCIAL HIGHLIGHTS

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** |
| | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Class R** |  |  |  |  |  |  |
| **Per share operating performance** <br> (for a share outstanding throughout the period) |  |  |  |  |  |  |
|  Net asset value, beginning of period | $9.98 | $10.79 | $9.77 | $10.36 | $10.41 | $10.41 |
| Income from investment operations<sup>a</sup>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income<sup>b</sup> | 0.18 | 0.23 | 0.25 | 0.21 | 0.33 | 0.25 |
| &nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | (0.72) | (0.70) | 1.01 | (0.53) | (0.01) | 0.09 |
|  Total from investment operations | (0.54) | (0.47) | 1.26 | (0.32) | 0.32 | 0.34 |
| Less distributions from: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income | (0.17) | (0.20) | (0.23) | (0.23) | (0.28) | (0.17) |
| &nbsp;&nbsp;&nbsp; Net realized gains |  | (0.14) | (0.01) | (0.04) | (0.09) | (0.17) |
|  Total distributions | (0.17) | (0.34) | (0.24) | (0.27) | (0.37) | (0.34) |
|  Net asset value, end of period | $9.27 | $9.98 | $10.79 | $9.77 | $10.36 | $10.41 |
|  Total return<sup>c</sup> | (5.48)% | (4.42)% | 12.95% | (3.13)% | 3.12% | 3.29% |
| **Ratios to average net assets<sup>d</sup>** |  |  |  |  |  |  |
|  Expenses before waiver, payments by affiliates and expense reduction<sup>e</sup> | 3.08% | 2.92% | 3.15% | 3.46% | 3.50% | 3.82% |
|  Expenses net of waiver, payments by affiliates and expense reduction<sup>e</sup> | 2.35% <sup>f</sup> | 2.41% <sup>f</sup> | 2.55% <sup>f</sup> | 2.96% | 3.04% | 3.29% <sup>f</sup> |
|  Expenses incurred in connection with securities sold short | 0.30% | 0.28% | 0.41% | 0.58% | 0.62% | 0.89% |
|  Net investment income | 3.76% | 2.11% | 2.31% | 2.02% | 3.14% | 2.40% |
| **Supplemental data** |  |  |  |  |  |  |
|  Net assets, end of period (000's) | $242 | $218 | $196 | $169 | $166 | $162 |
|  Portfolio turnover rate | 67.09% | 169.38% | 194.81% | 205.14% | 158.66% | 251.81% |

---

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

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

 <br> franklintempleton.com The accompanying notes are an integral part of these financial statements. \| Semiannual Report 11

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FINANCIAL HIGHLIGHTS

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** |
| | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Class R6** |  |  |  |  |  |  |
| **Per share operating performance**<br> (for a share outstanding throughout the period) |  |  |  |  |  |  |
|  Net asset value, beginning of period | $10.13 | $10.94 | $9.87 | $10.45 | $10.51 | $10.50 |
| Income from investment operations<sup>a</sup>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income<sup>b</sup> | 0.21 | 0.29 | 0.31 | 0.26 | 0.36 | 0.31 |
| &nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | (0.72) | (0.69) | 1.02 | (0.53) | —<sup>c</sup> | 0.08 |
|  Total from investment operations | (0.51) | (0.40) | 1.33 | (0.27) | 0.36 | 0.39 |
|  Less distributions from: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income | (0.23) | (0.27) | (0.25) | (0.27) | (0.33) | (0.21) |
| &nbsp;&nbsp;&nbsp; Net realized gains |  | (0.14) | (0.01) | (0.04) | (0.09) | (0.17) |
|  Total distributions | (0.23) | (0.41) | (0.26) | (0.31) | (0.42) | (0.38) |
|  Net asset value, end of period | $9.39 | $10.13 | $10.94 | $9.87 | $10.45 | $10.51 |
|  Total return<sup>d</sup> | (5.18)% | (4.00)% | 13.54% | (2.58)% | 3.53% | 3.76% |
| **Ratios to average net assets<sup>e</sup>** |  |  |  |  |  |  |
|  Expenses before waiver, payments by affiliates and expense reduction<sup>f</sup> | 2.57% | 3.98% | 2.58% | 2.95% | 3.10% | 3.35% |
|  Expenses net of waiver, payments by affiliates and expense reduction<sup>f</sup> | 1.82%<sup>g</sup> | 1.86%<sup>g</sup> | 1.99%<sup>g</sup> | 2.41% | 2.55% | 2.83%<sup>g</sup> |
|  Expenses incurred in connection with securities sold short | 0.30% | 0.28% | 0.42% | 0.58% | 0.62% | 0.89% |
|  Net investment income | 4.36% | 2.60% | 2.88% | 2.57% | 3.63% | 2.86% |
| **Supplemental data** |  |  |  |  |  |  |
|  Net assets, end of period (000's) | $14 | $15 | $6 | $5 | $233 | $13 |
|  Portfolio turnover rate | 67.09% | 169.38% | 194.81% | 205.14% | 158.66% | 251.81% |

---

<sup>a</sup> The amount shown for a share outstanding throughout the period may not correlate with the 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> Amount rounds to less than $0.01 per share.

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

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

<sup>f</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(f).

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

 <br> 12 Semiannual Report \| The accompanying notes are an integral part of these financial statements. franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FINANCIAL HIGHLIGHTS

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** | **Year Ended May 31,** |
| | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Advisor Class** |  |  |  |  |  |  |
| **Per share operating performance**<br>(for a share outstanding throughout the period) |  |  |  |  |  |  |
|  Net asset value, beginning of period | $10.10 | $10.91 | $9.88 | $10.46 | $10.51 | $10.50 |
| Income from investment operations<sup>a</sup>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income<sup>b</sup> | 0.21 | 0.28 | 0.30 | 0.26 | 0.38 | 0.30 |
| &nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | (0.72) | (0.69) | 1.02 | (0.53) | (0.01) | 0.09 |
|  Total from investment operations | (0.51) | (0.41) | 1.32 | (0.27) | 0.37 | 0.39 |
|  Less distributions from: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net investment income | (0.23) | (0.26) | (0.28) | (0.27) | (0.33) | (0.21) |
| &nbsp;&nbsp;&nbsp; Net realized gains |  | (0.14) | (0.01) | (0.04) | (0.09) | (0.17) |
|  Total distributions | (0.23) | (0.40) | (0.29) | (0.31) | (0.42) | (0.38) |
|  Net asset value, end of period | $9.36 | $10.10 | $10.91 | $9.88 | $10.46 | $10.51 |
|  Total return<sup>c</sup> | (5.09)% | (3.99)% | 13.45% | (2.61)% | 3.60% | 3.75% |
| **Ratios to average net assets<sup>d</sup>** |  |  |  |  |  |  |
|  Expenses before waiver, payments by affiliates and expense reduction<sup>e</sup> | 2.57% | 2.42% | 2.65% | 2.96% | 3.03% | 3.37% |
|  Expenses net of waiver, payments by affiliates and expense reduction<sup>e</sup> | 1.86%<sup>f</sup> | 1.91%<sup>f</sup> | 2.06%<sup>f</sup> | 2.46% | 2.57% | 2.84%<sup>f</sup> |
|  Expenses incurred in connection with securities sold short | 0.31% | 0.28% | 0.41% | 0.58% | 0.62% | 0.89% |
|  Net investment income | 4.26% | 2.61% | 2.81% | 2.52% | 3.61% | 2.85% |
| **Supplemental data** |  |  |  |  |  |  |
|  Net assets, end of period (000's) | $49486 | $66727 | $76637 | $73047 | $86868 | $45514 |
|  Portfolio turnover rate | 67.09% | 169.38% | 194.81% | 205.14% | 158.66% | 251.81% |

---

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

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

 <br> franklintempleton.com The accompanying notes are an integral part of these financial statements. \| Semiannual Report 13

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Schedule of Investments, November 30, 2022 (unaudited)

**Franklin K2 Long Short Credit Fund** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Shares/<br>Warrants/**<br> **Rights** | **Value** |
|  | **Common Stocks and Other Equity Interests 1.0%** | | | |
|  | **Aerospace & Defense 0.0%<sup>†</sup>** | | | |
| a | Satellogic Inc., 1/25/27, wts. | United States | 603 | $179 |
|  | **Communications Equipment 0.0%<sup>†</sup>** |  |  |  |
| a | Riverbed Technology Inc. | United States | 3479 | 887 |
|  | **Diversified Financial Services 0.1%** |  |  |  |
| a | Aequi Acquisition Corp., A, 11/30/27, wts. | United States | 146 | 8 |
| a | African Gold Acquisition Corp., A, 3/13/28, wts. | United States | 1393 | 28 |
| a | Agile Growth Corp., A, 12/31/27, wts. | United States | 382 | 5 |
| a | Ares Acquisition Corp., A, 12/31/27, wts. | United States | 566 | 43 |
| a | Blue Whale Acquisition Corp. I, A, 7/09/23, wts. | United Arab Emirates | 297 | 51 |
| a | Crystal Peak Acquisition, A | Netherlands | 1993 | 19631 |
| a | Crystal Peak Acquisition, A, 6/22/26, wts. | Netherlands | 802 | 401 |
| a | DHC Acquisition Corp., A, 12/31/27, wts. | United States | 71 | 1 |
| a | Elliott Opportunity II Corp., A, 2/19/23, wts. | United States | 333 | 46 |
| a | Fast Acquisition Corp. II, A, 3/16/26, wts. | United States | 53 | 36 |
| a | Figure Acquisition Corp. I, A, 12/31/27, wts. | United States | 345 | 7 |
| a | Forum Merger IV Corp., A, 12/31/27, wts. | United States | 206 | 5 |
| a | Fusion Acquisition Corp. II, A, 12/31/27, wts. | United States | 318 |  |
| a | Glenfarne Merger Corp., A, 12/31/27, wts. | United States | 95 |  |
| a | Gores Technology Partners II Inc., A, 12/31/27, wts. | United States | 68 |  |
| a | Growth For Good Acquisition Corp., Contingent Value, rts., 6/14/23 | United States | 1518 | 76 |
| a | Hedosophia European Growth | United Kingdom | 1142 | 11408 |
| a | Jackson Acquisition Co., A, 12/31/28, wts. | United States | 880 | 34 |
| a | Landcadia Holdings IV Inc., A, 3/29/28, wts. | United States | 343 | 41 |
| a | LDH Growth Corp. I, A, 12/31/28, wts. | United States | 28 | 2 |
| a | Lead Edge Growth Opportunities Ltd., A, 12/31/28, wts. | United States | 344 | 21 |
| a | MDH Acquisition Corp., A, 2/02/28, wts. | United States | 357 | 1 |
| a | The Music Acquisition Corp., A, 2/05/28, wts. | United States | 795 |  |
| a | Obotech Acquisition SE, A | Luxembourg | 1240 | 12607 |
| a | Obotech Acquisition SE, A, 4/30/26, wts. | Luxembourg | 413 | 43 |
| a | Pegasus Acquisition Co. Europe BV, A | Netherlands | 1768 | 17993 |
| a | Southport Acquisition Corp., 5/24/28, wts. | United States | 1466 | 73 |
| a | Spree Acquisition Corp. 1 Ltd., 12/22/28, wts. | Israel | 909 | 27 |
| a | Target Global Acquisition I Corp., A, 12/31/27, wts. | Israel | 1043 | 78 |
| a | TCW Special Purpose Acquisition Corp., A, 12/31/28, wts. | United States | 612 |  |
| a | Teract SA, 11/16/25, wts. | France | 1165 | 24 |
| a | Twin Ridge Capital Acquisition Corp., A | United States | 2202 | 22086 |
| a | Zimmer Energy Transition Acquisition Corp., A, 5/14/23, wts. | United States | 703 | 91 |
|  |  |  |  | 84867 |
|  | **Diversified Telecommunication Services 0.1%** |  |  |  |
| a | Liberty Global PLC, C | United Kingdom | 3431 | 70953 |
| a | Telecom Italia SpA | Italy | 61000 | 13309 |
|  |  |  |  | 84262 |
|  | **Energy Equipment & Services 0.0%<sup>†</sup>** |  |  |  |
| a | Nabors Industries Ltd. | United States | 44 | 6967 |
|  | **Food Products 0.1%** |  |  |  |
|  | B&G Foods Inc., A | United States | 3600 | 47808 |
|  | **Hotels, Restaurants & Leisure 0.0%<sup>†</sup>** |  |  |  |
| a | HomeToGo SE, 12/31/25, wts. | Luxembourg | 210 | 22 |
|  | **Independent Power & Renewable Electricity Producers 0.4%** |  |  |  |
|  | Clearway Energy Inc., A | United States | 7013 | 230868 |

---

 <br> 14 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Shares/<br>Warrants/**<br> **Rights** | | **Value** |
|  | **Common Stocks and Other Equity Interests** (continued) | **Common Stocks and Other Equity Interests** (continued) | | | |
|  | **Oil, Gas & Consumable Fuels 0.3%** | **Oil, Gas & Consumable Fuels 0.3%** | **Oil, Gas & Consumable Fuels 0.3%** | **Oil, Gas & Consumable Fuels 0.3%** | **Oil, Gas & Consumable Fuels 0.3%** |
| a,b | Bighorn Permian Resources LLC | United States | 1346 |  | $34996 |
| a | Earthstone Energy Inc., A | United States | 31 |  | 491 |
| c | Targa Resources Corp. | United States | 2078 |  | 154582 |
|  |  |  |  |  | 190069 |
|  | **Professional Services 0.0%<sup>†</sup>** |  |  |  |  |
| a,b,d | Acosta Inc. | United States | 923 |  | 7569 |
|  | **Textiles, Apparel & Luxury Goods 0.0%<sup>†</sup>** |  |  |  |  |
| a | Ermenegildo Zegna Holditalia SpA, 10/30/27, wts. | Italy | 571 |  | 1142 |
|  | **Total Common Stocks and Other Equity Interests (Cost $669,835)** |  |  |  | 654640 |
|  | **Convertible Preferred Stocks (Cost $50,262) 0.1%** |  |  |  |  |
|  | **Professional Services 0.1%** |  |  |  |  |
| b,d | Acosta Inc., cvt. pfd. | United States | 1066 |  | 46797 |
|  | **Preferred Stocks 0.1%** |  |  |  |  |
|  | **Communications Equipment 0.0%<sup>†</sup>** |  |  |  |  |
| a | Riverbed Technology Inc., pfd., A | United States | 2381 |  | 2381 |
|  | **Thrifts & Mortgage Finance 0.1%** |  |  |  |  |
|  | FHLMC, pfd., |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; O, 5.81% | United States | 9100 |  | 29711 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Z, 8.375% | United States | 2420 |  | 5324 |
|  | FNMA, pfd., |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>a</sup> O | United States | 8600 |  | 35690 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S, 8.25% | United States | 4475 |  | 10606 |
|  |  |  |  |  | 81331 |
|  | **Total Preferred Stocks (Cost $171,500)** |  |  |  | 83712 |
|  |  |  | **Principal Amount\*** | **Principal Amount\*** |  |
|  | **Convertible Bonds 1.5%** |  |  |  |  |
|  | **Airlines 0.2%** | **Airlines 0.2%** | **Airlines 0.2%** | **Airlines 0.2%** | **Airlines 0.2%** |
| e | Air France-KLM, senior note, Reg S, 0.125%, 3/25/26 | France | 9222 | EUR | 159292 |
|  | **Diversified Financial Services 0.1%** | **Diversified Financial Services 0.1%** | **Diversified Financial Services 0.1%** | **Diversified Financial Services 0.1%** | **Diversified Financial Services 0.1%** |
|  | Lendingtree Inc., senior note, 0.50%, 7/15/25 | United States | 89000 |  | 63831 |
|  | **Hotels, Restaurants & Leisure 0.2%** | **Hotels, Restaurants & Leisure 0.2%** | **Hotels, Restaurants & Leisure 0.2%** | **Hotels, Restaurants & Leisure 0.2%** | **Hotels, Restaurants & Leisure 0.2%** |
|  | Draftkings Holdings Inc., senior note, zero cpn., 3/15/28 | United States | 185000 |  | 119880 |
|  | **Internet & Direct Marketing Retail 0.6%** | **Internet & Direct Marketing Retail 0.6%** | **Internet & Direct Marketing Retail 0.6%** | **Internet & Direct Marketing Retail 0.6%** | **Internet & Direct Marketing Retail 0.6%** |
| e | Just Eat Takeaway.com NV, B, senior note, Reg S, 0.625%, 2/09/28 | United Kingdom | 300000 | EUR | 212148 |
|  | The Realreal Inc., senior note, 1.00%, 3/01/28 | United States | 55000 |  | 20625 |
|  | Spotify USA Inc., senior note, zero cpn., 3/15/26 | United States | 185000 |  | 148832 |
|  | Wayfair Inc., A, senior note, 0.625%, 10/01/25 | United States | 33000 |  | 21368 |
|  |  |  |  |  | 402973 |
|  | **Leisure Products 0.1%** | **Leisure Products 0.1%** | **Leisure Products 0.1%** | **Leisure Products 0.1%** | **Leisure Products 0.1%** |
|  | Peloton Interactive Inc., senior note, zero cpn., 2/15/26 | United States | 50000 |  | 35601 |

---

 <br> franklintempleton.com Semiannual Report 15

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Value** |
|  | **Convertible Bonds** (continued) | | | |
|  | **Real Estate Management & Development 0.3%** | **Real Estate Management & Development 0.3%** | **Real Estate Management & Development 0.3%** | **Real Estate Management & Development 0.3%** |
| e | Opendoor Technologies Inc., senior note, 144A, 0.25%, 8/15/26 | United States | 205000 | $86797 |
|  | Realogy Group LLC / Realogy Co.-Issuer Corp., senior note,<br>0.25%, 6/15/26 | United States | 122000 | 86132 |
|  | Redfin Corp., senior note, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.50%, 4/01/27 | United States | 78000 | 32760 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; zero cpn., 10/15/25 | United States | 35000 | 21175 |
|  |  |  |  | 226864 |
|  | **Total Convertible Bonds (Cost $1,176,501)** |  |  | 1008441 |
|  | **Corporate Bonds and Notes 32.8%** |  |  |  |
|  | **Airlines 0.8%** | **Airlines 0.8%** | **Airlines 0.8%** | **Airlines 0.8%** |
| e | Allegiant Travel Co., senior secured note, 144A, 7.25%, 8/15/27 | United States | 18000 | 17556 |
| e | American Airlines Group Inc., senior note, 144A, 3.75%, 3/01/25 | United States | 499000 | 437463 |
| e | Spirit Loyalty Cayman Ltd. / Spirit IP Cayman Ltd., senior secured note, 144A, 8.00%, 9/20/25 | United States | 61000 | 61896 |
|  |  |  |  | 516915 |
|  | **Automobiles 1.3%** | **Automobiles 1.3%** | **Automobiles 1.3%** | **Automobiles 1.3%** |
| e | Aston Martin Capital Holdings Ltd., senior secured note, 144A, 10.50%, 11/30/25 | United Kingdom | 400000 | 385700 |
|  | Ford Motor Credit Co. LLC, senior note, 5.125%, 6/16/25 | United States | 248000 | 240424 |
| e | Frontier Communications Holdings LLC, senior secured note, 144A, 8.75%, 5/15/30 | United States | 266000 | 275494 |
|  |  |  |  | 901618 |
|  | **Banks 0.7%** | **Banks 0.7%** | **Banks 0.7%** | **Banks 0.7%** |
|  | Bank of America Corp., senior bond, 2.972%, 2/04/33 | United States | 228000 | 186559 |
|  | Barclays PLC, senior bond, 7.437%, 11/02/33 | United Kingdom | 141000 | 149524 |
|  | HSBC Holdings PLC, senior note, 7.39%, 11/03/28 | United Kingdom | 109000 | 114377 |
|  |  |  |  | 450460 |
|  | **Capital Markets 0.5%** | **Capital Markets 0.5%** | **Capital Markets 0.5%** | **Capital Markets 0.5%** |
|  | Blackstone Private Credit Fund, senior note, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.70%, 3/24/25 | United States | 54000 | 52814 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.625%, 12/15/26 | United States | 58000 | 49312 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.25%, 3/15/27 | United States | 57000 | 49150 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup>144A, 7.05%, 9/29/25 | United States | 83000 | 83221 |
| e | Owl Rock Core Income Corp., senior note, 144A, 7.75%, 9/16/27 | United States | 108000 | 109309 |
|  |  |  |  | 343806 |
|  | **Chemicals 0.3%** | **Chemicals 0.3%** | **Chemicals 0.3%** | **Chemicals 0.3%** |
| e | Polar US Borrower LLC / Schenectady International Group Inc., senior note, 144A, 6.75%, 5/15/26 | United States | 500000 | 209418 |
|  | **Commercial Services & Supplies 0.2%** | **Commercial Services & Supplies 0.2%** | **Commercial Services & Supplies 0.2%** | **Commercial Services & Supplies 0.2%** |
| e | Verscend Escrow Corp., senior note, 144A, 9.75%, 8/15/26 | United States | 138000 | 138235 |
|  | **Communications Equipment 0.2%** | **Communications Equipment 0.2%** | **Communications Equipment 0.2%** | **Communications Equipment 0.2%** |
| e | Audacy Capital Corp., senior secured note, 144A, 6.75%, 3/31/29 | United States | 636000 | 144633 |
|  | **Construction Materials 0.5%** | **Construction Materials 0.5%** | **Construction Materials 0.5%** | **Construction Materials 0.5%** |
| e | SRM Escrow Issuer LLC, senior secured note, 144A, 6.00%, 11/01/28 | United States | 354000 | 315704 |
|  | **Containers & Packaging 0.5%** | **Containers & Packaging 0.5%** | **Containers & Packaging 0.5%** | **Containers & Packaging 0.5%** |
|  | Ball Corp., senior note, 6.875%, 3/15/28 | United States | 106000 | 109742 |
| e | Mauser Packaging Solutions Holding Co., senior secured note, 144A, 5.50%, 4/15/24 | United States | 199000 | 196542 |
|  |  |  |  | 306284 |

