# EDGAR Filing Document

**Accession Number:** 0001535538
**File Stem:** 0001133228-25-007720
**Filing Date:** 2025-7
**Character Count:** 721347
**Document Hash:** 87591d85359cff96f5ffcdf208db8e36
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001133228-25-007720.hdr.sgml**: 20250729

**ACCESSION NUMBER**: 0001133228-25-007720

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 35

**CONFORMED PERIOD OF REPORT**: 20250531

**FILED AS OF DATE**: 20250729

**DATE AS OF CHANGE**: 20250729

**EFFECTIVENESS DATE**: 20250729

**FILER**: 

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

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

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-22641
- **FILM NUMBER:** 251162203

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

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

## Series and Classes Contracts Data

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

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

?xml version='1.0' encoding='ASCII'? 2025-06-115199780_K2AlternativeStrategiesFund_ClassA_TSRAnnual

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

**FORM N-CSR**

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

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

**Franklin Alternative Strategies Funds**

(Exact name of registrant as specified in charter)

**One Franklin Parkway, San Mateo, CA 94403-1906**

(Address of principal executive offices) (Zip code)

Alison Baur

Franklin Templeton

One Franklin Parkway

San Mateo, CA 94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code: **650 312-2000**

Date of fiscal year end: **May 31**

Date of reporting period: **May 31, 2025**

ITEM 1. REPORT TO STOCKHOLDERS

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

---

| | |
|:---|:---|
| **K2 Alternative Strategies Fund**  | ![image](img448_202405131411777.jpg) |
| Class A [FAAAX] | ![image](img448_202405131411777.jpg) |
| Annual Shareholder Report \| May 31, 2025  | ![image](img448_202405131411777.jpg) |
| ![image](img450_202407221332340.jpg) | ![image](img450_202407221332340.jpg) |

---

This annual shareholder report contains important information about K2 Alternative Strategies Fund for the period June 1, 2024, to May 31, 2025.

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

***This report describes changes to the Fund that occurred during the reporting period.***

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

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class A | $247 | 2.40% |

---

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

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended May 31, 2025, Class A shares of K2 Alternative Strategies Fund returned 5.86%. The Fund compares its performance to the HFRX Global Hedge Fund Index and the ICE BofA U.S. 3-Month Treasury Bill Index, which returned 3.93% and 4.76%, respectively, for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | At the asset class level, long positioning in equities drove gains, led by the industrials and utilities sectors. Long fixed income positioning substantially bolstered performance. Key contributors included the consumer discretionary sector and emerging market sovereign bonds. |
| ↑ | Relative Value and Long Short Equity were the largest strategy contributors. Long fixed income positioning drove gains for relative value. Within Long Short Equity, long equity positioning in the industrials sector led contribution. |
| ↑ | Long Short Equity subadvisor ActusRay was the largest contributor, driven by long equity positioning, especially in industrials. Global Macro subadvisor CFM was also as a key contributor on the strength of long positioning in developed market equity indexes and short commodities positioning. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Among asset classes, currency positioning weighed the most on returns, owing in large part to hedges against the Swiss franc and Mexican peso longs. Commodity positioning (short overall) and interest rate positioning (long) also detracted, though more modestly. |
| ↓ | All four primary strategies contributed to performance, but the Strategic Overlay, which was active across the period under review, was an overall detractor, due primarily to long positioning in Nasdaq 100 Index futures. |
| ↓ | Only two of the 11 subadvisors, Global Macro's Graham and Long Short Equity's Jennison, detracted. Commodity (short overall) and fixed income (long) positioning weighed on returns for Graham. Long equity positioning in the pharmaceuticals, biotechnology and life sciences industry drove losses for health care-focused Jennison. |

---

**Use of derivatives and the impact on performance:**

Derivatives make up a significant portion of the Fund's holdings across multiple asset classes and security types. During the period, derivatives were a key contributor to performance, as gains from equity total return swaps and equity index futures, outweighed losses from credit default swaps, foreign exchange forward contracts, fixed income and commodity futures.

K2 Alternative Strategies Fund PAGE 1 068-ATSR-0725

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT ($** **9,450 AFTER MAXIMUM APPLICABLE SALES CHARGE) –**

**Class A** 5/31/2015 — 5/31/2025

![image](ts4181img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended May 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class A**  | 5.86 | 3.76 | 2.54 |
| **Class A (with sales charge)**  | 0.03 | 2.59 | 1.96 |
| **MSCI All Country World Index-NR**  | 13.65 | 13.37 | 9.25 |
| **HFRX Global Hedge Fund Index**  | 3.93 | 3.66 | 1.87 |
| **ICE BofA U.S. 3-Month Treasury Bill Index**  | 4.76 | 2.70 | 1.94 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods prior to September 10, 2018, has been restated to reflect the current maximum sales charge, which is lower than the maximum sales charge prior to that date.

Effective March 1, 2024, the Fund adopted its current investment strategy.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of May 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $521108157 |
| **Total Number of Portfolio Holdings**<sup>\*</sup>  | 886 |
| **Total Management Fee Paid** | $8107491 |
| **Portfolio Turnover Rate** | 266.59% |

---

\* Does not include derivatives, except purchased options, if any.

K2 Alternative Strategies Fund PAGE 2 068-ATSR-0725

------

**WHAT DID THE FUND INVEST IN?** (as of May 31, 2025)

---

| | | |
|:---|:---|:---|
| **Strategy Allocation (% of Total Net Assets)** | **Long Positions** | **Short Positions** |
|  Long Short Equity  | 47.0 | -31.6 |
|  Relative Value  | 52.8 | -33.1 |
|  Event Driven  | 7.0 | -4.4 |
|  Global Macro  | 109.3 | -182.2 |
|  Strategic Overlay  | 2.0 | 0.0 |
|  **Total**  | 218.1 | -251.3 |

---

Figures include the effect of gross notional exposure of derivatives.

**HOW HAS THE FUND CHANGED?**

Effective June 3, 2024, Lillian C. Knight and Art Vinokur were added as portfolio managers of the Fund. Effective September 30, 2024, Brooks Ritchey and Anthony Zanolla stepped down as portfolio managers of the Fund.

This is a summary of certain changes and certain planned changes to the Fund since June 1, 2024. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by October 1, 2025 at https://www.franklintempleton.com/regulatory-fund-documents or upon request at

(800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.

---

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

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

K2 Alternative Strategies Fund PAGE 3 068-ATSR-0725

------

---

| | |
|:---|:---|
| **K2 Alternative Strategies Fund**  | ![image](img448_202405131411777.jpg) |
| Class C [FASCX] | ![image](img448_202405131411777.jpg) |
| Annual Shareholder Report \| May 31, 2025  | ![image](img448_202405131411777.jpg) |
| ![image](img450_202407221332340.jpg) | ![image](img450_202407221332340.jpg) |

---

This annual shareholder report contains important information about K2 Alternative Strategies Fund for the period June 1, 2024, to May 31, 2025.

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

***This report describes changes to the Fund that occurred during the reporting period.***

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

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class C | $323 | 3.15% |

---

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

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended May 31, 2025, Class C shares of K2 Alternative Strategies Fund returned 5.04%. The Fund compares its performance to the HFRX Global Hedge Fund Index and the ICE BofA U.S. 3-Month Treasury Bill Index, which returned 3.93% and 4.76%, respectively, for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | At the asset class level, long positioning in equities drove gains, led by the industrials and utilities sectors. Long fixed income positioning substantially bolstered performance. Key contributors included the consumer discretionary sector and emerging market sovereign bonds. |
| ↑ | Relative Value and Long Short Equity were the largest strategy contributors. Long fixed income positioning drove gains for relative value. Within Long Short Equity, long equity positioning in the industrials sector led contribution. |
| ↑ | Long Short Equity subadvisor ActusRay was the largest contributor, driven by long equity positioning, especially in industrials. Global Macro subadvisor CFM was also as a key contributor on the strength of long positioning in developed market equity indexes and short commodities positioning. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Among asset classes, currency positioning weighed the most on returns, owing in large part to hedges against the Swiss franc and Mexican peso longs. Commodity positioning (short overall) and interest rate positioning (long) also detracted, though more modestly. |
| ↓ | All four primary strategies contributed to performance, but the Strategic Overlay, which was active across the period under review, was an overall detractor, due primarily to long positioning in Nasdaq 100 Index futures. |
| ↓ | Only two of the 11 subadvisors, Global Macro's Graham and Long Short Equity's Jennison, detracted. Commodity (short overall) and fixed income (long) positioning weighed on returns for Graham. Long equity positioning in the pharmaceuticals, biotechnology and life sciences industry drove losses for health care-focused Jennison. |

---

**Use of derivatives and the impact on performance:**

Derivatives make up a significant portion of the Fund's holdings across multiple asset classes and security types. During the period, derivatives were a key contributor to performance, as gains from equity total return swaps and equity index futures, outweighed losses from credit default swaps, foreign exchange forward contracts, fixed income and commodity futures.

K2 Alternative Strategies Fund PAGE 1 520-ATSR-0725

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class C** 5/31/2015 — 5/31/2025

![image](ts4182img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended May 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class C**  | 5.04 | 2.98 | 1.77 |
| **Class C (with sales charge)**  | 4.09 | 2.98 | 1.77 |
| **MSCI All Country World Index-NR**  | 13.65 | 13.37 | 9.25 |
| **HFRX Global Hedge Fund Index**  | 3.93 | 3.66 | 1.87 |
| **ICE BofA U.S. 3-Month Treasury Bill Index**  | 4.76 | 2.70 | 1.94 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Effective March 1, 2024, the Fund adopted its current investment strategy.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of May 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $521108157 |
| **Total Number of Portfolio Holdings**<sup>\*</sup>  | 886 |
| **Total Management Fee Paid** | $8107491 |
| **Portfolio Turnover Rate** | 266.59% |

---

\* Does not include derivatives, except purchased options, if any.

**WHAT DID THE FUND INVEST IN?** (as of May 31, 2025)

---

| | | |
|:---|:---|:---|
| **Strategy Allocation (% of Total Net Assets)** | **Long Positions** | **Short Positions** |
|  Long Short Equity  | 47.0 | -31.6 |
|  Relative Value  | 52.8 | -33.1 |
|  Event Driven  | 7.0 | -4.4 |
|  Global Macro  | 109.3 | -182.2 |
|  Strategic Overlay  | 2.0 | 0.0 |
|  **Total**  | 218.1 | -251.3 |

---

Figures include the effect of gross notional exposure of derivatives.

K2 Alternative Strategies Fund PAGE 2 520-ATSR-0725

------

**HOW HAS THE FUND CHANGED?**

Effective June 3, 2024, Lillian C. Knight and Art Vinokur were added as portfolio managers of the Fund. Effective September 30, 2024, Brooks Ritchey and Anthony Zanolla stepped down as portfolio managers of the Fund.

This is a summary of certain changes and certain planned changes to the Fund since June 1, 2024. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by October 1, 2025 at https://www.franklintempleton.com/regulatory-fund-documents or upon request at

(800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.

---

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

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

K2 Alternative Strategies Fund PAGE 3 520-ATSR-0725

------

---

| | |
|:---|:---|
| **K2 Alternative Strategies Fund**  | ![image](img448_202405131411777.jpg) |
| Class R [FSKKX] | ![image](img448_202405131411777.jpg) |
| Annual Shareholder Report \| May 31, 2025  | ![image](img448_202405131411777.jpg) |
| ![image](img450_202407221332340.jpg) | ![image](img450_202407221332340.jpg) |

---

This annual shareholder report contains important information about K2 Alternative Strategies Fund for the period June 1, 2024, to May 31, 2025.

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

***This report describes changes to the Fund that occurred during the reporting period.***

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

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class R | $272 | 2.65% |

---

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

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended May 31, 2025, Class R shares of K2 Alternative Strategies Fund returned 5.40%. The Fund compares its performance to the HFRX Global Hedge Fund Index and the ICE BofA U.S. 3-Month Treasury Bill Index, which returned 3.93% and 4.76%, respectively, for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | At the asset class level, long positioning in equities drove gains, led by the industrials and utilities sectors. Long fixed income positioning substantially bolstered performance. Key contributors included the consumer discretionary sector and emerging market sovereign bonds. |
| ↑ | Relative Value and Long Short Equity were the largest strategy contributors. Long fixed income positioning drove gains for relative value. Within Long Short Equity, long equity positioning in the industrials sector led contribution. |
| ↑ | Long Short Equity subadvisor ActusRay was the largest contributor, driven by long equity positioning, especially in industrials. Global Macro subadvisor CFM was also as a key contributor on the strength of long positioning in developed market equity indexes and short commodities positioning. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Among asset classes, currency positioning weighed the most on returns, owing in large part to hedges against the Swiss franc and Mexican peso longs. Commodity positioning (short overall) and interest rate positioning (long) also detracted, though more modestly. |
| ↓ | All four primary strategies contributed to performance, but the Strategic Overlay, which was active across the period under review, was an overall detractor, due primarily to long positioning in Nasdaq 100 Index futures. |
| ↓ | Only two of the 11 subadvisors, Global Macro's Graham and Long Short Equity's Jennison, detracted. Commodity (short overall) and fixed income (long) positioning weighed on returns for Graham. Long equity positioning in the pharmaceuticals, biotechnology and life sciences industry drove losses for health care-focused Jennison. |

---

**Use of derivatives and the impact on performance:**

Derivatives make up a significant portion of the Fund's holdings across multiple asset classes and security types. During the period, derivatives were a key contributor to performance, as gains from equity total return swaps and equity index futures, outweighed losses from credit default swaps, foreign exchange forward contracts, fixed income and commodity futures.

K2 Alternative Strategies Fund PAGE 1 820-ATSR-0725

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class R** 5/31/2015 — 5/31/2025

![image](ts4184img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended May 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class R**  | 5.40 | 3.47 | 2.20 |
| **MSCI All Country World Index-NR**  | 13.65 | 13.37 | 9.25 |
| **HFRX Global Hedge Fund Index**  | 3.93 | 3.66 | 1.87 |
| **ICE BofA U.S. 3-Month Treasury Bill Index**  | 4.76 | 2.70 | 1.94 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Effective March 1, 2024, the Fund adopted its current investment strategy.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of May 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $521108157 |
| **Total Number of Portfolio Holdings**<sup>\*</sup>  | 886 |
| **Total Management Fee Paid** | $8107491 |
| **Portfolio Turnover Rate** | 266.59% |

---

\* Does not include derivatives, except purchased options, if any.

**WHAT DID THE FUND INVEST IN?** (as of May 31, 2025)

---

| | | |
|:---|:---|:---|
| **Strategy Allocation (% of Total Net Assets)** | **Long Positions** | **Short Positions** |
|  Long Short Equity  | 47.0 | -31.6 |
|  Relative Value  | 52.8 | -33.1 |
|  Event Driven  | 7.0 | -4.4 |
|  Global Macro  | 109.3 | -182.2 |
|  Strategic Overlay  | 2.0 | 0.0 |
|  **Total**  | 218.1 | -251.3 |

---

Figures include the effect of gross notional exposure of derivatives.

K2 Alternative Strategies Fund PAGE 2 820-ATSR-0725

------

**HOW HAS THE FUND CHANGED?**

Effective June 3, 2024, Lillian C. Knight and Art Vinokur were added as portfolio managers of the Fund. Effective September 30, 2024, Brooks Ritchey and Anthony Zanolla stepped down as portfolio managers of the Fund.

This is a summary of certain changes and certain planned changes to the Fund since June 1, 2024. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by October 1, 2025 at https://www.franklintempleton.com/regulatory-fund-documents or upon request at

(800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.

---

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

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

K2 Alternative Strategies Fund PAGE 3 820-ATSR-0725

------

---

| | |
|:---|:---|
| **K2 Alternative Strategies Fund**  | ![image](img448_202405131411777.jpg) |
| Class R6 [FASRX] | ![image](img448_202405131411777.jpg) |
| Annual Shareholder Report \| May 31, 2025  | ![image](img448_202405131411777.jpg) |
| ![image](img450_202407221332340.jpg) | ![image](img450_202407221332340.jpg) |

---

This annual shareholder report contains important information about K2 Alternative Strategies Fund for the period June 1, 2024, to May 31, 2025.

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

***This report describes changes to the Fund that occurred during the reporting period.***

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

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Class R6 | $218 | 2.12% |

---

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

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended May 31, 2025, Class R6 shares of K2 Alternative Strategies Fund returned 6.08%. The Fund compares its performance to the HFRX Global Hedge Fund Index and the ICE BofA U.S. 3-Month Treasury Bill Index, which returned 3.93% and 4.76%, respectively, for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | At the asset class level, long positioning in equities drove gains, led by the industrials and utilities sectors. Long fixed income positioning substantially bolstered performance. Key contributors included the consumer discretionary sector and emerging market sovereign bonds. |
| ↑ | Relative Value and Long Short Equity were the largest strategy contributors. Long fixed income positioning drove gains for relative value. Within Long Short Equity, long equity positioning in the industrials sector led contribution. |
| ↑ | Long Short Equity subadvisor ActusRay was the largest contributor, driven by long equity positioning, especially in industrials. Global Macro subadvisor CFM was also as a key contributor on the strength of long positioning in developed market equity indexes and short commodities positioning. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Among asset classes, currency positioning weighed the most on returns, owing in large part to hedges against the Swiss franc and Mexican peso longs. Commodity positioning (short overall) and interest rate positioning (long) also detracted, though more modestly. |
| ↓ | All four primary strategies contributed to performance, but the Strategic Overlay, which was active across the period under review, was an overall detractor, due primarily to long positioning in Nasdaq 100 Index futures. |
| ↓ | Only two of the 11 subadvisors, Global Macro's Graham and Long Short Equity's Jennison, detracted. Commodity (short overall) and fixed income (long) positioning weighed on returns for Graham. Long equity positioning in the pharmaceuticals, biotechnology and life sciences industry drove losses for health care-focused Jennison. |

---

**Use of derivatives and the impact on performance:**

Derivatives make up a significant portion of the Fund's holdings across multiple asset classes and security types. During the period, derivatives were a key contributor to performance, as gains from equity total return swaps and equity index futures, outweighed losses from credit default swaps, foreign exchange forward contracts, fixed income and commodity futures.

K2 Alternative Strategies Fund PAGE 1 830-ATSR-0725

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Class R6** 5/31/2015 — 5/31/2025

![image](ts4183img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended May 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class R6**  | 6.08 | 4.06 | 2.90 |
| **MSCI All Country World Index-NR**  | 13.65 | 13.37 | 9.25 |
| **HFRX Global Hedge Fund Index**  | 3.93 | 3.66 | 1.87 |
| **ICE BofA U.S. 3-Month Treasury Bill Index**  | 4.76 | 2.70 | 1.94 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Effective March 1, 2024, the Fund adopted its current investment strategy.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of May 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $521108157 |
| **Total Number of Portfolio Holdings**<sup>\*</sup>  | 886 |
| **Total Management Fee Paid** | $8107491 |
| **Portfolio Turnover Rate** | 266.59% |

---

\* Does not include derivatives, except purchased options, if any.

**WHAT DID THE FUND INVEST IN?** (as of May 31, 2025)

---

| | | |
|:---|:---|:---|
| **Strategy Allocation (% of Total Net Assets)** | **Long Positions** | **Short Positions** |
|  Long Short Equity  | 47.0 | -31.6 |
|  Relative Value  | 52.8 | -33.1 |
|  Event Driven  | 7.0 | -4.4 |
|  Global Macro  | 109.3 | -182.2 |
|  Strategic Overlay  | 2.0 | 0.0 |
|  **Total**  | 218.1 | -251.3 |

---

Figures include the effect of gross notional exposure of derivatives.

K2 Alternative Strategies Fund PAGE 2 830-ATSR-0725

------

**HOW HAS THE FUND CHANGED?**

Effective June 3, 2024, Lillian C. Knight and Art Vinokur were added as portfolio managers of the Fund. Effective September 30, 2024, Brooks Ritchey and Anthony Zanolla stepped down as portfolio managers of the Fund.

This is a summary of certain changes and certain planned changes to the Fund since June 1, 2024. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by October 1, 2025 at https://www.franklintempleton.com/regulatory-fund-documents or upon request at

(800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.

---

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

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

K2 Alternative Strategies Fund PAGE 3 830-ATSR-0725

------

---

| | |
|:---|:---|
| **K2 Alternative Strategies Fund**  | ![image](img448_202405131411777.jpg) |
| Advisor Class [FABZX] | ![image](img448_202405131411777.jpg) |
| Annual Shareholder Report \| May 31, 2025  | ![image](img448_202405131411777.jpg) |
| ![image](img450_202407221332340.jpg) | ![image](img450_202407221332340.jpg) |

---

This annual shareholder report contains important information about K2 Alternative Strategies Fund for the period June 1, 2024, to May 31, 2025.

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

***This report describes changes to the Fund that occurred during the reporting period.***

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

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Advisor Class | $221 | 2.15% |

---

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

**HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?**

For the twelve months ended May 31, 2025, Advisor Class shares of K2 Alternative Strategies Fund returned 6.01%. The Fund compares its performance to the HFRX Global Hedge Fund Index and the ICE BofA U.S. 3-Month Treasury Bill Index, which returned 3.93% and 4.76%, respectively, for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | At the asset class level, long positioning in equities drove gains, led by the industrials and utilities sectors. Long fixed income positioning substantially bolstered performance. Key contributors included the consumer discretionary sector and emerging market sovereign bonds. |
| ↑ | Relative Value and Long Short Equity were the largest strategy contributors. Long fixed income positioning drove gains for relative value. Within Long Short Equity, long equity positioning in the industrials sector led contribution. |
| ↑ | Long Short Equity subadvisor ActusRay was the largest contributor, driven by long equity positioning, especially in industrials. Global Macro subadvisor CFM was also as a key contributor on the strength of long positioning in developed market equity indexes and short commodities positioning. |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Among asset classes, currency positioning weighed the most on returns, owing in large part to hedges against the Swiss franc and Mexican peso longs. Commodity positioning (short overall) and interest rate positioning (long) also detracted, though more modestly. |
| ↓ | All four primary strategies contributed to performance, but the Strategic Overlay, which was active across the period under review, was an overall detractor, due primarily to long positioning in Nasdaq 100 Index futures. |
| ↓ | Only two of the 11 subadvisors, Global Macro's Graham and Long Short Equity's Jennison, detracted. Commodity (short overall) and fixed income (long) positioning weighed on returns for Graham. Long equity positioning in the pharmaceuticals, biotechnology and life sciences industry drove losses for health care-focused Jennison. |

---

**Use of derivatives and the impact on performance:**

Derivatives make up a significant portion of the Fund's holdings across multiple asset classes and security types. During the period, derivatives were a key contributor to performance, as gains from equity total return swaps and equity index futures, outweighed losses from credit default swaps, foreign exchange forward contracts, fixed income and commodity futures.

K2 Alternative Strategies Fund PAGE 1 10-ATSR-0725

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

**VALUE OF A $** **10,000 INVESTMENT –** **Advisor Class** 5/31/2015 — 5/31/2025

![image](ts4180img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended May 31, 2025

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Advisor Class**  | 6.01 | 4.00 | 2.79 |
| **MSCI All Country World Index-NR**  | 13.65 | 13.37 | 9.25 |
| **HFRX Global Hedge Fund Index**  | 3.93 | 3.66 | 1.87 |
| **ICE BofA U.S. 3-Month Treasury Bill Index**  | 4.76 | 2.70 | 1.94 |

---

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Effective March 1, 2024, the Fund adopted its current investment strategy.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

**KEY FUND STATISTICS** (as of May 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $521108157 |
| **Total Number of Portfolio Holdings**<sup>\*</sup>  | 886 |
| **Total Management Fee Paid** | $8107491 |
| **Portfolio Turnover Rate** | 266.59% |

---

\* Does not include derivatives, except purchased options, if any.

**WHAT DID THE FUND INVEST IN?** (as of May 31, 2025)

---

| | | |
|:---|:---|:---|
| **Strategy Allocation (% of Total Net Assets)** | **Long Positions** | **Short Positions** |
|  Long Short Equity  | 47.0 | -31.6 |
|  Relative Value  | 52.8 | -33.1 |
|  Event Driven  | 7.0 | -4.4 |
|  Global Macro  | 109.3 | -182.2 |
|  Strategic Overlay  | 2.0 | 0.0 |
|  **Total**  | 218.1 | -251.3 |

---

Figures include the effect of gross notional exposure of derivatives.

K2 Alternative Strategies Fund PAGE 2 10-ATSR-0725

------

**HOW HAS THE FUND CHANGED?**

Effective June 3, 2024, Lillian C. Knight and Art Vinokur were added as portfolio managers of the Fund. Effective September 30, 2024, Brooks Ritchey and Anthony Zanolla stepped down as portfolio managers of the Fund.

This is a summary of certain changes and certain planned changes to the Fund since June 1, 2024. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by October 1, 2025 at https://www.franklintempleton.com/regulatory-fund-documents or upon request at

(800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.

---

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

---

**HOUSEHOLDING**

You will receive the Fund's shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

K2 Alternative Strategies Fund PAGE 3 10-ATSR-0725

------

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

ITEM 2. CODE OF ETHICS.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) N/A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) N/A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Pursuant to Item 19(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.

The Board of Trustees of the Registrant has determined that Ann Torre Bates, David W. Niemiec and Valerie M. Williams, possess the technical attributes identified in Item 3 to Form N-CSR to qualify as "audit committee financial experts," and has designated Ann Torre Bates, David W. Niemiec and Valerie M. Williams as the Audit Committee's financial experts. Ann Torre Bates, David W. Niemiec and Valerie M. Williams are "independent" Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Audit Fees</u>. The aggregate fees billed in the last two fiscal years ending May 31, 2024 and May 31, 2025 (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $174,873 in May 31, 2024 and $179,363 in May 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Audit-Related Fees</u>. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant's financial statements were $0 in May 31, 2024 and $0 in May 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Tax Fees</u>. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $0 in May 31, 2024 and $0 in May 31, 2025.

There were no fees billed for tax services by the Auditors to the Registrant's investment manager and any entity controlling, controlled by, or under common control with the investment manager that provides ongoing services to the Registrant ("Service Affiliates") during the Reporting Periods that required pre-approval by the Audit Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>All Other Fees</u>. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant, other than the services reported in paragraphs (a) through (c) of this item, were $0 in May 31, 2024 and $0 in May 31, 2025.

The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor to the Service Affiliates, other than the services reported in paragraphs (a) through (c) of this item, were $0 in May 31, 2024 and $0 in May 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Audit Committee's pre-approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Registrant's Audit Committee is directly responsible for approving the services to be provided by the Auditors, including:

&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;(i) pre-approval of all audit and audit related services;

&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;(ii) pre-approval of all non-audit related services to be provided to the Registrant by the Auditors;

&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;(iii) pre-approval of all non-audit related services to be provided by the Auditors to the Registrant and the Service Affiliates where the non-audit services relate directly to the operations or financial reporting of the Registrant; and

&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;(iv) establishment by the Audit Committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the Auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of Audit Committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) None of the services described in paragraphs (b) through (d) of this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Non-audit fees billed by the Auditor for services rendered to the Registrant and the Service Affiliates during the reporting period were $0 in May 31, 2024 and $0 in May 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Yes. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor's independence. All services provided by the Auditor to the Registrant or to the Service Affiliates, which were required to be pre-approved, were pre-approved as required.

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

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

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable*.*

ITEM 6. SCHEDULE OF INVESTMENTS.

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

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

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

![](ftlogopos0119.jpg)

**K2 Alternative Strategies Fund** 

**Franklin Alternative Strategies Funds** 

**Financial Statements and Other Important Information**

---

| | |
|:---|:---|
| **Annual**  | \| May 31, 2025  |

---

------

[This page intentionally left blank.]

------

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

**Table of Contents**

---

| | |
|:---|:---|
| [Consolidated Financial Highlights and Consolidated Schedule of Investments](#tfihi) | **[3](#tfihi)** |
| [Consolidated Financial Statements](#tsal) | **[75](#tsal)** |
| [Notes to Consolidated Financial Statements](#tnotes) | **[79](#tnotes)** |
| [Report of Independent Registered Public Accounting Firm](#treport) | **[95](#treport)** |
| [Tax Information](#ttax) | **[96](#ttax)** |
| [Changes In and Disagreements with Accountants](#tcad) | **[97](#tcad)** |
| [Results of Meeting(s) of Shareholders](#trom) | **[97](#trom)** |
| [Remuneration Paid to Directors, Officers and Others](#trpd) | **[97](#trpd)** |
| [Board Approval of Management and Subadvisory Agreements](#tbam) | **[97](#tbam)** |

---

<br> 2 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

**Consolidated Financial Highlights** 

**K2 Alternative Strategies Fund**

---

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

---

<sup>a</sup>The amount shown for a share outstanding throughout the period may not correlate with the Consolidated Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

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

<sup>c</sup>Total return does not reflect sales commissions or contingent deferred sales charges, if applicable.

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

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

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

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

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

**K2 Alternative Strategies Fund (continued)**

---

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

---

<sup>a</sup>The amount shown for a share outstanding throughout the period may not correlate with the Consolidated Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

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

<sup>c</sup>Total return does not reflect sales commissions or contingent deferred sales charges, if applicable.

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

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

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

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

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

**K2 Alternative Strategies Fund (continued)**

---

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

---

<sup>a</sup>The amount shown for a share outstanding throughout the period may not correlate with the Consolidated Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

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

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

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

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

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

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

**K2 Alternative Strategies Fund (continued)** 

---

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

---

<sup>a</sup>The amount shown for a share outstanding throughout the period may not correlate with the Consolidated Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

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

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

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

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

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

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

**K2 Alternative Strategies Fund (continued)** 

---

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

---

<sup>a</sup>The amount shown for a share outstanding throughout the period may not correlate with the Consolidated Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

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

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

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

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

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

**Consolidated Schedule of Investments, May 31, 2025**

**K2 Alternative Strategies Fund** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Shares/** <br>**Warrants/** <br>**Rights** | **Value**  |
|  | **Common Stocks and Other Equity Interests 19.6%** | **Common Stocks and Other Equity Interests 19.6%** | **Common Stocks and Other Equity Interests 19.6%** | **Common Stocks and Other Equity Interests 19.6%** |
|  | **Aerospace & Defense 0.5%**<br>|  |  |  |
| <sup>a</sup> | The Boeing Co. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9267 | &nbsp;&nbsp;&nbsp;&nbsp; $1921234  |
| <sup>a</sup> | Satellogic Inc., A, 1/25/27, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2058 | &nbsp;&nbsp;&nbsp;&nbsp; 1050  |
| <sup>a</sup> | Triumph Group Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 30238 | &nbsp;&nbsp;&nbsp;&nbsp; 779838  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 2702122  |
|  | **Automobile Components 0.0%<sup>†</sup>**<br>|  |  |  |
|  | Dowlais Group PLC | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 199100 | &nbsp;&nbsp;&nbsp;&nbsp; 178366  |
|  | **Automobiles 0.2%**<br>|  |  |  |
|  | Bayerische Motoren Werke AG | Germany | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10561 | &nbsp;&nbsp;&nbsp;&nbsp; 936984  |
|  | **Biotechnology 3.4%**<br>|  |  |  |
| <sup>a,b</sup> | Alnylam Pharmaceuticals Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7107 | &nbsp;&nbsp;&nbsp;&nbsp; 2164508  |
| <sup>a,c</sup> | Apellis Pharmaceuticals Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35487 | &nbsp;&nbsp;&nbsp;&nbsp; 600795  |
| <sup>a</sup> | Apogee Therapeutics Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16305 | &nbsp;&nbsp;&nbsp;&nbsp; 597415  |
| <sup>a,b</sup> | Arcutis Biotherapeutics Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 120593 | &nbsp;&nbsp;&nbsp;&nbsp; 1572533  |
| <sup>a,b</sup> | Argenx SE, ADR | Netherlands | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3225 | &nbsp;&nbsp;&nbsp;&nbsp; 1848763  |
| <sup>a</sup> | Blueprint Medicines Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11249 | &nbsp;&nbsp;&nbsp;&nbsp; 1140086  |
| <sup>a</sup> | Crinetics Pharmaceuticals Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29722 | &nbsp;&nbsp;&nbsp;&nbsp; 906818  |
| <sup>a</sup> | Insmed Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21158 | &nbsp;&nbsp;&nbsp;&nbsp; 1475347  |
| <sup>a,b,c</sup> | Kymera Therapeutics Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14178 | &nbsp;&nbsp;&nbsp;&nbsp; 420236  |
| <sup>a,c</sup> | Metsera Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5646 | &nbsp;&nbsp;&nbsp;&nbsp; 150861  |
| <sup>a,b</sup> | Neurocrine Biosciences Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16720 | &nbsp;&nbsp;&nbsp;&nbsp; 2056894  |
| <sup>a,c</sup> | NewAmsterdam Pharma Co. NV | Netherlands | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40474 | &nbsp;&nbsp;&nbsp;&nbsp; 732984  |
| <sup>a,d</sup> | SpringWorks Therapeutics Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12570 | &nbsp;&nbsp;&nbsp;&nbsp; 587145  |
| <sup>a</sup> | Travere Therapeutics Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36115 | &nbsp;&nbsp;&nbsp;&nbsp; 542447  |
| <sup>a,b</sup> | Vaxcyte Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15228 | &nbsp;&nbsp;&nbsp;&nbsp; 494758  |
| <sup>a</sup> | Vera Therapeutics Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16363 | &nbsp;&nbsp;&nbsp;&nbsp; 310079  |
| <sup>a,b</sup> | Vertex Pharmaceuticals Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3697 | &nbsp;&nbsp;&nbsp;&nbsp; 1634259  |
| <sup>a</sup> | Xenon Pharmaceuticals Inc. | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25083 | &nbsp;&nbsp;&nbsp;&nbsp; 723645  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 17959573  |
|  | **Building Products 0.4%**<br>|  |  |  |
| <sup>a</sup> | Johnson Controls International PLC | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21461 | &nbsp;&nbsp;&nbsp;&nbsp; 2175502  |
|  | **Capital Markets 0.3%**<br>|  |  |  |
|  | Ci Financial Corp. | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 67780 | &nbsp;&nbsp;&nbsp;&nbsp; 1552319  |
|  | **Chemicals 0.8%**<br>|  |  |  |
|  | Air Products & Chemicals Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7647 | &nbsp;&nbsp;&nbsp;&nbsp; 2132825  |
|  | Celanese Corp., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4818 | &nbsp;&nbsp;&nbsp;&nbsp; 254535  |
| <sup>a</sup> | Covestro AG | Germany | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23863 | &nbsp;&nbsp;&nbsp;&nbsp; 1639263  |
| <sup>a</sup> | Danimer Scientific Inc., 7/15/25, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24481 | &nbsp;&nbsp;&nbsp;&nbsp; 12  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 4026635  |
|  | **Communications Equipment 0.2%**<br>|  |  |  |
| <sup>a</sup> | Commscope Holding Co. Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68780 | &nbsp;&nbsp;&nbsp;&nbsp; 415431  |
| <sup>a,e</sup> | Riverbed Technology, Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1499 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| <sup>a</sup> | Spirent Communications PLC | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 205212 | &nbsp;&nbsp;&nbsp;&nbsp; 521465  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 936896  |
|  | **Construction & Engineering 0.7%**<br>|  |  |  |
| <sup>a</sup> | Mastec Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12524 | &nbsp;&nbsp;&nbsp;&nbsp; 1952867  |
|  | Quanta Services Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4903 | &nbsp;&nbsp;&nbsp;&nbsp; 1679572  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 3632439  |

---

<br> 8 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**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)**  |
|  | **Consumer Staples Distribution & Retail 0.1%**<br>|  |  |  |
|  | Albertsons Cos. Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31813 | &nbsp;&nbsp;&nbsp;&nbsp; $707203  |
|  | **Diversified Financial Services 0.6%**<br>|  |  |  |
| <sup>a</sup> | Aldel Financial II Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10204 | &nbsp;&nbsp;&nbsp;&nbsp; 106326  |
| <sup>a</sup> | Artius II Acquisition Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13932 | &nbsp;&nbsp;&nbsp;&nbsp; 140295  |
|  | BBGI Global Infrastructure SA | Luxembourg | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 581679 | &nbsp;&nbsp;&nbsp;&nbsp; 1126998  |
| <sup>a</sup> | Bold Eagle Acquisition Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8931 | &nbsp;&nbsp;&nbsp;&nbsp; 92615  |
| <sup>a</sup> | Cantor Equity Partners I Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2402 | &nbsp;&nbsp;&nbsp;&nbsp; 29184  |
| <sup>a</sup> | Churchill Capital Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1788 | &nbsp;&nbsp;&nbsp;&nbsp; 19829  |
| <sup>a</sup> | DSG TopCo Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27996 | &nbsp;&nbsp;&nbsp;&nbsp; 537523  |
| <sup>a</sup> | GP-Act III Acquisition Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9171 | &nbsp;&nbsp;&nbsp;&nbsp; 96020  |
| <sup>a</sup> | Haymaker Acquisition Corp. 4 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3381 | &nbsp;&nbsp;&nbsp;&nbsp; 37326  |
| <sup>a</sup> | Hennessy Capital Investment Corp. VII | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13932 | &nbsp;&nbsp;&nbsp;&nbsp; 139459  |
| <sup>a</sup> | Legato Merger Corp. III | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6333 | &nbsp;&nbsp;&nbsp;&nbsp; 67257  |
| <sup>a</sup> | Live Oak Acquisition Corp. V | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13917 | &nbsp;&nbsp;&nbsp;&nbsp; 144041  |
| <sup>a</sup> | M3-Brigade Acquisition Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12900 | &nbsp;&nbsp;&nbsp;&nbsp; 152220  |
| <sup>a</sup> | Nabors Energy Transition Corp. II, 9/05/28, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2168 | &nbsp;&nbsp;&nbsp;&nbsp; 1102  |
| <sup>a</sup> | Newhold Investment Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13932 | &nbsp;&nbsp;&nbsp;&nbsp; 139738  |
| <sup>a</sup> | Oaktree Acquisition Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6850 | &nbsp;&nbsp;&nbsp;&nbsp; 71651  |
| <sup>a</sup> | Perceptive Capital Solutions Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 645 | &nbsp;&nbsp;&nbsp;&nbsp; 6818  |
| <sup>a,e</sup> | Pershing Square Tontine Holdings Ltd., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42829 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| <sup>e</sup> | Pershing Square Tontine Holdings Ltd., A, 12/31/33, Contingent Value, rts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10707 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| <sup>a</sup> | Roman DBDR Acquisition Corp. II | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13932 | &nbsp;&nbsp;&nbsp;&nbsp; 143082  |
| <sup>a</sup> | Silverbox Corp. IV | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12900 | &nbsp;&nbsp;&nbsp;&nbsp; 134676  |
| <sup>a,b</sup> | Southport Acquisition Corp., 5/24/28, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4946 | &nbsp;&nbsp;&nbsp;&nbsp; 989  |
| <sup>a,e</sup> | Spree Acquisition Corp. 1 Ltd., 12/22/28, wts. | Israel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3069 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| <sup>a</sup> | Target Global Acquisition I Corp., A, 12/31/27, wts. | Israel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3516 | &nbsp;&nbsp;&nbsp;&nbsp; 457  |
| <sup>a</sup> | Teract SA, 11/16/25, wts. | France | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3920 | &nbsp;&nbsp;&nbsp;&nbsp; 2  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 3187608  |
|  | **Diversified Telecommunication Services 0.3%**<br>|  |  |  |
| <sup>a,b</sup> | Frontier Communications Parent Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49904 | &nbsp;&nbsp;&nbsp;&nbsp; 1808022  |
|  | **Electric Utilities 2.4%**<br>|  |  |  |
|  | Constellation Energy Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11492 | &nbsp;&nbsp;&nbsp;&nbsp; 3518276  |
| <sup>b</sup> | Edison International | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13042 | &nbsp;&nbsp;&nbsp;&nbsp; 725787  |
| <sup>b</sup> | Entergy Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8613 | &nbsp;&nbsp;&nbsp;&nbsp; 717291  |
| <sup>b</sup> | Exelon Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26933 | &nbsp;&nbsp;&nbsp;&nbsp; 1180204  |
| <sup>b</sup> | NextEra Energy Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26912 | &nbsp;&nbsp;&nbsp;&nbsp; 1901064  |
|  | NRG Energy Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3228 | &nbsp;&nbsp;&nbsp;&nbsp; 503245  |
| <sup>b</sup> | PG&E Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40805 | &nbsp;&nbsp;&nbsp;&nbsp; 688788  |
| <sup>b</sup> | PPL Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36764 | &nbsp;&nbsp;&nbsp;&nbsp; 1277549  |
| <sup>b</sup> | Xcel Energy Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29486 | &nbsp;&nbsp;&nbsp;&nbsp; 2066969  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 12579173  |
|  | **Electrical Equipment 0.8%**<br>|  |  |  |
| <sup>a,b</sup> | Array Technologies Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 52274 | &nbsp;&nbsp;&nbsp;&nbsp; 345008  |
| <sup>a,c</sup> | Bloom Energy Corp., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 118 | &nbsp;&nbsp;&nbsp;&nbsp; 2180  |
| <sup>a,b</sup> | Enovix Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 114120 | &nbsp;&nbsp;&nbsp;&nbsp; 869594  |
| <sup>b</sup> | GE Vernova Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3842 | &nbsp;&nbsp;&nbsp;&nbsp; 1817189  |
|  | Mitsubishi Electric Corp. | Japan | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 65287 | &nbsp;&nbsp;&nbsp;&nbsp; 1302933  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 4336904  |
|  | **Energy Equipment & Services 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a</sup> | Nabors Industries Ltd. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7501 | &nbsp;&nbsp;&nbsp;&nbsp; $193601  |

---

<br> franklintempleton.com Annual Report 9 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**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)**  |
|  | **Entertainment 0.2%**<br>|  |  |  |
| <sup>b</sup> | TKO Group Holdings Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2609 | &nbsp;&nbsp;&nbsp;&nbsp; 411726  |
| <sup>a,b</sup> | Warner Bros Discovery Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42483 | &nbsp;&nbsp;&nbsp;&nbsp; 423556  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 835282  |
|  | **Food Products 0.4%**<br>|  |  |  |
| <sup>b</sup> | Kellanova | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23312 | &nbsp;&nbsp;&nbsp;&nbsp; 1926271  |
|  | **Health Care Equipment & Supplies 1.5%**<br>|  |  |  |
|  | Abbott Laboratories | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2926 | &nbsp;&nbsp;&nbsp;&nbsp; 390855  |
| <sup>a</sup> | DexCom Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13230 | &nbsp;&nbsp;&nbsp;&nbsp; 1135134  |
| <sup>a,b</sup> | Edwards Lifesciences Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 30147 | &nbsp;&nbsp;&nbsp;&nbsp; 2358098  |
|  | GE Healthcare Technologies Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24045 | &nbsp;&nbsp;&nbsp;&nbsp; 1696134  |
| <sup>a,c</sup> | Semler Scientific, Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp; 280  |
|  | Straumann Holding AG | Switzerland | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7132 | &nbsp;&nbsp;&nbsp;&nbsp; 917377  |
| <sup>a</sup> | Tandem Diabetes Care Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 59485 | &nbsp;&nbsp;&nbsp;&nbsp; 1178993  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 7676871 |
|  | **Health Care Providers & Services 0.2%**<br>|  |  |  |
| <sup>a</sup> | Community Health Systems Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 82779 | &nbsp;&nbsp;&nbsp;&nbsp; 321182  |
| <sup>b</sup> | CVS Health Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8676 | &nbsp;&nbsp;&nbsp;&nbsp; 555611  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 876793  |
|  | **Health Care REITs 0.1%**<br>|  |  |  |
|  | Assura PLC | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 424166 | &nbsp;&nbsp;&nbsp;&nbsp; 282333  |
|  | **Hotels, Restaurants & Leisure 0.4%**<br>|  |  |  |
| <sup>a</sup> | Everi Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 63281 | &nbsp;&nbsp;&nbsp;&nbsp; 892895  |
| <sup>a,e</sup> | HomeToGo SE, 12/31/25, wts. | Luxembourg | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 716 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| <sup>a</sup> | Playa Hotels & Resorts | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 67922 | &nbsp;&nbsp;&nbsp;&nbsp; 914230  |
| <sup>a</sup> | Playags Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27860 | &nbsp;&nbsp;&nbsp;&nbsp; 340449  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 2147574  |
|  | **Household Durables 0.1%**<br>|  |  |  |
| <sup>d</sup> | Fujitsu General Ltd. | Japan | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14131 | &nbsp;&nbsp;&nbsp;&nbsp; 273521  |
| <sup>a,e</sup> | Mattress Firm Holdings Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1 | &nbsp;&nbsp;&nbsp;&nbsp; 174236  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 447757  |
|  | **Independent Power & Renewable Electricity Producers 0.6%**<br>|  |  |  |
|  | Innergex Renewable Energy Inc. | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 170694 | &nbsp;&nbsp;&nbsp;&nbsp; 1699042  |
|  | RWE AG | Germany | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15030 | &nbsp;&nbsp;&nbsp;&nbsp; 565912  |
| <sup>b</sup> | XPLR Infrastructure LP | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 84145 | &nbsp;&nbsp;&nbsp;&nbsp; 742159  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 3007113  |
|  | **Industrial Conglomerates 0.8%**<br>|  |  |  |
|  | 3M Co. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16373 | &nbsp;&nbsp;&nbsp;&nbsp; 2428934  |
|  | Siemens AG | Germany | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7893 | &nbsp;&nbsp;&nbsp;&nbsp; 1898452  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 4327386  |
|  | **Insurance 0.2%**<br>|  |  |  |
|  | Direct Line Insurance Group PLC | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 267920 | &nbsp;&nbsp;&nbsp;&nbsp; 1077493  |
|  | **Interactive Media & Services 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>f</sup> | Tencent Holdings Ltd. | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3924 | &nbsp;&nbsp;&nbsp;&nbsp; 247379  |
|  | **Internet & Direct Marketing Retail 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a,g</sup> | Deliveroo PLC, A, 144A | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71245 | &nbsp;&nbsp;&nbsp;&nbsp; 168666  |
|  | **IT Services 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a,c</sup> | Applied Digital Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2610 | &nbsp;&nbsp;&nbsp;&nbsp; $17827  |
| <sup>a</sup> | Bigbear.Ai Holdings, Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1612 | &nbsp;&nbsp;&nbsp;&nbsp; 6706  |

---

<br> 10 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**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)**  |
|  | **IT Services (continued)** <br>|  |  |  |
| <sup>a</sup> | Brand Engagement Network Inc., A, 3/14/29, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 241 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6  |
|  | Datagroup SE | Germany | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2269 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 143663  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 168202  |
|  | **Life Sciences Tools & Services 0.9%**<br>|  |  |  |
|  | Biotage AB | Sweden | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9328 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 138051  |
| <sup>b</sup> | Danaher Corp., W | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1876 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 356253  |
|  | Lonza Group AG | Switzerland | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1942 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1347564  |
|  | Revvity Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13964 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1262625  |
| <sup>a</sup> | Stevanato Group SpA | Italy | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 54797 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1217041  |
|  | Thermo Fisher Scientific Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1383 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 557100  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4878634  |
|  | **Machinery 0.2%**<br>|  |  |  |
|  | Fanuc Corp. | Japan | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17007 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 453904  |
|  | Ihi Corp. | Japan | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6314 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 607723  |
| <sup>a,e</sup> | Maxeon Solar Technologies, 1/15/28, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32750 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14473  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1076100  |
|  | **Media 0.2%**<br>|  |  |  |
| <sup>a,b</sup> | Altice USA Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 122191 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 282261  |
| <sup>a,b</sup> | Clear Channel Outdoor Holdings Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 201413 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 215512  |
|  | Omnicom Group Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6902 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 506883  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1004656  |
|  | **Metals & Mining 0.4%**<br>|  |  |  |
| <sup>a,e</sup> | Samarco Mineracao SA Escrow | Brazil | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 384000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12929  |
|  | U.S. Steel Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34385 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1850601  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1863530  |
|  | **Oil, Gas & Consumable Fuels 0.1%**<br>|  |  |  |
| <sup>a,e,h</sup> | Gazprom PJSC | Russia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 615160 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| <sup>d</sup> | Golar LNG Ltd. | Cameroon | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3902 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 160606  |
|  | Hess Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1921 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 253937  |
| <sup>a,d</sup> | Sable Offshore Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5505 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 158434  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 572977  |
|  | **Passenger Airlines 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a,c</sup> | Jetblue Airways Corp. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 139 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 702  |
|  | **Pharmaceuticals 1.9%**<br>|  |  |  |
|  | AstraZeneca PLC, ADR | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21061 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1533873  |
| <sup>b</sup> | Eli Lilly & Co. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2379 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1754917  |
| <sup>b</sup> | Novo Nordisk AS, ADR | Denmark | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20035 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1432502  |
| <sup>a,b</sup> | Tarsus Pharmaceuticals Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28383 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1219050  |
|  | UCB SA | Belgium | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9887 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1798640  |
| <sup>a</sup> | Verona Pharma PLC, ADR | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23787 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1931504  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9670486  |
|  | **Professional Services 0.2%**<br>|  |  |  |
|  | Dun & Bradstreet Holdings Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 94216 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 848886  |
| <sup>a,b</sup> | Falcon's Beyond Global Inc., A, 3/16/26, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 180 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 170  |
|  | Ul Solutions Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2157 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 154226  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1003282  |

---

<br> franklintempleton.com Annual Report 11 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**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)**  |
|  | **Real Estate Management & Development 0.1%**<br>|  |  |  |
| <sup>a,b,e</sup> | Conx Corp., A, 10/30/27, wts. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14679 | &nbsp;&nbsp;&nbsp; $—  |
| <sup>g</sup> | Esr Group Ltd., 144A | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 362843 | &nbsp;&nbsp;&nbsp; 593239  |
|  |  |  |  | &nbsp;&nbsp;&nbsp; 593239  |
|  | **Residential REITs 0.1%**<br>|  |  |  |
|  | Interrent Real Estate Investment Trust | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28638 | &nbsp;&nbsp;&nbsp; 284846  |
|  | **Semiconductors & Semiconductor Equipment 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a</sup> | SolarEdge Technologies Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13114 | &nbsp;&nbsp;&nbsp; 234216  |
|  | **Software 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a</sup> | Bitdeer Technologies Group | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8735 | &nbsp;&nbsp;&nbsp; 112332  |
| <sup>a</sup> | Informatica Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5678 | &nbsp;&nbsp;&nbsp; 136329  |
|  |  |  |  | &nbsp;&nbsp;&nbsp; 248661  |
|  | **Specialized REITs 0.0%<sup>†</sup>**<br>|  |  |  |
|  | Uniti Group Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31119 | &nbsp;&nbsp;&nbsp; 133812  |
|  | **Specialty Retail 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>a</sup> | Douglas AG | Germany | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5297 | &nbsp;&nbsp;&nbsp; 72700  |
| <sup>a</sup> | Petco Health & Wellness Co. Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 30138 | &nbsp;&nbsp;&nbsp; 110607  |
| <sup>a</sup> | The Realreal Inc. | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2894 | &nbsp;&nbsp;&nbsp; 16351  |
|  |  |  |  | &nbsp;&nbsp;&nbsp; 199658  |
|  | **Textiles, Apparel & Luxury Goods 0.1%**<br>|  |  |  |
| <sup>a</sup> | Skechers USA Inc., A | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6786 | &nbsp;&nbsp;&nbsp; 421003  |
|  | **Wireless Telecommunication Services 0.0%<sup>†</sup>**<br>|  |  |  |
|  | Freenet AG | Germany | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1731 | &nbsp;&nbsp;&nbsp; 57177  |
|  | &nbsp;&nbsp;&nbsp; **Total Common Stocks and Other Equity Interests** <br>**(Cost $94,802,714)** |  |  | &nbsp;&nbsp;&nbsp; 102345446 |
|  | **Preferred Stocks 0.1%** | **Preferred Stocks 0.1%** | **Preferred Stocks 0.1%** | **Preferred Stocks 0.1%** |
|  | **Diversified Financial Services 0.1%**<br>|  |  |  |
| <sup>b</sup> | FHLMC, 8.375%, pfd., Z | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21938 | &nbsp;&nbsp;&nbsp; 300989  |
| <sup>b</sup> | FNMA, 8.25%, pfd., S | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5367 | &nbsp;&nbsp;&nbsp; 76480  |
|  |  |  |  | &nbsp;&nbsp;&nbsp; 377469  |
|  | &nbsp;&nbsp;&nbsp; **Total Preferred Stocks** <br>**(Cost $184,684)** |  |  | &nbsp;&nbsp;&nbsp; 377469 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **Principal Amount<sup>\*</sup>** |  |
|  | **Convertible Bonds 16.6%** | **Convertible Bonds 16.6%** | **Convertible Bonds 16.6%** | **Convertible Bonds 16.6%** |
|  | **Aerospace & Defense 0.2%**<br>|  |  |  |
| <sup>g</sup> | Astronics Corp., senior note, 144A, 5.50%, 3/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 210000  | &nbsp;&nbsp;&nbsp;&nbsp; 343122  |
|  | Parsons Corp., senior note, 0.25%, 8/15/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 332000 | &nbsp;&nbsp;&nbsp;&nbsp; 485674  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 828796  |
|  | **Airlines 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>c,g</sup> | Jetblue Airways Corp., senior note, 144A, 2.50%, 9/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 33000 | &nbsp;&nbsp;&nbsp;&nbsp; 34314  |
|  | **Automobile Components 0.0%<sup>†</sup>**<br>|  |  |  |
|  | LCI Industries, senior note, 1.125%, 5/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 99000 | &nbsp;&nbsp;&nbsp;&nbsp; 97193  |
|  | **Automobiles 0.2%**<br>|  |  |  |
|  | Ford Motor Co., senior note, zero cpn., 3/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 994000 | &nbsp;&nbsp;&nbsp;&nbsp; 979090 |

