N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number           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

One Franklin Parkway

San Mateo, CA 94403-1096    

(Name and address of agent for service)

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

Date of fiscal year end:  May 31

Date of reporting period:  November 30, 2022

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

SEMIANNUAL REPORT AND SHAREHOLDER LETTER

FRANKLIN K2 ALTERNATIVE STRATEGIES FUND

A Series of Franklin Alternative Strategies Funds

November 30, 2022

Sign up for electronic delivery at franklintempleton.com/edelivery

SHAREHOLDER LETTER

Dear Fellow Shareholder:

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

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

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

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

1. Source: Morningstar.

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

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

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

Sincerely,

Brooks Ritchey

President and Chief Executive Officer –

Investment Management

Franklin Alternative Strategies Funds

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

Not FDIC Insured | May Lose Value | No Bank Guarantee

franklintempleton.com Semiannual Report 1

Contents
Semiannual Report
Franklin K2 Alternative Strategies Fund	3
Performance Summary	7
Your Fund’s Expenses	9
Consolidated Financial Highlights and Consolidated Schedule of Investments	10
Consolidated Financial Statements	111
Notes to Consolidated Financial Statements	115
Shareholder Information	134

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

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SEMIANNUAL REPORT

Franklin K2 Alternative Strategies Fund

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

Your Fund’s Goal and Main Investments

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

Performance Overview

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

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

Economic and Market Overview

Global developed and emerging market equities, as measured by the MSCI All Country World Index-NR (USD, net of tax withholding when dividends are paid), posted a -2.51% total return for the six months ended November 30, 2022.¹ Volatile prices for energy and food commodities contributed to higher inflation in many countries even as global trade cooled in the third quarter of 2022. This inflationary pressure led many of the world’s central banks to adopt tighter stances regarding monetary policy. Continued COVID-19 lockdowns imposed by China’s government prompted protests and pressured Asian and global emerging market stocks. Geopolitical instability disrupted financial markets amid the ongoing war in Ukraine and international sanctions on Russia, adding to investor uncertainty about the trajectory of the global economy.

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

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

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

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

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

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

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

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

Investment Strategy

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

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

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

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

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

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

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FRANKLIN K2 ALTERNATIVE STRATEGIES FUND

Subadvisors

11/30/22

Long Short Equity

ActusRayPartners Limited

Chilton Investment Company, Inc.

Electron Capital Partners, LLC

Jennison Associates, LLC

Portland Hill Asset Management Limited

Wellington Management Company, LLP

Relative Value    

Apollo Credit Management LLC

Benefit Street Partners, L.L.C.

Ellington Global Asset Management, LLC

Lazard Asset Management, LLC

Loomis Sayles & Company, L.P.

One River Asset Management, LLC

Event Driven    

Bardin Hill Arbitrage IC Management LP

P. Schoenfeld Asset Management L.P.

Global Macro    

BlueBay Asset Management LLP

Emso Asset Management Limited

Graham Capital Management, L.P.

RV Capital Management Private Ltd

Manager’s Discussion

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

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

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

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

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

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

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

CFA^® is a trademark owned by CFA Institute.

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FRANKLIN K2 ALTERNATIVE STRATEGIES FUND

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

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

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

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

Brooks Ritchey

Co-Lead Portfolio Manager

Robert Christian

Co-Lead Portfolio Manager

Anthony Zanolla, CFA

Portfolio Manager

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

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FRANKLIN K2 ALTERNATIVE STRATEGIES FUND

Performance Summary as of November 30, 2022

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

Performance as of 11/30/22¹

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

Share Class	Cumulative Total Return2		Average Annual Total Return3
A4
6-Month		-1.43%		-6.86%
1-Year		-7.89%		-12.97%
5-Year		+6.42%		+0.12%
Since Inception (10/11/13)		+24.94%		+1.84%
Advisor
6-Month		-1.33%		-1.33%
1-Year		-7.67%		-7.67%
5-Year		+7.68%		+1.49%
Since Inception (10/11/13)		+27.84%		+2.72%

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

See page 8 for Performance Summary footnotes.

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FRANKLIN K2 ALTERNATIVE STRATEGIES FUND

Total Annual Operating Expenses⁵

Share Class	With Fee Waiver		Without Fee Waiver
A		2.61%		2.76%
Advisor		2.36%		2.51%

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

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

Russia’s military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict could increase volatility and uncertainty in the financial markets and adversely affect regional and global economies. The United States and other countries have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia’s military invasion. These sanctions, as well as any other economic consequences related to the invasion, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on governments, companies or individuals, may further decrease the value and liquidity of certain Russian securities and securities of issuers in other countries that are subject to economic sanctions related to the invasion. To the extent that the Fund has exposure to Russian investments or investments in countries affected by the invasion, the Fund’s ability to price, buy, sell, receive or deliver such investments may be impaired. The Fund could determine at any time that certain of the most affected securities have zero value. In addition, any exposure that the Fund may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Fund’s portfolio. The extent and duration of Russia’s military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact the Fund’s performance and the value of an investment in the Fund, even beyond any direct exposure the Fund may have to Russian issuers or issuers in other countries affected by the invasion.

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

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

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

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

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

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

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FRANKLIN K2 ALTERNATIVE STRATEGIES FUND

Your Fund’s Expenses

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

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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

			Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)
Share Class	Beginning Account Value 6/01/22		Ending Account Value 11/30/22		Expenses Paid During Period 6/01/22–11/30/221,2		Ending Account Value 11/30/22		Expenses Paid During Period 6/01/22–11/30/221,2		Net Annualized Expense Ratio2
A	$	1,000	$	985.70	$	12.99	$	1,011.98	$	13.16		2.61	%
C	$	1,000	$	982.40	$	16.70	$	1,008.22	$	16.92		3.36	%
R	$	1,000	$	984.70	$	14.23	$	1,010.73	$	14.42		2.86	%
R6	$	1,000	$	987.60	$	11.61	$	1,013.39	$	11.76		2.33	%
Advisor	$	1,000	$	986.70	$	11.75	$	1,013.24	$	11.91		2.36	%

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

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

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Consolidated Financial Highlights

Franklin K2 Alternative Strategies Fund

	Six Months Ended November 30, 2022 (unaudited)			Year Ended May 31,
				2022			2021			2020			2019			2018
Class A
Per share operating performance (for a share outstanding throughout the period)
Net asset value, beginning of period		$11.16			$12.46			$11.19			$11.28			$11.38			$11.14
Income from investment operationsa:
Net investment income (loss)b		0.03			(0.06	)		(0.08	)		(0.03	)		0.04			0.01
Net realized and unrealized gains (losses)		(0.19	)		(0.68	)		1.45			0.02			0.11			0.38
Total from investment operations		(0.16	)		(0.74	)		1.37			(0.01	)		0.15			0.39
Less distributions from:
Net investment income		—			(0.06	)		—			(0.07	)		—			(0.15	)
Net realized gains		—			(0.50	)		(0.10	)		(0.01	)		(0.25	)		—
Total distributions		—			(0.56	)		(0.10	)		(0.08	)		(0.25	)		(0.15	)
Net asset value, end of period	$	11.00		$	11.16		$	12.46		$	11.19		$	11.28		$	11.38
Total returnc		(1.43)%			(6.25)%			12.25%			(0.15)%			1.35%			3.57%
Ratios to average net assetsd
Expenses before waiver, payments by affiliates and expense reductione		2.77%			2.75%			2.82%			2.58%			2.73%			2.81%
Expenses net of waiver, payments by affiliates and expense reductione		2.61%	f		2.60%	f		2.64%			2.40%			2.56%			2.59%
Expenses incurred in connection with securities sold short		0.41%			0.40%			0.44%			0.20%			0.36%			0.39%
Net investment income (loss)		0.61%			(0.49)%			(0.67)%			(0.25)%			0.36%			0.06%
Supplemental data
Net assets, end of period (000’s)		$87,352			$94,580			$102,138			$90,205			$104,452			$119,214
Portfolio turnover rate		95.08%			177.61%			236.64%			271.51%			235.47%			234.77%

^aThe 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.

^bBased on average daily shares outstanding.

^cTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.

^dRatios are annualized for periods less than one year.

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

^fBenefit of expense reduction rounds to less than 0.01%.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

Franklin K2 Alternative Strategies Fund (continued)

	Six Months Ended November 30, 2022 (unaudited)			Year Ended May 31,
				2022			2021			2020			2019			2018
Class C
Per share operating performance (for a share outstanding throughout the period)
Net asset value, beginning of period	$	10.80		$	12.11		$	10.95		$	11.05		$	11.25		$	11.00
Income from investment operationsa:
Net investment (loss)b		(0.01	)		(0.15	)		(0.15	)		(0.11	)		(0.05	)		(0.08	)
Net realized and unrealized gains (losses)		(0.19	)		(0.66	)		1.41			0.02			0.10			0.39
Total from investment operations		(0.20	)		(0.81	)		1.26			(0.09	)		0.05			0.31
Less distributions from:
Net investment (loss)		—			—			—			—			—			(0.06	)
Net realized gains		—			(0.50	)		(0.10	)		(0.01	)		(0.25	)		—
Total distributions		—			(0.50	)		(0.10	)		(0.01	)		(0.25	)		(0.06	)
Net asset value, end of period	$	10.60		$	10.80		$	12.11		$	10.95		$	11.05		$	11.25
Total returnc		(1.76)%			(7.06)%			11.51%			(0.85)%			0.56%			2.82%
Ratios to average net assetsd
Expenses before waiver, payments by affiliates and expense reductione		3.52%			3.50%			3.54%			3.33%			3.48%			3.56%
Expenses net of waiver, payments by affiliates and expense reductione		3.36%	f		3.35%	f		3.36%			3.15%			3.31%			3.34%
Expenses incurred in connection with securities sold short		0.41%			0.40%			0.44%			0.20%			0.36%			0.39%
Net investment income (loss)		(0.14)%			(1.24)%			(1.39)%			(1.00)%			(0.39)%			(0.69)%
Supplemental data
Net assets, end of period (000’s)		$20,518			$24,486			$31,541			$36,043			$44,897			$53,196
Portfolio turnover rate		95.08%			177.61%			236.64%			271.51%			235.47%			234.77%

^aThe 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.

^bBased on average daily shares outstanding.

^cTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.

^dRatios are annualized for periods less than one year.

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

^fBenefit of expense reduction rounds to less than 0.01%.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

Franklin K2 Alternative Strategies Fund (continued)

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

^aThe 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.

^bBased on average daily shares outstanding.

^cTotal return is not annualized for periods less than one year.

^dRatios are annualized for periods less than one year.

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

^fBenefit of expense reduction rounds to less than 0.01%.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

Franklin K2 Alternative Strategies Fund (continued)

	Six Months Ended November 30, 2022 (unaudited)			Year Ended May 31,
				2022			2021			2020			2019			2018
Class R6
Per share operating performance (for a share outstanding throughout the period)
Net asset value, beginning of period	$	11.27		$	12.58		$	11.25		$	11.34		$	11.41		$	11.17
Income from investment operationsa:
Net investment incomeb		0.05			(0.02	)		(0.04	)		0.01			0.08			0.03
Net realized and unrealized gains (losses)		(0.20	)		(0.69	)		1.47			0.02			0.10			0.40
Total from investment operations		(0.15	)		(0.71	)		1.43			0.03			0.18			0.43
Less distributions from:
Net investment income		—			(0.10	)		—			(0.11	)		—			(0.19	)
Net realized gains		—			(0.50	)		(0.10	)		(0.01	)		(0.25	)		—
Total distributions		—			(0.60	)		(0.10	)		(0.12	)		(0.25	)		(0.19	)
Net asset value, end of period	$	11.12		$	11.27		$	12.58		$	11.25		$	11.34		$	11.41
Total returnc		(1.24)%			(6.05)%			12.61%			0.27%			1.70%			3.83%
Ratios to average net assetsd
Expenses before waiver, payments by affiliates and expense reductione		2.48%			2.44%			2.50%			2.26%			2.41%			2.46%
Expenses net of waiver, payments by affiliates and expense reductione		2.33%	f		2.32%	f		2.32%			2.07%			2.23%			2.24%
Expenses incurred in connection with securities sold short		0.41%			0.40%			0.44%			0.20%			0.36%			0.39%
Net investment income (loss)		0.94%			(0.18)%			(0.35)%			0.08%			0.69%			0.41%
Supplemental data
Net assets, end of period (000’s)		$51,283			$47,851			$27,471			$15,537			$42,842			$31,805
Portfolio turnover rate		95.08%			177.61%			236.64%			271.51%			235.47%			234.77%

^aThe 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.

^bBased on average daily shares outstanding.

^cTotal return is not annualized for periods less than one year.

^dRatios are annualized for periods less than one year.

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

^fBenefit of expense reduction rounds to less than 0.01%.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

Franklin K2 Alternative Strategies Fund (continued)

	Six Months Ended November 30, 2022 (unaudited)			Year Ended May 31,
				2022			2021			2020			2019			2018
Advisor Class
Per share operating performance (for a share outstanding throughout the period)
Net asset value, beginning of period	$	11.24		$	12.55		$	11.23		$	11.33		$	11.40		$	11.16
Income from investment operationsa:
Net investment incomeb		0.05			(0.03	)		(0.05	)		—	c		0.07			0.04
Net realized and unrealized gains (losses)		(0.19	)		(0.69	)		1.47			0.01			0.11			0.38
Total from investment operations		(0.14	)		(0.72	)		1.42			0.01			0.18			0.42
Less distributions from:
Net investment income		—			(0.09	)		—			(0.10	)		—			(0.18	)
Net realized gains		—			(0.50	)		(0.10	)		(0.01	)		(0.25	)		—
Total distributions		—			(0.59	)		(0.10	)		(0.11	)		(0.25	)		(0.18	)
Net asset value, end of period	$	11.10		$	11.24		$	12.55		$	11.23		$	11.33		$	11.40
Total returnd		(1.33)%			(6.05)%			12.55%			0.19%			1.61%			3.75%
Ratios to average net assetse
Expenses before waiver, payments by affiliates and expense reductionf		2.52%			2.50%			2.57%			2.33%			2.48%			2.56%
Expenses net of waiver, payments by affiliates and expense reductionf		2.36%	g		2.35%	g		2.39%			2.15%			2.31%			2.34%
Expenses incurred in connection with securities sold short		0.41%			0.40%			0.44%			0.20%			0.36%			0.39%
Net investment income (loss)		0.86%			(0.24)%			(0.42)%			—	h		0.61%			0.31%
Supplemental data
Net assets, end of period (000’s)		$857,028			$1,099,387			$1,152,105			$977,094			$1,046,252			$896,278
Portfolio turnover rate		95.08%			177.61%			236.64%			271.51%			235.47%			234.77%

^aThe 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.

^bBased on average daily shares outstanding.

^cAmount rounds to less than $0.01.

^dTotal return is not annualized for periods less than one year.

^eRatios are annualized for periods less than one year.

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

^gBenefit of expense reduction rounds to less than 0.01%.