---

 <br> 16 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | | |
|  | **Diversified Consumer Services 0.5%** | | | | |
| e | The Hertz Corp., senior note, 144A, 4.625%, 12/01/26 | United States | 48000 |  | $41691 |
| e | Metis Merger Sub LLC, senior note, 144A, 6.50%, 5/15/29 | United States | 27000 |  | 22278 |
| e | Sabre GLBL Inc., senior secured note, 144A, 11.25%, 12/15/27 | United States | 35000 |  | 35897 |
| e | Sotheby's/Bidfair Holdings Inc., senior secured note, 144A, 5.875%, 6/01/29 | United States | 200000 |  | 166771 |
| e | United Rentals North America Inc., senior secured note, 144A, 6.00%, 12/15/29 | United States | 64000 |  | 64442 |
|  |  |  |  |  | 331079 |
|  | **Diversified Financial Services 2.2%** |  |  |  |  |
| e | AG Issuer LLC, senior secured note, 144A, 6.25%, 3/01/28 | United States | 248000 |  | 231655 |
| e | Finance of America Funding LLC, senior note, 144A, 7.875%, 11/15/25 | United States | 500000 |  | 304090 |
| e | Jane Street Group / JSG Finance Inc., senior secured note, 144A, 4.50%, 11/15/29 | United States | 463000 |  | 407035 |
| e | Medline Borrower LP, senior secured note, 144A, 3.875%, 4/01/29 | United States | 96000 |  | 82645 |
| e | MPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28 | United States | 226000 |  | 159109 |
| e | Vistajet Malta Finance PLC / XO Management Holding Inc., senior note, 144A, 6.375%, 2/01/30 | Switzerland | 355000 |  | 291544 |
|  |  |  |  |  | 1476078 |
|  | **Diversified Telecommunication Services 1.6%** |  |  |  |  |
| e | Altice France Holding SA, senior secured note, 144A, 10.50%, 5/15/27 | Luxembourg | 200000 |  | 158374 |
|  | British Telecommunications PLC, senior note, 4.50%, 12/04/23 | United Kingdom | 200000 |  | 198360 |
| e | Connect Finco Sarl / Connect US Finco LLC, senior secured note, 144A, 6.75%, 10/01/26 | United Kingdom | 92000 |  | 87090 |
| e | Level 3 Financing Inc., senior note, 144A, 4.625%, 9/15/27 | United States | 344000 |  | 290294 |
| e | Lorca Telecom Bondco SA, senior secured note, Reg S, 4.00%, 9/18/27 | Spain | 100000 | EUR | 94642 |
| e | VMED O2 UK Financing I PLC, senior secured bond, Reg S, 4.50%, 7/15/31 | United Kingdom | 248000 | GBP | 238748 |
| e | Zayo Group Holdings Inc., senior note, 144A, 6.125%, 3/01/28 | United States | 92000 |  | 50076 |
|  |  |  |  |  | 1117584 |
|  | **Electric Utilities 1.3%** |  |  |  |  |
| e | EP Infrastructure AS, senior note, Reg S, 1.698%, 7/30/26 | Czech Republic | 100000 | EUR | 83932 |
| e | Eskom Holdings SOC Ltd., senior bond, Reg S, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.75%, 8/06/23 | South Africa | 252000 |  | 246582 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.125%, 2/11/25 | South Africa | 400000 |  | 377066 |
|  | Pacific Gas and Electric Co., secured bond, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.95%, 7/01/50 | United States | 200000 |  | 160404 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.50%, 8/01/50 | United States | 63000 |  | 40955 |
|  |  |  |  |  | 908939 |
|  | **Energy Equipment & Services 0.4%** |  |  |  |  |
| e | Solaris Midstream Holdings LLC, senior note, 144A, 7.625%, 4/01/26 | United States | 264000 |  | 260346 |
|  | **Entertainment 0.5%** |  |  |  |  |
| e,f | AMC Entertainment Holdings Inc., senior secured note, 144A, PIK, 10.00% (cash) 6/15/26 | United States | 242000 |  | 90896 |
| e | Netflix Inc., senior bond, 144A, 4.875%, 6/15/30 | United States | 278000 |  | 262970 |
|  |  |  |  |  | 353866 |
|  | **Equity Real Estate Investment Trusts (REITs) 0.8%** |  |  |  |  |
|  | Service Properties Trust, senior bond, 4.50%, 6/15/23 | United States | 124000 |  | 123070 |

---

 <br> franklintempleton.com Semiannual Report 17

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | | | |
|  | **Equity Real Estate Investment Trusts (REITs)** (continued) | | | | | |
| e | Uniti Group LP / Uniti Fiber Holdings Inc. / CSL Capital LLC, senior note, 144A, 6.00%, 1/15/30 | United States | 241000 |  | $| 174315 |
| e | Vici Properties LP / Vici Note Co. Inc., 144A, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 4.125%, 8/15/30 | United States | 171000 |  |  | 148400 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 5.625%, 5/01/24 | United States | 24000 |  |  | 23798 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 4.25%, 12/01/26 | United States | 47000 |  |  | 43779 |
|  |  |  |  |  |  | 513362 |
|  | **Food & Staples Retailing 0.6%** | **Food & Staples Retailing 0.6%** | **Food & Staples Retailing 0.6%** | **Food & Staples Retailing 0.6%** | **Food & Staples Retailing 0.6%** | **Food & Staples Retailing 0.6%** |
| e | Albertsons Cos. Inc. / Safeway Inc. / New Albertsons LP / Albertsons LLC, senior note, 144A, 4.625%, 1/15/27 | United States | 47000 |  |  | 43535 |
| e | Chobani LLC / Chobani Finance Corp. Inc., senior note, 144A, 7.50%, 4/15/25 | United States | 383000 |  |  | 374853 |
|  |  |  |  |  |  | 418388 |
|  | **Gas Utilities 0.1%** | **Gas Utilities 0.1%** | **Gas Utilities 0.1%** | **Gas Utilities 0.1%** | **Gas Utilities 0.1%** | **Gas Utilities 0.1%** |
| e | Eustream AS, senior note, Reg S, 1.625%, 6/25/27 | Slovak Republic | 100000 | EUR |  | 68586 |
|  | **Health Care Providers & Services 1.1%** | **Health Care Providers & Services 1.1%** | **Health Care Providers & Services 1.1%** | **Health Care Providers & Services 1.1%** | **Health Care Providers & Services 1.1%** | **Health Care Providers & Services 1.1%** |
| e | Global Medical Response Inc., senior secured note, 144A, 6.50%, 10/01/25 | United States | 236000 |  |  | 178014 |
|  | HCA Inc., |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> senior bond, 144A, 4.625%, 3/15/52 | United States | 88000 |  |  | 71079 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured bond, 3.50%, 7/15/51 | United States | 109000 |  |  | 73843 |
| e | LifePoint Health Inc., senior note, 144A, 5.375%, 1/15/29 | United States | 187000 |  |  | 110015 |
| e | RP Escrow Issuer LLC, senior secured note, 144A, 5.25%, 12/15/25 | United States | 283000 |  |  | 237352 |
| e | Universal Health Services Inc., senior secured note, 144A, 1.65%, 9/01/26 | United States | 88000 |  |  | 75571 |
|  |  |  |  |  |  | 745874 |
|  | **Health Care Technology 0.5%** | **Health Care Technology 0.5%** | **Health Care Technology 0.5%** | **Health Care Technology 0.5%** | **Health Care Technology 0.5%** | **Health Care Technology 0.5%** |
| c,e | Cloud Software Group Holdings Inc., senior secured note, 144A, 6.50%, 3/31/29 | United States | 280000 |  |  | 244976 |
| e | Open Text Corp., senior secured note, 144A, 6.90%, 12/01/27 | Canada | 80000 |  |  | 80197 |
|  |  |  |  |  |  | 325173 |
|  | **Hotels, Restaurants & Leisure 1.3%** | **Hotels, Restaurants & Leisure 1.3%** | **Hotels, Restaurants & Leisure 1.3%** | **Hotels, Restaurants & Leisure 1.3%** | **Hotels, Restaurants & Leisure 1.3%** | **Hotels, Restaurants & Leisure 1.3%** |
| e | Carnival Corp., 144A, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 7.625%, 3/01/26 | United States | 102000 |  |  | 86134 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 6.00%, 5/01/29 | United States | 96000 |  |  | 68282 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 9.875%, 8/01/27 | United States | 64000 |  |  | 62560 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 4.00%, 8/01/28 | United States | 93000 |  |  | 77562 |
| e | Carnival Holdings Bermuda Ltd., senior note, 144A, 10.375%, 5/01/28 | United States | 195000 |  |  | 203340 |
| e | Lions Gate Capital Holdings LLC, senior note, 144A, 5.50%, 4/15/29 | United States | 302000 |  |  | 196699 |
| e | Royal Caribbean Cruises Ltd., 144A, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior secured note, 8.25%, 1/15/29 | United States | 130000 |  |  | 132119 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 9.25%, 1/15/29 | United States | 81000 |  |  | 83009 |
|  |  |  |  |  |  | 909705 |
|  | **Household Durables 1.0%** | **Household Durables 1.0%** | **Household Durables 1.0%** | **Household Durables 1.0%** | **Household Durables 1.0%** | **Household Durables 1.0%** |
| e | K. Hovnanian Enterprises Inc., senior secured note, 144A, |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.75%, 2/15/26 | United States | 446000 |  |  | 440104 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.50%, 2/15/26 | United States | 250000 |  |  | 245029 |
|  |  |  |  |  |  | 685133 |

---

 <br> 18 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | | |
|  | **Internet & Direct Marketing Retail 1.3%** | **Internet & Direct Marketing Retail 1.3%** | **Internet & Direct Marketing Retail 1.3%** | **Internet & Direct Marketing Retail 1.3%** | **Internet & Direct Marketing Retail 1.3%** |
|  | Amazon.com Inc., senior bond, 2.70%, 6/03/60 | United States | 470000 |  | $297895 |
| e | Meta Platforms Inc., senior note, 144A, 3.50%, 8/15/27 | United States | 294000 |  | 276483 |
| e | Prosus NV, Reg S, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 1.985%, 7/13/33 | China | 127000 | EUR | 87328 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 2.778%, 1/19/34 | China | 100000 | EUR | 72659 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior note, 3.257%, 1/19/27 | China | 100000 |  | 87985 |
| e | Rakuten Group Inc., senior note, 144A, 10.25%, 11/30/24 | Japan | 88000 |  | 86728 |
|  |  |  |  |  | 909078 |
|  | **IT Services 0.7%** | **IT Services 0.7%** | **IT Services 0.7%** | **IT Services 0.7%** | **IT Services 0.7%** |
| e | Hurricane Finance PLC, senior secured note, Reg S, 8.00%, 10/15/25 | United Kingdom | 234000 | GBP | 266517 |
| e | Virtusa Corp., senior note, 144A, 7.125%, 12/15/28 | United States | 286000 |  | 214986 |
|  |  |  |  |  | 481503 |
|  | **Leisure Products 0.4%** | **Leisure Products 0.4%** | **Leisure Products 0.4%** | **Leisure Products 0.4%** | **Leisure Products 0.4%** |
| e | Life Time Inc., senior secured note, 144A, 5.75%, 1/15/26 | United States | 25000 |  | 24074 |
| e | Mattel Inc., senior note, 144A, 3.375%, 4/01/26 | United States | 280000 |  | 257458 |
|  |  |  |  |  | 281532 |
|  | **Machinery 0.4%** | **Machinery 0.4%** | **Machinery 0.4%** | **Machinery 0.4%** | **Machinery 0.4%** |
| e | TK Elevator US Newco Inc., senior secured note, 144A, 5.25%, 7/15/27 | Germany | 264000 |  | 239975 |
|  | **Media 2.9%** | **Media 2.9%** | **Media 2.9%** | **Media 2.9%** | **Media 2.9%** |
| e | Advantage Sales & Marketing Inc., senior secured note, 144A, 6.50%, 11/15/28 | United States | 139000 |  | 109046 |
| e | CCO Holdings LLC / CCO Holdings Capital Corp., senior bond, 144A, 5.00%, 2/01/28 | United States | 40000 |  | 36837 |
|  | Charter Communications Operating LLC / Charter Communications Operating Capital, senior secured bond, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.50%, 3/01/42 | United States | 126000 |  | 85538 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.484%, 10/23/45 | United States | 353000 |  | 333031 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.95%, 6/30/62 | United States | 281000 |  | 175835 |
|  | CSC Holdings LLC, senior bond, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 144A, 5.50%, 4/15/27 | United States | 58000 |  | 53214 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 144A, 5.375%, 2/01/28 | United States | 34000 |  | 30480 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 6/01/24 | United States | 88000 |  | 84903 |
| e | DISH DBS Corp., senior secured note, 144A, 5.75%, 12/01/28 | United States | 350000 |  | 284524 |
| e | Dish Network Corp., senior secured note, 144A, 11.75%, 11/15/27 | United States | 185000 |  | 190380 |
| e | iHeartCommunications Inc., senior secured note, 144A, 4.75%, 1/15/28 | United States | 240000 |  | 207277 |
|  | Liberty Interactive LLC, senior bond, 8.25%, 2/01/30 | United States | 360000 |  | 180657 |
|  | TEGNA Inc., senior note, 4.625%, 3/15/28 | United States | 185000 |  | 174712 |
|  |  |  |  |  | 1946434 |
|  | **Metals & Mining 0.5%** | **Metals & Mining 0.5%** | **Metals & Mining 0.5%** | **Metals & Mining 0.5%** | **Metals & Mining 0.5%** |
|  | Arcelormittal SA, senior bond, 6.80%, 11/29/32 | Luxembourg | 44000 |  | 44505 |
| e | Taseko Mines Ltd., senior secured note, 144A, 7.00%, 2/15/26 | Canada | 387000 |  | 325422 |
|  |  |  |  |  | 369927 |
|  | **Mortgage Real Estate Investment Trusts (REITs) 0.6%** | **Mortgage Real Estate Investment Trusts (REITs) 0.6%** | **Mortgage Real Estate Investment Trusts (REITs) 0.6%** | **Mortgage Real Estate Investment Trusts (REITs) 0.6%** | **Mortgage Real Estate Investment Trusts (REITs) 0.6%** |
| e | Apollo Commercial Real Estate Finance Inc., senior secured note, 144A, 4.625%, 6/15/29 | United States | 355000 |  | 283232 |
| e | Rithm Capital Corp., senior note, 144A, 6.25%, 10/15/25 | United States | 149000 |  | 134780 |
|  |  |  |  |  | 418012 |
|  | **Multiline Retail 0.2%** | **Multiline Retail 0.2%** | **Multiline Retail 0.2%** | **Multiline Retail 0.2%** | **Multiline Retail 0.2%** |
|  | Kohl's Corp., senior bond, 5.55%, 7/17/45 | United States | 156000 |  | 103528 |

---

 <br> franklintempleton.com Semiannual Report 19

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | |
|  | **Oil, Gas & Consumable Fuels 3.1%** | **Oil, Gas & Consumable Fuels 3.1%** | **Oil, Gas & Consumable Fuels 3.1%** | **Oil, Gas & Consumable Fuels 3.1%** |
| e | Aethon United BR LP / Aethon United Finance Corp., senior note, 144A, 8.25%, 2/15/26 | United States | 74000 | $73726 |
| e | Callon Petroleum Co., senior note, 144A, 8.00%, 8/01/28 | United States | 36000 | 35609 |
|  | Energy Transfer LP, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 6.125%, 12/15/45 | United States | 49000 | 46539 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 6.00%, 6/15/48 | United States | 73000 | 67253 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 6.25%, 4/15/49 | United States | 40000 | 37950 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; senior bond, 5.00%, 5/15/50 | United States | 64000 | 52848 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>g</sup> junior sub. note, H, 6.50% to 11/15/26, FRN thereafter, Perpetual | United States | 120000 | 103581 |
|  | Laredo Petroleum Inc., senior note, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.50%, 1/15/25 | United States | 22000 | 22032 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.125%, 1/15/28 | United States | 24000 | 24318 |
| e | Moss Creek Resources Holdings Inc., senior note, 144A, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.50%, 1/15/26 | United States | 46000 | 42862 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.50%, 5/15/27 | United States | 107000 | 105395 |
| e | New Fortress Energy Inc., senior secured note, 144A, 6.75%, 9/15/25 | United States | 373000 | 364917 |
| e | NGL Energy Operating LLC / NGL Energy Finance Corp., senior secured note, 144A, 7.50%, 2/01/26 | United States | 354000 | 320144 |
| e | Northern Oil And Gas Inc., senior note, 144A, 8.125%, 3/01/28 | United States | 31000 | 30305 |
|  | Petroleos Mexicanos, senior bond, 6.75%, 9/21/47 | Mexico | 238000 | 151507 |
| e | Rockies Express Pipeline LLC, senior bond, 144A, 4.95%, 7/15/29 | United States | 22000 | 19823 |
|  | Southwestern Energy Co., senior bond, 4.75%, 2/01/32 | United States | 278000 | 243365 |
| e | Venture Global Calcasieu Pass LLC, senior secured bond, 144A, 3.875%, 11/01/33 | United States | 381000 | 310515 |
|  | The Williams Cos. Inc., senior bond, 3.50%, 10/15/51 | United States | 95000 | 67352 |
|  |  |  |  | 2120041 |
|  | **Pharmaceuticals 1.7%** | **Pharmaceuticals 1.7%** | **Pharmaceuticals 1.7%** | **Pharmaceuticals 1.7%** |
| e | 1375209 Bc Ltd., senior secured note, 144A, 9.00%, 1/30/28 | Canada | 171000 | 168862 |
| e | Bausch Health Cos. Inc., senior secured note, 144A, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>c</sup> 5.50%, 11/01/25 | United States | 167000 | 141344 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.00%, 9/30/28 | United States | 610000 | 471225 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14.00%, 10/15/30 | United States | 122000 | 68296 |
| e | Organon & Co. / Organon Foreign Debt Co.-Issuer BV, senior bond, 144A, 5.125%, 4/30/31 | United States | 355000 | 315417 |
|  |  |  |  | 1165144 |
|  | **Professional Services 0.3%** | **Professional Services 0.3%** | **Professional Services 0.3%** | **Professional Services 0.3%** |
| e | Corelogic Inc., senior secured note, 144A, 4.50%, 5/01/28 | United States | 239000 | 176694 |
|  | **Real Estate Management & Development 0.5%** | **Real Estate Management & Development 0.5%** | **Real Estate Management & Development 0.5%** | **Real Estate Management & Development 0.5%** |
| e | The Howard Hughes Corp., senior note, 144A, 5.375%, 8/01/28 | United States | 176000 | 159466 |
| e | Hunt Cos. Inc., senior secured note, 144A, 5.25%, 4/15/29 | United States | 252000 | 209415 |
|  |  |  |  | 368881 |
|  | **Semiconductors & Semiconductor Equipment 0.5%** | **Semiconductors & Semiconductor Equipment 0.5%** | **Semiconductors & Semiconductor Equipment 0.5%** | **Semiconductors & Semiconductor Equipment 0.5%** |
|  | Intel Corp., senior bond, 3.05%, 8/12/51 | United States | 235000 | 160332 |
|  | NVIDIA Corp., senior bond, 2.85%, 4/01/30 | United States | 235000 | 207668 |
|  |  |  |  | 368000 |
|  | **Software 0.6%** | **Software 0.6%** | **Software 0.6%** | **Software 0.6%** |
|  | Microsoft Corp., senior bond, 2.525%, 6/01/50 | United States | 235000 | 162197 |
|  | Oracle Corp., senior bond, |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.60%, 4/01/40 | United States | 57000 | 42884 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.60%, 4/01/50 | United States | 156000 | 108782 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.85%, 4/01/60 | United States | 121000 | 81790 |
|  |  |  |  | 395653 |