---

<br> 12 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
|  | **Convertible Bonds (continued)**  | **Convertible Bonds (continued)**  | **Convertible Bonds (continued)**  | **Convertible Bonds (continued)**  | **Convertible Bonds (continued)**  |
|  | **Biotechnology 0.9%**<br>|  |  |  |  |
|  | Alnylam Pharmaceuticals Inc., senior note, 1.00%, 9/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 184000 |  | &nbsp;&nbsp;&nbsp;&nbsp; $227984  |
| <sup>c</sup> | BioMarin Pharmaceutical Inc., senior sub. note, 1.25%, 5/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 295000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 277958 |
|  | Bridgebio Pharma Inc., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 2.50%, 3/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 354000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 405941  |
|  | &nbsp;&nbsp;&nbsp; 2.25%, 2/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 70000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 63091  |
|  | &nbsp;&nbsp;&nbsp; <sup>c,g</sup>144A, 1.75%, 3/01/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 72000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 74429  |
|  | Cytokinetics Inc., senior note, 3.50%, 7/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 105000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 110238  |
| <sup>g</sup> | Dynavax Technologies Corp., senior note, 144A, 2.00%, 3/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 190000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 171271  |
|  | Exact Sciences Corp., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; <sup>b</sup>0.375%, 3/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 749000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 717542  |
|  | &nbsp;&nbsp;&nbsp; 0.375%, 3/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 518000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 476301  |
|  | Guardant Health Inc., senior note, 1.25%, 2/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 62000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 63984  |
|  | Halozyme Therapeutics Inc., senior note, 1.00%, 8/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 41691  |
| <sup>c</sup> | Immunocore Holdings PLC, senior note, 2.50%, 2/01/30 | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 110000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 96943  |
|  | Ionis Pharmaceuticals Inc., senior note, 1.75%, 6/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 16060  |
| <sup>c</sup> | Mirum Pharmaceuticals Inc., senior note, 4.00%, 5/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 67696  |
| <sup>g</sup> | Pharming Group NV, senior note, Reg S, 4.50%, 4/25/29 | Netherlands | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 245739  |
|  | PTC Therapeutics Inc., senior note, 1.50%, 9/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 586000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 674633  |
|  | Transmedics Group Inc., senior note, 1.50%, 6/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 317000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 491751  |
|  | Travere Therapeutics Inc., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 2.50%, 9/15/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 210000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 207123  |
|  | &nbsp;&nbsp;&nbsp; <sup>b</sup>2.25%, 3/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 7590  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 4437965  |
|  | **Broadline Retail 0.4%**<br>|  |  |  |  |
| <sup>f,g</sup> | Alibaba Group Holding Ltd., senior note, 144A, 0.50%, 6/01/31 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1153000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1464598  |
|  | Etsy Inc., senior note, 0.125%, 10/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 133000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 132302  |
| <sup>f,g</sup> | JD.Com Inc., senior note, 144A, 0.25%, 6/01/29 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 349000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 366042  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1962942  |
|  | **Capital Markets 0.3%**<br>|  |  |  |  |
|  | Coinbase Global Inc., senior note, 0.50%, 6/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 927000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 958055  |
| <sup>g</sup> | Wisdomtree Inc., senior note, 144A, 3.25%, 8/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 591000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 615822  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1573877  |
|  | **Chemicals 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>b</sup> | Amyris Inc., senior note, zero cpn., 11/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1108000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 11080  |
|  | **Commercial Services & Supplies 0.0%<sup>†</sup>**<br>|  |  |  |  |
|  | Block Inc., senior note, 0.25%, 11/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 109000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 97255  |
|  | **Communications Equipment 0.5%**<br>|  |  |  |  |
| <sup>b</sup> | Comcast Holdings Corp.,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 2.00%, 10/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 386500 |  | &nbsp;&nbsp;&nbsp;&nbsp; 240017  |
|  | &nbsp;&nbsp;&nbsp; sub. bond, 2.00%, 11/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 338600 |  | &nbsp;&nbsp;&nbsp;&nbsp; 237020  |
|  | InterDigital Inc., senior note, 3.50%, 6/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 183000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 517981  |
|  | Lumentum Holdings Inc., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; <sup>b</sup>0.50%, 12/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1031000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1106778  |
|  | &nbsp;&nbsp;&nbsp; <sup>c</sup>0.50%, 6/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 237000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 228113  |
|  | &nbsp;&nbsp;&nbsp; 1.50%, 12/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 169000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 216743  |
|  | Viavi Solutions Inc., senior note, 1.625%, 3/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 7048  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 2553700  |
|  | **Consumer Cyclical 0.1%**<br>|  |  |  |  |
| <sup>g</sup> | Flight Centre Travel Group Ltd., senior note, Reg S, 2.50%, 11/17/27 | Australia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200000 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 128276  |
| <sup>g</sup> | Groupon Inc., senior secured note, 144A, 6.25%, 3/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 154000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 196357  |
| <sup>f</sup> | H World Group Ltd., senior note, 3.00%, 5/01/26 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 167000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 181195  |

---

<br> franklintempleton.com Annual Report 13 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
|  | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** |
|  | **Consumer Cyclical (continued)** <br>|  |  |  |
|  | Wayfair Inc., senior note, 3.50%, 11/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 164000 | &nbsp;&nbsp;&nbsp;&nbsp; $195980  |
| <sup>c</sup> | Winnebago Industries Inc., senior note, 3.25%, 1/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68000 | &nbsp;&nbsp;&nbsp;&nbsp; 59874  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 761682  |
|  | **Consumer Finance 0.4%**<br>|  |  |  |
|  | Encore Capital Group Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 3.25%, 10/01/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 327000 | &nbsp;&nbsp;&nbsp;&nbsp; 353031  |
|  | &nbsp;&nbsp;&nbsp; <sup>b</sup>4.00%, 3/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 577000 | &nbsp;&nbsp;&nbsp;&nbsp; 539993  |
| <sup>g</sup> | EZCORP Inc., senior note, 144A, 3.75%, 12/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 144000 | &nbsp;&nbsp;&nbsp;&nbsp; 203040  |
| <sup>g</sup> | SoFi Technologies Inc., senior note, 144A,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 1.25%, 3/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 640000 | &nbsp;&nbsp;&nbsp;&nbsp; 1012916  |
|  | &nbsp;&nbsp;&nbsp; zero cpn., 10/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 144000 | &nbsp;&nbsp;&nbsp;&nbsp; 147174  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 2256154  |
|  | **Diversified Consumer Services 0.1%**<br>|  |  |  |
|  | Affirm Holdings Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; zero cpn., 11/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 462000 | &nbsp;&nbsp;&nbsp;&nbsp; 427953  |
|  | &nbsp;&nbsp;&nbsp; <sup>c,g</sup>144A, 0.75%, 12/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 176000 | &nbsp;&nbsp;&nbsp;&nbsp; 165452  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 593405  |
|  | **Diversified Financial Services 0.4%**<br>|  |  |  |
| <sup>c</sup> | Capital Southwest Corp., senior note, 5.125%, 11/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 39000 | &nbsp;&nbsp;&nbsp;&nbsp; 37136  |
| <sup>g</sup> | Cleanspark Inc., senior note, 144A, zero cpn., 6/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34000 | &nbsp;&nbsp;&nbsp;&nbsp; 29309  |
|  | Coinbase Global Inc., senior note, 0.25%, 4/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 210000 | &nbsp;&nbsp;&nbsp;&nbsp; 227850  |
| <sup>g</sup> | Hercules Capital Inc., senior note, 144A, 4.75%, 9/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49000 | &nbsp;&nbsp;&nbsp;&nbsp; 47162  |
| <sup>g</sup> | Mara Holdings Inc., senior note, 144A, zero cpn., 3/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 | &nbsp;&nbsp;&nbsp;&nbsp; 12005  |
| <sup>f,g</sup> | Qifu Technology Inc., senior note, 144A, 0.50%, 4/01/30 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 86000 | &nbsp;&nbsp;&nbsp;&nbsp; 82990  |
| <sup>g</sup> | Repay Holdings Corp., senior note, 144A,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 2.875%, 7/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 58000 | &nbsp;&nbsp;&nbsp;&nbsp; 48082  |
|  | &nbsp;&nbsp;&nbsp; zero cpn., 2/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 699000 | &nbsp;&nbsp;&nbsp;&nbsp; 672788  |
| <sup>g</sup> | Terawulf Inc., senior note, 144A, 2.75%, 2/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19000 | &nbsp;&nbsp;&nbsp;&nbsp; 13910  |
|  | Upstart Holdings Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 0.25%, 8/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 446000 | &nbsp;&nbsp;&nbsp;&nbsp; 415895  |
|  | &nbsp;&nbsp;&nbsp; <sup>c,g</sup>144A, 2.00%, 10/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 463000 | &nbsp;&nbsp;&nbsp;&nbsp; 603058  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>144A, 1.00%, 11/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 | &nbsp;&nbsp;&nbsp;&nbsp; 12075  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 2202260 |
|  | **Diversified Telecommunication Services 0.3%**<br>|  |  |  |
| <sup>g</sup> | A10 Networks Inc., senior note, 144A, 2.75%, 4/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 245000 | &nbsp;&nbsp;&nbsp;&nbsp; 249723  |
| <sup>g</sup> | Ast Spacemobile Inc., senior note, 144A, 4.25%, 3/01/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 84000 | &nbsp;&nbsp;&nbsp;&nbsp; 99590  |
| <sup>b,g</sup> | Match Group Financeco 2 Inc., senior note, 144A, 0.875%, 6/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 935000 | &nbsp;&nbsp;&nbsp;&nbsp; 898815  |
| <sup>c,g</sup> | Match Group Financeco 3 Inc., senior bond, 144A, 2.00%, 1/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 393000 | &nbsp;&nbsp;&nbsp;&nbsp; 346076  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1594204 |
|  | **Electric Utilities 0.3%**<br>|  |  |  |
|  | CMS Energy Corp., senior note, 3.375%, 5/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35000 | &nbsp;&nbsp;&nbsp;&nbsp; 37642 |
|  | Duke Energy Corp., senior note, 4.125%, 4/15/26  | United States  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 63000  | &nbsp;&nbsp;&nbsp;&nbsp; 66953  |
| <sup>b,i</sup> | Echostar Corp., senior secured note, PIK, 3.875%, 11/30/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 538553 | &nbsp;&nbsp;&nbsp;&nbsp; 518235  |
|  | Evergy Inc., senior note, 4.50%, 12/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 210000 | &nbsp;&nbsp;&nbsp;&nbsp; 241036  |
|  | Evolent Health Inc., senior note, 3.50%, 12/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 182000 | &nbsp;&nbsp;&nbsp;&nbsp; 143780  |
|  | Ormat Technologies Inc., senior note, 2.50%, 7/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 143000 | &nbsp;&nbsp;&nbsp;&nbsp; 150436  |
|  | PG&E Corp., senior secured note, 4.25%, 12/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 203000 | &nbsp;&nbsp;&nbsp;&nbsp; 211120  |
|  | The Southern Co., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 4.50%, 6/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 210000 | &nbsp;&nbsp;&nbsp;&nbsp; 229919  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>144A, 3.25%, 6/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34000 | &nbsp;&nbsp;&nbsp;&nbsp; 33983  |
| <sup>g</sup> | WEC Energy Group Inc., senior note, 144A, 4.375%, 6/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 216000 | &nbsp;&nbsp;&nbsp;&nbsp; 249750  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1882854 |

---

<br> 14 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
|  | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** |
|  | **Electrical Equipment 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>b</sup> | Bloom Energy Corp., senior note, 3.00%, 6/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 281000 | &nbsp;&nbsp;&nbsp;&nbsp; $356308  |
|  | **Electronic Equipment, Instruments & Components 0.3%**<br>|  |  |  |
|  | Advanced Energy Industries Inc., senior note, 2.50%, 9/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 70000 | &nbsp;&nbsp;&nbsp;&nbsp; 78848  |
|  | Applied Optoelectronics Inc., senior note, 2.75%, 1/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 164000 | &nbsp;&nbsp;&nbsp;&nbsp; 130329  |
|  | Faro Technologies Inc., senior note, 5.50%, 2/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 169000 | &nbsp;&nbsp;&nbsp;&nbsp; 202133  |
| <sup>g</sup> | Itron Inc., senior note, 144A, 1.375%, 7/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 194000 | &nbsp;&nbsp;&nbsp;&nbsp; 213560  |
| <sup>g</sup> | Mirion Technologies Inc., senior secured note, 144A, 0.25%, 6/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7000 | &nbsp;&nbsp;&nbsp;&nbsp; 7553  |
| <sup>g</sup> | OSI Systems Inc., senior note, 144A, 2.25%, 8/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 346000 | &nbsp;&nbsp;&nbsp;&nbsp; 462775  |
|  | PAR Technology Corp., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 2.875%, 4/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36000 | &nbsp;&nbsp;&nbsp;&nbsp; 56745  |
|  | &nbsp;&nbsp;&nbsp; 1.50%, 10/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 136000 | &nbsp;&nbsp;&nbsp;&nbsp; 152419  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1304362 |
|  | **Energy Equipment & Services 0.1%**<br>|  |  |  |
| <sup>g</sup> | Eos Energy Enterprises Inc., senior note, 144A, 6.75%, 6/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 131000 | &nbsp;&nbsp;&nbsp;&nbsp; 130968  |
|  | TETRA Tech Inc., senior note, 2.25%, 8/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 228000 | &nbsp;&nbsp;&nbsp;&nbsp; 254619  |
|  | Transocean Inc., senior note, 4.625%, 9/30/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 243000 | &nbsp;&nbsp;&nbsp;&nbsp; 249318  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 634905  |
|  | **Entertainment 0.6%**<br>|  |  |  |
|  | Cinemark Holdings Inc., senior note, 4.50%, 8/15/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 645000 | &nbsp;&nbsp;&nbsp;&nbsp; 1524619  |
| <sup>g</sup> | Live Nation Entertainment Inc., senior note, 144A, 2.875%, 1/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 | &nbsp;&nbsp;&nbsp;&nbsp; 14756  |
|  | Sea Ltd., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 2.375%, 12/01/25 | Singapore | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 980000 | &nbsp;&nbsp;&nbsp;&nbsp; 1753710  |
|  | &nbsp;&nbsp;&nbsp; 0.25%, 9/15/26 | Singapore | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 63000 | &nbsp;&nbsp;&nbsp;&nbsp; 59346  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 3352431  |
|  | **Equity Real Estate Investment Trusts (REITs) 0.0%<sup>†</sup>**<br>|  |  |  |
|  | Blackstone Mortgage Trust Inc., senior note, 5.50%, 3/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9000 | &nbsp;&nbsp;&nbsp;&nbsp; 8762  |
|  | **Food & Beverage 0.2%**<br>|  |  |  |
| <sup>g</sup> | The Cheesecake Factory Inc., senior note, 144A, 2.00%, 3/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 595000 | &nbsp;&nbsp;&nbsp;&nbsp; 607950  |
| <sup>c</sup> | MGP Ingredients Inc., senior bond, 1.875%, 11/15/41 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 437000 | &nbsp;&nbsp;&nbsp;&nbsp; 412396  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1020346  |
|  | **Food & Staples Retailing 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>c</sup> | The Chefs' Warehouse Inc., senior note, 2.375%, 12/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8000 | &nbsp;&nbsp;&nbsp;&nbsp; 12510  |
|  | **Food Products 0.0%<sup>†</sup>**<br>|  |  |  |
|  | JBT Marel Corp., senior note, 0.25%, 5/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 129000 | &nbsp;&nbsp;&nbsp;&nbsp; 127736  |
|  | Rogers Sugar Inc., sub. note, 6.00%, 6/30/30 | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 131000<br> CAD | &nbsp;&nbsp;&nbsp;&nbsp; 98320  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 226056  |
|  | **Gas Utilities 0.1%**<br>|  |  |  |
| <sup>g</sup> | UGI Corp., senior note, 144A, 5.00%, 6/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 360000 | &nbsp;&nbsp;&nbsp;&nbsp; 490680  |
|  | **Ground Transportation 0.2%**<br>|  |  |  |
|  | Uber Technologies Inc., senior note, zero cpn., 12/15/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 724000 | &nbsp;&nbsp;&nbsp;&nbsp; 818844  |
|  | **Health Care Equipment & Supplies 0.9%**<br>|  |  |  |
|  | Alphatec Holdings Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 0.75%, 8/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 177000 | &nbsp;&nbsp;&nbsp;&nbsp; 177768  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>144A, 0.75%, 3/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 258000 | &nbsp;&nbsp;&nbsp;&nbsp; 277292  |
| <sup>b,c</sup> | Conmed Corp., senior note, 2.25%, 6/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 825000 | &nbsp;&nbsp;&nbsp;&nbsp; 785317  |
|  | DexCom Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; <sup>b,c</sup>0.25%, 11/15/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 903000 | &nbsp;&nbsp;&nbsp;&nbsp; 886489  |
|  | &nbsp;&nbsp;&nbsp; 0.375%, 5/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 321000 | &nbsp;&nbsp;&nbsp;&nbsp; 299145  |
|  | Enovis Corp., senior note, 3.875%, 10/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 | &nbsp;&nbsp;&nbsp;&nbsp; 13692  |

---

<br> franklintempleton.com Annual Report 15 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
|  | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** |
|  | **Health Care Equipment & Supplies (continued)** <br>|  |  |  |  |
|  | Envista Holdings Corp., senior note, 1.75%, 8/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31000 |  | &nbsp;&nbsp;&nbsp;&nbsp; $28559  |
| <sup>g</sup> | Exact Sciences Corp., senior note, 144A,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 2.00%, 3/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 140000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 145600  |
|  | &nbsp;&nbsp;&nbsp; <sup>c</sup>1.75%, 4/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 70000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 66108  |
|  | Haemonetics Corp., senior note, 2.50%, 6/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 34191  |
| <sup>g</sup> | Integer Holdings Corp., senior note, 144A, 1.875%, 3/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 148000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 152514  |
|  | Lantheus Holdings Inc., senior note, 2.625%, 12/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 474000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 578636  |
|  | Livanova PLC, senior note, 2.50%, 3/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 14088  |
| <sup>g</sup> | Merit Medical Systems Inc., senior note, 144A, 3.00%, 2/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 77000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 97932  |
|  | Mesa Laboratories Inc., senior note, 1.375%, 8/15/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 264000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 262522  |
| <sup>c</sup> | Repligen Corp., senior note, 1.00%, 12/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 300000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 294743  |
| <sup>g</sup> | Semler Scientific Inc., senior note, 144A, 4.25%, 8/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 19764  |
| <sup>c</sup> | Tandem Diabetes Care Inc., senior note, 1.50%, 3/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 163000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 161272  |
|  | Varex Imaging Corp., senior note, 4.00%, 6/01/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 626000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 626626  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 4922258  |
|  | **Health Care Providers & Services 0.2%**<br>|  |  |  |  |
|  | Guardant Health Inc., senior note, zero cpn., 11/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 902000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 798270  |
|  | **Health Care Technology 0.5%**<br>|  |  |  |  |
|  | Blackline Inc., senior note, zero cpn., 3/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 47164  |
|  | Evolent Health Inc., senior note, 1.50%, 10/15/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 392000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 384670  |
| <sup>g</sup> | Guidewire Software Inc., senior note, 144A, 1.25%, 11/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 175000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 197312  |
| <sup>b</sup> | Integra Lifesciences Holdings Corp., senior note, 0.50%, 8/15/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 583000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 574984  |
|  | Nutanix Inc., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 0.25%, 10/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 372000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 527914  |
|  | &nbsp;&nbsp;&nbsp; <sup>c,g</sup>144A, 0.50%, 12/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 247000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 279452  |
|  | Pagerduty Inc., senior note, 1.50%, 10/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 41000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 38335  |
|  | Pros Holdings Inc., senior note, 2.25%, 9/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 317000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 295602  |
| <sup>c</sup> | Teladoc Health Inc., senior note, 1.25%, 6/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 66000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 60806  |
| <sup>b,c</sup> | Unity Software Inc., senior note, zero cpn., 11/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 284000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 265114  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 2671353  |
|  | **Hotel & Resort REITs 0.2%**<br>|  |  |  |  |
| <sup>b</sup> | Pebblebrook Hotel Trust, senior note, 1.75%, 12/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 655000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 615074  |
|  | Summit Hotel Properties Inc., senior note, 1.50%, 2/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 374000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 361284  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 976358  |
|  | **Hotels, Restaurants & Leisure 1.0%**<br>|  |  |  |  |
|  | Carnival Corp., senior note, 5.75%, 12/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 730000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1376415  |
| <sup>b</sup> | Cracker Barrel Old Country Store Inc., senior note, 0.625%, 6/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 589000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 571322  |
|  | Draftkings Holdings Inc., senior note, zero cpn., 3/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 82000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 72898  |
| <sup>b</sup> | Expedia Group Inc., senior note, zero cpn., 2/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 560000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 547960  |
| <sup>g</sup> | Flight Centre Travel Group Ltd., senior note, Reg S, 1.625%, 11/01/28 | Australia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 600000 | AUD | &nbsp;&nbsp;&nbsp;&nbsp; 377574  |
|  | Marriott Vacations Worldwide Corp., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 3.25%, 12/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 221000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 205861  |
|  | &nbsp;&nbsp;&nbsp; <sup>b</sup>zero cpn., 1/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1004000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 970165  |
|  | Penn Entertainment Inc., senior note, 2.75%, 5/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 46000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 46166  |
|  | Shake Shack Inc., senior note, zero cpn., 3/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 35275  |
| <sup>f,g</sup> | Trip.Com Group Ltd., senior note, 144A, 0.75%, 6/15/29 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 723000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 836789  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 5040425  |
|  | **Industrial REITs 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>g</sup> | Rexford Industrial Realty LP, senior note, 144A, 4.375%, 3/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 15856  |

---

<br> 16 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
|  | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** |
|  | **Insurance 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>g</sup> | Ping An Insurance Group Co. of China Ltd., senior note, Reg S, 0.875%, 7/22/29 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200000 |  | &nbsp;&nbsp;&nbsp;&nbsp; $244555  |
|  | **Interactive Media & Services 0.2%**<br>|  |  |  |  |
|  | Snap Inc., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; <sup>c</sup>0.75%, 8/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 714000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 686332  |
|  | &nbsp;&nbsp;&nbsp; zero cpn., 5/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 139000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 125531  |
|  | &nbsp;&nbsp;&nbsp; 0.125%, 3/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 12923  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 824786  |
|  | **Internet & Direct Marketing Retail 1.1%**<br>|  |  |  |  |
| <sup>g</sup> | Delivery Hero SE, senior note, Reg S, 3.25%, 2/21/30 | South Korea | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2000000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2213829  |
| <sup>g</sup> | Doordash Inc., senior note, 144A, zero cpn., 5/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 206000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 206707  |
|  | Etsy Inc., senior note, 0.25%, 6/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 197000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 170651  |
|  | Fubotv Inc., senior note, 3.25%, 2/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 84000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 81950  |
| <sup>g</sup> | Hims & Hers Health Inc., senior note, 144A, zero cpn., 5/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 283000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 320215  |
| <sup>g</sup> | Just Eat Takeaway.com NV, senior note, Reg S, 1.25%, 4/30/26 | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 600000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 671964  |
|  | Lyft Inc., senior note, 0.625%, 3/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 353000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 374886  |
| <sup>g</sup> | Opendoor Technologies Inc., senior note, 144A, 7.00%, 5/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 168000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 141772  |
| <sup>f</sup> | PDD Holdings Inc., senior note, zero cpn., 12/01/25 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 365000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 355145  |
|  | The Realreal Inc., senior note, 1.00%, 3/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 86000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 68832  |
|  | Spotify USA Inc., senior note, zero cpn., 3/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 312000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 422947  |
| <sup>g</sup> | Trump Media & Technology Group Corp., senior secured note, 144A, zero cpn., 5/29/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 13006  |
|  | Uber Technologies Inc.,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior note, 0.875%, 12/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 143000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 191191  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>senior secured note, 144A, zero cpn., 5/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 76874  |
|  | Ziff Davis Inc., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 1.75%, 11/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 227000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 215081  |
|  | &nbsp;&nbsp;&nbsp; <sup>c,g</sup>144A, 3.625%, 3/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 269000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 253192  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 5778242  |
|  | **IT Services 1.9%**<br>|  |  |  |  |
|  | Akamai Technologies Inc., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 0.375%, 9/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 580000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 559864  |
|  | &nbsp;&nbsp;&nbsp; 1.125%, 2/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 388000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 364526  |
| <sup>g</sup> | Applied Digital Corp., senior note, 144A, 2.75%, 6/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 134000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 120483  |
|  | Cloudflare Inc., senior note, zero cpn., 8/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 850000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 946262  |
| <sup>g</sup> | Core Scientific Inc., senior note, 144A, 3.00%, 9/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 277000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 354214  |
| <sup>b</sup> | Digitalocean Holdings Inc., senior note, zero cpn., 12/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1049000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 985457  |
| <sup>b</sup> | Okta Inc., senior note, 0.125%, 9/01/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 641000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 634593  |
| <sup>g</sup> | Par Technology Corp., senior note, 144A, 1.00%, 1/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 77000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 74929  |
|  | Rapid7 Inc., senior note, 0.25%, 3/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 44000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 40645  |
|  | Seagate HDD Cayman, senior note, 3.50%, 6/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 310000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 469833  |
|  | Shift4 Payments Inc., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 0.50%, 8/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 136000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 145044  |
|  | &nbsp;&nbsp;&nbsp; zero cpn., 12/15/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1037000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1281732  |
| <sup>b</sup> | Shopify Inc., senior note, 0.125%, 11/01/25 | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 943000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 951487  |
| <sup>g</sup> | Snowflake Inc., senior note, 144A, zero cpn.,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 10/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1044000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1495008  |
|  | &nbsp;&nbsp;&nbsp; <sup>b</sup>10/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 99918  |
| <sup>g</sup> | Super Micro Computer Inc., senior note, 144A, 2.25%, 7/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 330000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 362182  |
| <sup>b</sup> | Western Digital Corp., senior note, 3.00%, 11/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 651000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 985940  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 9872117  |

---

<br> franklintempleton.com Annual Report 17 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
|  | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** |
|  | **Leisure Products 0.2%**<br>|  |  |  |
|  | NCL Corp. Ltd., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; <sup>b</sup>1.125%, 2/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 167000 | &nbsp;&nbsp;&nbsp;&nbsp; $160988  |
|  | &nbsp;&nbsp;&nbsp; 2.50%, 2/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 578000 | &nbsp;&nbsp;&nbsp;&nbsp; 568174  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>144A, 0.875%, 4/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 | &nbsp;&nbsp;&nbsp;&nbsp; 13947  |
|  | Peloton Interactive Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>144A, 5.50%, 12/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 193000 | &nbsp;&nbsp;&nbsp;&nbsp; 358112  |
|  | &nbsp;&nbsp;&nbsp; zero cpn., 2/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15000 | &nbsp;&nbsp;&nbsp;&nbsp; 14456  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1115677  |
|  | **Life Sciences Tools & Services 0.0%<sup>†</sup>**<br>|  |  |  |
|  | Inotiv Inc., senior note, 3.25%, 10/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 253000 | &nbsp;&nbsp;&nbsp;&nbsp; 62946  |
|  | **Machinery 0.3%**<br>|  |  |  |
| <sup>c,g</sup> | Bloom Energy Corp., senior note, 144A, 3.00%, 6/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 235000 | &nbsp;&nbsp;&nbsp;&nbsp; 286230  |
| <sup>b</sup> | The Greenbrier Cos. Inc., senior note, 2.875%, 4/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 544000 | &nbsp;&nbsp;&nbsp;&nbsp; 574763  |
|  | The Middleby Corp., senior note, 1.00%, 9/01/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 591000 | &nbsp;&nbsp;&nbsp;&nbsp; 680359  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1541352  |
|  | **Media 0.2%**<br>|  |  |  |
|  | Liberty Interactive LLC,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 4.00%, 11/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 569000 | &nbsp;&nbsp;&nbsp;&nbsp; 80371  |
|  | &nbsp;&nbsp;&nbsp; senior note, 3.75%, 2/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1267000 | &nbsp;&nbsp;&nbsp;&nbsp; 202720  |
| <sup>g</sup> | Liberty Media Corp., senior bond, 144A, 2.375%, 9/30/53 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 171000 | &nbsp;&nbsp;&nbsp;&nbsp; 244616  |
|  | Liberty Media Corp.-Liberty Formula One, senior note, 2.25%, 8/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32000 | &nbsp;&nbsp;&nbsp;&nbsp; 40656  |
|  | Sirius XM Holdings Inc., senior note, 3.75%, 3/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 350000 | &nbsp;&nbsp;&nbsp;&nbsp; 360500  |
|  | Sphere Entertainment Co., senior note, 3.50%, 12/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35000 | &nbsp;&nbsp;&nbsp;&nbsp; 46165  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 975028  |
|  | **Metals & Mining 0.1%**<br>|  |  |  |
| <sup>c,g</sup> | B2gold Corp., senior note, 144A, 2.75%, 2/01/30 | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 157000 | &nbsp;&nbsp;&nbsp;&nbsp; 200940  |
| <sup>g</sup> | Fortuna Mining Corp., senior note, 144A, 3.75%, 6/30/29 | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 125000 | &nbsp;&nbsp;&nbsp;&nbsp; 152969  |
| <sup>g</sup> | Silvercorp Metals Inc., senior note, 144A, 4.75%, 12/15/29 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 113000 | &nbsp;&nbsp;&nbsp;&nbsp; 131701  |
|  | SSR Mining Inc., senior bond, 2.50%, 4/01/39 | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19000 | &nbsp;&nbsp;&nbsp;&nbsp; 19480  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 505090  |
|  | **Oil, Gas & Consumable Fuels 0.0%<sup>†</sup>**<br>|  |  |  |
|  | Enphase Energy Inc., senior note, zero cpn., 3/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16000 | &nbsp;&nbsp;&nbsp;&nbsp; 13253  |
|  | Solaris Energy Infrastructure Inc., senior note, 4.75%, 5/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49000 | &nbsp;&nbsp;&nbsp;&nbsp; 64282  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 77535  |
|  | **Passenger Airlines 0.0%<sup>†</sup>**<br>|  |  |  |
|  | American Airlines Group Inc., senior note, 6.50%, 7/01/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68000 | &nbsp;&nbsp;&nbsp;&nbsp; 68114  |
|  | **Pharmaceuticals 0.6%**<br>|  |  |  |
| <sup>c</sup> | Amphastar Pharmaceuticals Inc., senior note, 2.00%, 3/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 91000 | &nbsp;&nbsp;&nbsp;&nbsp; 79978  |
| <sup>g</sup> | ANI Pharmaceuticals Inc., senior note, 144A, 2.25%, 9/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 569000 | &nbsp;&nbsp;&nbsp;&nbsp; 608398  |
| <sup>b</sup> | Collegium Pharmaceutical Inc., senior note, 2.875%, 2/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 566000 | &nbsp;&nbsp;&nbsp;&nbsp; 600243  |
| <sup>b</sup> | Innoviva Inc., senior note, 2.125%, 3/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 569000 | &nbsp;&nbsp;&nbsp;&nbsp; 567250  |
|  | Jazz Investments I Ltd., senior note, 2.00%, 6/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 691000 | &nbsp;&nbsp;&nbsp;&nbsp; 705338  |
|  | Pacira Biosciences Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 0.75%, 8/01/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 379000 | &nbsp;&nbsp;&nbsp;&nbsp; 375702  |
|  | &nbsp;&nbsp;&nbsp; 2.125%, 5/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 216000 | &nbsp;&nbsp;&nbsp;&nbsp; 218134  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 3155043  |
|  | **Professional Services 0.2%**<br>|  |  |  |
| <sup>b</sup> | Dayforce Inc., senior note, 0.25%, 3/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 997000 | &nbsp;&nbsp;&nbsp;&nbsp; 960111  |

---

<br> 18 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
|  | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** |
|  | **Real Estate Management & Development 0.2%**<br>|  |  |  |  |
| <sup>c,g</sup> | LCI Industries, senior note, 144A, 3.00%, 3/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 431000 |  | &nbsp;&nbsp;&nbsp;&nbsp; $425613  |
| <sup>c</sup> | Meritage Homes Corp., senior note, 1.75%, 5/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 13587  |
|  | Redfin Corp., senior note, 0.50%, 4/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 168000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 150158  |
| <sup>g</sup> | Storagevault Canada Inc., senior note, 144A, 5.00%, 3/31/28 | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 296000 | CAD | &nbsp;&nbsp;&nbsp;&nbsp; 211590  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 800948  |
|  | **Retail REITS 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>g</sup> | Kite Realty Group LP, senior note, 144A, 0.75%, 4/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 36769  |
|  | Ventas Realty LP, senior note, 3.75%, 6/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 46265  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 83034  |
|  | **Semiconductors & Semiconductor Equipment 1.0%**<br>|  |  |  |  |
| <sup>g</sup> | Ams-Osram AG, senior note, Reg S, 2.125%, 11/03/27 | Austria | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 100000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 105313  |
|  | Impinj Inc., senior note, 1.125%, 5/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 155000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 196524  |
|  | Macom Technology Solutions Holdings Inc., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 0.25%, 3/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 239000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 358679  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>144A, zero cpn., 12/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 152000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 151544  |
| <sup>g</sup> | Microchip Technology Inc., senior note, 144A, 0.75%, 6/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 560000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 536340  |
|  | MKS Inc., senior note, 1.25%, 6/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 97000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 88909  |
|  | On Semiconductor Corp., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 0.50%, 3/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 598000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 521905  |
|  | &nbsp;&nbsp;&nbsp; zero cpn., 5/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 419000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 453588  |
|  | Penguin Solutions Inc., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 2.00%, 2/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 451000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 487080  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>144A, 2.00%, 8/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 451000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 417626  |
| <sup>b</sup> | Semtech Corp., senior note, 1.625%, 11/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 528000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 674520  |
|  | Veeco Instruments Inc., senior note, 2.875%, 6/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 394000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 411671  |
| <sup>c</sup> | Vishay Intertechnology Inc., senior note, 2.25%, 9/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 617000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 536482  |
|  | Wolfspeed Inc., senior note, 1.875%, 12/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 115000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 21850  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 4962031  |
|  | **Software 1.6%**<br>|  |  |  |  |
| <sup>g</sup> | Akamai Technologies Inc., senior note, 144A, 0.25%, 5/15/33 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 335000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 337345  |
|  | Alarm.Com Holdings Inc., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>144A, 2.25%, 6/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 70000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 68592  |
|  | &nbsp;&nbsp;&nbsp; zero cpn., 1/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 139000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 134413  |
| <sup>c,g</sup> | Alkami Technology Inc., senior note, 144A, 1.50%, 3/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 218000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 249501  |
|  | Bentley Systems Inc., senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 0.125%, 1/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 142000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 140438  |
|  | &nbsp;&nbsp;&nbsp; 0.375%, 7/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 293000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 271757  |
| <sup>g</sup> | Bigbear.Ai Holdings Inc., senior secured note, 144A, 6.00%, 12/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 123000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 172380  |
| <sup>g</sup> | Bill Holdings Inc., senior note, 144A, zero cpn., 4/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 431000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 360531  |
|  | Bitdeer Technologies Group, senior note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 8.50%, 8/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 182000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 320994  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>144A, 5.25%, 12/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 95000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 103730  |
| <sup>g</sup> | Blackline Inc., senior note, 144A, 1.00%, 6/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 147000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 155732  |
|  | Box Inc., senior note, zero cpn., 1/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 192000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 282816  |
|  | Confluent Inc., senior note, zero cpn., 1/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 436000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 403300  |
| <sup>g</sup> | Core Scientific Inc., senior note, 144A, zero cpn., 6/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 12155  |
|  | CSG Systems International Inc., senior note, 3.875%, 9/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 77000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 88085  |
| <sup>g</sup> | Datadog Inc., senior note, 144A, zero cpn., 12/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 13048  |
|  | Dropbox Inc., senior note, zero cpn.,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 3/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 629000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 628057  |
|  | &nbsp;&nbsp;&nbsp; 3/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 396000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 405504  |
| <sup>g</sup> | Fastly Inc., senior note, 144A, 7.75%, 6/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 13986  |

---

<br> franklintempleton.com Annual Report 19 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
|  | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** | **Convertible Bonds (continued)** |
|  | **Software (continued)** <br>|  |  |  |
|  | Five9 Inc., senior note, 1.00%, 3/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27000 | &nbsp;&nbsp;&nbsp;&nbsp; $23531  |
|  | Jamf Holding Corp., senior note, 0.125%, 9/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16000 | &nbsp;&nbsp;&nbsp;&nbsp; 15101  |
| <sup>g</sup> | Marathon Digital Holdings Inc., senior note, 144A, 2.125%, 9/01/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19000 | &nbsp;&nbsp;&nbsp;&nbsp; 18704  |
|  | Microstrategy Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 0.625%, 3/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17000 | &nbsp;&nbsp;&nbsp;&nbsp; 43711  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>144A, 2.25%, 6/15/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 204000 | &nbsp;&nbsp;&nbsp;&nbsp; 404590  |
|  | Mitek Systems Inc., senior note, 0.75%, 2/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 493000 | &nbsp;&nbsp;&nbsp;&nbsp; 484974  |
|  | Nice Ltd., senior note, zero cpn., 9/15/25 | Israel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 47000 | &nbsp;&nbsp;&nbsp;&nbsp; 46389  |
| <sup>g</sup> | Pagaya Technologies Ltd., senior note, 144A, 6.125%, 10/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42000 | &nbsp;&nbsp;&nbsp;&nbsp; 61690  |
| <sup>g</sup> | Porch Group Inc., senior secured note, 144A, 6.75%, 10/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 95000 | &nbsp;&nbsp;&nbsp;&nbsp; 91422  |
| <sup>c</sup> | Progress Software Corp., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 1.00%, 4/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 72000 | &nbsp;&nbsp;&nbsp;&nbsp; 84560  |
|  | &nbsp;&nbsp;&nbsp; 3.50%, 3/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 395000 | &nbsp;&nbsp;&nbsp;&nbsp; 455813  |
|  | Q2 Holdings Inc., senior note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 0.125%, 11/15/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 336000 | &nbsp;&nbsp;&nbsp;&nbsp; 330758  |
|  | &nbsp;&nbsp;&nbsp; 0.75%, 6/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 518000 | &nbsp;&nbsp;&nbsp;&nbsp; 595700  |
|  | Tyler Technologies Inc., senior note, 0.25%, 3/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 572000 | &nbsp;&nbsp;&nbsp;&nbsp; 699556  |
| <sup>g</sup> | Unity Software Inc., senior note, 144A, zero cpn., 3/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48000 | &nbsp;&nbsp;&nbsp;&nbsp; 50136  |
|  | Verint Systems Inc., senior note, 0.25%, 4/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 334000 | &nbsp;&nbsp;&nbsp;&nbsp; 319635  |
|  | Vertex Inc., senior note, 0.75%, 5/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 265000 | &nbsp;&nbsp;&nbsp;&nbsp; 343122  |
|  | Workiva Inc., senior note, 1.25%, 8/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21000 | &nbsp;&nbsp;&nbsp;&nbsp; 19546  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 8251302  |
|  | **Specialty Retail 0.3%**<br>|  |  |  |
|  | The Cheesecake Factory Inc., senior note, 0.375%, 6/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 188000 | &nbsp;&nbsp;&nbsp;&nbsp; 188044  |
|  | Etsy Inc., senior note, 0.125%, 9/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 173000 | &nbsp;&nbsp;&nbsp;&nbsp; 154792  |
| <sup>g</sup> | Gamestop Corp., senior note, 144A, zero cpn., 4/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 374000 | &nbsp;&nbsp;&nbsp;&nbsp; 474045  |
|  | Guess? Inc., senior note, 3.75%, 4/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 184000 | &nbsp;&nbsp;&nbsp;&nbsp; 169004  |
| <sup>b</sup> | The Realreal Inc., senior note, 4.00%, 2/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 321000 | &nbsp;&nbsp;&nbsp;&nbsp; 272577  |
|  | Wayfair Inc., senior note, 3.25%, 9/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 333000 | &nbsp;&nbsp;&nbsp;&nbsp; 348651  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1607113  |
|  | **Technology Hardware, Storage & Peripherals 0.1%**<br>|  |  |  |
|  | Parsons Corp., senior note, 2.625%, 3/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 70000 | &nbsp;&nbsp;&nbsp;&nbsp; 72135  |
|  | Super Micro Computer Inc., senior note, 3.50%, 3/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 245000 | &nbsp;&nbsp;&nbsp;&nbsp; 247327  |
|  | Varonis Systems Inc., senior note, 1.25%, 8/15/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 81000 | &nbsp;&nbsp;&nbsp;&nbsp; 125753  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 445215  |
|  | **Trading Companies & Distributors 0.1%**<br>|  |  |  |
|  | Xometry Inc., senior note, 1.00%, 2/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 409000 | &nbsp;&nbsp;&nbsp;&nbsp; 422861  |
|  | **Water Utilities 0.1%**<br>|  |  |  |
|  | American Water Capital Corp., senior note, 3.625%, 6/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 410000 | &nbsp;&nbsp;&nbsp;&nbsp; 416970  |
|  | &nbsp;&nbsp;&nbsp; **Total Convertible Bonds** <br>**(Cost $86,246,193)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 86686565  |
|  | **Convertible Bonds in Reorganization 0.0%<sup>†</sup>**<br>|  |  |  |
|  | **Airlines 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>g,j</sup> | GOL Equity Finance SA, senior note, 144A, 3.75%, 7/15/24 | Brazil | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 348000 | &nbsp;&nbsp;&nbsp;&nbsp; 8697  |
|  | **Automobiles 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>e,g,j</sup> | Fisker Inc., senior note, 144A, 2.50%, 9/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 951000 | &nbsp;&nbsp;&nbsp;&nbsp; 5944  |
|  | **Chemicals 0.0%<sup>†</sup>**<br>|  |  |  |
| <sup>g,j</sup> | Danimer Scientific Inc., senior note, 144A, 3.25%, 12/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 264000 | &nbsp;&nbsp;&nbsp;&nbsp; 1485  |

---

<br> 20 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
|  | **Convertible Bonds in Reorganization (continued)** <br>|  |  |  |  |
|  | **Specialty Retail 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>e,g,j</sup> | Shift Technologies Inc., senior note, 144A, 4.75%, 5/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1014000 |  | &nbsp;&nbsp;&nbsp;&nbsp; $6337  |
|  | &nbsp;&nbsp;&nbsp; **Total Convertible Bonds in Reorganization** <br>**(Cost $2,200,756)** |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 22463  |
|  | **Corporate Bonds and Notes 4.0%**<br>|  |  |  |  |
|  | **Airlines 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>g,k</sup> | GOL Finance Inc., senior secured note, 144A, 14.375%, 6/05/30 | Brazil | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 187500 |  | &nbsp;&nbsp;&nbsp;&nbsp; 171797  |
|  | **Banks 0.2%**<br>|  |  |  |  |
| <sup>g,l</sup> | Akbank TAS, junior sub. note, 144A, 9.369%, Perpetual | Turkey | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 536000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 544040  |
|  | European Bank For Reconstruction & Development, EMTN, senior bond, zero cpn., 7/11/36 | Supranational<sup>m</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 133400000 | TRY | &nbsp;&nbsp;&nbsp;&nbsp; 222186  |
|  | Yapi Kredi Bankasi, senior bond, 9.25%, 1/17/34 | Turkey | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 537000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 557221  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1323447  |
|  | **Building Products 0.2%**<br>|  |  |  |  |
| <sup>e,n</sup> | Atlas Security Products, zero cpn., 2/08/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1093204 |  | &nbsp;&nbsp;&nbsp;&nbsp; 931088  |
|  | **Communications Equipment 0.3%**<br>|  |  |  |  |
| <sup>b</sup> | Echostar Corp., senior secured note,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; <sup>i</sup>PIK, 6.75%, 11/30/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 963877 |  | &nbsp;&nbsp;&nbsp;&nbsp; 829537  |
|  | &nbsp;&nbsp;&nbsp; 10.75%, 11/30/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 593717 |  | &nbsp;&nbsp;&nbsp;&nbsp; 597027  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1426564  |
|  | **Diversified Financial Services 0.1%**<br>|  |  |  |  |
| <sup>g</sup> | Credicorp Capital Sociedad Titulizadora SA, senior bond, 144A, Reg S, 10.10%, 12/15/43 | Peru | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 500000 | PEN | &nbsp;&nbsp;&nbsp;&nbsp; 148171  |
| <sup>g</sup> | Kane Bidco Ltd., senior secured note, Reg S, 5.00%, 2/15/27 | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 191000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 218633  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 366804  |
|  | **Diversified Telecommunication Services 0.1%**<br>|  |  |  |  |
| <sup>b,g</sup> | Commscope LLC, senior secured note, 144A, 9.50%, 12/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 700000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 728048  |
|  | **Electric Utilities 0.3%**<br>|  |  |  |  |
| <sup>g</sup> | XPLR Infrastructure Operating Partners LP, senior note, 144A,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 8.375%, 1/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 480000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 501574  |
|  | &nbsp;&nbsp;&nbsp; <sup>b</sup>8.625%, 3/15/33 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 849000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 891276  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1392850  |
|  | **Health Care Providers & Services 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>b,g</sup> | CHS/Community Health Systems Inc., senior secured bond, 144A, 4.75%, 2/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 90000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 77112  |
|  | **Household Durables 0.3%**<br>|  |  |  |  |
| <sup>g</sup> | K. Hovnanian Enterprises Inc., senior secured note, 144A,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; <sup>b</sup>8.00%, 9/30/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 500000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 505000  |
|  | &nbsp;&nbsp;&nbsp; 11.75%, 9/30/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1034000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1114962  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1619962  |
|  | **Information Technology 0.1%**<br>|  |  |  |  |
| <sup>b,g</sup> | Xerox Holdings Corp., senior note, 144A, 5.50%, 8/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 542000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 380790  |
|  | **Insurance 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>g</sup> | Ardonagh Finco Ltd., senior secured note, Reg S, 6.875%, 2/15/31 | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 94000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 109466  |

---

<br> franklintempleton.com Annual Report 21 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
|  | **Corporate Bonds and Notes (continued)** <br>|  |  |  |  |
|  | **Media 0.1%**<br>|  |  |  |  |
| <sup>b,g</sup> | CSC Holdings LLC, senior bond, 144A,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 5.75%, 1/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 561000 |  | &nbsp;&nbsp;&nbsp;&nbsp; $283660  |
|  | &nbsp;&nbsp;&nbsp; 4.625%, 12/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 9678  |
|  | &nbsp;&nbsp;&nbsp; 5.00%, 11/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 10937  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 304275  |
|  | **Metals & Mining 0.1%** <br>|  |  |  |  |
| <sup>g,i</sup>  | Samarco Mineracao SA, senior note, PIK, Reg S, 9.50%, 6/30/31  | Brazil  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 728490  |  | &nbsp;&nbsp;&nbsp;&nbsp; 707991  |
|  | **Oil, Gas & Consumable Fuels 1.0%**<br>|  |  |  |  |
| <sup>g</sup> | Civitas Resources Inc., senior note, 144A,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; 8.75%, 7/01/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 350000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 342635  |
|  | &nbsp;&nbsp;&nbsp; 9.625%, 6/15/33 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 205000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 205561  |
|  | Ecopetrol SA, senior note, 7.75%, 2/01/32 | Colombia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 717000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 695593  |
| <sup>b,g</sup> | &nbsp;&nbsp;&nbsp; Moss Creek Resources Holdings Inc., senior note, 144A, <br>8.25%, 9/01/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 612000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 590534  |
| <sup>g</sup> | Nabors Industries Inc., senior note, 144A, 7.375%, 5/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 312000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 299822  |
|  | Petroleos Mexicanos,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 6.50%, 1/23/29 | Mexico | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 178000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 170341  |
|  | &nbsp;&nbsp;&nbsp; senior note, 5.35%, 2/12/28 | Mexico | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1482000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1393645  |
|  | &nbsp;&nbsp;&nbsp; senior note, 8.75%, 6/02/29 | Mexico | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 506000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 512749  |
| <sup>g</sup> | Vital Energy Inc., senior note, 144A, 7.875%, 4/15/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 548000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 444955  |
| <sup>g</sup> | Yinson Boronia Production BV, senior secured bond, Reg S, 8.947%, 7/31/42 | Brazil | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 573893 |  | &nbsp;&nbsp;&nbsp;&nbsp; 598290  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 5254125  |
|  | **Packaging & Containers 0.1%**<br>|  |  |  |  |
| <sup>b,g</sup> | LABL Inc., senior secured note, 144A, 9.50%, 11/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 320000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 288583  |
|  | **Passenger Airlines 0.7%**<br>|  |  |  |  |
| <sup>g,i</sup> | American Airlines Group Inc., senior secured note, 144A, PIK, 10.75%, 2/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3459000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3485494  |
|  | **Pharmaceuticals 0.2%**<br>|  |  |  |  |
| <sup>g</sup> | Cheplapharm Arzneimittel GMBH, senior secured note, Reg S, 7.50%, 5/15/30 | Germany | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 900000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 1035318  |
|  | **Specialty Retail 0.2%**<br>|  |  |  |  |
| <sup>b,g</sup> | Guitar Center Inc., senior secured note, 144A, 8.50%, 1/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 598000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 477998  |
| <sup>b,g</sup> | S&S Holdings LLC, senior secured note, 144A, 8.375%, 10/01/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 832000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 794771  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 1272769  |
|  | &nbsp;&nbsp;&nbsp; **Total Corporate Bonds and Notes** <br>**(Cost $20,911,039)** |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 20876483  |
|  | **Corporate Bonds and Notes in Reorganization 0.1%**<br>|  |  |  |  |
|  | **Airlines 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>j</sup> | Azul Secured Finance LLP, senior secured note, 11.93%, 8/28/28 | Brazil | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 239000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 68307  |
|  | **Diversified Telecommunication Services 0.1%**<br>|  |  |  |  |
| <sup>g,j</sup> | Ligado Networks LLC, senior secured note, 144A, 15.50%, 7/07/24 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1772131 |  | &nbsp;&nbsp;&nbsp;&nbsp; 505058  |
|  | **Real Estate Management & Development 0.0%<sup>†</sup>**<br>|  |  |  |  |
| <sup>g,j</sup> | Kaisa Group Holdings Ltd., Reg S,  | Kaisa Group Holdings Ltd., Reg S,  | Kaisa Group Holdings Ltd., Reg S,  | Kaisa Group Holdings Ltd., Reg S,  | Kaisa Group Holdings Ltd., Reg S,  |
|  | &nbsp;&nbsp;&nbsp; senior note, 11.95%, 10/22/22 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 399000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 16958  |
|  | &nbsp;&nbsp;&nbsp; senior secured note, 8.50%, 6/30/22 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 420000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 18900  |
|  | &nbsp;&nbsp;&nbsp; senior secured note, 11.25%, 4/16/25 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 537000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 24165  |

---

<br> 22 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
|  | **Corporate Bonds and Notes in Reorganization (continued)** <br>|  |  |  |
|  | **Real Estate Management & Development (continued)** <br>|  |  |  |
| <sup>j</sup> | Zhenro Properties Group Ltd., senior note,  | Zhenro Properties Group Ltd., senior note,  | Zhenro Properties Group Ltd., senior note,  | Zhenro Properties Group Ltd., senior note,  |
|  | &nbsp;&nbsp;&nbsp; 8.00%, 3/06/23 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 981000 | &nbsp;&nbsp;&nbsp;&nbsp; $4571  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>Reg S, 6.63%, 1/07/26 | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 203000 | &nbsp;&nbsp;&nbsp;&nbsp; 1421  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 66015  |
|  | &nbsp;&nbsp;&nbsp; **Total Corporate Bonds and Notes in Reorganization** <br>**(Cost $1,226,937)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 639380  |
| <sup>o,p</sup> | **Senior Floating Rate Interests 2.4%**<br>|  |  |  |
|  | **Building Products 0.0%<sup>†</sup>**<br>|  |  |  |
|  | Cornerstone Building Brands, Inc., Term Loan B, 7.679%, (1-Month SOFR + 3.25%), 4/12/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 72845 | &nbsp;&nbsp;&nbsp;&nbsp; 65227  |
|  | **Communications Equipment 0.0%<sup>†</sup>**  | **Communications Equipment 0.0%<sup>†</sup>**  | **Communications Equipment 0.0%<sup>†</sup>**  | **Communications Equipment 0.0%<sup>†</sup>**  |
|  | Ligado Networks LLC, DIP Roll-Up, 17.50%, (fixed), 2/10/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 81571 | &nbsp;&nbsp;&nbsp;&nbsp; 73108  |
| <sup>e</sup> | Ligado Networks LLC, DIP New Money Loan, 17.50%, (fixed), 2/10/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 88628 | &nbsp;&nbsp;&nbsp;&nbsp; 88628  |
| <sup>i</sup> | Riverbed Technology Inc., Exit Term Loan, PIK, 6.799%, (1-Month SOFR + 4.50%), 7/01/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 57944 | &nbsp;&nbsp;&nbsp;&nbsp; 28682  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 190418  |
|  | **Diversified Financial Services 0.4%**  | **Diversified Financial Services 0.4%**  | **Diversified Financial Services 0.4%**  | **Diversified Financial Services 0.4%**  |
| <sup>e</sup> | &nbsp;&nbsp;&nbsp; Midcap Financial Issuer Trust, Initial Term Loan, 8.25%, (fixed), <br>1/07/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2020000 | &nbsp;&nbsp;&nbsp;&nbsp; 1981808  |
|  | **Diversified Telecommunication Services 0.0%<sup>†</sup>**  | **Diversified Telecommunication Services 0.0%<sup>†</sup>**  | **Diversified Telecommunication Services 0.0%<sup>†</sup>**  | **Diversified Telecommunication Services 0.0%<sup>†</sup>**  |
| <sup>q</sup> | Liberty Communications of Puerto Rico LLC, Term Loan B, 8.193%, (SOFR + 3.75%), 10/16/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 84301 | &nbsp;&nbsp;&nbsp;&nbsp; 62470  |
|  | **Food & Staples Retailing 0.5%**  | **Food & Staples Retailing 0.5%**  | **Food & Staples Retailing 0.5%**  | **Food & Staples Retailing 0.5%**  |
|  | H-Food Holdings LLC,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; Initial Term Loan, 12.188%, (3-Month SOFR + 3.95%), 6/27/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1000742 | &nbsp;&nbsp;&nbsp;&nbsp; 500371  |
|  | &nbsp;&nbsp;&nbsp; Initial Term Loan, 12.50%, (3-Month SOFR + 4.26%), 6/27/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 339377 | &nbsp;&nbsp;&nbsp;&nbsp; 169689  |
|  | &nbsp;&nbsp;&nbsp; Incremental Term Loan B-3, 13.75%, (3-Month SOFR + 5.26%), 6/27/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49841 | &nbsp;&nbsp;&nbsp;&nbsp; 24920  |
|  | &nbsp;&nbsp;&nbsp; Market Bidco Ltd., Facility B4, 9.572%, (1-Day SONIA + 5.36%), <br>11/04/30 | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1240000 | &nbsp;&nbsp;&nbsp;&nbsp; 1614329  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 2309309 |
|  | **Health Care Providers & Services 0.1%**  | **Health Care Providers & Services 0.1%**  | **Health Care Providers & Services 0.1%**  | **Health Care Providers & Services 0.1%**  |
|  | Gainwell Acquisition Corp, Term Loan B, 8.399%, (1-Month SOFR + 4.10%), 10/01/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 273450 | &nbsp;&nbsp;&nbsp;&nbsp; 262649  |
| <sup>q</sup> | Petco Health & Wellness Co. Inc., First Lien Term Loan, 7.811%, (3-Month SOFR + 3.51%), 3/03/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19500 | &nbsp;&nbsp;&nbsp;&nbsp; 18159  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 280808  |
|  | **Household Durables 0.1%**  | **Household Durables 0.1%**  | **Household Durables 0.1%**  | **Household Durables 0.1%**  |
|  | &nbsp;&nbsp;&nbsp; K. Hovnanian Enterprises, Inc., Initial Term Loan, 10.00%, (fixed), <br>1/31/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 778000 | &nbsp;&nbsp;&nbsp;&nbsp; 762440  |
|  | **IT Services 0.1%**  | **IT Services 0.1%**  | **IT Services 0.1%**  | **IT Services 0.1%**  |
|  | Databricks, Inc., Initial Closing Date Term Loan,  | Databricks, Inc., Initial Closing Date Term Loan,  | Databricks, Inc., Initial Closing Date Term Loan,  | Databricks, Inc., Initial Closing Date Term Loan,  |
|  | &nbsp;&nbsp;&nbsp; 8.829%, (1-Month SOFR + 4.50%), 12/20/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 413483 | &nbsp;&nbsp;&nbsp;&nbsp; 417617  |
|  | &nbsp;&nbsp;&nbsp; 8.809%, (1-Month SOFR + 4.50%), 1/03/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 91517 | &nbsp;&nbsp;&nbsp;&nbsp; 92433  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 510050  |
|  | **Leisure Products 0.1%**  | **Leisure Products 0.1%**  | **Leisure Products 0.1%**  | **Leisure Products 0.1%**  |
|  | Peloton Interactive Inc., Initial Term Loan, 9.833%, (1-Month SOFR + 6.00%), 5/30/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 551444 | &nbsp;&nbsp;&nbsp;&nbsp; 561326  |