^hAmount rounds to less than 0.01%.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

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

Franklin K2 Alternative Strategies Fund

		Country		Shares/ Warrants/ Rights		Value
	Common Stocks and Other Equity Interests 37.2%
	Aerospace & Defense 0.0%†
a	Aerojet Rocketdyne Holdings Inc.		United States		3,233	$	168,116
	Lockheed Martin Corp.		United States		42		20,378
a	Satellogic Inc., 1/25/27, wts.		United States		2,058		613
							189,107
	Air Freight & Logistics 0.4%
a,b	Atlas Air Worldwide Holdings Inc.		United States		37,682		3,797,215
	United Parcel Service Inc., B		United States		76		14,420
							3,811,635
	Auto Components 0.1%
a,c	Luminar Technologies Inc.		United States		12,104		92,717
a	Mobileye Global Inc., A		Israel		35,152		1,002,183
							1,094,900
	Automobiles 0.0%†
a,c	Lucid Group Inc.		United States		1,930		19,570
	Banks 0.1%
b	First Citizens Bancshares Inc., A		United States		606		494,775
b	First Horizon Corp.		United States		13,552		336,767
							831,542
	Beverages 0.4%
d	The Coca-Cola Co.		United States		190		12,086
	Davide Campari-Milano NV		Italy		188,850		1,990,348
a,b	Monster Beverage Corp.		United States		12,950		1,332,037
b	PepsiCo Inc.		United States		5,439		1,008,989
							4,343,460
	Biotechnology 1.3%
	AbbVie Inc.		United States		4,980		802,676
a	Altimmune Inc.		United States		3,282		32,656
a,b	Apellis Pharmaceuticals Inc.		United States		10,543		526,412
a	Arcutis Biotherapeutics Inc.		United States		5,238		90,251
a	Argenx SE, ADR		Netherlands		1,732		689,284
a	Aveo Pharmaceuticals Inc.		United States		103,572		1,548,401
a	Biohaven Ltd.		United States		17,900		283,178
a,b	BioMarin Pharmaceutical Inc.		United States		5,347		539,940
a,c	Celldex Therapeutics Inc.		United States		5,168		191,681
a	Horizon Therapeutics PLC		United States		14,447		1,448,890
a	Immunogen Inc.		United States		26,932		139,777
a	Intercept Pharmaceuticals Inc.		United States		41,037		611,862
a,c	Karyopharm Therapeutics Inc.		United States		1,000		5,290
a,c	Madrigal Pharmaceuticals Inc.		United States		792		55,527
a	Myovant Sciences Ltd.		United States		142,259		3,821,077
a	Neurocrine Biosciences Inc.		United States		1,792		227,691
a	Seagen Inc.		United States		1,884		228,699
a,c	Seres Therapeutics Inc.		United States		4,646		30,199
a	Syndax Pharmaceuticals Inc.		United States		6,980		167,241
a	Vaxcyte Inc.		United States		7,655		352,589
a	Vertex Pharmaceuticals Inc.		United States		2,980		942,872
							12,736,193
	Capital Markets 0.6%
e	Amundi SA, 144A		France		26,558		1,494,425
	BlackRock Inc., A		United States		21		15,036

franklintempleton.com Semiannual Report 15

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares/ Warrants/ Rights		Value
	Common Stocks and Other Equity Interests (continued)
	Capital Markets (continued)
	The Blackstone Group Inc., A		United States		5,368	$	491,333
	Cowen Inc., A		United States		65,590		2,535,709
b	Moody’s Corp.		United States		4,812		1,435,275
	Morgan Stanley		United States		123		11,448
							5,983,226
	Chemicals 0.6%
a,c	Amyris Inc.		United States		13,900		24,047
a	Danimer Scientific Inc.		United States		1,700		4,522
	The Sherwin-Williams Co.		United States		24,064		5,996,267
a	Tronox Holdings PLC, A		United States		24,406		344,857
							6,369,693
	Commercial Services & Supplies 1.2%
e	Biffa PLC, 144A		United Kingdom		177,644		873,551
b	Cintas Corp.		United States		6,225		2,874,580
a,b	Digital Transformation Opportunities Corp., A		United States		39,182		389,469
a	Digital Transformation Opportunities Corp., A, 3/31/28, wts.		United States		9,795		882
	Homeserve PLC		United Kingdom		225,582		3,230,112
a	Mason Industrial Technology Inc., A		United States		15,593		155,306
b	Republic Services Inc., A		United States		30,305		4,221,183
a	Shapeways Holdings Inc., 10/31/26, wts.		United States		13,286		399
							11,745,482
	Communications Equipment 0.1%
a	Arista Networks Inc.		United States		5,590		778,687
	Cisco Systems Inc.		United States		139		6,911
a	Riverbed Technology Inc.		United States		5,404		1,378
							786,976
	Construction & Engineering 1.4%
b	AECOM		United States		29,117		2,474,945
a,b	Mastec Inc.		United States		69,171		6,282,802
	MDU Resources Group Inc.		United States		5,224		164,504
	Quanta Services Inc.		United States		32,706		4,901,975
							13,824,226
	Construction Materials 0.0%†
a	Cemex SAB de CV, ADR		Mexico		27,529		125,808
	Containers & Packaging 0.5%
	Ball Corp.		United States		89,473		5,017,646
	Packaging Corp. of America		United States		45		6,115
							5,023,761
	Distributors 0.2%
	Pool Corp.		United States		6,485		2,136,224
	Diversified Financial Services 2.6%
a	7GC & Co. Holdings Inc., A, 12/31/26, wts.		United States		3,244		65
a	Accelerate Acquisition Corp., A		United States		8,174		82,312
a	Aequi Acquisition Corp., A		United States		13,355		131,814
a	Aequi Acquisition Corp., A, 11/30/27, wts.		United States		490		27
a	African Gold Acquisition Corp., A, 3/13/28, wts.		United States		4,750		95
a	Agile Growth Corp., A, 12/31/27, wts.		United States		1,303		17
a	Ahren Acquisition Corp., A		Cayman Islands		51,027		519,965
a	Altimeter Growth Corp. 2, A		United States		6,603		66,162

16 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares/ Warrants/ Rights		Value
	Common Stocks and Other Equity Interests (continued)
	Diversified Financial Services (continued)
a	Angel Pond Holdings Corp., A		United States		7,260	$	69,551
a	Anthemis Digital Acquisitions I Corp.		United States		17,623		180,195
a	Anzu Special Acquisition Corp. I, A		United States		1,839		18,372
a	Apollo Strategic Growth Capital II, A		United States		8,845		88,541
a	Apollo Strategic Growth Capital II, A, 12/31/27, wts.		United States		5,294		318
a	APx Acquisition Corp. I		Mexico		13,835		141,670
a	Ares Acquisition Corp., A		United States		5,799		58,106
a	Ares Acquisition Corp., A, 12/31/27, wts.		United States		11,095		833
a	Ascendant Digital Acquisition Corp. III, A		United States		4,732		48,503
a	Athena Consumer Acquisition Corp., A		United States		26,388		270,477
a	Athena Consumer Acquisition Corp., A, 7/31/28, wts.		United States		13,194		1,597
a,b	Athena Technology Acquisition Corp. II, A		United States		61,944		621,298
a	Athena Technology Acquisition Corp. II, A, 10/17/28, wts.		United States		19,317		386
a,b	Atlantic Coastal Acquisition Corp., A		United States		16,329		162,800
a	Atlantic Coastal Acquisition Corp., A, 12/31/27, wts.		United States		5,443		381
a,b	Atlas Crest Investment Corp. II, A		United States		18,050		182,125
a	Atlas Crest Investment Corp. II, A, 2/28/26, wts.		United States		3,584		1
a	Austerlitz Acquisition Corp. I, A, 2/19/26, wts.		United States		3,545		10
a	Austerlitz Acquisition Corp. II, A, 12/31/27, wts.		United States		30,317		30
a	B Riley Principal 250 Merger Corp., A, 12/31/27, wts.		United States		2,651		78
a	Berkshire Hathaway Inc., B		United States		4,276		1,362,334
a	Blue Whale Acquisition Corp. I, A, 7/09/23, wts.		United Arab Emirates		1,005		171
a,b	Broadscale Acquisition Corp., A		United States		12,221		122,821
a	Capitalworks Emerging Markets Acquisition Corp., A		United States		15,474		158,763
a	Capitalworks Emerging Markets Acquisition Corp., A, 4/27/28, wts.		United States		7,737		290
a,b	Carney Technology Acquisition Corp. II, A		United States		12,636		126,992
a	Carney Technology Acquisition Corp. II, A, 11/30/27, wts.		United States		5,876		238
a	CC Neuberger Principal Holdings III		United States		4,164		41,887
a	CC Neuberger Principal Holdings III, 12/31/27, wts.		United States		6,916		692
a,b	Churchill Capital Corp. V, A		United States		6,430		64,493
a	Churchill Capital Corp. VI, A		United States		2,693		26,850
a	Churchill Capital Corp. VII, A		United States		26,516		264,894
a,b	CIIG Capital Partners II Inc., A		United States		10,448		105,211
a	Clarim Acquisition Corp., A		United States		50,724		510,284
a	Clarim Acquisition Corp., A, 12/31/27, wts.		United States		13,108		19
a,b	Class Acceleration Corp., A		United States		13,473		135,000
a	Climate Real Impact Solutions II Acquisition Corp., A		United States		563		5,653
a	Climate Real Impact Solutions II Acquisition Corp., A, 12/31/27, wts.		United States		112		1
a	Colicity Inc., A		United States		37,960		381,498
a	Colicity Inc., A, 12/31/27, wts.		United States		4,313		4
a	Colonnade Acquisition Corp. II, 12/31/27, wts.		United States		13,654		819
a,b	Concord Acquisition Corp. II, A		United States		79,080		778,938
a	Concord Acquisition Corp. III, A		United States		9,774		99,157
a,b	Conyers Park III Acquisition Corp., A		United States		8,071		79,499
a	Corner Growth Acquisition Corp., A		United States		22,818		229,549
a	Corner Growth Acquisition Corp., A, 3/01/23, wts.		United States		5,737		61
a	Corner Growth Acquisition Corp., A, 12/31/27, wts.		United States		7,606		229
a	Crixus Bh3 Acquisition Co., A		United States		30,353		305,503
a	Crown PropTech Acquisitions, 12/31/27, wts.		United States		12,844		128
a	Crypto 1 Acquisition Corp., A		United States		7,736		78,404
a	Crystal Peak Acquisition, A		Netherlands		6,767		66,655
a	Crystal Peak Acquisition, A, 6/22/26, wts.		Netherlands		2,725		1,363
a	Deep Lake Capital Acquisition Corp.		United States		2,067		20,794

franklintempleton.com Semiannual Report 17

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares/ Warrants/ Rights		Value
	Common Stocks and Other Equity Interests (continued)
	Diversified Financial Services (continued)
a	DHC Acquisition Corp., A, 12/31/27, wts.		United States		241	$	2
a,b	dMY Technology Group Inc. VI		United States		26,930		267,954
a	Dragoneer Growth Opportunities Corp. III, A		United States		57,467		566,050
a,c	Elliott Opportunity II Corp., A		United States		56,350		562,373
a	Elliott Opportunity II Corp., A, 2/19/23, wts.		United States		9,039		1,243
a	Energy Transition Partners BV		Netherlands		3,372		34,124
a	Energy Transition Partners BV, 7/16/26, wts.		Netherlands		1,124		568
a	Enterprise 4.0 Technology Acquisition Corp.		United States		16,406		167,833
a	Enterprise 4.0 Technology Acquisition Corp., 9/24/23, wts.		United States		8,203		164
a	ESM Acquisition Corp., A		United States		8,367		83,921
a,b	Fast Acquisition Corp. II, A, 3/16/26, wts.		United States		3,606		2,421
a	Fifth Wall Acquisition Corp. III, A		United States		5,283		52,830
a	Figure Acquisition Corp. I, A, 12/31/27, wts.		United States		1,176		24
a,b	Fintech Acquisition Corp. VI, A		United States		36,924		371,455
a,b	Fintech Acquisition Corp. VI, A, 12/31/27, wts.		United States		9,902		4
a	Fintech Evolution Acquisition Group, A		United States		17,597		176,322
a	Fintech Evolution Acquisition Group, A, 3/31/28, wts.		United States		5,865		229
a	First Reserve Sustainable Growth Corp., A		United States		22,062		220,399
a	First Reserve Sustainable Growth Corp., A, 12/31/27, wts.		United States		8,090		163
a	Flame Acquisition Corp., A, 12/31/28, wts.		United States		10,165		8,132
a	Focus Impact Acquisition Corp., A		United States		13,236		133,750
a	Focus Impact Acquisition Corp., A, 4/23/23, wts.		United States		6,618		356
a	Forest Road Acquisition Corp. II, A		United States		822		8,191
a	Fortress Capital Acquisition Corp., A		United States		9,805		98,638
a	Fortress Capital Acquisition Corp., A, 12/31/27, wts.		United States		12,102		341
a	Forum Merger IV Corp., A		United States		563		5,613
a	Forum Merger IV Corp., A, 12/31/27, wts.		United States		704		16
a	FTAC Athena Acquisition Corp., A		United States		28,460		285,738
a	FTAC Hera Acquisition Corp., A		United States		35,780		358,873
a,b	FTAC Parnassus Acquisition Corp., A		United States		49,016		488,199
a	FTAC Zeus Acquisition Corp., A		United States		6,342		63,769
a,b	Fusion Acquisition Corp. II, A		United States		14,727		146,534
a,b	Fusion Acquisition Corp. II, A, 12/31/27, wts.		United States		5,297		5
a	G Squared Ascend I Inc., A		United States		10,807		108,611
a	G Squared Ascend I Inc., A, 12/31/27, wts.		United States		1,114		112
a	Glenfarne Merger Corp., A, 12/31/27, wts.		United States		323		1
a	Global Partner Acquisition Corp. II, A		United States		17,700		178,151
a	Global Partner Acquisition Corp. II, A, 12/31/27, wts.		United States		2,950		82
a,b	Gores Holdings VII Inc., A		United States		107,070		1,067,488
a	Gores Holdings VII Inc., A, 12/31/27, wts.		United States		2,103		10
a,b	Gores Holdings VIII Inc., A		United States		30,157		300,062
a,b	Gores Holdings VIII Inc., A, 12/31/27, wts.		United States		1,116		1,027
a,b	Gores Technology Partners II Inc., A		United States		25,954		259,003
a	Gores Technology Partners II Inc., A, 12/31/27, wts.		United States		232		1
a,b	Gores Technology Partners Inc., A		United States		23,123		230,319
a,b	Gores Technology Partners Inc., A, 12/31/27, wts.		United States		1,971		9
a	Group Nine Acquisition Corp., A		United States		22,173		222,617
a	Growth For Good Acquisition Corp., Contingent Value, rts., 6/14/23		United States		5,118		256
a,b	Healthcare Services Acquisition Corp., A		United States		3,074		30,832
a	Healthcare Services Acquisition Corp., A, 12/31/27, wts.		United States		4,019		121
a	Hedosophia European Growth		United Kingdom		35,835		363,802
a	Hedosophia European Growth, 5/13/27, wts.		United Kingdom		11,638		242
a	Innovative International Acquisition Corp., A		United States		13,172		135,276
a	Investcorp Europe Acquistion Corp. I, A		United States		40,934		419,164
a	Investcorp Europe Acqusition Corp. I, A, 11/23/28, wts.		United States		9,717		539

18 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares/ Warrants/ Rights		Value
	Common Stocks and Other Equity Interests (continued)
	Diversified Financial Services (continued)
a	Itiquira Acquisition Corp.		United States		361	$	3,626
a	Jackson Acquisition Co., A, 12/31/28, wts.		United States		2,966		115
a	Jaws Juggernaut Acquisition Corp., A		United States		6,381		63,714
a	Jaws Juggernaut Acquisition Corp., A, 2/12/26, wts.		United States		4,284		665
a	Jaws Mustang Acquisition Corp., A		United States		6,135		61,657
a	Jaws Mustang Acquisition Corp., A, 1/30/26, wts.		United States		6,663		666
a	Juniper II Corp., A		United States		11,402		116,072
a	Kensington Capital Acquisition Corp. V, A		United States		22,622		229,387
a	Khosla Ventures Acquisition Co., A		United States		19,523		194,450
a,b	Khosla Ventures Acquisition Co. III, A		United States		23,001		229,090
a,b	KKR Acquisition Holdings I Corp., A		United States		10,052		101,023
a	Landcadia Holdings IV Inc., A		United States		22,893		229,502
a	Landcadia Holdings IV Inc., A, 3/29/28, wts.		United States		1,171		141
a	Lazard Growth Acquisition Corp. I		United States		10,470		105,014
a	LDH Growth Corp. I, A, 12/31/28, wts.		United States		97		6
a	Lead Edge Growth Opportunities Ltd., A, 12/31/28, wts.		United States		1,175		71
a	Learn CW Investment Corp., A		United States		19,726		197,852
a	Learn CW Investment Corp., A, 12/31/28, wts.		United States		9,863		823
a	Legato Merger Corp. II		United States		3,958		39,857
a	Lerer Hippeau Acquisition Corp., A		United States		10,961		110,158
a	LF Capital Acquisition Corp. II, A		United States		13,246		134,712
a	Live Oak Crestview Climate Acquisition Corp., A, 3/12/26, wts.		United States		452		105
a	Live Oak Mobility Acquisition Corp., A		United States		1,366		13,592
a,b	Longview Acquisition Corp. II, A		United States		14,811		148,702
a	Longview Acquisition Corp. II, A, 5/10/26, wts.		United States		1,355		108
a	M3-Brigade Acquisition II Corp., A, 12/31/27, wts.		United States		7,608		845
a	Marlin Technology Corp., A		United States		9,915		99,943
a	MDH Acquisition Corp., A, 2/02/28, wts.		United States		1,198		5
a	Motive Capital Corp. II, A		United States		17,352		176,296
a	Motive Capital Corp. II, A, 5/15/28, wts.		United States		5,384		269
a	The Music Acquisition Corp., A, 2/05/28, wts.		United States		2,681		—
a	Nightdragon Acquisition Corp., A		United States		21,996		220,180
a	Nightdragon Acquisition Corp., A, 12/31/27, wts.		United States		4,399		44
a	North Atlantic Acquisition Corp., A		United States		6,495		65,340
a	Northern Star Investment Corp. II, A, 1/31/28, wts.		United States		3,083		93
a	Northern Star Investment Corp. IV, A		United States		14,136		141,077
a	Obotech Acquisition SE, A		Luxembourg		4,205		42,751
a	Obotech Acquisition SE, A, 4/30/26, wts.		Luxembourg		1,401		146
a	One Equity Partners Open Water I Corp., A		United States		2,269		22,985
a	One Equity Partners Open Water I Corp., A, 12/31/27, wts.		United States		756		—
a	Orion Biotech Opportunities Corp., A		United States		16,960		169,600
a	Orion Biotech Opportunities Corp., A, 12/31/27, wts.		United States		3,392		68
a	Pathfinder Acquisition Corp., A		United States		27,835		277,654
a	Pathfinder Acquisition Corp., A, 12/31/27, wts.		United States		5,567		1,172
a	Pegasus Acquisition Co. Europe BV, A		Netherlands		119,812		1,216,563
a	Pegasus Acquisition Co. Europe BV, A, 4/27/26, wts.		Netherlands		29,604		6,161
a,b	Periphas Capital Partnering Corp., A		United States		10,736		268,937
a,f	Pershing Square Tontine Holdings Ltd., A		United States		42,829		—
a	Pine Technology Acquisition Corp., A, 3/31/28, wts.		United States		3,876		194
a	Pioneer Merger Corp., A, 12/31/27, wts.		United States		16,710		224
a	Pontem Corp., A		United States		16,446		165,118
a	Pontem Corp., A, 12/31/27, wts.		United States		4,749		373
a,b	Post Holdings Partnering Corp., A		United States		12,717		125,009
a,c	Primavera Capital Acquisition Corp., A		Hong Kong		3,048		30,556
a	Primavera Capital Acquisition Corp., A, 1/19/26, wts.		Hong Kong		1,524		316