---

 <br> 20 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** |
|  | **Corporate Bonds and Notes** (continued) | | | | |
|  | **Specialty Retail 2.1%** | **Specialty Retail 2.1%** | **Specialty Retail 2.1%** | **Specialty Retail 2.1%** | **Specialty Retail 2.1%** |
| e | Abercrombie & Fitch Management Co., senior secured note, 144A, 8.75%, 7/15/25 | United States | 124000 |  | $123532 |
|  | Bath & Body Works Inc., senior bond, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.875%, 11/01/35 | United States | 35000 |  | 31723 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.75%, 7/01/36 | United States | 48000 |  | 42210 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>e</sup> 144A, 6.625%, 10/01/30 | United States | 66000 |  | 61875 |
| e | Carvana Co., senior note, 144A, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.625%, 10/01/25 | United States | 303000 |  | 136879 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.50%, 4/15/27 | United States | 72000 |  | 25971 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.875%, 10/01/28 | United States | 65000 |  | 22923 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.875%, 9/01/29 | United States | 129000 |  | 43355 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.25%, 5/01/30 | United States | 323000 |  | 137654 |
| e | Douglas GMBH, senior secured note, Reg S, 6.00%, 4/08/26 | Germany | 731000 | EUR | 635053 |
| e | Guitar Center Inc., senior secured note, 144A, 8.50%, 1/15/26 | United States | 151000 |  | 132311 |
|  |  |  |  |  | 1393486 |
|  | **Telecommunications 0.1%** | **Telecommunications 0.1%** | **Telecommunications 0.1%** | **Telecommunications 0.1%** | **Telecommunications 0.1%** |
|  | Embarq Corp., senior bond, 7.995%, 6/01/36 | United States | 138000 |  | 58869 |
|  | **Total Corporate Bonds and Notes (Cost $25,139,698)** |  |  |  | 22237943 |
| h,i | **Senior Floating Rate Interests 0.7%** |  |  |  |  |
|  | **Communications Equipment 0.1%** | **Communications Equipment 0.1%** | **Communications Equipment 0.1%** | **Communications Equipment 0.1%** | **Communications Equipment 0.1%** |
| f | Riverbed Technology Inc., Exit Term Loan, PIK, 7.00% (cash), (1-Month USD LIBOR + 6.00%) 12/08/26 | United States | 88477 |  | 37413 |
|  | **Consumer Discretionary Services 0.2%** | **Consumer Discretionary Services 0.2%** | **Consumer Discretionary Services 0.2%** | **Consumer Discretionary Services 0.2%** | **Consumer Discretionary Services 0.2%** |
|  | Travel Leaders Group LLC, Term Loan B, 8.071%, (1-Month USD LIBOR + 4.00%), 1/25/24 | United States | 140784 |  | 128671 |
|  | **Equity Real Estate Investment Trusts (REITs) 0.1%** | **Equity Real Estate Investment Trusts (REITs) 0.1%** | **Equity Real Estate Investment Trusts (REITs) 0.1%** | **Equity Real Estate Investment Trusts (REITs) 0.1%** | **Equity Real Estate Investment Trusts (REITs) 0.1%** |
|  | McCarthy & Stone PLC, Term Loan B, 7.00%, (1-Month USD LIBOR + 7.00%), 12/16/25 | United Kingdom | 50969 | GBP | 53137 |
|  | **Food & Staples Retailing 0.1%** | **Food & Staples Retailing 0.1%** | **Food & Staples Retailing 0.1%** | **Food & Staples Retailing 0.1%** | **Food & Staples Retailing 0.1%** |
| j | Upfield Group BV, Term Loan RC, 4.492%, (3-Month EURIBOR + 3.00%), 1/02/25 | Netherlands | 67209 |  | 58573 |
|  | **Health Care Equipment & Supplies 0.0%<sup>†</sup>** | **Health Care Equipment & Supplies 0.0%<sup>†</sup>** | **Health Care Equipment & Supplies 0.0%<sup>†</sup>** | **Health Care Equipment & Supplies 0.0%<sup>†</sup>** | **Health Care Equipment & Supplies 0.0%<sup>†</sup>** |
|  | Bausch & Lomb Corp., Initial Term Loan, 7.149%, (1-Month SOFR + 3.35%), 5/10/27 | United States | 38497 |  | 36601 |
|  | **Media 0.0%<sup>†</sup>** | **Media 0.0%<sup>†</sup>** | **Media 0.0%<sup>†</sup>** | **Media 0.0%<sup>†</sup>** | **Media 0.0%<sup>†</sup>** |
|  | Advantage Sales & Marketing Inc., Term Loan B1, 8.284%, (3-Month USD LIBOR + 4.50%), 10/28/27 | United States | 34140 |  | 27683 |
|  | Altice USA Inc., Term Loan B, 6.123%, (1-Month USD LIBOR + 2.25%), 1/15/26 | United States | 7032 |  | 6721 |
|  |  |  |  |  | 34404 |
|  | **Pharmaceuticals 0.1%** | **Pharmaceuticals 0.1%** | **Pharmaceuticals 0.1%** | **Pharmaceuticals 0.1%** | **Pharmaceuticals 0.1%** |
| j | Bausch Health Cos. Inc., Term Loan B, 9.146%, (1-Month SOFR + 5.25%), 2/01/27 | United States | 75731 |  | 56751 |
|  | **Software 0.1%** | **Software 0.1%** | **Software 0.1%** | **Software 0.1%** | **Software 0.1%** |
| j | Citrix Systems Inc., Term Loan B, 8.153%, (1-Month SOFR + 4.50%), 3/30/29 | United States | 79921 |  | 72800 |
|  | **Textiles, Apparel & Luxury Goods 0.0%<sup>†</sup>** | **Textiles, Apparel & Luxury Goods 0.0%<sup>†</sup>** | **Textiles, Apparel & Luxury Goods 0.0%<sup>†</sup>** | **Textiles, Apparel & Luxury Goods 0.0%<sup>†</sup>** | **Textiles, Apparel & Luxury Goods 0.0%<sup>†</sup>** |
| j | Varsity Brands, Initial Term Loan, 7.571%, (1-Month USD LIBOR + 3.50%), 12/16/24 | United States | 4859 |  | 4675 |
|  | **Total Senior Floating Rate Interests (Cost $590,468)** |  |  |  | 483025 |

---

 <br> franklintempleton.com Semiannual Report 21

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** |
|  | **Foreign Government and Agency Securities 4.7%** | | | | |
| e | Government of Angola, senior bond, Reg S, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.00%, 11/26/29 | Angola | 274000 |  | $249271 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.375%, 5/08/48 | Angola | 200000 |  | 167655 |
|  | Government of Argentina, senior bond, 1.50%, 7/09/35 | Argentina | 1670495 |  | 392587 |
| e | Government of Dominican Republic, senior bond, Reg S, 5.875%, 1/30/60 | Dominican Republic | 300000 |  | 223875 |
| e | Government of Germany, senior bond, Reg S, zero cpn., 2/15/32 | Germany | 76500 | EUR | 66824 |
| e | Government of Iraq, senior bond, Reg S, 5.80%, 1/15/28 | Iraq | 171875 |  | 154689 |
| c | Government of Italy, senior note, 2.375%, 10/17/24 | Italy | 373000 |  | 350054 |
| e | Government of Nigeria, senior note, Reg S, 8.375%, 3/24/29 | Nigeria | 224000 |  | 187317 |
| e | Government of Oman, senior bond, Reg S, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.25%, 1/25/31 | Oman | 200000 |  | 199842 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.75%, 1/17/48 | Oman | 216000 |  | 198549 |
|  | Government of South Africa, senior bond, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.50%, 12/21/26 | South Africa | 6839116 | ZAR | 419723 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.75%, 2/28/48 | South Africa | 6057183 | ZAR | 275865 |
| e | Government of Ukraine, senior bond, Reg S, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.253%, 3/15/35 | Ukraine | 200000 |  | 43002 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.375%, 9/25/34 | Ukraine | 622000 |  | 134588 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.75%, 9/01/26 | Ukraine | 200000 |  | 47806 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; zero cpn., 8/01/41 | Ukraine | 208000 |  | 63826 |
|  | **Total Foreign Government and Agency Securities (Cost $3,747,303)** |  |  |  | 3175473 |
|  | **U.S. Government and Agency Securities 2.4%** |  |  |  |  |
|  | U.S. Treasury Bond, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.25%, 2/15/52 | United States | 56900 |  | 41108 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 5/15/52 | United States | 193500 |  | 160907 |
|  | U.S. Treasury Note, |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 8/31/27 | United States | 881500 |  | 854676 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.125%, 10/31/27 | United States | 63200 |  | 64012 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 9/30/29 | United States | 50000 |  | 50356 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 10/31/29 | United States | 11000 |  | 11169 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.875%, 2/15/32 | United States | 79800 |  | 68734 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 5/15/32 | United States | 48800 |  | 45750 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.75%, 8/15/32 | United States | 257300 |  | 238364 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.125%, 11/15/32 | United States | 68900 |  | 71602 |
|  | **Total U.S. Government and Agency Securities (Cost $1,632,737)** |  |  |  | 1606678 |
|  | **Asset-Backed Securities and Commercial<br>Mortgage-Backed Securities 35.6%** |  |  |  |  |
|  | **Diversified Financial Services 15.8%** |  |  |  |  |
| e,k | AMSR Trust, 2021-SFR1, G, 144A, FRN, 4.612%, 6/17/38 | United States | 500000 |  | 397166 |
| e,i | Catskill Park CLO Ltd., 2017-1A, C, 144A, FRN, 7.943%, (3-Month USD LIBOR + 3.70%), 4/20/29 | United States | 1000000 |  | 933894 |
|  | CitiMortgage Alternative Loan Trust, 2007-A1, 2A1, 5.50%, 1/25/22 | United States | 13026 |  | 11696 |
| e,i | Connecticut Avenue Securities Trust, 2022-R07, 1B1, 144A, FRN, 10.347%, (SOFR + 6.80%), 6/25/42 | United States | 13532 |  | 13838 |
| e,i | FHLMC, 2022-DNA1, M1B, 144A, FRN, 5.371%, (SOFR + 1.85%), 1/25/42 | United States | 15000 |  | 13741 |
| e | FRTKL, 2021-SFR1, G, 144A, 4.105%, 9/17/38 | United States | 990000 |  | 828142 |
| e,i | GSMSC Pass-Through Trust, 2009-4R, 2A3, 144A, FRN, 4.036%, (1-Month USD LIBOR + 0.45%), 12/26/36 | United States | 575179 |  | 407051 |
| e,i | KREF Ltd., 2021-FL2, C, 144A, FRN, 5.911%, (1-Month USD LIBOR + 2.00%), 2/15/39 | United States | 500000 |  | 469223 |

---

 <br> 22 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Value** |
|  | **Asset-Backed Securities and Commercial<br>Mortgage-Backed Securities** (continued) | | | |
|  | **Diversified Financial Services** (continued) | | | |
| e,i | Marathon CLO VI Ltd., 2018-6A, CR2, 144A, FRN, 8.15%, (3-Month USD LIBOR + 3.50%), 5/13/28 | United States | 980000 | $949174 |
| e,i | Mountain View CLO Ltd., 2018-1A, DRR, 144A, FRN, 7.729%, (3-Month USD LIBOR + 3.65%), 10/15/26 | United States | 1290000 | 1282493 |
| e,i | OCP CLO Ltd., 2021-8RA, C, 144A, FRN, 7.829%, (3-Month USD LIBOR + 3.75%), 1/17/32 | United States | 1000000 | 923029 |
| e | S-Jets Ltd., 2017-1, A, 144A, 3.967%, 8/15/42 | Bermuda | 2138769 | 1646761 |
| k | STARM Mortgage Loan Trust, 2007-2, 4A1, FRN, 2.414%, 4/25/37 | United States | 42852 | 24724 |
| e | Stellar Jay Ireland DAC, 2021-1, B, 144A, 5.926%, 10/15/41 | Ireland | 946940 | 779641 |
| i | Suntrust Alternative Loan Trust, 2005-1F, 1A1, FRN, 4.694%, (1-Month USD LIBOR + 0.65%), 12/25/35 | United States | 78770 | 66755 |
| e | Thunderbolt II Aircraft Lease Ltd., 2018-A, A, 144A, 4.147%, 9/15/38 | United States | 1439515 | 1091103 |
| e,i | VMC Finance LLC, 2019-FL3, C, 144A, FRN, 5.961%, (1-Month USD LIBOR + 2.05%), 9/15/36 | United States | 880961 | 838561 |
|  | Wells Fargo Alternative Loan Trust, 2007-PA3, 2A2, 6.00%, 7/25/37 | United States | 88595 | 74238 |
|  |  |  |  | 10751230 |
|  | **Mortgage Real Estate Investment Trusts (REITs) 19.8%** |  |  |  |
| k | American Home Mortgage Assets Trust, 2005-1, 1A1, FRN, 3.333%, 11/25/35 | United States | 102010 | 78354 |
| e,k | Avenue of The Americas Trust, 2015-1211, E, 144A, FRN, 4.28%, 8/10/35 | United States | 150000 | 123581 |
| k | Banc of America Mortgage Trust, FRN,<br>2005-K, 2A1, 3.419%, 12/25/35 | United States | 113979 | 99840 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2005-L, 1A1, 2.661%, 1/25/36 | United States | 87372 | 72916 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2005-L, 3A1, 2.629%, 1/25/36 | United States | 63513 | 57809 |
| e,i | BBCMS Mortgage Trust, 2019-BWAY, E, 144A, FRN, 6.725%, (1-Month USD LIBOR + 2.85%), 11/15/34 | United States | 2000000 | 1675273 |
| e,k | BCAP LLC Trust, 2010-RR1, 1A4, 144A, FRN, 3.222%, 3/26/37 | United States | 178602 | 140478 |
| k | Bear Stearns ARM Trust, FRN,<br>2002-11, 1A2, 3.25%, 2/25/33 | United States | 1461 | 1136 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2006-2, 4A1, 3.28%, 7/25/36 | United States | 30998 | 25937 |
| e,i | BXMT Ltd., 2021-FL4, C, 144A, FRN, 5.625%, (1-Month USD LIBOR + 1.75%), 5/15/38 | United States | 500000 | 468079 |
| k | Citigroup Mortgage Loan Trust, 2007-AR5, 2A1A, FRN, 3.543%, 4/25/37 | United States | 75027 | 63728 |
|  | Countrywide Alternative Loan Trust,<br>2005-73CB, 1A2, 6.25%, 1/25/36 | United States | 109947 | 103695 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2005-J10, 2A4, 6.00%, 10/25/35 | United States | 388701 | 198764 |
| k | Credit Suisse First Boston Mortgage Securities Corp., 2004-AR3, CB2, FRN, 3.061%, 4/25/34 | Switzerland | 103865 | 87054 |
|  | CSMC Mortgage-Backed Trust, 2006-4, 9A1, 6.50%, 5/25/36 | United States | 718280 | 292763 |
| e,k | FARM Mortgage Trust, 2021-1, B, 144A, FRN, 3.238%, 7/25/51 | United States | 896953 | 650341 |
| e,i | Federal Home Loan Mortgage Corp., 2021-DNA6, B1, 144A, FRN, 6.947%, (SOFR + 3.40%), 10/25/41 | United States | 20429 | 18414 |
| i | FREMF Mortgage Trust, 2018-KF52, B, FRN, 5.755%, (1-Month USD LIBOR + 1.95%), 9/25/28 | United States | 402167 | 396423 |
|  | GSR Mortgage Loan Trust, 2004-6F, 2A4, 5.50%, 5/25/34 | United States | 73623 | 70454 |
|  | Impac CMB Trust,<br>2004-4, 2A2, 5.357%, 9/25/34 | United States | 115477 | 115692 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>i</sup>2004-8, 3B, FRN, 6.211%, (1-Month USD LIBOR + 2.63%), 8/25/34 | United States | 91136 | 79179 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>i</sup>2005-2, 2B, FRN, 6.519%, (1-Month USD LIBOR + 2.48%), 4/25/35 | United States | 52747 | 46851 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>i</sup>2005-4, 2M1, FRN, 4.766%, (1-Month USD LIBOR + 0.50%), 5/25/35 | United States | 138076 | 109802 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>i</sup>2005-8, 2B, FRN, 6.294%, (1-Month USD LIBOR + 2.25%), 2/25/36 | United States | 66692 | 58630 |

---

 <br> franklintempleton.com Semiannual Report 23

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Value** |
|  | **Asset-Backed Securities and Commercial<br>Mortgage-Backed Securities** (continued) | | | |
|  | **Mortgage Real Estate Investment Trusts (REITs)** (continued) | | | |
| i | IndyMac INDX Mortgage Loan Trust, FRN,<br>2006-AR12, A1, 4.424%, (1-Month USD LIBOR + 0.38%), 9/25/46 | United States | 136634 | $117744 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2006-AR29, A2, 4.204%, (1-Month USD LIBOR + 0.16%), 11/25/36 | United States | 232937 | 217557 |
| k | JPMBB Commercial Mortgage Securities Trust, 2015-C31, D, FRN, 4.276%, 8/15/48 | United States | 702000 | 583421 |
| k | JPMorgan Mortgage Trust, FRN,<br>2006-A5, 6A1, 3.723%, 8/25/36 | United States | 162882 | 129012 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2006-A7, 2A3, 3.702%, 1/25/37 | United States | 68146 | 52546 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2007-A2, 2A1, 3.46%, 4/25/37 | United States | 94888 | 69786 |
| b | Lehman Mortgage Trust, 2005-3, 2A3, 5.50%, 1/25/36 | United States | 53799 | 40328 |
| k | MASTR Adjustable Rate Mortgages Trust, 2004-10, B1, FRN, 3.504%, 10/25/34 | United States | 418901 | 352142 |
| k | MASTR Alternative Loan Trust, 2007-HF1, 3A1, FRN, 2.838%, 10/25/47 | United States | 468937 | 308090 |
| e,i | Morgan Stanley Capital I Trust, 2018-BOP, E, 144A, FRN, 5.825%, (1-Month USD LIBOR + 1.95%), 6/15/35 | United States | 1200000 | 1128847 |
| k | RFMSI Trust, 2007-SA2, 3A, FRN, 5.25%, 4/25/37 | United States | 704743 | 186789 |
| e,i | STACR Trust, 2018-HRP1, B2, 144A, FRN, 15.766%, (1-Month USD LIBOR + 11.75%), 5/25/43 | United States | 1913138 | 1985759 |
| k | Structured ARM Loan Trust, 2004-4, B1, FRN, 4.03%, 4/25/34 | United States | 443059 | 367222 |
|  | WaMu Mortgage Pass-Through Certificates Series Trust, FRN,<br><sup>k</sup>2003-AR3, B1, 3.72%, 6/25/33 | United States | 194578 | 171424 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>i</sup>2005-AR11, B1, 4.959%, (1-Month USD LIBOR + 0.92%), 8/25/45 | United States | 1059000 | 842559 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>i</sup>2006-4, 3A2B, 4.204%, (1-Month USD LIBOR + 0.16%), 5/25/36 | United States | 183947 | 155458 |
| e,k | WFRBS Commercial Mortgage Trust, 2014-C22, D, 144A, FRN, 4.056%, 9/15/57 | United States | 2000000 | 1680262 |
|  |  |  |  | 13424139 |
|  | **Total Asset-Backed Securities and Commercial Mortgage-Backed Securities<br>(Cost $26,999,547)** |  |  | 24175369 |
|  |  | **Number of<br>Contracts** | **Notional Amount<sup>#</sup>** |  |
|  | **Options Purchased 0.1%** |  |  |  |
|  | **Calls – Exchange-Traded 0.0%<sup>†</sup>** |  |  |  |
|  | Alibaba Group Holding Ltd., January Strike Price $90.00, Expires 1/20/23 | 6 | 52536 | 4230 |
|  | Carvana Co., December Strike Price $20.00, Expires 12/16/22 | 22 | 16962 | 88 |
|  | Carvana Co., March Strike Price $20.00, Expires 3/17/23 | 11 | 8481 | 528 |
|  | CBOE Volatility Index, December Strike Price $30.00, Expires 12/21/22 | 240 | 493920 | 10320 |
|  | JD.com Inc., December Strike Price $67.50, Expires 12/16/22 | 13 | 74334 | 1235 |
|  | Meta Platforms Inc., March Strike Price $150.00, Expires 3/17/23 | 23 | 271630 | 8165 |
|  | SPDR S&P Oil & Gas Exploration & Production ETF, January Strike Price $160.00, Expires 1/20/23 | 14 | 212968 | 8330 |
|  |  |  |  | 32896 |
|  | **Calls – Over-the-Counter 0.0%<sup>†</sup>** |  |  |  |
|  | JD.com Inc., Counterparty GSCO, January Strike Price $55.00, Expires 1/20/23 | 6 | 34308 | 4380 |
|  | **Puts – Exchange-Traded 0.1%** |  |  |  |
|  | Blackstone Inc., February Strike Price $85.00, Expires 2/17/23 | 18 | 164754 | 8874 |
|  | Deere & Co., December Strike Price $310.00, Expires 12/16/22 | 4 | 176400 | 20 |
|  | Deere & Co., March Strike Price $300.00, Expires 3/17/23 | 2 | 88200 | 412 |