---

<br> franklintempleton.com Annual Report 23 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
| <sup>o,p</sup> | **Senior Floating Rate Interests (continued)** <br>|  |  |  |  |
|  | **Media 0.9%**  | **Media 0.9%**  | **Media 0.9%**  | **Media 0.9%**  | **Media 0.9%**  |
|  | Altice USA Inc., Term Loan B-5, 9.00%, (1-Month SOFR + 2.50%), 4/15/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp; 136660 |  | &nbsp;&nbsp;&nbsp;&nbsp; $134269  |
|  | CSC Holdings LLC, Term Loan B, 8.829%, (1-Month SOFR + 4.50%), 1/18/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp; 2722383 |  | &nbsp;&nbsp;&nbsp;&nbsp; 2693457  |
|  | X Corp.,<br>|  |  |  |  |
|  | &nbsp;&nbsp;&nbsp; Term Loan B-3, 9.50%, (fixed), 10/26/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp; 690923 |  | &nbsp;&nbsp;&nbsp;&nbsp; 688601  |
|  | &nbsp;&nbsp;&nbsp; Term Loan B-1, 10.949%, (3-Month SOFR + 6.65%), 10/26/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp; 806065 |  | &nbsp;&nbsp;&nbsp;&nbsp; 799290  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 4315617  |
|  | **Packaging & Containers 0.1%**  | **Packaging & Containers 0.1%**  | **Packaging & Containers 0.1%**  | **Packaging & Containers 0.1%**  | **Packaging & Containers 0.1%**  |
|  | Multi-Color, Initial Term Loan, 9.427%, (1-Month SOFR + 5.10%), 10/30/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp; 707540 |  | &nbsp;&nbsp;&nbsp;&nbsp; 632869  |
|  | **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>**  |
|  | &nbsp;&nbsp;&nbsp; CoreLogic Inc., Term Loan B, 7.941%, (1-Month SOFR + 3.61%), <br>6/02/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp; 72386 |  | &nbsp;&nbsp;&nbsp;&nbsp; 71509  |
|  | **Software 0.1%**  | **Software 0.1%**  | **Software 0.1%**  | **Software 0.1%**  | **Software 0.1%**  |
| <sup>q</sup> | Solera Holdings, First Lien Dollar Term Loan, 8.291%, (1-Month SOFR + 4.00%), 6/02/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp; 519747 |  | &nbsp;&nbsp;&nbsp;&nbsp; 504391  |
|  | **Specialty Retail 0.0%<sup>†</sup>**  | **Specialty Retail 0.0%<sup>†</sup>**  | **Specialty Retail 0.0%<sup>†</sup>**  | **Specialty Retail 0.0%<sup>†</sup>**  | **Specialty Retail 0.0%<sup>†</sup>**  |
| <sup>q</sup> | Harbor Freight Tools, Term Loan B, 6.577%, (SOFR + 2.50%), 6/11/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp; 58448 |  | &nbsp;&nbsp;&nbsp;&nbsp; 56605  |
|  | &nbsp;&nbsp;&nbsp; **Total Senior Floating Rate Interests** <br>**(Cost $12,802,251)** |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 12304847  |
|  | **Foreign Government and Agency Securities 4.5%**  | **Foreign Government and Agency Securities 4.5%**  | **Foreign Government and Agency Securities 4.5%**  | **Foreign Government and Agency Securities 4.5%**  | **Foreign Government and Agency Securities 4.5%**  |
| <sup>g</sup> | Development Bank of Kazakhstan JSC, senior note, 144A, 13.489%, 5/23/28 | Kazakhstan | &nbsp;&nbsp;&nbsp;&nbsp; 100000000 | KZT | &nbsp;&nbsp;&nbsp;&nbsp; 184890  |
|  | Government of Argentina,  | Government of Argentina,  | Government of Argentina,  | Government of Argentina,  | Government of Argentina,  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 4.125%, 7/09/46 | Argentina | &nbsp;&nbsp;&nbsp;&nbsp; 1562659 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1026667  |
|  | &nbsp;&nbsp;&nbsp; senior bond, zero cpn., 12/15/35 | Argentina | &nbsp;&nbsp;&nbsp;&nbsp; 10162000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 587877  |
|  | &nbsp;&nbsp;&nbsp; senior note, 0.75%, 7/09/30 | Argentina | &nbsp;&nbsp;&nbsp;&nbsp; 105600 |  | &nbsp;&nbsp;&nbsp;&nbsp; 82949  |
|  | Government of Colombia, senior bond,  | Government of Colombia, senior bond,  | Government of Colombia, senior bond,  | Government of Colombia, senior bond,  | Government of Colombia, senior bond,  |
|  | &nbsp;&nbsp;&nbsp; B, 13.25%, 2/09/33 | Colombia | &nbsp;&nbsp;&nbsp;&nbsp; 3060700000 | COP | &nbsp;&nbsp;&nbsp;&nbsp; 779953  |
|  | &nbsp;&nbsp;&nbsp; 7.75%, 11/07/36 | Colombia | &nbsp;&nbsp;&nbsp;&nbsp; 695000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 675192  |
|  | &nbsp;&nbsp;&nbsp; B, 7.25%, 10/26/50 | Colombia | &nbsp;&nbsp;&nbsp;&nbsp; 1573700000 | COP | &nbsp;&nbsp;&nbsp;&nbsp; 223585  |
|  | &nbsp;&nbsp;&nbsp; 8.75%, 11/14/53 | Colombia | &nbsp;&nbsp;&nbsp;&nbsp; 561000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 549079  |
|  | &nbsp;&nbsp;&nbsp; 8.375%, 11/07/54 | Colombia | &nbsp;&nbsp;&nbsp;&nbsp; 955000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 891349  |
| <sup>g</sup> | Government of Dominican Republic, senior bond,  | Government of Dominican Republic, senior bond,  | Government of Dominican Republic, senior bond,  | Government of Dominican Republic, senior bond,  | Government of Dominican Republic, senior bond,  |
|  | &nbsp;&nbsp;&nbsp; 144A, 10.75%, 6/01/36 | Dominican Republic | &nbsp;&nbsp;&nbsp;&nbsp; 42750000 | DOP | &nbsp;&nbsp;&nbsp;&nbsp; 727927  |
|  | &nbsp;&nbsp;&nbsp; 144A, 11.25%, 9/15/35 | Dominican Republic | &nbsp;&nbsp;&nbsp;&nbsp; 11150000 | DOP | &nbsp;&nbsp;&nbsp;&nbsp; 195504  |
|  | &nbsp;&nbsp;&nbsp; Reg S, 10.75%, 6/01/36 | Dominican Republic | &nbsp;&nbsp;&nbsp;&nbsp; 8100000 | DOP | &nbsp;&nbsp;&nbsp;&nbsp; 136853  |
|  | Government of Ecuador,  | Government of Ecuador,  | Government of Ecuador,  | Government of Ecuador,  | Government of Ecuador,  |
|  | &nbsp;&nbsp;&nbsp; senior note, 7/31/30 | Ecuador | &nbsp;&nbsp;&nbsp;&nbsp; 791000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 498443  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>senior bond, Reg S, 5.50%, 7/31/35 | Ecuador | &nbsp;&nbsp;&nbsp;&nbsp; 1210048 |  | &nbsp;&nbsp;&nbsp;&nbsp; 757793  |
|  | Government of El Salvador, senior bond,  | Government of El Salvador, senior bond,  | Government of El Salvador, senior bond,  | Government of El Salvador, senior bond,  | Government of El Salvador, senior bond,  |
|  | &nbsp;&nbsp;&nbsp; 9.50%, 7/15/52 | El Salvador | &nbsp;&nbsp;&nbsp;&nbsp; 185000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 184589  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>Reg S, 9.65%, 11/21/54 | El Salvador | &nbsp;&nbsp;&nbsp;&nbsp; 400000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 399552  |
| <sup>g</sup> | Government of Ghana, senior note, Reg S,  | Government of Ghana, senior note, Reg S,  | Government of Ghana, senior note, Reg S,  | Government of Ghana, senior note, Reg S,  | Government of Ghana, senior note, Reg S,  |
|  | &nbsp;&nbsp;&nbsp; 5.00%, 7/03/29 | Ghana | &nbsp;&nbsp;&nbsp;&nbsp; 1235000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1131086  |
|  | &nbsp;&nbsp;&nbsp; zero cpn., 7/03/26 | Ghana | &nbsp;&nbsp;&nbsp;&nbsp; 481464 |  | &nbsp;&nbsp;&nbsp;&nbsp; 466487  |

---

<br> 24 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
|  | **Foreign Government and Agency Securities (continued)**  | **Foreign Government and Agency Securities (continued)**  | **Foreign Government and Agency Securities (continued)**  | **Foreign Government and Agency Securities (continued)**  | **Foreign Government and Agency Securities (continued)**  |
|  | Government of Indonesia, senior bond, 7.125%, 6/15/38 | Indonesia | &nbsp;&nbsp; 16781000000 | IDR | &nbsp;&nbsp;&nbsp;&nbsp; $1045707  |
|  | Government of Italy, senior note, 1.25%, 2/17/26 | Italy | &nbsp;&nbsp; 350000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 342397  |
| <sup>g</sup> | Government of Pakistan, Reg S, | Government of Pakistan, Reg S, | Government of Pakistan, Reg S, | Government of Pakistan, Reg S, | Government of Pakistan, Reg S, |
|  | &nbsp;&nbsp;&nbsp; senior bond, 6.875%, 12/05/27 | Pakistan | &nbsp;&nbsp; 275000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 255805  |
|  | &nbsp;&nbsp;&nbsp; senior note, 6.00%, 4/08/26 | Pakistan | &nbsp;&nbsp; 818000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 800418  |
| <sup>g</sup> | Government of Paraguay, senior bond,  | Government of Paraguay, senior bond,  | Government of Paraguay, senior bond,  | Government of Paraguay, senior bond,  | Government of Paraguay, senior bond,  |
|  | &nbsp;&nbsp;&nbsp; 144A, 8.50%, 3/04/35 | Paraguay | &nbsp;&nbsp; 4945000000 | PYG | &nbsp;&nbsp;&nbsp;&nbsp; 592558  |
|  | &nbsp;&nbsp;&nbsp; Reg S, 6.65%, 3/04/55 | Paraguay | &nbsp;&nbsp; 200000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 195090  |
| <sup>g</sup> | Government of Peru, senior bond, 144A,  | Government of Peru, senior bond, 144A,  | Government of Peru, senior bond, 144A,  | Government of Peru, senior bond, 144A,  | Government of Peru, senior bond, 144A,  |
|  | &nbsp;&nbsp;&nbsp; 7.60%, 8/12/39 | Peru | &nbsp;&nbsp; 3147000 | PEN | &nbsp;&nbsp;&nbsp;&nbsp; 903998  |
|  | &nbsp;&nbsp;&nbsp; Reg S, 7.30%, 8/12/33 | Peru | &nbsp;&nbsp; 3881000 | PEN | &nbsp;&nbsp;&nbsp;&nbsp; 1150710  |
|  | Government of South Africa, senior bond,  | Government of South Africa, senior bond,  | Government of South Africa, senior bond,  | Government of South Africa, senior bond,  | Government of South Africa, senior bond,  |
|  | &nbsp;&nbsp;&nbsp; 8.50%, 1/31/37 | South Africa | &nbsp;&nbsp; 46177000 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 2202147  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>Reg S, 7.95%, 11/19/54 | South Africa | &nbsp;&nbsp; 515000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 473506  |
|  | Government of Sri Lanka,  | Government of Sri Lanka,  | Government of Sri Lanka,  | Government of Sri Lanka,  | Government of Sri Lanka,  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 3.60%, 6/15/35 | Sri Lanka | &nbsp;&nbsp; 265000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 199899  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>senior note, Reg S, 3.10%, 1/15/30 | Sri Lanka | &nbsp;&nbsp; 185000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 150319  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>senior note, Reg S, 4.00%, 4/15/28 | Sri Lanka | &nbsp;&nbsp; 69350 |  | &nbsp;&nbsp;&nbsp;&nbsp; 65016  |
| <sup>g</sup> | Government of Tunisia, senior note, Reg S, 6.375%, 7/15/26 | Tunisia | &nbsp;&nbsp; 398000 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 444164  |
|  | Government of Turkey,  | Government of Turkey,  | Government of Turkey,  | Government of Turkey,  | Government of Turkey,  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 10.117%, 7/24/73 | Turkey | &nbsp;&nbsp; 680000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 703130  |
|  | &nbsp;&nbsp;&nbsp; senior note, 7.25%, 5/29/32 | Turkey | &nbsp;&nbsp; 865000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 851852  |
|  | &nbsp;&nbsp;&nbsp; senior note, 26.20%, 10/05/33 | Turkey | &nbsp;&nbsp; 10324000 | TRY | &nbsp;&nbsp;&nbsp;&nbsp; 227415  |
|  | &nbsp;&nbsp;&nbsp; senior note, 31.08%, 11/08/28 | Turkey | &nbsp;&nbsp; 6051000 | TRY | &nbsp;&nbsp;&nbsp;&nbsp; 140208  |
|  | Government of Zambia, senior bond,  | Government of Zambia, senior bond,  | Government of Zambia, senior bond,  | Government of Zambia, senior bond,  | Government of Zambia, senior bond,  |
|  | &nbsp;&nbsp;&nbsp; 5.75%, 6/30/33 | Zambia | &nbsp;&nbsp; 1174968 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1057765  |
|  | &nbsp;&nbsp;&nbsp; <sup>g</sup>Reg S, 0.50%, 12/31/53 | Zambia | &nbsp;&nbsp; 438528 |  | &nbsp;&nbsp;&nbsp;&nbsp; 268319  |
|  | Istanbul Metropolitan Municipality, senior note, 10.50%, 12/06/28 | Turkey | &nbsp;&nbsp; 260000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 278042  |
| <sup>g</sup> | Provincia de Buenos Aires, senior bond, Reg S, 6.625%, 9/01/37 | Argentina | &nbsp;&nbsp; 2110227 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1537828  |
|  | &nbsp;&nbsp;&nbsp; **Total Foreign Government and Agency Securities** <br>**(Cost $22,080,347)** |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 23386068  |
|  | **Foreign Government and Agency Securities in Reorganization 0.1%**  | **Foreign Government and Agency Securities in Reorganization 0.1%**  | **Foreign Government and Agency Securities in Reorganization 0.1%**  | **Foreign Government and Agency Securities in Reorganization 0.1%**  | **Foreign Government and Agency Securities in Reorganization 0.1%**  |
| <sup>g,j</sup> | Government of Lebanon, Reg S,  | Government of Lebanon, Reg S,  | Government of Lebanon, Reg S,  | Government of Lebanon, Reg S,  | Government of Lebanon, Reg S,  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 6.00%, 1/27/23 | Lebanon | &nbsp;&nbsp; 212000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 37031  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 6.75%, 11/29/27 | Lebanon | &nbsp;&nbsp; 103000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 18020  |
|  | &nbsp;&nbsp;&nbsp; senior bond, E, 6.10%, 10/04/22 | Lebanon | &nbsp;&nbsp; 1010000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 176150  |
|  | &nbsp;&nbsp;&nbsp; senior bond, G, 6.375%, 3/09/20 | Lebanon | &nbsp;&nbsp; 212000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 37034  |
|  | &nbsp;&nbsp;&nbsp; senior note, G, 6.15%, 6/19/20 | Lebanon | &nbsp;&nbsp; 212000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 37035  |
|  | &nbsp;&nbsp;&nbsp; senior note, G, 6.25%, 11/04/24 | Lebanon | &nbsp;&nbsp; 212000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 37148  |
| <sup>g,j</sup> | Government of Venezuela, senior bond, Reg S,  | Government of Venezuela, senior bond, Reg S,  | Government of Venezuela, senior bond, Reg S,  | Government of Venezuela, senior bond, Reg S,  | Government of Venezuela, senior bond, Reg S,  |
|  | &nbsp;&nbsp;&nbsp; 9.00%, 5/07/23 | Venezuela | &nbsp;&nbsp; 459000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 71036  |
|  | &nbsp;&nbsp;&nbsp; 7.65%, 4/21/25 | Venezuela | &nbsp;&nbsp; 463000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 72229  |
|  | &nbsp;&nbsp;&nbsp; 11.75%, 10/21/26 | Venezuela | &nbsp;&nbsp; 389000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 75311  |
|  | &nbsp;&nbsp;&nbsp; **Total Foreign Government and Agency Securities in Reorganization** <br>**(Cost $613,385)** |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 560994  |
|  | **U.S. Government and Agency Securities 1.6%**  | **U.S. Government and Agency Securities 1.6%**  | **U.S. Government and Agency Securities 1.6%**  | **U.S. Government and Agency Securities 1.6%**  | **U.S. Government and Agency Securities 1.6%**  |
|  | U.S. Treasury Bond, 4.25%, 5/15/35 | United States | &nbsp;&nbsp; 82000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 81084  |
|  | U.S. Treasury Note,  | U.S. Treasury Note,  | U.S. Treasury Note,  | U.S. Treasury Note,  | U.S. Treasury Note,  |
|  | &nbsp;&nbsp;&nbsp; 5.00%, 8/31/25 | United States | &nbsp;&nbsp; 1356000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 1357884  |
|  | &nbsp;&nbsp;&nbsp; 3.875%, 3/31/27 | United States | &nbsp;&nbsp; 230000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 229762  |
|  | &nbsp;&nbsp;&nbsp; 4.00%, 3/31/30 | United States | &nbsp;&nbsp; 5694000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 5704676  |
|  | &nbsp;&nbsp;&nbsp; 3.875%, 4/30/30 | United States | &nbsp;&nbsp; 180000 |  | &nbsp;&nbsp;&nbsp;&nbsp; 179311  |

---

<br> franklintempleton.com Annual Report 25 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Country**  | **Principal Amount<sup>\*</sup>**  | **Value**  |
| **U.S. Government and Agency Securities (continued)**  | **U.S. Government and Agency Securities (continued)**  | **U.S. Government and Agency Securities (continued)**  | **U.S. Government and Agency Securities (continued)**  |
| &nbsp;&nbsp;&nbsp; 4.125%, 3/31/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3000 | &nbsp;&nbsp;&nbsp;&nbsp; $2994  |
| &nbsp;&nbsp;&nbsp; 4.625%, 2/15/35 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 647000 | &nbsp;&nbsp;&nbsp;&nbsp; 659283  |
| &nbsp;&nbsp;&nbsp; **Total U.S. Government and Agency Securities** <br>**(Cost $8,213,155)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 8214994 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of Contracts** | **Notional**<br>**Amount<sup>#</sup>** |  |
| **Options Purchased 0.1%**  | **Options Purchased 0.1%**  | **Options Purchased 0.1%**  | **Options Purchased 0.1%**  |
| **Calls - Exchange-Traded 0.0%<sup>†</sup>**  | **Calls - Exchange-Traded 0.0%<sup>†</sup>**  | **Calls - Exchange-Traded 0.0%<sup>†</sup>**  | **Calls - Exchange-Traded 0.0%<sup>†</sup>**  |
| American Airlines Group, Inc., July Strike Price $12.00, Expires 7/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 487 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 554693 | &nbsp;&nbsp;&nbsp;&nbsp; 28733  |
| Five9, Inc., June Strike Price $32.50, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18382 | &nbsp;&nbsp;&nbsp;&nbsp; 105  |
| Golar LNG, Ltd., June Strike Price $34.00, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 87 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 362790 | &nbsp;&nbsp;&nbsp;&nbsp; 69165  |
| Okta, Inc., June Strike Price $120.00, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31419 | &nbsp;&nbsp;&nbsp;&nbsp; 66  |
| Porch Group, Inc., December Strike Price $12.50, Expires 12/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6545 | &nbsp;&nbsp;&nbsp;&nbsp; 1137  |
| Sable Offshore Corp., July Strike Price $25.00, Expires 7/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 83 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 242194 | &nbsp;&nbsp;&nbsp;&nbsp; 46895  |
| Surgery Partners, Inc., June Strike Price $22.50, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 126 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 294714 | &nbsp;&nbsp;&nbsp;&nbsp; 23310  |
| Unity Software, Inc., June Strike Price $30.00, Expires 6/06/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36736 | &nbsp;&nbsp;&nbsp;&nbsp; 700  |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 170111  |
| **Puts - Exchange-Traded 0.1%** <br>|  |  |  |
| Amedisys, Inc., January Strike Price $90.00, Expires 1/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 59 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 557491 | &nbsp;&nbsp;&nbsp;&nbsp; 12685  |
|  American Axle & Manufacturing Holdings, Inc., October Strike Price $3.00, Expires 10/17/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 343 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 148519 | &nbsp;&nbsp;&nbsp;&nbsp; 5145  |
| Applied Digital Corp., June Strike Price $5.00, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14196 | &nbsp;&nbsp;&nbsp;&nbsp; 112  |
| Applied Digital Corp., July Strike Price $5.00, Expires 7/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14196 | &nbsp;&nbsp;&nbsp;&nbsp; 378  |
| Bloom Energy Corp., January Strike Price $19.00, Expires 1/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5484 | &nbsp;&nbsp;&nbsp;&nbsp; 1245  |
| CoreWeave, Inc., June Strike Price $80.00, Expires 6/18/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 480800 | &nbsp;&nbsp;&nbsp;&nbsp; 106000  |
| Despegar.com Corp., June Strike Price $15.00, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 103 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; — | &nbsp;&nbsp;&nbsp;&nbsp; —  |
| Exact Sciences Corp., June Strike Price $50.00, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 56130 | &nbsp;&nbsp;&nbsp;&nbsp; 530  |
| Guess?, Inc., June Strike Price $10.00, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7371 | &nbsp;&nbsp;&nbsp;&nbsp; 455 |
|  H&E Equipment Services, Inc., August Strike Price $85.00, Expires 8/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 567840 | &nbsp;&nbsp;&nbsp;&nbsp; 240  |
| iShares Russell 2000 ETF, June Strike Price $202.00, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 84 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1727964 | &nbsp;&nbsp;&nbsp;&nbsp; 23604  |
| iShares Russell 2000 ETF, July Strike Price $200.00, Expires 7/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 75 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1542825 | &nbsp;&nbsp;&nbsp;&nbsp; 32175  |
| JD.com, Inc., June Strike Price $30.00, Expires 6/06/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 46004 | &nbsp;&nbsp;&nbsp;&nbsp; 98  |
| Juniper Networks, Inc., November Strike Price $33.00, Expires 11/21/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 57 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 204459 | &nbsp;&nbsp;&nbsp;&nbsp; 8322  |
|  Marriott Vacations Worldwide Corp., June Strike Price $60.00, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 45129 | &nbsp;&nbsp;&nbsp;&nbsp; 630  |
| Mirion Technologies, Inc., June Strike Price $17.50, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13489 | &nbsp;&nbsp;&nbsp;&nbsp; 210  |
| SPDR S&P 500 ETF Trust, June Strike Price $575.00, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 39 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2311569 | &nbsp;&nbsp;&nbsp;&nbsp; 17550  |
| SPDR S&P 500 ETF Trust, July Strike Price $570.00, Expires 7/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1718859 | &nbsp;&nbsp;&nbsp;&nbsp; 22330  |
|  Spirit AeroSystems Holdings Inc., June Strike Price $20.00, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 373 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1248058 | &nbsp;&nbsp;&nbsp;&nbsp; 373  |
| United States Steel Corp., January Strike Price $40.00, Expires 1/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 220 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1177660 | &nbsp;&nbsp;&nbsp;&nbsp; 9460  |
| Walgreens Boots Alliance, Inc., July Strike Price $10.00, Expires 7/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 249 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 278880 | &nbsp;&nbsp;&nbsp;&nbsp; 996  |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 242538  |
| **Puts - Over-the-Counter 0.0%<sup>†</sup>** <br>|  |  |  |
|  Adidas AG, Counterparty GSCO, September Strike Price 190.00 EUR, Expires 9/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 87157 | &nbsp;&nbsp;&nbsp;&nbsp; 3877  |
|  Telefonica SA, Counterparty GSCO, August Strike Price 4.10 EUR, Expires 8/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 283 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 150273 | &nbsp;&nbsp;&nbsp;&nbsp; 1198  |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 5075  |
| &nbsp;&nbsp;&nbsp; **Total Options Purchased** <br>**(Cost $531,365)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 417724  |
| &nbsp;&nbsp;&nbsp; **Total Investments before Short Term Investments** <br>**(Cost $249,812,826)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 255832433 |

---

<br> 26 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Shares** | **Value** |
|  | **Short Term Investments 45.4%** | **Short Term Investments 45.4%** | **Short Term Investments 45.4%** | **Short Term Investments 45.4%** |
|  | **Money Market Funds 33.8%** <br>|  |  |  |
| <sup>s,t</sup> | Dreyfus Government Cash Management, Institutional, 4.21% | United States | 129785127 | &nbsp;&nbsp;&nbsp;&nbsp; $129785127  |
| <sup>s</sup> | Fidelity Investments Money Market Government Portfolio, Institutional, 4.20% | United States | 46332411 | &nbsp;&nbsp;&nbsp;&nbsp; 46332411  |
|  | &nbsp;&nbsp;&nbsp; **Total Money Market Funds** <br>**(Cost $176,117,538)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 176117538  |
| <sup>u</sup> | &nbsp;&nbsp;&nbsp; **Investments from Cash Collateral Received for Loaned Securities** <br>**(Cost $2,829,000) 0.5%**<br>|  |  |  |
|  | **Money Market Fund 0.5%**<br>|  |  |  |
| <sup>s,v</sup> | Institutional Fiduciary Trust Money Market Portfolio, 4.08% | United States | 2829000 | &nbsp;&nbsp;&nbsp;&nbsp; 2829000 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **Principal**<br>**Amount<sup>\*</sup>** |  |
|  | **U.S. Government and Agency Securities 11.1%** <br>|  |  |  |
| <sup>w</sup> | U.S. Treasury Bill,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 6/12/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19000000 | &nbsp;&nbsp;&nbsp;&nbsp; 18977593  |
|  | &nbsp;&nbsp;&nbsp; 7/17/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6000000 | &nbsp;&nbsp;&nbsp;&nbsp; 5968370  |
|  | &nbsp;&nbsp;&nbsp; 7/22/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10000000 | &nbsp;&nbsp;&nbsp;&nbsp; 9941456  |
|  | &nbsp;&nbsp;&nbsp; 8/05/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12000000 | &nbsp;&nbsp;&nbsp;&nbsp; 11909596  |
|  | &nbsp;&nbsp;&nbsp; 8/21/25 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11000000 | &nbsp;&nbsp;&nbsp;&nbsp; 10896691  |
|  | &nbsp;&nbsp;&nbsp; **Total U.S. Government and Agency Securities** <br>**(Cost $57,686,071)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 57693706  |
|  | &nbsp;&nbsp;&nbsp; **Total Short Term Investments** <br>**(Cost $236,632,609)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 236640244  |
|  | **Total Investments (Cost $486,445,435) 94.5%** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 492472677  |
|  | **Options Written (0.0)%<sup>†</sup>** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (49519)  |
|  | **Securities Sold Short (18.1)%** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (94443641)  |
|  | **Other Assets, less Liabilities 23.6%** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; 123128640  |
|  | **Net Assets 100.0%** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; $521108157 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Number of Contracts** | **Notional**<br>**Amount<sup>#</sup>** |  |
| <sup>x</sup> | **Options Written (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | **Calls - Exchange-Traded (0.0)%<sup>†</sup>** <br>|  |  |  |
|  | Golar LNG Ltd., June Strike Price $50.00, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 87 | 362790 | &nbsp;&nbsp;&nbsp;&nbsp; (1305)  |
|  | Sable Offshore Corp., July Strike Price $30.00, Expires 7/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 83 | 242194 | &nbsp;&nbsp;&nbsp;&nbsp; (24900)  |
|  | SpringWorks Therapeutics Inc., July Strike Price $50.00, Expires 7/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 63 | 294021 | &nbsp;&nbsp;&nbsp;&nbsp;(315)  |
|  | Surgery Partners Inc., June Strike Price $25.00, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 126 | 294714 | &nbsp;&nbsp;&nbsp;&nbsp; (7686)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (34206)  |
|  | **Puts - Exchange-Traded (0.0)%<sup>†</sup>** <br>|  |  |  |
|  | Amedisys, Inc., January Strike Price $75.00, Expires 1/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 59 | 557491 | &nbsp;&nbsp;&nbsp;&nbsp; —  |
|  | H&E Equipment Services, Inc., August Strike Price $75.00, Expires 8/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 55 | 520520 | &nbsp;&nbsp;&nbsp;&nbsp;(275)  |
|  | Juniper Networks, Inc., November Strike Price $28.00, Expires 11/21/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 57 | 204459 | &nbsp;&nbsp;&nbsp;&nbsp; (3563)  |
|  | United States Steel Corp., June Strike Price $25.00, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29 | 109330 | &nbsp;&nbsp;&nbsp;&nbsp;(58)  |
|  | United States Steel Corp., June Strike Price $30.00, Expires 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 220 | 1177660 | &nbsp;&nbsp;&nbsp;&nbsp; (2420)  |
|  | United States Steel Corp., January Strike Price $30.00, Expires 1/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 220 | 1177660 | &nbsp;&nbsp;&nbsp;&nbsp; (8250)  |
|  | Walgreens Boots Alliance, Inc., July Strike Price $7.50, Expires 7/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 249 | 278880 | &nbsp;&nbsp;&nbsp;&nbsp; (747)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (15313)  |
|  | **Total Options Written (Premiums Received $88,508)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (49519) |

---

<br> franklintempleton.com Annual Report 27 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Shares** | **Value**  |
| <sup>y</sup> | **Securities Sold Short (18.1)%**  | **Securities Sold Short (18.1)%**  | **Securities Sold Short (18.1)%**  | **Securities Sold Short (18.1)%**  |
|  | **Common Stocks (8.5)%**  | **Common Stocks (8.5)%**  | **Common Stocks (8.5)%**  | **Common Stocks (8.5)%**  |
|  | **Aerospace & Defense (0.0)%<sup>†</sup>**  | **Aerospace & Defense (0.0)%<sup>†</sup>**  | **Aerospace & Defense (0.0)%<sup>†</sup>**  | **Aerospace & Defense (0.0)%<sup>†</sup>**  |
|  | Astronics Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7934 | &nbsp;&nbsp;&nbsp;&nbsp; $(247699)  |
|  | **Automobile Components (0.1)%**  | **Automobile Components (0.1)%**  | **Automobile Components (0.1)%**  | **Automobile Components (0.1)%**  |
|  | LCI Industries  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2142 | &nbsp;&nbsp;&nbsp;&nbsp; (186654)  |
|  | Mobileye Global Inc., A  | Israel | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15051 | &nbsp;&nbsp;&nbsp;&nbsp; (244579)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (431233)  |
|  | **Automobiles (0.2)%**  | **Automobiles (0.2)%**  | **Automobiles (0.2)%**  | **Automobiles (0.2)%**  |
|  | Ford Motor Co.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17029 | &nbsp;&nbsp;&nbsp;&nbsp; (176761)  |
|  | Mercedes-Benz Group AG  | Germany | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11131 | &nbsp;&nbsp;&nbsp;&nbsp; (665609)  |
|  | Stellantis NV  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14109 | &nbsp;&nbsp;&nbsp;&nbsp; (143820)  |
|  | Winnebago Industries Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 302 | &nbsp;&nbsp;&nbsp;&nbsp; (10247)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (996437)  |
|  | **Biotechnology (0.2)%**  | **Biotechnology (0.2)%**  | **Biotechnology (0.2)%**  | **Biotechnology (0.2)%**  |
|  | Alnylam Pharmaceuticals Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 440 | &nbsp;&nbsp;&nbsp;&nbsp; (134006)  |
|  | BioMarin Pharmaceutical Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 166 | &nbsp;&nbsp;&nbsp;&nbsp; (9640)  |
|  | Bridgebio Pharma Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6098 | &nbsp;&nbsp;&nbsp;&nbsp; (208857)  |
|  | Cytokinetics Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 889 | &nbsp;&nbsp;&nbsp;&nbsp; (27577)  |
|  | Dynavax Technologies Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5293 | &nbsp;&nbsp;&nbsp;&nbsp; (51818)  |
|  | Exact Sciences Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5841 | &nbsp;&nbsp;&nbsp;&nbsp; (328732)  |
|  | Halozyme Therapeutics Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 434 | &nbsp;&nbsp;&nbsp;&nbsp; (24334)  |
|  | Immunocore Holdings PLC, ADR  | United Kingdom | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 504 | &nbsp;&nbsp;&nbsp;&nbsp; (18446)  |
|  | Ionis Pharmaceuticals Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 141 | &nbsp;&nbsp;&nbsp;&nbsp; (4725)  |
|  | Mirum Pharmaceuticals Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1131 | &nbsp;&nbsp;&nbsp;&nbsp; (50284)  |
|  | Pharming Group NV  | Netherlands | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 87298 | &nbsp;&nbsp;&nbsp;&nbsp; (97452)  |
|  | PTC Therapeutics Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6279 | &nbsp;&nbsp;&nbsp;&nbsp; (304657)  |
|  | Travere Therapeutics Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 139 | &nbsp;&nbsp;&nbsp;&nbsp; (2088)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1262616)  |
|  | **Broadline Retail (0.2)%**  | **Broadline Retail (0.2)%**  | **Broadline Retail (0.2)%**  | **Broadline Retail (0.2)%**  |
|  | Alibaba Group Holding Ltd., ADR  | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8801 | &nbsp;&nbsp;&nbsp;&nbsp; (1001906)  |
|  | Etsy Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 416 | &nbsp;&nbsp;&nbsp;&nbsp; (23025)  |
|  | Groupon Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3714 | &nbsp;&nbsp;&nbsp;&nbsp; (108189)  |
|  | JD.Com Inc., ADR  | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4487 | &nbsp;&nbsp;&nbsp;&nbsp; (145424)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1278544)  |
|  | **Building Products (0.0)%<sup>†</sup>**  | **Building Products (0.0)%<sup>†</sup>**  | **Building Products (0.0)%<sup>†</sup>**  | **Building Products (0.0)%<sup>†</sup>**  |
|  | Lennox International, Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 374 | &nbsp;&nbsp;&nbsp;&nbsp; (211104)  |
|  | **Capital Markets (0.2)%**  | **Capital Markets (0.2)%**  | **Capital Markets (0.2)%**  | **Capital Markets (0.2)%**  |
|  | Ares Capital Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22148 | &nbsp;&nbsp;&nbsp;&nbsp; (488363)  |
|  | Capital Southwest Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 612 | &nbsp;&nbsp;&nbsp;&nbsp; (12742)  |
|  | Coinbase Global Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1395 | &nbsp;&nbsp;&nbsp;&nbsp; (344035)  |
|  | Hercules Capital Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 729 | &nbsp;&nbsp;&nbsp;&nbsp; (12852)  |
|  | Wisdomtree Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31011 | &nbsp;&nbsp;&nbsp;&nbsp; (292744)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1150736)  |
|  | **Chemicals (0.2)%**  | **Chemicals (0.2)%**  | **Chemicals (0.2)%**  | **Chemicals (0.2)%**  |
|  | Albemarle Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6102 | &nbsp;&nbsp;&nbsp;&nbsp; (340248)  |
|  | Dow Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5273 | &nbsp;&nbsp;&nbsp;&nbsp; (146273)  |
|  | Linde PLC  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1262 | &nbsp;&nbsp;&nbsp;&nbsp; (590086)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1076607)  |
|  | **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>** |
|  | TETRA Tech Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3623 | &nbsp;&nbsp;&nbsp;&nbsp; (126588)  |

---

<br> 28 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Shares** | **Value**  |
| <sup>y</sup> | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** |
|  | **Common Stocks (continued)** | **Common Stocks (continued)** | **Common Stocks (continued)** | **Common Stocks (continued)** |
|  | **Communications Equipment (0.1)%**  | **Communications Equipment (0.1)%**  | **Communications Equipment (0.1)%**  | **Communications Equipment (0.1)%**  |
|  | Applied Optoelectronics Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2669 | &nbsp;&nbsp;&nbsp;&nbsp; $(41156)  |
|  | Lumentum Holdings Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7856 | &nbsp;&nbsp;&nbsp;&nbsp; (567832)  |
|  | Viavi Solutions Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 113 | &nbsp;&nbsp;&nbsp;&nbsp; (1029)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (610017)  |
|  | **Consumer Finance (0.4)%**  | **Consumer Finance (0.4)%**  | **Consumer Finance (0.4)%**  | **Consumer Finance (0.4)%**  |
|  | Encore Capital Group Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8959 | &nbsp;&nbsp;&nbsp;&nbsp; (339546)  |
|  | EZCORP Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11150 | &nbsp;&nbsp;&nbsp;&nbsp; (149968)  |
|  | Qifu Technology Inc., ADR  | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 960 | &nbsp;&nbsp;&nbsp;&nbsp; (39456)  |
|  | SoFi Technologies Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 59846 | &nbsp;&nbsp;&nbsp;&nbsp; (795952)  |
|  | Upstart Holdings Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9291 | &nbsp;&nbsp;&nbsp;&nbsp; (438256)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1763178)  |
|  | **Consumer Staples Distribution & Retail (0.0)%<sup>†</sup>**  | **Consumer Staples Distribution & Retail (0.0)%<sup>†</sup>**  | **Consumer Staples Distribution & Retail (0.0)%<sup>†</sup>**  | **Consumer Staples Distribution & Retail (0.0)%<sup>†</sup>**  |
|  | The Chefs' Warehouse Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 158 | &nbsp;&nbsp;&nbsp;&nbsp; (10077)  |
|  | **Diversified Financial Services (0.2)%**  | **Diversified Financial Services (0.2)%**  | **Diversified Financial Services (0.2)%**  | **Diversified Financial Services (0.2)%**  |
|  | Affirm Holdings Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1554 | &nbsp;&nbsp;&nbsp;&nbsp; (80652)  |
|  | Repay Holdings Corp., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1548 | &nbsp;&nbsp;&nbsp;&nbsp; (7446)  |
|  | Shift4 Payments Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10506 | &nbsp;&nbsp;&nbsp;&nbsp; (995864)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1083962)  |
|  | **Diversified Telecommunication Services (0.0)%<sup>†</sup>**  | **Diversified Telecommunication Services (0.0)%<sup>†</sup>**  | **Diversified Telecommunication Services (0.0)%<sup>†</sup>**  | **Diversified Telecommunication Services (0.0)%<sup>†</sup>**  |
|  | AST Spacemobile Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2613 | &nbsp;&nbsp;&nbsp;&nbsp; (60282)  |
|  | **Electric Utilities (0.4)%**  | **Electric Utilities (0.4)%**  | **Electric Utilities (0.4)%**  | **Electric Utilities (0.4)%**  |
|  | Duke Energy Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8093 | &nbsp;&nbsp;&nbsp;&nbsp; (952708)  |
|  | Evergy Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2194 | &nbsp;&nbsp;&nbsp;&nbsp; (145704)  |
|  | PG&E Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3988 | &nbsp;&nbsp;&nbsp;&nbsp; (67317)  |
|  | The Southern Co.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7219 | &nbsp;&nbsp;&nbsp;&nbsp; (649710)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1815439)  |
|  | **Electrical Equipment (0.2)%**  | **Electrical Equipment (0.2)%**  | **Electrical Equipment (0.2)%**  | **Electrical Equipment (0.2)%**  |
|  | ABB Ltd.  | Switzerland | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13612 | &nbsp;&nbsp;&nbsp;&nbsp; (771089)  |
|  | Bloom Energy Corp., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24048 | &nbsp;&nbsp;&nbsp;&nbsp; (444166)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1215255)  |
|  | **Electronic Equipment, Instruments & Components (0.2)%**  | **Electronic Equipment, Instruments & Components (0.2)%**  | **Electronic Equipment, Instruments & Components (0.2)%**  | **Electronic Equipment, Instruments & Components (0.2)%**  |
|  | Advanced Energy Industries Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 313 | &nbsp;&nbsp;&nbsp;&nbsp; (35926)  |
|  | Faro Technologies Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2309 | &nbsp;&nbsp;&nbsp;&nbsp; (97832)  |
|  | Itron Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1042 | &nbsp;&nbsp;&nbsp;&nbsp; (120455)  |
|  | Mirion Technologies Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 224 | &nbsp;&nbsp;&nbsp;&nbsp; (4279)  |
|  | OSI Systems Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1420 | &nbsp;&nbsp;&nbsp;&nbsp; (311136)  |
|  | PAR Technology Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2386 | &nbsp;&nbsp;&nbsp;&nbsp; (156426)  |
|  | Vishay Intertechnology Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10478 | &nbsp;&nbsp;&nbsp;&nbsp; (147426)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (873480)  |
|  | **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>**  |
|  | Solaris Energy Infrastructure Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1562 | &nbsp;&nbsp;&nbsp;&nbsp; (42845)  |
|  | Transocean Ltd.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 51920 | &nbsp;&nbsp;&nbsp;&nbsp; (129281)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (172126)  |
|  | **Entertainment (0.7)%**<br>|  |  |  |
|  | Cinemark Holdings Inc.  | &nbsp;&nbsp;&nbsp;&nbsp; United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 45032 | &nbsp;&nbsp;&nbsp;&nbsp; (1520731)  |
|  | Liberty Media Corp.-Liberty Formula One, C  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 282 | &nbsp;&nbsp;&nbsp;&nbsp; (27221)  |
|  | Live Nation Entertainment Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1403 | &nbsp;&nbsp;&nbsp;&nbsp; (192477)  |
|  | Sea Ltd., ADR  | Singapore | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10468 | &nbsp;&nbsp;&nbsp;&nbsp; (1678753)  |
|  | Sphere Entertainment Co.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 764 | &nbsp;&nbsp;&nbsp;&nbsp; (28803)  |
|  | Spotify Technology SA  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 498 | &nbsp;&nbsp;&nbsp;&nbsp; (331240)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (3779225) |

---

<br> franklintempleton.com Annual Report 29 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Shares** | **Value**  |
| <sup>y</sup> | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** |
|  | **Common Stocks (continued)** | **Common Stocks (continued)** | **Common Stocks (continued)** | **Common Stocks (continued)** |
|  | **Food Products (0.1)%**<br>|  |  |  |
|  | Rogers Sugar Inc., Common Subscription Receipt  | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4837 | &nbsp;&nbsp;&nbsp;&nbsp; $(19879)  |
|  | Tyson Foods Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4430 | &nbsp;&nbsp;&nbsp;&nbsp; (248789)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (268668)  |
|  | **Gas Utilities (0.1)%**  | **Gas Utilities (0.1)%**  | **Gas Utilities (0.1)%**  | **Gas Utilities (0.1)%**  |
|  | UGI Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10685 | &nbsp;&nbsp;&nbsp;&nbsp; (385301)  |
|  | **Ground Transportation (0.1)%**  | **Ground Transportation (0.1)%**  | **Ground Transportation (0.1)%**  | **Ground Transportation (0.1)%**  |
|  | Lyft Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11086 | &nbsp;&nbsp;&nbsp;&nbsp; (168950)  |
|  | Uber Technologies Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7155 | &nbsp;&nbsp;&nbsp;&nbsp; (602165)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (771115)  |
|  | **Health Care Equipment & Supplies (0.2)%**  | **Health Care Equipment & Supplies (0.2)%**  | **Health Care Equipment & Supplies (0.2)%**  | **Health Care Equipment & Supplies (0.2)%**  |
|  | Alphatec Holdings Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16418 | &nbsp;&nbsp;&nbsp;&nbsp; (204076)  |
|  | Conmed Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 904 | &nbsp;&nbsp;&nbsp;&nbsp; (51302)  |
|  | DexCom Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 791 | &nbsp;&nbsp;&nbsp;&nbsp; (67868)  |
|  | Enovis Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 103 | &nbsp;&nbsp;&nbsp;&nbsp; (3224)  |
|  | Envista Holdings Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 166 | &nbsp;&nbsp;&nbsp;&nbsp; (3033)  |
|  | Haemonetics Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 134 | &nbsp;&nbsp;&nbsp;&nbsp; (9073)  |
|  | Integer Holdings Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 652 | &nbsp;&nbsp;&nbsp;&nbsp; (77432)  |
|  | Lantheus Holdings Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3883 | &nbsp;&nbsp;&nbsp;&nbsp; (293399)  |
|  | LivaNova PLC  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 113 | &nbsp;&nbsp;&nbsp;&nbsp; (4887)  |
|  | Merit Medical Systems Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 682 | &nbsp;&nbsp;&nbsp;&nbsp; (64810)  |
|  | Semler Scientific, Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 269 | &nbsp;&nbsp;&nbsp;&nbsp; (10760)  |
|  | Tandem Diabetes Care Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2742 | &nbsp;&nbsp;&nbsp;&nbsp; (54346)  |
|  | Transmedics Group Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2830 | &nbsp;&nbsp;&nbsp;&nbsp; (359750)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1203960)  |
|  | **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.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2237 | &nbsp;&nbsp;&nbsp;&nbsp; (90867)  |
|  | Hims & Hers Health Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3301 | &nbsp;&nbsp;&nbsp;&nbsp; (186705)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (277572)  |
|  | **Health Care REITs (0.0)%<sup>†</sup>**  | **Health Care REITs (0.0)%<sup>†</sup>**  | **Health Care REITs (0.0)%<sup>†</sup>**  | **Health Care REITs (0.0)%<sup>†</sup>**  |
|  | Ventas Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 555 | &nbsp;&nbsp;&nbsp;&nbsp; (35675)  |
|  | **Health Care Technology (0.0)%<sup>†</sup>**  | **Health Care Technology (0.0)%<sup>†</sup>**  | **Health Care Technology (0.0)%<sup>†</sup>**  | **Health Care Technology (0.0)%<sup>†</sup>**  |
|  | Evolent Health Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1864 | &nbsp;&nbsp;&nbsp;&nbsp; (13887)  |
|  | **Hotels, Restaurants & Leisure (0.5)%**  | **Hotels, Restaurants & Leisure (0.5)%**  | **Hotels, Restaurants & Leisure (0.5)%**  | **Hotels, Restaurants & Leisure (0.5)%**  |
|  | Carnival Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 47406 | &nbsp;&nbsp;&nbsp;&nbsp; (1100767)  |
|  | The Cheesecake Factory Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6377 | &nbsp;&nbsp;&nbsp;&nbsp; (351819)  |
|  | Doordash Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 430 | &nbsp;&nbsp;&nbsp;&nbsp; (89720)  |
|  | Draftkings Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 208 | &nbsp;&nbsp;&nbsp;&nbsp; (7463)  |
|  | Expedia Group Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 357 | &nbsp;&nbsp;&nbsp;&nbsp; (59530)  |
|  | Flight Centre Travel Group Ltd.  | Australia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5620 | &nbsp;&nbsp;&nbsp;&nbsp; (48149)  |
|  | H World Group Ltd., ADR  | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2412 | &nbsp;&nbsp;&nbsp;&nbsp; (85071)  |
|  | Marriott Vacations Worldwide Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 254 | &nbsp;&nbsp;&nbsp;&nbsp; (16728)  |
|  | Norwegian Cruise Line Holdings Ltd.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7049 | &nbsp;&nbsp;&nbsp;&nbsp; (124415)  |
|  | Penn Entertainment Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 650 | &nbsp;&nbsp;&nbsp;&nbsp; (9640)  |
|  | Shake Shack Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 112 | &nbsp;&nbsp;&nbsp;&nbsp; (14536)  |
|  | Trip.Com Group Ltd., ADR  | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7691 | &nbsp;&nbsp;&nbsp;&nbsp; (481841)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (2389679)  |
|  | **Household Durables (0.1)%**  | **Household Durables (0.1)%**  | **Household Durables (0.1)%**  | **Household Durables (0.1)%**  |
|  | Lennar Corp., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4329 | &nbsp;&nbsp;&nbsp;&nbsp; (459220)  |
|  | Meritage Homes Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42 | &nbsp;&nbsp;&nbsp;&nbsp; (2672)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (461892)  |

---

<br> 30 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Shares** | **Value**  |
| <sup>y</sup> | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** |
|  | **Common Stocks (continued)** | **Common Stocks (continued)** | **Common Stocks (continued)** | **Common Stocks (continued)** |
|  | **Independent Power & Renewable Electricity Producers (0.2)%**  | **Independent Power & Renewable Electricity Producers (0.2)%**  | **Independent Power & Renewable Electricity Producers (0.2)%**  | **Independent Power & Renewable Electricity Producers (0.2)%**  |
|  | The AES Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14832 | &nbsp;&nbsp;&nbsp;&nbsp; $(149655)  |
|  | Ormat Technologies Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 763 | &nbsp;&nbsp;&nbsp;&nbsp; (56714)  |
|  | Talen Energy Corp., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2199 | &nbsp;&nbsp;&nbsp;&nbsp; (536446)  |
|  | Vistra Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2108 | &nbsp;&nbsp;&nbsp;&nbsp; (338481)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1081296)  |
|  | **Industrial REITs (0.0)%<sup>†</sup>**  | **Industrial REITs (0.0)%<sup>†</sup>**  | **Industrial REITs (0.0)%<sup>†</sup>**  | **Industrial REITs (0.0)%<sup>†</sup>**  |
|  | Rexford Industrial Realty Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31 | &nbsp;&nbsp;&nbsp;&nbsp; (1092)  |
|  | **Insurance (0.0)%<sup>†</sup>**  | **Insurance (0.0)%<sup>†</sup>**  | **Insurance (0.0)%<sup>†</sup>**  | **Insurance (0.0)%<sup>†</sup>**  |
|  | Ping An Insurance Group Co. of China Ltd., H  | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28500 | &nbsp;&nbsp;&nbsp;&nbsp; (166457)  |
|  | **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>**  |
|  | Match Group Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1324 | &nbsp;&nbsp;&nbsp;&nbsp; (39640)  |
|  | Snap Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 465 | &nbsp;&nbsp;&nbsp;&nbsp; (3836)  |
|  | Trump Media & Technology Group Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 187 | &nbsp;&nbsp;&nbsp;&nbsp; (3989)  |
|  | Ziff Davis Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 488 | &nbsp;&nbsp;&nbsp;&nbsp; (15831)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (63296)  |
|  | **IT Services (0.5)%**  | **IT Services (0.5)%**  | **IT Services (0.5)%**  | **IT Services (0.5)%**  |
|  | Akamai Technologies Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5498 | &nbsp;&nbsp;&nbsp;&nbsp; (417463)  |
|  | Applied Digital Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15166 | &nbsp;&nbsp;&nbsp;&nbsp; (103584)  |
|  | Bigbear.Ai Holdings, Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31542 | &nbsp;&nbsp;&nbsp;&nbsp; (131215)  |
|  | Cloudflare Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2348 | &nbsp;&nbsp;&nbsp;&nbsp; (389510)  |
|  | Fastly Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 350 | &nbsp;&nbsp;&nbsp;&nbsp; (2548)  |
|  | Shopify Inc., A  | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1662 | &nbsp;&nbsp;&nbsp;&nbsp; (178199)  |
|  | Snowflake Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5551 | &nbsp;&nbsp;&nbsp;&nbsp; (1141674)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (2364193)  |
|  | **Leisure Products (0.1)%**  | **Leisure Products (0.1)%**  | **Leisure Products (0.1)%**  | **Leisure Products (0.1)%**  |
|  | Peloton Interactive Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37215 | &nbsp;&nbsp;&nbsp;&nbsp; (264227)  |
|  | **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 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12986 | &nbsp;&nbsp;&nbsp;&nbsp; (33763)  |
|  | Repligen Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 824 | &nbsp;&nbsp;&nbsp;&nbsp; (97290)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (131053)  |
|  | **Machinery (0.4)%**  | **Machinery (0.4)%**  | **Machinery (0.4)%**  | **Machinery (0.4)%**  |
|  | Caterpillar Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1464 | &nbsp;&nbsp;&nbsp;&nbsp; (509516)  |
|  | The Greenbrier Cos. Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5617 | &nbsp;&nbsp;&nbsp;&nbsp; (253158)  |
|  | Illinois Tool Works Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2721 | &nbsp;&nbsp;&nbsp;&nbsp; (666863)  |
|  | John Bean Technologies Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 183 | &nbsp;&nbsp;&nbsp;&nbsp; (21010)  |
|  | The Middleby Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3962 | &nbsp;&nbsp;&nbsp;&nbsp; (578967)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (2029514)  |
|  | **Media (0.1)%**  | **Media (0.1)%**  | **Media (0.1)%**  | **Media (0.1)%**  |
|  | The Interpublic Group of Cos. Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20066 | &nbsp;&nbsp;&nbsp;&nbsp; (480781)  |
|  | Sirius XM Holdings Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5114 | &nbsp;&nbsp;&nbsp;&nbsp; (110872)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (591653)  |
|  | **Metals & Mining (0.1)%**  | **Metals & Mining (0.1)%**  | **Metals & Mining (0.1)%**  | **Metals & Mining (0.1)%**  |
|  | B2gold Corp.  | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37360 | &nbsp;&nbsp;&nbsp;&nbsp; (125903)  |
|  | Fortuna Mining Corp.  | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13993 | &nbsp;&nbsp;&nbsp;&nbsp; (81859)  |
|  | Silvercorp Metals Inc.  | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18559 | &nbsp;&nbsp;&nbsp;&nbsp; (72195)  |
|  | SSR Mining Inc.  | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 348 | &nbsp;&nbsp;&nbsp;&nbsp; (4117)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (284074)  |