franklintempleton.com Semiannual Report 19

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares/ Warrants/ Rights		Value
	Common Stocks and Other Equity Interests (continued)
	Diversified Financial Services (continued)
a	RCF Acquisition Corp., A		United States		12,616	$	128,683
a	Rice Acquisition Corp. II, A, 3/12/26, wts.		United States		3,294		889
a	Rigel Resource Acquisition Corp., A		United States		8,142		83,048
a	Rigel Resource Acquisition Corp., A, 4/19/23, wts.		United States		4,071		459
a	RMG Acquisition Corp. III, A		United States		37,968		380,412
a	Rosecliff Acquisition Corp. I, A		United States		59,628		597,473
a,b	Rosecliff Acquisition Corp. I, A, 12/31/27, wts.		United States		19,875		582
a,b	RXR Acquisition Corp., A		United States		9,640		96,882
a	Science Strategic Acquisition Corp. Alpha, A		United States		5,442		54,665
a	ScION Tech Growth I, A		United Kingdom		3,306		33,258
a	SCP & Co. Healthcare Acquisition Co., A, 1/27/28, wts.		United States		1,482		2
a	Screaming Eagle Acquisition Corp., A		United States		96,744		954,863
a	Screaming Eagle Acquisition Corp., A, 12/15/27, wts.		United States		20,384		5,504
a	Sculptor Acquisition Corp. I, A		United States		14,028		142,665
a	Sculptor Acquisition Corp. I, A, 4/15/28, wts.		United States		7,014		421
a,b	Simon Property Group Acquisition Holdings Inc., A		United States		31,630		318,198
a	Slam Corp., A		United States		24,487		245,482
a	Slam Corp., A, 12/31/27, wts.		United States		7,928		755
a	Social Capital Suvretta Holdings Corp. II, A		United States		14,142		141,137
a	Social Capital Suvretta Holdings Corp. IV, A		United States		27,104		270,227
a,b	Social Leverage Acquisition Corp. I, A		United States		59,180		594,482
a	Southport Acquisition Corp., 5/24/28, wts.		United States		4,946		247
a	Spindletop Health Acquisition Corp., A		United States		11,406		116,626
a	Spindletop Health Acquisition Corp., A, 12/31/28, wts.		United States		5,703		14
a	Spree Acquisition Corp. 1 Ltd., 12/22/28, wts.		Israel		3,069		92
a	StoneBridge Acquisition Corp.		United States		3,244		33,056
a	Supernova Partners Acquisition Co. III Ltd., A, 3/31/27, wts.		United States		6,587		165
a	Sustainable Development Acquisition I Corp.		United States		8,363		83,797
a	SVF Investment Corp., A		United States		16,643		167,262
a	SVF Investment Corp. 2, A		United States		9,817		98,465
a	Target Global Acquisition I Corp., A, 12/31/27, wts.		Israel		3,516		264
a	TB SA Acquisition Corp., A		United States		22,005		220,490
a	TB SA Acquisition Corp., A, 3/25/28, wts.		United States		7,335		238
a	TCW Special Purpose Acquisition Corp., A, 12/31/28, wts.		United States		2,088		1
a	Tech And Energy Transition Corp., A		United States		102		1,015
a	Teract SA, 11/16/25, wts.		France		3,920		82
a,b	Thunder Bridge Capital Partners IV Inc., A		United States		12,385		121,621
a	Tishman Speyer Innovation Corp. II, A		United States		1,653		16,646
a	TKB Critical Technologies 1		United States		10,059		103,155
a	TLG Acquisition One Corp., A		United States		9,876		99,451
a	TPG Pace Beneficial II Corp., A		United States		16,740		164,554
a,b	Twelve Seas Investment Co. II, A		United States		4,888		48,782
a	Twelve Seas Investment Co. II, A, 3/02/28, wts.		United States		1,629		18
a	Twin Ridge Capital Acquisition Corp., A		United States		7,511		75,335
a	two, A		United States		9,851		98,707
a	USHG Acquisition Corp., A		United States		28,448		285,333
a	Vahanna Tech Edge Acquisition I Corp., A		United States		7,916		80,822
a	Vahanna Tech Edge Acquisition I Corp., A, 11/30/28, wts.		United States		3,958		40
a	Valor Latitude Acquisition Corp., A		United States		16,723		167,230
a	Valor Latitude Acquisition Corp., A, 12/31/28, wts.		United States		5,574		335
a	Vector Acquisition Corp. II, A		United States		8,707		87,244
a	Velocity Acquisition Corp., A		United States		6,445		64,772
a	VMG Consumer Acquisition Corp., A		United States		2,210		22,365
a	VMG Consumer Acquisition Corp., A, 7/03/23, wts.		United States		1,105		44
a	VPC Impact Acquisition Holdings II Inc., A		United States		6,544		65,702

20 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares/ Warrants/ Rights		Value
	Common Stocks and Other Equity Interests (continued)
	Diversified Financial Services (continued)
a	Warburg Pincus Capital Corp. I-A, 12/31/27, wts.		Cayman Islands		249	$	—
a	Zimmer Energy Transition Acquisition Corp., A, 5/14/23, wts.		United States		2,381		307
							26,326,273
	Diversified Telecommunication Services 0.2%
a	Telecom Italia SpA		Italy		276,000		60,215
a	TELUS Corp.		Canada		43,877		934,199
	Vantage Towers AG		Germany		25,500		874,300
							1,868,714
	Electric 0.0%†
	Cia Energetica de Minas Gerais, ADR		Brazil		102,641		224,784
	Electric Utilities 2.9%
	Constellation Energy Corp.		United States		94,436		9,077,188
	Duke Energy Corp.		United States		87		8,694
b	Edison International		United States		39,851		2,656,468
	ENEL SpA		Italy		291,394		1,572,009
a	Energy Harbor Corp.		United States		85,350		6,486,600
d	NextEra Energy Inc.		United States		78,224		6,625,573
	Origin Energy Ltd.		Australia		40,752		219,187
a,b	PG&E Corp.		United States		137,157		2,153,365
	PNM Resources Inc.		United States		11,755		575,995
							29,375,079
	Electrical Equipment 1.7%
a,b	Array Technologies Inc.		United States		216,632		4,536,274
	Emerson Electric Co.		United States		74		7,087
a,b	Enovix Corp.		United States		170,408		2,223,824
a,b	Fluence Energy Inc., A		United States		167,071		2,870,280
a,b	Shoals Technologies Group Inc., A		United States		61,930		1,794,112
a,b	Stem Inc.		United States		203,031		2,653,615
a,b	Sunrun Inc.		United States		84,962		2,768,062
							16,853,254
	Electronic Equipment, Instruments & Components 0.4%
a	Coherent Corp.		United States		7,158		262,484
a	Flex Ltd.		United States		138,088		3,035,174
	Hollysys Automation Technologies Ltd.		China		70,884		1,212,117
							4,509,775
	Energy Equipment & Services 0.0%†
a	Nabors Industries Ltd.		United States		226		35,783
	Entertainment 0.5%
d	Activision Blizzard Inc.		United States		61,069		4,516,053
a	Manchester United PLC, A		United Kingdom		1,913		42,277
a,b	Netflix Inc.		United States		2,646		808,432
							5,366,762
	Equity Real Estate Investment Trusts (REITs) 0.1%
	American Tower Corp.		United States		32		7,080
a	Braemar Hotels & Resorts Inc.		United States		47		173
	Store Capital Corp.		United States		33,310		1,062,589
							1,069,842

franklintempleton.com Semiannual Report 21

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares/ Warrants/ Rights		Value
	Common Stocks and Other Equity Interests (continued)
	Food & Staples Retailing 0.6%
b	Costco Wholesale Corp.		United States		10,179	$	5,489,026
	Walgreens Boots Alliance Inc.		United States		5,823		241,654
	Walmart Inc.		United States		114		17,376
							5,748,056
	Food Products 0.1%
a	Benson Hill Inc., 12/24/25, wts.		United States		5,669		1,928
	Chocoladefabriken Lindt & Spruengli AG		Switzerland		60		631,159
	The Hershey Co.		United States		2,826		664,590
							1,297,677
	Gas Utilities 0.2%
b	South Jersey Industries Inc.		United States		71,932		2,496,040
	Health Care Equipment & Supplies 1.2%
	Abbott Laboratories		United States		8,796		946,274
a	ABIOMED Inc.		United States		15,036		5,680,450
a	Apollo Endosurgery Inc.		United States		43,210		437,717
a	Axonics Inc.		United States		1,757		120,319
c	CONMED Corp.		United States		3,248		269,097
	The Cooper Cos. Inc.		United States		1,109		350,832
a	Cutera Inc.		United States		8,797		418,561
a	DexCom Inc.		United States		3,200		372,096
a	Envista Holdings Corp.		United States		7,574		258,425
a	Hologic Inc.		United States		3,457		263,285
a	Inspire Medical Systems Inc.		United States		243		58,702
a	Intuitive Surgical Inc.		United States		2,130		575,931
a	LivaNova PLC		United States		8,092		448,054
a	Seaspine Holdings Corp.		United States		100,381		751,854
a	Shockwave Medical Inc.		United States		730		185,128
a	Silk Road Medical Inc.		United States		2,292		122,049
b	Stryker Corp.		United States		3,143		735,116
							11,993,890
	Health Care Providers & Services 0.4%
a	Centene Corp.		United States		1,966		171,140
a	Davita Inc.		United States		1,655		122,023
	Elevance Health Inc.		United States		23		12,257
	Humana Inc.		United States		1,463		804,504
a	LHC Group Inc.		United States		3,882		634,358
a,c	Oak Street Health Inc.		United States		2,973		64,276
	UnitedHealth Group Inc.		United States		3,884		2,127,500
							3,936,058
	Health Care Technology 0.1%
a	Evolent Health Inc., A		United States		14,804		426,207
a	Phreesia Inc.		United States		6,608		183,835
							610,042
	Hotels, Restaurants & Leisure 0.3%
a,b	Airbnb Inc., A		United States		14,007		1,430,675
a	Autogrill SpA		Italy		125,924		847,430
	Domino’s Pizza Inc.		United States		1,481		575,709
a	F45 Training Holdings Inc.		United States		72,042		193,793
a	HomeToGo SE, 12/31/25, wts.		Luxembourg		716		75
a	Sonder Holdings Inc., 1/31/28, wts.		United States		3,948		661

22 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares/ Warrants/ Rights		Value
	Common Stocks and Other Equity Interests (continued)
	Hotels, Restaurants & Leisure (continued)
	Starbucks Corp.		United States		142	$	14,512
							3,062,855
	Household Durables 0.2%
a	Skyline Champion Corp.		United States		33,780		1,756,222
	Household Products 0.0%†
	The Procter & Gamble Co.		United States		126		18,794
	Independent Power & Renewable Electricity Producers 2.0%
	The AES Corp.		United States		402,763		11,647,906
	Clearway Energy Inc., A		United States		6,911		227,510
b	Clearway Energy Inc., C		United States		36,540		1,294,978
b	NextEra Energy Partners LP		United States		40,638		3,270,953
a,b	Sunnova Energy International Inc.		United States		154,010		3,516,048
							19,957,395
	Industrial Conglomerates 0.3%
b	General Electric Co.		United States		26,182		2,250,866
	Toshiba Corp.		Japan		9,747		332,424
							2,583,290
	Insurance 0.3%
	Brown & Brown Inc.		United States		20,972		1,249,722
a,c	Trupanion Inc.		United States		20,041		1,047,543
b	W.R. Berkley Corp.		United States		15,022		1,145,878
							3,443,143
	Interactive Media & Services 0.8%
a,b	Alphabet Inc., A		United States		38,890		3,927,501
a	Alphabet Inc., C		United States		9,007		913,760
a,c	Bumble Inc., A		United States		15,072		367,154
a,b	Meta Platforms Inc., A		United States		13,417		1,584,548
a	Pinterest Inc., A		United States		25,313		643,456
a	Snap Inc., A		United States		23,310		240,326
a	Wejo Group Ltd., 11/18/26, wts.		United States		3,488		276
							7,677,021
	Internet & Direct Marketing Retail 0.6%
a,b	Alibaba Group Holding Ltd., ADR		China		9,003		788,303
a,b	Amazon.com Inc.		United States		20,784		2,006,487
a	Cazoo Group Ltd., 8/26/26, wts.		Cayman Islands		19,178		230
a,e	Deliveroo PLC, A, 144A		United Kingdom		65,088		68,437
b	eBay Inc.		United States		15,591		708,455
a	Etsy Inc.		United States		5,909		780,520
	JD.Com Inc., A		China		1,162		33,173
a,c	Lands’ End Inc.		United States		24,862		287,405
	Prosus NV		China		20,562		1,345,553
a	Wayfair Inc., A		United States		2,100		76,944
							6,095,507
	IT Services 2.4%
a	21Vianet Group Inc., ADR		China		57,703		289,092
	Accenture PLC, A		United States		32		9,630
	Be Shaping The Future SpA		Italy		316,310		1,147,867
a	Block Inc., A		United States		22,997		1,558,507
a	Core Scientific Inc., 1/19/27, wts.		United States		1,383		55

franklintempleton.com Semiannual Report 23

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares/ Warrants/ Rights		Value
	Common Stocks and Other Equity Interests (continued)
	IT Services (continued)
a	Evo Payments Inc., A		United States		75,706	$	2,552,049
a	FleetCor Technologies Inc.		United States		4,676		917,431
	Genpact Ltd.		United States		14,684		677,079
	Global Payments Inc.		United States		13,272		1,377,368
	Link Administration Holdings Ltd.		Australia		272,940		664,057
b	MasterCard Inc., A		United States		10,400		3,706,560
a	MoneyGram International Inc.		United States		62,430		681,736
a	MongoDB Inc., A		United States		2,937		448,451
a,b	PayPal Holdings Inc.		United States		22,027		1,727,137
a	Pushpay Holdings Ltd.		New Zealand		289,958		235,775
a	Snowflake Inc., A		United States		5,462		780,520
	Switch Inc., A		United States		189,400		6,486,950
a	VeriSign Inc.		United States		2,156		430,790
a	WEX Inc.		United States		5,275		892,213
a	Wise PLC, A		United Kingdom		35,887		283,594
							24,866,861
	Leisure Products 0.0%†
a	Tonies SE, A, 4/30/26, wts.		Germany		41,605		12,988
	Life Sciences Tools & Services 1.4%
	Agilent Technologies Inc.		United States		1,151		178,382
a,b	BIO-RAD Laboratories Inc., A		United States		531		220,211
	Danaher Corp., W		United States		8,487		2,320,431
	Eurofins Scientific SE		Luxembourg		23,357		1,621,346
	Gerresheimer AG		Germany		24,633		1,818,258
	Lonza Group AG		Switzerland		99		52,083
a	Mettler-Toledo International Inc.		United States		3,596		5,284,538
a	QIAGEN NV		United States		6,629		328,401
b	Thermo Fisher Scientific Inc.		United States		3,800		2,128,835
							13,952,485
	Machinery 0.1%
a	Berkshire Grey Inc., 7/21/26, wts.		United States		23,782		2,102
	Cummins Inc.		United States		41		10,298
	Deere & Co.		United States		29		12,789
	Fanuc Corp.		Japan		6,856		1,030,875
a	Fast Radius Inc., 2/11/28, wts.		United States		2,678		26
a,c	Nikola Corp.		United States		33,653		88,171
							1,144,261
	Marine 0.4%
a	Atlas Corp.		Canada		262,312		4,031,735
	Media 0.8%
a	Altice USA Inc., A		United States		10,775		49,134
a	Clear Channel Outdoor Holdings Inc., A		United States		159,666		180,423
	Comcast Corp., A		United States		159		5,826
a	Innovid Corp., A, 12/31/27, wts.		Israel		69		25
	Shaw Communications Inc., B		Canada		205,750		5,615,041
	Stroeer SE & Co. KGaA		Germany		42,879		1,970,070
	Tegna Inc.		United States		34,020		671,555
							8,492,074
	Metals & Mining 0.7%
a	Iamgold Corp.		Burkina Faso		395,656		811,095
d	Newmont Corp.		United States		244		11,583