---

 <br> 24 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Number of<br>Contracts** | **Notional Amount<sup>#</sup>** | **Value** |
|  | **Options Purchased** (continued) | | | |
|  | **Puts – Exchange-Traded** (continued) | | | |
|  | Dick's Sporting Good Inc., December Strike Price $85.00, Expires 12/16/22 | | | $200 |
|  | Dick's Sporting Good Inc., March Strike Price $70.00, Expires 3/17/23 | | | 856 |
|  | iShares iBoxx High Yield Corporate Bond ETF, December Strike Price $68.00, Expires 12/16/22 | | | 4000 |
|  | iShares iBoxx High Yield Corporate Bond ETF, January Strike Price $61.00, Expires 1/20/23 | | | 828 |
|  | S&P 500 Index, March Strike Price $3,445.00, Expires 3/31/23 | | | 16160 |
|  | SPDR S&P 500 ETF Trust, December Strike Price $365.00, Expires 12/16/22 | | | 192 |
|  | Tesla Inc., April Strike Price $100.00, Expires 4/21/23 | | | 6187 |
|  | Upstart Holdings Inc., March Strike Price $10.00, Expires 3/17/23 | | | 2323 |
|  |  | | | 40052 |
|  | **Puts – Over-the-Counter 0.0%<sup>†</sup>** | | | |
|  | DJ EURO STOXX 50 Index, Counterparty BZWS, December Strike Price 3,450.00 EUR, Expires 12/16/22 | | | 81 |
|  | DJ EURO STOXX 50 Index, Counterparty BZWS, December Strike Price 3,750.00 EUR, Expires 12/16/22 | | | 537 |
|  | H & M Hennes & Mauritz AB, Counterparty CITI, December Strike Price 114.00 SEK, Expires 12/16/22 | | | 436 |
|  | H & M Hennes & Mauritz AB, Counterparty CITI, March Strike Price 100.00 SEK, Expires 3/17/23 | | | 640 |
|  | Softbank Group, Counterparty GSCO, March Strike Price 4,540.00 JPY, Expires 3/09/23 | | | 758 |
|  |  | | | 2452 |
|  | **Currency Options 0.0%<sup>†</sup>** | | | |
|  | USD/JPY, Counterparty GSCO, March Strike Price 126.00 JPY, Expires 3/14/23 | | | 7410 |
|  | **Total Options Purchased (Cost $337,485)** | | | 87190 |
|  | **Total Investments before Short Term Investments<br>(Cost $60,515,336)** | | | 53559268 |
|  |  |<br>20<br>8<br>1000<br>138<br>4<br>6<br>23<br>23<br>3<br>4<br>15<br>21<br>1180<br>1<br>**Country** |<br>239160<br>95664<br>7566000<br>1044108<br>1632044<br>244608<br>447810<br>44965<br>118942<br>158589<br>174990<br>244986<br>7023360<br>1243000<br>**Shares** | |
|  | **Short Term Investments 19.9%** | | | |
|  | **Money Market Funds (Cost $13,030,542) 19.2%** | | | |
| l | Fidelity Investments Money Market Government Portfolio, Institutional, 3.58% | United States | 13030542 | 13030542 |
|  |  |  | **Principal Amount\*** |  |
|  | **Repurchase Agreements (Cost $467,501) 0.7%** |  |  |  |
| m | Joint Repurchase Agreement, 3.745%, 12/01/22 (Maturity Value $467,550) | United States | 467501 | 467501 |
|  | &nbsp;&nbsp;&nbsp; BNP Paribas Securities Corp. (Maturity Value $104,928)<br>Deutsche Bank Securities Inc. (Maturity Value $16,354)<br>HSBC Securities (USA) Inc. (Maturity Value $346,268) |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateralized by U.S. Government and Agency Securities, 6.30%, 1/15/23 - 10/20/52; U.S. Treasury Bonds, Index Linked, 0.38%, 1/15/27; U.S. Treasury Notes, 0.13% - 1.13%, 12/31/22 - 1/15/25; and <sup>n</sup>U.S. Cash Management Bill, 1/15/25<br>(Valued at $477,022) |  |  |  |
|  | **Total Investments (Cost $74,013,379) 98.9%** |  |  | 67057311 |
|  | **Options Written (0.3)%** |  |  | (228714) |
|  | **Securities Sold Short (5.7)%** |  |  | (3857624) |
|  | **Other Assets, less Liabilities 7.1%** |  |  | 4865967 |
|  | **Net Assets 100.0%** |  |  | $67836940 |

---

 <br> franklintempleton.com Semiannual Report 25

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Number of<br>Contracts** | **Notional Amount<sup>#</sup>** | **Value** | **Value** |
| &nbsp;&nbsp;&nbsp;&nbsp;o | **Options Written (0.3)%** |  |  |  |  |
|  | **Calls – Exchange-Traded (0.3)%** |  |  |  |  |
|  | iShares iBoxx High Yield Corporate Bond ETF, December Strike Price $74.00, Expires 12/16/22 | 1000 | 7566000 | $| (161000) |
|  | S&P 500 Index, March Strike Price $4,100.00, Expires 3/31/23 | 4 | 1632044 |  | (61556) |
|  |  |  |  |  | (222556) |
|  | **Puts – Exchange-Traded (0.0)%<sup>†</sup>** | **Puts – Exchange-Traded (0.0)%<sup>†</sup>** | **Puts – Exchange-Traded (0.0)%<sup>†</sup>** |  |  |
|  | Blackstone Inc., February Strike Price $75.00, Expires 2/17/23 | 18 | 164754 |  | (3996) |
|  | iShares iBoxx High Yield Corporate Bond ETF, December Strike Price $63.00, Expires 12/16/22 | 1000 | 7566000 |  | (2000) |
|  |  |  |  |  | (5996) |
|  | **Puts – Over-the-Counter (0.0)%<sup>†</sup>** | **Puts – Over-the-Counter (0.0)%<sup>†</sup>** | **Puts – Over-the-Counter (0.0)%<sup>†</sup>** |  |  |
|  | DJ EURO STOXX 50 Index, Counterparty BZWS, December Strike Price 3,550.00 EUR, Expires 12/16/22 | 4 | 158589 |  | (162) |
|  | **Total Options Written (Premiums Received $171,745)** |  |  |  | (228714) |
|  |  | **Country** | **Shares** |  |  |
| p | **Securities Sold Short (5.7)%** |  |  |  |  |
|  | **Common Stocks (1.1)%** |  |  |  |  |
|  | **Capital Markets (1.1)%** |  |  |  |  |
|  | Ares Capital Corp. | United States | 23270 |  | (457256) |
|  | Coinbase Global Inc., A | United States | 900 |  | (41157) |
|  | Owl Rock Capital Corp. | United States | 20918 |  | (270051) |
|  | **Total Common Stocks (Proceeds $775,133)** |  |  |  | (768464) |
|  |  |  | **Principal Amount\*** |  |  |
|  | **Corporate Bonds and Notes (3.1)%** |  |  |  |  |
|  | **Automobiles (0.2)%** | **Automobiles (0.2)%** | **Automobiles (0.2)%** | **Automobiles (0.2)%** | **Automobiles (0.2)%** |
|  | Ford Motor Credit Co. LLC, senior note, 4.95%, 5/28/27 | United States | 140000 |  | (132644) |
|  | **Building Products (0.2)%** | **Building Products (0.2)%** | **Building Products (0.2)%** |  |  |
|  | 3M Co., senior bond, 2.375%, 8/26/29 | United States | 146000 |  | (125750) |
|  | **Chemicals (0.1)%** | **Chemicals (0.1)%** | **Chemicals (0.1)%** |  |  |
|  | Celanese US Holdings LLC, senior note, 6.33%, 7/15/29 | United States | 78000 |  | (75051) |
|  | **Construction & Engineering (0.4)%** | **Construction & Engineering (0.4)%** | **Construction & Engineering (0.4)%** |  |  |
|  | Fluor Corp., senior bond, 4.25%, 9/15/28 | United States | 312000 |  | (284466) |
|  | **Consumer Finance (0.5)%** | **Consumer Finance (0.5)%** | **Consumer Finance (0.5)%** |  |  |
|  | Ally Financial Inc., junior sub. bond, 5.75%, 11/20/25 | United States | 48000 |  | (47388) |
|  | Onemain Finance Corp., senior note,<br>6.875%, 3/15/25 | United States | 28000 |  | (27230) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.125%, 3/15/26 | United States | 257000 |  | (249290) |
|  |  |  |  |  | (323908) |
|  | **Diversified Financial Services (0.4)%** |  |  |  |  |
| e | Kronos Acquisition Holdings Inc. / KIK Custom Products Inc., senior note, 144A, 7.00%, 12/31/27 | Canada | 166000 |  | (138071) |
| e | Medline Borrower LP, senior note, 144A, 5.25%, 10/01/29 | United States | 96000 |  | (78348) |
| e | MPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28 | United States | 137000 |  | (96451) |
|  |  |  |  |  | (312870) |
|  | **Electric Utilities (0.0)%<sup>†</sup>** |  |  |  |  |
| e | Vistra Operations Co. LLC, senior note, 144A, 4.375%, 5/01/29 | United States | 12000 |  | (10750) |
|  | **Health Care Providers & Services (0.1)%** |  |  |  |  |
| e | Tenet Healthcare Corp., senior secured note, 144A, 6.25%, 2/01/27 | United States | 69000 |  | (66201) |

---

 <br> 26 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Country** | **Principal Amount\*** | **Principal Amount\*** | **Value** |
| p | **Securities Sold Short** (continued) |  |  |  |  |
|  | **Corporate Bonds and Notes** (continued) |  |  |  |  |
|  | **Media (0.6)%** |  |  |  |  |
|  | DISH DBS Corp., senior note, 7.75%, 7/01/26 | United States | 33000 |  | $(27691) |
|  | iHeartCommunications Inc., senior note, 8.375%, 5/01/27 | United States | 228886 |  | (204084) |
| e | Scripps Escrow II Inc., senior bond, 144A, 5.375%, 1/15/31 | United States | 210000 |  | (171696) |
|  |  |  |  |  | (403471) |
|  | **Oil, Gas & Consumable Fuels (0.1)%** |  |  |  |  |
| e | Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp., senior bond, 144A, 6.00%, 12/31/30 | United States | 71000 |  | (64343) |
|  | **Semiconductors & Semiconductor Equipment (0.5)%** |  |  |  |  |
|  | Intel Corp., senior bond,<br>4.75%, 3/25/50 | United States | 143000 |  | (128884) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.90%, 8/05/52 | United States | 211000 |  | (193253) |
|  |  |  |  |  | (322137) |
|  | **Total Corporate Bonds and Notes (Proceeds $2,206,523)** |  |  |  | (2121591) |
|  | **Foreign Government and Agency Securities (0.6)%** |  |  |  |  |
| e | Government of Italy, senior bond, Reg S, 0.95%, 6/01/32 | Italy | 92000 | EUR | (74684) |
|  | Government of Turkey, senior bond,<br>5.75%, 3/22/24 | Turkey | 170000 |  | (170037) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.375%, 2/05/25 | Turkey | 131000 |  | (131922) |
|  | **Total Foreign Government and Agency Securities<br>(Proceeds $388,202)** |  |  |  | (376643) |
|  | **U.S. Government and Agency Securities (0.9)%** |  |  |  |  |
|  | U.S. Treasury Bond,<br>3.375%, 8/15/42 | United States | 68000 |  | (62231) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.25%, 2/15/52 | United States | 56900 |  | (41108) |
|  | U.S. Treasury Note,<br>4.125%, 9/30/27 | United States | 43600 |  | (44136) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.875%, 2/15/32 | United States | 79800 |  | (68734) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 5/15/32 | United States | 48800 |  | (45750) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.75%, 8/15/32 | United States | 355100 |  | (328967) |
|  | **Total U.S. Government and Agency Securities<br>(Proceeds $610,113)** |  |  |  | (590926) |
|  | **Total Securities Sold Short (Proceeds $3,979,971)** |  |  |  | $(3857624) |

---

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

\* 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> Fair valued using significant unobservable inputs. See Note 14 regarding fair value measurements.

<sup>c</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, 2022, the aggregate value of these securities and/or cash pledged amounted to $1,141,119, representing 1.7% of net assets.

<sup>d</sup> See Note 10 regarding restricted securities.

<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, 2022, the net value of these securities was $37,435,393, representing 55.2% of net assets.

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

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

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

 <br> franklintempleton.com Semiannual Report 27

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

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

<sup>j</sup> See Note 11 regarding unfunded loan commitments.

<sup>k</sup> Adjustable rate security with an interest rate that is not based on a published reference index and spread. The rate is based on the structure of the agreement and current market conditions. The coupon rate shown represents the rate at period end.

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

<sup>m</sup> See Note 1(c) regarding joint repurchase agreement.

<sup>n</sup> The security was issued on a discount basis with no stated coupon rate.

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

<sup>p</sup> See Note 1(f) regarding securities sold short.

At November 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(d).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Futures Contracts**<br>**Description** |<br>**Type** |<br>**Number of<br>Contracts** |<br>**Notional<br>Amount\*** |<br>**Expiration<br>Date** |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **Equity Contracts** | | | | | |
|  NASDAQ 100 E-Mini Index | Short | 3 | $722535 | 12/16/22 | $(15675) |
|  S&P 500 E-Mini Index | Short | 3 | 612188 | 12/16/22 | (23303) |
| &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 | $(38978) |

---

\* As of period end.

At November 30, 2022, the Fund had the following forward exchange contracts outstanding. See Note 1(d).

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Forward Exchange Contracts** | **Forward Exchange Contracts** | **Forward Exchange Contracts** | **Forward Exchange Contracts** | **Forward Exchange Contracts** | | | | |
| **Currency** | **Counterparty<sup>a</sup>** | **Type** | **Quantity** | **Contract<br>Amount\*** | |<br>**Settlement<br>Date** |<br>**Unrealized<br>Appreciation** |<br>**Unrealized<br>Depreciation** |
| **OTC Forward Exchange Contracts** | **OTC Forward Exchange Contracts** | | | | | | | |
|  Brazilian Real | JPHQ | Buy | 1915375 | 358086 |  | 12/02/22 | $11012 | $— |
|  Brazilian Real | JPHQ | Sell | 1915375 | 360273 |  | 12/02/22 |  | (8825) |
|  British Pound | JPHQ | Sell | 740000 | 845134 |  | 12/21/22 |  | (47540) |
|  Chilean Peso | JPHQ | Sell | 179216737 | 182260 |  | 12/21/22 |  | (18293) |
|  Chinese Yuan | JPHQ | Sell | 1003592 | 139961 |  | 12/21/22 |  | (2718) |
|  Polish Zloty | JPHQ | Sell | 334605 | 67778 | EUR | 12/21/22 | 4264 | (7740) |
|  Hungarian Forint | JPHQ | Sell | 80165578 | 193209 | EUR | 12/21/22 | 9793 | (10887) |
|  Euro | JPHQ | Buy | 967290 | 969309 |  | 12/21/22 | 43374 |  |
|  Euro | JPHQ | Sell | 1069309 | 1066836 |  | 12/21/22 |  | (48095) |
|  Hong Kong Dollar | JPHQ | Buy | 160000 | 20415 |  | 12/21/22 | 63 |  |
|  Hong Kong Dollar | JPHQ | Sell | 330000 | 42098 |  | 12/21/22 |  | (138) |
|  Euro | DBAB | Sell | 54936 | 23490736 | HUF | 12/21/22 | 5937 | (3865) |
|  Euro | JPHQ | Sell | 134519 | 56674841 | HUF | 12/21/22 | 8514 | (5578) |
|  Japanese Yen | JPHQ | Sell | 3860000 | 27191 |  | 12/21/22 |  | (848) |
|  Mexican Peso | JPHQ | Buy | 15930962 | 788821 |  | 12/21/22 | 33731 |  |
|  Mexican Peso | JPHQ | Sell | 16071424 | 785543 |  | 12/21/22 |  | (44261) |
|  Polish Zloty | DBAB | Sell | 269669 | 53858 |  | 12/21/22 |  | (5899) |
|  Euro | JPHQ | Sell | 69776 | 334605 | PLN | 12/21/22 | 3576 | (2182) |
|  Polish Zloty | JPHQ | Buy | 969999 | 201077 |  | 12/21/22 | 13870 |  |
|  Polish Zloty | JPHQ | Sell | 700330 | 144487 |  | 12/21/22 |  | (10703) |
|  South African Rand | JPHQ | Sell | 12135743 | 691550 |  | 12/21/22 |  | (9403) |
|  Swedish Krona | JPHQ | Sell | 20000 | 1770 |  | 12/21/22 |  | (138) |
|  Swiss Franc | JPHQ | Buy | 2150000 | 2221682 |  | 12/21/22 | 57541 |  |
|  Swiss Franc | JPHQ | Sell | 2350000 | 2434117 |  | 12/21/22 |  | (57126) |
|  Euro | JPHQ | Sell | 770000 | 865449 |  | 3/31/23 | 56901 |  |
|  Euro | JPHQ | Sell | 970000 | 1135928 |  | 3/31/25 | 80436 |  |
| &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 | &nbsp;&nbsp;&nbsp;&nbsp; Total Forward Exchange Contracts | $329012 | $(284239) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | $44773 |  |

---

\* In U.S. dollars unless otherwise indicated.

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

 <br> 28 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

At November 30, 2022, the Fund had the following credit default swap contracts outstanding. See Note 1(d).