---

<br> franklintempleton.com Annual Report 31 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Shares** | **Value**  |
| <sup>y</sup> | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** |
|  | **Common Stocks (continued)** | **Common Stocks (continued)** | **Common Stocks (continued)** | **Common Stocks (continued)** |
|  | **Multi-Utilities (0.3)%**  | **Multi-Utilities (0.3)%**  | **Multi-Utilities (0.3)%**  | **Multi-Utilities (0.3)%**  |
|  | Ameren Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6316 | &nbsp;&nbsp;&nbsp;&nbsp; $(611894)  |
|  | CMS Energy Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 250 | &nbsp;&nbsp;&nbsp;&nbsp; (17557)  |
|  | Public Service Enterprise Group Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8327 | &nbsp;&nbsp;&nbsp;&nbsp; (674737)  |
|  | WEC Energy Group Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1497 | &nbsp;&nbsp;&nbsp;&nbsp; (160838)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1465026)  |
|  | **Oil, Gas & Consumable Fuels (0.1)%**  | **Oil, Gas & Consumable Fuels (0.1)%**  | **Oil, Gas & Consumable Fuels (0.1)%**  | **Oil, Gas & Consumable Fuels (0.1)%**  |
|  | Chevron Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1968 | &nbsp;&nbsp;&nbsp;&nbsp; (269026)  |
|  | **Passenger Airlines (0.0)%<sup>†</sup>**  | **Passenger Airlines (0.0)%<sup>†</sup>**  | **Passenger Airlines (0.0)%<sup>†</sup>**  | **Passenger Airlines (0.0)%<sup>†</sup>**  |
|  | Jetblue Airways Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4481 | &nbsp;&nbsp;&nbsp;&nbsp; (22629)  |
|  | **Pharmaceuticals (0.2)%**  | **Pharmaceuticals (0.2)%**  | **Pharmaceuticals (0.2)%**  | **Pharmaceuticals (0.2)%**  |
|  | Amphastar Pharmaceuticals Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 446 | &nbsp;&nbsp;&nbsp;&nbsp; (11467)  |
|  | ANI Pharmaceuticals Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5150 | &nbsp;&nbsp;&nbsp;&nbsp; (302408)  |
|  | Collegium Pharmaceutical Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10374 | &nbsp;&nbsp;&nbsp;&nbsp; (302298)  |
|  | Innoviva Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9229 | &nbsp;&nbsp;&nbsp;&nbsp; (180612)  |
|  | Jazz Pharmaceuticals PLC  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1130 | &nbsp;&nbsp;&nbsp;&nbsp; (122119)  |
|  | Pacira Biosciences Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3517 | &nbsp;&nbsp;&nbsp;&nbsp; (90879)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1009783)  |
|  | **Professional Services (0.1)%**  | **Professional Services (0.1)%**  | **Professional Services (0.1)%**  | **Professional Services (0.1)%**  |
|  | CSG Systems International Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 690 | &nbsp;&nbsp;&nbsp;&nbsp; (45582)  |
|  | Parsons Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7668 | &nbsp;&nbsp;&nbsp;&nbsp; (497193)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (542775)  |
|  | **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>**  |
|  | Opendoor Technologies Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 94190 | &nbsp;&nbsp;&nbsp;&nbsp; (61431)  |
|  | Storagevault Canada Inc.  | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4373 | &nbsp;&nbsp;&nbsp;&nbsp; (13192)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (74623)  |
|  | **Retail REITs (0.0)%<sup>†</sup>** | **Retail REITs (0.0)%<sup>†</sup>** | **Retail REITs (0.0)%<sup>†</sup>** | **Retail REITs (0.0)%<sup>†</sup>** |
|  | Kite Realty Group Trust  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 812 | &nbsp;&nbsp;&nbsp;&nbsp; (17961)  |
|  | **Semiconductors & Semiconductor Equipment (0.4)%**  | **Semiconductors & Semiconductor Equipment (0.4)%**  | **Semiconductors & Semiconductor Equipment (0.4)%**  | **Semiconductors & Semiconductor Equipment (0.4)%**  |
|  | Enphase Energy Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7052 | &nbsp;&nbsp;&nbsp;&nbsp; (291882)  |
|  | Impinj Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 892 | &nbsp;&nbsp;&nbsp;&nbsp; (101768)  |
|  | Macom Technology Solutions Holdings Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3179 | &nbsp;&nbsp;&nbsp;&nbsp; (386598)  |
|  | Microchip Technology Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1327 | &nbsp;&nbsp;&nbsp;&nbsp; (77019)  |
|  | MKS Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 348 | &nbsp;&nbsp;&nbsp;&nbsp; (28602)  |
|  | ON Semiconductor Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6325 | &nbsp;&nbsp;&nbsp;&nbsp; (265777)  |
|  | Penguin Solutions Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26355 | &nbsp;&nbsp;&nbsp;&nbsp; (468065)  |
|  | Semtech Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9154 | &nbsp;&nbsp;&nbsp;&nbsp; (341719)  |
|  | Veeco Instruments Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8017 | &nbsp;&nbsp;&nbsp;&nbsp; (154808)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (2116238)  |
|  | **Software (1.0)%**  | **Software (1.0)%**  | **Software (1.0)%**  | **Software (1.0)%**  |
|  | A10 Networks Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6637 | &nbsp;&nbsp;&nbsp;&nbsp; (114555)  |
|  | Alarm.Com Holdings Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 376 | &nbsp;&nbsp;&nbsp;&nbsp; (21582)  |
|  | Alkami Technology Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4961 | &nbsp;&nbsp;&nbsp;&nbsp; (142083)  |
|  | Aurora Innovation Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5408 | &nbsp;&nbsp;&nbsp;&nbsp; (32773)  |
|  | Bentley Systems Inc., B  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 951 | &nbsp;&nbsp;&nbsp;&nbsp; (45391)  |
|  | Bill Holdings Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1855 | &nbsp;&nbsp;&nbsp;&nbsp; (81026)  |
|  | Bitdeer Technologies Group  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35175 | &nbsp;&nbsp;&nbsp;&nbsp; (452351)  |
|  | Blackline Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1399 | &nbsp;&nbsp;&nbsp;&nbsp; (78246)  |
|  | Box Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7359 | &nbsp;&nbsp;&nbsp;&nbsp; (278317)  |
|  | Cleanspark Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1938 | &nbsp;&nbsp;&nbsp;&nbsp; (16725)  |
|  | Confluent Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 273 | &nbsp;&nbsp;&nbsp;&nbsp; (6287)  |

---

<br> 32 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Shares** | **Value**  |
| <sup>y</sup> | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** |
|  | **Common Stocks (continued)** | **Common Stocks (continued)** | **Common Stocks (continued)** | **Common Stocks (continued)** |
|  | **Software (continued)** | **Software (continued)** | **Software (continued)** | **Software (continued)** |
|  | Core Scientific Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21040 | &nbsp;&nbsp;&nbsp;&nbsp; $(224076)  |
|  | Datadog Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34 | &nbsp;&nbsp;&nbsp;&nbsp; (4008)  |
|  | Dropbox Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9817 | &nbsp;&nbsp;&nbsp;&nbsp; (283319)  |
|  | Five9 Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 47 | &nbsp;&nbsp;&nbsp;&nbsp; (1246)  |
|  | Guidewire Software Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 485 | &nbsp;&nbsp;&nbsp;&nbsp; (104285)  |
|  | InterDigital Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2361 | &nbsp;&nbsp;&nbsp;&nbsp; (512951)  |
|  | Marathon Digital Holdings Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1318 | &nbsp;&nbsp;&nbsp;&nbsp; (18610)  |
|  | Microstrategy Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1028 | &nbsp;&nbsp;&nbsp;&nbsp; (379394)  |
|  | Nutanix Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7022 | &nbsp;&nbsp;&nbsp;&nbsp; (538517)  |
|  | Pagaya Technologies, Ltd.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2673 | &nbsp;&nbsp;&nbsp;&nbsp; (43944) |
|  | Pagerduty Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 621 | &nbsp;&nbsp;&nbsp;&nbsp; (8855)  |
|  | Porch Group Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1342 | &nbsp;&nbsp;&nbsp;&nbsp; (12239)  |
|  | Progress Software Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4760 | &nbsp;&nbsp;&nbsp;&nbsp; (293026)  |
|  | PROS Holdings Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2045 | &nbsp;&nbsp;&nbsp;&nbsp; (35972)  |
|  | Q2 Holdings Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3755 | &nbsp;&nbsp;&nbsp;&nbsp; (328638)  |
|  | Terawulf Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1841 | &nbsp;&nbsp;&nbsp;&nbsp; (6499)  |
|  | Tyler Technologies Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 965 | &nbsp;&nbsp;&nbsp;&nbsp; (556795)  |
|  | Unity Software Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 943 | &nbsp;&nbsp;&nbsp;&nbsp; (24593)  |
|  | Varonis Systems Inc., B  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2618 | &nbsp;&nbsp;&nbsp;&nbsp; (124826)  |
|  | Vertex Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5637 | &nbsp;&nbsp;&nbsp;&nbsp; (223056)  |
|  | Workiva Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 59 | &nbsp;&nbsp;&nbsp;&nbsp; (3970)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (4998155)  |
|  | **Specialty Retail (0.1)%**  | **Specialty Retail (0.1)%**  | **Specialty Retail (0.1)%**  | **Specialty Retail (0.1)%**  |
|  | Gamestop Corp., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9966 | &nbsp;&nbsp;&nbsp;&nbsp; (296987)  |
|  | Guess? Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1171 | &nbsp;&nbsp;&nbsp;&nbsp; (12272)  |
|  | The Realreal Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3799 | &nbsp;&nbsp;&nbsp;&nbsp; (21464)  |
|  | Wayfair Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5541 | &nbsp;&nbsp;&nbsp;&nbsp; (228511)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (559234)  |
|  | **Technology Hardware, Storage & Peripherals (0.3)%** | **Technology Hardware, Storage & Peripherals (0.3)%** | **Technology Hardware, Storage & Peripherals (0.3)%** | **Technology Hardware, Storage & Peripherals (0.3)%** |
|  | Ionq Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1485 | &nbsp;&nbsp;&nbsp;&nbsp; (59905)  |
|  | Seagate Technology Holdings PLC  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3082 | &nbsp;&nbsp;&nbsp;&nbsp; (363491)  |
|  | Super Micro Computer Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5420 | &nbsp;&nbsp;&nbsp;&nbsp; (216909)  |
|  | Western Digital Corp.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14337 | &nbsp;&nbsp;&nbsp;&nbsp; (739072)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1379377)  |
|  | **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>**  |
|  | United Rentals Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 143 | &nbsp;&nbsp;&nbsp;&nbsp; (101298)  |
|  | Xometry Inc., A  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3231 | &nbsp;&nbsp;&nbsp;&nbsp; (107108)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (208406)  |
|  | **Water Utilities (0.1)%**  | **Water Utilities (0.1)%**  | **Water Utilities (0.1)%**  |  |
|  | American Water Works Co. Inc.  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3838 | &nbsp;&nbsp;&nbsp;&nbsp; (548719)  |
|  | &nbsp;&nbsp;&nbsp; **Total Common Stocks** <br>**(Proceeds $45,255,117)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (44161161)  |
|  | **Exchange Traded Funds (4.6)%**<br>|  |  |  |
|  | Health Care Select Sector SPDR Fund  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15483 | &nbsp;&nbsp;&nbsp;&nbsp; (2053665)  |
|  | Industrial Select Sector SPDR Fund  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4669 | &nbsp;&nbsp;&nbsp;&nbsp; (666827)  |
|  | iShares iBoxx High Yield Corporate Bond ETF  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5434 | &nbsp;&nbsp;&nbsp;&nbsp; (432383)  |
|  | iShares MSCI Brazil ETF  | Brazil | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14666 | &nbsp;&nbsp;&nbsp;&nbsp; (399062)  |
|  | iShares U.S. Healthcare Providers ETF  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 65390 | &nbsp;&nbsp;&nbsp;&nbsp; (3102102)  |
|  | iShares U.S. Medical Devices ETF  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 113409 | &nbsp;&nbsp;&nbsp;&nbsp; (7018883)  |
|  | iShares U.S. Pharmaceuticals ETF  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 53060 | &nbsp;&nbsp;&nbsp;&nbsp; (3453675)  |
|  | Materials Select Sector SPDR Fund  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8996 | &nbsp;&nbsp;&nbsp;&nbsp; (776715)  |

---

<br> franklintempleton.com Annual Report 33 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Shares** | **Value**  |
| <sup>y</sup> | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** | **Securities Sold Short (continued)** |
|  | **Common Stocks (continued)** | **Common Stocks (continued)** | **Common Stocks (continued)** | **Common Stocks (continued)** |
|  | **Exchange Traded Funds (continued)**<br>|  |  |  |
|  | SPDR S&P 500 ETF Trust  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 736 | &nbsp;&nbsp;&nbsp;&nbsp; $(433791)  |
|  | SPDR S&P Biotech ETF  | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 70250 | &nbsp;&nbsp;&nbsp;&nbsp; (5563097)  |
|  | &nbsp;&nbsp;&nbsp; **Total Exchange Traded Funds** <br>**(Proceeds $25,872,576)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (23900200) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **Principal Amount<sup>\*</sup>**  |  |
|  | **Convertible Bonds and Notes (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | **Passenger Airlines (0.0)%<sup>†</sup>**<br>|  |  |  |
|  | Jetblue Airways Corp., senior note, 0.50%, 4/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 66000 | &nbsp;&nbsp;&nbsp;&nbsp; (63361)  |
|  | **Semiconductors & Semiconductor Equipment (0.0)%<sup>†</sup>**  | **Semiconductors & Semiconductor Equipment (0.0)%<sup>†</sup>**  | **Semiconductors & Semiconductor Equipment (0.0)%<sup>†</sup>**  | **Semiconductors & Semiconductor Equipment (0.0)%<sup>†</sup>**  |
|  | Wolfspeed Inc., senior note, 1.75%, 5/01/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 115000 | &nbsp;&nbsp;&nbsp;&nbsp; (21850)  |
|  | &nbsp;&nbsp;&nbsp; **Total Convertible Bonds and Notes** <br>**(Proceeds $166,311)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (85211)  |
|  | **U.S. Government and Agency Securities (0.7)%**<br>|  |  |  |
| <sup>w</sup> | U.S. Treasury Bill, 2/19/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 328000 | &nbsp;&nbsp;&nbsp;&nbsp; (318444)  |
|  | U.S. Treasury Bond, 4.25%, 5/15/35 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 270000 | &nbsp;&nbsp;&nbsp;&nbsp; (266984)  |
|  | U.S. Treasury Note,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 3.875%, 3/31/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 375000 | &nbsp;&nbsp;&nbsp;&nbsp; (374612)  |
|  | &nbsp;&nbsp;&nbsp; 3.75%, 4/30/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 375000 | &nbsp;&nbsp;&nbsp;&nbsp; (373872)  |
|  | &nbsp;&nbsp;&nbsp; 3.75%, 4/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1013000 | &nbsp;&nbsp;&nbsp;&nbsp; (1009874)  |
|  | &nbsp;&nbsp;&nbsp; 3.75%, 5/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 98000 | &nbsp;&nbsp;&nbsp;&nbsp; (97713)  |
|  | &nbsp;&nbsp;&nbsp; 3.875%, 4/30/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1428000 | &nbsp;&nbsp;&nbsp;&nbsp; (1422533)  |
|  | &nbsp;&nbsp;&nbsp; **Total U.S. Government and Agency Securities** <br>**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Proceeds $3,856,357)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (3864032)  |
|  | **Corporate Bonds and Notes (3.1)%**  | **Corporate Bonds and Notes (3.1)%**  | **Corporate Bonds and Notes (3.1)%**  | **Corporate Bonds and Notes (3.1)%**  |
|  | **Banks (0.1)%**  | **Banks (0.1)%**  | **Banks (0.1)%**  | **Banks (0.1)%**  |
| <sup>g,l</sup> | Industrial & Commercial Bank of China Ltd., junior sub. note, Reg S, 3.20% to 9/24/26, FRN thereafter, Perpetual | China | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 479000 | &nbsp;&nbsp;&nbsp;&nbsp; (468968)  |
|  | **Basic Materials (0.1)%**  | **Basic Materials (0.1)%**  | **Basic Materials (0.1)%**  | **Basic Materials (0.1)%**  |
| <sup>g</sup> | Cleveland-Cliffs Inc., senior note, 144A, 7.375%, 5/01/33 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 371000 | &nbsp;&nbsp;&nbsp;&nbsp; (319033)  |
|  | **Building Materials (0.2)%**  | **Building Materials (0.2)%**  | **Building Materials (0.2)%**  | **Building Materials (0.2)%**  |
| <sup>g</sup> | &nbsp;&nbsp;&nbsp; MIWD Holdco II LLC / MIWD Finance Corp., senior note, 144A, <br>5.50%, 2/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 571000 | &nbsp;&nbsp;&nbsp;&nbsp; (527855)  |
| <sup>g</sup> | &nbsp;&nbsp;&nbsp; Smyrna Ready Mix Concrete LLC, senior secured note, 144A, <br>8.875%, 11/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 222000 | &nbsp;&nbsp;&nbsp;&nbsp; (228165)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (756020)  |
|  | **Building Products (0.1)%**  | **Building Products (0.1)%**  | **Building Products (0.1)%**  | **Building Products (0.1)%**  |
| <sup>g</sup> | &nbsp;&nbsp;&nbsp; Ameritex Holdco Intermediate LLC, senior secured note, 144A, <br>10.25%, 10/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 607000 | &nbsp;&nbsp;&nbsp;&nbsp; (644806)  |
|  | **Chemicals (0.2)%**  | **Chemicals (0.2)%**  | **Chemicals (0.2)%**  | **Chemicals (0.2)%**  |
|  | Celanese US Holdings LLC, senior note, 6.75%, 4/15/33 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 822000 | &nbsp;&nbsp;&nbsp;&nbsp; (800804)  |
| <sup>g</sup> | INEOS Finance PLC, senior secured note, 144A, 7.50%, 4/15/29 | Luxembourg | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 112000 | &nbsp;&nbsp;&nbsp;&nbsp; (110174)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (910978) |

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<br> 34 Annual Report franklintempleton.com <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Principal Amount<sup>\*</sup>**  | **Value**  |
| <sup>y</sup> | **Securities Sold Short (continued)**  | **Securities Sold Short (continued)**  | **Securities Sold Short (continued)**  | **Securities Sold Short (continued)**  |
|  | **Corporate Bonds and Notes (continued)**  | **Corporate Bonds and Notes (continued)**  | **Corporate Bonds and Notes (continued)**  | **Corporate Bonds and Notes (continued)**  |
|  | **Communications Equipment** <br>|  |  |  |
| <sup>g</sup> | Equipmentshare.Com Inc., 144A,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; secured note, 8.625%, 5/15/32 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 190000 | &nbsp;&nbsp;&nbsp;&nbsp; $(199481)  |
|  | &nbsp;&nbsp;&nbsp; senior secured note, 9.00%, 5/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 664000 | &nbsp;&nbsp;&nbsp;&nbsp; (690152)  |
|  | &nbsp;&nbsp;&nbsp; senior secured note, 8.00%, 3/15/33 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 390000 | &nbsp;&nbsp;&nbsp;&nbsp; (401018)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1290651)  |
|  | **Consumer Cyclical (0.1)%**  | **Consumer Cyclical (0.1)%**  | **Consumer Cyclical (0.1)%**  | **Consumer Cyclical (0.1)%**  |
| <sup>g</sup> | Sabre Glbl Inc., senior secured note, 144A, 10.75%, 11/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 475000 | &nbsp;&nbsp;&nbsp;&nbsp; (486281)  |
|  | **Diversified Financial Services (0.6)%**  | **Diversified Financial Services (0.6)%**  | **Diversified Financial Services (0.6)%**  | **Diversified Financial Services (0.6)%**  |
| <sup>g</sup> | LBM Acquisition LLC, senior note, 144A, 6.25%, 1/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 800000 | &nbsp;&nbsp;&nbsp;&nbsp; (643244)  |
| <sup>g</sup> | Medline Borrower LP, senior note, 144A, 5.25%, 10/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 678000 | &nbsp;&nbsp;&nbsp;&nbsp; (663100)  |
|  | Onemain Finance Corp., senior note, 7.125%, 11/15/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 157000 | &nbsp;&nbsp;&nbsp;&nbsp; (159865)  |
| <sup>g</sup> | RFNA LP, senior note, 144A, 7.875%, 2/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 270000 | &nbsp;&nbsp;&nbsp;&nbsp; (270872)  |
| <sup>g</sup> | &nbsp;&nbsp;&nbsp; Wash Multifamily Acquisition Inc., <br>senior secured note, 144A, 5.75%, 4/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1131000 | &nbsp;&nbsp;&nbsp;&nbsp; (1129441)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (2866522)  |
|  | **Electric Utilities (0.5)%**  | **Electric Utilities (0.5)%**  | **Electric Utilities (0.5)%**  | **Electric Utilities (0.5)%**  |
|  | Edison International,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; junior sub. bond, 8.125%, 6/15/53 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 471000 | &nbsp;&nbsp;&nbsp;&nbsp; (466491)  |
|  | &nbsp;&nbsp;&nbsp; junior sub. bond, 7.875%, 6/15/54 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 629000 | &nbsp;&nbsp;&nbsp;&nbsp; (606748)  |
|  | &nbsp;&nbsp;&nbsp; senior note, 6.95%, 11/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 177000 | &nbsp;&nbsp;&nbsp;&nbsp; (183724)  |
|  | &nbsp;&nbsp;&nbsp; senior note, 6.25%, 3/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 211000 | &nbsp;&nbsp;&nbsp;&nbsp; (213847)  |
|  | PG&E Corp.,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; junior sub. bond, 7.375%, 3/15/55 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 873000 | &nbsp;&nbsp;&nbsp;&nbsp; (857037)  |
|  | &nbsp;&nbsp;&nbsp; senior secured bond, 5.25%, 7/01/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 118000 | &nbsp;&nbsp;&nbsp;&nbsp; (114584)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (2442431)  |
|  | **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)%**  |
| <sup>g</sup> | &nbsp;&nbsp;&nbsp; Hat Holdings I LLC / Hat Holdings II LLC, senior note, 144A, <br>3.375%, 6/15/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 378000 | &nbsp;&nbsp;&nbsp;&nbsp; (368218)  |
|  | **Health Care Providers & Services (0.1)%**  | **Health Care Providers & Services (0.1)%**  | **Health Care Providers & Services (0.1)%**  | **Health Care Providers & Services (0.1)%**  |
| <sup>g</sup> | &nbsp;&nbsp;&nbsp; Prime Healthcare Services Inc., senior secured note, 144A, <br>9.375%, 9/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 420000 | &nbsp;&nbsp;&nbsp;&nbsp; (426978)  |
|  | **Industrial Conglomerates (0.0)%<sup>†</sup>**  | **Industrial Conglomerates (0.0)%<sup>†</sup>**  | **Industrial Conglomerates (0.0)%<sup>†</sup>**  | **Industrial Conglomerates (0.0)%<sup>†</sup>**  |
|  | 3M Co., senior bond, 2.25%, 9/19/26 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 220000 | &nbsp;&nbsp;&nbsp;&nbsp; (214005)  |
|  | **Media (0.1)%**  | **Media (0.1)%**  | **Media (0.1)%**  | **Media (0.1)%**  |
| <sup>g</sup> | Univision Communications Inc., senior secured note, 144A,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; 4.50%, 5/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 303000 | &nbsp;&nbsp;&nbsp;&nbsp; (269249)  |
|  | &nbsp;&nbsp;&nbsp; 7.375%, 6/30/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 270000 | &nbsp;&nbsp;&nbsp;&nbsp; (252601)  |
|  | &nbsp;&nbsp;&nbsp; 8.50%, 7/31/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 47000 | &nbsp;&nbsp;&nbsp;&nbsp; (45135)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (566985)  |
|  | **Oil, Gas & Consumable Fuels (0.3)%**  | **Oil, Gas & Consumable Fuels (0.3)%**  | **Oil, Gas & Consumable Fuels (0.3)%**  | **Oil, Gas & Consumable Fuels (0.3)%**  |
| <sup>g</sup> | Helmerich & Payne Inc., 144A,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; senior bond, 5.50%, 12/01/34 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 390000 | &nbsp;&nbsp;&nbsp;&nbsp; (344978)  |
|  | &nbsp;&nbsp;&nbsp; senior note, 4.85%, 12/01/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 496000 | &nbsp;&nbsp;&nbsp;&nbsp; (468506)  |
| <sup>g</sup> | Nabors Industries Ltd., senior note, 144A, 7.50%, 1/15/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 312000 | &nbsp;&nbsp;&nbsp;&nbsp; (260920)  |
| <sup>g</sup> | Saturn Oil & Gas Inc., senior secured note, 144A, 9.625%, 6/15/29 | Canada | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 447000 | &nbsp;&nbsp;&nbsp;&nbsp; (409721)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1484125)  |
|  | **Packaging & Containers (0.1)%**  | **Packaging & Containers (0.1)%**  | **Packaging & Containers (0.1)%**  | **Packaging & Containers (0.1)%**  |
| <sup>g</sup> | LABL Inc., senior secured note, 144A, 8.625%, 10/01/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 778000 | &nbsp;&nbsp;&nbsp;&nbsp; (644773)  |

---

<br> franklintempleton.com Annual Report 35 <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Country** | **Principal Amount<sup>\*</sup>**  | **Value**  |
| <sup>y</sup> | **Securities Sold Short (continued)**  | **Securities Sold Short (continued)**  | **Securities Sold Short (continued)**  | **Securities Sold Short (continued)**  |
|  | **Corporate Bonds and Notes (continued)**  | **Corporate Bonds and Notes (continued)**  | **Corporate Bonds and Notes (continued)**  | **Corporate Bonds and Notes (continued)**  |
|  | **Pharmaceuticals (0.3)%**  | **Pharmaceuticals (0.3)%**  | **Pharmaceuticals (0.3)%**  | **Pharmaceuticals (0.3)%**  |
| <sup>g</sup> | Organon & Co. / Organon Foreign Debt Co.-Issuer BV, senior bond, 144A, 5.125%, 4/30/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1626000 | &nbsp;&nbsp;&nbsp;&nbsp; $(1367410)  |
|  | **Specialty Retail (0.2)%**  | **Specialty Retail (0.2)%**  | **Specialty Retail (0.2)%**  | **Specialty Retail (0.2)%**  |
| <sup>g</sup> | Victra Holdings LLC / Victra Finance Corp., senior secured note, 144A, 8.75%, 9/15/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 988000 | &nbsp;&nbsp;&nbsp;&nbsp; (1010002)  |
|  | &nbsp;&nbsp;&nbsp; **Total Corporate Bonds and Notes** <br>**(Proceeds $16,512,372)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (16268186)  |
| <sup>o,p</sup> | **Senior Floating Rate Interests (1.2)%**  | **Senior Floating Rate Interests (1.2)%**  | **Senior Floating Rate Interests (1.2)%**  | **Senior Floating Rate Interests (1.2)%**  |
|  | **Automobile Components (0.5)%**  | **Automobile Components (0.5)%**  | **Automobile Components (0.5)%**  | **Automobile Components (0.5)%**  |
| <sup>q</sup> | First Brands Group LLC, First Lien Term Loan, 10.59%, (3-Month SOFR + 5.00%), 3/30/27 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2304605 | &nbsp;&nbsp;&nbsp;&nbsp; (2233669)  |
|  | **Building Products (0.0)%<sup>†</sup>**  | **Building Products (0.0)%<sup>†</sup>**  | **Building Products (0.0)%<sup>†</sup>**  | **Building Products (0.0)%<sup>†</sup>**  |
|  | Cornerstone Building Brands, Inc., Term Loan B, 7.679%, (1-Month SOFR + 3.25%), 4/12/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 72845 | &nbsp;&nbsp;&nbsp;&nbsp; (65227)  |
|  | **Diversified Telecommunication Services (0.0)%<sup>†</sup>** | **Diversified Telecommunication Services (0.0)%<sup>†</sup>** | **Diversified Telecommunication Services (0.0)%<sup>†</sup>** | **Diversified Telecommunication Services (0.0)%<sup>†</sup>** |
| <sup>q</sup> | Liberty Communications of Puerto Rico LLC, Term Loan B, 8.193%, (SOFR + 3.75%), 10/16/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 219061 | &nbsp;&nbsp;&nbsp;&nbsp; (162333)  |
|  | **Entertainment (0.0)%<sup>†</sup>** | **Entertainment (0.0)%<sup>†</sup>** | **Entertainment (0.0)%<sup>†</sup>** | **Entertainment (0.0)%<sup>†</sup>** |
|  | Stubhub, Term Loan B, 9.077%, (SOFR + 4.75%), 3/15/30 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 247896 | &nbsp;&nbsp;&nbsp;&nbsp; (242473)  |
|  | **Health Care Providers & Services (0.2)%** | **Health Care Providers & Services (0.2)%** | **Health Care Providers & Services (0.2)%** | **Health Care Providers & Services (0.2)%** |
| <sup>q</sup> | Petco Health & Wellness Co. Inc., First Lien Term Loan, 7.811%, (3-Month SOFR + 3.51%), 3/03/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 960764 | &nbsp;&nbsp;&nbsp;&nbsp; (894712)  |
|  | **IT Services (0.2)%** | **IT Services (0.2)%** | **IT Services (0.2)%** | **IT Services (0.2)%** |
|  | e2open, Bank Debt Term Loan, 7.938%, (SOFR + 3.50%), 2/04/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 331953 | &nbsp;&nbsp;&nbsp;&nbsp; (333648)  |
| <sup>q</sup> | Idera, Inc., Bank Debt Term Loan, 7.791%, (SOFR + 3.50%), 3/02/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 406841 | &nbsp;&nbsp;&nbsp;&nbsp; (387518)  |
|  | SonicWall, Bank Debt Term Loan, 9.329%, (SOFR + 5.00%), 5/18/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 381301 | &nbsp;&nbsp;&nbsp;&nbsp; (375206)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (1096372)  |
|  | **Media (0.1)%** | **Media (0.1)%** | **Media (0.1)%** | **Media (0.1)%** |
|  | MH Sub I LLC, Bank Debt Term Loan,<br>|  |  |  |
|  | &nbsp;&nbsp;&nbsp; <sup>q</sup>9.581%, (1-Month SOFR + 4.25%), 5/03/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 55477 | &nbsp;&nbsp;&nbsp;&nbsp; (53466)  |
|  | &nbsp;&nbsp;&nbsp; 8.575%, (SOFR + 4.25%), 12/31/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 491966 | &nbsp;&nbsp;&nbsp;&nbsp; (450948)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (504414)  |
|  | **Professional Services (0.0)%<sup>†</sup>**  | **Professional Services (0.0)%<sup>†</sup>**  | **Professional Services (0.0)%<sup>†</sup>**  | **Professional Services (0.0)%<sup>†</sup>**  |
|  | &nbsp;&nbsp;&nbsp; CoreLogic Inc., Term Loan B, 8.187%, (1-Month SOFR + 3.50%), <br>6/02/28 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 72759 | &nbsp;&nbsp;&nbsp;&nbsp; (71877) |
|  | **Software (0.1)%**  | **Software (0.1)%**  | **Software (0.1)%**  | **Software (0.1)%**  |
|  | Perforce, Term Loan B, 9.077%, (SOFR + 4.75%), 7/02/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 346390 | &nbsp;&nbsp;&nbsp;&nbsp; (337124)  |
|  | Tungsten Automation, Bank Debt Term Loan, 9.641%, (SOFR + 5.25%), 7/20/29 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 251554 | &nbsp;&nbsp;&nbsp;&nbsp; (219750)  |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (556874)  |
|  | **Specialty Retail (0.1)%**  | **Specialty Retail (0.1)%**  | **Specialty Retail (0.1)%**  | **Specialty Retail (0.1)%**  |
| <sup>q</sup> | Harbor Freight Tools, Term Loan B, 6.577%, (SOFR + 2.50%), 6/11/31 | United States | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 347872 | &nbsp;&nbsp;&nbsp;&nbsp; (336900)  |
|  | &nbsp;&nbsp;&nbsp; **Total Senior Floating Rate Interests** <br>**(Proceeds $6,212,439)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (6164851)  |
|  | &nbsp;&nbsp;&nbsp; **Total Securities Sold Short** <br>**(Proceeds $97,875,172)** |  |  | &nbsp;&nbsp;&nbsp;&nbsp; $(94443641) |

---

<br> 36 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

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

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

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

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

<sup>b</sup> A portion or all of the security has been segregated as collateral for securities sold short, open swap contracts, open forward exchange contracts, open futures contracts and/or open written option contracts. At May 31, 2025, the aggregate value of these securities and/or cash pledged amounted to $129,572,948, representing 24.9% of net assets.

<sup>c</sup> A portion or all of the security is on loan at May 31, 2025. See Note 1(f).

<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> Fair valued using significant unobservable inputs. See Note 13 regarding fair value measurements.

<sup>f</sup> Variable interest entity (VIE). See Note 8 regarding investments made through a VIE structure. At May 31, 2025, the aggregate value of these securities was $3,534,138, representing less than 0.7% of net assets.

<sup>g</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 May 31, 2025, the net value of these securities was $41,048,179, representing 7.9% of net assets.

<sup>h</sup> See Note 8 regarding investments in Russian securities.

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

<sup>j</sup> Defaulted security or security for which income has been deemed uncollectible. See Note 7.

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

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

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

<sup>n</sup> See Note 9 regarding restricted securities.

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

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

<sup>q</sup> See Note 10 regarding unfunded loan commitments.

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

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

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

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

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

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

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

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

<br> franklintempleton.com Annual Report 37 <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)**

At May 31, 2025, the Fund had the following futures contracts outstanding. See Note 1(d).

**Futures Contracts** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Description** | **Type** | **Number of** <br>**Contracts** | **Notional** <br>**Amount<sup>\*</sup>** | **Expiration** <br>**Date** | **Value/Unrealized** <br>**Appreciation** <br>(Depreciation)  |
| **Commodity Contracts<sup>a</sup>**<br>|  |  |  |  |  |
| Aluminum | Long | &nbsp;&nbsp;&nbsp;&nbsp; 11 | $670428 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $(50400)  |
| Aluminum | Short | &nbsp;&nbsp;&nbsp;&nbsp; 11 | 670428 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4220  |
| Aluminum | Long | &nbsp;&nbsp;&nbsp;&nbsp; 6 | 367016 | &nbsp;&nbsp;&nbsp; 9/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6872)  |
| Aluminum | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 61169 | &nbsp;&nbsp;&nbsp; 9/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(35)  |
| Brent Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 12 | 753360 | &nbsp;&nbsp;&nbsp; 6/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (20522)  |
| Brent Crude Oil | Short | &nbsp;&nbsp;&nbsp;&nbsp; 20 | 1255600 | &nbsp;&nbsp;&nbsp; 6/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 33258  |
| Brent Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 186150 | &nbsp;&nbsp;&nbsp; 7/31/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4483)  |
| Canola | Long | &nbsp;&nbsp;&nbsp;&nbsp; 11 | 113996 | &nbsp;&nbsp;&nbsp; 7/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5528  |
| Canola | Long | &nbsp;&nbsp;&nbsp;&nbsp; 10 | 100353 | &nbsp;&nbsp;&nbsp; 11/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4403  |
| Cattle Feeder | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 149412 | &nbsp;&nbsp;&nbsp; 8/28/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4127)  |
| Cocoa | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 88130 | &nbsp;&nbsp;&nbsp; 7/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (14654)  |
| Cocoa | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 283950 | &nbsp;&nbsp;&nbsp; 7/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (27656)  |
| Cocoa | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 86945 | &nbsp;&nbsp;&nbsp; 9/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 793  |
| Cocoa | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 86945 | &nbsp;&nbsp;&nbsp; 9/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3699)  |
| Cocoa | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 85540 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11268  |
| Coffee | Long | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 256838 | &nbsp;&nbsp;&nbsp; 7/21/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (12568)  |
| Coffee | Short | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 642094 | &nbsp;&nbsp;&nbsp; 7/21/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37826  |
| Coffee | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 127425 | &nbsp;&nbsp;&nbsp; 9/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16216  |
| Copper | Long | &nbsp;&nbsp;&nbsp;&nbsp; 10 | 2388458 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20012  |
| Copper | Short | &nbsp;&nbsp;&nbsp;&nbsp; 10 | 2388458 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (21368)  |
| Copper | Short | &nbsp;&nbsp;&nbsp;&nbsp; 10 | 1169375 | &nbsp;&nbsp;&nbsp; 7/29/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40521  |
| Copper | Long | &nbsp;&nbsp;&nbsp;&nbsp; 6 | 1423959 | &nbsp;&nbsp;&nbsp; 9/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2604)  |
| Copper | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 118237 | &nbsp;&nbsp;&nbsp; 9/26/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(889)  |
| Corn | Short | &nbsp;&nbsp;&nbsp;&nbsp; 68 | 1509600 | &nbsp;&nbsp;&nbsp; 7/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 84882  |
| Corn | Short | &nbsp;&nbsp;&nbsp;&nbsp; 9 | 190462 | &nbsp;&nbsp;&nbsp; 9/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11818  |
| Corn | Short | &nbsp;&nbsp;&nbsp;&nbsp; 25 | 548125 | &nbsp;&nbsp;&nbsp; 12/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13070  |
| Corn | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 45400 | &nbsp;&nbsp;&nbsp; 3/13/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 308  |
| Corn | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 69450 | &nbsp;&nbsp;&nbsp; 5/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2143  |
| Corn | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 23425 | &nbsp;&nbsp;&nbsp; 7/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(115)  |
| Cotton | Long | &nbsp;&nbsp;&nbsp;&nbsp; 7 | 227710 | &nbsp;&nbsp;&nbsp; 7/09/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8691)  |
| Cotton | Short | &nbsp;&nbsp;&nbsp;&nbsp; 7 | 227710 | &nbsp;&nbsp;&nbsp; 7/09/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6564  |
| Cotton | Long | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 101625 | &nbsp;&nbsp;&nbsp; 12/08/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1452)  |
| ECX Emission | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 79947 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11922  |
| Gasoline | Long | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 169268 | &nbsp;&nbsp;&nbsp; 6/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5052)  |
| Gasoline | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 169268 | &nbsp;&nbsp;&nbsp; 6/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5296  |
| Gasoline | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 83488 | &nbsp;&nbsp;&nbsp; 7/31/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2177)  |
| Gasoline | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 81913 | &nbsp;&nbsp;&nbsp; 8/29/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1148)  |
| Gold 100 Oz | Long | &nbsp;&nbsp;&nbsp;&nbsp; 14 | 4641560 | &nbsp;&nbsp;&nbsp; 8/27/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26975  |
| Hard Red Winter Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 60 | 1599750 | &nbsp;&nbsp;&nbsp; 7/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 143920  |
| Hard Red Winter Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 19 | 519650 | &nbsp;&nbsp;&nbsp; 9/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13871  |
| Hard Red Winter Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 9 | 255937 | &nbsp;&nbsp;&nbsp; 12/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9593  |
| Hard Red Winter Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 58725 | &nbsp;&nbsp;&nbsp; 3/13/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(279)  |
| Lean Hogs | Short | &nbsp;&nbsp;&nbsp;&nbsp; 6 | 243180 | &nbsp;&nbsp;&nbsp; 6/13/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (15353)  |
| Lean Hogs | Short | &nbsp;&nbsp;&nbsp;&nbsp; 20 | 839400 | &nbsp;&nbsp;&nbsp; 7/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (41604)  |
| Lean Hogs | Short | &nbsp;&nbsp;&nbsp;&nbsp; 10 | 420100 | &nbsp;&nbsp;&nbsp; 8/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (22852)  |
| Lean Hogs | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 71140 | &nbsp;&nbsp;&nbsp; 10/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4354)  |
| Live Cattle | Short | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 344760 | &nbsp;&nbsp;&nbsp; 6/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (18789)  |
| Live Cattle | Short | &nbsp;&nbsp;&nbsp;&nbsp; 14 | 1172360 | &nbsp;&nbsp;&nbsp; 8/29/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (27961)  |
| Live Cattle | Short | &nbsp;&nbsp;&nbsp;&nbsp; 6 | 497760 | &nbsp;&nbsp;&nbsp; 10/31/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (20873)  |
| Live Cattle | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 249810 | &nbsp;&nbsp;&nbsp; 12/31/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (21337)  |
| Low Sulphur Gas Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 239600 | &nbsp;&nbsp;&nbsp; 6/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5296  |
| Low Sulphur Gas Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 7 | 413525 | &nbsp;&nbsp;&nbsp; 7/10/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (11657)  |
| Low Sulphur Gas Oil | Short | &nbsp;&nbsp;&nbsp;&nbsp; 12 | 708900 | &nbsp;&nbsp;&nbsp; 7/10/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27931  |
| Low Sulphur Gas Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 176475 | &nbsp;&nbsp;&nbsp; 8/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5653)  |

---

<br> 38 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Futures Contracts (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Description** | **Type** | **Number of** <br>**Contracts** | **Notional** <br>**Amount<sup>\*</sup>** | **Expiration** <br>**Date** | **Value/Unrealized** <br>**Appreciation** <br>(Depreciation)  |
| **Commodity Contracts<sup>a</sup> (continued)**<br>|  |  |  |  |  |
| Milling Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 40 | $455884 | &nbsp;&nbsp;&nbsp; 9/10/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $48444  |
| Milling Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 47 | 566349 | &nbsp;&nbsp;&nbsp; 12/10/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36506  |
| Milling Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 7 | 87430 | &nbsp;&nbsp;&nbsp; 3/10/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4114  |
| Milling Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 12760 | &nbsp;&nbsp;&nbsp; 5/11/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 44  |
| Natural Gas | Short | &nbsp;&nbsp;&nbsp;&nbsp; 21 | 723870 | &nbsp;&nbsp;&nbsp; 6/26/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 57841  |
| Natural Gas | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 70460 | &nbsp;&nbsp;&nbsp; 7/29/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7307  |
| Natural Gas | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 105240 | &nbsp;&nbsp;&nbsp; 8/27/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5795  |
| Natural Gas | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 72160 | &nbsp;&nbsp;&nbsp; 9/26/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2277  |
| NY Harbor Ultra Low Sulfur Diesel | Long | &nbsp;&nbsp;&nbsp;&nbsp; 11 | 926495 | &nbsp;&nbsp;&nbsp; 6/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (37032)  |
| NY Harbor Ultra Low Sulfur Diesel | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 83878 | &nbsp;&nbsp;&nbsp; 7/31/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3206)  |
| NY Harbor Ultra Low Sulfur Diesel | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 84218 | &nbsp;&nbsp;&nbsp; 8/29/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2328)  |
| Palladium | Long | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 387440 | &nbsp;&nbsp;&nbsp; 9/26/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7397)  |
| Platinum | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 52745 | &nbsp;&nbsp;&nbsp; 7/29/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4878  |
| Rapeseed | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 26939 | &nbsp;&nbsp;&nbsp; 7/31/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(268)  |
| Rapeseed | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 54473 | &nbsp;&nbsp;&nbsp; 10/31/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(836)  |
| Rapeseed | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 27364 | &nbsp;&nbsp;&nbsp; 1/30/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(100)  |
| Robusta Coffee | Long | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 225500 | &nbsp;&nbsp;&nbsp; 7/25/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (34936)  |
| Robusta Coffee | Long | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 178520 | &nbsp;&nbsp;&nbsp; 9/24/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (24835)  |
| Silver | Long | &nbsp;&nbsp;&nbsp;&nbsp; 7 | 1156015 | &nbsp;&nbsp;&nbsp; 7/29/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (9636)  |
| Silver | Short | &nbsp;&nbsp;&nbsp;&nbsp; 35 | 5780075 | &nbsp;&nbsp;&nbsp; 7/29/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40591  |
| Soybean Meal | Short | &nbsp;&nbsp;&nbsp;&nbsp; 25 | 740750 | &nbsp;&nbsp;&nbsp; 7/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21527  |
| Soybean Meal | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 90000 | &nbsp;&nbsp;&nbsp; 8/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(257)  |
| Soybean Meal | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 90870 | &nbsp;&nbsp;&nbsp; 9/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1393  |
| Soybean Meal | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 30440 | &nbsp;&nbsp;&nbsp; 10/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1398  |
| Soybean Meal | Short | &nbsp;&nbsp;&nbsp;&nbsp; 6 | 185220 | &nbsp;&nbsp;&nbsp; 12/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1697  |
| Soybean Meal | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 31120 | &nbsp;&nbsp;&nbsp; 1/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(542)  |
| Soybean Oil | Short | &nbsp;&nbsp;&nbsp;&nbsp; 18 | 506412 | &nbsp;&nbsp;&nbsp; 7/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13334  |
| Soybean Oil | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 56532 | &nbsp;&nbsp;&nbsp; 8/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68  |
| Soybean Oil | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 28386 | &nbsp;&nbsp;&nbsp; 9/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1312  |
| Soybean Oil | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 56880 | &nbsp;&nbsp;&nbsp; 10/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2660  |
| Soybean Oil | Short | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 114360 | &nbsp;&nbsp;&nbsp; 12/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 633  |
| Soybean Oil | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 28650 | &nbsp;&nbsp;&nbsp; 1/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1192  |
| Soybeans | Short | &nbsp;&nbsp;&nbsp;&nbsp; 48 | 2500200 | &nbsp;&nbsp;&nbsp; 7/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12103  |
| Soybeans | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 103675 | &nbsp;&nbsp;&nbsp; 8/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1283  |
| Soybeans | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 50900 | &nbsp;&nbsp;&nbsp; 9/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 785  |
| Soybeans | Short | &nbsp;&nbsp;&nbsp;&nbsp; 13 | 667387 | &nbsp;&nbsp;&nbsp; 11/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3891)  |
| Soybeans | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 52037 | &nbsp;&nbsp;&nbsp; 1/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 98  |
| Sugar | Long | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 76384 | &nbsp;&nbsp;&nbsp; 6/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(112)  |
| Sugar | Short | &nbsp;&nbsp;&nbsp;&nbsp; 50 | 954800 | &nbsp;&nbsp;&nbsp; 6/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 54976  |
| Sugar | Short | &nbsp;&nbsp;&nbsp;&nbsp; 14 | 270166 | &nbsp;&nbsp;&nbsp; 9/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13844  |
| Sugar | Short | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 79251 | &nbsp;&nbsp;&nbsp; 2/27/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1659  |
| UK Natural Gas | Short | &nbsp;&nbsp;&nbsp;&nbsp; 10 | 332556 | &nbsp;&nbsp;&nbsp; 6/27/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20797  |
| Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 42 | 1121400 | &nbsp;&nbsp;&nbsp; 7/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49843  |
| Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 137063 | &nbsp;&nbsp;&nbsp; 9/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 789  |
| Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 114200 | &nbsp;&nbsp;&nbsp; 12/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5366  |
| Wheat | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 29550 | &nbsp;&nbsp;&nbsp; 3/13/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 498  |
| White Sugar | Short | &nbsp;&nbsp;&nbsp;&nbsp; 12 | 285660 | &nbsp;&nbsp;&nbsp; 7/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26416  |
| White Sugar | Short | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 118250 | &nbsp;&nbsp;&nbsp; 9/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9004  |
| White Sugar | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 23715 | &nbsp;&nbsp;&nbsp; 11/14/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 684  |
| WTI Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 121580 | &nbsp;&nbsp;&nbsp; 6/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2062)  |
| WTI Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 15 | 911850 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (21934)  |
| WTI Crude Oil | Short | &nbsp;&nbsp;&nbsp;&nbsp; 13 | 790270 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13311  |
| WTI Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 59790 | &nbsp;&nbsp;&nbsp; 7/21/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(781)  |
| WTI Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 239160 | &nbsp;&nbsp;&nbsp; 7/22/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3716)  |
| WTI Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 59000 | &nbsp;&nbsp;&nbsp; 8/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1651)  |
| WTI Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 118000 | &nbsp;&nbsp;&nbsp; 8/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1773)  |

---

<br> franklintempleton.com Annual Report 39 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Futures Contracts (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Description** | **Type** | **Number of** <br>**Contracts** | **Notional** <br>**Amount<sup>\*</sup>** | **Expiration** <br>**Date** | **Value/Unrealized** <br>**Appreciation** <br>(Depreciation)  |
| **Commodity Contracts<sup>a</sup> (continued)**<br>|  |  |  |  |  |
| WTI Crude Oil | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | $58460 | &nbsp;&nbsp;&nbsp; 9/22/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $(2712)  |
| Zinc | Long | &nbsp;&nbsp;&nbsp;&nbsp; 6 | 390879 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (36826)  |
| Zinc | Short | &nbsp;&nbsp;&nbsp;&nbsp; 6 | 390879 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7145  |
| Zinc | Long | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 196833 | &nbsp;&nbsp;&nbsp; 9/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5622)  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 427569  |
| **Currency Contracts<sup>a</sup>**<br>|  |  |  |  |  |
| Australian Dollar Index | Long | &nbsp;&nbsp;&nbsp;&nbsp; 81 | 5219235 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 117204  |
| British Pound Index | Long | &nbsp;&nbsp;&nbsp;&nbsp; 230 | 19363125 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 725411  |
| Canadian Dollar Index | Short | &nbsp;&nbsp;&nbsp;&nbsp; 278 | 20281490 | &nbsp;&nbsp;&nbsp; 6/17/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (852711)  |
| EUR/CZK | Long | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 728542 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3861  |
| EUR/HUF | Long | &nbsp;&nbsp;&nbsp;&nbsp; 15 | 1262769 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4321)  |
| EUR/NOK | Long | &nbsp;&nbsp;&nbsp;&nbsp; 13 | 1846699 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (29879)  |
| EUR/PLN | Long | &nbsp;&nbsp;&nbsp;&nbsp; 15 | 2000380 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (14231)  |
| EUR/SEK | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 141925 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 484  |
| Euro Index | Long | &nbsp;&nbsp;&nbsp;&nbsp; 44 | 6253500 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 231665  |
| ICE U.S. Dollar Index | Long | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 297777 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3714)  |
| Japanese Yen Index | Long | &nbsp;&nbsp;&nbsp;&nbsp; 63 | 5482181 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 125086  |
| Mexican Peso Index | Long | &nbsp;&nbsp;&nbsp;&nbsp; 209 | 5381750 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 280513  |
| New Israeli Shekel Index | Short | &nbsp;&nbsp;&nbsp;&nbsp; 5 | 1422800 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (37684)  |
| New Zealand Dollar Index | Long | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 179310 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(45)  |
| South African Rand Index | Long | &nbsp;&nbsp;&nbsp;&nbsp; 32 | 890000 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 54770  |
| Swiss Franc Index | Short | &nbsp;&nbsp;&nbsp;&nbsp; 93 | 14162738 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (778444)  |
| U.S. Dollar Index | Long | &nbsp;&nbsp;&nbsp;&nbsp; 279 | 2784742 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (41322)  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (223357)  |
| **Equity Contracts**<br>|  |  |  |  |  |
| CAC 40 10 Euro Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 8 | 703616 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7297)  |
| CAC 40 10 Euro Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 15 | 1319280 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6802  |
| CBOE Volatility Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 24 | 480526 | &nbsp;&nbsp;&nbsp; 6/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (39814)  |
| CBOE Volatility Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 12 | 252455 | &nbsp;&nbsp;&nbsp; 7/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4265)  |
| CBOE Volatility Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 64116 | &nbsp;&nbsp;&nbsp; 8/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(340)  |
| DAX Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 7 | 4777835 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 170688  |
| DAX Mini Index | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 273019 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10748)  |
| DJ EURO STOXX 50 Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 40 | 2438040 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6184  |
| DJ EURO STOXX 50 Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 21 | 1279971 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (65585)  |
| DJIA Mini E-CBOT Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 12 | 2537640 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9147  |
| E-Mini Russell 2000<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 15 | 1551225 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1146)  |
| E-Mini Russell 2000<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 20 | 2068300 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3154)  |
| E-Mini S&P MidCap 400 Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 600820 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10623)  |
| FTSE 100 Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 236635 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 398  |
| FTSE 100 Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 6 | 709906 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (19008)  |
| FTSE China A50 Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 117 | 1559142 | &nbsp;&nbsp;&nbsp; 6/27/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4182)  |
| FTSE China A50 Index | Short | &nbsp;&nbsp;&nbsp;&nbsp; 24 | 319824 | &nbsp;&nbsp;&nbsp; 6/27/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2503  |
| FTSE Taiwan Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 10 | 700800 | &nbsp;&nbsp;&nbsp; 6/27/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8108)  |
| FTSE/JSE Top 40 Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 17 | 820292 | &nbsp;&nbsp;&nbsp; 6/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (38650)  |
| FTSE/MIB Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 683587 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25178  |
| Hang Seng China Enterprises Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 6 | 320771 | &nbsp;&nbsp;&nbsp; 6/27/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1028  |
| Hang Seng Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 15 | 2217737 | &nbsp;&nbsp;&nbsp; 6/27/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2350  |
| IBEX 35 Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 17 | 2731674 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (63518)  |
| KOPSI 200 Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 18 | 1174494 | &nbsp;&nbsp;&nbsp; 6/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 78939  |
| Mini TOPIX Index | Short | &nbsp;&nbsp;&nbsp;&nbsp; 31 | 602679 | &nbsp;&nbsp;&nbsp; 6/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (39559)  |
| MSCI Emerging Markets Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 30 | 1723950 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 87882  |
| MSCI Singapore Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 24 | 764148 | &nbsp;&nbsp;&nbsp; 6/27/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1280  |
| NASDAQ 100 E-Mini Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 19 | 8123165 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 593496  |
| NIKKEI 225 Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 64 | 3429393 | &nbsp;&nbsp;&nbsp; 6/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (112943)  |
| NSE IFSC Nifty 50 Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 49674 | &nbsp;&nbsp;&nbsp; 6/26/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(223)  |
| S&P 500 E-Mini Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 46 | 13606800 | &nbsp;&nbsp;&nbsp; 6/20/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 391302  |

---

<br> 40 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Futures Contracts (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Description** | **Type** | **Number of** <br>**Contracts** | **Notional** <br>**Amount<sup>\*</sup>** | **Expiration** <br>**Date** | **Value/Unrealized** <br>**Appreciation** <br>(Depreciation)  |
| **Equity Contracts (continued)**<br>|  |  |  |  |  |
| S&P/TSX 60 Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 12 | $2742158 | &nbsp;&nbsp;&nbsp; 6/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $159308  |
| SPI 200 Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 136285 | &nbsp;&nbsp;&nbsp; 6/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8356)  |
| TOPIX Index<sup>a</sup> | Long | &nbsp;&nbsp;&nbsp;&nbsp; 9 | 1749713 | &nbsp;&nbsp;&nbsp; 6/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 108606  |
| TOPIX Index<sup>a</sup> | Short | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 583238 | &nbsp;&nbsp;&nbsp; 6/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8247)  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1199325  |
| **Interest Rate Contracts<sup>a</sup>**<br>|  |  |  |  |  |
| 3 Month CORRA | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 177733 | &nbsp;&nbsp;&nbsp; 12/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(118)  |
| 3 Month CORRA | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 177870 | &nbsp;&nbsp;&nbsp; 3/17/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(99)  |
| 3 Month CORRA | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 177861 | &nbsp;&nbsp;&nbsp; 6/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(195)  |
| 3 Month CORRA | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 177815 | &nbsp;&nbsp;&nbsp; 9/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(153)  |
| 3 Month CORRA | Long | &nbsp;&nbsp;&nbsp;&nbsp; 1 | 177743 | &nbsp;&nbsp;&nbsp; 12/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(305)  |
| 3 Month EURIBOR | Short | &nbsp;&nbsp;&nbsp;&nbsp; 44 | 12260768 | &nbsp;&nbsp;&nbsp; 9/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (24087)  |
| 3 Month EURIBOR | Short | &nbsp;&nbsp;&nbsp;&nbsp; 46 | 12829827 | &nbsp;&nbsp;&nbsp; 12/15/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (40252)  |
| 3 Month EURIBOR | Short | &nbsp;&nbsp;&nbsp;&nbsp; 35 | 9764806 | &nbsp;&nbsp;&nbsp; 3/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (37329)  |
| 3 Month EURIBOR | Long | &nbsp;&nbsp;&nbsp;&nbsp; 97 | 27058331 | &nbsp;&nbsp;&nbsp; 6/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48380  |
| 3 Month EURIBOR | Short | &nbsp;&nbsp;&nbsp;&nbsp; 38 | 10600171 | &nbsp;&nbsp;&nbsp; 6/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (40621)  |
| 3 Month EURIBOR | Short | &nbsp;&nbsp;&nbsp;&nbsp; 26 | 7249058 | &nbsp;&nbsp;&nbsp; 9/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (26725)  |
| 3 Month EURIBOR | Short | &nbsp;&nbsp;&nbsp;&nbsp; 28 | 7801114 | &nbsp;&nbsp;&nbsp; 12/14/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (29776)  |
| 3 Month EURIBOR | Short | &nbsp;&nbsp;&nbsp;&nbsp; 17 | 4732772 | &nbsp;&nbsp;&nbsp; 3/15/27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (21261)  |
| 3 Month EURIBOR | Short | &nbsp;&nbsp;&nbsp;&nbsp; 8 | 2225370 | &nbsp;&nbsp;&nbsp; 6/14/27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (9457)  |
| 3 Month SOFR | Short | &nbsp;&nbsp;&nbsp;&nbsp; 79 | 18944200 | &nbsp;&nbsp;&nbsp; 12/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 44970  |
| 3 Month SOFR | Short | &nbsp;&nbsp;&nbsp;&nbsp; 89 | 21403388 | &nbsp;&nbsp;&nbsp; 3/17/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10369  |
| 3 Month SOFR | Short | &nbsp;&nbsp;&nbsp;&nbsp; 67 | 16151187 | &nbsp;&nbsp;&nbsp; 6/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (21752)  |
| 3 Month SOFR | Short | &nbsp;&nbsp;&nbsp;&nbsp; 117 | 28255500 | &nbsp;&nbsp;&nbsp; 9/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (53490)  |
| 3 Month SOFR | Short | &nbsp;&nbsp;&nbsp;&nbsp; 50 | 12088750 | &nbsp;&nbsp;&nbsp; 12/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (45154)  |
| 3 Month SOFR | Short | &nbsp;&nbsp;&nbsp;&nbsp; 46 | 11127400 | &nbsp;&nbsp;&nbsp; 3/16/27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (51549)  |
| 3 Month SOFR | Short | &nbsp;&nbsp;&nbsp;&nbsp; 33 | 7982288 | &nbsp;&nbsp;&nbsp; 6/15/27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (33356)  |
| 3 Month SOFR | Short | &nbsp;&nbsp;&nbsp;&nbsp; 23 | 5560825 | &nbsp;&nbsp;&nbsp; 9/14/27 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (15043)  |
| 3 Month SONIA | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 646628 | &nbsp;&nbsp;&nbsp; 12/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 33  |
| 3 Month SONIA | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 647941 | &nbsp;&nbsp;&nbsp; 3/17/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(632)  |
| 3 Month SONIA | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 648581 | &nbsp;&nbsp;&nbsp; 6/16/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1070)  |
| 3 Month SONIA | Long | &nbsp;&nbsp;&nbsp;&nbsp; 14 | 4542426 | &nbsp;&nbsp;&nbsp; 9/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5348)  |
| 3 Month SONIA | Short | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 648918 | &nbsp;&nbsp;&nbsp; 9/15/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1245)  |
| ASX 90 Day Bank Accepted Bill | Long | &nbsp;&nbsp;&nbsp;&nbsp; 12 | 7671454 | &nbsp;&nbsp;&nbsp; 9/11/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6044  |
| ASX 90 Day Bank Accepted Bill | Long | &nbsp;&nbsp;&nbsp;&nbsp; 9 | 5756547 | &nbsp;&nbsp;&nbsp; 12/11/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5574  |
| ASX 90 Day Bank Accepted Bill | Long | &nbsp;&nbsp;&nbsp;&nbsp; 6 | 3838355 | &nbsp;&nbsp;&nbsp; 3/12/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3341  |
| ASX 90 Day Bank Accepted Bill | Long | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 2558966 | &nbsp;&nbsp;&nbsp; 6/11/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2705  |
| ASX 90 Day Bank Accepted Bill | Long | &nbsp;&nbsp;&nbsp;&nbsp; 2 | 1279420 | &nbsp;&nbsp;&nbsp; 9/10/26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1308  |
| Australian 3 Yr. Bond | Long | &nbsp;&nbsp;&nbsp;&nbsp; 67 | 4644183 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 51624  |
| Australian 10 Yr. Bond | Long | &nbsp;&nbsp;&nbsp;&nbsp; 48 | 3531472 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 54565  |
| Australian 10 Yr. Bond | Short | &nbsp;&nbsp;&nbsp;&nbsp; 48 | 3531472 | &nbsp;&nbsp;&nbsp; 6/16/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (61859)  |
| Canadian 2 Yr. Bond | Short | &nbsp;&nbsp;&nbsp;&nbsp; 6 | 461952 | &nbsp;&nbsp;&nbsp; 9/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(765)  |
| Canadian 5 Yr. Bond | Long | &nbsp;&nbsp;&nbsp;&nbsp; 4 | 332831 | &nbsp;&nbsp;&nbsp; 9/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1197  |
| Canadian 10 Yr. Bond | Long | &nbsp;&nbsp;&nbsp;&nbsp; 48 | 4277976 | &nbsp;&nbsp;&nbsp; 9/18/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 30602  |
| Euro-BOBL | Long | &nbsp;&nbsp;&nbsp;&nbsp; 309 | 41800779 | &nbsp;&nbsp;&nbsp; 6/06/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 142182  |
| Euro-Bund | Long | &nbsp;&nbsp;&nbsp;&nbsp; 247 | 36798676 | &nbsp;&nbsp;&nbsp; 6/06/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 177269  |
| Euro-Buxl | Short | &nbsp;&nbsp;&nbsp;&nbsp; 35 | 4831684 | &nbsp;&nbsp;&nbsp; 6/06/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 182695  |
| Euro-OAT | Long | &nbsp;&nbsp;&nbsp;&nbsp; 17 | 2427310 | &nbsp;&nbsp;&nbsp; 6/06/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20280  |
| Euro-Schatz | Long | &nbsp;&nbsp;&nbsp;&nbsp; 145 | 17673319 | &nbsp;&nbsp;&nbsp; 6/06/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (23834)  |
| Euro-Schatz | Short | &nbsp;&nbsp;&nbsp;&nbsp; 15 | 1828274 | &nbsp;&nbsp;&nbsp; 6/06/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 388  |
| Euro-Schatz | Short | &nbsp;&nbsp;&nbsp;&nbsp; 14 | 1707502 | &nbsp;&nbsp;&nbsp; 9/08/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(512)  |
| Japanese 10 Yr. Bond | Long | &nbsp;&nbsp;&nbsp;&nbsp; 10 | 967442 | &nbsp;&nbsp;&nbsp; 6/12/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2301  |
| Japanese 10 Yr. Bond | Long | &nbsp;&nbsp;&nbsp;&nbsp; 3 | 2899823 | &nbsp;&nbsp;&nbsp; 6/13/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11403  |
| Korean 3 Yr. Bond | Long | &nbsp;&nbsp;&nbsp;&nbsp; 14 | 1090918 | &nbsp;&nbsp;&nbsp; 6/17/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3156  |
| Korean 10 Yr. Bond | Short | &nbsp;&nbsp;&nbsp;&nbsp; 12 | 1036486 | &nbsp;&nbsp;&nbsp; 6/17/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(312)  |
| Long Gilt | Long | &nbsp;&nbsp;&nbsp;&nbsp; 61 | 7518596 | &nbsp;&nbsp;&nbsp; 9/26/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3627  |

---

<br> franklintempleton.com Annual Report 41 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Futures Contracts (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Description** | **Type** | **Number of** <br>**Contracts** | **Notional** <br>**Amount<sup>\*</sup>** | **Expiration** <br>**Date** | **Value/Unrealized** <br>**Appreciation** <br>(Depreciation)  |
| **Interest Rate Contracts<sup>a</sup> (continued)**<br>|  |  |  |  |  |
| U.S. Treasury 2 Yr. Note | Long | &nbsp;&nbsp;&nbsp;&nbsp; 124 | $25722250 | &nbsp;&nbsp;&nbsp; 9/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $33752  |
| U.S. Treasury 2 Yr. Note | Short | &nbsp;&nbsp;&nbsp;&nbsp; 88 | 18254500 | &nbsp;&nbsp;&nbsp; 9/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (16266)  |
| U.S. Treasury 5 Yr. Note | Long | &nbsp;&nbsp;&nbsp;&nbsp; 43 | 4652062 | &nbsp;&nbsp;&nbsp; 9/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16289  |
| U.S. Treasury 5 Yr. Note | Short | &nbsp;&nbsp;&nbsp;&nbsp; 48 | 5193000 | &nbsp;&nbsp;&nbsp; 9/30/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (13381)  |
| U.S. Treasury 10 Yr. Note | Short | &nbsp;&nbsp;&nbsp;&nbsp; 79 | 8749250 | &nbsp;&nbsp;&nbsp; 9/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (17121)  |
| U.S. Treasury Long Bond | Short | &nbsp;&nbsp;&nbsp;&nbsp; 55 | 6202969 | &nbsp;&nbsp;&nbsp; 9/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (57287)  |
| U.S. Treasury Ultra Bond | Short | &nbsp;&nbsp;&nbsp;&nbsp; 23 | 2669438 | &nbsp;&nbsp;&nbsp; 9/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (22787)  |
| U.S. Treasury 10 Yr. Ultra | Short | &nbsp;&nbsp;&nbsp;&nbsp; 9 | 1012922 | &nbsp;&nbsp;&nbsp; 9/19/25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4578)  |
|  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 176335  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Futures Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Futures Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Futures Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Futures Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total Futures Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $1579872 |

---

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

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

<br> 42 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

At May 31, 2025, the Fund had the following forward exchange contracts outstanding. See Note 1(d).