24 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares/ Warrants/ Rights		Value
	Common Stocks and Other Equity Interests (continued)
	Metals & Mining (continued)
	Oz Minerals Ltd.		Australia		54,425	$	1,022,669
a	Turquoise Hill Resources Ltd.		Mongolia		61,772		1,943,965
	Yamana Gold Inc.		Canada		702,012		3,832,985
							7,622,297
	Oil, Gas & Consumable Fuels 0.7%
a,b	Archaea Energy Inc., A		United States		81,559		2,115,640
a	Battalion Oil Corp.		United States		3,790		42,903
	California Resources Corp.		United States		3,913		177,572
b	Chesapeake Energy Corp.		United States		11,749		1,216,022
a	Denbury Inc.		United States		5,500		493,680
	Devon Energy Corp.		United States		48		3,289
f,g	Gazprom PJSC		Russia		615,160		—
b	New Fortress Energy Inc., A		United States		36,240		1,844,616
	Pioneer Natural Resources Co.		United States		58		13,687
	Suncor Energy Inc.		Canada		5,802		190,776
	Targa Resources Corp.		United States		6,090		453,035
a,b	Tellurian Inc.		United States		351,914		946,649
d	The Williams Cos. Inc.		United States		297		10,306
							7,508,175
	Personal Products 0.4%
	L’Oreal SA		France		8,681		3,260,203
a	Unilever PLC		United Kingdom		13,815		692,826
							3,953,029
	Pharmaceuticals 0.7%
b	AstraZeneca PLC, ADR		United Kingdom		10,591		719,870
a	Avadel Pharmaceuticals PLC, ADR		United States		17,800		163,226
	Bristol-Myers Squibb Co.		United States		115		9,232
a	Catalent Inc.		United States		1,068		53,539
	Eli Lilly & Co., W		United States		4,506		1,672,086
	Hikma Pharmaceuticals PLC		Jordan		8,547		156,635
	Johnson & Johnson		United States		108		19,224
b	Merck & Co. Inc.		United States		12,935		1,424,403
b	Novo Nordisk AS, ADR		Denmark		5,661		705,361
a	Omeros Corp.		United States		3,700		7,918
a	Pliant Therapeutics Inc.		United States		4,177		76,773
	Roche Holding AG		United States		3,773		1,232,352
a	Verona Pharma PLC, ADR		United Kingdom		1,553		20,034
	Zoetis Inc., A		United States		2,946		454,096
a,f	Zogenix Inc., Contingent Value, rts., 12/31/23		United States		38,902		26,453
							6,741,202
	Professional Services 0.0%†
	SGS SA		Switzerland		84		197,356
	Real Estate Management & Development 0.0%†
a	Opendoor Technologies Inc.		United States		11,300		20,905
a	Redfin Corp.		United States		4,100		21,976
							42,881
	Road & Rail 1.7%
	Canadian Pacific Railway Ltd.		Canada		65,384		5,355,604
	CSX Corp.		United States		71,754		2,345,638
b,f	Hertz Corp. Escrow		United States		1,982,000		—

franklintempleton.com Semiannual Report 25

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares/ Warrants/ Rights		Value
	Common Stocks and Other Equity Interests (continued)
	Road & Rail (continued)
b	Knight-Swift Transportation Holdings Inc., A		United States		64,626	$	3,582,219
a	Uber Technologies Inc.		United States		44,595		1,299,498
b	Union Pacific Corp.		United States		20,861		4,535,807
							17,118,766
	Semiconductors & Semiconductor Equipment 0.8%
a	Advanced Micro Devices Inc.		United States		17,575		1,364,347
b	ASML Holding NV, G		Netherlands		1,693		1,029,547
	Aspeed Technology Inc.		Taiwan		7,310		508,278
	Broadcom Inc.		United States		21		11,572
	KLA Corp.		United States		2,979		1,171,194
	LAM Research Corp.		United States		1,077		508,753
	Marvell Technology Inc.		United States		41,506		1,930,859
	Microchip Technology Inc.		United States		147		11,641
b	NVIDIA Corp.		United States		5,236		886,088
a	ON Semiconductor Corp.		United States		10,543		792,834
	Qualcomm Inc.		United States		242		30,611
	Silicon Motion Technology Corp., ADR		Taiwan		3,835		241,988
							8,487,712
	Software 3.1%
a	Atlassian Corp., A		United States		8,488		1,116,596
	Aveva Group PLC		United Kingdom		67,561		2,621,781
a	Benefitfocus Inc.		United States		148,142		1,536,233
a	Bill.Com Holdings Inc.		United States		3,652		439,774
a,b	BTRS Holdings Inc.		United States		251,704		2,383,637
a	Ceridian HCM Holding Inc.		United States		23,589		1,614,431
a	Datadog Inc., A		United States		4,711		357,000
a	Dynatrace Inc.		United States		28,386		1,099,957
a	Elmo Software Ltd.		Australia		144,122		464,692
a,b	HubSpot Inc.		United States		4,499		1,363,332
	Infomedia Ltd.		Australia		497,543		374,420
	Intuit Inc.		United States		5,443		2,218,512
a,b	Knowbe4 Inc., A		United States		102,000		2,518,380
a	Livevox Holdings Inc., 6/18/26, wts.		United States		23,891		6,135
	Micro Focus International PLC		United Kingdom		134,447		851,197
b	Microsoft Corp.		United States		22,002		5,613,590
a	Momentive Global Inc.		United States		24,628		195,300
a	Nearmap Ltd.		Australia		1,154,748		1,669,815
a	Palo Alto Networks Inc.		United States		4,357		740,254
a	Salesforce.com Inc.		United States		3,168		507,672
	SAP SE		Germany		26,433		2,932,919
a,b	ServiceNow Inc.		United States		2,409		1,002,867
							31,628,494
	Specialty Retail 0.7%m
a	Frasers Group PLC		United Kingdom		38,301		419,585
	The Home Depot Inc.		United States		15,284		4,951,863
a,e	Watches of Switzerland Group PLC, 144A		United Kingdom		140,408		1,734,974
							7,106,422
	Technology Hardware, Storage & Peripherals 0.0%†
	Apple Inc.		United States		303		44,853
	Textiles, Apparel & Luxury Goods 0.2%
	Adidas AG		Germany		6,159		793,945

26 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares/ Warrants/ Rights		Value
	Common Stocks and Other Equity Interests (continued)
	Textiles, Apparel & Luxury Goods (continued)
a	Ermenegildo Zegna Holditalia SpA, 10/30/27, wts.		Italy		2,117	$	4,234
	Hermes International		France		948		1,540,765
							2,338,944
	Trading Companies & Distributors 0.4%
	Brenntag SE		Germany		17,131		1,089,206
b	Herc Holdings Inc.		United States		20,538		2,632,355
	IMCD Group NV		Netherlands		2,491		368,430
a	United Rentals Inc.		United States		1,102		389,039
							4,479,030
	Water Utilities 0.2%
	Cia de Saneamento Basico Do Estado de Sao Paulo, ADR		Brazil		37,677		435,169
	Guangdong Investment Ltd.		China		1,680,058		1,549,129
							1,984,298
	Wireless Telecommunication Services 0.1%
a	T-Mobile US Inc.		United States		1,195		180,995
b	Vodafone Group PLC, ADR		United Kingdom		70,121		787,459
							968,454
	Total Common Stocks and Other Equity Interests (Cost $306,961,854)						378,050,376
	Exchange Traded Funds 1.1%
	ARK Innovation ETF		United States		61,400		2,301,272
	Invesco QQQ Series 1 ETF		United States		42		12,321
	iShares China Large-Cap ETF		China		78,778		2,218,388
	iShares Russell 2000 ETF		United States		8,100		1,517,697
	Utilities Select Sector SPDR Fund		United States		73,600		5,257,248
	Total Exchange Traded Funds (Cost $11,539,261)						11,306,926
	Preferred Stocks 0.0%†
	Communications Equipment 0.0%†
a	Riverbed Technology Inc., pfd., A		United States		3,699		3,699
	Gas Utilities 0.0%†
c	El Paso Energy Capital Trust I, 4.75%, pfd.		United States		114		5,227
	Professional Services 0.0%†
	Clarivate PLC, 5.25%, pfd.		United Kingdom		1,431		61,719
	Thrifts & Mortgage Finance 0.0%†
	FHLMC, pfd.,
	O, 5.81%		United States		17,150		55,995
	Z, 8.375%		United States		8,177		17,989
	FNMA, pfd.,
	a O		United States		16,250		67,438
	S, 8.25%		United States		15,150		35,905
							177,327
	Total Preferred Stocks (Cost $485,937)						247,972

franklintempleton.com Semiannual Report 27

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Convertible Bonds 11.7%
	Aerospace & Defense 0.2%
	Kaman Corp., senior note, 3.25%, 5/01/24		United States		1,576,000		$	1,466,468
e	Virgin Galactic Holdings Inc., senior note, 144A, 2.50%, 2/01/27		United States		335,000			190,783
							1,657,251
	Air Freight & Logistics 0.0%†
c,e	Zto Express Cayman Inc., senior note, 144A, 1.50%, 9/01/27		China		276,000			280,416
	Airlines 0.6%
e	Air France-KLM, senior note, Reg S, 0.125%, 3/25/26		France		32,034	EUR		553,326
c	American Airlines Group Inc., senior note, 6.50%, 7/01/25		United States		683,000			775,546
e	Cathay Pacific Finance III Ltd., senior note, Reg S, 2.75%, 2/05/26		Hong Kong		8,000,000	HKD		1,057,234
	Copa Holdings SA, senior note, 4.50%, 4/15/25		Panama		1,667,000			2,972,261
e	GOL Equity Finance SA, senior note, 144A, 3.75%, 7/15/24		Brazil		1,277,000			485,899
	Jetblue Airways Corp., senior note, 0.50%, 4/01/26		United States		614,000			463,263
	Southwest Airlines Co., senior note, 1.25%, 5/01/25		United States		130,000			169,227
							6,476,756
	Auto Components 0.0%†
e	Luminar Technologies Inc., senior note, 144A, 1.25%, 12/15/26		United States		194,000			128,732
	Automobiles 0.4%
e	Fisker Inc., senior note, 144A, 2.50%, 9/15/26		United States		1,346,000			699,955
b	Ford Motor Co., senior note, zero cpn., 3/15/26		United States		683,000			708,954
b	Li Auto Inc., senior note, 0.25%, 5/01/28		China		1,508,000			1,560,780
b,e	Lucid Group Inc., senior note, 144A, 1.25%, 12/15/26		United States		968,000			543,290
	NIO Inc., senior note, zero cpn., 2/01/26		China		600,000			513,673
								4,026,652
	Banks 0.2%
	Hope Bancorp Inc., senior bond, 2.00%, 5/15/38		United States		1,778,000			1,740,306
e,h	Standard Chartered PLC, senior bond, Reg S, 7.75% to 8/15/27, FRN thereafter, Perpetual		United Kingdom		200,000			190,838
								1,931,144
	Biotechnology 0.9%
	Apellis Pharmaceuticals Inc., senior note, 3.50%, 9/15/26		United States		800,000			1,202,500
e	Avid SPV LLC, senior note, 144A, 1.25%, 3/15/26		United States		838,000			841,391
c	BioMarin Pharmaceutical Inc., senior sub. note, 1.25%, 5/15/27		United States		240,000			256,200
	Coherus Biosciences Inc., senior sub. note, 1.50%, 4/15/26		United States		1,298,000			895,750
	Dynavax Technologies Corp., senior note, 2.50%, 5/15/26		United States		1,530,000			2,160,360
	Gossamer Bio Inc., senior note, 5.00%, 6/01/27		United States		622,000			499,653
e	Halozyme Therapeutics Inc., senior note, 144A, 1.00%, 8/15/28		United States		258,000			304,440
	Insmed Inc., senior note, 0.75%, 6/01/28		United States		1,302,000			1,034,844
	Intercept Pharmaceuticals Inc., senior secured note, 3.50%, 2/15/26		United States		250,000			265,325
	Ionis Pharmaceuticals Inc., senior note, zero cpn., 4/01/26		United States		254,000			244,316
	Karyopharm Therapeutics Inc., senior note, 3.00%, 10/15/25		United States		855,000			694,030
e	Pharming Group NV, senior note, Reg S, 3.00%, 1/21/25		Netherlands		600,000	EUR		573,787
	Travere Therapeutics Inc., senior note, 2.25%, 3/01/29		United States		774,000			691,182
								9,663,778
	Chemicals 0.1%
	Amyris Inc., senior note, 1.50%, 11/15/26		United States		1,201,000			318,336
e	Danimer Scientific Inc., senior note, 144A, 3.25%, 12/15/26		United States		551,000			243,051
								561,387
	Communications Equipment 0.0%†
e	Infinera Corp., senior note, 144A, 3.75%, 8/01/28		United States		139,000			171,924