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit Default Swap Contracts** | **Credit Default Swap Contracts** | **Credit Default Swap Contracts** | **Credit Default Swap Contracts** | **Credit Default Swap Contracts** | **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>** | |<br>**Value** |<br>**Upfront<br>Payments<br>(Receipts)** |<br>**Unrealized<br>Appreciation<br>(Depreciation)** |<br>**Rating<sup>b</sup>** |
| **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>** | | | | | | | |
| **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | | | | | | |
|  Government of South Africa | (1.00)% | Quarterly |  | 12/20/27 | 271000 |  | $16788 | $27460 | $(10672) |  |
| **Traded Index** | **Traded Index** | **Traded Index** | **Traded Index** | **Traded Index** |  |  |  |  |  |  |
|  CDX.NA.HY.39 | (5.00)% | Quarterly |  | 12/20/27 | 2000000 |  | (37517) | 40450 | (77967) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Centrally Cleared Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Centrally Cleared Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Centrally Cleared Swap Contracts |  |  |  |  | $(20729) | $67910 | $(88639) |  |
| **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>** |  |  |  |  |  |  |  |
| **Single Name** |  |  | **Counterparty** |  |  |  |  |  |  |  |
|  Air France-KLM | (5.00)% | Quarterly | CITI | 12/20/27 | 5000 | EUR | 325 | 543 | (218) |  |
|  Air France-KLM | (5.00)% | Quarterly | CITI | 12/20/27 | 6000 | EUR | 390 | 638 | (248) |  |
|  Air France-KLM | (5.00)% | Quarterly | CITI | 12/20/27 | 12000 | EUR | 779 | 917 | (138) |  |
|  Air France-KLM | (5.00)% | Quarterly | CITI | 12/20/27 | 14000 | EUR | (3588) | 1408 | (4996) |  |
|  Air France-KLM | (5.00)% | Quarterly | CITI | 12/20/27 | 23000 | EUR | 1494 | 1856 | (362) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | BNPP | 12/20/27 | 138000 |  | (13526) | (10520) | (3006) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | BNPP | 12/20/27 | 42000 |  | (4116) | (3377) | (739) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | BNPP | 12/20/27 | 24000 |  | (2352) | (2090) | (262) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | CITI | 12/20/24 | 40000 |  | (2786) | (2008) | (778) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | GSCO | 12/20/27 | 119000 |  | (11664) | (9727) | (1937) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | GSCO | 12/20/27 | 15000 |  | (1470) | (1342) | (128) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | GSCO | 12/20/27 | 16000 |  | (1568) | (1263) | (305) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | GSCO | 12/20/27 | 12000 |  | (1176) | (1145) | (31) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | GSCO | 12/20/27 | 7000 |  | (686) | (621) | (65) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | JPHQ | 12/20/27 | 31000 |  | (3039) | (2704) | (335) |  |
|  Ally Financial Inc. | (5.00)% | Quarterly | MSCS | 12/20/24 | 34000 |  | (2369) | (1698) | (671) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | BZWS | 6/20/23 | 48000 |  | (552) | 892 | (1444) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | BZWS | 12/20/23 | 15000 |  | 25 | 218 | (193) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | BZWS | 12/20/23 | 14000 |  | 24 | 378 | (354) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | BZWS | 12/20/23 | 41000 |  | 69 | 945 | (876) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | BZWS | 6/20/24 | 42000 |  | 1322 | 1361 | (39) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | BZWS | 6/20/24 | 25000 |  | 787 | 2771 | (1984) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | BZWS | 6/20/24 | 84000 |  | 2643 | 5462 | (2819) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | BZWS | 12/20/24 | 20000 |  | 1158 | 2785 | (1627) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | BZWS | 6/20/25 | 16000 |  | 1480 | 1967 | (487) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | BZWS | 6/20/25 | 64000 |  | 5920 | 7469 | (1549) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | BZWS | 12/20/26 | 4000 |  | 609 | 513 | 96 |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | BZWS | 12/20/26 | 15000 |  | 2285 | 1032 | 1253 |  |

---

 <br> franklintempleton.com Semiannual Report 29

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (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>** | |<br>**Value** |<br>**Upfront<br>Payments<br>(Receipts)** |<br>**Unrealized<br>Appreciation<br>(Depreciation)** | <br>**Rating<sup>b</sup>** |
| **OTC Swap Contracts** (continued) | **OTC Swap Contracts** (continued) | **OTC 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) | | | | | | |  |
| **Single Name** (continued) | **Single Name** (continued) | **Single Name** (continued) | **Single Name** (continued) | | | | | | |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | CITI | 6/20/26 | 4000 |  | $553 | $274 | $279 |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | CITI | 6/20/26 | 28000 |  | 3871 | 2074 | 1797 |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | GSCO | 12/20/23 | 12000 |  | 20 | 190 | (170) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | GSCO | 12/20/23 | 17000 |  | 28 | 267 | (239) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | GSCO | 12/20/23 | 20000 |  | 34 | 909 | (875) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | GSCO | 12/20/23 | 33000 |  | 55 | 2047 | (1992) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | GSCO | 6/20/24 | 10000 |  | 314 | 814 | (500) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | GSCO | 6/20/24 | 37000 |  | 1164 | 3307 | (2143) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | GSCO | 12/20/24 | 9000 |  | 521 | 1316 | (795) |  |
|  American Airlines Group Inc. | (5.00)% | Quarterly | JPHQ | 12/20/25 | 27000 |  | 3311 | 3361 | (50) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | Quarterly | JPHQ | 6/20/25 | 11000 |  | (570) | (501) | (69) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | Quarterly | JPHQ | 6/20/27 | 26000 |  | (655) | (326) | (329) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | Quarterly | MSCS | 6/20/25 | 19000 |  | (983) | (733) | (250) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | Quarterly | MSCS | 6/20/27 | 52000 |  | (1310) | (709) | (601) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | Quarterly | MSCS | 6/20/27 | 26000 |  | (655) | (421) | (234) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | Quarterly | MSCS | 6/20/27 | 26000 |  | (655) | 272 | (927) |  |
|  Arcelormittal SA | (5.00)% | Quarterly | BOFA | 12/20/27 | 25000 | EUR | (3422) | (1580) | (1842) |  |
|  Arcelormittal SA | (5.00)% | Quarterly | JPHQ | 12/20/27 | 51000 | EUR | (6981) | (3245) | (3736) |  |
|  Arcelormittal SA | (5.00)% | Quarterly | JPHQ | 12/20/27 | 12000 | EUR | (1643) | (1041) | (602) |  |
|  Arcelormittal SA | (5.00)% | Quarterly | JPHQ | 12/20/27 | 12000 | EUR | (1643) | (965) | (678) |  |
|  Arcelormittal SA | (5.00)% | Quarterly | JPHQ | 12/20/27 | 12000 | EUR | (1643) | (946) | (697) |  |
|  BMW AG | (1.00)% | Quarterly | BZWS | 12/20/27 | 54000 | EUR | (852) | 700 | (1552) |  |
|  BMW AG | (1.00)% | Quarterly | MSCS | 12/20/27 | 54000 | EUR | (852) | 557 | (1409) |  |
|  Carnival Corp. | (1.00)% | Quarterly | BZWS | 12/20/26 | 12000 |  | 3902 | 4774 | (872) |  |
|  Carnival Corp. | (1.00)% | Quarterly | BZWS | 12/20/26 | 12000 |  | 3902 | 4832 | (930) |  |
|  Carnival Corp. | (1.00)% | Quarterly | BZWS | 12/20/26 | 12000 |  | 3902 | 4858 | (956) |  |
|  Carnival Corp. | (1.00)% | Quarterly | BZWS | 12/20/26 | 24000 |  | 7804 | 8414 | (610) |  |
|  Carnival Corp. | (1.00)% | Quarterly | BZWS | 12/20/26 | 24000 |  | 7804 | 9578 | (1774) |  |
|  Carnival Corp. | (1.00)% | Quarterly | CITI | 12/20/26 | 12000 |  | 3902 | 4107 | (205) |  |
|  Ceconomy AG | (1.00)% | Quarterly | MSCS | 6/20/23 | 2000 | EUR | 82 | 193 | (111) |  |
|  Ceconomy AG | (1.00)% | Quarterly | MSCS | 12/20/23 | 4000 | EUR | 385 | 472 | (87) |  |
|  Ceconomy AG | (1.00)% | Quarterly | MSCS | 12/20/23 | 4000 | EUR | 385 | 473 | (88) |  |
|  Ceconomy AG | (1.00)% | Quarterly | MSCS | 12/20/23 | 4000 | EUR | 385 | 494 | (109) |  |
|  Ceconomy AG | (1.00)% | Quarterly | MSCS | 12/20/23 | 8000 | EUR | 770 | 892 | (122) |  |
|  Compagnie de Saint-Gobain SA | (1.00)% | Quarterly | CITI | 12/20/27 | 67000 | EUR | (108) | 1574 | (1682) |  |

---

 <br> 30 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (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>** | |<br>**Value** |<br>**Upfront<br>Payments<br>(Receipts)** |<br>**Unrealized<br>Appreciation<br>(Depreciation)** | <br>**Rating<sup>b</sup>** |
| **OTC Swap Contracts** (continued) | **OTC Swap Contracts** (continued) | **OTC 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) | | | | | | |  |
| **Single Name** (continued) | **Single Name** (continued) | **Single Name** (continued) | **Single Name** (continued) | | | | | | |  |
|  Compagnie de Saint-Gobain SA | (1.00)% | Quarterly | CITI | 12/20/27 | 112000 | EUR | $(180) | $2626 | $(2806) |  |
|  Daimler Truck Holding AG | (1.00)% | Quarterly | GSCO | 12/20/27 | 56000 | EUR | (602) | 851 | (1453) |  |
|  Ford Motor Credit Co. LLC | (5.00)% | Quarterly | CITI | 12/20/27 | 86000 |  | (8321) | (4984) | (3337) |  |
|  Ford Motor Credit Co. LLC | (5.00)% | Quarterly | GSCO | 12/20/27 | 1000 |  | (96) | (62) | (34) |  |
|  Ford Motor Credit Co. LLC | (5.00)% | Quarterly | MSCS | 12/20/27 | 29000 |  | (2805) | (2277) | (528) |  |
|  Ford Motor Credit Co. LLC | (5.00)% | Quarterly | MSCS | 12/20/27 | 12000 |  | (1161) | (495) | (666) |  |
|  Government of Italy | (1.00)% | Quarterly | BOFA | 6/20/24 | 233000 |  | (2033) | 759 | (2792) |  |
|  Government of Italy | (1.00)% | Quarterly | BOFA | 6/20/24 | 140000 |  | (1221) | 1024 | (2245) |  |
|  Government of Japan | (1.00)% | Quarterly | BZWS | 12/20/27 | 58000 |  | (2128) | (1805) | (323) |  |
|  Government of Japan | (1.00)% | Quarterly | BZWS | 12/20/27 | 47000 |  | (1724) | (1457) | (267) |  |
|  Government of Japan | (1.00)% | Quarterly | BZWS | 12/20/27 | 24000 |  | (880) | (742) | (138) |  |
|  Government of Japan | (1.00)% | Quarterly | GSCO | 12/20/27 | 82000 |  | (3007) | (2516) | (491) |  |
|  Government of Japan | (1.00)% | Quarterly | GSCO | 12/20/27 | 47000 |  | (1724) | (1458) | (266) |  |
|  Government of Japan | (1.00)% | Quarterly | GSCO | 12/20/27 | 35000 |  | (1284) | (1205) | (79) |  |
|  Government of Japan | (1.00)% | Quarterly | GSCO | 12/20/27 | 24000 |  | (880) | (737) | (143) |  |
|  Groupe Casino | (5.00)% | Quarterly | BZWS | 12/20/22 | 80000 | EUR | (618) | 434 | (1052) |  |
|  Groupe Casino | (5.00)% | Quarterly | JPHQ | 12/20/22 | 10000 | EUR | (77) | 55 | (132) |  |
|  HP Inc. | (1.00)% | Quarterly | GSCO | 12/20/27 | 60000 |  | 521 | 2437 | (1916) |  |
|  HP Inc. | (1.00)% | Quarterly | MSCS | 12/20/27 | 65000 |  | 564 | 2279 | (1715) |  |
|  ICE Ltd. | (5.00)% | Quarterly | JPHQ | 6/20/25 | 10000 | EUR | 1509 | 352 | 1157 |  |
|  Iceland Bondco | (5.00)% | Quarterly | GSCO | 6/20/25 | 15000 | EUR | 2264 | 2162 | 102 |  |
|  JFE Holdings Inc. | (1.00)% | Quarterly | BZWS | 12/20/27 | 4732000 | JPY | (864) | (334) | (530) |  |
|  JFE Holdings Inc. | (1.00)% | Quarterly | GSCO | 12/20/27 | 4732000 | JPY | (864) | (639) | (225) |  |
|  JFE Holdings Inc. | (1.00)% | Quarterly | GSCO | 12/20/27 | 2366000 | JPY | (432) | (233) | (199) |  |
|  JFE Holdings Inc. | (1.00)% | Quarterly | GSCO | 12/20/27 | 2366000 | JPY | (432) | (183) | (249) |  |
|  Kawasaki Heavy Industries Ltd. | (1.00)% | Quarterly | BZWS | 12/20/27 | 4706000 | JPY | (1112) | (725) | (387) |  |
|  Kawasaki Heavy Industries Ltd. | (1.00)% | Quarterly | BZWS | 12/20/27 | 2353000 | JPY | (556) | (460) | (96) |  |
|  Kawasaki Heavy Industries Ltd. | (1.00)% | Quarterly | BZWS | 12/20/27 | 2353000 | JPY | (556) | (367) | (189) |  |
|  Kawasaki Heavy Industries Ltd. | (1.00)% | Quarterly | BZWS | 12/20/27 | 2353000 | JPY | (556) | (288) | (268) |  |
|  Kawasaki Heavy Industries Ltd. | (1.00)% | Quarterly | GSCO | 12/20/27 | 2353000 | JPY | (556) | (463) | (93) |  |
|  Kobe Steel Ltd. | (1.00)% | Quarterly | BZWS | 12/20/27 | 1273000 | JPY | (5) | 18 | (23) |  |
|  Kobe Steel Ltd. | (1.00)% | Quarterly | JPHQ | 12/20/27 | 2383000 | JPY | (9) | 42 | (51) |  |
|  Kohl's Corp. | (1.00)% | Quarterly | GSCO | 6/20/26 | 41000 |  | 2990 | 595 | 2395 |  |
|  Lanxess AG | (1.00)% | Quarterly | GSCO | 12/20/27 | 36000 | EUR | 1529 | 2527 | (998) |  |
|  Lanxess AG | (1.00)% | Quarterly | JPHQ | 12/20/27 | 181000 | EUR | 7690 | 13921 | (6231) |  |
|  Lloyds Bank PLC | (1.00)% | Quarterly | BZWS | 12/20/27 | 40000 | EUR | 975 | 2380 | (1405) |  |
|  Lloyds Bank PLC | (1.00)% | Quarterly | CITI | 12/20/27 | 12000 | EUR | 292 | 569 | (277) |  |
|  Lloyds Bank PLC | (1.00)% | Quarterly | CITI | 12/20/27 | 107000 | EUR | 2608 | 4916 | (2308) |  |
|  Lloyds Bank PLC | (1.00)% | Quarterly | JPHQ | 12/20/27 | 14000 | EUR | 341 | 1057 | (716) |  |
|  Louis Dreyfus Co. | (5.00)% | Quarterly | JPHQ | 12/20/27 | 26000 | EUR | (4575) | (3140) | (1435) |  |
|  Marubeni Corp. | (1.00)% | Quarterly | CITI | 6/20/25 | 3711000 | JPY | (613) | 582 | (1195) |  |

---

 <br> franklintempleton.com Semiannual Report 31

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (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>** | |<br>**Value** |<br>**Upfront<br>Payments<br>(Receipts)** |<br>**Unrealized<br>Appreciation<br>(Depreciation)** | <br>**Rating<sup>b</sup>** |
| **OTC Swap Contracts** (continued) | **OTC Swap Contracts** (continued) | **OTC 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) | | | | | | |  |
| **Single Name** (continued) | **Single Name** (continued) | **Single Name** (continued) | **Single Name** (continued) | | | | | | |  |
|  Mitsui O.S.K. Lines Ltd. | (1.00)% | Quarterly | BZWS | 12/20/27 | 2509000 | JPY | $(196) | $(134) | $(62) |  |
|  Mitsui O.S.K. Lines Ltd. | (1.00)% | Quarterly | GSCO | 12/20/27 | 1175000 | JPY | (91) | (66) | (25) |  |
|  Mitsui O.S.K. Lines Ltd. | (1.00)% | Quarterly | GSCO | 12/20/27 | 2350000 | JPY | (183) | (24) | (159) |  |
|  Mitsui O.S.K. Lines Ltd. | (1.00)% | Quarterly | GSCO | 12/20/27 | 2350000 | JPY | (183) |  | (183) |  |
|  Mitsui O.S.K. Lines Ltd. | (1.00)% | Quarterly | GSCO | 12/20/27 | 1175000 | JPY | (92) | 19 | (111) |  |
|  Mitsui O.S.K. Lines Ltd. | (1.00)% | Quarterly | GSCO | 12/20/27 | 2350000 | JPY | (183) | 39 | (222) |  |
|  Mitsui O.S.K. Lines Ltd. | (1.00)% | Quarterly | JPHQ | 12/20/27 | 2350000 | JPY | (183) | (149) | (34) |  |
|  Next PLC | (1.00)% | Quarterly | BZWS | 12/20/27 | 9000 | EUR | 406 | 635 | (229) |  |
|  Next PLC | (1.00)% | Quarterly | CITI | 12/20/27 | 80000 | EUR | 3611 | 5644 | (2033) |  |
|  Next PLC | (1.00)% | Quarterly | GSCO | 12/20/27 | 32000 | EUR | 1444 | 2270 | (826) |  |
|  Nippon Paper Industries Co. Ltd. | (1.00)% | Quarterly | BZWS | 12/20/27 | 718000 | JPY | 217 | 332 | (115) |  |
|  Nippon Paper Industries Co. Ltd. | (1.00)% | Quarterly | BZWS | 12/20/27 | 5744000 | JPY | 1735 | 2152 | (417) |  |
|  Nippon Paper Industries Co. Ltd. | (1.00)% | Quarterly | JPHQ | 12/20/27 | 2872000 | JPY | 867 | 1382 | (515) |  |
|  Nippon Steel Corp. | (1.00)% | Quarterly | BZWS | 12/20/27 | 5915000 | JPY | (1201) | (620) | (581) |  |
|  Nippon Steel Corp. | (1.00)% | Quarterly | BZWS | 12/20/27 | 2366000 | JPY | (480) | (290) | (190) |  |
|  Nippon Steel Corp. | (1.00)% | Quarterly | GSCO | 12/20/27 | 2366000 | JPY | (480) | (405) | (75) |  |
|  Nippon Steel Corp. | (1.00)% | Quarterly | MSCS | 12/20/27 | 4732000 | JPY | (961) | (728) | (233) |  |
|  Rakuten Group Inc. | (1.00)% | Quarterly | BZWS | 12/20/24 | 2261000 | JPY | 1040 | 364 | 676 |  |
|  Rakuten Group Inc. | (1.00)% | Quarterly | CITI | 12/20/24 | 5734000 | JPY | 2639 | 1602 | 1037 |  |
|  Rakuten Group Inc. | (1.00)% | Quarterly | JPHQ | 12/20/24 | 2867000 | JPY | 1319 | 741 | 578 |  |
|  Rakuten Group Inc. | (1.00)% | Quarterly | JPHQ | 6/20/27 | 158000 | JPY | 145 | 116 | 29 |  |
|  Rakuten Group Inc. | (1.00)% | Quarterly | JPHQ | 6/20/27 | 481000 | JPY | 441 | 355 | 86 |  |
|  Rakuten Group Inc. | (1.00)% | Quarterly | JPHQ | 6/20/27 | 1491000 | JPY | 1366 | 832 | 534 |  |
|  Rakuten Group Inc. | (1.00)% | Quarterly | JPHQ | 12/20/27 | 1420000 | JPY | 1409 | 1188 | 221 |  |
|  Simon Property Group LP | (1.00)% | Quarterly | BNPP | 12/20/27 | 52000 |  | 34 | 805 | (771) |  |
|  Simon Property Group LP | (1.00)% | Quarterly | BZWS | 12/20/27 | 84000 |  | 54 | 1445 | (1391) |  |
|  Societe Generale SA | (1.00)% | Quarterly | BZWS | 12/20/23 | 200000 | EUR | (1392) | 942 | (2334) |  |
|  Softbank Group Corp. | (1.00)% | Quarterly | BZWS | 6/20/27 | 777000 | JPY | 617 | 764 | (147) |  |
|  Softbank Group Corp. | (1.00)% | Quarterly | BZWS | 6/20/27 | 1331000 | JPY | 1058 | 1242 | (184) |  |
|  Softbank Group Corp. | (1.00)% | Quarterly | BZWS | 6/20/27 | 1503000 | JPY | 1194 | 1412 | (218) |  |
|  Softbank Group Corp. | (1.00)% | Quarterly | BZWS | 6/20/27 | 4972000 | JPY | 3952 | 4731 | (779) |  |
|  Stellantis NV | (5.00)% | Quarterly | BZWS | 12/20/27 | 14000 | EUR | (2292) | (1481) | (811) |  |
|  Stellantis NV | (5.00)% | Quarterly | CITI | 12/20/27 | 55000 | EUR | (9005) | (5800) | (3205) |  |
|  Stellantis NV | (5.00)% | Quarterly | CITI | 12/20/27 | 12000 | EUR | (1964) | (1405) | (559) |  |
|  Stena AB | (5.00)% | Quarterly | BZWS | 6/20/24 | 15000 | EUR | 77 | (350) | 427 |  |
|  Stena AB | (5.00)% | Quarterly | GSCO | 6/20/24 | 3000 | EUR | 15 | 25 | (10) |  |
|  Stena AB | (5.00)% | Quarterly | GSCO | 6/20/24 | 5000 | EUR | 26 | 42 | (16) |  |
|  Stena AB | (5.00)% | Quarterly | GSCO | 12/20/24 | 92000 | EUR | 690 | (3833) | 4523 |  |
|  Stena AB | (5.00)% | Quarterly | GSCO | 6/20/27 | 3000 | EUR | 107 | (6) | 113 |  |
|  Stena AB | (5.00)% | Quarterly | JPHQ | 6/20/27 | 2000 | EUR | 72 | 20 | 52 |  |
|  Stena AB | (5.00)% | Quarterly | JPHQ | 6/20/27 | 6000 | EUR | 215 | 69 | 146 |  |
|  Stena AB | (5.00)% | Quarterly | JPHQ | 6/20/27 | 28000 | EUR | 1003 | 166 | 837 |  |
|  Stena AB | (5.00)% | Quarterly | JPHQ | 6/20/27 | 10000 | EUR | 358 | 222 | 136 |  |
|  Stena AB | (5.00)% | Quarterly | JPHQ | 6/20/27 | 35000 | EUR | 1255 | 269 | 986 |  |
|  Stena AB | (5.00)% | Quarterly | JPHQ | 6/20/27 | 15000 | EUR | 538 | 942 | (404) |  |
|  TDC Holding | (1.00)% | Quarterly | BNPP | 6/20/27 | 60000 | EUR | 215 | 3106 | (2891) |  |
|  U.S. Steel Corp. | (5.00)% | Quarterly | BZWS | 12/20/27 | 5000 |  | (21) | 215 | (236) |  |
|  U.S. Steel Corp. | (5.00)% | Quarterly | BZWS | 12/20/27 | 11000 |  | (48) | 543 | (591) |  |