**Forward Exchange Contracts** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Currency** | **Counterparty<sup>a</sup>** | **Type** | **Quantity** | **Contract** <br>**Amount<sup>\*</sup>** | **Settlement** <br>**Date** | **Unrealized** <br>**Appreciation** | **Unrealized** <br>**Depreciation**  |
| **OTC Forward Exchange Contracts** | **OTC Forward Exchange Contracts** | **OTC Forward Exchange Contracts** | **OTC Forward Exchange Contracts** |  |  |  |  |
| Australian Dollar<sup>b</sup> | MSCO | Buy | 5750000 | 3642069 | &nbsp;&nbsp; 6/18/25 | $71467 | $(6127)  |
| Australian Dollar<sup>b</sup> | MSCO | Sell | 14308000 | 9106968 | &nbsp;&nbsp; 6/18/25 | 2457 | (120809)  |
| British Pound | JPHQ | Buy | 670000 | 886980 | &nbsp;&nbsp; 6/18/25 | 15822 | —  |
| British Pound | JPHQ | Sell | 2492000 | 3225703 | &nbsp;&nbsp; 6/18/25 |  | (132179)  |
| British Pound<sup>b</sup> | MSCO | Buy | 5541000 | 7318398 | &nbsp;&nbsp; 6/18/25 | 152731 | (4825)  |
| British Pound<sup>b</sup> | MSCO | Sell | 1979000 | 2573688 | &nbsp;&nbsp; 6/18/25 |  | (92945)  |
| Canadian Dollar<sup>b</sup> | MSCO | Buy | 6388000 | 4578917 | &nbsp;&nbsp; 6/18/25 | 80144 | (63)  |
| Canadian Dollar<sup>b</sup> | MSCO | Sell | 15097000 | 10618775 | &nbsp;&nbsp; 6/18/25 |  | (392007)  |
| Euro | JPHQ | Buy | 774000 | 845010 | &nbsp;&nbsp; 6/18/25 | 34848 | —  |
| Euro | JPHQ | Sell | 4155000 | 4567715 | &nbsp;&nbsp; 6/18/25 | 2823 | (158372)  |
| Euro<sup>b</sup> | MSCO | Buy | 9642000 | 10714706 | &nbsp;&nbsp; 6/18/25 | 257533 | (11543)  |
| Euro<sup>b</sup> | MSCO | Sell | 13015000 | 14320061 | &nbsp;&nbsp; 6/18/25 | 2557 | (477505)  |
| Japanese Yen<sup>b</sup> | MSCO | Buy | 644709000 | 4476964 | &nbsp;&nbsp; 6/18/25 | 28863 | (16271)  |
| Japanese Yen<sup>b</sup> | MSCO | Sell | 719631000 | 4912660 | &nbsp;&nbsp; 6/18/25 | 5953 | (104580)  |
| Mexican Peso<sup>b</sup> | MSCO | Buy | 42217000 | 2134056 | &nbsp;&nbsp; 6/18/25 | 38746 | (1194)  |
| Mexican Peso<sup>b</sup> | MSCO | Sell | 9763000 | 484422 | &nbsp;&nbsp; 6/18/25 | 618 | (18398)  |
| New Zealand Dollar<sup>b</sup> | MSCO | Buy | 3737000 | 2195320 | &nbsp;&nbsp; 6/18/25 | 40406 | (1195)  |
| New Zealand Dollar<sup>b</sup> | MSCO | Sell | 5057000 | 2893074 | &nbsp;&nbsp; 6/18/25 | 162 | (130908)  |
| Swiss Franc<sup>b</sup> | MSCO | Buy | 10673000 | 12921532 | &nbsp;&nbsp; 6/18/25 | 138359 | (62589)  |
| Swiss Franc<sup>b</sup> | MSCO | Sell | 6137000 | 7041739 | &nbsp;&nbsp; 6/18/25 | 107 | (431849)  |
| Australian Dollar | BZWS | Buy | 106000 | 63427 | &nbsp;&nbsp; 6/20/25 | 4920 | —  |
| Australian Dollar | BZWS | Sell | 106000 | 67374 | &nbsp;&nbsp; 6/20/25 |  | (973)  |
| Brazilian Real | BZWS | Buy | 924000 | 162285 | &nbsp;&nbsp; 6/20/25 |  | (1482)  |
| Brazilian Real | BZWS | Sell | 3988000 | 697896 | &nbsp;&nbsp; 6/20/25 | 4017 | (149)  |
| British Pound | BZWS | Buy | 1174000 | 1517715 | &nbsp;&nbsp; 6/20/25 | 64223 | —  |
| British Pound | BZWS | Sell | 3600000 | 4703641 | &nbsp;&nbsp; 6/20/25 |  | (147278)  |
| Canadian Dollar | BZWS | Buy | 37000 | 26327 | &nbsp;&nbsp; 6/20/25 | 660 | —  |
| Canadian Dollar | BZWS | Sell | 4947000 | 3505139 | &nbsp;&nbsp; 6/20/25 |  | (103246)  |
| Euro | BZWS | Buy | 2235000 | 2443589 | &nbsp;&nbsp; 6/20/25 | 97444 | (30)  |
| Euro | BZWS | Sell | 3827000 | 4204299 | &nbsp;&nbsp; 6/20/25 | 582 | (147250)  |
| Hong Kong Dollar | BZWS | Buy | 3513000 | 453646 | &nbsp;&nbsp; 6/20/25 |  | (4733)  |
| Hong Kong Dollar | BZWS | Sell | 8230000 | 1060567 | &nbsp;&nbsp; 6/20/25 | 8885 | —  |
| Japanese Yen | BZWS | Buy | 66142000 | 441718 | &nbsp;&nbsp; 6/20/25 | 18989 | (9)  |
| Japanese Yen | BZWS | Sell | 105709000 | 719184 | &nbsp;&nbsp; 6/20/25 | 64 | (17175)  |
| Swedish Krona | BZWS | Buy | 15000 | 1574 | &nbsp;&nbsp; 6/23/25 |  | (7)  |
| Swedish Krona | BZWS | Sell | 1368000 | 143596 | &nbsp;&nbsp; 6/23/25 | 720 | (15)  |
| Australian Dollar | BNYM | Sell | 840000 | 527500 | &nbsp;&nbsp; 6/26/25 |  | (14166)  |
| Canadian Dollar | BNYM | Sell | 192000 | 134460 | &nbsp;&nbsp; 6/26/25 |  | (5629)  |
| Euro | BNYM | Buy | 236000 | 259158 | &nbsp;&nbsp; 6/26/25 | 9257 | —  |
| Euro | BNYM | Sell | 1111000 | 1208456 | &nbsp;&nbsp; 6/26/25 |  | (55140)  |
| British Pound | JPHQ | Sell | 4730 | 6101 | &nbsp;&nbsp; 7/09/25 |  | (274)  |
| Chilean Peso | JPHQ | Buy | 1544978341 | 1628695 | &nbsp;&nbsp; 7/09/25 | 4201 | —  |
| Chinese Yuan | JPHQ | Buy | 21735 | 3006 | &nbsp;&nbsp; 7/09/25 | 24 | —  |
| Colombian Peso | JPHQ | Buy | 4567428000 | 1080000 | &nbsp;&nbsp; 7/09/25 | 14324 | —  |
| Colombian Peso | JPHQ | Sell | 9788043763 | 2324951 | &nbsp;&nbsp; 7/09/25 |  | (20196)  |
| Euro | JPHQ | Buy | 3498826 | 3951322 | &nbsp;&nbsp; 7/09/25 | 37157 | (5513)  |
| Euro | JPHQ | Sell | 2166083 | 2397464 | &nbsp;&nbsp; 7/09/25 |  | (68344)  |
| Indian Rupee | JPHQ | Buy | 152899540 | 1770000 | &nbsp;&nbsp; 7/09/25 | 13024 | —  |
| Indian Rupee | JPHQ | Sell | 153226713 | 1766608 | &nbsp;&nbsp; 7/09/25 |  | (20231)  |
| Indonesian Rupiah | JPHQ | Buy | 22954080000 | 1360000 | &nbsp;&nbsp; 7/09/25 | 46718 | —  |
| Indonesian Rupiah | JPHQ | Sell | 18722780456 | 1125505 | &nbsp;&nbsp; 7/09/25 |  | (21902)  |
| Japanese Yen | JPHQ | Buy | 289874215 | 2032583 | &nbsp;&nbsp; 7/09/25 | 7022 | (16081)  |

---

<br> franklintempleton.com Annual Report 43 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Forward Exchange Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Currency** | **Counterparty<sup>a</sup>** | **Type** | **Quantity** | **Contract** <br>**Amount<sup>\*</sup>** | **Settlement** <br>**Date** | **Unrealized** <br>**Appreciation** | **Unrealized** <br>**Depreciation**  |
| **OTC Forward Exchange Contracts (continued)** | **OTC Forward Exchange Contracts (continued)** | **OTC Forward Exchange Contracts (continued)** | **OTC Forward Exchange Contracts (continued)** |  |  |  |  |
| Japanese Yen | JPHQ | Sell | 246773520 | 1680000 | &nbsp;&nbsp; 7/09/25 | $— | $(42652)  |
| Kazakhstan Tenge | CITI | Buy | 323058711 | 622656 | &nbsp;&nbsp; 7/09/25 | 2312 | —  |
| Kazakhstan Tenge | CITI | Sell | 417212078 | 780000 | &nbsp;&nbsp; 7/09/25 |  | (27111)  |
| Malaysian Ringgit | BZWS | Buy | 7201665 | 1710000 | &nbsp;&nbsp; 7/09/25 |  | (15464)  |
| Malaysian Ringgit | BZWS | Sell | 52533 | 11833 | &nbsp;&nbsp; 7/09/25 |  | (528)  |
| Mexican Peso | JPHQ | Buy | 45740317 | 2314057 | &nbsp;&nbsp; 7/09/25 | 39629 | (7039)  |
| Peruvian Nuevo Sol | JPHQ | Buy | 5581862 | 1497524 | &nbsp;&nbsp; 7/09/25 | 43704 | —  |
| Peruvian Nuevo Sol | JPHQ | Sell | 13978902 | 3786716 | &nbsp;&nbsp; 7/09/25 |  | (73046)  |
| Polish Zloty | JPHQ | Buy | 2902836 | 747361 | &nbsp;&nbsp; 7/09/25 | 27469 | —  |
| Polish Zloty | JPHQ | Sell | 6124962 | 1589963 | &nbsp;&nbsp; 7/09/25 |  | (44923)  |
| South African Rand | JPHQ | Buy | 36660632 | 2033802 | &nbsp;&nbsp; 7/09/25 | 11527 | (12572)  |
| South African Rand | JPHQ | Sell | 35353365 | 1914463 | &nbsp;&nbsp; 7/09/25 |  | (45808)  |
| South Korean Won | JPHQ | Buy | 3590868500 | 2600000 | &nbsp;&nbsp; 7/09/25 | 13517 | (3541)  |
| Thai Baht | JPHQ | Buy | 34785469 | 1070000 | &nbsp;&nbsp; 7/09/25 |  | (7013)  |
| Thai Baht | JPHQ | Sell | 34995490 | 1025764 | &nbsp;&nbsp; 7/09/25 |  | (43640)  |
| Turkish Lira | JPHQ | Buy | 30960282 | 758289 | &nbsp;&nbsp; 7/09/25 | 308 | (1731)  |
| Turkish Lira | JPHQ | Sell | 26464410 | 630000 | &nbsp;&nbsp; 7/09/25 |  | (16958)  |
| Brazilian Real | MSCO | Sell | 6073938 | 1030732 | &nbsp;&nbsp; 7/15/25 | 291 | (20263)  |
| Brazilian Real | JPHQ | Buy | 9927460 | 1709009 | &nbsp;&nbsp; 8/04/25 | 5497 | (5730)  |
| Chinese Yuan | MSCO | Buy | 3831410 | 539760 | &nbsp;&nbsp; 8/15/25 |  | (4177)  |
| Chinese Yuan | MSCO | Sell | 19425987 | 2708471 | &nbsp;&nbsp; 8/15/25 | 21 | (7060)  |
| South Korean Won | MSCO | Buy | 734222813 | 520852 | &nbsp;&nbsp; 8/20/25 | 14360 | —  |
| South Korean Won | MSCO | Sell | 139174160 | 99886 | &nbsp;&nbsp; 8/20/25 |  | (1565)  |
| British Pound | MSCO | Sell | 2950000 | 3998505 | &nbsp;&nbsp; 8/29/25 | 22139 | —  |
| Danish Krone | MSCO | Sell | 800000 | 122651 | &nbsp;&nbsp; 8/29/25 | 54 | —  |
| Euro | MSCO | Sell | 1750000 | 2000001 | &nbsp;&nbsp; 8/29/25 | 811 | —  |
| Norwegian Krone | MSCO | Sell | 2000000 | 197415 | &nbsp;&nbsp; 8/29/25 | 1504 | —  |
| Polish Zloty | MSCO | Sell | 1500000 | 400236 | &nbsp;&nbsp; 8/29/25 | 237 | —  |
| Swedish Krona | MSCO | Sell | 7500000 | 789211 | &nbsp;&nbsp; 8/29/25 | 2417 | —  |
| Swiss Franc | MSCO | Sell | 1200000 | 1470470 | &nbsp;&nbsp; 8/29/25 |  | (4532)  |
| &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 | $1391624 | $(3198535)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation (depreciation) |  | $(1806911) |

---

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

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

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

<br> 44 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

At May 31, 2025, the Fund had the following credit default swap contracts outstanding. See Note 1(d).

**Credit Default Swap Contracts** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Description** | **Annual**<br>**Payment**<br>**Rate** <br>**Received** <br>(Paid) | **Payment** <br>**Frequency** | **Maturity**<br>**Date** | **Notional**<br>**Amount<sup>a</sup>** |  | **Value** | **Upfront**<br>**Payments**<br>(Receipts) | **Unrealized**<br>**Appreciation** <br>(Depreciation) | **Rating<sup>b</sup>**  |
| **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** | **Centrally Cleared Swap Contracts** |
| **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** | **Contracts to Buy Protection<sup>c</sup>** |
| **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/26 | 250000 |  | $(6253) | $(7466) | &nbsp;&nbsp;&nbsp;&nbsp; $1213 |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/26 | 3000 |  | (75) | (71) | &nbsp;&nbsp;&nbsp;&nbsp;(4) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/27 | 245000 |  | (4755) | (4385) | &nbsp;&nbsp;&nbsp;&nbsp;(370) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/27 | 316000 |  | (6133) | (2001) | &nbsp;&nbsp;&nbsp;&nbsp; (4132) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/27 | 374000 |  | (7258) | (1778) | &nbsp;&nbsp;&nbsp;&nbsp; (5480) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/27 | 27000 |  | (524) | (102) | &nbsp;&nbsp;&nbsp;&nbsp;(422) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/27 | 347000 |  | (6735) | 434 | &nbsp;&nbsp;&nbsp;&nbsp; (7169) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/27 | 56000 |  | (1087) | 560 | &nbsp;&nbsp;&nbsp;&nbsp; (1647) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/27 | 230000 |  | (4464) | 2875 | &nbsp;&nbsp;&nbsp;&nbsp; (7339) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 12/20/29 | 33000 |  | 953 | 1567 | &nbsp;&nbsp;&nbsp;&nbsp;(614) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 12/20/29 | 55000 |  | 1589 | 2750 | &nbsp;&nbsp;&nbsp;&nbsp; (1161) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/26 | 145000 |  | (3627) | (6709) | &nbsp;&nbsp;&nbsp;&nbsp; 3082 |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/26 | 73000 |  | (1826) | (3169) | &nbsp;&nbsp;&nbsp;&nbsp; 1343 |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/26 | 68000 |  | (1701) | (2272) | &nbsp;&nbsp;&nbsp;&nbsp; 571 |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/26 | 145000 |  | (3627) | (5568) | &nbsp;&nbsp;&nbsp;&nbsp; 1941 |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/26 | 145000 |  | (3627) | (4860) | &nbsp;&nbsp;&nbsp;&nbsp; 1233 |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/26 | 40000 |  | (1001) | (1355) | &nbsp;&nbsp;&nbsp;&nbsp; 354 |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 145000 |  | (2421) | (1989) | &nbsp;&nbsp;&nbsp;&nbsp;(432) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 39000 |  | (651) | (1011) | &nbsp;&nbsp;&nbsp;&nbsp; 360 |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 29000 |  | (484) | (978) | &nbsp;&nbsp;&nbsp;&nbsp; 494 |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 48000 |  | (801) | (557) | &nbsp;&nbsp;&nbsp;&nbsp;(244) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 29000 |  | (484) | (421) | &nbsp;&nbsp;&nbsp;&nbsp;(63) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 29000 |  | (484) | (414) | &nbsp;&nbsp;&nbsp;&nbsp;(70) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 29000 |  | (484) | (371) | &nbsp;&nbsp;&nbsp;&nbsp;(113) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 29000 |  | (484) | (283) | &nbsp;&nbsp;&nbsp;&nbsp;(201) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 48000 |  | (801) | (277) | &nbsp;&nbsp;&nbsp;&nbsp;(524) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 19000 |  | (317) | (258) | &nbsp;&nbsp;&nbsp;&nbsp;(59) |  |
|  American Axle & Manufacturing Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 19000 |  | (317) | (87) | &nbsp;&nbsp;&nbsp;&nbsp;(230) |  |
| CMA CGM SA | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 129295 | EUR | (17904) | (13849) | &nbsp;&nbsp;&nbsp;&nbsp; (4055) |  |
| CMA CGM SA | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 70000 | EUR | (9693) | (8225) | &nbsp;&nbsp;&nbsp;&nbsp; (1468) |  |
| CMA CGM SA | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 | EUR | (6924) | (6581) | &nbsp;&nbsp;&nbsp;&nbsp;(343) |  |
| Ford Motor Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 717000 |  | (91710) | (102707) | &nbsp;&nbsp;&nbsp;&nbsp; 10997 |  |
| Ford Motor Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 251000 |  | (32105) | (35465) | &nbsp;&nbsp;&nbsp;&nbsp; 3360 |  |
| Ford Motor Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 100000 |  | (12791) | (14028) | &nbsp;&nbsp;&nbsp;&nbsp; 1237 |  |
| Ford Motor Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 100000 |  | (12791) | (12487) | &nbsp;&nbsp;&nbsp;&nbsp;(304) |  |
| Ford Motor Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 |  | (6395) | (6991) | &nbsp;&nbsp;&nbsp;&nbsp; 596 |  |
| Ford Motor Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 |  | (6395) | (6170) | &nbsp;&nbsp;&nbsp;&nbsp;(225) |  |
| Ford Motor Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 |  | (6395) | (4983) | &nbsp;&nbsp;&nbsp;&nbsp; (1412) |  |
| Ford Motor Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 30000 |  | (3837) | (3672) | &nbsp;&nbsp;&nbsp;&nbsp;(165) |  |
| Ford Motor Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 14000 |  | (1791) | (2112) | &nbsp;&nbsp;&nbsp;&nbsp; 321 |  |
| Ford Motor Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 2000 |  | (256) | (260) | &nbsp;&nbsp;&nbsp;&nbsp; 4 |  |
| General Motors Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 250000 |  | (39663) | (38398) | &nbsp;&nbsp;&nbsp;&nbsp; (1265) |  |
| General Motors Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 251000 |  | (39821) | (36971) | &nbsp;&nbsp;&nbsp;&nbsp; (2850) |  |
| General Motors Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 99000 |  | (15706) | (15097) | &nbsp;&nbsp;&nbsp;&nbsp;(609) |  |
| General Motors Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 70000 |  | (11106) | (10853) | &nbsp;&nbsp;&nbsp;&nbsp;(253) |  |

---

<br> franklintempleton.com Annual Report 45 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Credit Default Swap Contracts (continued)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Description** | **Annual**<br>**Payment**<br>**Rate** <br>**Received** <br>(Paid) | **Payment** <br>**Frequency** | **Maturity**<br>**Date** | **Notional**<br>**Amount<sup>a</sup>** |  | **Value** | **Upfront**<br>**Payments**<br>(Receipts) | **Unrealized**<br>**Appreciation** <br>(Depreciation) | **Rating<sup>b</sup>**  |
| **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** |
| **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** |
| **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** |
| General Motors Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 |  | $(7933) | $(7980) | &nbsp;&nbsp;&nbsp;&nbsp; $47 |  |
| General Motors Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 |  | (7933) | (7680) | &nbsp;&nbsp;&nbsp;&nbsp;(253) |  |
| General Motors Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 |  | (7933) | (7441) | &nbsp;&nbsp;&nbsp;&nbsp;(492) |  |
| General Motors Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 |  | (7933) | (7365) | &nbsp;&nbsp;&nbsp;&nbsp;(568) |  |
| General Motors Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 |  | (7933) | (7314) | &nbsp;&nbsp;&nbsp;&nbsp;(619) |  |
| General Motors Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 51000 |  | (8091) | (6815) | &nbsp;&nbsp;&nbsp;&nbsp; (1276) |  |
| General Motors Co. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 19000 |  | (3014) | (2909) | &nbsp;&nbsp;&nbsp;&nbsp;(105) |  |
| Government of Egypt | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/26 | 365000 |  | 9975 | 137787 | &nbsp;&nbsp;&nbsp;&nbsp; (127812) |  |
| Government of Italy | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/26 | 350000 |  | (3223) | (4524) | &nbsp;&nbsp;&nbsp;&nbsp; 1301 |  |
| Hertz Corp. | (5.00)% | &nbsp;&nbsp; Quarterly | 12/20/26 | 30000 |  | 4306 | 8850 | &nbsp;&nbsp;&nbsp;&nbsp; (4544) |  |
| Hertz Corp. | (5.00)% | &nbsp;&nbsp; Quarterly | 12/20/26 | 30000 |  | 4306 | 9600 | &nbsp;&nbsp;&nbsp;&nbsp; (5294) |  |
| Hertz Corp. | (5.00)% | &nbsp;&nbsp; Quarterly | 12/20/26 | 49000 |  | 7034 | 12250 | &nbsp;&nbsp;&nbsp;&nbsp; (5216) |  |
| Hertz Corp. | (5.00)% | &nbsp;&nbsp; Quarterly | 12/20/26 | 50000 |  | 7177 | 14750 | &nbsp;&nbsp;&nbsp;&nbsp; (7573) |  |
| Hertz Corp. | (5.00)% | &nbsp;&nbsp; Quarterly | 12/20/26 | 50000 |  | 7177 | 15750 | &nbsp;&nbsp;&nbsp;&nbsp; (8573) |  |
| Hertz Corp. | (5.00)% | &nbsp;&nbsp; Quarterly | 12/20/26 | 100000 |  | 14354 | 29250 | &nbsp;&nbsp;&nbsp;&nbsp; (14896) |  |
|  International Consolidated Airlines Group, S.A. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 149000 | EUR | (30835) | (32208) | &nbsp;&nbsp;&nbsp;&nbsp; 1373 |  |
|  International Consolidated Airlines Group, S.A. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 99000 | EUR | (20487) | (21021) | &nbsp;&nbsp;&nbsp;&nbsp; 534 |  |
|  International Consolidated Airlines Group, S.A. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 | EUR | (10347) | (10617) | &nbsp;&nbsp;&nbsp;&nbsp; 270 |  |
|  International Consolidated Airlines Group, S.A. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 | EUR | (10347) | (9336) | &nbsp;&nbsp;&nbsp;&nbsp; (1011) |  |
|  International Consolidated Airlines Group, S.A. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 | EUR | (10347) | (8518) | &nbsp;&nbsp;&nbsp;&nbsp; (1829) |  |
|  International Consolidated Airlines Group, S.A. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 30000 | EUR | (6208) | (5519) | &nbsp;&nbsp;&nbsp;&nbsp;(689) |  |
| Jaguar Land Rover | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 338000 | EUR | (48745) | (36834) | &nbsp;&nbsp;&nbsp;&nbsp; (11911) |  |
| Jaguar Land Rover | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 99000 | EUR | (14277) | (9937) | &nbsp;&nbsp;&nbsp;&nbsp; (4340) |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/28 | 215000 |  | (10858) | (18908) | &nbsp;&nbsp;&nbsp;&nbsp; 8050 |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/28 | 85000 |  | (4293) | (7091) | &nbsp;&nbsp;&nbsp;&nbsp; 2798 |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/28 | 43000 |  | (2172) | (4113) | &nbsp;&nbsp;&nbsp;&nbsp; 1941 |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/28 | 23000 |  | (1162) | (1927) | &nbsp;&nbsp;&nbsp;&nbsp; 765 |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 12/20/28 | 500000 |  | (22861) | (30756) | &nbsp;&nbsp;&nbsp;&nbsp; 7895 |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 12/20/28 | 47000 |  | (2149) | (3543) | &nbsp;&nbsp;&nbsp;&nbsp; 1394 |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 12/20/28 | 4000 |  | (183) | (171) | &nbsp;&nbsp;&nbsp;&nbsp;(12) |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/29 | 153000 |  | (5908) | (5908) | &nbsp;&nbsp;&nbsp;&nbsp; – |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 153000 |  | (4396) | (4516) | &nbsp;&nbsp;&nbsp;&nbsp; 120 |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 31000 |  | (891) | (915) | &nbsp;&nbsp;&nbsp;&nbsp; 24 |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/28 | 93000 |  | (4697) | 7905 | &nbsp;&nbsp;&nbsp;&nbsp; (12602) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/26 | 32000 |  | 1239 | 1040 | &nbsp;&nbsp;&nbsp;&nbsp; 199 |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/27 | 9000 |  | 1615 | 495 | &nbsp;&nbsp;&nbsp;&nbsp; 1120 |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/27 | 100000 |  | 17947 | 7125 | &nbsp;&nbsp;&nbsp;&nbsp; 10822 |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/27 | 145000 |  | 26023 | 9062 | &nbsp;&nbsp;&nbsp;&nbsp; 16961 |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/27 | 15000 |  | 2692 | 900 | &nbsp;&nbsp;&nbsp;&nbsp; 1792 |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/26 | 21000 |  | 813 | 1155 | &nbsp;&nbsp;&nbsp;&nbsp;(342)  |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/26 | 21000 |  | 813 | 1208 | &nbsp;&nbsp;&nbsp;&nbsp;(395) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/26 | 54000 |  | 2091 | 1890 | &nbsp;&nbsp;&nbsp;&nbsp; 201 |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/26 | 27000 |  | 1046 | 2533 | &nbsp;&nbsp;&nbsp;&nbsp; (1487) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/26 | 50000 |  | 1936 | 4253 | &nbsp;&nbsp;&nbsp;&nbsp; (2317) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/27 | 18000 |  | 3230 | 1328 | &nbsp;&nbsp;&nbsp;&nbsp; 1902 |  |

---

<br> 46 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Credit Default Swap Contracts (continued)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Description** | **Annual**<br>**Payment**<br>**Rate** <br>**Received** <br>(Paid) | **Payment** <br>**Frequency** | **Maturity**<br>**Date** | **Notional**<br>**Amount<sup>a</sup>** |  | **Value** | **Upfront**<br>**Payments**<br>(Receipts) | **Unrealized**<br>**Appreciation** <br>(Depreciation) | **Rating<sup>b</sup>**  |
| **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** |
| **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** |
| **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/27 | 54000 |  | $9691 | $6750 | &nbsp;&nbsp;&nbsp;&nbsp; $2941 |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/28 | 30000 |  | 6697 | 6000 | &nbsp;&nbsp;&nbsp;&nbsp; 697 |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/28 | 36000 |  | 8036 | 9675 | &nbsp;&nbsp;&nbsp;&nbsp; (1639) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/28 | 50000 |  | 11161 | 10003 | &nbsp;&nbsp;&nbsp;&nbsp; 1158 |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/28 | 50000 |  | 11161 | 10125 | &nbsp;&nbsp;&nbsp;&nbsp; 1036 |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/28 | 51000 |  | 11384 | 13135 | &nbsp;&nbsp;&nbsp;&nbsp; (1751) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/28 | 66000 |  | 14733 | 18233 | &nbsp;&nbsp;&nbsp;&nbsp; (3500) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 21000 |  | 7536 | 8190 | &nbsp;&nbsp;&nbsp;&nbsp;(654) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 24000 |  | 8612 | 9300 | &nbsp;&nbsp;&nbsp;&nbsp;(688) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 30000 |  | 10766 | 10202 | &nbsp;&nbsp;&nbsp;&nbsp; 564 |  |
| Kohl's Corp. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 36000 |  | 8369 | 10530 | &nbsp;&nbsp;&nbsp;&nbsp; (2161) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 37000 |  | 13278 | 12395 | &nbsp;&nbsp;&nbsp;&nbsp; 883 |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 32000 |  | 11483 | 12400 | &nbsp;&nbsp;&nbsp;&nbsp;(917) |  |
| Kohl's Corp. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 48000 |  | 11159 | 12900 | &nbsp;&nbsp;&nbsp;&nbsp; (1741) |  |
| Kohl's Corp. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 102000 |  | 23713 | 32130 | &nbsp;&nbsp;&nbsp;&nbsp; (8417) |  |
| Kohl's Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 109000 |  | 39115 | 37333 | &nbsp;&nbsp;&nbsp;&nbsp; 1782 |  |
| Kohl's Corp. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 204000 |  | 47427 | 61200 | &nbsp;&nbsp;&nbsp;&nbsp; (13773) |  |
| Lincoln National Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/27 | 32000 |  | (209) | (207) | &nbsp;&nbsp;&nbsp;&nbsp;(2) |  |
| Lincoln National Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/28 | 435000 |  | (1654) | (2169) | &nbsp;&nbsp;&nbsp;&nbsp; 515 |  |
| Lincoln National Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/28 | 100000 |  | (380) | (451) | &nbsp;&nbsp;&nbsp;&nbsp; 71 |  |
| Lincoln National Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/27 | 362000 |  | (2367) | 1572 | &nbsp;&nbsp;&nbsp;&nbsp; (3939) |  |
| MetLife Inc. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 782000 |  | (13405) | (11704) | &nbsp;&nbsp;&nbsp;&nbsp; (1701) |  |
| MetLife Inc. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 769000 |  | (13182) | (11509) | &nbsp;&nbsp;&nbsp;&nbsp; (1673) |  |
| Saint-Gobain SA | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/29 | 652000 | EUR | (19413) | (17604) | &nbsp;&nbsp;&nbsp;&nbsp; (1809) |  |
| SES SA | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 35000 | EUR | 2725 | 2948 | &nbsp;&nbsp;&nbsp;&nbsp;(223) |  |
| SES SA | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 55000 | EUR | 4282 | 4503 | &nbsp;&nbsp;&nbsp;&nbsp;(221) |  |
| SES SA | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 58000 | EUR | 4516 | 4802 | &nbsp;&nbsp;&nbsp;&nbsp;(286) |  |
| SES SA | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 168000 | EUR | 13080 | 12935 | &nbsp;&nbsp;&nbsp;&nbsp; 145 |  |
| SES SA | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 244000 | EUR | 18997 | 21137 | &nbsp;&nbsp;&nbsp;&nbsp; (2140) |  |
| SES SA | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 285000 | EUR | 22189 | 25644 | &nbsp;&nbsp;&nbsp;&nbsp; (3455) |  |
| SES SA | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 485000 | EUR | 37760 | 40962 | &nbsp;&nbsp;&nbsp;&nbsp; (3202) |  |
| SES SA | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 488000 | EUR | 37994 | 43120 | &nbsp;&nbsp;&nbsp;&nbsp; (5126) |  |
| Stellantis NV | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 859000 | EUR | (154864) | (146971) | &nbsp;&nbsp;&nbsp;&nbsp; (7893) |  |
| Stellantis NV | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 103000 | EUR | (18569) | (17909) | &nbsp;&nbsp;&nbsp;&nbsp;(660) |  |
| Stellantis NV | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 | EUR | (9014) | (7200) | &nbsp;&nbsp;&nbsp;&nbsp; (1814) |  |
| Stellantis NV | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 42000 | EUR | (7572) | (6867) | &nbsp;&nbsp;&nbsp;&nbsp;(705) |  |
| Tegna Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 150000 |  | (12834) | (14087) | &nbsp;&nbsp;&nbsp;&nbsp; 1253 |  |
| Tegna Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 |  | (4278) | (4527) | &nbsp;&nbsp;&nbsp;&nbsp; 249 |  |
| Tegna Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 20000 |  | (1711) | (2118) | &nbsp;&nbsp;&nbsp;&nbsp; 407 |  |
| Virgin Media | (5.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 96000 | EUR | (8491) | (8563) | &nbsp;&nbsp;&nbsp;&nbsp; 72 |  |
| Volkswagen AG | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 100000 | EUR | 964 | 1462 | &nbsp;&nbsp;&nbsp;&nbsp;(498) |  |
| Volkswagen AG | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 199000 | EUR | 1918 | 4136 | &nbsp;&nbsp;&nbsp;&nbsp; (2218) |  |
| Volkswagen AG | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 495000 | EUR | 4772 | 5080 | &nbsp;&nbsp;&nbsp;&nbsp;(308) |  |
| Volkswagen AG | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 994000 | EUR | 9583 | 10521 | &nbsp;&nbsp;&nbsp;&nbsp;(938) |  |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 30000 |  | 1633 | 1728 | &nbsp;&nbsp;&nbsp;&nbsp;(95) |  |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 30000 |  | 1633 | 1753 | &nbsp;&nbsp;&nbsp;&nbsp;(120) |  |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 |  | 2721 | 2710 | &nbsp;&nbsp;&nbsp;&nbsp; 11 |  |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 |  | 2721 | 2724 | &nbsp;&nbsp;&nbsp;&nbsp;(3) |  |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 |  | 2721 | 3223 | &nbsp;&nbsp;&nbsp;&nbsp;(502) |  |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 |  | 2721 | 3624 | &nbsp;&nbsp;&nbsp;&nbsp;(903) |  |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 |  | 2721 | 3624 | &nbsp;&nbsp;&nbsp;&nbsp;(903) |  |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 |  | 2721 | 3667 | &nbsp;&nbsp;&nbsp;&nbsp;(946) |  |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 50000 |  | 2721 | 3766 | &nbsp;&nbsp;&nbsp;&nbsp; (1045) |  |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 75000 |  | 4082 | 5381 | &nbsp;&nbsp;&nbsp;&nbsp; (1299) |  |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 101000 |  | 5497 | 5682 | &nbsp;&nbsp;&nbsp;&nbsp;(185) |  |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 101000 |  | 5497 | 6234 | &nbsp;&nbsp;&nbsp;&nbsp;(737) |  |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 100000 |  | 5442 | 7248 | &nbsp;&nbsp;&nbsp;&nbsp; (1806) |  |

---

<br> franklintempleton.com Annual Report 47 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Credit Default Swap Contracts (continued)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Description** | **Annual**<br>**Payment**<br>**Rate** <br>**Received** <br>(Paid) | **Payment** <br>**Frequency** | **Maturity**<br>**Date** | **Notional**<br>**Amount<sup>a</sup>** |  | **Value** | **Upfront**<br>**Payments**<br>(Receipts) | **Unrealized**<br>**Appreciation** <br>(Depreciation) | **Rating<sup>b</sup>**  |
| **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** | **Centrally Cleared Swap Contracts (continued)** |
| **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** | **Contracts to Buy Protection<sup>c</sup> (continued)** |
| **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** | **Single Name (continued)** |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 191000 |  | $10395 | $13004 | &nbsp;&nbsp;&nbsp;&nbsp; $(2609) |  |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 360000 |  | 19592 | 17894 | &nbsp;&nbsp;&nbsp;&nbsp; 1698 |  |
| Whirlpool Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 351000 |  | 19102 | 19849 | &nbsp;&nbsp;&nbsp;&nbsp;(747) |  |
| WPP Finance | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 299000 | EUR | (4624) | (3865) | &nbsp;&nbsp;&nbsp;&nbsp;(759) |  |
| WPP Finance | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 200000 | EUR | (3093) | (1943) | &nbsp;&nbsp;&nbsp;&nbsp; (1150) |  |
| WPP Finance | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 170000 | EUR | (2629) | (1805) | &nbsp;&nbsp;&nbsp;&nbsp;(824) |  |
| WPP Finance | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 100000 | EUR | (1547) | (1134) | &nbsp;&nbsp;&nbsp;&nbsp;(413) |  |
| WPP Finance | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 96000 | EUR | (1485) | (940) | &nbsp;&nbsp;&nbsp;&nbsp;(545) |  |
| WPP Finance | (1.00)% | &nbsp;&nbsp; Quarterly | 6/20/30 | 51000 | EUR | (789) | (443) | &nbsp;&nbsp;&nbsp;&nbsp;(346) |  |
| Xerox Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/29 | 20000 |  | 7743 | 4875 | &nbsp;&nbsp;&nbsp;&nbsp; 2868 |  |
| Xerox Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/29 | 20000 |  | 7743 | 4925 | &nbsp;&nbsp;&nbsp;&nbsp; 2818 |  |
| Xerox Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/29 | 30000 |  | 11615 | 7349 | &nbsp;&nbsp;&nbsp;&nbsp; 4266 |  |
| Xerox Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/29 | 30000 |  | 11615 | 7500 | &nbsp;&nbsp;&nbsp;&nbsp; 4115 |  |
| Xerox Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/29 | 30000 |  | 11615 | 7575 | &nbsp;&nbsp;&nbsp;&nbsp; 4040 |  |
| Xerox Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/29 | 50000 |  | 19358 | 11250 | &nbsp;&nbsp;&nbsp;&nbsp; 8108 |  |
| Xerox Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/29 | 50000 |  | 19358 | 12375 | &nbsp;&nbsp;&nbsp;&nbsp; 6983 |  |
| Xerox Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/29 | 80000 |  | 30974 | 19700 | &nbsp;&nbsp;&nbsp;&nbsp; 11274 |  |
| Xerox Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/29 | 80000 |  | 30974 | 19804 | &nbsp;&nbsp;&nbsp;&nbsp; 11170 |  |
| Xerox Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/29 | 50000 |  | 19358 | 24250 | &nbsp;&nbsp;&nbsp;&nbsp; (4892) |  |
| Xerox Corp. | (1.00)% | &nbsp;&nbsp; Quarterly | 12/20/29 | 98000 |  | 37943 | 50470 | &nbsp;&nbsp;&nbsp;&nbsp; (12527) |  |
| **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** |
| **Single Name**<br>|  |  |  |  |  |  |  |  |  |
| Hertz Corp. | 5.00% | &nbsp;&nbsp; Quarterly | 12/20/25 | 50000 |  | (1558) | (7750) | &nbsp;&nbsp;&nbsp;&nbsp; 6192 | B  |
| Hertz Corp. | 5.00% | &nbsp;&nbsp; Quarterly | 12/20/25 | 48000 |  | (1496) | (6480) | &nbsp;&nbsp;&nbsp;&nbsp; 4984 | B  |
| Hertz Corp. | 5.00% | &nbsp;&nbsp; Quarterly | 12/20/25 | 49000 |  | (1527) | (5880) | &nbsp;&nbsp;&nbsp;&nbsp; 4353 | B  |
| Hertz Corp. | 5.00% | &nbsp;&nbsp; Quarterly | 12/20/25 | 41000 |  | (1278) | (4920) | &nbsp;&nbsp;&nbsp;&nbsp; 3642 | B  |
| Hertz Corp. | 5.00% | &nbsp;&nbsp; Quarterly | 12/20/25 | 10000 |  | (312) | (1600) | &nbsp;&nbsp;&nbsp;&nbsp; 1288 | B  |
| **Traded Index**<br>|  |  |  |  |  |  |  |  |  |
| CDX.EM.43<sup>e</sup> | 1.00% | &nbsp;&nbsp; Quarterly | 6/20/30 | 1000000 |  | (31956) | (38556) | &nbsp;&nbsp;&nbsp;&nbsp; 6600 | Investment Grade  |
| CDX.NA.HY.44<sup>e</sup> | 5.00% | &nbsp;&nbsp; Quarterly | 6/20/30 | 3000000 |  | 185095 | 166567 | &nbsp;&nbsp;&nbsp;&nbsp; 18528 | Non-Investment Grade  |
| CDX.NA.IG.44<sup>e</sup> | 1.00% | &nbsp;&nbsp; Quarterly | 6/20/30 | 26000000 |  | 521833 | 485404 | &nbsp;&nbsp;&nbsp;&nbsp; 36429 | Investment Grade  |
| ITRX.EUR<sup>e</sup> | 1.00% | &nbsp;&nbsp; Quarterly | 6/20/30 | 25000000 | EUR | 570963 | 537489 | &nbsp;&nbsp;&nbsp;&nbsp; 33474 | Investment Grade  |
| ITRX.EUR.XOVER<sup>e</sup> | 5.00% | &nbsp;&nbsp; Quarterly | 6/20/30 | 9000000 | EUR | 882694 | 813497 | &nbsp;&nbsp;&nbsp;&nbsp; 69197 | Non-Investment Grade  |
| &nbsp;&nbsp;&nbsp; Total Centrally Cleared Swap Contracts | &nbsp;&nbsp;&nbsp; Total Centrally Cleared Swap Contracts | &nbsp;&nbsp;&nbsp; Total Centrally Cleared Swap Contracts | &nbsp;&nbsp;&nbsp; Total Centrally Cleared Swap Contracts |  |  | $2029121 | $2053482 | &nbsp;&nbsp;&nbsp;&nbsp; $(24361) |  |

---

<br> 48 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Credit Default Swap Contracts (continued)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Description**  | **Annual** <br>**Payment** <br>**Rate** <br>**Received** <br>(Paid)  | **Payment** <br>**Frequency**  | **Counterparty** | **Maturity** <br>**Date**  | **Notional** <br>**Amount<sup>a</sup>**  |  | **Value**  | **Upfront** <br>**Payments** <br>(Receipts)  | **Unrealized** <br>**Appreciation** <br>(Depreciation)  | **Rating<sup>b</sup>**  |
| **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  | **OTC Swap Contracts**  |
| **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  | **Contracts to Buy Protection<sup>c</sup>**  |
| **Single Name**  | **Single Name**  | **Single Name**  | **Single Name**  | **Single Name**  | **Single Name**  | **Single Name**  | **Single Name**  | **Single Name**  | **Single Name**  | **Single Name**  |
| American Airlines Inc.  | (5.00)%  | &nbsp;&nbsp; Quarterly  | BZWS  | 6/20/26  | 50000  |  | $(1758)  | $(743)  | &nbsp;&nbsp;&nbsp;&nbsp; $(1015)  |  |
| American Airlines Inc.  | (5.00)%  | &nbsp;&nbsp; Quarterly  | BZWS  | 6/20/27  | 77000  |  | (2275)  | (333)  | &nbsp;&nbsp;&nbsp;&nbsp; (1942)  |  |
| American Airlines Inc.  | (5.00)%  | &nbsp;&nbsp; Quarterly  | BZWS  | 6/20/27  | 97000  |  | (2866)  | (251)  | &nbsp;&nbsp;&nbsp;&nbsp; (2615)  |  |
| American Airlines Inc.  | (5.00)%  | &nbsp;&nbsp; Quarterly  | BZWS  | 6/20/27  | 82000  |  | (2423)  | (142)  | &nbsp;&nbsp;&nbsp;&nbsp; (2281)  |  |
| American Airlines Inc.  | (5.00)%  | &nbsp;&nbsp; Quarterly  | BZWS  | 6/20/27  | 41000  |  | (1211)  | (142)  | &nbsp;&nbsp;&nbsp;&nbsp; (1069) |  |
| American Airlines Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | BZWS | 6/20/27 | 82000 |  | (2423) | (71) | &nbsp;&nbsp;&nbsp;&nbsp; (2352) |  |
| Bayerische | (1.00)% | &nbsp;&nbsp; Quarterly | MSCO | 12/20/25 | 146000 | EUR | (1190) | (327) | &nbsp;&nbsp;&nbsp;&nbsp;(863) |  |
| &nbsp;&nbsp; Government of <br>Argentina | (5.00)% | &nbsp;&nbsp; Quarterly | CITI | 12/20/26 | 195000 |  | 3786 | 53697 | &nbsp;&nbsp;&nbsp;&nbsp; (49911) |  |
| &nbsp;&nbsp; Government of <br>Argentina | (5.00)% | &nbsp;&nbsp; Quarterly | GSCO | 12/20/26 | 408000 |  | 7920 | 69063 | &nbsp;&nbsp;&nbsp;&nbsp; (61143) |  |
| Government of Egypt | (1.00)% | &nbsp;&nbsp; Quarterly | CITI | 6/20/26 | 197000 |  | 4985 | 23165 | &nbsp;&nbsp;&nbsp;&nbsp; (18180) |  |
| Government of Korea | (1.00)% | &nbsp;&nbsp; Quarterly | BZWS | 6/20/30 | 1025000 |  | (15125) | (13678) | &nbsp;&nbsp;&nbsp;&nbsp; (1447) |  |
| Government of Korea | (1.00)% | &nbsp;&nbsp; Quarterly | GSCO | 6/20/30 | 3028000 |  | (105374) | (89843) | &nbsp;&nbsp;&nbsp;&nbsp; (15531) |  |
| Government of Turkey | (1.00)% | &nbsp;&nbsp; Quarterly | BZWS | 6/20/25 | 184000 |  | (364) | 5 | &nbsp;&nbsp;&nbsp;&nbsp;(369) |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | BZWS | 6/20/28 | 72000 |  | (4367) | (4387) | &nbsp;&nbsp;&nbsp;&nbsp; 20 |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | BZWS | 6/20/28 | 41000 |  | (2486) | (2863) | &nbsp;&nbsp;&nbsp;&nbsp; 377 |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | BZWS | 6/20/28 | 35000 |  | (2123) | (2439) | &nbsp;&nbsp;&nbsp;&nbsp; 316 |  |
| &nbsp;&nbsp; K. Hovnanian <br>Enterprises Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | BZWS | 6/20/28 | 36000 |  | (2183) | 1752 | &nbsp;&nbsp;&nbsp;&nbsp; (3935) |  |
| &nbsp;&nbsp; Kingdom of <br>Saudia Arabia  | (1.00)% | &nbsp;&nbsp; Quarterly | GSCO | 6/20/30 | 3750000 |  | (55336) | (39870) | &nbsp;&nbsp;&nbsp;&nbsp; (15466) |  |
| &nbsp;&nbsp; Kingdom of <br>Saudia Arabia | (1.00)% | &nbsp;&nbsp; Quarterly | GSCO | 6/20/30 | 150000 |  | (2213) | (2138) | &nbsp;&nbsp;&nbsp;&nbsp;(75) |  |
| Kobe Steel Ltd. | (1.00)% | &nbsp;&nbsp; Quarterly | GSCO | 6/20/30 | 89518000 | JPY | (7551) | (6932) | &nbsp;&nbsp;&nbsp;&nbsp;(619) |  |
| &nbsp;&nbsp; Nippon Paper <br>Industries Co. | (1.00)% | &nbsp;&nbsp; Quarterly | GSCO | 6/20/30 | 119069000 | JPY | 47644 | 40076 | &nbsp;&nbsp;&nbsp;&nbsp; 7568 |  |
| &nbsp;&nbsp; Nippon Paper <br>Industries Co. | (1.00)% | &nbsp;&nbsp; Quarterly | JPHQ | 12/20/25 | 7366000 | JPY | (229) | (13) | &nbsp;&nbsp;&nbsp;&nbsp;(216) |  |
| &nbsp;&nbsp; Nippon Paper <br>Industries Co. | (1.00)% | &nbsp;&nbsp; Quarterly | MSCO | 12/20/25 | 21750000 | JPY | (676) | 119 | &nbsp;&nbsp;&nbsp;&nbsp;(795) |  |
| &nbsp;&nbsp; Nippon Paper <br>Industries Co. | (1.00)% | &nbsp;&nbsp; Quarterly | MSCO | 12/20/25 | 33598000 | JPY | (1043) | 192 | &nbsp;&nbsp;&nbsp;&nbsp; (1235) |  |
|  People's Republic of China | (1.00)% | &nbsp;&nbsp; Quarterly | GSCO | 6/20/30 | 100000 |  | (2433) | (1081) | &nbsp;&nbsp;&nbsp;&nbsp; (1352) |  |
|  People's Republic of China | (1.00)% | &nbsp;&nbsp; Quarterly | GSCO | 6/20/30 | 100000 |  | (2432) | (990) | &nbsp;&nbsp;&nbsp;&nbsp; (1442) |  |
|  People's Republic of China | (1.00)% | &nbsp;&nbsp; Quarterly | GSCO | 6/20/30 | 49000 |  | (1192) | (506) | &nbsp;&nbsp;&nbsp;&nbsp;(686) |  |
|  People's Republic of China | (1.00)% | &nbsp;&nbsp; Quarterly | MSCO | 6/20/30 | 251000 |  | (6105) | (1357) | &nbsp;&nbsp;&nbsp;&nbsp; (4748) |  |
| Rakuten Group Inc. | (1.00)% | &nbsp;&nbsp; Quarterly | BZWS | 6/20/25 | 6895000 | JPY | (106) | 85 | &nbsp;&nbsp;&nbsp;&nbsp;(191) |  |
| Rakuten Group Inc. | (1.00)% | &nbsp;&nbsp; Quarterly | BZWS | 6/20/25 | 20947000 | JPY | (322) | 390 | &nbsp;&nbsp;&nbsp;&nbsp;(712) |  |
| Rakuten Group Inc. | (1.00)% | &nbsp;&nbsp; Quarterly | CITI | 6/20/25 | 14667000 | JPY | (225) | 120 | &nbsp;&nbsp;&nbsp;&nbsp;(345) |  |
| Rakuten Group Inc. | (1.00)% | &nbsp;&nbsp; Quarterly | JPHQ | 6/20/25 | 16041000 | JPY | (247) | 79 | &nbsp;&nbsp;&nbsp;&nbsp;(326) |  |
| Rakuten Group Inc. | (1.00)% | &nbsp;&nbsp; Quarterly | JPHQ | 6/20/25 | 14053000 | JPY | (216) | 166 | &nbsp;&nbsp;&nbsp;&nbsp;(382) |  |
| Rakuten Group Inc. | (1.00)% | &nbsp;&nbsp; Quarterly | MSCO | 6/20/25 | 3000000 | JPY | (46) | 20 | &nbsp;&nbsp;&nbsp;&nbsp;(66) |  |
| Rakuten Group Inc. | (1.00)% | &nbsp;&nbsp; Quarterly | MSCO | 6/20/25 | 6444000 | JPY | (99) | 31 | &nbsp;&nbsp;&nbsp;&nbsp;(130) |  |
| Rakuten Group Inc. | (1.00)% | &nbsp;&nbsp; Quarterly | MSCO | 6/20/25 | 7549000 | JPY | (116) | 71 | &nbsp;&nbsp;&nbsp;&nbsp;(187) |  |
| Rakuten Group Inc. | (1.00)% | &nbsp;&nbsp; Quarterly | MSCO | 6/20/25 | 12200000 | JPY | (187) | 78 | &nbsp;&nbsp;&nbsp;&nbsp;(265) |  |
| Rakuten Group Inc. | (1.00)% | &nbsp;&nbsp; Quarterly | MSCO | 6/20/25 | 7271000 | JPY | (112) | 83 | &nbsp;&nbsp;&nbsp;&nbsp;(195) |  |
| Rakuten Group Inc. | (1.00)% | &nbsp;&nbsp; Quarterly | MSCO | 6/20/25 | 14482000 | JPY | (223) | 91 | &nbsp;&nbsp;&nbsp;&nbsp;(314) |  |
| Rakuten Group Inc. | (1.00)% | &nbsp;&nbsp; Quarterly | MSCO | 6/20/25 | 14542000 | JPY | (223) | 198 | &nbsp;&nbsp;&nbsp;&nbsp;(421) |  |
|  Univision Communications Inc. | (5.00)% | &nbsp;&nbsp; Quarterly | GSCO | 6/20/30 | 121000 |  | (4635) | (4272) | &nbsp;&nbsp;&nbsp;&nbsp;(363) |  |

---

<br> franklintempleton.com Annual Report 49 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Credit Default Swap Contracts (continued)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Description**  | **Annual** <br>**Payment** <br>**Rate** <br>**Received** <br>(Paid)  | **Payment** <br>**Frequency**  | **Counterparty** | **Maturity** <br>**Date**  | **Notional** <br>**Amount<sup>a</sup>**  | **Value**  | **Upfront** <br>**Payments** <br>(Receipts)  | **Unrealized** <br>**Appreciation** <br>(Depreciation)  | **Rating<sup>b</sup>**  |
| **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** | **Contracts to Sell Protection<sup>c,d</sup>** |
| **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** | **Single Name** |
| Government of Egypt | 1.00% | &nbsp;&nbsp; Quarterly | BZWS | 12/20/29 | &nbsp;&nbsp; 168000 | $(26089) | $(27272) | &nbsp;&nbsp;&nbsp;&nbsp; $1183 | B-  |
| Government of Egypt | 1.00% | &nbsp;&nbsp; Quarterly | GSCO | 6/20/29 | &nbsp;&nbsp; 2059000 | (276511) | (274423) | &nbsp;&nbsp;&nbsp;&nbsp; (2088) | B-  |
| Government of Egypt | 1.00% | &nbsp;&nbsp; Quarterly | GSCO | 6/20/29 | &nbsp;&nbsp; 265000 | (35588) | (39414) | &nbsp;&nbsp;&nbsp;&nbsp; 3826 | B-  |
| Government of Egypt | 1.00% | &nbsp;&nbsp; Quarterly | JPHQ | 12/20/29 | &nbsp;&nbsp; 177000 | (27486) | (28732) | &nbsp;&nbsp;&nbsp;&nbsp; 1246 | B-  |
|  Government of Ivory Coast | 1.00% | &nbsp;&nbsp; Quarterly | BZWS | 6/20/30 | &nbsp;&nbsp; 462000 | (61475) | (71657) | &nbsp;&nbsp;&nbsp;&nbsp; 10182 | BB  |
| &nbsp;&nbsp;&nbsp; Total OTC Swap Contracts | &nbsp;&nbsp;&nbsp; Total OTC Swap Contracts | &nbsp;&nbsp;&nbsp; Total OTC Swap Contracts | &nbsp;&nbsp;&nbsp; Total OTC Swap Contracts | &nbsp;&nbsp;&nbsp; Total OTC Swap Contracts |  | $(594949) | $(424395) | &nbsp;&nbsp;&nbsp;&nbsp; $(170554) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Credit Default Swap Contracts |  | $1434172 | $1629087 | &nbsp;&nbsp;&nbsp;&nbsp; $(194915) |  |

---

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

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

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

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

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

At May 31, 2025, the Fund had the following interest rate swap contracts outstanding. See Note 1(d).