28 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Convertible Bonds (continued)
	Construction & Engineering 0.1%
	Granite Construction Inc., senior note, 2.75%, 11/01/24		United States		574,000		$	708,459
	Consumer Finance 0.3%
	EZCORP Inc., senior note, 2.875%, 7/01/24		United States		1,076,000			1,207,272
b	PRA Group Inc., senior note, 3.50%, 6/01/23		United States		1,347,000			1,335,551
e	Zip Co. Ltd., senior note, Reg S, zero cpn., 4/23/28		Australia		800,000	AUD		108,600
								2,651,423
	Diversified Consumer Services 0.1%
	Affirm Holdings Inc., senior note, zero cpn., 11/15/26		United States		469,000			276,007
e	Nexi SpA, senior note, Reg S, zero cpn., 2/24/28		Italy		400,000	EUR		305,056
								581,063
	Diversified Financial Services 0.2%
c	Lendingtree Inc., senior note, 0.50%, 7/15/25		United States		1,862,000			1,335,426
	Upstart Holdings Inc., senior note, 0.25%, 8/15/26		United States		872,000			452,350
								1,787,776
	Diversified Telecommunication Services 0.1%
e	Match Group Financeco 2 Inc., senior note, 144A, 0.875%, 6/15/26		United States		763,000			711,498
e	Radius Global Infrastructure Inc., senior note, 144A, 2.50%, 9/15/26		United States		860,000			768,252
								1,479,750
	Electrical Equipment 0.2%
e	Array Technologies Inc., senior note, 144A, 1.00%, 12/01/28		United States		677,000			717,287
	Plug Power Inc., senior note, 3.75%, 6/01/25		United States		407,000			1,304,638
								2,021,925
	Electronic Equipment, Instruments & Components 0.1%
	PAR Technology Corp., senior note, 1.50%, 10/15/27		United States		709,000			502,327
	Vishay Intertechnology Inc., senior note, 2.25%, 6/15/25		United States		452,000			443,231
								945,558
	Energy Equipment & Services 0.1%
b	Helix Energy Solutions Group Inc., senior note, 6.75%, 2/15/26		United States		1,067,000			1,359,145
	Entertainment 0.3%
	Cinemark Holdings Inc., senior note, 4.50%, 8/15/25		United States		1,031,000			1,238,231
b,e	The Marcus Corp., senior note, 144A, 5.00%, 9/15/25		United States		680,000			1,093,950
b	Sea Ltd., senior note, 0.25%, 9/15/26		Singapore		387,000			290,250
								2,622,431
	Equity Real Estate Investment Trusts (REITs) 0.2%
	Braemar Hotels & Resorts Inc., senior note, 4.50%, 6/01/26		United States		641,000			591,247
c,e	Hat Holdings I LLC / Hat Holdings II LLC, senior note, 144A, zero cpn., 5/01/25		United States		645,000			605,388
b	Pebblebrook Hotel Trust, senior note, 1.75%, 12/15/26		United States		1,161,000			1,050,705
	Summit Hotel Properties Inc., senior note, 1.50%, 2/15/26		United States		290,000			266,365
								2,513,705
	Food & Staples Retailing 0.2%
	The Chefs’ Warehouse Inc., senior note, 1.875%, 12/01/24		United States		1,652,000			1,842,806
	Food Products 0.0%†
e	Post Holdings Inc., senior note, 144A, 2.50%, 8/15/27		United States		338,000			361,998
	Health Care Equipment & Supplies 0.4%
	Cutera Inc., senior note, 2.25%, 3/15/26		United States		239,000			375,708

franklintempleton.com Semiannual Report 29

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Convertible Bonds (continued)
	Health Care Equipment & Supplies (continued)
	Cutera Inc., senior note, (continued)
	b,e 144A, 2.25%, 6/01/28		United States		893,000		$	1,002,393
	NuVasive Inc., senior note, 1.00%, 6/01/23		United States		794,000			780,601
	0.375%, 3/15/25		United States		334,000			287,574
b	Varex Imaging Corp., senior note, 4.00%, 6/01/25		United States		1,108,000			1,338,611
								3,784,887
	Health Care Providers & Services 0.1%
	Guardant Health Inc., senior note, zero cpn., 11/15/27		United States		50,000			36,382
	Inotiv Inc., senior note, 3.25%, 10/15/27		United States		587,000			340,521
	PetIQ Inc., A, senior note, 4.00%, 6/01/26		United States		882,000			771,438
								1,148,341
	Health Care Technology 0.5%
	Bandwidth Inc., senior note, 0.50%, 4/01/28		United States		1,114,000			662,384
e	Bilibili Inc., Z, senior note, 144A, 0.50%, 12/01/26		China		65,000			41,638
	Cloudflare Inc., senior note, zero cpn., 8/15/26		United States		335,000			270,848
	Coupa Software Inc., senior note, 0.125%, 6/15/25		United States		625,000			574,879
	0.375%, 6/15/26		United States		363,000			320,166
	Digitalocean Holdings Inc., senior note, zero cpn., 12/01/26		United States		1,174,000			845,280
	Health Catalyst Inc., senior note, 2.50%, 4/15/25		United States		740,000			645,650
	Livongo Health Inc., senior note, 0.875%, 6/01/25		United States		180,000			156,330
e	Nextgen Healthcare Inc., senior note, 144A, 3.75%, 11/15/27		United States		387,000			420,768
	Nutanix Inc., senior note, 0.25%, 10/01/27		United States		50,000			44,025
c	Teladoc Health Inc., senior note, 1.25%, 6/01/27		United States		105,000			80,126
	Unity Software Inc., senior note, zero cpn., 11/15/26		United States		720,000			534,240
	Veritone Inc., senior note, 1.75%, 11/15/26		United States		800,000			518,400
								5,114,734
	Hotels, Restaurants & Leisure 0.3%
e	Carnival Corp., senior note, 144A, 5.75%, 12/01/27		United States		375,000			378,750
	Draftkings Holdings Inc., senior note, zero cpn., 3/15/28		United States		586,000			379,728
	Penn Entertainment Inc., senior note, 2.75%, 5/15/26		United States		25,000			41,913
e	Royal Caribbean Cruises Ltd., senior note, 144A, 6.00%, 8/15/25		United States		1,323,000			1,887,898
								2,688,289
	Independent Power & Renewable Electricity Producers 0.1%
e	Sunnova Energy International Inc., senior note, 144A, 2.625%, 2/15/28		United States		581,000			533,649
	Interactive Media & Services 0.1%
	Snap Inc., senior note, zero cpn., 5/01/27		United States		80,000			56,200
	e 144A, 0.125%, 3/01/28		United States		1,654,000			1,120,585
								1,176,785
	Internet & Direct Marketing Retail 1.0%
	Airbnb Inc., senior note, zero cpn., 3/15/26		United States		554,000			466,468
e	Cornwall Jersey Ltd., senior note, Reg S, 0.75%, 4/16/26		United Kingdom		300,000	GBP		231,408
e	Delivery Hero AG, senior note, Reg S, 1.50%, 1/15/28		South Korea		1,000,000	EUR		694,718
	A, 1.00%, 4/30/26		South Korea		700,000	EUR		523,111
	B, 2.125%, 3/10/29		South Korea		500,000	EUR		332,040
	Etsy Inc., senior note, 0.25%, 6/15/28		United States		250,000			219,875
c	Fiverr International Ltd., senior note, zero cpn., 11/01/25		United States		1,125,000			922,500
b	Fubotv Inc., senior note, 3.25%, 2/15/26		United States		341,000			163,851
	Groupon Inc., senior note, 1.125%, 3/15/26		United States		1,144,000			710,710

30 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Convertible Bonds (continued)
	Internet & Direct Marketing Retail (continued)
e	Just Eat Takeaway.com NV, senior note, Reg S, 1.25%, 4/30/26		United Kingdom		600,000	EUR	$	489,918
	B, 0.625%, 2/09/28		United Kingdom		1,000,000	EUR		707,162
b	Magnite Inc., senior note, 0.25%, 3/15/26		United States		272,000			210,077
	Okta Inc., senior note, 0.125%, 9/01/25		United States		323,000			277,296
e	Porch Group Inc., senior note, 144A, 0.75%, 9/15/26		United States		1,428,000			763,980
	The Realreal Inc., senior note, 1.00%, 3/01/28		United States		557,000			208,875
	Spotify USA Inc., senior note, zero cpn., 3/15/26		United States		1,318,000			1,060,331
	Wayfair Inc., senior note, 1.00%, 8/15/26		United States		798,000			462,042
	0.625%, 10/01/25		United States		673,000			435,768
	e 144A, 3.25%, 9/15/27		United States		401,000			324,409
c,e	Xometry Inc., A, senior note, 144A, 1.00%, 2/01/27		United States		678,000			666,135
c	Zillow Group Inc., senior note, 1.375%, 9/01/26		United States		15,000			16,597
								9,887,271
	IT Services 0.3%
	Mitek Systems Inc., senior note, 0.75%, 2/01/26		United States		933,000			796,070
e	Repay Holdings Corp., A, senior note, 144A, zero cpn., 2/01/26		United States		1,069,000			797,046
b	Shift4 Payments Inc., senior note, zero cpn., 12/15/25		United States		903,000			832,453
b	Shopify Inc., senior note, 0.125%, 11/01/25		Canada		800,000			688,177
								3,113,746
	Leisure Products 0.1%
	NCL Corp. Ltd., senior note, 1.125%, 2/15/27		United States		773,000			590,756
	esenior note, 144A, 2.50%, 2/15/27		United States		644,000			503,286
	Peloton Interactive Inc., senior note, zero cpn., 2/15/26		United States		320,000			227,847
								1,321,889
	Machinery 0.3%
	Bloom Energy Corp., senior note, 2.50%, 8/15/25		United States		1,134,000			1,651,947
e	Desktop Metal Inc., senior note, 144A, 6.00%, 5/15/27		United States		534,000			713,958
	The Greenbrier Cos. Inc., senior note, 2.875%, 4/15/28		United States		551,000			517,664
								2,883,569
	Media 0.4%
	Cable One Inc., senior note, zero cpn., 3/15/26		United States		5,000			3,840
	Dish Network Corp., senior bond, 3.375%, 8/15/26		United States		1,279,000			831,350
	senior note, zero cpn., 12/15/25		United States		569,000			387,432
e	Liberty Broadband Corp., senior bond, 144A, 2.75%, 9/30/50		United States		650,000			630,604
	Liberty Interactive LLC, senior bond, 4.00%, 11/15/29		United States		1,448,000			506,800
	senior note, 3.75%, 2/15/30		United States		1,969,000			679,305
b,e	Liberty Media Corp., senior bond, 144A, 2.75%, 12/01/49		United States		1,238,000			1,159,387
e	Techtarget Inc., senior note, 144A, zero cpn., 12/15/26		United States		452,000			341,260
								4,539,978
	Metals & Mining 0.4%
	Century Aluminum Co., senior note, 2.75%, 5/01/28		United States		514,000			385,243
b,e	Ivanhoe Mines Ltd., senior note, 144A, 2.50%, 4/15/26		Canada		597,000			809,817
e	Lithium Americas Corp., senior note, 144A, 1.75%, 1/15/27		Canada		582,000			504,594
e	MP Materials Corp., senior note, 144A, 0.25%, 4/01/26		United States		580,000			590,150
	U.S. Steel Corp., senior note, 5.00%, 11/01/26		United States		937,000			1,941,932
								4,231,736

franklintempleton.com Semiannual Report 31

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Convertible Bonds (continued)
	Mortgage Real Estate Investment Trusts (REITs) 0.7%
e	Arbor Realty Trust Inc., senior note, 144A, 7.50%, 8/01/25		United States		625,000		$	631,875
b	KKR Real Estate Finance Trust Inc., senior note, 6.125%, 5/15/23		United States		515,000			511,652
	PennyMac Corp., senior note, 5.50%, 11/01/24		United States		910,000			813,312
	b 5.50%, 3/15/26		United States		1,671,000			1,430,794
	Redwood Trust Inc., senior note, 4.75%, 8/15/23		United States		2,854,000			2,782,650
	e 144A, 7.75%, 6/15/27		United States		486,000			434,059
	Two Harbors Investment Corp., senior note, 6.25%, 1/15/26		United States		760,000			657,856
								7,262,198
	Personal Products 0.2%
e	The Beauty Health Co., senior note, 144A, 1.25%, 10/01/26		United States		825,000			643,912
b	Herbalife Nutrition Ltd., senior note, 2.625%, 3/15/24		United States		1,203,000			1,100,745
								1,744,657
	Pharmaceuticals 0.7%
	Aurora Cannabis Inc., senior note, 5.50%, 2/28/24		Canada		887,000			847,085
	Avadel Finance Cayman Ltd., senior note, 4.50%, 2/01/23		United States		757,000			749,714
	4.50%, 10/02/23		United States		597,000			631,979
	Collegium Pharmaceutical Inc., senior note, 2.625%, 2/15/26		United States		1,026,000			1,016,808
e	Innoviva Inc., senior note, 144A, 2.125%, 3/15/28		United States		742,000			599,165
	Mannkind Corp., senior note, 2.50%, 3/01/26		United States		1,773,000			1,952,073
	Omeros Corp., senior note, 5.25%, 2/15/26		United States		15,000			8,023
c	Pacira Biosciences Inc., senior note, 0.75%, 8/01/25		United States		238,000			225,654
b	Revance Therapeutics Inc., senior note, 1.75%, 2/15/27		United States		822,000			815,835
								6,846,336
	Professional Services 0.0%†
c	Upwork Inc., senior note, 0.25%, 8/15/26		United States		549,000			415,895
	Real Estate Management & Development 0.3%
e	Opendoor Technologies Inc., senior note, 144A, 0.25%, 8/15/26		United States		2,648,000			1,121,158
	Realogy Group LLC / Realogy Co.-Issuer Corp., senior note, 0.25%, 6/15/26		United States		1,496,000			1,056,176
	Redfin Corp., senior note, 0.50%, 4/01/27		United States		1,384,000			581,280
	zero cpn., 10/15/25		United States		188,000			113,740
								2,872,354
	Road & Rail 0.0%†
	Uber Technologies Inc., senior note, zero cpn., 12/15/25		United States		90,000			76,767
	Semiconductors & Semiconductor Equipment 0.3%
e	Ams-Osram AG, senior note, Reg S, 2.125%, 11/03/27		Austria		1,400,000	EUR		1,018,696
	Veeco Instruments Inc., senior note, 3.75%, 6/01/27		United States		1,229,000			1,999,583
e	Wolfspeed Inc., senior note, 144A, 1.875%, 12/01/29		United States		43,000			44,806
								3,063,085
	Software 0.6%
e	8x8 Inc., senior note, 144A, 4.00%, 2/01/28		United States		581,000			472,644
e	Altair Engineering Inc., senior note, 144A, 1.75%, 6/15/27		United States		459,000			431,460
	Alteryx Inc., senior note, 0.50%, 8/01/24		United States		133,000			121,612
	Bentley Systems Inc., senior note, 0.375%, 7/01/27		United States		392,000			320,656
e	Confluent Inc., senior note, 144A, zero cpn., 1/15/27		United States		710,000			537,825
e	Dye & Durham Ltd., senior note, 144A, 3.75%, 3/01/26		Canada		1,409,000	CAD		809,168
	Envestnet Inc., senior note, 0.75%, 8/15/25		United States		328,000			292,535
b	Guidewire Software Inc., senior note, 1.25%, 3/15/25		United States		645,000			592,755

32 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*		Value
	Convertible Bonds (continued)
	Software (continued)
b	i3 Verticals LLC, senior note, 1.00%, 2/15/25		United States		788,000	$	735,795
	Palo Alto Networks Inc., senior note, 0.75%, 7/01/23		United States		736,000		1,415,328
	Ringcentral Inc., senior note, zero cpn., 3/15/26		United States		65,000		50,602
	A, 3/01/25		United States		576,000		495,360
	Splunk Inc., senior note, 1.125%, 6/15/27		United States		95,000		78,802
							6,354,542
	Specialty Retail 0.4%
c	Burlington Stores Inc., senior note, 2.25%, 4/15/25		United States		555,000		633,394
b	Guess? Inc., senior note, 2.00%, 4/15/24		United States		1,484,000		1,554,490
	National Vision Holdings Inc., senior note, 2.50%, 5/15/25		United States		967,000		1,383,390
e	Shift Technologies Inc., senior note, 144A, 4.75%, 5/15/26		United States		1,014,000		152,100
							3,723,374
	Transportation Infrastructure 0.2%
	Eagle Bulk Shipping Inc., senior note, 5.00%, 8/01/24		United States		1,311,000		2,229,392
	Total Convertible Bonds (Cost $132,331,852)						118,787,553
	Corporate Bonds and Notes 14.0%
	Aerospace & Defense 0.1%
	The Boeing Co., senior bond, 3.375%, 6/15/46		United States		90,000		59,991
	3.625%, 3/01/48		United States		25,000		16,842
	3.90%, 5/01/49		United States		100,000		71,076
	3.825%, 3/01/59		United States		25,000		16,443
e	Leonardo US Holdings Inc., senior bond, 144A, 6.25%, 1/15/40		Italy		136,000		160,480
e	ST Engineering Urban Solutions USA Inc., senior note, Reg S, 3.75%, 5/05/32		Singapore		400,000		362,961
e	TransDigm Inc., senior secured note, 144A, 8.00%, 12/15/25		United States		75,000		76,446
							764,239
	Airlines 0.1%
e	Allegiant Travel Co., senior secured note, 144A, 7.25%, 8/15/27		United States		92,000		89,731
e	American Airlines Group Inc., senior note, 144A, 3.75%, 3/01/25		United States		700,000		613,676
e	Spirit Loyalty Cayman Ltd. / Spirit IP Cayman Ltd., senior secured note, 144A, 8.00%, 9/20/25		United States		343,000		348,037
	United Airlines Pass-Through Trust, B, 4.875%, 1/15/26		United States		38,100		36,096
	2019-2, B, 3.50%, 5/01/28		United States		293,226		252,307
							1,339,847
	Automobiles 0.3%
e	Aston Martin Capital Holdings Ltd., senior secured note, 144A, 10.50%, 11/30/25		United Kingdom		700,000		674,975
	Ford Motor Credit Co. LLC, senior note, 5.125%, 6/16/25		United States		531,000		514,779
e	Frontier Communications Holdings LLC, senior secured note, 144A, 8.75%, 5/15/30		United States		1,218,000		1,261,470
	General Motors Co., senior bond, 5.20%, 4/01/45		United States		30,000		25,505
	5.95%, 4/01/49		United States		90,000		83,848
h	General Motors Financial Co. Inc., junior sub. note, A, 5.75% to 9/30/27, FRN thereafter, Perpetual		United States		30,000		25,493
	c B, 6.50% to 9/30/28, FRN thereafter, Perpetual		United States		75,000		65,222
							2,651,292