---

 <br> 32 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (continued) | **Credit Default Swap Contracts** (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>** |<br>**Value** |<br>**Upfront<br>Payments<br>(Receipts)** |<br>**Unrealized<br>Appreciation<br>(Depreciation)** |<br>**Rating<sup>b</sup>** |
| **OTC Swap Contracts** (continued) | **OTC Swap Contracts** (continued) | **OTC 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) | | | | | | |
| **Single Name** (continued) | **Single Name** (continued) | **Single Name** (continued) | **Single Name** (continued) | | | | | | |
|  U.S. Steel Corp. | (5.00)% | Quarterly | GSCO | 12/20/27 | 11000 | $(48) | $224 | $(272) |  |
|  U.S. Steel Corp. | (5.00)% | Quarterly | MSCS | 12/20/27 | 12000 | (52) | 179 | (231) |  |
|  U.S. Steel Corp. | (5.00)% | Quarterly | MSCS | 12/20/27 | 12000 | (52) | 590 | (642) |  |
|  U.S. Steel Corp. | (5.00)% | Quarterly | MSCS | 12/20/27 | 12000 | (52) | 638 | (690) |  |
|  U.S. Steel Corp. | (5.00)% | Quarterly | MSCS | 12/20/27 | 23000 | (100) | 729 | (829) |  |
| **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** |  |  |  |  |  |  |
|  American Axle & Manufacturing Inc. | 5.00% | Quarterly | CITI | 6/20/25 | 17000 | 881 | 772 | 109 | BB- |
|  American Axle & Manufacturing Inc. | 5.00% | Quarterly | GSCO | 12/20/27 | 13000 | 197 | 586 | (389) | BB- |
|  American Axle & Manufacturing Inc. | 5.00% | Quarterly | MSCS | 6/20/25 | 5000 | 260 | 237 | 23 | BB- |
|  American Axle & Manufacturing Inc. | 5.00% | Quarterly | MSCS | 6/20/25 | 9000 | 467 | 329 | 138 | BB- |
|  American Axle & Manufacturing Inc. | 5.00% | Quarterly | MSCS | 6/20/25 | 52000 | 2693 | 2266 | 427 | BB- |
|  Calpine Corp. | 5.00% | Quarterly | JPHQ | 12/20/27 | 3000 | 143 | (29) | 172 | BB- |
|  Calpine Corp. | 5.00% | Quarterly | JPHQ | 12/20/27 | 53000 | 2532 | 201 | 2331 | BB- |
|  Kohl's Corp. | 1.00% | Quarterly | JPHQ | 6/20/26 | 41000 | (2989) | (2630) | (359) | BB+ |
|  United Airlines Inc. | 5.00% | Quarterly | BZWS | 12/20/27 | 11000 | (360) | (1179) | 819 | B+ |
|  United Airlines Inc. | 5.00% | Quarterly | GSCO | 12/20/27 | 11000 | (360) | (927) | 567 | B+ |
| &nbsp;&nbsp;&nbsp;&nbsp; Total OTC Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total OTC Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total OTC Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total OTC Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total OTC Swap Contracts |  | $(14724) | $77284 | $(92008) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts |  | $(35453) | $145194 | $(180647) |  |

---

<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.

<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.

At November 30, 2022, the Fund had the following interest rate swap contracts outstanding. See Note 1(d).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Interest Rate Swap Contracts**<br>**Description** |<br>**Payment<br>Frequency** |<br>**Maturity**<br> **Date** |<br>**Notional**<br> **Amount\*** | |<br>**Value/Unrealized<br>Appreciation<br>(Depreciation)** |
| **Centrally Cleared Swap Contracts** | | | |  | |
|  Receive Floating rate 1 Year-SOFR<br>Pay Fixed rate 1.36% | Annually | 3/08/24 | 1000000 |  | $41829 |
|  Receive Floating Banxico Mexico 1 Month rate<br>Pay Fixed rate 9.35% | Monthly | 12/17/25 | 4606860 | &nbsp;&nbsp;&nbsp;&nbsp;MXN | (1484) |
|  Receive Floating rate 6-Month-WIBOR<br>Pay Fixed rate 6.025% | Semi-Annually | 12/21/27 | 640183 | &nbsp;&nbsp;&nbsp;&nbsp;PLN | (941) |
|  Receive Floating rate 3 Month USD-LIBOR<br>Pay Fixed rate 2.25% | Quarterly | 6/20/28 | 1100000 |  | 9787 |
|  Receive Floating rate 1 Year-SOFR<br>Pay Fixed rate 1.52% | Annually | 3/08/32 | 1000000 |  | 146650 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Interest Rate Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Interest Rate Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Interest Rate Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Interest Rate Swap Contracts |  | $195841 |

---

\* In U.S. dollars unless otherwise indicated.

 <br> franklintempleton.com Semiannual Report 33

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

At November 30, 2022, the Fund had the following total return swap contracts outstanding. See Note 1(d).

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Total Return Swap Contracts** | **Total Return Swap Contracts** | **Total Return Swap Contracts** | **Total Return Swap Contracts** | **Total Return Swap Contracts** | **Total Return Swap Contracts** | |
| **Underlying Instrument** | **Financing Rate** | **Payment<br>Frequency** | **Counterparty** | **Maturity<br>Date** | **Notional**<br>**Value** |<br>**Value/Unrealized**<br> **Appreciation<br>(Depreciation)** |
| **OTC Swap Contracts** |  | | | | | |
| **Equity Contracts – Long<sup>a</sup>** |  | | | | | |
|  Energy Transfer LP | 1-Month LIBOR + 0.90% | Monthly | GSCO | 1/26/23 | $30607 | $2025 |
|  Energy Transfer LP | 1-Month LIBOR + 0.90% | Monthly | BZWS | 2/14/23 | 43315 | 2843 |
|  Energy Transfer LP | 1-Month LIBOR + 0.50% | Monthly | CITI | 10/18/23 | 24712 | 1456 |
| &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 |  | $6324 |

---

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

See Note 12 regarding other derivative information

See Abbreviations on page 53.

 <br> 34 Semiannual Report \| The accompanying notes are an integral part of these financial statements. franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FINANCIAL STATEMENTS

Statement of Assets and Liabilities

November 30, 2022 (unaudited)

**Franklin K2 Long Short Credit Fund** 

---

| | |
|:---|:---|
|  Assets: |  |
| &nbsp;&nbsp;&nbsp; Investments in securities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost – Unaffiliated issuers | $73545878 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost – Unaffiliated repurchase agreements | 467501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Value – Unaffiliated issuers | $66589810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Value – Unaffiliated repurchase agreements | 467501 |
| &nbsp;&nbsp;&nbsp; Cash | 5850 |
| &nbsp;&nbsp;&nbsp; Restricted cash for OTC derivatives (Note 1e) | 120000 |
| &nbsp;&nbsp;&nbsp; Foreign currency, at value (cost $1,898,200) | 1949346 |
| &nbsp;&nbsp;&nbsp; Receivables: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment securities sold | 532296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital shares sold | 13595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 560586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits with brokers for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold short | 3656228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OTC derivative contracts | 240000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | 79200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Centrally cleared swap contracts | 235704 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from brokers | 234745 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on centrally cleared swap contracts | 30639 |
| &nbsp;&nbsp;&nbsp; OTC swap contracts (upfront payments $197,842) | 168872 |
| &nbsp;&nbsp;&nbsp; Unrealized appreciation on OTC forward exchange contracts | 329012 |
| &nbsp;&nbsp;&nbsp; Unrealized appreciation on OTC swap contracts | 28370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | 75241754 |
|  Liabilities: |  |
| &nbsp;&nbsp;&nbsp; Payables: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment securities purchased | 1094576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital shares redeemed | 59151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 27919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution fees | 4924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 1076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer agent fees | 19453 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits from brokers for: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OTC derivative contracts | 120000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to brokers | 1373128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on futures contracts | 6731 |
| &nbsp;&nbsp;&nbsp; OTC swap contracts (upfront receipts $97,710) | 91588 |
| &nbsp;&nbsp;&nbsp; Options written, at value (premiums received $171,745) | 228714 |
| &nbsp;&nbsp;&nbsp; Securities sold short, at value (proceeds $3,979,971) | 3857624 |
| &nbsp;&nbsp;&nbsp; Unrealized depreciation on OTC forward exchange contracts | 284239 |
| &nbsp;&nbsp;&nbsp; Unrealized depreciation on OTC swap contracts | 114054 |
| &nbsp;&nbsp;&nbsp; Unrealized depreciation on unfunded loan commitments (Note 11) | 26697 |
| &nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities | 94940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 7404814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $67836940 |
|  Net assets consist of: |  |
| &nbsp;&nbsp;&nbsp; Paid-in capital | $78208714 |
| &nbsp;&nbsp;&nbsp; Total distributable earnings (loss) | (10371774) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $67836940 |

---

 <br> franklintempleton.com The accompanying notes are an integral part of these financial statements. \| Semiannual Report 35

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FINANCIAL STATEMENTS

Statement of Assets and Liabilities (continued)

November 30, 2022 (unaudited)

**Franklin K2 Long Short Credit Fund** 

---

| | |
|:---|:---|
| **Class A:** |  |
| &nbsp;&nbsp;&nbsp; Net assets, at value | $16297075 |
| &nbsp;&nbsp;&nbsp; Shares outstanding | 1739920 |
| &nbsp;&nbsp;&nbsp; Net asset value per share<sup>a</sup> | $9.37 |
| &nbsp;&nbsp;&nbsp; Maximum offering price per share (net asset value per share ÷ 94.50%) | $9.92 |
| **Class C:** |  |
| &nbsp;&nbsp;&nbsp; Net assets, at value | $1797307 |
| &nbsp;&nbsp;&nbsp; Shares outstanding | 193821 |
| &nbsp;&nbsp;&nbsp; Net asset value and maximum offering price per share<sup>a</sup> | $9.27 |
| **Class R:** |  |
| &nbsp;&nbsp;&nbsp; Net assets, at value | $242194 |
| &nbsp;&nbsp;&nbsp; Shares outstanding | 26114 |
| &nbsp;&nbsp;&nbsp; Net asset value and maximum offering price per share | $9.27 |
| **Class R6:** |  |
| &nbsp;&nbsp;&nbsp; Net assets, at value | $14027 |
| &nbsp;&nbsp;&nbsp; Shares outstanding | 1494 |
| &nbsp;&nbsp;&nbsp; Net asset value and maximum offering price per share | $9.39 |
| **Advisor Class:** |  |
| &nbsp;&nbsp;&nbsp; Net assets, at value | $49486337 |
| &nbsp;&nbsp;&nbsp; Shares outstanding | 5287890 |
| &nbsp;&nbsp;&nbsp; Net asset value and maximum offering price per share | $9.36 |

---

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

 <br> 36 Semiannual Report \| The accompanying notes are an integral part of these financial statements. franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FINANCIAL STATEMENTS

Statement of Operations

for the six months ended November 30, 2022 (unaudited)

**Franklin K2 Long Short Credit Fund** 

---

| | |
|:---|:---|
|  Investment income: |  |
| &nbsp;&nbsp;&nbsp; Dividends: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | $141226 |
| &nbsp;&nbsp;&nbsp; Interest: (net of foreign taxes)~ |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | 2229391 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 2370617 |
|  Expenses: |  |
| &nbsp;&nbsp;&nbsp; Management fees (Note 3a) | 580662 |
| &nbsp;&nbsp;&nbsp; Distribution fees: (Note 3c) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | 20965 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C | 10266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R | 575 |
| &nbsp;&nbsp;&nbsp; Transfer agent fees: (Note 3e) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | 10869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C | 1323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R6 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | 37219 |
| &nbsp;&nbsp;&nbsp; Custodian fees (Note 4) | 37964 |
| &nbsp;&nbsp;&nbsp; Reports to shareholders fees | 15995 |
| &nbsp;&nbsp;&nbsp; Registration and filing fees | 49146 |
| &nbsp;&nbsp;&nbsp; Professional fees | 116198 |
| &nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 13564 |
| &nbsp;&nbsp;&nbsp; Dividends and interest on securities sold short | 117729 |
| &nbsp;&nbsp;&nbsp; Security borrowing fees | 2267 |
| &nbsp;&nbsp;&nbsp; Other | 12572 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 1027474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expense reductions (Note 4) | (487) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses waived/paid by affiliates (Note 3f) | (275170) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 751817 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 1618800 |
|  Realized and unrealized gains (losses): |  |
| &nbsp;&nbsp;&nbsp; Net realized gain (loss) from: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | (4736539) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | 282764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (123416) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward exchange contracts | 272404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | 243651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold short | 321307 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | 33424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | (3706405) |
| &nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) on: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | (1576947) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | (212032) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Translation of other assets and liabilities denominated in foreign currencies | 40507 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward exchange contracts | (41276) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (121597) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold short | (161667) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | (72287) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) | (2145299) |
| &nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) | (5851704) |
| &nbsp;&nbsp;&nbsp; Net increase (decrease) in net assets resulting from operations | $(4232904) |
| &nbsp;&nbsp;&nbsp; ~Foreign taxes withheld on interest | $150 |

---

 <br> franklintempleton.com The accompanying notes are an integral part of these financial statements. \| Semiannual Report 37

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FINANCIAL STATEMENTS

Statements of Changes in Net Assets

**Franklin K2 Long Short Credit Fund** 

---

| | | |
|:---|:---|:---|
| | **Six Months Ended<br>November 30, 2022<br>(unaudited)** | **Year Ended<br>May 31, 2022** |
|  Increase (decrease) in net assets: |  |  |
| &nbsp;&nbsp;&nbsp; Operations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | $1618800 | $2593897 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | (3706405) | 121020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (2145299) | (6606394) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) in net assets resulting from operations | (4232904) | (3891477) |
| &nbsp;&nbsp;&nbsp; Distributions to shareholders: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (346186) | (783078) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C | (17398) | (70593) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R | (4062) | (6238) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R6 | (337) | (576) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | (1418415) | (2881103) |
| &nbsp;&nbsp;&nbsp; Total distributions to shareholders | (1786398) | (3741588) |
| &nbsp;&nbsp;&nbsp; Capital share transactions: (Note 2) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | 43416 | (7496625) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C | (651038) | (143137) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R | 40328 | 39422 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R6 | 216 | 10364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | (12635120) | (4083126) |
| &nbsp;&nbsp;&nbsp; Total capital share transactions | (13202198) | (11673102) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) in net assets | (19221500) | (19306167) |
|  Net assets: |  |  |
| &nbsp;&nbsp;&nbsp; Beginning of period | 87058440 | 106364607 |
| &nbsp;&nbsp;&nbsp; End of period | $67836940 | $87058440 |

---

 <br> 38 Semiannual Report \| The accompanying notes are an integral part of these financial statements. franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FRANKLIN K2 LONG SHORT CREDIT FUND

Notes to Financial Statements (unaudited)

**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 two separate funds and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). Franklin K2 Long Short Credit Fund (Fund) is included in this report. 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 17, 2023, Franklin K2 Long Short Credit Fund was renamed K2 Long Short Credit 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 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. Investments in repurchase agreements are valued at cost, which approximates fair value.

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, book values, 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

 <br> franklintempleton.com Semiannual Report 39

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

**1. Organization and Significant Accounting Policies** (continued)

**a. Financial Instrument Valuation** (continued)

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 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 Funds' portfolio securities to the latest indications of fair value at 4 p.m. Eastern time. At November 30, 2022, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs 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 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.

**c. Joint Repurchase Agreement** 

The Fund enters into a joint repurchase agreement whereby its uninvested cash balance is deposited into a joint cash account with other funds managed by the investment manager or an affiliate of the investment manager and is used to invest in one or more repurchase agreements. The value and face amount of the joint repurchase agreement are allocated to the funds based on their pro-rata interest. A repurchase agreement is accounted for as a loan by the Fund to the seller, collateralized by securities which are delivered to the Fund's custodian. The fair value, including accrued interest, of the initial collateralization is required to be at least 102% of the dollar amount invested by the funds, with the value of the underlying securities marked to market daily to maintain coverage of at least 100%. Repurchase agreements are subject to the terms of Master Repurchase Agreements (MRAs) with approved counterparties (sellers). The MRAs contain various provisions, including but not limited to events of default and maintenance of collateral for repurchase agreements. In the event of default by either the seller or the Fund, certain MRAs

 <br> 40 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

may permit the non-defaulting party to net and close-out all transactions, if any, traded under such agreements. The Fund may sell securities it holds as collateral and apply the proceeds towards the repurchase price and any other amounts owed by the seller to the Fund in the event of default by the seller. This could involve costs or delays in addition to a loss on the securities if their value falls below the repurchase price owed by the seller. The joint repurchase agreement held by the Fund at period end, as indicated in the Schedule of Investments, had been entered into on November 30, 2022.

**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 Statement of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the 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 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.

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 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 interest rate and equity price 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 Statement of Assets and Liabilities.

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.

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

 <br> franklintempleton.com Semiannual Report 41

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

**1. Organization and Significant Accounting Policies** (continued)

**d. Derivative Financial Instruments** (continued)

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 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 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 Statement of Operations.

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 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 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.

The Fund entered into OTC total return swap contracts primarily to manage and/or gain exposure to 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.

The Fund purchased or wrote exchange traded and/or OTC option contracts primarily to manage and/or gain exposure to equity price, interest rate and foreign exchange rate 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.

See Note 12 regarding other derivative information.

**e. Restricted Cash** 

At November 30, 2022, the Fund held restricted cash in connection with investments in certain derivative securities. Restricted cash is held in a segregated account with the Fund's custodian and/or counterparty broker and is reflected in the Statement of Assets and Liabilities.

**f. 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

 <br> 42 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

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 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.

**g. 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 London InterBank Offered Rate (LIBOR). Senior secured corporate loans often require prepayment of principal from excess cash flows or 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.

**h. 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, 2022, the Fund has determined that no tax liability is required in its 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.

**i. 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 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. 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.

Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each Fund to the combined net assets of the Trust or based on the ratio of number of shareholders of each Fund to the combined number of shareholders of the Trust. Fund specific expenses are charged directly to the Fund that incurred the expense.

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.