**Interest Rate Swap Contracts** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Description** | **Payment** <br>**Frequency** | **Maturity**<br>**Date** | **Notional**<br>**Amount<sup>\*</sup>** |  | **Value/Unrealized** <br>**Appreciation** <br>(Depreciation)  |
| **Centrally Cleared Swap Contracts**<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Received Fixed 45.75%<br>Pay Floating rate TLREF | Quarterly | 7/14/25 | 56000000 | TRY | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $17506  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 10.23%<br>Pay Floating Banxico Mexico 1 Month Rate | Monthly | 12/31/25 | 38400000 | MXN | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23559  |
| &nbsp;&nbsp;&nbsp;&nbsp; Received Fixed 43.51%<br>Pay Floating rate TLREF | Quarterly | 4/16/26 | 55468653 | TRY | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1509)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 10.23%<br>Pay Floating Banxico Mexico 1 Month Rate | Monthly | 6/17/26 | 38400000 | MXN | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22281  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 7.02%<br>Pay Floating rate 3-Month-JIBAR | Quarterly | 12/18/26 | 34983147 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(322)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 13.29%<br>Pay Floating BRLCDI | Annually | 1/04/27 | 2980054 | BRL | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4994  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 13.41%<br>Pay Floating BRLCDI | Annually | 1/04/27 | 5875629 | BRL | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13439  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 16.25%<br>Pay Floating BRLCDI | Annually | 1/04/27 | 9083263 | BRL | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (51619)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 7.98%<br>Pay Floating Rate COIR | Quarterly | 3/19/27 | 5531819764 | COP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6364)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 8.02%<br>Pay Floating Rate COIR | Quarterly | 3/19/27 | 6276246033 | COP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8307)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 3.70%<br>Pay Floating rate SOFR | Annually | 6/03/27 | 6310000 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 4.15%<br>Pay Floating rate SOFR | Annually | 11/22/28 | 5700000 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 104189  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 13.44%<br>Pay Floating BRLCDI | Annually | 1/02/29 | 14380185 | BRL | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3846)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 3.93%<br>Pay Floating rate SOFR | Annually | 3/15/29 | 5469600 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 66337  |

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<br> 50 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Interest Rate Swap Contracts (continued)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Description** | **Payment** <br>**Frequency** | **Maturity**<br>**Date** | **Notional**<br>**Amount<sup>\*</sup>** |  | **Value/Unrealized** <br>**Appreciation** <br>(Depreciation)  |
| **Centrally Cleared Swap Contracts (continued)**<br>|  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 3.47%<br>Pay Floating rate 1-Day EONIA | Annually | 12/18/29 | 13815899 | CZK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $5059  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 3.50% <br>Pay Floating rate 1-Day EONIA | Annually | 12/18/29 | 22360157 | CZK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9409  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 5.32%<br>Pay Floating rate 6-Month-BUBOR | Annually | 12/18/29 | 275090629 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (23063)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 5.41%<br>Pay Floating rate 6-Month-BUBOR | Annually | 12/18/29 | 447284564 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (33194)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 5.42%<br>Pay Floating rate 6-Month-BUBOR | Annually | 12/18/29 | 182487019 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (13241)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 5.44%<br>Pay Floating rate 6-Month-BUBOR | Annually | 12/18/29 | 182228417 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (12822)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 5.58%<br>Pay Floating rate 6-Month-BUBOR | Annually | 12/18/29 | 59264095 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3257)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 5.80%<br>Pay Floating rate 6-Month-BUBOR | Annually | 12/18/29 | 126424928 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3923)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 5.80%<br>Pay Floating rate 6-Month-BUBOR | Annually | 12/18/29 | 85998786 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2668)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 5.83%<br>Pay Floating rate 6-Month-BUBOR | Annually | 12/18/29 | 143221562 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3971)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 7.68%<br>Pay Floating Banxico Mexico 1 Month Rate | Monthly | 6/12/30 | 30200000 | MXN | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2960)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 3.26%<br>Pay Floating KLIBOR | Quarterly | 6/18/30 | 6126158 | MYR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3171  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 3.26%<br>Pay Floating KLIBOR | Quarterly | 6/18/30 | 5273842 | MYR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3046  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 5.83%<br>Pay Floating rate 6-Month-BUBOR | Annually | 12/18/34 | 237699992 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34165  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 5.85%<br>Pay Floating rate 6-Month-BUBOR | Annually | 12/18/34 | 100982120 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14159  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receive Fixed 5.87%<br>Pay Floating rate 6-Month-BUBOR | Annually | 12/18/34 | 101317888 | HUF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13901  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Interest Rate Swap Contracts |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $164149 |

---

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

At May 31, 2025, the Fund had the following total return swap contracts outstanding. See Note 1(d).

**Total Return Swap Contracts** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts** | **OTC Swap Contracts** | **OTC Swap Contracts** | **OTC Swap Contracts** | **OTC Swap Contracts** | **OTC Swap Contracts** | **OTC Swap Contracts** |
| **Currency Contracts - Long<sup>a</sup>** | **Currency Contracts - Long<sup>a</sup>** | **Currency Contracts - Long<sup>a</sup>** | **Currency Contracts - Long<sup>a</sup>** | **Currency Contracts - Long<sup>a</sup>** | **Currency Contracts - Long<sup>a</sup>** | **Currency Contracts - Long<sup>a</sup>** |
| Cross Asset Trend | Fixed 0.00% | Monthly | BNPP | 6/30/25 | 4818389 | &nbsp;&nbsp;&nbsp;&nbsp; $(24264)  |
| Cross Asset Trend | Fixed 0.00% | Monthly | BNPP | 6/30/25 | 631866 | &nbsp;&nbsp;&nbsp;&nbsp; (3182)  |
| Cross Asset Trend | Fixed 0.00% | Monthly | BNPP | 6/30/25 | 9440513 | &nbsp;&nbsp;&nbsp;&nbsp; (47540)  |
| FX G10 Carry | Fixed 0.00% | Monthly | CITI | 6/30/25 | 8090794 | &nbsp;&nbsp;&nbsp;&nbsp; 78538  |
| FX G10 Carry | Fixed 0.00% | Monthly | CITI | 6/30/25 | 772520 | &nbsp;&nbsp;&nbsp;&nbsp; 7499  |
| FX G10 Value | Fixed 0.03% | Monthly | CITI | 6/30/25 | 29691700 | &nbsp;&nbsp;&nbsp;&nbsp; (66220)  |
| FX G10 Value | Fixed 0.03% | Monthly | CITI | 6/30/25 | 3103296 | &nbsp;&nbsp;&nbsp;&nbsp; (6921)  |
|  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp; (62090) |

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<br> franklintempleton.com Annual Report 51 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup>** | **Equity Contracts - Long<sup>a</sup>** | **Equity Contracts - Long<sup>a</sup>** | **Equity Contracts - Long<sup>a</sup>** | **Equity Contracts - Long<sup>a</sup>** | **Equity Contracts - Long<sup>a</sup>** | **Equity Contracts - Long<sup>a</sup>** | **Equity Contracts - Long<sup>a</sup>** |
| 3i Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 88193 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $38604  |
| A1 Telekom Austria AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 30139 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3855  |
| A2A SpA | Euro STR + 0.35% | Monthly | JPHQ | 8/12/25 | 235408 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 43033  |
| ABRDN PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 7/08/25 | 260537 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 46798  |
| AcadeMedia AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 2274455 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2631  |
| Acciona SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/25 | 262511 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 74910  |
| AddLife AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 8/02/25 | 4555132 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 115438  |
| Adesso SE | Euro STR + 0.35% | Monthly | JPHQ | 1/07/26 | 87810 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(189)  |
| Adidas AG | Euro STR + 0.35% | Monthly | JPHQ | 10/08/25 | 330026 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 66262  |
| Admiral Group | 1-Day SONIA + 0.275% | Monthly | MSCO | 4/03/26 | 41918 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10446  |
| Aeci Limited | 1-Day SABOR + 0.70% | Monthly | MSCS | 7/17/25 | 2542279 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9342  |
| Aedas Homes SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 4/01/26 | 166094 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9295  |
| Aedifica | Euro STR + 0.35% | Monthly | JPHQ | 7/14/25 | 296032 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 41747  |
| Aegon | Euro STR + 0.35% | Monthly | JPHQ | 4/03/26 | 191304 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 52228  |
| AIB Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 45947 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18823  |
| Aker Solutions ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 5185380 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10513  |
| Albaraka Turk Katilim Bankasi AS | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/27/25 | 95867 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1705)  |
| Alior Bank SA | 1-Day FEDEF + 1.25% | Monthly | MSCO | 1/06/26 | 340188 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 47294  |
| Alleima AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 12/06/25 | 3234724 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (38717)  |
| ALSO Holding AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/15/25 | 375028 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 90322  |
| Alzchem Group AG | Euro STR + 0.35% | Monthly | JPHQ | 11/22/25 | 130213 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 56633  |
| Amasten Fastighets AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 11/27/25 | 853089 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2882)  |
| Ambea AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 5614551 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (35503)  |
| Ambu A/S | 1-Week CIBOR + 0.275% | Monthly | SEBA | 9/10/25 | 839626 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (21730)  |
| Amedeo Air Four Plus | 1-Day SONIA + 0.275% | Monthly | MSCO | 4/09/26 | 35601 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22099  |
| Amperex Technology Ltd. | 1-Day FEDEF + 0.30% | Monthly | MSCS | 2/05/26 | 1829913 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (72238)  |
| AMS-Osram AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/25 | 314979 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 174287  |
| Anadolu Grubu | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/27/25 | 160163 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (54956)  |
| Anora Group PLC | Euro STR + 0.275% | Monthly | SEBA | 12/23/25 | 60663 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5851)  |
| AO World PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 12/02/25 | 186990 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 66838  |
| Aquafil | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 62301 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11205  |
| Aramis Group | 1-Day EONIA + 0.275% | Monthly | MSCO | 4/03/26 | 31958 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3299  |
| Arctic | 1-Day FEDEF + 0.30% | Monthly | MSCS | 11/27/25 | 53078 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (19367)  |
| Argan | 1-Day EONIA + 0.275% | Monthly | MSCO | 9/11/25 | 127247 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (11542)  |
| Argenx SE | Euro STR + 0.35% | Monthly | JPHQ | 2/05/26 | 54333 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1498  |
| Arjo AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 5826710 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (118523)  |
| Aroundtown SA | Euro STR + 0.35% | Monthly | JPHQ | 9/12/25 | 377214 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 93639  |
| ARYZTA | 1-Day SARON + 0.35% | Monthly | JPHQ | 4/26/26 | 519142 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 109515  |
| ASBIS Kypros Ltd. | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/12/25 | 63009 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9610  |
| Ascencio | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 120733 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16419  |
| Ascom Holding AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 65818 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22732  |
| ASM International | Euro STR + 0.35% | Monthly | JPHQ | 6/06/26 | 268233 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 102398  |
| Asseco Poland SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/25 | 162436 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 249961  |
| Astral Foods Ltd. | 1-Day SABOR + 0.30% | Monthly | MSCS | 7/17/25 | 3127613 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9099  |
| Atoss Software AG | Euro STR + 0.35% | Monthly | JPHQ | 8/01/25 | 289317 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27098  |

---

<br> 52 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** |
|  Atresmedia Corporacion de Medios de Comunicacion SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/25 | 236856 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $155133  |
| Attendo AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 1/08/26 | 3998977 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3488  |
| Audax Renovables SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 4/24/26 | 111951 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21023  |
| Aumann AG | Euro STR + 0.35% | Monthly | JPHQ | 1/22/26 | 70772 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6987  |
| Austevoll Seafood ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/12/25 | 3427678 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (14572)  |
| Autoneum | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/25 | 208362 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 113723  |
| Avation PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 2/24/26 | 38060 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1120  |
| AVI Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 10/03/25 | 3325406 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4713  |
| Avio | Euro STR + 0.35% | Monthly | JPHQ | 4/14/26 | 32400 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6972  |
| Axa SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/25 | 336195 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 81176  |
| B2 Impact ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 1586716 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49522  |
| Babcock International | 1-Day SONIA + 0.275% | Monthly | MSCO | 6/10/26 | 103174 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 119071  |
| Bakkavor Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCO | 5/15/26 | 106402 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 54087  |
| Balfour Beatty | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/18/25 | 235444 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 140404  |
| Banca de Sabadell SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 10/10/25 | 191205 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 95252  |
| Banca Ifis SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 397602 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 119062  |
| Banca Popolare di Sondrio | 1-Month EURIBOR + 0.40% | Monthly | BZWS | 2/16/26 | 531568 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7597  |
| Banco Bilbao Vizcaya Argentaria SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 9/30/25 | 268173 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24322  |
| Bank of Georgia Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/31/25 | 241197 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 181364  |
| Barclays PLC | 1-Day SONIA + 0.44% | Monthly | MSCS | 7/17/25 | 146833 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 82485  |
| Basilea Pharmaceutica AG | Euro STR + 6.75% | Monthly | JPHQ | 5/08/26 | 347574 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 57882  |
| Bavarian Nordic A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 11/27/25 | 2002254 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18327  |
| BAWAG Group AG | Euro STR + 0.35% | Monthly | JPHQ | 4/03/26 | 246287 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 82547  |
| Bayer AG | Euro STR + 0.35% | Monthly | JPHQ | 9/04/25 | 90097 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25177  |
| BB Biotech AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 4/11/26 | 355177 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 50921  |
| BE Group AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 431910 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3157)  |
| Beazley PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 5/07/26 | 276029 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19954  |
| Bekaert SA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 198171 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 50791  |
| Benefit | 1-Day FEDEF + 1.25% | Monthly | MSCS | 9/26/25 | 144621 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11676  |
| Beneteau | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/25 | 106611 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (16425)  |
| Betsson AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 7/17/25 | 5404894 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 102448  |
| BIC | 1-Day EONIA + 0.30% | Monthly | MSCS | 4/17/26 | 267293 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (30057)  |
| Bilfinger SE | Euro STR + 0.35% | Monthly | JPHQ | 12/06/25 | 384846 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 134978  |
| Billerud AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 7/29/25 | 5854939 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (27749)  |
| Billington Holdings | 1-Day SONIA + 0.275% | Monthly | MSCO | 11/03/25 | 19389 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1785)  |
| BioGaia AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 1849340 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (26091)  |
| BKW AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 12/12/25 | 91837 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7296  |
| Bloomsbury Publishing PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 213289 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (53773)  |
| BNP Paribas SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/25 | 261964 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 88889  |
| Bogdanka SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 8/19/25 | 117005 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (20634)  |
| Bonheur ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 8/28/25 | 795450 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5950  |
| BPER Banca SpA | Euro STR + 0.35% | Monthly | JPHQ | 9/25/25 | 150609 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 56837  |
| Bravida Holding AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/01/25 | 3392704 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10562)  |
| Bredband2 i Skandinavien AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 5/19/26 | 183175 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 221  |
| Breedon Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 120425 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3450  |

---

<br> franklintempleton.com Annual Report 53 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** |
| Brickability Group PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 12/08/25 | 26149 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $5717  |
| Bulten AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 10/18/25 | 728527 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (11502)  |
| Burkhalter Holdings | 1-Day SARON + 0.35% | Monthly | JPHQ | 9/12/25 | 90956 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28746  |
| Buzzi Unicem SpA | Euro STR + 0.35% | Monthly | JPHQ | 8/12/25 | 64762 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9311  |
| BW LPG Ltd | 1-Week NIBOR + 0.275% | Monthly | SEBA | 4/15/26 | 2631106 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (16390)  |
| Cairn Homes PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 220003 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 148764  |
| Cancom SE | Euro STR + 0.35% | Monthly | JPHQ | 1/07/26 | 286289 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 64657  |
| Care Property Invest | Euro STR + 0.35% | Monthly | JPHQ | 12/16/25 | 75981 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13038  |
| Cargotec | Euro STR + 0.275% | Monthly | SEBA | 8/23/25 | 258724 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10102)  |
| Carmila | 1-Day EONIA + 0.30% | Monthly | MSCS | 8/07/25 | 224933 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 50034  |
| Carnival PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 6/10/26 | 215498 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 87209  |
| Ceconomy AG | Euro STR + 0.35% | Monthly | JPHQ | 7/05/25 | 299894 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (22167)  |
| Cementir Holding NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 284380 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 47536  |
| Centrica PLC ORD | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 359097 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 78879  |
| CEWE Stiftung & Co. KGaA | Euro STR + 0.35% | Monthly | JPHQ | 3/18/26 | 125435 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8641  |
| Chrysalis Investments | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/25 | 241614 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 56055  |
| Claranova | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/25 | 28330 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34362  |
| Clarkson PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 5/06/26 | 163463 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4426)  |
| Clas Ohlson AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 4280713 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 88633  |
| Cliq Digital AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 46325 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6813)  |
| CMC Markets | 1-Day SONIA + 0.275% | Monthly | MSCO | 5/14/26 | 67037 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4690  |
| Coca-Cola HBC AG-DI | 1-Day SONIA + 0.35% | Monthly | MSCS | 12/04/25 | 107974 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 56065  |
| CoinShares International | 1-Week STIBOR + 0.275% | Monthly | SEBA | 5/19/26 | 630190 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2424  |
| Colruyt Group NV | Euro STR + 0.35% | Monthly | JPHQ | 12/23/25 | 68742 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(462)  |
| Commerzbank AG | Euro STR + 0.35% | Monthly | JPHQ | 12/18/25 | 164578 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 56170  |
|  Companhia De Saneamento Basico Ord | 1-Day FEDEF + 0.60% | Monthly | MSCS | 7/10/25 | 1158794 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4068  |
| Computacenter PLC ORD | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/15/25 | 445541 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (22458)  |
| Conduit Holdings Ltd. | 1-Day SONIA + 0.35% | Monthly | MSCS | 10/17/25 | 253950 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (88908)  |
|  Construcciones y Auxiliar de Ferrocarriles | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/25 | 273540 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 139133  |
| Continental AG | Euro STR + 0.35% | Monthly | JPHQ | 11/03/25 | 236354 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 84239  |
| Corbion | Euro STR + 0.35% | Monthly | JPHQ | 9/03/25 | 286384 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20604  |
| Corem Property Group | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/25 | 1089058 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5394  |
| Costain Group | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/15/25 | 133260 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71252  |
| Costain Group | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/25 | 568 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 876  |
| Crayon Group Holding ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 3371783 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 78988  |
| Currys PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/25 | 223582 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 190432  |
| &nbsp;&nbsp;&nbsp;&nbsp; Danieli & C Officine Meccaniche <br>SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 348624 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 148881  |
| Danske Bank A/S | 1-Week CIBOR + 0.275% | Monthly | SEBA | 11/13/25 | 1738319 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24297  |
| Datatec Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 11/27/25 | 2658469 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 66299  |
| DBA Group | Euro STR + 0.35% | Monthly | JPHQ | 11/03/25 | 50055 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6986  |
| DCC PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 151104 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (18158)  |
| Deceuninck | Euro STR + 0.35% | Monthly | JPHQ | 11/07/25 | 52206 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3875  |
| Dedicare AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 5/27/26 | 433895 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5164)  |

---

<br> 54 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** |
| Deliveroo PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 4/14/26 | 47139 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $15825  |
| DEME Group | Euro STR + 0.35% | Monthly | JPHQ | 8/22/25 | 183875 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32219  |
| Deutsche Bank AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 361295 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 142230  |
| Deutsche Wohnen SE | Euro STR + 0.35% | Monthly | JPHQ | 11/27/25 | 249322 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 39950  |
| Develia SA | 1-Day FEDEF + 1.25% | Monthly | MSCO | 12/19/25 | 37164 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21409  |
| Digital Value SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 81031 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71289  |
| Distribuidora Internacional | 1-Day EONIA + 0.275% | Monthly | MSCO | 2/18/26 | 61100 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28841  |
| Diys Fastigheter AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/12/25 | 1666357 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;(302)  |
| DKSH Switzerland Ltd. | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/25 | 287969 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 53315  |
| Dom Development | 1-Day FEDEF + 1.25% | Monthly | MSCS | 11/28/25 | 53287 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26406  |
| Dormakaba | 1-Day SARON + 0.35% | Monthly | JPHQ | 3/04/26 | 389664 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 109880  |
| Dr. Martens PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 3/02/26 | 91851 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(490)  |
| Drax Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 481402 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 157421  |
| Duerr AG | Euro STR + 0.35% | Monthly | JPHQ | 2/17/26 | 262848 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71487  |
| Easyjet PLC | 1-Day SONIA + 0.35% | Monthly | MSCO | 7/17/25 | 278470 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 39940  |
| Ebro Foods | 1-Day EONIA + 0.35% | Monthly | MSCO | 12/04/25 | 291001 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 46753  |
| Econocom Group SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 46117 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10530  |
| EFG International AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/25 | 384804 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 173912  |
| Elementis PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/30/25 | 333918 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3881)  |
| Elior Group | 1-Day EONIA + 0.275% | Monthly | MSCO | 9/08/25 | 378989 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (17395)  |
| Elmera Group ASA | 1-Week NIBOR + 0.275% | Monthly | SEBA | 1/27/26 | 1353902 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10740)  |
| Elmos Semiconductor SE | Euro STR + 0.35% | Monthly | JPHQ | 7/18/25 | 211342 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 83358  |
| Elopak ASA | 1-Week NIBOR + 0.275% | Monthly | SEBA | 5/08/26 | 1479526 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21265  |
| Endesa SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 1/13/26 | 383981 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 177642  |
| Enea AB | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/25 | 220623 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 184145  |
| Enel Group | Euro STR + 0.35% | Monthly | JPHQ | 10/28/25 | 50180 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10100  |
| Enel Group | 1-Day EONIA + 0.40% | Monthly | MSCS | 12/05/25 | 1412525 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42369  |
| Energy Transfer LP | SOFR + 1.01% | Monthly | GSCO | 2/14/26 | 297971 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3616  |
| Engie SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 8/30/25 | 82798 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31098  |
| Engie SA | 1-Day EONIA + 0.40% | Monthly | MSCO | 9/25/25 | 900854 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37232  |
| EnQuest PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/25 | 252077 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (76303)  |
| Entra ASA | 1-Week NIBOR + 0.275% | Monthly | SEBA | 5/05/26 | 830178 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2263)  |
| Equinor ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 4003754 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (38795)  |
| Equities Property Fund | 1-Day SABOR + 0.70% | Monthly | MSCO | 9/15/25 | 1816985 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16798  |
| Equity Flows | Fixed 0.00% | Monthly | JPHQ | 6/30/25 | 205064 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1139)  |
| Equity Flows | Fixed 0.10% | Monthly | JPHQ | 6/30/25 | 2488854 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (13822)  |
| Equity Low Beta | Fixed (0.188)% | Monthly | DBAB | 6/30/25 | 4309433 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (149922)  |
| Equity Low Beta | Fixed 0.00% | Monthly | DBAB | 6/30/25 | 439108 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (15276)  |
| Equity Momentum | Fixed (0.188)% | Monthly | DBAB | 6/30/25 | 9746512 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35877  |
| Equity Momentum | Fixed 0.00% | Monthly | DBAB | 6/30/25 | 1124297 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4139  |
| Equity Value | Fixed 0.00% | Monthly | DBAB | 6/30/25 | 1640640 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (42012)  |
| Equity Value | Fixed (0.188)% | Monthly | DBAB | 6/30/25 | 15672465 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (401329)  |
| Ericsson | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 4666470 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8280)  |
| Eurocash | 1-Day FEDEF + 1.25% | Monthly | MSCS | 1/06/26 | 104355 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2597)  |
| Eurocell PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 9/24/25 | 46487 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3527)  |
| Eurocommercial Properties NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 151210 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34459  |

---

<br> franklintempleton.com Annual Report 55 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** |
| Eurofins Scientific | 1-Day EONIA + 0.275% | Monthly | MSCO | 7/17/25 | 191663 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $53294  |
| Everplay Group PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 4/15/26 | 61378 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6918  |
| EVN AG | Euro STR + 0.35% | Monthly | JPHQ | 3/18/26 | 236017 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 46262  |
| Evonik Industries AG | Euro STR + 0.35% | Monthly | JPHQ | 8/11/25 | 258370 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34831  |
| EVS Broadcast Equipment SA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 79346 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 932  |
| Exor NV | Euro STR + 0.35% | Monthly | JPHQ | 2/28/26 | 386983 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 53998  |
| Fairvest Litmited | 1-Day SABOR + 0.70% | Monthly | MSCO | 9/15/25 | 1800865 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11790  |
| Finnair OYJ | Euro STR + 0.275% | Monthly | SEBA | 4/15/26 | 155774 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (30818)  |
| FirstGroup PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 8/24/25 | 335787 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 67725  |
| Flow Traders | Euro STR + 0.35% | Monthly | JPHQ | 4/26/26 | 66377 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10288  |
| ForFarmers | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 175507 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11733  |
| Fortress REIT Ltd. | 1-Day SABOR + 0.50% | Monthly | MSCS | 11/27/25 | 4303178 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 57200  |
| Forvia | 1-Day EONIA + 0.30% | Monthly | MSCS | 12/02/25 | 383552 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (14925)  |
| Foxtons Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/18/25 | 69898 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 54578  |
| Fresenius SE & Co. KGaA | Euro STR | Monthly | JPHQ | 3/02/26 | 163082 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35992  |
| Fuchs Petrolub SE | Euro STR + 0.35% | Monthly | JPHQ | 4/25/26 | 236748 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32093  |
| Fugro NV | Euro STR + 0.35% | Monthly | JPHQ | 5/27/26 | 99661 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6859)  |
| Future PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 2/27/26 | 178297 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (54579)  |
| Galliford Try Holdings PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 93236 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 88385  |
| Gamma Communications PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 6/05/26 | 198289 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (22296)  |
| <sup>b,c</sup>Gazprom PJSC ADR | 1-Day FEDEF | Monthly | MSCS | 1/31/26 | 173903 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| GEA Group | Euro STR + 0.35% | Monthly | JPHQ | 6/05/26 | 71804 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16224  |
| Genmab A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 2991649 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9131  |
| Gestamp Automocion SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/25 | 512766 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (119533)  |
| Gimv | Euro STR + 0.35% | Monthly | JPHQ | 4/14/26 | 184428 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 54384  |
| Greencore Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/12/25 | 315555 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 336880  |
| Greenyard | Euro STR + 0.35% | Monthly | JPHQ | 10/24/25 | 3077 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 192  |
| Grifols SA | 1-Day EONIA + 0.35% | Monthly | MSCO | 3/25/26 | 355559 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13162  |
| Grupa Azoty SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/25 | 76525 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13346  |
| Grupo Catalana Occidente | 1-Day EONIA + 0.35% | Monthly | MSCS | 11/11/25 | 62315 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20794  |
| Gurit | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/06/25 | 50372 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19833  |
| H&M Hennes & Mauritz AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 8/15/25 | 1932993 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2866  |
| H. Lundbeck A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 11/27/25 | 4149004 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (55681)  |
| Hafnia Ltd. | 1-Week NIBOR + 0.275% | Monthly | SEBA | 4/15/26 | 3267462 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31384  |
| Hal Trust | Euro STR + 0.35% | Monthly | JPHQ | 4/16/26 | 143569 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12345  |
| Hammerson PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 11/27/25 | 193273 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 30623  |
| Hannover Rueck SE | Euro STR + 0.35% | Monthly | JPHQ | 2/27/26 | 62382 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9387  |
| Harmony Gold Mining Co. Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCO | 3/06/26 | 1909264 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 45554  |
| Heidelberg Materials | 1-Day EONIA + 0.40% | Monthly | MSCS | 3/09/26 | 513785 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (54905)  |
| HeidelbergCement AG | 1-Month EURIBOR + 0.40% | Monthly | JPHQ | 7/17/25 | 136707 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31010  |
| Heijmans NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 373516 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 254246  |
| HelloFresh SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 176783 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 74568  |
| Hera | Euro STR + 0.35% | Monthly | JPHQ | 1/10/26 | 60174 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13352  |
| Hiag Immobilien | 1-Day SARON + 0.35% | Monthly | JPHQ | 9/12/25 | 138713 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17708  |
| Hikma Pharmaceuticals PLC | 1-Day SONIA + 0.35% | Monthly | MSCO | 1/08/26 | 234129 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32721  |
| Hilton Food Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 10/18/25 | 323393 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38543  |

---

<br> 56 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** |
| Hoegh Autoliners AS | 1-Week NIBOR + 0.275% | Monthly | SEBA | 4/26/26 | 369456 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $1721  |
| Hoist Finance AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/25 | 2675512 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 70637  |
| Holcim Ltd. | 1-Day SARON + 0.35% | Monthly | JPHQ | 5/09/26 | 265958 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 39631  |
| HORNBACH Holding AG & Co. KGaA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 329588 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20986  |
| Hugo Boss AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 347419 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4060  |
| Huhtamaki OYJ | Euro STR + 0.275% | Monthly | SEBA | 1/30/26 | 503048 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (39540)  |
| Humana AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 1226318 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (26559)  |
| Husqvarna AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 9/25/25 | 3053052 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8485)  |
| HUUUGE Inc. | 1-Day FEDEF + 1.25% | Monthly | MSCS | 7/01/25 | 86912 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (19659)  |
| hVIVO PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 5/27/26 | 79781 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (59222)  |
| IG Design Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/25 | 56117 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4214)  |
| Incap Corp. | Euro STR + 0.28% | Monthly | SEBA | 8/22/25 | 49953 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2746)  |
| Indra Sistemas SA | 1-Day EONIA + 0.35% | Monthly | MSCS | 7/17/25 | 244346 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 296836  |
| Indus-Holding AG | Euro STR + 0.35% | Monthly | JPHQ | 10/11/25 | 107990 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7362  |
| Inmobiliaria Colonial | 1-Day EONIA + 0.35% | Monthly | MSCS | 11/27/25 | 106240 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6856  |
| Instone Real Estate Group SE | Euro STR + 0.35% | Monthly | JPHQ | 12/12/25 | 56930 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15908  |
|  International Consolidated Airlines Group SA | 1-Day SONIA + 0.30% | Monthly | MSCS | 5/27/26 | 195659 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 183201  |
| Intesa Sanpaolo SpA | Euro STR + 0.35% | Monthly | JPHQ | 4/22/26 | 133992 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 39228  |
| Ionos Group SE | Euro STR + 0.35% | Monthly | JPHQ | 11/06/25 | 275407 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 177925  |
| ISS A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 11/27/25 | 810436 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6357  |
| Iveco | Euro STR + 0.35% | Monthly | JPHQ | 11/28/25 | 375743 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 156506  |
| Jacquet Metals SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/25 | 23937 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5612  |
| JBS SA | 1-Day FEDEF + 0.60% | Monthly | BZWS | 4/20/26 | 529276 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6584)  |
| JBS SA | 1-Day FEDEF + 0.60% | Monthly | MSCS | 4/28/26 | 195559 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3036  |
| JCDecaux SE | 1-Day EONIA + 0.30% | Monthly | MSCS | 11/07/25 | 249718 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (27978)  |
| Jenoptik AG | Euro STR + 0.35% | Monthly | JPHQ | 8/19/25 | 122488 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36590  |
| Jet2 PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/18/25 | 390472 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 221150  |
| Johnson Service Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 6/07/26 | 157414 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21516  |
| JOST Werke SE | Euro STR + 0.35% | Monthly | JPHQ | 7/05/25 | 128068 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22095  |
| Just Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/25 | 243172 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 238368  |
| Kardex | 1-Day SARON + 0.35% | Monthly | JPHQ | 9/12/25 | 163905 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 51534  |
| Kaufman ET Broad | 1-Day EONIA + 0.30% | Monthly | MSCS | 12/02/25 | 157381 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17486  |
| Keller Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 81960 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17228  |
| Kemira OYJ | Euro STR + 0.275% | Monthly | SEBA | 7/17/25 | 485017 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (40144)  |
| Kenmare Resources PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 87929 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5286)  |
| Kernel Holding SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/25 | 15686 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21741  |
| Koc Holding AS | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/25 | 229289 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (41563)  |
| Konecranes OYJ | Euro STR + 0.28% | Monthly | SEBA | 11/22/25 | 381906 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (11227)  |
| Kongsberg Gruppen ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 2681783 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37796  |
| Koninklijke Ahold Delhaize NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 353561 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 53052  |
| Koninklijke BAM Groep NV | Euro STR + 0.35% | Monthly | JPHQ | 8/14/25 | 262423 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 186769  |
| Krones AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 207453 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68748  |
| Kumba Iron Ore Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCO | 3/25/26 | 2891947 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (17868)  |
| KWS Saat SE & Co. KGaA | Euro STR + 0.35% | Monthly | JPHQ | 8/15/25 | 140874 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11311  |
| La Francaise Des Jeux SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/25 | 313728 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1225  |

---

<br> franklintempleton.com Annual Report 57 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** |
| Lancashire Holdings Ltd. | 1-Day SONIA + 0.35% | Monthly | MSCS | 2/19/26 | 488945 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; $(12034)  |
| Land Securities Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 102224 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 11390  |
| Lassila & Tikanoja PLC | Euro STR + 0.275% | Monthly | SEBA | 1/27/26 | 35986 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 1097  |
| Life Healthcare Group Holdings Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCO | 7/17/25 | 4139914 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (11483)  |
| Logitech International | 1-Day SARON + 0.35% | Monthly | JPHQ | 2/17/26 | 277929 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 57389  |
| Loomis AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/15/25 | 6617668 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (63944)  |
| Lundin Gold Inc. | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 1714667 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 95796  |
| Maire Tecnimont SpA | Euro STR + 0.35% | Monthly | JPHQ | 8/14/25 | 166832 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 101700  |
| Marimekko Corp. | Euro STR + 0.28% | Monthly | SEBA | 7/17/25 | 46950 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 1091  |
| Marks & Spencer Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 298935 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 161752  |
| Marston's PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/25 | 157232 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 31470  |
| Mavi Giyim Sanayi Ve Ticaret AS | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/25 | 140010 |  | &nbsp;&nbsp;&nbsp;&nbsp; (50514)  |
| Mayr-Melnhof Karton AG | Euro STR + 0.35% | Monthly | JPHQ | 2/05/26 | 101509 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 7440  |
| MediaForEurope | 1-Day EONIA + 0.35% | Monthly | JPHQ | 5/31/26 | 302229 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 37542  |
| MediaForEurope | 1-Day EONIA + 0.35% | Monthly | MSCO | 5/31/26 | 103324 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 42188  |
| Meko AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 8/03/25 | 947224 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (3947)  |
| Melia Hotels International | 1-Day EONIA + 0.35% | Monthly | MSCO | 5/20/26 | 166782 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (10942)  |
| Mensch und Maschine Software SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 17011 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 2486  |
| Mercialys SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/25 | 87564 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 8296  |
| Metro Bank Holdings PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 4/06/26 | 12412 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 5235  |
| Mikron Group | 1-Day SARON + 0.35% | Monthly | JPHQ | 9/12/25 | 30061 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 5195  |
| Mitchells & Butlers PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 11/27/25 | 213214 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 63179  |
| Mitie Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 199265 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 123050  |
| MLP SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 12705 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(131)  |
| Modern Times Group MTG AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 5/08/26 | 7659720 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (80991)  |
| Momentum Metropolitan Holdings Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 6/12/26 | 3352840 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 2471  |
| Montana | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/27/25 | 95214 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 35998  |
| Montea NV | Euro STR + 0.35% | Monthly | JPHQ | 6/05/26 | 69616 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 14370  |
| Morgan Sindall Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 232182 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 212769  |
| Mostostal Zabrze SA | 1-Day FEDEF + 1.25% | Monthly | MSCO | 11/03/25 | 16379 |  | &nbsp;&nbsp;&nbsp;&nbsp; 6086 |
| MPC Container Ships ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 178762 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;(445)  |
| Mr Price Group Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCO | 3/14/26 | 4622118 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 40906  |
| MTN Group Ltd. | 1-Day SABOR + 0.32% | Monthly | MSCS | 7/15/25 | 4953582 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 112411  |
|  Muenchener Rueckversicherungs Gesellschaft AG | Euro STR + 0.35% | Monthly | JPHQ | 5/08/26 | 213933 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (6963)  |
| National Grid PLC | 1-Day SONIA + 0.40% | Monthly | MSCS | 1/23/26 | 421067 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 16016  |
| NatWest Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 239106 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 141396  |
| NCC AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 2671343 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (15619)  |
| Nelly Group AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 11/03/25 | 308216 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 9858  |
| Newriver Reit PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 59904 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 13581  |
| Nexans | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/17/25 | 206992 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 4460  |
| Nilfisk Holding A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/12/25 | 633616 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; (3028)  |
| Nilorngruppen AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 11/03/25 | 353133 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;(381)  |
| Ningbo Tuopu Group | 1-Day FEDEF + 0.30% | Monthly | MSCS | 2/10/26 | 180825 |  | &nbsp;&nbsp;&nbsp;&nbsp; (7549)  |
| Niox Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCO | 1/06/26 | 44538 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 5605  |
| NKT A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 11/27/25 | 3053904 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 51586  |

---

<br> 58 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** |
| NN Group NV | Euro STR + 0.35% | Monthly | JPHQ | 7/15/25 | 270070 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $69000  |
| Nokia Corp. | Euro STR + 0.28% | Monthly | SEBA | 7/17/25 | 485763 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (39757)  |
| Nolato AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 3/23/26 | 821480 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 371  |
| Nordea Bank ABP | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 1441471 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8985  |
| Nordex SE | Euro STR | Monthly | JPHQ | 12/01/25 | 392967 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 112062  |
| Nordic Semiconductor ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 2172952 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15374  |
| Norwegian Air Shuttle ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/19/25 | 4199207 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 92273  |
| Novartis AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 4/22/26 | 420877 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40452  |
| NP3 Fastigheter AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 2706186 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 33683  |
| Nyfosa AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 9/12/25 | 1731158 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4557  |
| Obrascon Huarte Lain SA | 1-Day FEDEF | Monthly | MSCO | 12/17/25 | 68235 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2683)  |
| Odfjell SE | 1-Week NIBOR + 0.275% | Monthly | SEBA | 4/15/26 | 1228540 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9517  |
| Odfjell Technology Ltd. | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/18/25 | 1109842 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10248  |
| Okea ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 1819783 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (24166)  |
| Old Mutual Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCO | 4/30/26 | 5373957 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38892  |
| Omnia Holdings Ltd. | 1-Day SABOR + 0.31% | Monthly | MSCS | 7/17/25 | 4076210 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28435  |
| On The Beach Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 171468 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 170145  |
| Ontex Group NV | Euro STR + 0.35% | Monthly | JPHQ | 11/27/25 | 321390 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4862  |
| Orange | 1-Day EONIA + 0.275% | Monthly | MSCO | 8/18/25 | 91356 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27984  |
| Oriola Corp. | Euro STR + 0.28% | Monthly | SEBA | 7/17/25 | 46132 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(330)  |
| ORSERO | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 97231 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23673  |
| OSB Group | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/12/25 | 148420 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 52668  |
| OVS SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/26/25 | 461353 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 165491  |
| Pandora A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/15/25 | 2302089 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26630  |
| Panoro Energy ASA | 1-Week NIBOR + 0.275% | Monthly | SEBA | 10/30/25 | 2131532 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (17396)  |
| Pantheon Infrastructure | 1-Day SONIA + 0.35% | Monthly | MSCO | 4/15/26 | 75359 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22933  |
| Paypoint | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/23/25 | 145489 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 51050  |
| Pepco | 1-Day FEDEF | Monthly | MSCO | 1/21/26 | 331202 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 43216  |
| Per Aarsleff Holding A/S | 1-Week CIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 1609166 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49016  |
| Petershill Partners PLC | 1-Day SONIA + 0.35% | Monthly | MSCO | 1/23/26 | 200671 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48488  |
| Pexip Holding | 1-Week NIBOR + 0.28% | Monthly | SEBA | 11/27/25 | 1546823 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 67019  |
| PGE Polska Grupa Energetyczna SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/15/25 | 451386 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 143881  |
| Picton Property Income Ltd | 1-Day SONIA + 0.275% | Monthly | MSCO | 7/22/25 | 213328 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20679  |
| PKO Bank Polski | 1-Day FEDEF + 1.25% | Monthly | MSCO | 11/06/25 | 187944 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 64686  |
| Plastic Omnium | 1-Day EONIA + 0.30% | Monthly | MSCO | 3/14/26 | 287529 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37336  |
| Polar Capital Holdings PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 11/03/25 | 192663 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (37826)  |
| PORR AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 143266 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 33972  |
| Poste Italiane SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 238615 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 72438  |
| Primary Health Properties | 1-Day SONIA + 0.275% | Monthly | MSCO | 5/14/26 | 138669 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1828  |
| Qiagen NV | 1-Day FEDEF | Monthly | JPHQ | 7/17/25 | 62965 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7062  |
| Quadient | 1-Day EONIA + 0.30% | Monthly | MSCS | 11/27/25 | 128882 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (14859)  |
| Rai Way SpA | Euro STR + 0.35% | Monthly | JPHQ | 8/12/25 | 78318 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9976  |
| Rainbow | 1-Day FEDEF + 1.25% | Monthly | MSCS | 11/28/25 | 157148 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 122139  |
| Rank Group ORD | 1-Day SONIA + 0.275% | Monthly | MSCO | 11/07/25 | 43733 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28442  |
| Raubex Group Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCO | 9/15/25 | 4045515 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (38678)  |
| Raysearch Laboratories AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 12/04/25 | 2381102 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 78534  |

---

<br> franklintempleton.com Annual Report 59 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** |
| Regional REIT Ltd | 1-Day SONIA + 0.275% | Monthly | MSCO | 12/05/25 | 202557 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; $(51300)  |
| Renold ORD | 1-Day SONIA + 0.275% | Monthly | MSCO | 9/24/25 | 53483 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 34094  |
| Reply | Euro STR + 0.35% | Monthly | JPHQ | 5/13/26 | 240689 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (1467)  |
| Resolute Mining Ltd. | 1-Day FEDEF | Monthly | MSCO | 12/18/25 | 4449 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 2857  |
| Reunert Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 8/15/25 | 2982132 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (10022)  |
| RHI Magnesita | 1-Day SONIA + 0.275% | Monthly | MSCO | 6/23/25 | 108547 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (22481)  |
| Roche | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 487878 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 38516  |
| Rockwool AS | 1-Week CIBOR + 0.275% | Monthly | SEBA | 7/17/25 | 425841 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 771  |
| Rubis | 1-Day EONIA + 0.30% | Monthly | MSCS | 8/12/25 | 337738 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 48880  |
| Rusta AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 9/12/25 | 2162421 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 17835  |
| SAF-HOLLAND SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 85195 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 15606  |
| The Sage Group PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 3/20/26 | 218194 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 2922  |
| Saipem | Euro STR + 0.35% | Monthly | JPHQ | 10/14/25 | 230381 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 65836  |
| Sanhua ORD | 1-Day FEDEF | Monthly | MSCS | 2/10/26 | 195694 |  | &nbsp;&nbsp;&nbsp;&nbsp; (6325)  |
| Sappi Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 11/27/25 | 9965846 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (105010)  |
| Sasol Ltd. | 1-Day SABOR + 0.33% | Monthly | MSCS | 7/17/25 | 16234992 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (245786)  |
| SATS ASA | 1-Week NIBOR + 0.275% | Monthly | SEBA | 2/17/26 | 1822839 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 20017  |
| SAVILLS PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 412522 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (37398)  |
| Scandi Standard AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 1603638 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 20064  |
| Scanfil PLC | Euro STR + 0.275% | Monthly | SEBA | 10/17/25 | 49910 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (4913)  |
| Schindler | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/29/25 | 317475 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 51034  |
| Schouw & Co. | 1-Week NIBOR + 0.275% | Monthly | SEBA | 5/22/26 | 738183 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; (8800)  |
| Schweiter Technologies AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 9/24/25 | 140973 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 24681  |
| Secure Trust Bank PLC | 1-Day FEDEF | Monthly | MSCO | 12/17/25 | 39710 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 50021  |
| Securitas AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 3869199 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (6873)  |
| Serco Group | 1-Day SONIA + 0.35% | Monthly | MSCS | 9/30/25 | 228067 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 37791  |
| Siemens Energy AG | Euro STR + 0.35% | Monthly | MSCS | 3/03/26 | 1934329 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 271625  |
| Signify NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 362854 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 95814  |
| Sinch | 1-Week STIBOR + 0.28% | Monthly | SEBA | 11/27/25 | 4877910 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 71450  |
| Skanska AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 3/24/26 | 1515212 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (3891)  |
| SKF AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 3/25/26 | 4429026 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (16753)  |
| Sleep Cycle AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 11/03/25 | 482809 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (17742)  |
| Sofina | Euro STR + 0.35% | Monthly | JPHQ | 7/12/25 | 116041 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 27509  |
| Sogefi | Euro STR + 0.35% | Monthly | JPHQ | 11/14/25 | 116322 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 37517  |
| Solstad Offshore | 1-Week NIBOR + 0.28% | Monthly | SEBA | 11/27/25 | 1787956 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 11848  |
| Solvay | Euro STR + 0.35% | Monthly | JPHQ | 10/10/25 | 344573 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (16709)  |
| SP Group A/S | 1-Week CIBOR + 0.275% | Monthly | SEBA | 9/10/25 | 251512 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 7025  |
| The Spar Group Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCO | 9/15/25 | 7075339 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (59239)  |
| Sparekassen Sjaelland | 1-Week CIBOR + 0.275% | Monthly | SEBA | 3/14/26 | 528872 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 10349  |
| Speedy Hire PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 116412 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (45908)  |
| Spirent Communications | 1-Day SONIA + 0.275% | Monthly | MSCO | 4/24/26 | 78562 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 2607  |
| SSAB AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 3207594 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (59248)  |
| Standard Chartered PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 278682 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 206535  |
| Stillfront Group AB | 1-Week STIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 776113 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 41565  |
| Storytel AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 5/08/26 | 2559321 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 30577  |
| STRABAG SE | Euro STR + 0.35% | Monthly | JPHQ | 7/12/25 | 100800 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 33241  |

---

<br> 60 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** |
| Subsea 7 | 1-Week NIBOR + 0.275% | Monthly | SEBA | 7/09/25 | 995831 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $3019  |
| Sulzer Ltd. | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/11/25 | 338191 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 107648  |
| Sun International Hotels Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 5/20/26 | 3335372 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6658  |
| SUSS MicroTec SE | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 342462 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 114673  |
| Sveafastigheter AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 6/02/26 | 69872 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;(42)  |
| Swedish Orphan Biovitrum AB | 1-Week STIBOR + 0.65% | Monthly | SEBA | 7/15/25 | 3064966 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3323  |
| Swiss Re AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/25 | 411897 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 54638  |
| Synektik | 1-Day FEDEF + 1.25% | Monthly | MSCS | 9/05/25 | 169763 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 157169  |
| Talanx AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 260926 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 92075  |
| Tauron Polska Energia SA | 1-Day FEDEF + 0.30% | Monthly | MSCS | 7/17/25 | 179632 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 178367  |
| TBC Bank Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 154364 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 118578  |
| Team Internet Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 228065 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (131326)  |
| TeamViewer AG | Euro STR + 0.35% | Monthly | JPHQ | 8/01/25 | 299768 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (21204)  |
| Technogym SpA | Euro STR + 0.35% | Monthly | JPHQ | 8/12/25 | 406540 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 78330  |
| Tecnicas Reunidas SA | 1-Day EONIA + 0.35% | Monthly | MSCO | 2/28/26 | 60381 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 41583  |
| Teleperformance | 1-Day EONIA + 0.275% | Monthly | MSCO | 3/24/26 | 424479 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (25237)  |
| Telia Company AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 11/11/25 | 1329126 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5097  |
| Telkom SA SOC Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 7/17/25 | 5857135 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 143326  |
| Ten Square Games | 1-Day FEDEF + 1.25% | Monthly | MSCS | 1/06/26 | 96208 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32443  |
| Terveystalo PLC | Euro STR + 0.28% | Monthly | SEBA | 7/17/25 | 188344 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2479  |
| Tesco PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 5/03/26 | 246497 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 41468  |
| TF1 Group | 1-Day EONIA + 0.30% | Monthly | MSCS | 7/12/25 | 326871 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48493  |
| Tharisa PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 45506 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (15159)  |
| Thungela Resources Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 8/23/25 | 8461761 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (182462)  |
| ThyssenKrupp AG | Euro STR + 0.35% | Monthly | JPHQ | 11/27/25 | 272161 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18264  |
| TIM SpA | Euro STR + 0.35% | Monthly | JPHQ | 11/27/25 | 166935 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 63215  |
| Titan Cement | Euro STR + 0.35% | Monthly | JPHQ | 9/05/25 | 130386 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10194  |
| Torunlar GYO | 1-Day FEDEF + 1.25% | Monthly | MSCS | 7/12/25 | 110463 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 53339  |
| Travis Perkins PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 34050 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5629  |
| Triple Point Social Housing | 1-Day SONIA + 0.35% | Monthly | MSCO | 1/06/26 | 88548 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25203  |
| TUI AG | Euro STR + 0.35% | Monthly | JPHQ | 4/30/26 | 202051 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 58293  |
| u-blox AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/25 | 248921 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 118967  |
| UBS Group AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/17/25 | 89332 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17384  |
| Umicore | Euro STR + 0.35% | Monthly | JPHQ | 11/21/25 | 204458 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 58537  |
| UniCredit SpA | Euro STR + 0.35% | Monthly | JPHQ | 9/25/25 | 293944 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 108451  |
| Unipol Gruppo SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/15/25 | 208823 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 91796  |
| Valeo | 1-Day EONIA + 0.30% | Monthly | MSCS | 10/09/25 | 477243 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (40551)  |
| Valiant | Euro STR + 0.35% | Monthly | JPHQ | 7/12/25 | 253120 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21164  |
| Van Elle Holdings PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 11/04/25 | 18609 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(385)  |
| Vaudoise Assurances | 1-Day SARON + 0.35% | Monthly | JPHQ | 11/11/25 | 148022 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27503  |
| Veidekke | 1-Week NIBOR + 0.28% | Monthly | SEBA | 8/26/25 | 2726551 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8489  |
| Venture Life Group PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 11/03/25 | 24879 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8718  |
| Veolia Environnement SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 8/26/25 | 210633 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19611  |
| Veolia Environnement SA | 1-Day EONIA + 0.40% | Monthly | MSCS | 6/03/26 | 1663363 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2428  |
| Vertu Motors PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 89718 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5781)  |
| Vestas Wind Systems AS | 1-Week CIBOR + 0.275% | Monthly | SEBA | 5/13/26 | 3387294 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (32009)  |