franklintempleton.com Semiannual Report 33

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*		Value
	Corporate Bonds and Notes (continued)
	Banks 1.2%
	Bank of America Corp., senior bond, 2.972% to 2/04/32, FRN thereafter, 2/04/33		United States		1,268,000	$	1,037,530
e	Bank Rakyat Indonesia Persero TBK PT, senior note, Reg S, 4.625%, 7/20/23		Indonesia		400,000		398,382
	Barclays PLC, senior bond, 7.437% to 11/02/32, FRN thereafter, 11/02/33		United Kingdom		787,000		834,577
	sub. bond, 3.564% to 9/23/30, FRN thereafter, 9/23/35		United Kingdom		325,000		247,111
	h junior sub. note, 4.375% to 3/15/28, FRN thereafter, Perpetual		United Kingdom		210,000		154,852
e	Canara Bank, E, senior note, Reg S, 3.875%, 3/28/24		India		466,000		455,021
e	Credit Suisse Group AG, senior note, 144A, 2.193% to 6/05/25, FRN thereafter, 6/05/26		Switzerland		250,000		210,683
	Deutsche Bank AG, sub. bond, 3.729% to 10/14/30, FRN thereafter, 1/14/32		Germany		200,000		147,186
e,h	HDFC Bank Ltd., senior bond, Reg S, 3.70% to 8/25/26, FRN thereafter, Perpetual		India		200,000		173,333
	HSBC Holdings PLC, sub. bond, 8.113% to 11/03/32, FRN thereafter, 11/03/33		United Kingdom		200,000		211,372
	h junior sub. note, 6.25% to 3/23/23, FRN thereafter, Perpetual		United Kingdom		3,400,000		3,276,070
	senior note, 4.755% to 6/09/27, FRN thereafter, 6/09/28		United Kingdom		336,000		318,842
	senior note, 7.39% to 11/03/27, FRN thereafter, 11/03/28		United Kingdom		622,000		652,684
e,h	Kasikornbank PCL, E, junior sub. note, Reg S, 4.00% to 2/10/27, FRN thereafter, Perpetual		Thailand		200,000		160,494
	Mizuho Financial Group Inc., senior bond, 5.669% to 9/13/32, FRN thereafter, 9/13/33		Japan		200,000		200,867
	Norinchukin Bank, senior note, 5.071%, 9/14/32		Japan		500,000		494,833
e	Societe Generale SA, sub. bond, 144A, 3.653% to 7/08/30, FRN thereafter, 7/08/35		France		200,000		156,224
	Standard Chartered PLC,
	e sub. bond, 144A, 3.265% to 11/18/30, FRN thereafter, 2/18/36		United Kingdom		255,000		185,488
	e,h senior bond, Reg S, 7.75% to 4/02/23, FRN thereafter, Perpetual		United Kingdom		1,000,000		993,195
	senior note, 7.767%, 11/16/28		United Kingdom		200,000		211,096
e	UniCredit SpA, senior note, 144A, 1.982% to 6/03/26, FRN thereafter, 6/03/27		Italy		329,000		278,906
h	Westpac Banking Corp., junior sub. note, 5.00% to 9/21/27, FRN thereafter, Perpetual		Australia		600,000		502,070
e	Yes Bank IFSC Banking Unit Branch, E, senior note, Reg S, 3.75%, 2/06/23		India		400,000		395,600
							11,696,416
	Capital Markets 0.6%
	Ares Capital Corp., senior bond, 3.20%, 11/15/31		United States		105,000		78,754
	senior note, 2.875%, 6/15/28		United States		95,000		78,098
	Barings BDC Inc., senior note, 3.30%, 11/23/26		United States		125,000		105,852
	Blackstone Private Credit Fund, senior note, 4.70%, 3/24/25		United States		119,000		116,386
	2.625%, 12/15/26		United States		298,000		253,363
	3.25%, 3/15/27		United States		289,000		249,199
	e 144A, 7.05%, 9/29/25		United States		421,000		422,124
	Blackstone Secured Lending Fund, senior note, 2.125%, 2/15/27		United States		190,000		158,904
	FS KKR Capital Corp., senior note, 3.40%, 1/15/26		United States		85,000		77,375
	3.125%, 10/12/28		United States		150,000		121,535
e	Huarong Finance 2017 Co. Ltd., senior bond, Reg S, 4.75%, 4/27/27		China		200,000		173,250
e	Huarong Finance 2019 Co. Ltd., Reg S, senior bond, E, 4.50%, 5/29/29		China		1,200,000		955,500

34 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*		Value
	Corporate Bonds and Notes (continued)
	Capital Markets (continued)
	Huarong Finance 2019 Co. Ltd., Reg S, (continued)
	senior bond, E, 3.875%, 11/13/29		China		500,000	$	381,674
	senior bond, E, 3.625%, 9/30/30		China		400,000		293,520
	h senior note, G, 4.25% to 9/30/25, FRN thereafter, Perpetual		China		200,000		143,111
	senior note, E, 3.25%, 11/13/24		China		200,000		180,874
e	Huarong Finance II Co. Ltd., senior bond, Reg S,
	5.00%, 11/19/25		China		500,000		451,837
	EMTN, 4.875%, 11/22/26		China		200,000		174,000
e	MDGH GMTN RSC Ltd., E, senior bond, Reg S, 3.40%, 6/07/51		United Arab Emirates		302,000		229,679
	Oaktree Specialty Lending Corp., senior note, 2.70%, 1/15/27		United States		45,000		39,224
	Owl Rock Capital Corp., senior note, 2.875%, 6/11/28		United States		80,000		64,256
e	Owl Rock Core Income Corp., senior note, 144A, 7.75%, 9/16/27		United States		1,298,000		1,313,726
							6,062,241
	Chemicals 0.1%
e	Ashland LLC, senior bond, 144A, 3.375%, 9/01/31		United States		120,000		96,317
e	Braskem Idesa SAPI, senior bond, Reg S, 6.99%, 2/20/32		Mexico		886,000		629,069
e	Braskem Netherlands Finance BV, senior bond, 144A, 4.50%, 1/31/30		Brazil		200,000		170,791
							896,177
	Commercial Services & Supplies 0.0%†
e	Verscend Escrow Corp., senior note, 144A, 9.75%, 8/15/26		United States		296,000		296,503
	Communications Equipment 0.0%†
e	Audacy Capital Corp., senior secured note, 144A, 6.75%, 3/31/29		United States		998,000		226,955
e	CommScope Inc., 144A,
	senior note, 7.125%, 7/01/28		United States		145,000		112,610
	senior secured note, 4.75%, 9/01/29		United States		60,000		50,608
e	CommScope Technologies LLC, senior bond, 144A, 5.00%, 3/15/27		United States		60,000		45,881
							436,054
	Construction & Engineering 0.1%
e	GMR Hyderabad International Airport Ltd., senior secured note,
	Reg S, 5.375%, 4/10/24		India		200,000		197,510
	144A, 4.75%, 2/02/26		India		200,000		185,500
e	India Airport Infra, senior secured note, Reg S, 6.25%, 10/25/25		India		300,000		284,691
							667,701
	Construction Materials 0.1%
e	Cemex SAB de CV, senior secured bond, 144A, 5.20%, 9/17/30		Mexico		245,000		221,823
e	SRM Escrow Issuer LLC, senior secured note, 144A, 6.00%, 11/01/28		United States		784,000		699,187
							921,010
	Consumer Finance 0.1%
h	Ally Financial Inc., C, junior sub. note, 4.70% to 5/15/28, FRN thereafter, Perpetual		United States		150,000		100,271
e	Manappuram Finance Ltd., E, senior secured note, Reg S, 5.90%, 1/13/23		India		939,000		934,446
							1,034,717

franklintempleton.com Semiannual Report 35

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Corporate Bonds and Notes (continued)
	Containers & Packaging 0.1%
	Ball Corp., senior note, 6.875%, 3/15/28		United States		337,000		$	348,896
e	Mauser Packaging Solutions Holding Co., senior secured note, 144A, 5.50%, 4/15/24		United States		629,000			621,230
								970,126
	Diversified Consumer Services 0.3%
e	Aramark Services Inc., senior note, 144A, 6.375%, 5/01/25		United States		60,000			59,967
	Global Payments Inc., senior note,
	2.90%, 11/15/31		United States		15,000			11,914
	5.40%, 8/15/32		United States		10,000			9,607
e	GLP China Holdings Ltd., E, senior note, Reg S, 2.95%, 3/29/26		China		200,000			128,999
e	The Hertz Corp., senior note, 144A, 4.625%, 12/01/26		United States		262,000			227,564
e	Metis Merger Sub LLC, senior note, 144A, 6.50%, 5/15/29		United States		141,000			116,341
b,e	MoneyGram International Inc., senior secured note, 144A, 5.375%, 8/01/26		United States		994,000			1,003,479
e,i	Sabre GLBL Inc., senior secured note, 144A, 11.25%, 12/15/27		United States		191,000			195,894
e	Sotheby’s/Bidfair Holdings Inc., senior secured note, 144A, 5.875%, 6/01/29		United States		700,000			583,698
e	United Rentals North America Inc., senior secured note, 144A, 6.00%, 12/15/29		United States		202,000			203,396
								2,540,859
	Diversified Financial Services 0.7%
e	AG Issuer LLC, senior secured note, 144A, 6.25%, 3/01/28		United States		554,000			517,487
e	Aviation Capital Group LLC, senior note, 144A, 1.95%, 1/30/26		United States		25,000			21,820
e	Finance of America Funding LLC, senior note, 144A, 7.875%, 11/15/25		United States		700,000			425,726
e	Financiera de Desarrollo Territorial SA Findeter, senior bond, 144A, 7.875%, 8/12/24		Colombia		393,000,000	COP		72,638
e	Jane Street Group / JSG Finance Inc., senior secured note, 144A, 4.50%, 11/15/29		United States		980,000			861,542
e	Medline Borrower LP, senior secured note, 144A, 3.875%, 4/01/29		United States		536,000			461,434
e	MPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28		United States		395,000			278,090
	OneMain Finance Corp., senior note, 3.50%, 1/15/27		United States		75,000			61,567
e	Rec Ltd., senior note, Reg S,
	4.75%, 5/19/23		India		1,000,000			994,700
	5.25%, 11/13/23		India		1,370,000			1,363,773
	G, 3.375%, 7/25/24		India		300,000			287,486
e	Rocket Mortgage LLC / Rocket Mortgage Co.-Issuer Inc., 144A,
	senior bond, 3.875%, 3/01/31		United States		5,000			3,874
	senior bond, 4.00%, 10/15/33		United States		360,000			265,041
	senior note, 2.875%, 10/15/26		United States		360,000			307,409
	senior note, 3.625%, 3/01/29		United States		40,000			32,272
e	Vistajet Malta Finance PLC / XO Management Holding Inc., senior note, 144A, 6.375%, 2/01/30		Switzerland		691,000			567,484
e	WMG Acquisition Corp., senior secured bond, 144A, 3.00%, 2/15/31		United States		577,000			479,089
								7,001,432
	Diversified Telecommunication Services 0.9%
e	Altice France Holding SA, senior secured note, 144A, 10.50%, 5/15/27		Luxembourg		1,262,000			999,340
b,e	Avaya Inc., senior secured note, 144A, 6.125%, 9/15/28		United States		1,828,000			810,151
	British Telecommunications PLC, senior note, 4.50%, 12/04/23		United Kingdom		439,000			435,401
e	Connect Finco Sarl / Connect US Finco LLC, senior secured note, 144A, 6.75%, 10/01/26		United Kingdom		290,000			274,524
e	IHS Holding Ltd., senior note, Reg S, 6.25%, 11/29/28		Nigeria		785,000			610,612

36 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Corporate Bonds and Notes (continued)
	Diversified Telecommunication Services (continued)
e	Kenbourne Invest SA, senior note, 144A, 6.875%, 11/26/24		Chile		200,000		$	185,298
e	Level 3 Financing Inc., senior note, 144A, 4.625%, 9/15/27		United States		2,073,000			1,749,353
e	Lorca Telecom Bondco SA, senior secured note, Reg S, 4.00%, 9/18/27		Spain		200,000	EUR		189,284
	Sprint LLC, senior note, 7.125%, 6/15/24		United States		1,176,000			1,202,440
e	Switch Ltd., senior note, 144A,
	3.75%, 9/15/28		United States		128,000			129,196
	b 4.125%, 6/15/29		United States		2,028,000			2,043,616
e	VMED O2 UK Financing I PLC, Reg S,
	senior secured bond, 4.50%, 7/15/31		United Kingdom		465,000	GBP		447,653
	senior secured note, 4.00%, 1/31/29		United Kingdom		210,000	GBP		206,468
e	Zayo Group Holdings Inc., senior note, 144A, 6.125%, 3/01/28		United States		290,000			157,848
								9,441,184
	Electric Utilities 0.6%
b,f	Bruce Mansfield Escrow, senior bond, zero cpn., 6/01/34		United States		6,394,000			23,977
h	Edison International, A, junior sub. note, 5.375% to 3/15/26, FRN thereafter, Perpetual		United States		50,000			42,600
e	EP Infrastructure AS, Reg S,
	senior bond, 1.816%, 3/02/31		Czech Republic		100,000	EUR		68,101
	senior note, 1.659%, 4/26/24		Czech Republic		147,000	EUR		136,182
	senior note, 1.698%, 7/30/26		Czech Republic		514,000	EUR		431,412
e	Eskom Holdings SOC Ltd., senior bond, Reg S,
	6.75%, 8/06/23		South Africa		510,000			499,035
	7.125%, 2/11/25		South Africa		781,000			736,221
e	Greenko Investment Co., senior secured note, Reg S, 4.875%, 8/16/23		India		200,000			195,550
	Greenko Mauritius Ltd., senior note, 6.25%, 2/21/23		India		300,000			298,500
e	Greenko Power II Ltd., senior secured note, Reg S, 4.30%, 12/13/28		India		195,500			169,049
e	Greenko Wind Projects Mauritius Ltd., senior note, Reg S, 5.50%, 4/06/25		India		200,000			188,113
	Pacific Gas and Electric Co.,
	secured bond, 4.95%, 7/01/50		United States		2,484,000			1,992,215
	secured bond, 3.50%, 8/01/50		United States		328,000			213,227
	senior bond, 4.30%, 3/15/45		United States		85,000			62,099
	PG&E Corp., senior secured bond, 5.25%, 7/01/30		United States		700,000			634,970
								5,691,251
	Energy Equipment & Services 0.2%
e	Shelf Drilling Holdings Ltd., senior note, 144A, 8.25%, 2/15/25		United Arab Emirates		157,000			136,673
e	Solaris Midstream Holdings LLC, senior note, 144A, 7.625%, 4/01/26		United States		557,000			549,291
e	Transocean Inc., senior note, 144A,
	7.25%, 11/01/25		United States		824,000			716,287
	7.50%, 1/15/26		United States		297,000			249,391
	b 11.50%, 1/30/27		United States		225,000			228,161
	8.00%, 2/01/27		United States		277,000			226,841
e	Transocean Phoenix 2 Ltd., senior secured note, 144A, 7.75%, 10/15/24		United States		312,800			310,068
e	Transocean Pontus Ltd., senior secured note, 144A, 6.125%, 8/01/25		United States		43,680			42,438
								2,459,150