 <br> franklintempleton.com Semiannual Report 43

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

**1. Organization and Significant Accounting Policies** (continued)

**j. 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.

**k. 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, 2022, 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, 2022** | **Six Months Ended**<br>**November 30, 2022** | **Year Ended**<br>**May 31, 2022** | **Year Ended**<br>**May 31, 2022** |
| | **Shares** | **Amount** | **Shares** | **Amount** |
| **Class A Shares:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Shares sold<sup>a</sup> | 105342 | $1011321 | 454409 | $4908749 |
| &nbsp;&nbsp;&nbsp; Shares issued in reinvestment of distributions | 33167 | 316642 | 55963 | 593769 |
| &nbsp;&nbsp;&nbsp; Shares redeemed | (132591) | (1284547) | (1214627) | (12999143) |
| &nbsp;&nbsp;&nbsp; Net increase (decrease) | 5918 | $43416 | (704255) | $(7496625) |
| **Class C Shares:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Shares sold | 2751 | $26218 | 64353 | $679579 |
| &nbsp;&nbsp;&nbsp; Shares issued in reinvestment of distributions | 1829 | 17369 | 6746 | 70494 |
| &nbsp;&nbsp;&nbsp; Shares redeemed<sup>a</sup> | (72368) | (694625) | (84628) | (893210) |
| &nbsp;&nbsp;&nbsp; Net increase (decrease) | (67788) | $(651038) | (13529) | $(143137) |
| **Class R Shares:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Shares sold | 4561 | $43433 | 4877 | $51606 |
| &nbsp;&nbsp;&nbsp; Shares issued in reinvestment of distributions | 381 | 3595 | 543 | 5698 |
| &nbsp;&nbsp;&nbsp; Shares redeemed | (704) | (6700) | (1669) | (17882) |
| &nbsp;&nbsp;&nbsp; Net increase (decrease) | 4238 | $40328 | 3751 | $39422 |
| **Class R6 Shares:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Shares sold |  | $— | 907 | $10000 |
| &nbsp;&nbsp;&nbsp; Shares issued in reinvestment of distributions | 22 | 216 | 34 | 364 |
| &nbsp;&nbsp;&nbsp; Shares redeemed |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net increase (decrease) | 22 | $216 | 941 | $10364 |
| **Advisor Class Shares:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Shares sold | 1086724 | $10494777 | 4721077 | $50601759 |
| &nbsp;&nbsp;&nbsp; Shares issued in reinvestment of distributions | 143406 | 1368833 | 263093 | 2791418 |
| &nbsp;&nbsp;&nbsp; Shares redeemed | (2547195) | (24498730) | (5400892) | (57476303) |
| &nbsp;&nbsp;&nbsp; Net increase (decrease) | (1317065) | $(12635120) | (416722) | $(4083126) |

---

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

 <br> 44 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

**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 Templeton Services, LLC (FT Services) | Administrative manager |
|  Franklin Distributors, LLC (Distributors) | Principal underwriter |
|  Franklin Templeton Investor Services, LLC (Investor Services) | Transfer agent |

---

**a. Management Fees** 

The Fund pays an investment management fee, calculated daily and paid monthly, to K2 Advisors of 1.50% per year of the average daily net assets of the Fund.

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

---

| |
|:---|
| **Subadvisors** |
|  Apollo Credit Management LLC |
|  Benefit Street Partners L.L.C.\* |
|  Ellington Global Asset Management, LLC |
|  Emso Asset Management Limited |
|  Medalist Partners, LP |

---

\* An affiliate of K2 Advisors.

**b. Administrative Fees** 

Under an agreement with K2 Advisors, FT Services provides administrative services to the Fund. The fee is paid by K2 Advisors based on the Fund's average daily net assets, and is not an additional expense of the Fund.

**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 | 0.25% |
|  Class C | 1.00% |
|  Class R | 0.50% |

---

 <br> franklintempleton.com Semiannual Report 45

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Long Short Credit 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 | $250.0 |
|  CDSC retained | $20.0 |

---

**e. Transfer Agent Fees** 

Each class of shares pays transfer agent fees to Investor Services for its performance of shareholder servicing obligations. Effective October 1, 2022, the fees are based on an annualized asset based fee of 0.016% plus a reduced transaction based fee. Prior to October 1, 2022, the fees were based on an annualized asset based fee of 0.02% plus a transaction based fee. 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 are allocated daily based upon their relative proportion of such classes' aggregate net assets. Class R6 pays Investor Services transfer agent fees specific to that class.

For the period ended November 30, 2022, the Fund paid transfer agent fees of $49,571, of which $17,072 was retained by Investor Services.

**f. 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 1.55% based on the average net assets of each class until September 30, 2023. Total expenses waived or paid are not subject to recapture subsequent to the Fund's fiscal year end.

Investor Services has contractually agreed in advance to waive or limit its fees so that the Class R6 transfer agent fees do not exceed 0.03% based on the average net assets of the class until September 30, 2023.

**4. Expense Offset Arrangement** 

The Fund has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund's custodian expenses. During the period ended November 30, 2022, the custodian fees were reduced as noted in the Statement of Operations.

**5. Income Taxes** 

At November 30, 2022, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:

---

| | |
|:---|:---|
|  Cost of investments | $70140266 |
|  Unrealized appreciation | $1277578 |
|  Unrealized depreciation | (8274364) |
|  Net unrealized appreciation (depreciation) | $(6996786) |

---

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of foreign currency transactions and wash sales.

 <br> 46 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

**6. Investment Transactions** 

Purchases and sales of investments and securities sold short (excluding short term securities) for the period ended November 30, 2022, aggregated $43,264,410 and $59,568,378, respectively.

**7. Credit Risk and Defaulted Securities** 

At November 30, 2022, the Fund had 27.0% of its portfolio invested in high yield, senior secured floating rate loans, or other securities rated below investment grade as determined by Nationally Recognized Statistical Credit Ratings Organizations and/or internally, by investment management 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, 2022, the Fund did not hold any distressed company securities for which interest recognition has been discontinued.

**8. Geopolitical Risk** 

On February 24, 2022, Russia engaged in military actions in the sovereign territory of Ukraine. The current political and financial uncertainty surrounding Russia and Ukraine may increase market volatility and the economic risk of investing in securities in these countries and may also cause uncertainty for the global economy and broader financial markets. The ultimate fallout and long-term impact from these events are not known. The Fund will continue to assess the impact on valuations and liquidity and will take any potential actions needed in accordance with procedures approved by the Board.

**9. Novel Coronavirus Pandemic** 

The global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations, regions and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially impact the value and performance of the Fund, its ability to buy and sell fund investments at appropriate valuations and its ability to achieve its investment objectives.

**10. 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, 2022, investments in restricted securities, excluding securities exempt from registration under the 1933 Act, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Shares** | **Issuer** | **Acquisition Date** | **Cost** | **Value** |
| 923 | Acosta Inc. | 12/31/19 | $8144 | $7569 |
| 1066 | Acosta Inc., cvt. pfd. | 12/31/19–11/03/22 | 50262 | 46797 |
| **Total Restricted Securities** (Value is 0.1% of Net Assets) | **Total Restricted Securities** (Value is 0.1% of Net Assets) | **Total Restricted Securities** (Value is 0.1% of Net Assets) | $58406 | $54366 |

---

 <br> franklintempleton.com Semiannual Report 47

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

**11. 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 Statement of Assets and Liabilities and the Statement of Operations. Funded portions of credit agreements are presented in the Schedule of Investments.

At November 30, 2022, unfunded commitments were as follows:

---

| | |
|:---|:---|
| **Borrower** | **Unfunded**<br> **Commitment** |
|  Athenahealth Group Inc., Term Loan B | $11314 |
|  Athenahealth Group Inc., Term Loan B | 1923 |
|  Bausch Health Cos. Inc., Term Loan B | 145805 |
|  Citrix Systems Inc., Term Loan B | 12531 |
|  CSC Holdings LLC, Term Loan B | 36807 |
|  EPIC Crude Holdings LP, Term Loan B | 12811 |
|  Euro Garage Ltd., Term Loan B | 18243 |
| K. Hovnanian Enterprises Inc., Term Loan RC | 41329 |
|  Oldcastle BuildingEnvelope Inc., Term Loan RC | 57435 |
|  OpenText Corp., Initial Term Loan | 36537 |
|  Upfield Group BV, Term Loan RC | 147323 |
|  Varsity Brands, Initial Term Loan | 3522 |
|  | $525580 |

---

**12. Other Derivative Information** 

At November 30, 2022, the investments in derivative contracts are reflected in the 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** | **Statement of Assets and<br>Liabilities Location** | **Fair Value** | **Statement of Assets and<br>Liabilities Location** | **Fair Value** |
|  Interest rate contracts | Investments in securities, at value | $4828 <sup>a</sup> | Options written, at value | $163000 |
|  | Variation margin on centrally cleared swap contracts | 198266 <sup>b</sup> | Variation margin on centrally cleared swap contracts | 2425 <sup>b</sup> |
|  Foreign exchange contracts | Unrealized appreciation on OTC forward exchange contracts | 329012 | Unrealized depreciation on OTC forward exchange contracts | 284239 |
|  | Investments in securities, at value | 7410 <sup>a</sup> |  |  |
|  Credit contracts |  |  | Variation margin on centrally cleared swap contracts | 88639 <sup>b</sup> |
|  | OTC swap contracts (upfront payments) | 168872 | OTC swap contracts (upfront receipts) | 91588 |
|  | Unrealized appreciation on OTC swap contracts | 22046 | Unrealized depreciation on OTC swap contracts | 114054 |
|  Equity contracts | Investments in securities, at value | 74952 <sup>a</sup> | Options written, at value | 65714 |
|  | Unrealized appreciation on OTC swap contracts | 6324 | Variation margin on futures contracts | 38978 <sup>b</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Totals |  | $811710 |  | $848637 |

---

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

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

 <br> 48 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

For the period ended November 30, 2022, the effect of derivative contracts in the Statement of Operations was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Derivative Contracts<br>Not Accounted for as<br>Hedging Instruments** | **Statement of<br>Operations Location** | **Net Realized<br>Gain (Loss)<br>for the Period** | **Statement of<br>Operations Location** | **Net Change in<br>Unrealized<br>Appreciation<br>(Depreciation)<br>for the Period** |
|  | Net realized gain (loss) from: |  | Net change in unrealized<br> appreciation (depreciation) on: |  |
|  Interest rate contracts | Investments | $(23083)<sup>a</sup> | Investments | $(130053)<sup>a</sup> |
|  | Written options | 46628 | Written options | (70590) |
|  | Futures contracts | 6176 | Futures contracts | (12653) |
|  | Swap contracts | 342466 | Swap contracts | 121359 |
|  Foreign exchange contracts | Investments | 297 <sup>a</sup> | Investments | (1251)<sup>a</sup> |
|  | Written options | (696) | Written options | 385 |
|  | Forward exchange contracts | 272404 | Forward exchange contracts | (41276) |
|  Credit contracts | Swap contracts | (483104) | Swap contracts | (186906) |
|  Equity contracts | Investments | (310727)<sup>a</sup> | Investments | 139905 <sup>a</sup> |
|  | Written options | 236832 | Written options | (141827) |
|  | Futures contracts | 237475 | Futures contracts | (108944) |
|  | Swap contracts | 174062 | Swap contracts | (6740) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Totals |  | $498730 |  | $(438591) |

---

<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 Statement of Operations.

For the period ended November 30, 2022, the average month end notional amount of futures contracts and swap contracts represented $2,609,561 and $13,299,255, respectively. The average month end fair value of options was $391,403. The average month end contract value of forward exchange contracts was $11,598,500.

At November 30, 2022, OTC derivative assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
|  | **Gross Amounts of<br>Assets and Liabilities<br>Presented in the<br>Statement of<br>Assets and Liabilities** | **Gross Amounts of<br>Assets and Liabilities<br>Presented in the<br>Statement of<br>Assets and Liabilities** |
| | **Assets<sup>a</sup>** | **Liabilities<sup>a</sup>** |
| **Derivatives** | | |
| &nbsp;&nbsp;&nbsp; Forward Exchange Contracts | $329012 | $284239 |
| &nbsp;&nbsp;&nbsp; Options Purchased | 14242 |  |
| &nbsp;&nbsp;&nbsp; Options Written |  | 162 |
| &nbsp;&nbsp;&nbsp; Swap Contracts | 197242 | 205642 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $540496 | $490043 |

---

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

 <br> franklintempleton.com Semiannual Report 49

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

**12. Other Derivative Information** (continued)

At November 30, 2022, OTC derivative assets, which may be offset against OTC derivative liabilities and collateral received from the counterparty, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Amounts Not Offset in the<br>Statement of Assets and Liabilities** | **Amounts Not Offset in the<br>Statement of Assets and Liabilities** | **Amounts Not Offset in the<br>Statement of Assets and Liabilities** | |
| |<br>**Gross Amounts<br>of Assets Presented<br>in the Statement of<br>Assets and Liabilities** | **Financial<br>Instruments<br>Available for Offset** | **Financial<br>Instruments<br>Collateral<br>Received** | **Cash<br>Collateral<br>Received<sup>a</sup>** |<br>**Net Amount (Not<br>less than zero)** |
| **Counterparty** | | | | | |
|  BNPP | $3911 | $(3911) | $— | $— | $— |
|  BOFA | 1783 | (1783) |  |  |  |
|  BZWS | 83290 | (41423) |  | (20000) | 21867 |
|  CITI | 35856 | (35856) |  |  |  |
|  DBAB | 5937 | (5937) |  |  |  |
|  GSCO | 42900 | (42900) |  |  |  |
|  JPHQ | 235789 | (153928) |  | (81861) |  |
|  JPHQ<sup>b</sup> | 119842 |  |  |  | 119842 |
|  MSCS | 11188 | (11188) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $540496 | $(296926) | $— | $(101861) | $141709 |

---

At November 30, 2022, OTC derivative liabilities, which may be offset against OTC derivative assets and collateral pledged to the counterparty, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Amounts Not Offset in the<br>Statement of Assets and Liabilities** | **Amounts Not Offset in the<br>Statement of Assets and Liabilities** | **Amounts Not Offset in the<br>Statement of Assets and Liabilities** | |
| |<br>**Gross Amounts of<br>Liabilities Presented<br>in the Statement of<br>Assets and Liabilities** | **Financial<br>Instruments<br>Available for Offset** | **Financial<br>Instruments<br>Collateral<br>Pledged** | **Cash<br>Collateral<br>Pledged<sup>a</sup>** |<br>**Net Amount (Not<br>less than zero)** |
| **Counterparty** | | | | | |
|  BNPP | $23656 | $(3911) | $— | $— | $19745 |
|  BOFA | 8459 | (1783) |  |  | 6676 |
|  BZWS | 41423 | (41423) |  |  |  |
|  CITI | 38544 | (35856) |  | (2688) |  |
|  DBAB | 9764 | (5937) |  |  | 3827 |
|  GSCO | 44469 | (42900) |  | (1569) |  |
|  JPHQ | 153928 | (153928) |  |  |  |
|  JPHQ<sup>b</sup> | 152596 |  |  |  | 152596 |
|  MSCS | 17204 | (11188) |  | (6016) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $490043 | $(296926) | $— | $(10273) | $182844 |

---

<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.

See Note 1(d) regarding derivative financial instruments.

See Abbreviations on page 53.

 <br> 50 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

**13. 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 $2.675 billion (Global Credit Facility) which matures on February 3, 2023. 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 shall, 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 Statement of Operations. During the period ended November 30, 2022, the Fund did not use the Global Credit Facility.

**14. 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;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 – quoted prices in active markets for identical financial instruments

&nbsp;&nbsp;&nbsp;&nbsp;&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;&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, 2022, in valuing the Fund's assets and liabilities carried at fair value, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in Securities:<sup>a</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity Investments<sup>b</sup> | $625059 | $70728 | $89362 | $785149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible Bonds |  | 1008441 |  | 1008441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds and Notes |  | 22237943 |  | 22237943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior Floating Rate Interests |  | 483025 |  | 483025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign Government and Agency Securities |  | 3175473 |  | 3175473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. Government and Agency Securities |  | 1606678 |  | 1606678 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset-Backed Securities and Commercial Mortgage-Backed Securities |  | 24135041 | 40328 | 24175369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options Purchased | 77946 | 9244 |  | 87190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short Term Investments | 13030542 | 467501 |  | 13498043 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Investments in Securities | $13733547 | $53194074 <sup>c</sup> | $129690 | $67057311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Financial Instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward Exchange Contracts | $— | $329012 | $— | $329012 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap Contracts |  | 226636 |  | 226636 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Other Financial Instruments | $— | $555648 | $— | $555648 |

---

 <br> franklintempleton.com Semiannual Report 51

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

**14. Fair Value Measurements** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Liabilities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Financial Instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options Written | $228714 | $— | $— | $228714 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities Sold Short<sup>a</sup> | 768464 | 3089160 |  | 3857624 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts | 38978 |  |  | 38978 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward Exchange Contracts |  | 284239 |  | 284239 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap Contracts |  | 205118 |  | 205118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unfunded Loan Commitments |  | 26697 | — <sup>d</sup> | 26697 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Other Financial Instruments | $1036156 | $3605214 | $— | $4641370 |

---

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

<sup>b</sup> Includes common stocks, preferred stocks and convertible preferred stocks as well as other equity interests.

<sup>c</sup> Includes foreign securities valued at $25,916, 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>d</sup> Includes securities determined to have no value at November 30, 2022.

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.

**15. New Accounting Pronouncements** 

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021 and December 2022, the FASB issued ASU No. 2021-01 and ASU No. 2022-06, with further amendments to Topic 848. The amendments in the ASUs provide optional temporary accounting recognition and financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR and other interbank-offered based reference rates as of the end of 2021 for certain LIBOR settings and 2023 for the remainder. The ASUs are effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2024. Management has reviewed the requirements and believes the adoption of these ASUs will not have a material impact on the financial statements.

In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820) – Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in the ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, should not be considered in measuring fair value. The ASU is effective for interim and annual reporting periods beginning after December 15, 2023, with the option of early adoption. Management has reviewed the requirements and believes that the adoption of the ASU will not have a material impact on the financial statements.

**16. Subsequent Events** 

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

 <br> 52 Semiannual Report franklintempleton.com

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

**Franklin K2 Long Short Credit Fund** (continued)

**Abbreviations** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Counterparty** | **Currency** | **Currency** | **Selected Portfolio** | **Selected Portfolio** |
| **BNPP** | BNP Paribas | **EUR** | Euro | **ARM** | Adjustable Rate Mortgage |
| **BOFA** | Bank of America, NA | **GBP** | British Pound | **CLO** | Collateralized Loan Obligation |
| **BZWS** | Barclays Bank PLC | **HUF** | Hungarian Forint | **ETF** | Exchange Traded Fund |
| **CITI** | Citigroup, NA | **JPY** | Japanese Yen | **FHLMC** | Federal Home Loan Mortgage Corp. |
| **DBAB** | Deutsche Bank AG | **MXN** | Mexican Peso | **FNMA** | Federal National Mortgage Association |
| **GSCO** | Goldman Sachs International | **PLN** | Polish Zloty | **FRN** | Floating Rate Note |
| **JPHQ** | JP Morgan Chase Bank, NA | **SEK** | Swedish Krona | **LIBOR** | London InterBank Offered Rate |
| **MSCS** | Morgan Stanley Capital Services LLC | **USD** | United States Dollar | **PIK** | Payment In-Kind |
| **Index** | Morgan Stanley Capital Services LLC | **ZAR** | South African Rand | **RC** | Revolving Loan Commitment |
| **Index** |  |  |  | **REIT** | Real Estate Investment Trust |
| **CDX.NA.HY** | CDX North America High Yield Index |  |  | **SFR** | Single Family Revenue |
|  |  |  |  | **SOFR** | Secured Overnight Financing Rate |
|  |  |  |  | **SPDR** | Standard & Poor's Depositary Receipt |
|  |  |  |  | **WIBOR** | Warsaw Interbank Offered Rate |

---

 <br> franklintempleton.com Semiannual Report 53

------

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Shareholder Information

Proxy Voting Policies and Procedures

The Fund's investment manager has established Proxy Voting Policies and Procedures (Policies) that the Fund uses to determine how to vote proxies relating to portfolio securities. Shareholders may view the Fund's complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Fund's proxy voting records are also made available online at franklintempleton.com and posted on the U.S. Securities and Exchange Commission's website at sec.gov and reflect the most recent 12-month period ended June 30.

Quarterly Schedule of Investments

The Trust, on behalf of the Fund, files a complete schedule of investments with the U.S. Securities and Exchange Commission for the first and third quarters for each fiscal year as an exhibit to its report on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the Commission's website at sec.gov. The filed form may also be viewed and copied at the Commission's Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling (800) SEC-0330.