---

<br> franklintempleton.com Annual Report 61 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** | **Equity Contracts - Long<sup>a</sup> (continued)** |
| Vicat SA | 1-Day EONIA + 0.30% | Monthly | MSCS | 8/30/25 | 240698 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $186611  |
| Vienna Insurance Group AG | Euro STR + 0.35% | Monthly | JPHQ | 12/18/25 | 275405 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 54537  |
| Vitrolife AB | 1-Week STIBOR + 0.275% | Monthly | SEBA | 3/10/26 | 2002728 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (18695)  |
| Vodafone Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCO | 1/20/26 | 205734 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26999  |
| Voestalpine AG | Euro STR + 0.35% | Monthly | JPHQ | 12/18/25 | 220619 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 44430  |
| Volkswagen NV | 1-Day EONIA + 0.40% | Monthly | MSCS | 5/18/26 | 223520 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (20170)  |
| Vontobel | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 239382 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 41946  |
| Vukile Property Fund Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCS | 8/26/25 | 791864 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4957  |
| VZ Holding AG | 1-Day SARON + 0.35% | Monthly | JPHQ | 7/31/25 | 102211 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24707  |
| Wallenius Wilhelmsen ASA | 1-Week NIBOR + 0.28% | Monthly | SEBA | 7/17/25 | 5620595 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (61821)  |
| Wartsila Corp. | Euro STR + 0.275% | Monthly | SEBA | 10/17/25 | 225315 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(331)  |
| Watkin Jones PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 203193 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (190438)  |
| WBHO Ltd. | 1-Day SABOR + 0.70% | Monthly | MSCO | 12/04/25 | 1528539 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4045  |
| Webuild SpA | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 456421 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 180558  |
| Wereldhave NV | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 163905 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28195  |
| Wereldhave Belgium NV | Euro STR + 0.35% | Monthly | JPHQ | 11/06/25 | 15257 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1152  |
| Wickes Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 7/17/25 | 176588 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 136534  |
| Workspace Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCS | 10/28/25 | 316824 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (70730)  |
| Xior Student Housing NV | Euro STR + 0.35% | Monthly | JPHQ | 7/28/25 | 196150 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25852  |
| XPS Pensions Group PLC | 1-Day SONIA + 0.275% | Monthly | MSCO | 12/08/25 | 160698 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17437  |
| YU Group PLC | 1-Day SONIA + 0.35% | Monthly | MSCO | 2/17/26 | 120507 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16866  |
| Zalando SE | Euro STR + 0.35% | Monthly | JPHQ | 3/03/26 | 338987 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25892  |
| Zehnder | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 213900 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 111563  |
| Zumtobel Group AG | Euro STR + 0.35% | Monthly | JPHQ | 7/17/25 | 34761 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5007  |
|  |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13930278  |
| **Equity Contracts - Short<sup>d</sup>** | **Equity Contracts - Short<sup>d</sup>** | **Equity Contracts - Short<sup>d</sup>** | **Equity Contracts - Short<sup>d</sup>** | **Equity Contracts - Short<sup>d</sup>** | **Equity Contracts - Short<sup>d</sup>** | **Equity Contracts - Short<sup>d</sup>** | **Equity Contracts - Short<sup>d</sup>** |
| 1&1 AG | Euro STR - 0.30% | Monthly | JPHQ | 12/17/25 | 159054 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (54733)  |
| AAK AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/25 | 1659243 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1935)  |
| Aalberts NV | Euro STR - 0.30% | Monthly | JPHQ | 2/10/26 | 56685 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (9968)  |
| AB Dynamics PLC | 1-Day SONIA - 1.25% | Monthly | MSCS | 7/18/25 | 40961 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3743  |
| ABC Arbitrage | 1-Day EONIA - 0.275% | Monthly | MSCO | 6/13/26 | 26563 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (13724)  |
| abrdn European Logistics Income PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 175593 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29107  |
| Acerinox SA | 1-Day EONIA - 0.275% | Monthly | MSCO | 3/24/26 | 185340 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11629  |
| Ackermans & van Haaren | Euro STR - 0.30% | Monthly | JPHQ | 3/18/26 | 410647 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (125393)  |
| Addnode Group AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 7/17/25 | 3013279 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9411  |
| Advanced Medical Solution | 1-Day SONIA - 0.275% | Monthly | MSCO | 7/17/25 | 102013 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4033  |
| African Rainbow Minerals Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCO | 7/22/25 | 6355795 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12914  |
| Afrimat Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCO | 5/20/26 | 2159153 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25212  |
| Agilyx | 1-Week NIBOR - 4.25% | Monthly | SEBA | 8/07/25 | 451539 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;(390)  |
| Air France-KLM | 1-Day EONIA - 1.875% | Monthly | MSCO | 3/20/26 | 89953 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (9581)  |
| Air Liquide | 1-Day EONIA - 0.275% | Monthly | MSCO | 6/20/25 | 103494 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (18971)  |
| Air Liquide | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/25 | 105935 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (14583)  |
| Airbus SE | 1-Day EONIA - 0.30% | Monthly | MSCO | 12/11/25 | 92996 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (13587)  |
| Aixtron SE | Euro STR - 0.30% | Monthly | JPHQ | 3/20/26 | 138328 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (44057)  |
| Aker BP ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/17/25 | 3282512 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10527  |
| Aker Carbon Capture ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/14/25 | 1096577 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18077  |

---

<br> 62 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** |
| ALCON N | 1-Day SARON - 0.35% | Monthly | JPHQ | 8/12/25 | 114945 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $14667  |
| Allegro | 1-Day FEDEF - 2.13% | Monthly | MSCS | 7/12/25 | 330012 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (93706)  |
| Allfunds Group PLC | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 163611 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (38599)  |
| Allreal Holding AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/25 | 404487 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (37704)  |
| Alm. Brand A/S | 1-Week CIBOR - 0.75% | Monthly | SEBA | 7/26/25 | 2774148 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4882  |
| <sup>e</sup>Almirall SA | 1-Day EONIA - 0.275% | Monthly | MSCO | 10/11/25 |  | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8847)  |
| Almirall SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 10/11/25 | 320188 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (107133)  |
| Alten | 1-Day EONIA - 0.30% | Monthly | MSCO | 12/11/25 | 82682 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17912  |
| &nbsp;&nbsp;&nbsp;&nbsp; AMG Advanced Metallurgical Group <br>NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 239523 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (139518)  |
| Amper SA | 1-Day EONIA - 4.50% | Monthly | MSCO | 9/10/25 | 42409 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (15606)  |
| Amplifon | Euro STR - 0.30% | Monthly | JPHQ | 11/27/25 | 127267 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6342)  |
| Anglo Pacific Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 82162 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16829  |
| Antofagasta PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 2/17/26 | 69760 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5638)  |
| Arbonia AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/08/25 | 191796 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 90186  |
| Arcadis | Euro STR - 0.30% | Monthly | JPHQ | 4/04/26 | 76100 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(173)  |
| Arcelik | 1-Day FEDEF - 5.00% | Monthly | MSCS | 7/17/25 | 133760 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38472  |
| Aselsan AS | 1-Day FEDEF - 7.50% | Monthly | MSCS | 7/17/25 | 18998 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (80423)  |
| Ashtead Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCO | 12/16/25 | 343665 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 77678  |
| Aspen Pharmacare Holdings Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 7/17/25 | 5229779 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 109617  |
| ASR Nederland | Euro STR - 0.30% | Monthly | JPHQ | 6/13/26 | 379626 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (81200)  |
| Assa Abloy AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/25 | 2328205 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1761  |
| Assystem | 1-Day EONIA - 2.75% | Monthly | MSCO | 9/25/25 | 112690 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16907  |
|  Aston Martin Lagonda Global Holdings PLC | 1-Day SONIA - 8.75% | Monthly | MSCS | 7/17/25 | 158668 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 95160  |
| Atlas Copco | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/25 | 2249756 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6305  |
| Atrium Ljungberg AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 5/25/26 | 462483 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1039)  |
| Auction Technology Group | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/01/25 | 220383 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42517  |
| AUTO1 Group SE | Euro STR - 0.75% | Monthly | JPHQ | 7/14/25 | 265806 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (131858)  |
| Autopartner | 1-Day FEDEF - 3.25% | Monthly | MSCO | 9/18/25 | 127996 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1358)  |
| AutoStore Holdings Ltd. | 1-Week NIBOR - 0.75% | Monthly | SEBA | 4/04/26 | 1841809 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 90191  |
| Aviva PLC | 1-Day SONIA - 0.30% | Monthly | BZWS | 3/13/26 | 468547 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(418)  |
| Axfood AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 1/10/26 | 2653020 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (70211)  |
| Azelis Holding SA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 288205 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5738  |
| B&M European Value Retail SA | 1-Day SONIA - 0.30% | Monthly | MSCS | 10/31/25 | 82352 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (17603)  |
| Bachem AG | Euro STR - 0.35% | Monthly | JPHQ | 7/17/25 | 22671 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1637)  |
| Baloise Holdings SA | 1-Day SARON - 0.35% | Monthly | JPHQ | 12/09/25 | 428241 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (82841)  |
| Bank Handlowy | 1-Day FEDEF - 0.50% | Monthly | MSCO | 4/03/26 | 35900 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1040)  |
| Bankinter SA | 1-Day EONIA - 0.35% | Monthly | MSCO | 3/06/26 | 225964 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (189187)  |
| Banque Cantonale Vaudoise | Euro STR - 0.35% | Monthly | JPHQ | 7/12/25 | 481954 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (38375)  |
| Barratt Redrow PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/24/26 | 278451 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (32353)  |
| Barry Callebaut | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/13/25 | 214446 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49392  |
| Basic-Fit | Euro STR - 1.75% | Monthly | JPHQ | 7/14/25 | 216789 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (80358)  |
| Basler AG | Euro STR - 1.20% | Monthly | JPHQ | 7/17/25 | 28078 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7765)  |
| BE Semiconductor Industries | Euro STR - 0.30% | Monthly | JPHQ | 2/28/26 | 155235 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (45348)  |
| Bechtle AG | Euro STR - 8.25% | Monthly | JPHQ | 3/04/26 | 97709 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (23827)  |

---

<br> franklintempleton.com Annual Report 63 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** |
| Befesa SA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 299237 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; $(72402)  |
| Beiersdorf AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 112479 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (8774)  |
| Beijer Ref AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/25 | 3896097 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 29042  |
| Belimo Holding AG | Euro STR - 0.35% | Monthly | JPHQ | 7/17/25 | 173784 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (143893)  |
| Bergman & Beving Aktiebol | 1-Week STIBOR - 0.275% | Monthly | SEBA | 5/19/26 | 332358 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;(899)  |
| Better Collective A/S | 1-Week STIBOR - 0.275% | Monthly | SEBA | 10/09/25 | 1175865 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (10135)  |
| BFF Bank SpA | Euro STR - 0.30% | Monthly | JPHQ | 10/16/26 | 182981 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (66631)  |
| BHP Group Ltd | 1-Day SONIA - 1.52% | Monthly | MSCO | 12/02/25 | 63685 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 11324  |
| Bid Corporation Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCO | 12/01/25 | 5445350 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (26030)  |
| Biesse | Euro STR - 0.80% | Monthly | JPHQ | 9/04/25 | 91874 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (20276)  |
| Big Yellow Group | 1-Day SONIA - 0.30% | Monthly | MSCS | 10/16/25 | 100492 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (7247)  |
| Bioarctic AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 7/17/25 | 1143450 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 15951  |
| BlueNord ASA | 1-Week NIBOR - 0.275% | Monthly | SEBA | 8/28/25 | 1289204 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 11817  |
| BMW Group | Euro STR - 0.30% | Monthly | JPHQ | 5/15/26 | 254264 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (37681)  |
| Bollore SE | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/25 | 404226 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (18959)  |
| Borregaard ASA | 1-Week NIBOR - 0.275% | Monthly | SEBA | 5/07/26 | 435343 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;(630)  |
| Borussia Dortmund | Euro STR - 0.95% | Monthly | JPHQ | 7/17/25 | 90368 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (31383)  |
| Bossard AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/25 | 71202 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;(52)  |
| BPER Banca SpA | Euro STR - 0.30% | Monthly | BZWS | 2/13/26 | 507405 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (6324)  |
| Brembo | Euro STR - 0.30% | Monthly | JPHQ | 3/25/26 | 110054 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (4869)  |
| Brenntag SE | Euro STR - 0.30% | Monthly | JPHQ | 10/07/25 | 202811 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (21328)  |
| Bridgepoint Group PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/24/26 | 124415 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 1878  |
| Brunello Cucinelli | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 133962 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (29771)  |
| Budimex | 1-Day FEDEF - 0.50% | Monthly | MSCO | 5/07/26 | 288145 |  | &nbsp;&nbsp;&nbsp;&nbsp; (14119)  |
| Bufab AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 5/25/26 | 621646 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (1435)  |
| Burford Capital Ltd. | 1-Day SONIA - 0.63% | Monthly | MSCS | 7/17/25 | 81977 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 9893  |
| BW Energy Ltd. | 1-Week NIBOR - 0.45% | Monthly | SEBA | 7/17/25 | 595000 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (2426)  |
| Bystronic AG | Euro STR - 0.35% | Monthly | JPHQ | 8/05/25 | 53768 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (21872)  |
| CA Immobilien Anlagen AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 358967 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (53485)  |
| Cadeler AS | 1-Week NIBOR - 6.50% | Monthly | SEBA | 7/17/25 | 3011636 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 19568  |
| Campari | Euro STR - 0.30% | Monthly | JPHQ | 7/31/25 | 203730 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (22665)  |
| Camurus AB | 1-Week STIBOR - 0.75% | Monthly | SEBA | 7/17/25 | 3301526 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 58767  |
| Capgemini | 1-Day EONIA - 0.30% | Monthly | MSCS | 9/23/25 | 161353 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 24256  |
| Capita PLC | 1-Day SONIA - 1.125% | Monthly | MSCO | 5/06/26 | 133391 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 34198  |
| Capitec Bank Holdings Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 7/14/25 | 4380616 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (206598)  |
| Carel Industries | Euro STR - 0.30% | Monthly | JPHQ | 9/23/25 | 265860 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (114429)  |
| Carl Zeiss Meditec AG | Euro STR - 0.30% | Monthly | JPHQ | 8/21/25 | 172162 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (11744)  |
| Cashbuild Ltd. | 1-Day SABOR - 0.88% | Monthly | MSCS | 7/17/25 | 123642 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; 1768  |
| Catena AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 5/08/26 | 3590804 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (43678)  |
| CD Projekt SA | 1-Day FEDEF - 1.25% | Monthly | MSCS | 7/17/25 | 221854 |  | &nbsp;&nbsp;&nbsp;&nbsp; (224539)  |
| Cellnex Telecom SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/14/25 | 505172 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (9186)  |
| Ceres Power Holdings PLC | 1-Day SONIA - 1.38% | Monthly | MSCS | 7/17/25 | 27553 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (1548)  |
| Cerillion PLC | 1-Day SONIA - 3.63% | Monthly | MSCO | 6/11/26 | 59230 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (12432)  |
| Chemring Group | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/24/26 | 62727 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (17636)  |
| Cibus Nordic Real Estate AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 1/10/26 | 932414 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (18874)  |

---

<br> 64 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** |
| CIE Automotive S.A. | 1-Day EONIA - 0.35% | Monthly | MSCS | 9/12/25 | 180762 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $2242  |
| CIE Financiere Richmont | 1-Day FEDEF | Monthly | JPHQ | 2/11/26 | 101359 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (22103)  |
| Close Brothers Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/30/25 | 116865 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6189  |
| Cloudberry Clean Energy ASA | 1-Week NIBOR - 1.00% | Monthly | SEBA | 7/17/25 | 503361 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5852)  |
| CNH Industrial | Euro STR - 0.30% | Monthly | JPHQ | 3/24/26 | 304170 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (50789)  |
| Cognor Holding SA | 1-Day FEDEF - 0.75% | Monthly | MSCS | 7/17/25 | 64256 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (16802)  |
| Coloplast A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/17/25 | 2690569 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 50358  |
| Comet | 1-Day SARON - 0.35% | Monthly | JPHQ | 9/30/25 | 226405 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (46207)  |
|  Corporacion Acciona Energias Renovables SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 8/05/25 | 275259 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3106  |
| Credit Agricole SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/25 | 108181 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (14191)  |
| Crest Nicholson Holdings PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/21/25 | 202753 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8292  |
| Croda International PLC | 1-Day SONIA - 0.44% | Monthly | MSCS | 11/27/25 | 380264 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 144109  |
| CTP NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 62563 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10585)  |
| Curro Holdings | 1-Day SABOR - 1.50% | Monthly | MSCS | 1/08/26 | 1434480 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4434)  |
| CVC Capital Partners | Euro STR - 0.30% | Monthly | JPHQ | 12/08/25 | 147035 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (25299)  |
| CVS Group PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/19/25 | 162580 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (46105)  |
| Cy4gate SpA | Euro STR - 0.85% | Monthly | JPHQ | 2/10/26 | 15368 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (9453)  |
| Cyfrowy Polsat SA | 1-Day FEDEF - 0.50% | Monthly | MSCS | 7/17/25 | 180002 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (109197)  |
| Daetwyler | Euro STR - 0.35% | Monthly | JPHQ | 7/17/25 | 69349 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 240  |
| Daimler Truck Holdings AG | Euro STR - 0.30% | Monthly | JPHQ | 3/28/26 | 280082 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (70255)  |
| Dassault Systemes SE | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/01/25 | 117924 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2511  |
| Delivery Hero SE | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 122325 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (12423)  |
| De'Longhi SpA | Euro STR - 0.30% | Monthly | JPHQ | 5/08/26 | 138689 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 861  |
| Demant | 1-Week CIBOR - 0.275% | Monthly | SEBA | 5/25/26 | 798400 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2082  |
| Derwent London PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 7/07/25 | 158110 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14329  |
| Deutsche Boerse | Euro STR - 0.30% | Monthly | JPHQ | 11/27/25 | 294887 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (48299)  |
| Diageo PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/25 | 395647 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 152095  |
| Dino Polska SA | 1-Day FEDEF - 0.50% | Monthly | MSCS | 7/14/25 | 409997 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (268394)  |
| Dis-Chem Pharmacies | 1-Day SABOR - 0.50% | Monthly | MSCS | 12/26/25 | 4887857 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (82538)  |
| DiscoverIE Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCO | 3/28/26 | 88282 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3152)  |
| Discovery Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 7/17/25 | 8144557 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (275069)  |
| DLG Exhibitions & Events | 1-Day SONIA - 0.25% | Monthly | MSCS | 2/26/26 | 92543 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8485)  |
| DOF ASA | 1-Week NIBOR - 0.275% | Monthly | SEBA | 5/07/26 | 1402208 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (11361)  |
| Domino's Pizza Group PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 9/05/25 | 334325 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 56596  |
| Dottikon ES Holding AG | 1-Day SARON - 1.40% | Monthly | JPHQ | 7/17/25 | 185810 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (141462)  |
| DRDGOLD Ltd. | 1-Day SABOR - 1.00% | Monthly | MSCS | 7/17/25 | 2937493 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (99509)  |
| DSM Firmenich AG | Euro STR - 0.30% | Monthly | JPHQ | 4/16/26 | 192421 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (35991)  |
| DSV A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/14/25 | 3823490 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (45523)  |
| DT Capital Ltd. | 1-Month HIBOR - 0.30% | Monthly | JPHQ | 1/30/26 | 137047 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (22611)  |
| Dustin Group AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 12/11/25 | 339515 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16361  |
| <sup>b</sup>Dustin Group AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 12/11/25 | 254318 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (13053)  |
| E.ON SE | Euro STR - 0.30% | Monthly | JPHQ | 4/23/26 | 30407 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 85  |
| Ecopro BM | 1-Day FEDEF - 10.875% | Monthly | MSCS | 5/13/26 | 91132 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5358  |
| Ecopro BM | 1-Day FEDEF - 7.75% | Monthly | MSCS | 5/13/26 | 71649 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3525  |
| Edreams Odigeo SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/25 | 140313 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (32679)  |

---

<br> franklintempleton.com Annual Report 65 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** |
| Elekta AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 2/11/26 | 828079 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $206  |
| Elia Group | Euro STR - 0.30% | Monthly | JPHQ | 5/16/26 | 297500 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (75217)  |
| Elisa Oyj | Euro STR - 0.28% | Monthly | SEBA | 11/15/25 | 316572 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1980)  |
| Emmi | 1-Day SARON - 0.35% | Monthly | JPHQ | 9/04/25 | 69288 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8252)  |
| Ems-Chemie AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/25 | 367413 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (58607)  |
| ENAV SpA | Euro STR - 0.30% | Monthly | JPHQ | 9/23/25 | 99296 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (20513)  |
| Ence Energia Y Celulosa SA | 1-Day EONIA - 0.35% | Monthly | MSCO | 2/10/26 | 177021 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3662  |
| Enento Group OYJ | Euro STR - 0.28% | Monthly | SEBA | 7/17/25 | 106847 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4812)  |
| Energean PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 99477 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7862  |
| EnergieKontor AG | Euro STR - 0.30% | Monthly | JPHQ | 3/07/26 | 88279 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(135)  |
| Engcon AB | 1-Week STIBOR - 3.50% | Monthly | SEBA | 10/04/25 | 1420965 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9362  |
| Eni SpA | Euro STR - 0.30% | Monthly | JPHQ | 1/13/26 | 232220 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (20627)  |
| Entain PLC | 1-Day SONIA - 0.30% | Monthly | MSCO | 2/17/26 | 157980 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7416)  |
| Envipco Holdings | 1-Week NIBOR - 0.275% | Monthly | SEBA | 5/21/26 | 339221 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 831  |
| Eos Energy Enterprises | 1-Day FEDEF | Monthly | NOMU | 5/30/26 | 74050 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4882  |
| Epiroc AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/25 | 4645409 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5824)  |
| Eramet SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/30/25 | 465047 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 79031  |
| ERG SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 128803 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10607)  |
| Erste Group Bank AG | Euro STR - 0.30% | Monthly | JPHQ | 10/14/25 | 122029 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10489)  |
| Essentra PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/01/25 | 245786 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 130529  |
| EuroGroup Laminations SpA | Euro STR - 0.30% | Monthly | JPHQ | 8/12/25 | 97244 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (26224)  |
| Europris ASA | 1-Week NIBOR - 0.275% | Monthly | SEBA | 3/12/26 | 3314802 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17847  |
| EuroTeleSites AG | Euro STR - 6.00% | Monthly | JPHQ | 8/26/25 | 2925 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(209)  |
| Evotec SE | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 95562 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (35513)  |
| Exail Technologies | 1-Day EONIA - 6.875% | Monthly | MSCS | 9/23/25 | 22299 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (70574)  |
| Experian PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/25 | 223776 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (27124)  |
| Fastighets AB Balder | 1-Week STIBOR - 0.275% | Monthly | SEBA | 5/25/26 | 1516888 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2364)  |
| FD Technologies PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/12/25 | 166248 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (187661)  |
| Ferguson Enterprises Inc. | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/10/26 | 261718 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16603  |
| Ferretti | Euro STR - 1.00% | Monthly | JPHQ | 10/20/25 | 132422 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (37906)  |
| Ferrovial SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/25 | 295316 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (176229)  |
| Fevertree Drinks PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/25/25 | 302987 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11255  |
| Fielmann AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 40297 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (16707)  |
| FinecoBank SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 302560 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (91079)  |
| Fintel PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/20/25 | 49827 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5908  |
| Fiskars Group OYJ | Euro STR - 0.45% | Monthly | SEBA | 8/23/25 | 61861 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6546  |
| FLSmidth & Co. A/S | 1-Week CIBOR - 0.275% | Monthly | SEBA | 9/10/25 | 1365082 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (13411)  |
| Flughafen Zurich AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/25 | 215610 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (42220)  |
| Fluidra SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 9/30/25 | 198913 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 300  |
| Flutter Entertainment PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/30/25 | 84284 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (22917)  |
| Fnac Darty SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 1/29/26 | 85802 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (9615)  |
| Formycon AG | Euro STR - 23.00% | Monthly | JPHQ | 3/31/26 | 11814 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1079)  |
| Forterra PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/08/25 | 127439 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (46677)  |
| Francaise Energie | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/25 | 45713 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16566  |
| Fraport AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 447903 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (75667)  |

---

<br> 66 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** |
| Frasers Group PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/24/26 | 179546 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; $(40839)  |
| Funding Circle Holdings PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/11/25 | 187592 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (4594)  |
| Galapagos NV | Euro STR - 0.30% | Monthly | JPHQ | 1/09/26 | 105920 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (26499)  |
| Galderma Group | 1-Day SARON - 0.35% | Monthly | JPHQ | 9/11/25 | 73626 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (34211)  |
| Galenica | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/26/25 | 157927 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (20861)  |
| Geberit AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/25 | 336777 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (83155)  |
| Gecina SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/25 | 238072 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (32830)  |
| Genuit Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 187364 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (60058)  |
| Georg Fischer Ltd. | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/27/25 | 217357 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (57867)  |
| Gerresheimer AG | Euro STR - 0.30% | Monthly | JPHQ | 5/15/26 | 62389 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (3285)  |
| Getlink SE | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/25 | 384148 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (36923)  |
| GFT Technologies SE | Euro STR - 0.30% | Monthly | JPHQ | 4/24/26 | 40279 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (1428)  |
| Givaudan SA | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/25 | 55868 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (2341)  |
| Gjensidige Forsikring ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/17/25 | 3191493 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (37730)  |
| Global Dominion | 1-Day EONIA - 0.275% | Monthly | MSCO | 7/30/25 | 145009 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (15420)  |
| Grainger PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 195767 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 1601  |
| Grand City Properties | Euro STR - 0.30% | Monthly | JPHQ | 1/30/26 | 38294 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 335  |
| Granges AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/25 | 757058 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 853  |
| Great Portland Estates PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 427483 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (109477)  |
| Greatland Gold PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 199118 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (245041)  |
| Grenergy Renovables SA | 1-Day EONIA - 2.38% | Monthly | MSCS | 12/02/25 | 156650 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (257205)  |
| GRENKE AG | Euro STR - 2.55% | Monthly | JPHQ | 7/29/25 | 40183 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 16  |
| Grieg Seafood | 1-Week NIBOR - 0.45% | Monthly | SEBA | 4/16/26 | 1770384 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (29950)  |
| Groupe ADP | 1-Day EONIA - 0.30% | Monthly | MSCS | 11/27/25 | 214879 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (24708)  |
| Groupe Bruxelles Lambert NV | Euro STR - 0.30% | Monthly | JPHQ | 7/12/25 | 380293 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (61794)  |
| Gruppo MutuiOnline SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 179570 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (69547)  |
| Gulf Keystone Petroleum | 1-Day SONIA - 0.275% | Monthly | MSCO | 10/16/25 | 4020 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 1068  |
| Haleon PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 3/13/26 | 372042 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (123274)  |
| Hamborner REIT AG | Euro STR - 0.30% | Monthly | JPHQ | 9/27/25 | 126817 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (23995)  |
| Hansa Biopharma AB | 1-Week STIBOR - 1.00% | Monthly | SEBA | 7/17/25 | 697427 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 1185  |
| Hapag-Lloyd AG | Euro STR - 0.50% | Monthly | JPHQ | 10/07/25 | 86448 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (22021)  |
| Harvia PLC | Euro STR - 9.50% | Monthly | SEBA | 7/17/25 | 153980 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (8598)  |
| HBX Group International | 1-Day EONIA - 0.275% | Monthly | MSCO | 5/25/26 | 75007 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 598  |
| Hektas | 1-Day FEDEF - 15.00% | Monthly | MSCS | 7/17/25 | 12677 |  | &nbsp;&nbsp;&nbsp;&nbsp; (14717) |
| HELLA GmbH & Co. KGaA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 110448 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (5067)  |
| Henkel AG & Co. KGaA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 109322 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (4807)  |
| Henry Boot PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 16547 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 1746  |
| Hensoldt AG | Euro STR - 0.30% | Monthly | JPHQ | 3/20/26 | 332083 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (238008)  |
| Hermes International | 1-Day SONIA - 0.40% | Monthly | MSCS | 9/07/25 | 47838 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (3537)  |
| Hexagon Composites ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/17/26 | 211338 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 1098  |
| Hexpol AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 11/06/25 | 3370316 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 28932  |
| Himalaya Shipping Ltd | 1-Week NIBOR - 3.25% | Monthly | SEBA | 8/28/25 | 744975 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 2224  |
| Hiscox Ltd. ORD | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 119015 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (16361)  |
| HMS Networks AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 9/13/25 | 3415802 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 22610  |
| Hollywood Bowl Group PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/10/26 | 179265 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 1219  |

---

<br> franklintempleton.com Annual Report 67 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** |
| Holmen AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 6/20/25 | 3939237 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $448  |
| Howden Joinery Group PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/18/25 | 233230 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9485  |
| Hutchmed | 1-Day SONIA - 1.125% | Monthly | MSCO | 9/03/25 | 48864 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13410  |
| Hypoport SE | 1-Day SABOR - 0.75% | Monthly | JPHQ | 9/27/25 | 210067 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (37918)  |
| Iberdrola ORD | 1-Day EONIA - 0.50% | Monthly | MSCO | 12/02/25 | 357653 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (13290)  |
| Ibstock PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/07/25 | 230132 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (105141)  |
| Idox PLC | 1-Day SONIA - 6.125% | Monthly | MSCO | 3/24/26 | 33311 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4434  |
| Illimity Bank SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 81033 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4089)  |
| IMCD Group NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 117268 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5561)  |
| Industria De Diseno Textil | 1-Day EONIA - 0.275% | Monthly | MSCO | 1/16/26 | 180469 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4634  |
| Indutrade AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 6/03/26 | 782036 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6373  |
| INFICON | 1-Day SARON - 0.35% | Monthly | JPHQ | 5/25/26 | 64946 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1642  |
| Infrastrutture Wireless Italiane SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 314846 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (52768)  |
| <sup>e</sup>Inmocemento SA | 1-Day EONIA - 0.275% | Monthly | MSCO | 1/13/26 |  | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3633)  |
| Instalco AB | 1-Week STIBOR - 0.45% | Monthly | SEBA | 6/27/25 | 1000975 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23476  |
| IntegraFin Holdings PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 200049 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (14828)  |
| Inter Cars | 1-Day FEDEF - 2.125% | Monthly | MSCO | 3/19/26 | 45687 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3261) |
| Intermediate Capital Group | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/09/26 | 97300 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12035  |
| International Paper | 1-Day SONIA - 0.744% | Monthly | MSCO | 2/12/26 | 105151 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3341  |
| International Petroleum Corp. | 1-Week STIBOR - 0.275% | Monthly | SEBA | 12/06/25 | 4381708 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 45754  |
| Interparfums SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/25 | 142291 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21651  |
| Interpump Group | Euro STR - 0.30% | Monthly | JPHQ | 5/20/26 | 189068 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (52002)  |
| Interroll Group | 1-Day SARON - 0.35% | Monthly | JPHQ | 10/28/25 | 288595 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (66924)  |
| Investor AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/14/25 | 3468804 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12617  |
| INVISIO AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/25 | 1451253 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18985  |
| IREN SPA | Euro STR - 0.30% | Monthly | JPHQ | 11/11/25 | 182204 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (52516)  |
| Italmobiliare | Euro STR - 0.30% | Monthly | JPHQ | 9/27/25 | 114453 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (33222)  |
| ITV PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 151403 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (11285)  |
| J D Wetherspoon PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/17/25 | 42615 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(31)  |
| James Halstead PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 23229 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3584  |
| JTC PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 231387 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (20516)  |
| Judges Scientific PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/05/25 | 237744 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 56454  |
| Juventus FC | Euro STR - 17.30% | Monthly | JPHQ | 9/02/25 | 116278 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (22108)  |
| Jyske Bank A/S | 1-Week CIBOR - 0.275% | Monthly | SEBA | 11/14/25 | 677398 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5111)  |
| K+S AG | Euro STR - 0.95% | Monthly | JPHQ | 10/07/25 | 218834 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (73538)  |
| KAP Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCO | 5/21/26 | 115536 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 186  |
| Karnov Group AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/25 | 1010165 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7710)  |
| KBC Groep NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 221277 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (52168)  |
| Kering SA | 1-Month EURIBOR - 0.40% | Monthly | MSCS | 11/27/25 | 336977 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 138275  |
| Kerry Group PLC | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/25 | 294520 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (34540)  |
| Kesko Corp. | Euro STR - 0.275% | Monthly | SEBA | 10/17/25 | 316608 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (41346)  |
| K-Fast Holding AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 7/17/25 | 303596 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4940  |
| KGHM Polska Miedz SA | 1-Day FEDEF - 0.50% | Monthly | MSCS | 8/19/25 | 106279 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 304  |
| Kid ASA | 1-Week NIBOR - 0.275% | Monthly | SEBA | 5/25/26 | 417454 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 74  |
| Kinnevik AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 3/03/26 | 3536543 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (32495)  |

---

<br> 68 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** |
| Knorr-Bremse AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 19940 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; $(4626)  |
| Kojamo PLC | Euro STR - 0.28% | Monthly | SEBA | 7/14/25 | 160203 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (44815)  |
| Kontron AG | Euro STR - 2.10% | Monthly | JPHQ | 4/23/26 | 41848 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (2560)  |
| Kruk | 1-Day FEDEF - 0.50% | Monthly | MSCO | 7/17/25 | 75166 |  | &nbsp;&nbsp;&nbsp;&nbsp; (1402)  |
| Laboratorios Farmaceutico | 1-Day EONIA - 0.275% | Monthly | MSCO | 12/08/25 | 263975 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 13078  |
| Latour Investment AB Services | 1-Week STIBOR - 0.275% | Monthly | SEBA | 11/14/25 | 2936991 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 30179  |
| LEG Immobilien AG | Euro STR - 0.30% | Monthly | JPHQ | 8/21/25 | 145749 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (7025)  |
| Legal & General Group | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/23/25 | 362645 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (76395)  |
| Legrand France SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/09/25 | 95175 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(818)  |
| LEM | Euro STR - 0.35% | Monthly | JPHQ | 7/17/25 | 149296 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (44007)  |
| Lenzing AG | Euro STR - 0.30% | Monthly | JPHQ | 7/14/25 | 149130 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (23545)  |
| LG Energy Solutions | 1-Day FEDEF - 1.875% | Monthly | MSCS | 10/07/25 | 254437 |  | &nbsp;&nbsp;&nbsp;&nbsp; 12860  |
| Lindab International AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 6/20/25 | 1941573 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (12438)  |
| Linde PLC | Euro STR - 0.30% | Monthly | JPHQ | 5/15/26 | 252567 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (15530)  |
| Lindex Group | Euro STR - 0.275% | Monthly | SEBA | 7/09/25 | 72911 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 7954  |
| Linea Directa Aseguradora SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/25 | 9354 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (3468)  |
| Liontrust Asset Management PLC | 1-Day SONIA - 0.30% | Monthly | MSCO | 4/25/26 | 113094 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 6718  |
| Lloyds Banking Group | 1-Day SONIA - 0.275% | Monthly | MSCO | 3/20/26 | 91065 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (12474)  |
| London Stock Exchange Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 326641 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (96308)  |
| L'Oreal SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/09/25 | 155582 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 6800  |
| Lottomatica Group | Euro STR - 0.30% | Monthly | JPHQ | 4/16/26 | 339687 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (127034)  |
| Lotus Bakeries NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 138960 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (28285)  |
| &nbsp;&nbsp;&nbsp;&nbsp; LVMH Moet Hennessy Louis <br>Vuitton SE | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/03/25 | 169036 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 47085  |
| M&G PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 3/24/26 | 77655 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (17588)  |
| Magnora ASA | 1-Week NIBOR - 7.00% | Monthly | SEBA | 7/17/25 | 616623 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (6090)  |
| Mandatum OYJ | Euro STR - 0.275% | Monthly | SEBA | 7/17/25 | 381598 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 41268  |
| Marr | Euro STR - 0.30% | Monthly | JPHQ | 12/11/25 | 68112 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (5593)  |
| Mas Real Estate | 1-Day SABOR - 0.50% | Monthly | MSCO | 12/13/25 | 3725683 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (30957)  |
| Matas A/S | 1-Week CIBOR - 0.275% | Monthly | SEBA | 4/17/26 | 1920078 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; (6347)  |
| mBank SA | 1-Day FEDEF - 0.50% | Monthly | MSCS | 7/14/25 | 292987 |  | &nbsp;&nbsp;&nbsp;&nbsp; (299007)  |
| Medacta Group SA | Euro STR - 0.35% | Monthly | JPHQ | 7/17/25 | 207851 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (57979)  |
| Melrose Industries PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/24/26 | 124606 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 21211  |
| Mercedes-Benz Group AG | Euro STR - 0.30% | Monthly | JPHQ | 1/13/26 | 38402 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (3121)  |
| Merck KGaA | Euro STR - 0.30% | Monthly | JPHQ | 4/23/26 | 48926 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 247  |
| Merlin Properties Socimi SA | 1-Day EONIA - 0.30% | Monthly | MSCO | 3/12/26 | 304161 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (45628)  |
| Mersen | 1-Day EONIA - 0.275% | Monthly | MSCO | 5/21/26 | 71878 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 786  |
| Metall Zug AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 3/13/26 | 28140 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;(343)  |
| Metropole TV | 1-Day EONIA - 0.275% | Monthly | MSCO | 12/11/25 | 107284 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 5408  |
| Metsa Board OYJ | Euro STR - 0.32% | Monthly | SEBA | 6/13/26 | 148525 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 17748  |
| Metso Outotec OYJ | Euro STR - 0.28% | Monthly | SEBA | 7/17/25 | 367185 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 11347  |
| Millennium | 1-Day FEDEF - 0.50% | Monthly | MSCS | 7/17/25 | 211543 |  | &nbsp;&nbsp;&nbsp;&nbsp; (277445)  |
| Mips AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 9/20/25 | 1808041 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (1905)  |
| Mo-Bruk SA | 1-Day FEDEF - 2.375% | Monthly | MSCO | 5/28/26 | 31978 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3012  |
| Moncler | Euro STR - 0.30% | Monthly | JPHQ | 2/06/26 | 131296 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (17855)  |
| Morgan Advanced Materials | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/12/25 | 74537 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 843  |

---

<br> franklintempleton.com Annual Report 69 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** |
| Mortgage Advice Bureau | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/14/25 | 100332 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; $(25457)  |
| MultiChoice Group Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 5/20/26 | 7235632 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (37878)  |
| Munters Group AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 11/14/25 | 759132 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 1036  |
| Musti Group PLC | Euro STR - 0.28% | Monthly | SEBA | 7/12/25 | 26285 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;(282)  |
| NCAB Group AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 2/24/26 | 1765464 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 37613  |
| Neinor Homes SA | 1-Day EONIA - 0.275% | Monthly | MSCO | 3/25/26 | 94643 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (3130)  |
| Nemetschek SE | Euro STR - 0.30% | Monthly | JPHQ | 11/26/25 | 212901 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (66339)  |
| Neste Corp. | Euro STR - 0.28% | Monthly | SEBA | 7/17/25 | 155638 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (4582)  |
| Nestle SA | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/27/25 | 240030 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (14301)  |
| Newron Pharma | 1-Day SARON - 9.40% | Monthly | JPHQ | 10/07/25 | 54641 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (5899)  |
| Nexi SpA | Euro STR - 0.30% | Monthly | JPHQ | 10/14/25 | 168567 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (55667)  |
| Nibe Industrier AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 8/12/25 | 3225935 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 27552  |
| Nobia AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 11/11/25 | 1508750 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (11183)  |
| Nokian Tyres PLC | Euro STR - 0.28% | Monthly | SEBA | 8/23/25 | 366333 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 4723  |
| Northam Platinum Ltd. | 1-Day FEDEF | Monthly | MSCO | 2/11/26 | 4174268 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (59363)  |
| Novozymes A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/17/25 | 888292 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; (21017)  |
| NTG Nordic Transport Group | 1-Week CIBOR - 0.275% | Monthly | SEBA | 4/17/26 | 387892 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 10771  |
| Ocado Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 205941 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 36976  |
| OCI N.V. | Euro STR - 0.30% | Monthly | JPHQ | 9/09/25 | 239681 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 63639  |
| OMV AG | Euro STR - 0.30% | Monthly | JPHQ | 3/19/26 | 176548 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (6474)  |
| Orsted A/S | 1-Week CIBOR - 0.275% | Monthly | SEBA | 5/24/26 | 2514748 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 67092  |
| Outsurance Group Limited | 1-Day SABOR - 0.50% | Monthly | MSCS | 10/03/25 | 3176582 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (165528)  |
| Oxford BioMedica PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/26/25 | 19838 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (2217)  |
| Oxford Instruments PLC | 1-Day SONIA - 0.30% | Monthly | MSCO | 4/25/26 | 168448 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 34484  |
| Oxford Nanopore Technologies PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 5/13/26 | 85259 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 2066  |
| Palfinger AG | Euro STR - 0.30% | Monthly | JPHQ | 7/12/25 | 74977 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (17445)  |
| Paradox Interactive AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 1/10/26 | 1976479 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (2127)  |
| Paratus Energy Services | 1-Week NIBOR - 0.275% | Monthly | SEBA | 5/07/26 | 302090 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;(981)  |
| Partners Group Holding AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 8/08/25 | 221075 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (36688)  |
| Patrizia AG | Euro STR - 1.00% | Monthly | JPHQ | 7/17/25 | 158366 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (45194)  |
| Pearson ORD | 1-Day SONIA - 0.275% | Monthly | MSCO | 10/16/25 | 147181 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(498)  |
| Pennon Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 428931 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (67706)  |
| Pernod Ricard | 1-Day EONIA - 0.30% | Monthly | MSCS | 11/27/25 | 491817 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 193194  |
| Pharma Mar SA | 1-Day EONIA - 0.35% | Monthly | MSCO | 1/22/26 | 136805 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (154087)  |
| Phoenix Group Holdings PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 381100 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (119477)  |
| Piaggio | Euro STR - 0.30% | Monthly | JPHQ | 7/14/25 | 297430 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (7775)  |
| Pick n Pay Group (The) | 1-Day SABOR - 0.50% | Monthly | MSCS | 12/23/25 | 5503940 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (35212)  |
| Pinewood Technologies Group | 1-Day SONIA - 0.275% | Monthly | MSCO | 10/16/25 | 149468 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (38706)  |
| PNE AG | Euro STR - 0.70% | Monthly | JPHQ | 7/13/25 | 259674 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (36197)  |
| PPHE Hotel Group Ltd | 1-Day SONIA - 0.275% | Monthly | MSCO | 8/02/25 | 78878 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (20038)  |
| Primary Health Properties | 1-Day SONIA - 0.30% | Monthly | BZWS | 6/02/26 | 160384 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;(598)  |
| Prosus NV | Euro STR - 0.30% | Monthly | JPHQ | 9/20/25 | 101711 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (25860)  |
| Protector Forsikring ASA | 1-Week NIBOR - 0.275% | Monthly | SEBA | 8/28/25 | 1132495 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (23785)  |
| Proximus Group | Euro STR - 0.30% | Monthly | JPHQ | 9/18/25 | 345470 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (75707)  |
| PRS REIT PLC (The) | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 183075 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (102550)  |

---

<br> 70 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** |
| Prudential PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/14/25 | 205881 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; $(52894)  |
| PSP | 1-Day FEDEF | Monthly | JPHQ | 12/03/25 | 65350 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (8510)  |
| PureTech Health PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 134816 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 24010  |
| Qt Group OYJ | Euro STR - 4.16% | Monthly | SEBA | 7/17/25 | 74848 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (1051)  |
| Rathbones Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/30/25 | 143242 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 14592  |
| Ratos AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/25 | 1744995 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (20768)  |
| Reckitt Benckiser Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 199116 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (37391)  |
| Recticel | Euro STR - 0.30% | Monthly | JPHQ | 11/21/25 | 105949 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (22919)  |
| Redeia Corporacion SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 8/05/25 | 315826 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (15119)  |
| RELX PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 88165 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (12245)  |
| Remgro Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCO | 10/16/25 | 4259095 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (70524)  |
| Remy Cointreau | 1-Day EONIA - 0.30% | Monthly | MSCS | 12/11/25 | 463398 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 200907  |
| Renew Holdings ORD | 1-Day SONIA - 0.275% | Monthly | MSCO | 4/20/26 | 113426 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (9260)  |
| Renishaw PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 2/13/26 | 168429 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 62121  |
| Rentokil Initial PLC | 1-Day FEDEF - 0.65% | Monthly | MSCS | 11/27/25 | 346480 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 44824  |
| Resilient REIT Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCO | 3/14/26 | 246999 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;(751)  |
| Revenio Group Corp. | Euro STR - 0.28% | Monthly | SEBA | 7/17/25 | 123813 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (12502)  |
| Ringkjoebing Landbobank A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/17/25 | 2801722 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; (29208)  |
| RS Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/20/25 | 158090 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 44495  |
| RTL Group | Euro STR - 0.30% | Monthly | JPHQ | 1/30/26 | 441513 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (27910)  |
| RVRC Holding | 1-Week STIBOR - 0.28% | Monthly | SEBA | 10/11/25 | 1183053 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 1451  |
| Sacyr SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/25 | 378705 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (135360)  |
| Safestore Holdings PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 10/21/25 | 428967 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 65693  |
| Saga PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 171114 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (23387)  |
| Sagax AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 12/06/25 | 1901126 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 2142  |
| Salmon Evolution ASA | 1-Week NIBOR - 8.50% | Monthly | SEBA | 7/12/25 | 1609535 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; 926  |
| Sampo PLC | Euro STR - 0.275% | Monthly | SEBA | 7/17/25 | 393533 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (37368)  |
| Sandvik AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 11/27/25 | 1919690 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 16548  |
| Sanlorenzo | Euro STR - 0.30% | Monthly | JPHQ | 10/20/25 | 68617 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (1494)  |
| Santander Bank Polska SA | 1-Day FEDEF - 0.50% | Monthly | MSCS | 7/17/25 | 20144 |  | &nbsp;&nbsp;&nbsp;&nbsp; (4034) |
| SBM Offshore NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 146075 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (38472)  |
| Scandinavian Tobacco Group | 1-Week CIBOR - 0.275% | Monthly | SEBA | 6/12/26 | 296264 | DKK | &nbsp;&nbsp;&nbsp;&nbsp; 6577  |
| Scatec ASA | 1-Week NIBOR - 0.275% | Monthly | SEBA | 4/26/26 | 1206457 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (6266)  |
| Schibsted ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/17/25 | 4287592 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (51414)  |
|  Schoeller-Bleckmann Oilfield Equipment AG | Euro STR - 0.30% | Monthly | JPHQ | 7/13/25 | 194910 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (10221)  |
| Scor SE | 1-Day EONIA - 0.275% | Monthly | MSCO | 4/27/26 | 145932 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (13394)  |
| Sdiptech AB | 1-Week STIBOR - 1.00% | Monthly | SEBA | 7/17/25 | 2192167 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (27388)  |
| Seche Environnement | 1-Day EONIA - 0.275% | Monthly | MSCO | 3/30/26 | 37506 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (14573)  |
| Sectra AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 3/27/26 | 1644744 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (43955)  |
| secunet Security Networks AG | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 74449 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (2326)  |
| Sedana Medical AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 11/14/25 | 219705 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (6625)  |
| Senior PLC | 1-Day SONIA - 0.30% | Monthly | MSCO | 3/20/26 | 29460 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (1492)  |
| Sensirion AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 4/22/26 | 146448 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (56744)  |
| Sesa | Euro STR - 1.25% | Monthly | JPHQ | 3/25/26 | 59221 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (23468)  |
| Severfield PLC | 1-Day FEDEF | Monthly | MSCO | 1/02/26 | 42480 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 15099  |

---

<br> franklintempleton.com Annual Report 71 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** |
| Severn Trent PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/25 | 160587 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; $(21337)  |
| Severn Trent PLC | 1-Day SONIA - 0.30% | Monthly | MSCO | 1/08/26 | 14199 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (1515)  |
| Shaftesbury Capital PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 9/26/25 | 288972 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (61307)  |
| Shop Apotheke Europe NV | Euro STR - 0.85% | Monthly | JPHQ | 7/17/25 | 261784 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 13290  |
| Shurgard | Euro STR - 0.30% | Monthly | JPHQ | 4/14/26 | 268816 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (45566)  |
| Siemens AG | Euro STR - 0.30% | Monthly | JPHQ | 6/25/25 | 152215 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (14666)  |
| Siemens Healthineers AG | Euro STR - 0.30% | Monthly | JPHQ | 8/21/25 | 121115 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (10521)  |
| Sika | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/08/25 | 174068 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (42112)  |
| Siltronic AG | Euro STR - 1.05% | Monthly | JPHQ | 5/13/26 | 112554 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (4265)  |
| Sixt SE | Euro STR - 0.30% | Monthly | JPHQ | 4/17/26 | 150328 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (38166)  |
| SKAN AG | Euro STR - 0.35% | Monthly | JPHQ | 7/17/25 | 29739 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (7025)  |
| Skandinaviska Enskilda Bank | 1-Day FEDEF | Monthly | SEBA | 2/11/26 | 2350535 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 10519  |
| Sligro Food Group | Euro STR - 0.30% | Monthly | JPHQ | 8/29/25 | 18302 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (7291)  |
| SMA Solar Technology AG | Euro STR - 9.80% | Monthly | JPHQ | 7/29/25 | 36165 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (19497)  |
| Smurfit Westrock PLC | 1-Day FEDEF | Monthly | MSCO | 2/24/26 | 219171 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 29919  |
| Snam SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 245833 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (41470)  |
| Softcat PLC | 1-Day SONIA - 0.30% | Monthly | MSCO | 3/28/26 | 214500 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (34213)  |
| SoftwareONE | Euro STR - 0.35% | Monthly | JPHQ | 7/15/25 | 83853 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (58301)  |
| Solaria Energia y Medio Ambiente SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 7/17/25 | 189157 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 42506  |
| SolGold PLC | 1-Day SONIA - 0.56% | Monthly | MSCS | 7/17/25 | 145593 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 76378  |
| <sup>b</sup>Soltec Power Holdings SA | 1-Day EONIA - 0.73% | Monthly | MSCS | 7/17/25 | 43623 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; 24296  |
| Somero Enterprises | 1-Day SONIA - 1.25% | Monthly | MSCO | 12/01/25 | 58561 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 11463  |
| Somnigroup International | 1-Day FEDEF - 0.30% | Monthly | BZWS | 4/07/26 | 97261 |  | &nbsp;&nbsp;&nbsp;&nbsp; 196  |
| Sonova Holding AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 8/08/25 | 116923 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 4346  |
| Sparebank 1 Oestlandet | 1-Week NIBOR - 0.28% | Monthly | SEBA | 12/23/25 | 1695015 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (11332)  |
| SpareBank 1 SMN | 1-Week NIBOR - 1.50% | Monthly | SEBA | 10/23/25 | 6431177 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (51068)  |
| SpareBank 1 SR Bank ASA | 1-Week NIBOR - 0.28% | Monthly | SEBA | 7/22/25 | 3750515 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (18407)  |
| Sparebanken Vest | 1-Week NIBOR - 0.275% | Monthly | SEBA | 3/24/26 | 796061 | NOK | &nbsp;&nbsp;&nbsp;&nbsp; (9774)  |
| Spectris PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/17/25 | 178159 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 62339  |
| Spirax-Sarco Engineering PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 11/27/25 | 393556 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; 174812  |
| St Galler Kantonalbank AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 11/06/25 | 95790 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (4762)  |
| Stabilus SE | Euro STR - 0.30% | Monthly | JPHQ | 6/25/25 | 58501 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (14700)  |
| Stellantis | Euro STR - 0.30% | Monthly | JPHQ | 5/08/26 | 120640 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (2385)  |
| Storskogen Group AB | 1-Week STIBOR - 0.75% | Monthly | SEBA | 7/17/25 | 4535991 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 111001  |
| STOXX Europe 600 Utilities Index | 1-Day EONIA - 0.45% | Monthly | MSCS | 9/13/25 | 663455 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (18718)  |
| STOXX Europe 600 Utilities Index | 1-Day EONIA - 0.45% | Monthly | MSCS | 2/05/26 | 439771 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (3483)  |
| Straumann Group | 1-Day SARON - 0.35% | Monthly | JPHQ | 10/18/25 | 91693 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (17614)  |
| Sudzucker AG | Euro STR - 0.30% | Monthly | JPHQ | 8/19/25 | 125976 | EUR | &nbsp;&nbsp;&nbsp;&nbsp; (2500)  |
| Sunrise | 1-Day SARON - 0.35% | Monthly | JPHQ | 5/08/26 | 57321 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; 2990  |
| Super Group Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 7/19/25 | 5364303 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp; (29935)  |
| Supermarket Income REIT | 1-Day SONIA - 0.28% | Monthly | MSCS | 9/16/25 | 141262 | GBP | &nbsp;&nbsp;&nbsp;&nbsp; (26232)  |
| Surgical Science Sweden AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 8/01/25 | 1991950 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (19609)  |
| Svenska Cellulosa AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/25 | 3395134 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; 19243  |
| Swedbank AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 2/11/26 | 1403985 | SEK | &nbsp;&nbsp;&nbsp;&nbsp; (1726)  |
| Swisscom AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 2/03/26 | 304493 | CHF | &nbsp;&nbsp;&nbsp;&nbsp; (46437)  |

---

<br> 72 Annual Report franklintempleton.com <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** |
| Sydbank AS | 1-Week CIBOR - 0.275% | Monthly | SEBA | 5/27/26 | 425014 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $690  |
| Syensqo | Euro STR - 0.30% | Monthly | JPHQ | 5/08/26 | 212019 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (9260)  |
| TAG Immobilien AG | Euro STR - 0.30% | Monthly | JPHQ | 8/16/25 | 167145 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (16614)  |
| Tamburi | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 93096 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (20273)  |
| Tecan Group AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 3/10/26 | 29859 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1470  |
| Technoprobe | Euro STR - 0.30% | Monthly | JPHQ | 10/16/25 | 190069 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (79482)  |
| Terna SpA | Euro STR - 0.30% | Monthly | JPHQ | 11/27/25 | 206360 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (33605)  |
| TGS ASA | 1-Week NIBOR - 1.50% | Monthly | SEBA | 4/16/26 | 1031163 | NOK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12055  |
| Thule Group AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/25 | 777871 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14077  |
| ThyssenKrupp Nucera AG | Euro STR - 0.34% | Monthly | JPHQ | 3/28/26 | 190851 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (43942)  |
| Tietoevry Corp. | Euro STR - 0.275% | Monthly | SEBA | 11/29/25 | 161108 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25653  |
| Tietoevry Corp. | Euro STR - 0.275% | Monthly | SEBA | 3/04/26 | 42263 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 161  |
| Tikehau Capital SCA | 1-Day EONIA - 4.00% | Monthly | MSCS | 7/17/25 | 122008 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5916  |
| Tinexta SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 202411 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (125796)  |
| TomTom International BV | Euro STR - 0.30% | Monthly | JPHQ | 7/13/25 | 132167 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (14835)  |
| TotalEnergies | 1-Day EONIA - 0.275% | Monthly | MSCO | 3/04/26 | 106915 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11972  |
| Transaction Capital Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCS | 7/17/25 | 1000107 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36984  |
| Traton SE | Euro STR - 0.80% | Monthly | JPHQ | 7/17/25 | 88244 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1243)  |
| Trigano | 1-Day EONIA - 0.30% | Monthly | MSCS | 8/09/25 | 98653 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7358)  |
| Tritax Big Box | 1-Day SONIA - 0.275% | Monthly | MSCO | 4/24/26 | 98082 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7954)  |
| Troax Group AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 8/02/25 | 1401764 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20182  |
| Trustpilot Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 102440 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16715  |
| Tryg A/S | 1-Week CIBOR - 0.28% | Monthly | SEBA | 7/13/25 | 3024595 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (22544)  |
| Tubacex SA | 1-Day EONIA - 1.63% | Monthly | MSCS | 7/17/25 | 69017 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (22466)  |
| UNIQA Insurance Group AG | Euro STR - 0.30% | Monthly | JPHQ | 3/18/26 | 277039 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (117056)  |
| Unite Group PLC (The) | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/05/25 | 365799 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23456  |
| United Internet AG | Euro STR - 0.30% | Monthly | JPHQ | 3/20/26 | 356607 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (135545)  |
| Universal Music Group | Euro STR - 0.30% | Monthly | JPHQ | 9/05/25 | 37970 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10070)  |
| Urban Logistics REIT PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 7/17/25 | 250961 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (139250)  |
| Utilities Select Sector | 1-Day FEDEF - 0.30% | Monthly | MSCS | 3/25/26 | 716519 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6864)  |
| Valneva SE | 1-Day EONIA - 4.50% | Monthly | MSCS | 5/16/26 | 98890 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35124  |
| VAT Group AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 4/22/26 | 259359 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (65212)  |
| Verallia | 1-Day EONIA - 0.275% | Monthly | MSCO | 1/14/26 | 153428 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3876)  |
| VERBIO Vereinigte BioEnergie AG | Euro STR - 1.00% | Monthly | JPHQ | 7/01/25 | 83288 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (18546)  |
| Vestel | 1-Day FEDEF - 7.63% | Monthly | MSCS | 9/09/25 | 88881 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48096  |
| VGP NV | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 148893 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (37653)  |
| Vidrala SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 9/30/25 | 57849 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6242)  |
| Vimian Group | 1-Week STIBOR - 0.275% | Monthly | SEBA | 7/01/25 | 2233683 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (35016)  |
| Vinci | 1-Day EONIA - 0.30% | Monthly | MSCS | 11/27/25 | 283139 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (57106)  |
| Virbac | 1-Day EONIA - 0.30% | Monthly | MSCS | 4/01/26 | 104012 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (9615)  |
| <sup>e</sup>Viscofan SA | 1-Day EONIA - 0.275% | Monthly | MSCO | 8/05/25 |  | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10444)  |
| Viscofan SA | 1-Day EONIA - 0.35% | Monthly | MSCS | 8/05/25 | 283338 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (49947)  |
| Vistry Group PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 6/03/26 | 101302 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5500)  |
| Vitec Software Group AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 5/22/26 | 4394857 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 105508  |
| VNV Global AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 2/17/26 | 510328 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2542  |

---

<br> franklintempleton.com Annual Report 73 <br>

------

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS

**K2 Alternative Strategies Fund (continued)** 

**Total Return Swap Contracts (continued)** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Instrument** | **Financing Rate** | **Payment** <br>**Frequency** | **Counterparty** | **Maturity** <br>**Date** | **Notional**<br>**Value<sup>\*</sup>** |  | **Value/Unrealized**<br>**Appreciation** <br>(Depreciation)  |
| **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** | **OTC Swap Contracts (continued)** |
| **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** | **Equity Contracts - Short<sup>d</sup> (continued)** |
| Volati AB | 1-Week STIBOR - 0.275% | Monthly | SEBA | 12/06/25 | 684104 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $(6489)  |
| Voltalia SA | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/17/25 | 204198 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21216  |
| Vonovia SE | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 151134 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (27624)  |
| Wacker Chemie AG | Euro STR - 0.30% | Monthly | JPHQ | 3/20/26 | 156328 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7958)  |
| Wallenstam AB Series B | 1-Week STIBOR - 0.275% | Monthly | SEBA | 7/17/25 | 2877125 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (33211)  |
| Warteck | 1-Day SARON - 6.50% | Monthly | JPHQ | 2/03/26 | 80850 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3850)  |
| Watches of Switzerland | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/16/26 | 153277 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23245  |
| Wavestone | 1-Day EONIA - 0.30% | Monthly | MSCS | 7/18/25 | 84356 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7052)  |
| Wendel Group | 1-Day EONIA - 0.30% | Monthly | MSCS | 5/27/26 | 467340 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7948)  |
| WH Smith PLC | 1-Day SONIA - 0.275% | Monthly | MSCO | 7/17/25 | 78877 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16580  |
| Whitbread PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 4/14/26 | 284108 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8731  |
| Wienerberger AG | Euro STR - 0.30% | Monthly | JPHQ | 8/26/25 | 342021 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (92720)  |
| Wise PLC Class A ORD | 1-Day SONIA - 0.275% | Monthly | MSCO | 2/24/26 | 227810 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (38120)  |
| WithSecure Corp. | Euro STR - 0.275% | Monthly | SEBA | 4/22/26 | 54315 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5935)  |
| Wizz Air Holdings PLC | 1-Day SONIA - 0.30% | Monthly | MSCS | 12/19/25 | 243965 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 30182  |
| Wolters Kluwer | Euro STR - 0.30% | Monthly | JPHQ | 3/25/26 | 89865 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (14347)  |
| Woolworths Holdings Ltd. | 1-Day SABOR - 0.50% | Monthly | MSCO | 9/15/25 | 7082031 | ZAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20694  |
| Wustenrot & Wurttembergis | Euro STR - 0.30% | Monthly | JPHQ | 9/30/25 | 7665 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(821)  |
| XP Power Ltd. | 1-Day SONIA - 0.30% | Monthly | MSCS | 8/30/25 | 2766 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 107  |
| XTB | 1-Day FEDEF - 0.50% | Monthly | MSCO | 6/30/25 | 315805 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (93260)  |
| Xvivo Perfusion AB | 1-Week STIBOR - 0.28% | Monthly | SEBA | 7/17/25 | 1947036 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 39192  |
| YIT Corp. | Euro STR - 0.275% | Monthly | SEBA | 11/08/25 | 192588 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (38383)  |
| YouGov ORD | 1-Day SONIA - 0.30% | Monthly | MSCO | 5/08/26 | 68906 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25190  |
| Young & Co's Brewery | 1-Day SONIA - 2.50% | Monthly | MSCO | 6/23/25 | 123309 | GBP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8246)  |
| Ypsomed Holding AG | 1-Day SARON - 0.35% | Monthly | JPHQ | 7/17/25 | 153500 | CHF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (59171)  |
| Yubico AB | 1-Week STIBOR - 1.25% | Monthly | SEBA | 4/03/26 | 2183476 | SEK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38858  |
| Zealand Pharma A/S | 1-Week CIBOR - 0.45% | Monthly | SEBA | 7/17/25 | 1081723 | DKK | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28405  |
| Zignago Vetro SpA | Euro STR - 0.30% | Monthly | JPHQ | 7/17/25 | 202114 | EUR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10303)  |
|  |  |  |  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (9018840) |
| **Interest Rate Contracts - Long<sup>a</sup>**<br>|  |  |  |  |  |  |  |
| Egyptian Treasury Bills | 1-Day FEDEF | Monthly | CITI | 6/13/25 | 1056622 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 85892  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total - Total Return Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total - Total Return Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total - Total Return Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total - Total Return Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total - Total Return Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total - Total Return Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp; Total - Total Return Swap Contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $4935240 |

---

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

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

<sup>b</sup>Fair valued using significant unobservable input. See Note 13 regarding fair value investments.