franklintempleton.com Semiannual Report 37

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Corporate Bonds and Notes (continued)
	Entertainment 0.1%
e,j	AMC Entertainment Holdings Inc., senior secured note, 144A, PIK, 10.00% (cash), 6/15/26		United States		519,000		$	194,939
	Netflix Inc., senior bond,
	4.875%, 4/15/28		United States		15,000			14,591
	5.875%, 11/15/28		United States		115,000			116,462
	6.375%, 5/15/29		United States		60,000			61,978
	e 144A, 5.375%, 11/15/29		United States		30,000			29,490
	e 144A, 4.875%, 6/15/30		United States		934,000			883,503
								1,300,963
	Equity Real Estate Investment Trusts (REITs) 0.3%
	National Health Investors Inc., senior bond, 3.00%, 2/01/31		United States		30,000			21,769
	SBA Communications Corp., senior note,
	3.875%, 2/15/27		United States		10,000			9,245
	3.125%, 2/01/29		United States		700,000			585,156
	Service Properties Trust, senior bond, 4.50%, 6/15/23		United States		265,000			263,012
e	Uniti Group LP / Uniti Fiber Holdings Inc. / CSL Capital LLC, senior note, 144A, 6.00%, 1/15/30		United States		516,000			373,223
e	Vici Properties LP / Vici Note Co. Inc., 144A,
	senior bond, 4.125%, 8/15/30		United States		761,000			660,421
	senior note, 5.625%, 5/01/24		United States		126,000			124,938
	senior note, 4.625%, 6/15/25		United States		100,000			95,815
	senior note, 4.50%, 9/01/26		United States		125,000			117,198
	senior note, 4.25%, 12/01/26		United States		1,312,000			1,222,089
								3,472,866
	Food & Staples Retailing 0.4%
e	Albertsons Cos. Inc. / Safeway Inc. / New Albertsons LP / Albertsons LLC, senior note, 144A, 4.625%, 1/15/27		United States		1,921,000			1,779,365
e	Chobani LLC / Chobani Finance Corp. Inc., senior note, 144A, 7.50%, 4/15/25		United States		1,150,000			1,125,539
e	JBS USA Lux SA / JBS USA Food Co. / JBS USA Finance Inc., senior note, 144A, 3.00%, 2/02/29		United States		35,000			29,528
e	Marb Bondco PLC, senior bond, 144A, 3.95%, 1/29/31		Brazil		215,000			166,821
e	Market Bidco Finco PLC, senior note, 144A, 5.50%, 11/04/27		United Kingdom		1,000,000			926,976
								4,028,229
	Food Products 0.0%†
e	Darling Ingredients Inc., senior note, 144A, 6.00%, 6/15/30		United States		5,000			4,882
e	Post Holdings Inc., senior bond, 144A, 5.75%, 3/01/27		United States		65,000			63,446
								68,328
	Gas Utilities 0.0%†
e	Eustream AS, senior note, Reg S, 1.625%, 6/25/27		Slovak Republic		356,000	EUR		244,166
	Health Care Providers & Services 0.4%
e	Global Medical Response Inc., senior secured note, 144A, 6.50%, 10/01/25		United States		522,000			393,742
	HCA Inc.,
	e senior bond, 144A, 4.625%, 3/15/52		United States		1,970,000			1,591,213
	senior secured bond, 3.50%, 7/15/51		United States		519,000			351,599
e	LifePoint Health Inc., senior note, 144A, 5.375%, 1/15/29		United States		749,000			440,648
e	Molina Healthcare Inc., senior note, 144A, 4.375%, 6/15/28		United States		35,000			32,159
e	RP Escrow Issuer LLC, senior secured note, 144A, 5.25%, 12/15/25		United States		579,000			485,607
e	Tenet Healthcare Corp., senior secured note, 144A, 4.875%, 1/01/26		United States		779,000			740,432

38 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*		Value
	Corporate Bonds and Notes (continued)
	Health Care Providers & Services (continued)
e	Universal Health Services Inc., senior secured note, 144A, 1.65%, 9/01/26		United States		192,000	$	164,883
							4,200,283
	Health Care Technology 0.1%
e	Cloud Software Group Holdings Inc., senior secured note, 144A, 6.50%, 3/31/29		United States		845,000		739,304
e,i	Open Text Corp., senior secured note, 144A, 6.90%, 12/01/27		Canada		471,000		472,159
							1,211,463
	Hotels, Restaurants & Leisure 0.5%
e	Carnival Corp., 144A,
	senior note, 7.625%, 3/01/26		United States		566,000		477,962
	senior note, 5.75%, 3/01/27		United States		95,000		70,775
	senior note, 6.00%, 5/01/29		United States		543,000		386,220
	senior secured note, 9.875%, 8/01/27		United States		345,000		337,237
	senior secured note, 4.00%, 8/01/28		United States		485,000		404,488
b,e	Carnival Holdings Bermuda Ltd., senior note, 144A, 10.375%, 5/01/28		United States		1,121,000		1,168,945
e	Hilton Grand Vacations Borrower Escrow LLC, 144A,
	senior bond, 4.875%, 7/01/31		United States		20,000		16,531
	senior note, 5.00%, 6/01/29		United States		50,000		43,358
e	Lions Gate Capital Holdings LLC, senior note, 144A, 5.50%, 4/15/29		United States		638,000		415,542
e	Magallanes Inc., senior bond, 144A, 4.279%, 3/15/32		United States		135,000		114,756
e	Marriott Ownership Resorts Inc., senior note, 144A, 4.50%, 6/15/29		United States		35,000		29,547
e	Royal Caribbean Cruises Ltd., 144A,
	senior note, 4.25%, 7/01/26		United States		45,000		37,357
	senior note, 5.50%, 4/01/28		United States		125,000		102,176
	senior note, 9.25%, 1/15/29		United States		440,000		450,914
	senior secured note, 8.25%, 1/15/29		United States		715,000		726,654
e	Scientific Games International Inc., senior note, 144A, 7.00%, 5/15/28		United States		135,000		133,962
	Travel + Leisure Co.,
	senior secured bond, 6.00%, 4/01/27		United States		10,000		9,393
	e senior secured bond, 144A, 4.625%, 3/01/30		United States		45,000		36,544
	e senior secured note, 144A, 6.625%, 7/31/26		United States		115,000		112,825
							5,075,186
	Household Durables 0.2%
e	K. Hovnanian Enterprises Inc., senior secured note, 144A,
	7.75%, 2/15/26		United States		1,164,000		1,148,612
	10.50%, 2/15/26		United States		850,000		833,098
							1,981,710
	Independent Power & Renewable Electricity Producers 0.0%†
	NRG Energy Inc., senior note, 5.75%, 1/15/28		United States		65,000		62,322
	Industrial Conglomerates 0.0%†
	Icahn Enterprises LP / Icahn Enterprises Finance Corp., senior note,
	6.375%, 12/15/25		United States		75,000		73,350
	6.25%, 5/15/26		United States		105,000		103,773
	5.25%, 5/15/27		United States		130,000		119,885
							297,008
	Insurance 0.1%
e	Global Atlantic Finance Co., senior bond, 144A, 4.40%, 10/15/29		United States		165,000		138,918
e,h	KDB Life Insurance Co. Ltd., sub. note, Reg S, 7.50% to 5/21/23, FRN thereafter, Perpetual		South Korea		200,000		174,250
e	QBE Insurance Group Ltd., sub. bond, Reg S, 7.5% to 11/24/23, FRN thereafter, 11/24/43		Australia		250,000		249,688

franklintempleton.com Semiannual Report 39

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Corporate Bonds and Notes (continued)
	Insurance (continued)
e,h	Tongyang Life Insurance Co. Ltd., sub. note, Reg S, 5.25% to 9/22/25, FRN thereafter, Perpetual		South Korea		200,000		$	158,500
								721,356
	Interactive Media & Services 0.1%
e	Tencent Holdings Ltd., senior bond, Reg S,
	3.84%, 4/22/51		China		250,000			173,839
	3.94%, 4/22/61		China		500,000			333,326
								507,165
	Internet & Direct Marketing Retail 0.4%
	Amazon.com Inc., senior bond, 2.70%, 6/03/60		United States		1,024,000			649,031
	Expedia Group Inc., senior note,
	3.25%, 2/15/30		United States		30,000			25,684
	2.95%, 3/15/31		United States		40,000			32,559
e	Meituan, senior bond, Reg S, 3.05%, 10/28/30		China		600,000			449,914
e	Meta Platforms Inc., senior note, 144A, 3.50%, 8/15/27		United States		1,168,000			1,098,407
e	Prosus NV, Reg S,
	senior bond, 1.985%, 7/13/33		China		300,000	EUR		206,287
	senior bond, 2.778%, 1/19/34		China		821,000	EUR		596,532
	senior bond, 3.832%, 2/08/51		China		110,000			66,003
	senior bond, 4.987%, 1/19/52		China		100,000			69,999
	senior note, 1.288%, 7/13/29		China		204,000	EUR		157,653
e	Rakuten Group Inc., senior note, 144A, 10.25%, 11/30/24		Japan		446,000			439,554
								3,791,623
	IT Services 0.1%
e	Hurricane Finance PLC, senior secured note, Reg S, 8.00%, 10/15/25		United Kingdom		358,000	GBP		407,748
e	Virtusa Corp., senior note, 144A, 7.125%, 12/15/28		United States		700,000			526,190
								933,938
	Leisure Products 0.1%
e	Life Time Inc., senior secured note, 144A, 5.75%, 1/15/26		United States		144,000			138,664
e	Mattel Inc., senior note, 144A, 3.375%, 4/01/26		United States		611,000			561,812
e	NCL Corp. Ltd., 144A,
	senior note, 5.875%, 3/15/26		United States		95,000			78,053
	senior secured note, 5.875%, 2/15/27		United States		60,000			53,500
								832,029
	Machinery 0.1%
e	TK Elevator US Newco Inc., senior secured note, 144A, 5.25%, 7/15/27		Germany		579,000			526,308
	Media 1.0%
e	Advantage Sales & Marketing Inc., senior secured note, 144A, 6.50%, 11/15/28		United States		905,000			709,972
e	CCO Holdings LLC / CCO Holdings Capital Corp., senior bond, 144A,
	5.50%, 5/01/26		United States		40,000			38,850
	5.125%, 5/01/27		United States		495,000			469,069
	5.00%, 2/01/28		United States		1,328,000			1,222,995
	Charter Communications Operating LLC / Charter Communications Operating Capital, senior secured bond,
	2.30%, 2/01/32		United States		15,000			11,259
	4.40%, 4/01/33		United States		20,000			17,550
	3.50%, 3/01/42		United States		909,000			617,096
	6.484%, 10/23/45		United States		768,000			724,554
	4.40%, 12/01/61		United States		235,000			160,621

40 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Corporate Bonds and Notes (continued)
	Media (continued)
	Charter Communications Operating LLC / Charter Communications Operating Capital, senior secured bond, (continued)
	3.95%, 6/30/62		United States		1,973,000		$	1,234,596
	CSC Holdings LLC, senior bond,
	e 144A, 5.50%, 4/15/27		United States		295,000			270,660
	e 144A, 5.375%, 2/01/28		United States		181,000			162,262
	5.25%, 6/01/24		United States		192,000			185,244
	e 144A, 4.625%, 12/01/30		United States		655,000			416,418
e	DIRECTV Holdings LLC / DIRECTV Financing Co. Inc., senior secured note, 144A, 5.875%, 8/15/27		United States		30,000			27,562
	DISH DBS Corp.,
	senior note, 5.125%, 6/01/29		United States		270,000			178,200
	e senior secured note, 144A, 5.25%, 12/01/26		United States		295,000			253,811
	e senior secured note, 144A, 5.75%, 12/01/28		United States		191,000			155,269
e	Dish Network Corp., senior secured note, 144A, 11.75%, 11/15/27		United States		585,000			602,012
e	iHeartCommunications Inc., senior secured note, 144A,
	5.25%, 8/15/27		United States		90,000			80,284
	4.75%, 1/15/28		United States		1,193,000			1,030,340
	Liberty Interactive LLC, senior bond, 8.25%, 2/01/30		United States		840,000			421,533
	TEGNA Inc., senior note, 4.625%, 3/15/28		United States		587,000			554,357
e	Virgin Media Secured Finance PLC, senior secured bond, Reg S, 4.25%, 1/15/30		United Kingdom		301,000	GBP		291,594
e	Wolverine Escrow LLC, senior secured note, 144A, 8.50%, 11/15/24		United States		654,000			327,000
								10,163,108
	Metals & Mining 0.3%
e	Abja Investment Co. Pte. Ltd., senior note, Reg S, 4.45%, 7/24/23		India		600,000			594,900
	Arcelormittal SA, senior bond, 6.80%, 11/29/32		Luxembourg		245,000			247,814
e	First Quantum Minerals Ltd., senior note, 144A, 6.875%, 10/15/27		Zambia		375,000			357,775
	Freeport-McMoRan Inc., senior bond, 4.625%, 8/01/30		United States		65,000			59,458
e	Glencore Funding LLC, senior bond, 144A, 2.85%, 4/27/31		Australia		165,000			136,024
e	Taseko Mines Ltd., senior secured note, 144A, 7.00%, 2/15/26		Canada		792,000			665,979
e	Vedanta Resources Finance II PLC, senior note, Reg S,
	8.00%, 4/23/23		India		400,000			374,227
	13.875%, 1/21/24		India		400,000			343,619
e	Vedanta Resources Ltd., senior note, Reg S, 7.125%, 5/31/23		India		200,000			187,000
e	Volcan Cia Minera SAA, senior note, 144A, 4.375%, 2/11/26		Peru		30,000			25,751
								2,992,547
	Mining 0.0%†
e	FMG Resources August 2006 Pty Ltd., senior note, 144A, 4.50%, 9/15/27		Australia		50,000			45,805
	Mortgage Real Estate Investment Trusts (REITs) 0.1%
e	Apollo Commercial Real Estate Finance Inc., senior secured note, 144A, 4.625%, 6/15/29		United States		690,000			550,506
	Office Properties Income Trust, senior note, 4.50%, 2/01/25		United States		316,000			280,108
e	Rithm Capital Corp., senior note, 144A, 6.25%, 10/15/25		United States		248,000			224,332
								1,054,946
	Multiline Retail 0.0%†
	Kohl’s Corp., senior bond, 5.55%, 7/17/45		United States		424,000			281,383
	Oil, Gas & Consumable Fuels 2.2%
e	Aethon United BR LP / Aethon United Finance Corp., senior note, 144A, 8.25%, 2/15/26		United States		159,000			158,411
e,h	BP Capital Markets PLC, senior note, Reg S, 3.625% to 3/22/29, FRN thereafter, Perpetual		United Kingdom		429,000	EUR		385,679
e	Callon Petroleum Co., senior note, 144A, 8.00%, 8/01/28		United States		210,000			207,718

franklintempleton.com Semiannual Report 41

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*		Value
	Corporate Bonds and Notes (continued)
	Oil, Gas & Consumable Fuels (continued)
e	Continental Resources Inc., senior bond, 144A,
	5.75%, 1/15/31		United States		280,000	$	262,723
	2.875%, 4/01/32		United States		20,000		15,106
e	Energean Israel Finance Ltd., senior secured note, 144A, Reg S, 5.375%, 3/30/28		Israel		60,000		55,308
	Energy Transfer LP,
	senior bond, 6.125%, 12/15/45		United States		272,000		258,337
	senior bond, 6.00%, 6/15/48		United States		329,000		303,098
	senior bond, 6.25%, 4/15/49		United States		181,000		171,725
	senior bond, 5.00%, 5/15/50		United States		352,000		290,663
	h junior sub. note, H, 6.50% to 11/15/26, FRN thereafter, Perpetual		United States		554,000		478,202
	Equities Corp., senior note,
	3.90%, 10/01/27		United States		50,000		46,345
	5.00%, 1/15/29		United States		35,000		33,411
	c,e 144A, 3.625%, 5/15/31		United States		135,000		116,943
e	Hess Midstream Operations LP, senior note, 144A, 5.625%, 2/15/26		United States		25,000		24,609
e	Indian Oil Corp. Ltd., senior bond, Reg S, 5.75%, 8/01/23		India		300,000		300,522
	Laredo Petroleum Inc., senior note,
	9.50%, 1/15/25		United States		128,000		128,188
	10.125%, 1/15/28		United States		142,000		143,879
e	Moss Creek Resources Holdings Inc., senior note, 144A,
	7.50%, 1/15/26		United States		316,000		294,444
	10.50%, 5/15/27		United States		843,000		830,355
e	New Fortress Energy Inc., senior secured note, 144A, 6.75%, 9/15/25		United States		797,000		779,729
e	NGL Energy Operating LLC / NGL Energy Finance Corp., senior secured note, 144A, 7.50%, 2/01/26		United States		783,000		708,115
e	Northern Oil And Gas Inc., senior note, 144A, 8.125%, 3/01/28		United States		780,000		762,505
	Occidental Petroleum Corp.,
	senior bond, 8.875%, 7/15/30		United States		15,000		17,215
	senior bond, 6.125%, 1/01/31		United States		10,000		10,158
	senior bond, 7.875%, 9/15/31		United States		15,000		16,444
	senior note, 5.55%, 3/15/26		United States		120,000		120,160
e	Ongc Videsh Ltd., senior bond, Reg S, 3.75%, 5/07/23		India		363,000		360,170
	Ovintiv Inc., senior bond,
	8.125%, 9/15/30		United States		25,000		27,829
	7.20%, 11/01/31		United States		5,000		5,351
	7.375%, 11/01/31		United States		5,000		5,427
	6.50%, 8/15/34		United States		20,000		20,684
	6.50%, 2/01/38		United States		10,000		10,193
e	Pertamina Persero PT, senior note, Reg S, 4.30%, 5/20/23		Indonesia		400,000		398,000
	Petroleos Mexicanos, senior bond,
	5.95%, 1/28/31		Mexico		285,000		213,981
	6.625%, 6/15/35		Mexico		205,000		144,925
	6.75%, 9/21/47		Mexico		698,000		444,338
	7.69%, 1/23/50		Mexico		2,583,000		1,783,529
e	Rockies Express Pipeline LLC, senior bond, 144A, 4.95%, 7/15/29		United States		136,000		122,540
	Southwestern Energy Co., senior bond, 4.75%, 2/01/32		United States		892,000		780,869
b	Talos Production Inc., secured note, 12.00%, 1/15/26		United States		986,000		1,031,533
	Targa Resources Partners LP / Targa Resources Partners Finance Corp., senior bond, 4.875%, 2/01/31		United States		86,000		78,446
e	Thai Oil PCL, senior bond, Reg S, 3.625%, 1/23/23		Thailand		200,000		199,486
e	Thaioil Treasury Center Co. Ltd., senior note, Reg S, 3.625%, 1/23/23		Thailand		2,500,000		2,493,744
e	Transocean Guardian Ltd., senior secured note, 144A, 5.875%, 1/15/24		United States		475,488		463,753
e	Tullow Oil PLC, senior note, Reg S, 10.25%, 5/15/26		Ghana		2,105,000		1,807,490