Householding of Reports and Prospectuses

You will receive, or receive notice of the availability of, the Fund's financial reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the financial reports (to the extent received by mail) and summary prospectus. This process, called "householding," will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at (800) 632-2301. At any time you may view current prospectuses/summary prospectuses and financial reports on our website. If you choose, you may receive these documents through electronic delivery.

 <br> 54 Semiannual Report franklintempleton.com

------

Authorized for distribution only when accompanied or preceded by a summary prospectus and/or prospectus. Investors should carefully consider a fund's investment goals, risks, charges and expenses before investing. A prospectus contains this and other information; please read it carefully before investing.

To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.

------

---

| | | | |
|:---|:---|:---|:---|
| ![LOGO](g596514g20k13.jpg) | **Semiannual Report and Shareholder Letter**<br> **Franklin K2 Long Short Credit Fund** | **Semiannual Report and Shareholder Letter**<br> **Franklin K2 Long Short Credit Fund** |  |
|  | **Investment Manager** | **Distributor** | **Shareholder Services** |
|  | K2/D&S Management Co., L.L.C. | Franklin Distributors, LLC<br> (800) DIAL BEN<sup>®</sup>/342-5236<br> franklintempleton.com | (800) 632-2301 |
|© 2023 Franklin Templeton Investments. All rights reserved. |© 2023 Franklin Templeton Investments. All rights reserved. |  | 948 S 01/23 |

---

------

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

**Item 2.** **Code of Ethics.** <br>

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

**Item 3.** **Audit Committee Financial Expert.** <br>

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial experts are Ann Torre Bates and David W. Niemiec, and they are "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

**Item 4.** **Principal Accountant Fees and Services.** <br>

Not Applicable.

**Item 5.** **Audit Committee of Listed Registrants.** <br>

Not Applicable.

**Item 6.** **Investments.** <br>

Not applicable.

------

**Item 7.** **Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.** <br>

Not applicable.

**Item 8.** **Portfolio Managers of Closed-End Management Investment Companies.** <br>

Not applicable.

**Item 9.** **Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.** <br>

Not applicable.

**Item 10.** **Submission of Matters to a Vote of Security Holders.** <br>

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 11.** **Controls and Procedures.** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The registrant's principal executive and principal financial officers, or persons performing similar
functions, 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") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required
by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

&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 (17 CFR 270.30a-3(d))) 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.

**Item 12.** **Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.** <br>

Not applicable.

**Item 13.** **Exhibits.** <br>

[(a)(1) Code of Ethics](d402347dex99code.htm)

[(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Treasurer, Chief Financial Officer and Chief Accounting Officer](d402347dex99cert.htm)

------

[(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Treasurer, Chief Financial Officer and Chief Accounting Officer](d402347dex99906cert.htm)

------

**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, thereunto duly authorized.

(Registrant) <u>Franklin Alternative Strategies Funds</u><u> </u>

---

| | |
|:---|:---|
|  By (Signature and Title) | <u>/s/ Matthew T. Hinkle</u>  |
|  | Matthew T. Hinkle, Chief Executive Officer – Finance and Administration |
|  Date <u>1/30/2023</u><u> </u> | Date <u>1/30/2023</u><u> </u> |

---

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 (Signature and Title) | <u>/s/ Matthew T. Hinkle</u>  |
|  | Matthew T. Hinkle, Chief Executive Officer – Finance and Administration |
|  Date <u>1/30/2023</u>  | Date <u>1/30/2023</u>  |
|  By (Signature and Title) | <u>/s/ Christopher Kings</u>  |
|  | Christopher Kings, Treasurer, Chief Financial Officer and Chief Accounting Officer |
|  Date <u>1/30/2023</u>  | Date <u>1/30/2023</u>  |

---

## Ex-99.Code

**Code of Ethics for Principal Executives & Senior Financial Officers** 

---

| | |
|:---|:---|
| **Procedures** | <br>Revised December 19, 2014<br>|

---

**FRANKLIN TEMPLETON FUNDS** 

**CODE OF ETHICS FOR PRINCIPAL EXECUTIVES AND** 

**SENIOR FINANCIAL OFFICERS** 

I. Covered Officers and Purpose of the Code

This code of ethics (the "Code") applies to the Principal Executive Officers, Principal Financial Officer and Principal Accounting Officer (the "Covered Officers," each of whom is set forth in Exhibit A) of each investment company advised by a Franklin Resources subsidiary and that is registered with the United States Securities & Exchange Commission ("SEC") (collectively, "FT Funds") for the purpose of promoting:

&nbsp;&nbsp;&nbsp;&nbsp;• Honest and ethical conduct, including the ethical resolution of actual or apparent conflicts of interest between
personal and professional relationships;

&nbsp;&nbsp;&nbsp;&nbsp;• Full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or
submits to, the SEC and in other public communications made by or on behalf of the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;• Compliance with applicable laws and governmental rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;• The prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;• Accountability for adherence to the Code.

Each Covered Officer will be expected to adhere to a high standard of business ethics and must be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

*\** Rule 38a-1 under the Investment Company Act of 1940 ("1940 Act") and Rule 206(4)-7 under the Investment Advisers Act of 1940 ("Advisers Act") (together the "Compliance Rule") require registered investment companies and registered investment advisers to, among other things, adopt and implement written policies and procedures reasonably designed to prevent violations of the federal securities laws ("Compliance Rule Policies and Procedures").

CONFIDENTIAL INFORMATION. This document is the proprietary product of Franklin Templeton Investments. It may NOT be distributed outside the company unless it is made subject to a non-disclosure agreement and/or such release receives authorization by an FTI Chief Compliance Officer. Any unauthorized use, reproduction or transfer of this document is strictly prohibited. Franklin Templeton Investments <sup>©</sup> 2014. All Rights Reserved.

------

II. Other Policies and Procedures

This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder.

Franklin Resources, Inc. has separately adopted the <u>Code of Ethics and Business Conduct</u> ("Business Conduct"), which is applicable to all officers, directors and employees of Franklin Resources, Inc., including Covered Officers. It summarizes the values, principles and business practices that guide the employee's business conduct and also provides a set of basic principles to guide officers, directors and employees regarding the minimum ethical requirements expected of them. It supplements the values, principles and business conduct identified in the Code and other existing employee policies.

Additionally, the Franklin Templeton Funds have separately adopted the <u>FTI Personal Investments and Insider Trading Policy</u> governing personal securities trading and other related matters. The Code for Insider Trading provides for separate requirements that apply to the Covered Officers and others, and therefore is not part of this Code.

Insofar as other policies or procedures of Franklin Resources, Inc., the Funds, the Funds' adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superceded by this Code to the extent that they overlap or conflict with the provisions of this Code. Please review these other documents or consult with the Legal Department if have questions regarding the applicability of these policies to you.

III. Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

**Overview.** A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his or her service to, the FT Funds. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of apposition with the FT Funds.

Certain conflicts of interest arise out of the relationships between Covered Officers and the FT Funds and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the FT Funds because of their status as "affiliated persons" of the FT Funds. The FT Funds' and the investment advisers' compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the FT Funds, the investment advisers and the fund administrator of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the FT Funds, for the adviser, the administrator, or

------

for all three), be involved in establishing policies and implementing decisions that will have different effects on the adviser, administrator and the FT Funds. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the FT Funds, the adviser, and the administrator and is consistent with the performance by the Covered Officers of their duties as officers of the FT Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the FT Funds' Boards of Directors ("Boards") that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the FT Funds.

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;• Not use his or her personal influence or personal relationships improperly to influence investment decisions or
financial reporting by the FT Funds whereby the Covered Officer would benefit personally to the detriment of the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;• Not cause the FT Funds to take action, or fail to take action, for the individual personal benefit of the Covered
Officer rather than the benefit the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;• Not retaliate against any other Covered Officer or any employee of the FT Funds or their affiliated persons for reports
of potential violations that are made in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;• Report at least annually the following affiliations or other
relationships:<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ all directorships for public companies and all companies that are required to file reports with the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ any direct or indirect business relationship with any independent directors of the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ any direct or indirect business relationship with any independent public accounting firm (which are not related to the
routine issues related to the firm's service as the Covered Persons accountant); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ any direct or indirect interest in any transaction with any FT Fund that will benefit the officer (not including
benefits derived from the advisory, sub-advisory, distribution or service agreements with affiliates of Franklin Resources).

These reports will be reviewed by the Legal Department for compliance with the Code.

There are some conflict of interest situations that should always be approved in writing by Franklin Resources General Counsel or Deputy General Counsel, if material. Examples of these include<sup>2</sup>:

&nbsp;&nbsp;&nbsp;&nbsp;• Service as a director on the board of any public or private Company.

------

<sup>1</sup> Reporting of these affiliations or other relationships shall be made by completing the annual Directors and Officers Questionnaire and returning the questionnaire to Franklin Resources Inc, General Counsel or Deputy General Counsel.

<sup>2</sup> Any activity or relationship that would present a conflict for a Covered Officer may also present a conflict for the Covered Officer if a member of the Covered Officer's immediate family engages in such an activity or has such a relationship. The Cover Person should also obtain written approval by FT's General Counsel in such situations.

------

&nbsp;&nbsp;&nbsp;&nbsp;• The receipt of any gifts in excess of $100 from any person, from any corporation or association.

&nbsp;&nbsp;&nbsp;&nbsp;• The receipt of any entertainment from any Company with which the FT Funds has current or prospective business dealings
unless such entertainment is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety. Notwithstanding the foregoing, the Covered Officers must obtain prior approval from the
Franklin Resources General Counsel for any entertainment with a value in excess of $1000.

&nbsp;&nbsp;&nbsp;&nbsp;• Any ownership interest in, or any consulting or employment relationship with, any of the FT Fund's service
providers, other than an investment adviser, principal underwriter, administrator or any affiliated person thereof.

&nbsp;&nbsp;&nbsp;&nbsp;• A direct or indirect financial interest in commissions, transaction charges or spreads paid by the FT Funds for
effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership.

&nbsp;&nbsp;&nbsp;&nbsp;• Franklin Resources General Counsel or Deputy General Counsel will provide a report to the FT Funds Audit Committee of
any approvals granted at the next regularly scheduled meeting.

IV. Disclosure and Compliance

&nbsp;&nbsp;&nbsp;&nbsp;• Each Covered Officer should familiarize himself with the disclosure requirements generally applicable to the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;• Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the FT Funds to
others, whether within or outside the FT Funds, including to the FT Funds' directors and auditors, and to governmental regulators and self-regulatory organizations;

&nbsp;&nbsp;&nbsp;&nbsp;• Each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other
officers and employees of the FT Funds, the FT Fund's adviser and the administrator with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the FT Funds file with, or submit to, the SEC
and in other public communications made by the FT Funds; and

&nbsp;&nbsp;&nbsp;&nbsp;• It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by
applicable laws, rules and regulations.

V. Reporting and Accountability

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;• Upon becoming a covered officer affirm in writing to the Board that he or she has received, read, and understands the
Code (see Exhibit B);

&nbsp;&nbsp;&nbsp;&nbsp;• Annually thereafter affirm to the Board that he has complied with the requirements of the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;• Notify Franklin Resources' General Counsel or Deputy General Counsel promptly if he or she knows of any violation
of this Code. Failure to do so is itself is a violation of this

------

Code. <br>

Franklin Resources' General Counsel and Deputy General Counsel are responsible for applying this Code to specific situations in which questions are presented under it and have the authority to interpret this Code in any particular situation.<sup>3</sup> However, the Independent Directors of the respective FT Funds will consider any approvals or waivers<sup>4</sup> sought by any Chief Executive Officers of the Funds.

The FT Funds will follow these procedures in investigating and enforcing this Code:

&nbsp;&nbsp;&nbsp;&nbsp;• Franklin Resources General Counsel or Deputy General Counsel will take all appropriate action to investigate any
potential violations reported to the Legal Department;

&nbsp;&nbsp;&nbsp;&nbsp;• If, after such investigation, the General Counsel or Deputy General Counsel believes that no violation has occurred, The
General Counsel is not required to take any further action;

&nbsp;&nbsp;&nbsp;&nbsp;• Any matter that the General Counsel or Deputy General Counsel believes is a violation will be reported to the
Independent Directors of the appropriate FT Fund;

&nbsp;&nbsp;&nbsp;&nbsp;• If the Independent Directors concur that a violation has occurred, it will inform and make a recommendation to the Board
of the appropriate FT Fund or Funds, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its
board; or a recommendation to dismiss the Covered Officer;

&nbsp;&nbsp;&nbsp;&nbsp;• The Independent Directors will be responsible for granting waivers, as appropriate; and

&nbsp;&nbsp;&nbsp;&nbsp;• Any changes to or waivers of this Code will, to the extent required, are disclosed as provided by SEC rules.<sup>5</sup>

VI. Other Policies and Procedures

This Code shall be the sole code of ethics adopted by the FT Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the FT Funds, the FT Funds' advisers, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The FTI Personal Investments and Insider Trading Policy, adopted by the FT Funds, FT investment advisers and FT Fund's principal underwriter pursuant to Rule 17j-1 under the Investment Company Act, the Code of Ethics and Business Conduct and more detailed policies and procedures set forth in FT's Employee Handbook are separate requirements applying to the Covered Officers and others, and are not part of this Code.

------

<sup>3</sup> Franklin Resources General Counsel and Deputy General Counsel are authorized to consult, as appropriate, with members of the Audit Committee, counsel to the FT Funds and counsel to the Independent Directors, and are encouraged to do so.

<sup>4</sup> Item 2 of Form N-CSR defines "waiver" as "the approval by the registrant of a material departure from a provision of the code of ethics" and "implicit waiver," which must also be disclosed, as "the registrant's failure to take action within a reasonable period of time regarding a material departure from a provision of the code of ethics that has been made known to an executive officer" of the registrant. See Part X.

<sup>5</sup> See Part X.

------

VII. Amendments

Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the FT Funds' Board including a majority of independent directors.

VIII. Confidentiality

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the FT Funds' Board and their counsel.

IX. Internal Use

The Code is intended solely for the internal use by the FT Funds and does not constitute an admission, by or on behalf of any FT Funds, as to any fact, circumstance, or legal conclusion.

X. Disclosure on Form N-CSR

Item 2 of Form N-CSR requires a registered management investment company to disclose annually whether, as of the end of the period covered by the report, it has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these officers are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, it must explain why it has not done so.

The registrant must also: (1) file with the SEC a copy of the code as an exhibit to its annual report; (2) post the text of the code on its Internet website and disclose, in its most recent report on Form N-CSR, its Internet address and the fact that it has posted the code on its Internet website; or (3) undertake in its most recent report on Form N-CSR to provide to any person without charge, upon request, a copy of the code and explain the manner in which such request may be made. Disclosure is also required of amendments to, or waivers (including implicit waivers) from, a provision of the code in the registrant's annual report on Form N-CSR or on its website. If the registrant intends to satisfy the requirement to disclose amendments and waivers by posting such information on its website, it will be required to disclose its Internet address and this intention.

The Legal Department shall be responsible for ensuring that:

&nbsp;&nbsp;&nbsp;&nbsp;• a copy of the Code is filed with the SEC as an exhibit to each Fund's annual report; and

&nbsp;&nbsp;&nbsp;&nbsp;• any amendments to, or waivers (including implicit waivers) from, a provision of the Code is disclosed in the
registrant's annual report on Form N-CSR.

In the event that the foregoing disclosure is omitted or is determined to be incorrect, the Legal Department shall promptly file such information with the SEC as an amendment to Form N-CSR.

In such an event, the Fund Chief Compliance Officer shall review the Code and propose such changes to the Code as are necessary or appropriate to prevent reoccurrences.

------

**EXHIBIT A** 

Persons Covered by the Franklin Templeton Funds

Code of Ethics

January 1, 2022

**FRANKLIN GROUP OF FUNDS** 

---

| | |
|:---|:---|
| Edward Perks | President and Chief Executive Officer – Investment Management |
| Rupert H. Johnson, Jr. | Chairman of the Board and Vice President |
| Michael McCarthy | President and Chief Executive Officer – Investment Management |
| Sonal Desai, Ph D | President and Chief Executive Officer – Investment Management |
| Matthew Hinkle | Chief Executive Officer – Finance and Administration |
| Christopher Kings | Chief Financial Officer and Chief Accounting Officer and Treasurer |

---

**FRANKLIN MUTUAL SERIES FUNDS** 

---

| | |
|:---|:---|
| Christian K. Correa | Chief Executive Officer – Investment Management |
| Matthew Hinkle | Chief Executive Officer – Finance and Administration |
| Christopher Kings | Chief Financial Officer and Chief Accounting Officer and Treasurer |

---

**FRANKLIN ALTERNATIVE STRATEGIES FUNDS** 

---

| | |
|:---|:---|
| Brooks Ritchey | President and Chief Executive Officer – Investment Management |
| Matthew Hinkle | Chief Executive Officer – Finance and Administration |
| Christopher Kings | Chief Financial Officer, Chief Accounting Officer and Treasurer |

---

**TEMPLETON GROUP OF FUNDS** 

---

| | |
|:---|:---|
| Rupert H. Johnson Jr. | Chairman of the Board and Vice President |
| Manraj S. Sekhon | President and Chief Executive Officer – Investment Management |
| Michael Hasenstab, Ph.D. | President and Chief Executive Officer – Investment Management |
| Alan Bartlett | President and Chief Executive Officer – Investment Management |
| Matthew Hinkle | Chief Executive Officer – Finance and Administration |
| Christopher Kings | Chief Financial Officer, Chief Accounting Officer and Treasurer |

---

------

**Exhibit B** 

**ACKNOWLEDGMENT FORM** 

**Franklin Templeton Funds Code of Ethics** 

**For Principal Executives and Senior Financial Officers** 

**Instructions:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Complete all sections of this form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Print the completed form, sign, and date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Submit completed form to FT's General Counsel c/o Code of Ethics Administration within 10 days of becoming a
Covered Officer and by February 15<sup>th</sup> of each subsequent year.

**E-mail:** Code of Ethics Inquiries & Requests (internal address);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; lpreclear@franklintempleton.com (external address)

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;**Covered Officer's Name:** |
| &nbsp;&nbsp;&nbsp;**Title:** |
| &nbsp;&nbsp;&nbsp;**Department:** |
| &nbsp;&nbsp;&nbsp;**Location:** |
| &nbsp;&nbsp;&nbsp;**Certification for Year Ending:** |

---

---

| | |
|:---|:---|
| ***To:*** | ***Franklin Resources General Counsel, Legal Department***  |

---

I acknowledge receiving, reading and understanding the Franklin Templeton Fund's Code of Ethics for Principal Executive Officers and Senior Financial Officers (the "Code"). I will comply fully with all provisions of the Code to the extent they apply to me during the period of my employment. I further understand and acknowledge that any violation of the Code may subject me to disciplinary action, including termination of employment.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **** | ***Signature*** | **** | ***Date signed*** | **** |

---

------

## Ex-99.Cert

**Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the** 

**Sarbanes-Oxley Act** 

I, Matthew T. Hinkle, certify that:

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

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;

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;

4. The registrant's other certifying officer(s) 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

------

5. The registrant's other certifying officer(s) 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: 1/30/2023

---

| |
|:---|
| <u>/s/ Matthew T. Hinkle</u>  |
| Matthew T. Hinkle, |
| Chief Executive Officer – Finance and Administration |

---

------

**Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act** 

I, Christopher Kings, certify that:

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

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;

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;

4. The registrant's other certifying officer(s) 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

5. The registrant's other certifying officer(s) 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: 1/30/2023

---

| |
|:---|
| <u>/s/ Christopher Kings</u>  |
| Christopher Kings |
| Treasurer, Chief Financial Officer and Chief Accounting Officer |

---

## Exhibit 99.906

**Certification Pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the**

**Sarbanes-Oxley Act**

I, Matthew T. Hinkle, Chief Executive Officer of the **Franklin Alternative Strategies Funds** (the "Registrant"), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The periodic report on Form N-CSR of the Registrant for the period
ended 11/30/2022 (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&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.

Dated: 1/30/2023

---

| |
|:---|
| <u>/s/ Matthew T. Hinkle</u> |
| Matthew T. Hinkle, |
| Chief Executive Officer – Finance and Administration |

---

I, Christopher Kings, Chief Financial Officer of the **Franklin Alternative Strategies Funds** (the "Registrant"), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The periodic report on Form N-CSR of the Registrant for the period
ended 11/30/2022 (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&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.

Dated: 1/30/2023

---

| |
|:---|
| <u>/s/ Christopher Kings</u> |
| Christopher Kings |
| Treasurer, Chief Financial Officer and Chief Accounting Officer |

---