<sup>c</sup>See Note 8 regarding investments in Russian securities.

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

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

See Note 11 regarding other derivative information.

See Abbreviations on page 94.

<br> 74 Annual Report franklintempleton.com <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Assets and Liabilities

May 31, 2025

**K2 Alternative Strategies Fund** 

---

| | |
|:---|:---|
| **Assets:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in securities:<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost – Unaffiliated issuers | $483616435  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost – Non-controlled affiliates (Note 3f) | 2829000  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Value – Unaffiliated issuers<sup>†</sup> | $489643677  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Value – Non-controlled affiliates (Note 3f) | 2829000  |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency, at value (cost $8,132,568) | 8147193  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivables:<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment securities sold | 11906261  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital shares sold | 62507  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest | 2512268  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits with brokers for:<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold short | 87631863  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OTC derivative contracts | 11504768  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | 6885101  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Centrally cleared swap contracts | 3675275  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from brokers | 6954223  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on futures contracts | 297179  |
| &nbsp;&nbsp;&nbsp;&nbsp; OTC swap contracts (upfront payments $503,144) | 189481  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized appreciation on OTC forward exchange contracts | 1391624  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized appreciation on OTC swap contracts | 23008118  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | 656638538  |
| **Liabilities:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables:<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment securities purchased | 6637805  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital shares redeemed | 259850  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 640110  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution fees | 32345  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 972  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer agent fees | 187640  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to brokers | 7868010  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variation margin on centrally cleared swap contracts | 30106  |
| &nbsp;&nbsp;&nbsp;&nbsp; OTC swap contracts (upfront receipts $703,382) | 613876  |
| &nbsp;&nbsp;&nbsp;&nbsp; Funds advanced by custodian | 163010  |
| &nbsp;&nbsp;&nbsp;&nbsp; Options written, at value (premiums received $88,508) | 49519  |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities sold short, at value (proceeds $97,875,172) | 94443641  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payable upon return of securities loaned (Note 1f) | 2829000  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized depreciation on OTC forward exchange contracts | 3198535  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized depreciation on OTC swap contracts | 18243432  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized depreciation on unfunded loan commitments (Note 10) | 47549  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities | 284981  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 135530381  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $521108157  |
| **Net assets consist of:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Paid-in capital | $530440603  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributable earnings (loss) | (9332446)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $521108157  |
| <sup>†</sup>Includes securities loaned | $4200256 |

---

<br> franklintempleton.com &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accompanying notes are an integral part of these consolidated financial statements. \| Annual Report 75 <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Assets and Liabilities (continued)

May 31, 2025

**K2 Alternative Strategies Fund** 

---

| | |
|:---|:---|
| **Class A:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $56487112  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares outstanding | 5109369  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net asset value per share<sup>a,b</sup> | $11.06  |
| &nbsp;&nbsp;&nbsp;&nbsp; Maximum offering price per share (net asset value per share ÷ 94.50%)<sup>a</sup> | $11.70  |
| **Class C:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $4921726  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares outstanding | 461833  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net asset value and maximum offering price per share<sup>a,b</sup> | $10.66  |
| **Class R:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $441639  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares outstanding | 39799  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net asset value and maximum offering price per share<sup>a</sup> | $11.10  |
| **Class R6:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $113807577  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares outstanding | 10207741  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net asset value and maximum offering price per share<sup>a</sup> | $11.15  |
| **Advisor Class:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net assets, at value | $345450103  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares outstanding | 31003629  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net asset value and maximum offering price per share<sup>a</sup> | $11.14 |

---

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

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

<br> 76 Annual Report \| The accompanying notes are an integral part of these consolidated financial statements. franklintempleton.com <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Operations

for the year ended May 31, 2025

**K2 Alternative Strategies Fund** 

---

| | |
|:---|:---|
| **Investment income:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends: (net of foreign taxes)\*<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | $10833488  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest: (net of foreign taxes)~<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | 17565403  |
| &nbsp;&nbsp;&nbsp;&nbsp; Income from securities loaned:<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated entities (net of fees and rebates) | (66249)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlled affiliates (Note 3f) | 110976  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 28443618  |
| **Expenses:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Management fees (Note 3a) | 9720498  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution fees: (Note 3c)<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | 147360  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C | 65574  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R | 1564  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer agent fees: (Note 3e)<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | 52819  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C | 5882  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R | 280  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R6 | 26214  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | 334327  |
| &nbsp;&nbsp;&nbsp;&nbsp; Custodian fees (Note 4) . | 138700  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reports to shareholders fees | 48147  |
| &nbsp;&nbsp;&nbsp;&nbsp; Registration and filing fees | 125199  |
| &nbsp;&nbsp;&nbsp;&nbsp; Professional fees | 588485  |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees and expenses | 260091  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends on securities sold short | 1033059  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest on securities sold short | 1538618  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | 87999  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 14174816  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expense reductions (Note 4) | (100111)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses waived/paid by affiliates (Note 3f and 3g) | (1613007)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 12461698  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 15981920  |
| **Realized and unrealized gains (losses):**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Net realized gain (loss) from:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments:<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | 25990022  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | 68999  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (119576)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward exchange contracts | 331904  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | (2048106)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold short | (1154883)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | 17392854  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 40461214  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Net change in unrealized appreciation (depreciation) on:**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments:<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | (22073139)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written options | 526017  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Translation of other assets and liabilities denominated in foreign currencies | 60386  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward exchange contracts | (3166460)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures contracts | 2192006  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold short | 508166  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap contracts | (1445671)  |
| &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) | (23398695)  |
| Net realized and unrealized gain (loss) | 17062519  |
| Net increase (decrease) in net assets resulting from operations | $33044439  |
| \* Foreign taxes withheld on dividends | $136628  |
| ~ Foreign taxes withheld on interest | $12937 |

---

<br> franklintempleton.com &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accompanying notes are an integral part of these consolidated financial statements. \| Annual Report 77 <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Changes in Net Assets

**K2 Alternative Strategies Fund** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended May 31,**  | **Year Ended May 31,**  |
|  | **2025** | **2024**  |
| **Increase (decrease) in net assets:**<br>|  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Operations:**<br>|  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | $15981920 | $17428592  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) | 40461214 | 34705778  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) | (23398695) | 12441593  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) in net assets resulting from operations | 33044439 | 64575963  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Distributions to shareholders:**<br>|  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (6134800) | (293245)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C | (637709) | —  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R | (34770) | (477)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R6 | (14026917) | (452983)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | (38251573) | (3755928)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributions to shareholders | (59085769) | (4502633)  |
| **Capital share transactions: (Note 2)**<br>|  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A | (3983668) | (19014149)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class C | (2708243) | (8605211)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R | 110339 | (32623)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class R6 | (4679920) | 73646565  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | (76258964) | (319099003)  |
| Total capital share transactions | (87520456) | (273104421)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) in net assets | (113561786) | (213031091)  |
| **Net assets:**<br>|  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of year | 634669943 | 847701034  |
| &nbsp;&nbsp;&nbsp;&nbsp; End of year | $521108157 | $634669943 |

---

<br> 78 Annual Report \| The accompanying notes are an integral part of these consolidated financial statements. franklintempleton.com <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Notes to Consolidated Financial Statements

**K2 Alternative Strategies Fund** 

1. Organization and Significant Accounting Policies

Franklin Alternative Strategies Funds (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of one fund, K2 Alternative Strategies Fund (Fund). The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (ASC 946) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The Fund offers five classes of shares: Class A, Class C, Class R, Class R6 and Advisor Class. Class C shares automatically convert to Class A shares on a monthly basis, after they have been held for 8 years. Each class of shares may differ by its initial sales load, contingent deferred sales charges, voting rights on matters affecting a single class, its exchange privilege and fees due to differing arrangements for distribution and transfer agent fees.

The following summarizes the Fund's significant accounting policies.

a. Financial Instrument Valuation

The Fund's investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Trust's Board of Trustees (the Board), the Board has designated the Fund's investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund's administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC). The Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Equity securities, exchange traded funds and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

Debt securities generally trade in the OTC market rather than on a securities exchange. The Fund's pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value. Securities denominated in a foreign currency are converted into their U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the date that the values of the foreign debt securities are determined.

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

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

The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.

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

<br> franklintempleton.com Annual Report 79 <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the value of the Fund's portfolio securities to the latest indications of fair value at 4 p.m. Eastern time. At May 31, 2025, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 within the fair value hierarchy (referred to as "market level fair value"). See the Fair Value Measurements note for more information.

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

b. Foreign Currency Translation

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

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

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

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

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

The Fund may purchase securities on a when-issued, forward commitment or delayed delivery basis, with payment and delivery scheduled for a future date. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of holding the securities, it may sell the securities before the settlement date. Sufficient assets have been segregated for these securities.

d. Derivative Financial Instruments

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

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

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

<br> 80 Annual Report franklintempleton.com <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

1. Organization and Significant Accounting Policies (continued)

d. Derivative Financial Instruments (continued)

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 futures contract is an agreement between the Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Consolidated Statement of Assets and Liabilities. Futures contracts outstanding at period end, if any, are listed in the Fund's Consolidated Schedule of Investments.

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

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

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

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

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

<br> franklintempleton.com Annual Report 81 <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

1. Organization and Significant Accounting Policies (continued)

d. Derivative Financial Instruments (continued)

payments to be paid and to be received are accrued daily and recorded as unrealized appreciation or depreciation until the payments are made, at which time they are realized. Interest rate swap contracts outstanding at period end, if any, are listed in the Fund's Consolidated Schedule of Investments.

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

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

See Note 11 regarding other derivative information.

e. Securities Sold Short

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

The Fund is required to establish a margin account with the broker lending the security sold short. While the short sale is outstanding, the broker retains the proceeds of the short sale to the extent necessary to meet margin requirements until the short position is closed out. A deposit must also be maintained

with the Fund's custodian/counterparty broker consisting of cash and/or securities having a value equal to a specified percentage of the value of the securities sold short. The Fund may receive income from the investment of cash collateral. The Fund is obligated to pay fees for borrowing the securities sold short and is required to pay the counterparty any dividends and/or interest due on securities sold short. Such dividends and/or interest and any security borrowing fees are recorded as an expense to the Fund.

f. Securities Lending

The Fund participates in an agency based securities lending program to earn additional income. The Fund receives collateral in the form of cash and/or U.S. Government and Agency securities against the loaned securities in an amount equal to at least 102% of the fair value of the loaned securities. Collateral is maintained over the life of the loan in an amount not less than 100% of the fair value of loaned securities, as determined at the close of Fund business each day; any additional collateral required due to changes in security values is delivered to the Fund on the next business day. Any cash collateral received is deposited into a joint cash account with other funds and is used to invest in a money market fund managed by Franklin Advisers, Inc., an affiliate of the Fund, and/or a joint repurchase agreement. Additionally, the Fund received $1,481,892 in U.S. Government and Agency securities as collateral. These securities are held as collateral in segregated accounts with the Fund's custodian. The Fund cannot repledge or resell these securities held as collateral. As such, the non-cash collateral is excluded from the Consolidated Statement of Assets and Liabilities. The Fund may receive income from the investment of cash collateral, in addition to lending fees paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third party vendor, is reported separately in the Consolidated Statement of Operations. The Fund bears the market risk with respect to any cash collateral investment, securities loaned, and the risk that the agent may default on its obligation to the Fund. If the borrower defaults on its obligations to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower.

g. Investments in K2 Holdings Investment Corp.

**(K2 Subsidiary)** 

The Fund invests in certain financial instruments and commodity-linked derivative investments through its investment in the K2 Subsidiary. The K2 Subsidiary is a Cayman Islands exempted company with limited liability, is a wholly-owned subsidiary of the Fund, and is able to invest in certain financial instruments and commodity-linked derivative investments consistent with the investment objective of the Fund. At May 31, 2025, the K2 Subsidiary's investments, as well as any other assets and liabilities of the K2 Subsidiary, are reflected in the Fund's Consolidated Schedule of Investments

<br> 82 Annual Report franklintempleton.com <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

1. Organization and Significant Accounting Policies (continued)

g. Investments in K2 Holdings Investment Corp.

**(K2 Subsidiary) (continued)** 

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 May 31, 2025, the net assets of the K2 Subsidiary were $56,549,235 representing 10.9% of the Fund's consolidated net assets. The Fund's investment in the K2 Subsidiary is limited to 25% of consolidated assets.

h. Senior Floating Rate Interests

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

i. Income and Deferred Taxes

It is the Fund's policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.

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

The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of May 31, 2025, the Fund has determined that no tax liability is required in its consolidated financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.

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

j. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest income (including interest income from payment in-kind securities, if any) and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Paydown gains and losses are recorded as an adjustment to interest income. The Fund may receive other income from investments in senior secured corporate loans or unfunded commitments, including amendment fees, consent fees or commitment fees. These fees are recorded as income when received by the Fund. Facility fees are recognized as income over the expected term of the loan. Dividend income and dividends declared on securities sold short are recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Fund. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

Realized and unrealized gains and losses and net investment income, excluding class specific expenses, are allocated daily to each class of shares based upon the relative proportion of net assets of each class. Differences in per share distributions by class are generally due to differences in class specific expenses.

k. Accounting Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

l. Guarantees and Indemnifications

Under the Trust's organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Fund, enters into contracts with service providers that contain general indemnification clauses. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.

<br> franklintempleton.com Annual Report 83 <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

2. Shares of Beneficial Interest

At May 31, 2025, there were an unlimited number of shares authorized (without par value). Transactions in the Fund's shares were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  | **Year Ended May 31,**  |
|  | **2025** | **2025** | **2024**  | **2024**  |
|  | **Shares** | **Amount** | **Shares** | **Amount**  |
| **Class A Shares:**<br>|  |  |  |  |
| Shares sold<sup>a</sup> | 608387  | $6870172  | 901608  | $9940863  |
| Shares issued in reinvestment of distributions | 523561  | 5701580  | 24442  | 267146  |
| Shares redeemed | (1447837) | (16555420) | (2655907) | (29222158)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (315889) | $(3983668) | (1729857) | $(19014149)  |
| **Class C Shares:**<br>|  |  |  |  |
| Shares sold | 15673  | $170732  | 31350  | $335902  |
| Shares issued in reinvestment of distributions | 53738  | 565862  | —  | —  |
| Shares redeemed<sup>a</sup> | (313711) | (3444837) | (843526) | (8941113)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (244300) | $(2708243) | (812176) | $(8605211)  |
| **Class R Shares:**<br>|  |  |  |  |
| Shares sold | 20823  | $230741  | 5288  | $59744  |
| Shares issued in reinvestment of distributions | 3172  | 34770  | 44  | 477  |
| Shares redeemed | (13853) | (155172) | (8352) | (92844)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | 10142 | $110339  | (3020) | $(32623)  |
| **Class R6 Shares:**<br>|  |  |  |  |
| Shares sold | 7697487  | $91462413  | 9340788  | $105720673  |
| Shares issued in reinvestment of distributions | 1270740  | 13940018  | 36852  | 405743  |
| Shares redeemed | (9321314) | (110082351) | (2916319) | (32479851)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (353087) | $(4679920) | 6461321  | $73646565  |
| **Advisor Class Shares:**<br>|  |  |  |  |
| Shares sold | 5686022  | $63924437  | 5211753  | $57591690  |
| Shares issued in reinvestment of distributions | 2587731  | 28361533  | 240415  | 2644566  |
| Shares redeemed | (14595218) | (168544934) | (34178446) | (379335259)  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) | (6321465) | $(76258964) | (28726278) | $(319099003) |

---

<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**  |
| 1.70% | Up to and including $1 billion  |
| 1.65% | Over $1 billion, up to and including $1.5 billion  |
| 1.60% | Over $1.5 billion, up to and including $3 billion  |
| 1.55% | In excess of $3 billion |

---

For the year ended May 31, 2025, the gross effective management fee rate was 1.70% of the Fund's average daily net assets.

<br> 84 Annual Report franklintempleton.com <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

3. Transactions with Affiliates (continued)

a. Management Fees (continued)

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.

---

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

---

<sup>\*</sup> 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 | &nbsp;&nbsp;&nbsp;&nbsp; 0.30%  |
| Class C | &nbsp;&nbsp;&nbsp;&nbsp; 1.00%  |
| Class R | &nbsp;&nbsp;&nbsp;&nbsp; 0.50% |

---

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

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 year:

---

| | |
|:---|:---|
| Sales charges retained net of commissions paid to unaffiliated brokers/dealers | &nbsp;&nbsp;&nbsp;&nbsp; $2143  |
| CDSC retained  | &nbsp;&nbsp;&nbsp;&nbsp; $1408 |

---

<br> franklintempleton.com Annual Report 85 <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

3. Transactions with Affiliates (continued)

e. Transfer Agent Fees

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

For the year ended May 31, 2025, the Fund paid transfer agent fees as noted in the Consolidated Statement of Operations, of which $118,033 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 year ended May 31, 2025, the Fund held investments in affiliated management investment companies as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Value at** <br>**Beginning** <br>**of Year** | **Purchases** | **Sales** | **Realized** <br>**Gain (Loss)** | **Net Change in**<br>**Unrealized** <br>**Appreciation** <br>(Depreciation) | **Value at** <br>**End of** <br>**Year** | **Number of**<br>**Shares** <br>**Held at End** <br>**of Year** | **Income** <br>**from** <br>**Securities** <br>**Loaned**  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Non-Controlled Affiliates**<br>**Institutional Fiduciary Trust** <br>**Money Market Portfolio,** <br>**4.08%**  | $882000 | $43186000 | $(41239000) | &nbsp;&nbsp;&nbsp; $— | &nbsp;&nbsp;&nbsp;&nbsp; $— | $2829000 | 2829000 | $110976 |

---

g. Waiver and Expense Reimbursements

K2 Advisors has contractually agreed in advance to waive or limit its fees and to assume as their own expense certain expenses otherwise payable by the Fund so that the operating expenses (excluding interest expense, distribution fees, acquired fund fees and expenses, expenses related to securities sold short and certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations and liquidations) for each class of the Fund do not exceed 1.70% based on the average net assets of each class until September 30, 2025. Total expenses waived or paid are not subject to recapture subsequent to the Fund's fiscal year end.

Transfer agent fees on Class R6 shares of the Fund have been capped so that transfer agent fees for that class do not exceed 0.03% based on the average net assets of the class until September 30, 2025.

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 year ended May 31, 2025, the custodian fees were reduced as noted in the Consolidated Statement of Operations. Effective January 1, 2025, earned credits on custodian fees, if any, are recognized as income.

5. Income Taxes

The tax character of distributions paid during the years ended May 31, 2025 and 2024, was as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024**  |
| Distributions paid from:<br>|  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ordinary income  | $59085769 | $4502633  |
| &nbsp;&nbsp;&nbsp;&nbsp; Long term capital gain |  | —  |
| Total distributions paid | $59085769 | $4502633 |

---

<br> 86 Annual Report franklintempleton.com <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

5. Income Taxes (continued)

At May 31, 2025, the cost of investments, net unrealized appreciation (depreciation), undistributed ordinary income and undistributed long term capital gain for income tax purposes were as follows:

---

| | |
|:---|:---|
| Cost of investments | $426373413  |
| Unrealized appreciation  | $26880407  |
| Unrealized depreciation  | (52060511)  |
| Net unrealized appreciation (depreciation) | $(25180104)  |
| Distributable earnings<br>|  |
| Undistributed ordinary income  | $15191506  |
| Undistributed long term capital gain  | 1271165  |
| Total distributable earnings  | $16462671 |

---

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

The Fund utilized a tax accounting practice to treat a portion of the proceeds from the capital shares redeemed as a distribution from realized capital gains.

6. Investment Transactions

Purchases and sales of investments and securities sold short (excluding short term securities) for the year ended May 31, 2025, aggregated $938,314,214 and $954,175,537, respectively.

At May 31, 2025, in connection with securities lending transactions, the Fund loaned equity investments and convertible bonds and received $2,829,000 of cash collateral. The gross amounts of recognized liability for such transactions are included in payable upon return of securities loaned in the Consolidated Statement of Assets and Liabilities. The agreements can be terminated at any time.

7. Credit Risk and Defaulted Securities

At May 31, 2025, the Fund had 26.1% of its portfolio invested in high yield, senior secured floating rate loans, or other securities rated below investment grade and unrated securities. These securities may be more sensitive to economic conditions causing greater price volatility and are potentially subject to a greater risk of loss due to default than higher rated securities.

The Fund may purchase the pre-default or defaulted debt of distressed companies. Distressed companies are financially troubled and could be or are already involved in financial restructuring or bankruptcy. Risks associated with purchasing these securities include the possibility that the bankruptcy or other restructuring process takes longer than expected, or that distributions in restructuring are less than anticipated, either or both of which may result in unfavorable consequences to the Fund. If it becomes probable that the income on debt securities, including those of distressed companies, will not be collected, the Fund discontinues accruing income and recognizes an adjustment for uncollectible interest.

At May 31, 2025, the aggregate long value of distressed company securities for which interest recognition has been discontinued was $1,222,837, representing 0.2% 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 volatility. In addition, certain foreign securities may not be as liquid as U.S. securities. Currencies of developing or emerging market countries may be subject to significantly greater risks than currencies of developed countries, including the potential inability to repatriate those currencies into U.S. dollars.

Russia's military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict could increase volatility and uncertainty in the financial markets and adversely affect regional and global economies. The United States and other countries have imposed broad-ranging economic sanctions on Russia and certain

Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia's military invasion. These sanctions, as well as any other economic consequences related to the invasion, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on governments, companies or individuals, may further decrease the value and liquidity of certain Russian securities and securities of issuers in other countries that are

<br> franklintempleton.com Annual Report 87 <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

8. Concentration of Risk (continued)

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 May 31, 2025.

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

9. 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 May 31, 2025, investments in restricted securities, excluding securities exempt from registration under the 1933 Act, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Principal** <br>**Amount** | **Issuer** | **Acquisition** <br>**Date** | **Cost** | **Value**  |
| 1093204<br>| Atlas Security Products, zero cpn., 2/08/28 | &nbsp;&nbsp; 10/01/24 | $930947 | $931088  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Restricted Securities (Value is 0.2% of Net Assets)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Restricted Securities (Value is 0.2% of Net Assets)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Restricted Securities (Value is 0.2% of Net Assets)** | $930947 | $931088 |

---

10. 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> 88 Annual Report franklintempleton.com <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

10. Unfunded Loan Commitments (continued)

At May 31, 2025, unfunded commitments were as follows:

---

| | |
|:---|:---|
| **Borrower** | **Unfunded**<br>**Commitment**  |
| CommScope Holdings Co., Inc., Initial Term Loan | $700000  |
| First Brands Group LLC, First Lien 2021 Term Loan | 990744  |
| First Brands Group LLC, First Lien Term Loan | 342931  |
| Harbor Freight Tools, Initial Term Loan | 288468  |
| H-Food Holdings LLC, Initial Term Loan | 135464  |
| Idera, Inc., Bank Debt Term Loan | 30761  |
| K. Hovnanian Enterprises Inc., Term Loan RC | 500000  |
| Liberty Latin, Bank Debt Term Loan | 134761  |
| Ligado Networks LLC, DIP New Money Loan | 5798  |
| MH Sub LLC, Bank Debt Term Loan | 55477  |
| Petco Health & Wellness Co. Inc., First Lien Term Loan | 111733  |
| Solera Holdings, Initial Term Loan | 213000  |
| Upfield Group BV, Term Loan RC | 190812  |
|  | $3699949 |

---

11. Other Derivative Information

At May 31, 2025, the investments in derivative contracts are reflected in the Consolidated Statement of Assets and Liabilities as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Derivative Contracts** <br>**Not Accounted for as** <br>**Hedging Instruments** | **Asset Derivatives** | **Asset Derivatives** | **Liability Derivatives**  | **Liability Derivatives**  |
| **Derivative Contracts** <br>**Not Accounted for as** <br>**Hedging Instruments** | **Consolidated Statement** <br>**of Assets and Liabilities** <br>**Location** | **Fair Value** | **Consolidated Statement** <br>**of Assets and Liabilities** <br>**Location** | **Fair Value**  |
| Interest rate contracts | Variation margin on futures contracts | &nbsp;&nbsp;&nbsp; $854054<sup>a</sup> | Variation margin on futures contracts | &nbsp;&nbsp;&nbsp; $677719<sup>a</sup>  |
|  | Unrealized appreciation on OTC swap contracts | &nbsp;&nbsp;&nbsp; 85892  |  |  |
|  | Variation margin on centrally cleared swap contracts | &nbsp;&nbsp;&nbsp; 335215<sup>a</sup> | Variation margin on centrally cleared swap contracts | &nbsp;&nbsp;&nbsp; 171066<sup>a</sup>  |
| Foreign exchange contracts | Variation margin on futures contracts | &nbsp;&nbsp;&nbsp; 1538994<sup>a</sup> | Variation margin on futures contracts | &nbsp;&nbsp;&nbsp; 1762351<sup>a</sup>  |
|  | Unrealized appreciation on OTC swap contracts | &nbsp;&nbsp;&nbsp; 86037  | Unrealized depreciation on OTC swap contracts | &nbsp;&nbsp;&nbsp; 148127  |
|  | Unrealized appreciation on OTC forward exchange contracts | &nbsp;&nbsp;&nbsp; 1391624  | Unrealized depreciation on OTC forward exchange contracts | &nbsp;&nbsp;&nbsp; 3198535  |
| Credit contracts | Variation margin on centrally cleared swap contracts | &nbsp;&nbsp;&nbsp; 340426<sup>a</sup> | Variation margin on centrally cleared swap contracts | &nbsp;&nbsp;&nbsp; 364787<sup>a</sup>  |
|  | OTC swap contracts (upfront payments) | &nbsp;&nbsp;&nbsp; 189481  | OTC swap contracts (upfront receipts) | &nbsp;&nbsp;&nbsp; 613876  |
|  | Unrealized appreciation on OTC swap contracts | &nbsp;&nbsp;&nbsp; 24718  | Unrealized depreciation on OTC swap contracts | &nbsp;&nbsp;&nbsp; 195272  |
| Equity contracts | Investments in securities, at value | &nbsp;&nbsp;&nbsp; 417724<sup>b</sup> | Options written, at value | &nbsp;&nbsp;&nbsp; 49519  |
|  | Variation margin on futures contracts | &nbsp;&nbsp;&nbsp; 1645091<sup>a</sup> | Variation margin on futures contracts | &nbsp;&nbsp;&nbsp; 445766<sup>a</sup>  |
|  | Unrealized appreciation on OTC swap contracts | &nbsp;&nbsp;&nbsp; 22811471  | Unrealized depreciation on OTC swap contracts | &nbsp;&nbsp;&nbsp; 17900033  |
| Commodity contracts | Variation margin on futures contracts | &nbsp;&nbsp;&nbsp; 1009246<sup>a</sup> | Variation margin on futures contracts | &nbsp;&nbsp;&nbsp; 581677<sup>a</sup>  |
| &nbsp;&nbsp;&nbsp;&nbsp; Totals | &nbsp;&nbsp;&nbsp;&nbsp; Totals | &nbsp;&nbsp;&nbsp; $30729973 |  | &nbsp;&nbsp;&nbsp; $26108728 |

---

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

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

<br> franklintempleton.com Annual Report 89 <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

11. Other Derivative Information (continued)

For the year ended May 31, 2025, the effect of derivative contracts in the Consolidated Statement of Operations was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Derivative Contracts** <br>**Not Accounted for as** <br>**Hedging Instruments** | **Consolidated Statement of Operations Location** | **Net** <br>**Realized** <br>**Gain (Loss)** <br>**for the Year** | **Consolidated Statement** <br>**of Operations Location** | **Net** <br>**Change in** <br>**Unrealized** <br>**Appreciation (Depreciation) for the Year**  |
|  | Net realized gain (loss) from: |  | Net change in unrealized appreciation (depreciation) on: |  |
| Interest rate contracts | Futures contracts | $(4218298) | Futures contracts | $371025  |
|  | Swap contracts | 822002  | Swap contracts | 506303  |
| Foreign exchange contracts | Forward exchange contracts | 331904  | Forward exchange contracts | (3166460)  |
|  | Futures contracts | 828691  | Futures contracts | (271558)  |
|  |  |  | Swap contracts | (293296)  |
| Credit contracts | Swap contracts | (944717) | Swap contracts | 624331  |
| Equity contracts | Investments | (372712)<sup>a</sup>  | Investments | (64056)<sup>a</sup>  |
|  | Written options | 68999  | Written options | 526017  |
|  | Futures contracts | 2967655  | Futures contracts | 587775  |
|  | Swap contracts | 17515569  | Swap contracts | (2283009)  |
| Commodity contracts | Futures contracts | (1626154) | Futures contracts | 1504764  |
| &nbsp;&nbsp;&nbsp;&nbsp; Totals |  | $15372939 |  | (1958164) |

---

<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 year ended May 31, 2025, the average month end notional amount of futures contracts and swap contracts represented $695,610,310 and $538,030,923, respectively. The average month end fair value of options was $477,389. The average month end contract value of forward exchange contracts was $170,327,371.

At May 31, 2025, 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** | **Derivatives** | **Derivatives** |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward Exchange Contracts | $1391624  | $3198535  |
| &nbsp;&nbsp;&nbsp;&nbsp; Options Purchased<sup>b</sup> | 5075  | —  |
| &nbsp;&nbsp;&nbsp;&nbsp; Swap Contracts | 23197599 | 18857308  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $24594298 | $22055843 |

---

<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.

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

<br> 90 Annual Report franklintempleton.com <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

11. Other Derivative Information (continued)

At May 31, 2025, OTC derivative assets, which may be offset against OTC derivative liabilities and collateral received from the counterparty, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Gross Amounts of Assets** <br>**Presented in the** <br>**Consolidated Statement** <br>**of Assets and Liabilities** | **Amounts Not Offset in the Consolidated Statement** <br>**of Assets and Liabilities** | **Amounts Not Offset in the Consolidated Statement** <br>**of Assets and Liabilities** | **Amounts Not Offset in the Consolidated Statement** <br>**of Assets and Liabilities** | **Net Amount** <br>**(Not less than zero)**  |
|  | **Gross Amounts of Assets** <br>**Presented in the** <br>**Consolidated Statement** <br>**of Assets and Liabilities** | **Financial** <br>**Instruments** <br>**Available for Offset** | **Financial** <br>**Instruments** <br>**Collateral** <br>**Received** | **Cash** <br>**Collateral** <br>**Received** | **Net Amount** <br>**(Not less than zero)**  |
| **Counterparty**<br>|  |  |  |  |  |
| BNPP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $—  | &nbsp;&nbsp;&nbsp;&nbsp; $—  | &nbsp;&nbsp;&nbsp; $—  | $—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $—  |
| BNYM | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9257  | &nbsp;&nbsp;&nbsp;&nbsp; (9257) | &nbsp;&nbsp;&nbsp; —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| BZWS | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 222607  | &nbsp;&nbsp;&nbsp;&nbsp; (222607) | &nbsp;&nbsp;&nbsp; —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| CITI | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 251223  | &nbsp;&nbsp;&nbsp;&nbsp; (168688) | &nbsp;&nbsp;&nbsp; —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 82535  |
| DBAB | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40016  | &nbsp;&nbsp;&nbsp;&nbsp; (40016) | &nbsp;&nbsp;&nbsp; —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| GSCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 129224  | &nbsp;&nbsp;&nbsp;&nbsp; (129224) | &nbsp;&nbsp;&nbsp; —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| JPHQ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7652501  | &nbsp;&nbsp;&nbsp;&nbsp; (6409641) | &nbsp;&nbsp;&nbsp; —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1242860  |
| JPHQ<sup>b</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 264121  | &nbsp;&nbsp;&nbsp;&nbsp; —  | &nbsp;&nbsp;&nbsp; —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 264121  |
| MSCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2118597  | &nbsp;&nbsp;&nbsp;&nbsp; (1594418) | &nbsp;&nbsp;&nbsp; —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 524179  |
| MSCO<sup>b</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14672  | &nbsp;&nbsp;&nbsp;&nbsp; —  | &nbsp;&nbsp;&nbsp; —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14672  |
| MSCO<sup>c</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 820103  | &nbsp;&nbsp;&nbsp;&nbsp; (820103) | &nbsp;&nbsp;&nbsp; —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| MSCS | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10305647  | &nbsp;&nbsp;&nbsp;&nbsp; (7459606) | &nbsp;&nbsp;&nbsp; —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2846041  |
| NOMU | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4882  | &nbsp;&nbsp;&nbsp;&nbsp; —  | &nbsp;&nbsp;&nbsp; —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4882  |
| SEBA | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2761448 | &nbsp;&nbsp;&nbsp;&nbsp; (2149560) | &nbsp;&nbsp;&nbsp; —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 611888  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $24594298 | &nbsp;&nbsp;&nbsp;&nbsp; $(19003120) | &nbsp;&nbsp;&nbsp; $—  | $—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $5591178 |

---

At May 31, 2025, OTC derivative liabilities, which may be offset against OTC derivative assets and collateral pledged to the counterparty, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Gross Amounts of Liabilities** <br>**Presented in the** <br>**Consolidated Statement** <br>**of Assets and Liabilities** | **Amounts Not Offset in the Consolidated Statement** <br>**of Assets and Liabilities** | **Amounts Not Offset in the Consolidated Statement** <br>**of Assets and Liabilities** | **Amounts Not Offset in the Consolidated Statement** <br>**of Assets and Liabilities** | **Net Amount** <br>**(Not less than zero)**  |
|  | **Gross Amounts of Liabilities** <br>**Presented in the** <br>**Consolidated Statement** <br>**of Assets and Liabilities** | **Financial** <br>**Instruments** <br>**Available for Offset** | **Financial** <br>**Instruments** <br>**Collateral** <br>**Pledged<sup>a</sup>** | **Cash** <br>**Collateral** <br>**Pledged<sup>a</sup>** | **Net Amount** <br>**(Not less than zero)**  |
| Counterparty<br>|  |  |  |  |  |
| BNPP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $74986  | &nbsp;&nbsp;&nbsp;&nbsp; $—  | $(74986) | $—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $—  |
| BNYM | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 74935  | &nbsp;&nbsp;&nbsp;&nbsp; (9257) | (61000) | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4678  |
| BZWS | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 594169  | &nbsp;&nbsp;&nbsp;&nbsp; (222607) | (371562) | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| CITI | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 168688  | &nbsp;&nbsp;&nbsp;&nbsp; (168688) | —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| DBAB | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 608539  | &nbsp;&nbsp;&nbsp;&nbsp; (40016) | (568523) | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| GSCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 558234  | &nbsp;&nbsp;&nbsp;&nbsp; (129224) | (429010) | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| JPHQ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6409641  | &nbsp;&nbsp;&nbsp;&nbsp; (6409641) | —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| JPHQ<sup>b</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 457194  | &nbsp;&nbsp;&nbsp;&nbsp; —  | —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 457194  |
| MSCO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1594418  | &nbsp;&nbsp;&nbsp;&nbsp; (1594418) | —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| MSCO<sup>b</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 33065  | &nbsp;&nbsp;&nbsp;&nbsp; —  | —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 33065  |
| MSCO<sup>c</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1872808  | &nbsp;&nbsp;&nbsp;&nbsp; (820103) |  | (1052705)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| MSCS | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7459606  | &nbsp;&nbsp;&nbsp;&nbsp; (7459606) | —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| NOMU | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  | &nbsp;&nbsp;&nbsp;&nbsp; —  | —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| SEBA | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2149560 | &nbsp;&nbsp;&nbsp;&nbsp; (2149560) | —  | —  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; —  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $22055843 | &nbsp;&nbsp;&nbsp;&nbsp; $(19003120) | $(1505081) | $(1052705)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $494937 |

---

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

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

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

See Note 1(d) regarding derivative financial instruments.

See Abbreviations on page 94.

<br> franklintempleton.com Annual Report 91 <br>

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

12. Credit Facility

The Fund, together with other U.S. registered and foreign investment funds (collectively, Borrowers), managed by Franklin Templeton, are borrowers in a joint syndicated senior unsecured credit facility totaling $2.995 billion (Global Credit Facility) which matures on January 30, 2026. This Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests.

Under the terms of the Global Credit Facility, the Fund may, in addition to interest charged on any borrowings made by the Fund and other costs incurred by the Fund, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all of the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in other expenses in the Consolidated Statement of Operations. During the year ended May 31, 2025, the Fund did not use the Global Credit Facility.

13. Fair Value Measurements

The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund's own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund's financial instruments and are summarized in the following fair value hierarchy:

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

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

&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 – significant unobservable inputs
 (including the Fund's own assumptions in determining the fair value of financial instruments)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

A summary of inputs used as of May 31, 2025, in valuing the Fund's assets and liabilities carried at fair value, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total**  |
| **Assets:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in Securities:<sup>a</sup><br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity Investments<sup>b</sup> | $90052437  | $12468840  | $201638<sup>c</sup>  | $102722915  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible Bonds | —  | 86686565  | —  | 86686565  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible Bonds in Reorganization | —  | 10182  | 12281  | 22463  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds and Notes | —  | 19945395  | 931088  | 20876483  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds and Notes in Reorganization | —  | 639380  | —  | 639380  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior Floating Rate Interests | —  | 10234411 | 2070436  | 12304847  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign Government and Agency Securities | —  | 23386068  | —  | 23386068  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign Government and Agency Securities in Reorganization | —  | 560994  | —  | 560994  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. Government and Agency Securities | —  | 8214994  | —  | 8214994  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options Purchased | 412649 | 5075  | —  | 417724  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short Term Investments | 178946538 | 57693706  | —  | 236640244  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Investments in Securities | $269411624 | $219845610<sup>d</sup>  | $3215443  | $492472677  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other Financial Instruments:<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts | $5047385  | $—  | $—  | $5047385  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward Exchange Contracts | —  | 1391624  | —  | 1391624  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap Contracts |  | 23659463  | 24296  | 23683759  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Other Financial Instruments | $5047385 | $25051087  | $24296  | $30122768 |
| **Liabilities:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other Financial Instruments:<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Options Written | $49519  | $—  | $—  | $49519  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities Sold Short<sup>a</sup> | 66168787  | 28274854<sup>e</sup>  | —  | 94443641  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Futures Contracts | 3467513  | —  | —  | 3467513  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward Exchange Contracts | —  | 3198535  | —  | 3198535  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Swap Contracts | —  | 18766232  | 13053<sup>c</sup>  | 18779285  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unfunded Loan Commitments |  | 15763  | 31786<sup>c</sup>  | 47549  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Other Financial Instruments | $69685819 | $50255384  | $44839  | $119986042 |

---

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

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

13. Fair Value Measurements (continued)

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

<sup>d</sup> Includes foreign securities valued at $12,186,505, which were categorized as Level 2 as a result of the application of market level fair value procedures. See the Financial Instrument Valuation note for more information.

<sup>e</sup> Includes foreign securities valued at $1,748,754, which were categorized as Level 2 as a result of the application of market level fair value procedures. See the Financial Instrument Valuation note for more information.

A reconciliation in which Level 3 inputs are used in determining fair value is presented when there are significant Level 3 assets and/or liabilities at the beginning and/or end of the period.

14. Operating Segments

The Fund has adopted the FASB Accounting Standards Update (ASU) 2023-07, *Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures.* The update is limited to disclosure requirements and does not impact the Fund's financial position or results of operations.

The Fund operates as a single operating segment, which is an investment portfolio. The Fund's Investment manager serves as the Chief Operating Decision Maker (CODM), evaluating fund-wide results and performance under a unified investment strategy. The CODM uses these measures to assess fund performance and allocate resources effectively. Internal reporting provided to the CODM aligns with the accounting policies and measurement principles used in the consolidated financial statements.

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

15. New Accounting Pronouncements

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

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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

K2 Alternative Strategies Fund (continued)

**Abbreviations** 

---

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

---

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

---

| | |
|:---|:---|
| **Reference Index** | **Reference Rate**  |
| 1-Day EONIA | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.161%  |
| 1-Day FEDEF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.330  |
| 1-Day SABOR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.242  |
| 1-Day SARON | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.207  |
| 1-Day SONIA | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.211  |
| 1-Month EURIBOR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.996  |
| 1-Month HIBOR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.588  |
| 1-Month SOFR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.312  |
| 1-Week CIBOR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.920  |
| 1-Week NIBOR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.510  |
| 1-Week STIBOR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.262  |
| 3-Month JIBAR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.325  |
| 3-Month SOFR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.324  |
| 6-Month BUBOR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.490  |
| Banxico Mexico 1 Month Rate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.500  |
| BRLCDI | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14.650  |
| COIR | &nbsp;&nbsp;&nbsp;&nbsp;8.736  |
| Euro STR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.161  |
| KLIBOR  | &nbsp;&nbsp;&nbsp;&nbsp;3.500 |
| SOFR | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.350  |
| TLREF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48.994 |

---

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

**Report of Independent Registered Public Accounting Firm** 

To the Shareholders and Board of Trustees of Franklin Alternative Strategies Funds:

**Opinion on the Financial Statements** 

We have audited the accompanying consolidated statement of assets and liabilities of Franklin Alternative Strategies Funds (the "Trust") (comprising K2 Alternative Strategies Fund (the "Fund")), including the consolidated schedule of investments, as of May 31, 2025, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund comprising Franklin Alternative Strategies Funds at May 31, 2025, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion** 

These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 2025, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](k2ernetyoungsign.jpg)

We have served as the auditor of one or more Franklin investment companies since 1987.

Boston, Massachusetts

July 24, 2025

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K2 ALTERNATIVE STRATEGIES FUND

**Tax Information (unaudited)** 

By mid-February, tax information related to a shareholder's proportionate share of distributions paid during the preceding calendar year will be received, if applicable. Please also refer to www.franklintempleton.com for per share tax information related to any distributions paid during the preceding calendar year. Shareholders are advised to consult with their tax advisors for further information on the treatment of these amounts on their tax returns.

The following tax information for the Fund is required to be furnished to shareholders with respect to income earned and distributions paid during its fiscal year.

The Fund hereby reports the following amounts, or if subsequently determined to be different, the maximum allowable amounts, for the fiscal year ended May 31, 2025:

---

| | | |
|:---|:---|:---|
|  | **Pursuant to:** | **Amount Reported**  |
| Dividends Received Deduction (DRD) | §854(b)(1)(A) | &nbsp;&nbsp;&nbsp;&nbsp; $757557  |
| Qualified Dividend Income (QDI) | §854(b)(1)(B) | &nbsp;&nbsp;&nbsp;&nbsp; 1071760  |
| Short-Term Capital Gain Dividends | §871(k)(2)(C) | &nbsp;&nbsp;&nbsp;&nbsp; 26083106  |
| Long-Term Capital Gain Dividends | §852(b)(3)(C) | &nbsp;&nbsp;&nbsp;&nbsp; 8825062 |

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

Not applicable.

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

Not applicable.

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

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

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

**and Sub-Advisory Agreements** 

**FRANKLIN ALTERNATIVE STRATEGIES FUNDS** 

**K2 Alternative Strategies Fund** 

(Fund)

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

ActusRayPartners Limited

Apollo Credit Management, LLC

Bardin Hill Arbitrage IC Management L.P.

Capital Fund Management S.A.

Electron Capital Partners, LLC

Graham Capital Management, L.P.

Jennison Associates LLC

Lazard Asset Management LLC

RBC Global Asset Management (UK) Limited /

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RBC Global Asset Management (U.S.) Inc.

Franklin Advisers, Inc. (FAV)

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

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

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

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

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

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

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

In addition, the trustees received a Profitability Study (Profitability Study) prepared by management discussing the

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

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

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

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

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

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

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

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

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

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

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

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

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

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

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

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

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

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

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

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

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

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

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

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

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

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

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

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

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

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

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

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

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

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

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

**CONCLUSION** 

Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the continuation of the Fund's investment management agreement and each sub-advisory agreement for an additional one-year period.

<br> franklintempleton.com Annual Report 101 <br>

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![](ftlogopos0119.jpg)<br>

<br>© 2025 Franklin Templeton Investments. All rights reserved. 18120-AFSOI 07/25 <br>

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

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

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

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

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

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

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

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

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

Not applicable.

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

Not applicable.

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

Not applicable.

---

| | |
|:---|:---|
| ITEM 15. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |

---

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

ITEM 16. CONTROLS AND PROCEDURES.

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

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

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

Not applicable.

ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.

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

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

ITEM 19. EXHIBITS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(a) (1) Code of Ethics attached hereto.](kasf-efp16577_code.htm)

Exhibit 99.CODE ETH

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(a) (3) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.](kasf-efp16577_ex99cert.htm)

Exhibit 99.CERT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.](kasf-efp16577_ex99906cert.htm)

Exhibit 99.906CERT

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.

**Franklin Alternative Strategies Funds**

---

| | |
|:---|:---|
| By: | /s/ Christopher Kings |
|  | Christopher Kings |
|  | Chief Executive Officer – Finance and Administration |
| Date: | July 29, 2025 |

---

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| By: | /s/ Christopher Kings |
|  | Christopher Kings |
|  | Chief Executive Officer – Finance and Administration |
| Date: | July 29, 2025 |
| By: | /s/ Jeffrey White |
|  | Jeffrey White |
|  | Chief Financial Officer, Chief Accounting Officer and Treasurer |
| Date: | July 29, 2025 |

---

## Ex-99.Code

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

---

| | |
|:---|:---|
| **Procedures** | &nbsp;&nbsp;&nbsp;Revised [September 27, 2024] |

---

**FRANKLIN TEMPLETON AFFILIATED FUNDS**

**CODE OF ETHICS FOR PRINCIPAL EXECUTIVES AND**

**SENIOR FINANCIAL OFFICERS**

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

&nbsp;&nbsp;&nbsp;&nbsp;&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;&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").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 superseded 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 a position 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;&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;&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 of the FT Funds;

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

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

<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 Covered Person should also obtain written approval by FT's General Counsel in such situations.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. Disclosure
 and Compliance

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

&nbsp;&nbsp;&nbsp;&nbsp;&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;&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;&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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. Reporting
 and Accountability

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;&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 A);

&nbsp;&nbsp;&nbsp;&nbsp;&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;&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.

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

&nbsp;&nbsp;&nbsp;&nbsp;&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>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII. Amendments

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

<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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;&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;&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**

**ACKNOWLEDGMENT FORM**

**Franklin Templeton Funds Code of Ethics**

**For Principal Executives and Senior Financial Officers**

**Instructions:**

&nbsp;&nbsp;&nbsp;&nbsp;1. Complete
 all sections of this form.

&nbsp;&nbsp;&nbsp;&nbsp;2. Print
 the completed form, sign, and date.

&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);<br> lpreclear@franklintempleton.com (external address) |

---

---

| |
|:---|
| **Covered Officer's Name:** |
| **Title:** |
| **Department:** |
| **Location:** |
| **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

CERTIFICATIONS PURSUANT TO SECTION 302

EX-99.CERT

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

I, Christopher Kings, certify that:

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

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

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting
that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and

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

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

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

---

| |
|:---|
| Date: July 29, 2025 |
| /s/ Christopher Kings |
| Christopher Kings |
| Executive Officer – Finance and Administration |

---

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

I, Jeffrey White, certify that:

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

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

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period
covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control
over financial reporting; and

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

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

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

---

| |
|:---|
| Date: July 29, 2025 |
| /s/ Jeffrey White |
| Jeffrey White |
| Chief Financial Officer, Chief Accounting Officer and Treasurer |

---

## Exhibit 99.906

CERTIFICATIONS PURSUANT TO SECTION 906

EX-99.906CERT

**CERTIFICATION**

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

&nbsp;&nbsp;&nbsp;&nbsp;1. The Registrant's periodic report on Form N-CSR for the period ended **May 31, 2025** (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

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

---

| | |
|:---|:---|
| **Chief Executive Officer –** | **Chief Financial Officer, Chief** |
| **Finance and Administration** | **Accounting Officer and Treasurer** |
| Franklin Alternative Strategies Funds | Franklin Alternative Strategies Funds |
| /s/ Christopher Kings | /s/ Jeffrey White |
| Christopher Kings | Jeffrey White |
| Date: July 29, 2025 | Date: July 29, 2025 |

---

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