42 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Corporate Bonds and Notes (continued)
	Oil, Gas & Consumable Fuels (continued)
e	Venture Global Calcasieu Pass LLC, senior secured bond, 144A, 3.875%, 11/01/33		United States		1,351,000		$	1,101,065
	Western Midstream Operating LP, senior note, 3.35%, 2/01/25		United States		85,000			81,583
	The Williams Cos. Inc., senior bond, 3.50%, 10/15/51		United States		2,098,000			1,487,408
e	YPF Sociedad Anonima,
	senior bond, Reg S, 8.50%, 7/28/25		Argentina		536,000			424,231
	senior bond, 144A, 6.95%, 7/21/27		Argentina		105,000			70,838
	senior note, Reg S, 8.75%, 4/04/24		Argentina		1,418,900			1,323,605
	senior note, Reg S, 8.50%, 3/23/25		Argentina		995,000			869,819
								22,670,829
	Pharmaceuticals 0.4%
e	1375209 Bc Ltd., senior secured note, 144A, 9.00%, 1/30/28		Canada		540,000			533,250
e	Bausch Health Cos. Inc., 144A, senior bond, 5.25%, 1/30/30		United States		120,000			50,193
	senior bond, 5.25%, 2/15/31		United States		40,000			16,790
	senior note, 7.00%, 1/15/28		United States		70,000			30,025
	senior note, 5.00%, 1/30/28		United States		165,000			67,800
	senior note, 5.00%, 2/15/29		United States		20,000			8,458
	senior note, 6.25%, 2/15/29		United States		20,000			8,393
	senior secured note, 5.50%, 11/01/25		United States		829,000			701,641
	senior secured note, 11.00%, 9/30/28		United States		1,299,000			1,003,477
	senior secured note, 14.00%, 10/15/30		United States		259,000			144,988
e	Organon & Co. / Organon Foreign Debt Co.-Issuer BV, senior bond, 144A, 5.125%, 4/30/31		United States		691,000			613,954
	Teva Pharmaceutical Finance Co. LLC, senior bond, 6.15%, 2/01/36		Israel		10,000			8,556
	Teva Pharmaceutical Finance Netherlands II BV, senior note, 6.00%, 1/31/25		Israel		335,000	EUR		348,649
	Teva Pharmaceutical Finance Netherlands III BV, senior bond, 3.15%, 10/01/26		Israel		185,000			161,157
	senior bond, 4.10%, 10/01/46		Israel		100,000			62,139
	senior note, 2.80%, 7/21/23		Israel		325,000			317,338
								4,076,808
	Professional Services 0.0%†
e	Corelogic Inc., senior secured note, 144A, 4.50%, 5/01/28		United States		452,000			334,166
	Real Estate Management & Development 0.3%
e	Agile Group Holdings Ltd., Reg S, h senior note, 7.875% to 7/31/24, FRN thereafter, Perpetual		China		200,000			36,337
	senior secured note, 6.05%, 10/13/25		China		200,000			77,648
e	Central China Real Estate Ltd., senior secured note, Reg S, 7.25%, 8/13/24		China		200,000			24,859
e	CFLD Cayman Investment Ltd., senior note, Reg S, 8.60%, 4/08/24		China		200,000			17,569
e	China Aoyuan Group Ltd., senior secured note, Reg S, 5.98%, 8/18/25		China		200,000			10,201
e	China Evergrande Group, senior note, Reg S, 8.75%, 6/28/25		China		200,000			12,836
e,f	China South City Holdings Ltd., Reg S, senior note, 9.00%, 12/11/24		China		195,000			59,239
	senior secured note, 9.00%, 7/20/24		China		190,000			61,367
e	Country Garden Holdings Co. Ltd., Reg S, senior secured bond, 5.625%, 1/14/30		China		200,000			75,734
	senior secured note, 7.25%, 4/08/26		China		200,000			94,520
	senior secured note, 2.70%, 7/12/26		China		400,000			180,088
	senior secured note, 5.125%, 1/14/27		China		200,000			84,146
j	Easy Tactic Ltd., senior secured note, PIK, 6.50% (cash), 7/11/27		China		206,048			24,654
e	Hunt Cos. Inc., senior secured note, 144A, 5.25%, 4/15/29		United States		431,000			358,167
e	Logan Group Co. Ltd., senior note, Reg S, 5.25%, 10/19/25		China		200,000			25,750

franklintempleton.com Semiannual Report 43

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*		Value
	Corporate Bonds and Notes (continued)
	Real Estate Management & Development (continued)
e	New Metro Global Ltd., senior note, Reg S, 4.625%, 10/15/25		China		200,000	$	120,000
	4.50%, 5/02/26		China		200,000		109,000
e,h	NWD Finance BVI Ltd., senior note, Reg S, 6.15% to 3/16/25, FRN thereafter, Perpetual		Hong Kong		500,000		420,750
e	Perfect Point Ventures Ltd., senior note, Reg S, 5.20%, 9/20/25		Hong Kong		400,000		336,600
e	RKPF Overseas 2019 A Ltd., senior note, Reg S, 5.90%, 3/05/25		China		200,000		112,650
e,h	Sino-Ocean Land Treasure III Ltd., senior note, Reg S, 6.876%, Perpetual		China		330,000		59,565
e	Sino-Ocean Land Treasure IV Ltd., senior bond, Reg S, 4.75%, 1/14/30		China		200,000		72,862
e	Times China Holdings Ltd., senior secured note, Reg S, 5.55%, 6/04/24		China		200,000		19,080
e	Wanda Properties Overseas Ltd., senior note, Reg S, 6.95%, 12/05/22		China		200,000		198,744
							2,592,366
	Road & Rail 0.1%
e	SF Holding Investment Ltd., senior bond, Reg S, 3.125%, 11/17/31		China		400,000		326,380
e	Uber Technologies Inc., senior note, 144A, 8.00%, 11/01/26		United States		20,000		20,255
	7.50%, 9/15/27		United States		400,000		402,696
	6.25%, 1/15/28		United States		40,000		38,649
	4.50%, 8/15/29		United States		180,000		157,032
							945,012
	Semiconductors & Semiconductor Equipment 0.1%
	Broadcom Inc., senior bond, 4.15%, 11/15/30		United States		120,000		107,898
	e 144A, 3.137%, 11/15/35		United States		50,000		37,099
	Intel Corp., senior bond, 3.05%, 8/12/51		United States		512,000		349,320
	Micron Technology Inc., senior note, 6.75%, 11/01/29		United States		115,000		119,849
	NVIDIA Corp., senior bond, 2.85%, 4/01/30		United States		512,000		452,451
							1,066,617
	Software 0.2%
	Microsoft Corp., senior bond, 2.525%, 6/01/50		United States		512,000		353,383
	Oracle Corp., senior bond, 3.60%, 4/01/40		United States		287,000		215,924
	3.60%, 4/01/50		United States		739,000		515,318
	3.95%, 3/25/51		United States		125,000		91,641
	3.85%, 4/01/60		United States		570,000		385,293
							1,561,559
	Specialty Retail 0.6%
e	Abercrombie & Fitch Management Co., senior secured note, 144A, 8.75%, 7/15/25		United States		265,000		264,000
	Bath & Body Works Inc., senior bond, 6.875%, 11/01/35		United States		191,000		173,116
	6.75%, 7/01/36		United States		248,000		218,085
	e 144A, 6.625%, 10/01/30		United States		319,000		299,062
e	Carvana Co., senior note, 144A, 5.625%, 10/01/25		United States		2,123,000		959,055
	5.50%, 4/15/27		United States		355,000		128,050
	5.875%, 10/01/28		United States		507,000		178,804
	4.875%, 9/01/29		United States		675,000		226,857
	10.25%, 5/01/30		United States		2,019,000		860,447

44 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Corporate Bonds and Notes (continued)
	Specialty Retail (continued)
e	China Grand Automotive Services Ltd., E, senior note, Reg S, 9.125%, 1/30/24		China		333,000		$	202,298
e	Douglas GMBH, senior secured note, Reg S, 6.00%, 4/08/26		Germany		2,293,000	EUR		1,992,033
e	Guitar Center Inc., senior secured note, 144A, 8.50%, 1/15/26		United States		702,000			615,113
e	LS Finance 2017 Ltd., senior note, Reg S, 4.80%, 6/18/26		Hong Kong		200,000			129,853
	E, 4.875%, 7/15/24		Hong Kong		200,000			169,500
								6,416,273
	Technology Hardware, Storage & Peripherals 0.0%†
	CDW LLC / CDW Finance Corp., senior note, 4.25%, 4/01/28		United States		40,000			36,208
	3.25%, 2/15/29		United States		55,000			46,710
	Western Digital Corp., senior note, 4.75%, 2/15/26		United States		75,000			70,781
	2.85%, 2/01/29		United States		70,000			55,733
								209,432
	Telecommunications 0.0%†
	Embarq Corp., senior bond, 7.995%, 6/01/36		United States		437,000			186,420
	Thrifts & Mortgage Finance 0.1%
e	IIFL Finance Ltd., E, senior secured note, Reg S, 5.875%, 4/20/23		India		1,300,000			1,284,400
e	Nationstar Mortgage Holdings Inc., senior bond, 144A, 5.75%, 11/15/31		United States		60,000			48,081
								1,332,481
	Tobacco 0.2%
b,e	Vector Group Ltd., senior note, 144A, 10.50%, 11/01/26		United States		1,566,000			1,572,115
	Trading Companies & Distributors 0.0%†
	Aircastle Ltd., e,h junior sub. note, 144A, 5.25% to 6/15/26, FRN thereafter, Perpetual		United States		25,000			18,625
	senior note, 4.25%, 6/15/26		United States		170,000			158,601
								177,226
	Transportation Infrastructure 0.0%†
e	Adani Ports & Special Economic Zone Ltd., senior note, 144A, 4.20%, 8/04/27		India		200,000			175,363
	Wireless Telecommunication Services 0.0%†
e	Softbank Group Corp., senior bond, Reg S, 5.25%, 7/06/31		Japan		200,000			160,000
	Total Corporate Bonds and Notes (Cost $154,514,246)							142,139,598
	Corporate Bonds and Notes in Reorganization 0.6%
	Electric Utilities 0.4%
e,k	Talen Energy Supply LLC, 144A, b senior note, 7.25%, 5/15/27		United States		3,359,000			3,457,782
	senior note, 6.625%, 1/15/28		United States		596,000			604,177
	senior secured note, 7.625%, 6/01/28		United States		436,000			449,625
								4,511,584
	Metals & Mining 0.0%†
e,k	Samarco Mineracao SA, senior bond, Reg S, 4.125%, 11/01/22		Brazil		925,000			413,825

franklintempleton.com Semiannual Report 45

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Corporate Bonds and Notes in Reorganization (continued)
	Metals & Mining (continued)†
	5.75%, 10/24/23		Brazil		184,000		$	94,116
								507,941
	Pharmaceuticals 0.1%
b,e,k	Par Pharmaceutical Inc., senior note, 144A, 7.50%, 4/01/27		United States		1,105,000			833,540
	Real Estate Management & Development 0.1%
e,k	Kaisa Group Holdings Ltd., senior secured note, Reg S, 8.50%, 6/30/22		China		692,000			72,775
	11.95%, 11/12/23		China		200,000			19,360
	9.375%, 6/30/24		China		205,000			19,773
	11.25%, 4/16/25		China		994,000			95,892
	11.70%, 11/11/25		China		200,000			19,401
	11.65%, 6/01/26		China		200,000			19,292
e,k	Ronshine China Holdings Ltd., senior secured note, Reg S, 8.10%, 6/09/23		China		200,000			9,407
e,k	Shimao Group Holdings Ltd., Reg S, senior bond, 4.60%, 7/13/30		China		200,000			21,172
	senior secured note, 4.75%, 7/03/22		China		200,000			23,262
	senior secured note, 6.125%, 2/21/24		China		200,000			20,173
e,k	Sunac China Holdings Ltd., Reg S, senior note, 6.80%, 10/20/24		China		300,000			38,250
	senior secured note, 8.35%, 4/19/23		China		200,000			23,407
	senior secured note, 6.65%, 8/03/24		China		200,000			23,878
	senior secured note, 6.50%, 1/26/26		China		200,000			24,250
e,k	Yuzhou Group Holdings Co. Ltd., senior secured note, Reg S, 8.375%, 10/30/24		China		200,000			10,412
	7.70%, 2/20/25		China		200,000			10,500
	7.85%, 8/12/26		China		205,000			11,638
	6.35%, 1/13/27		China		400,000			23,702
k	Zhenro Properties Group Ltd., senior note, 8.00%, 3/06/23		China		981,000			34,351
	e Reg S, 6.63%, 1/07/26		China		403,000			14,173
								535,068
	Total Corporate Bonds and Notes in Reorganization (Cost $9,434,065)							6,388,133
l,m	Senior Floating Rate Interests 0.2%
	Communications Equipment 0.0%†
j	Riverbed Technology Inc., Exit Term Loan, PIK, 7.00% (cash), (1-Month USD LIBOR + 6.00%), 12/08/26		United States		137,428			58,112
	Consumer Discretionary Services 0.1%
	Travel Leaders Group LLC, Term Loan B, 8.071%, (1-Month USD LIBOR + 4.00%), 1/25/24		United States		477,200			436,141
	Diversified Financial Services 0.0%†
	Ziggo BV, Term Loan H, 3.764%, (3-Month EURIBOR + 3.00%), 1/31/29		United States		115,000			112,375
	Entertainment 0.0%†
	Playtika Holding Corp., Term Loan B, 6.821%, (1-Month USD LIBOR + 2.75%), 3/13/28		United States		151,199			147,702
	Equity Real Estate Investment Trusts (REITs) 0.0%†
	McCarthy & Stone PLC, Term Loan B, 7.00%, (1-Month USD LIBOR + 7.00%), 12/16/25		United Kingdom		170,938	GBP		178,210

46 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
l,m	Senior Floating Rate Interests (continued)
	Food & Staples Retailing 0.0%†
n	Upfield Group BV, Term Loan RC, 4.492%, (3-Month EURIBOR + 3.00%), 1/02/25		Netherlands		227,457		$	198,229
	Health Care Equipment & Supplies 0.0%†
	Bausch & Lomb Corp., Initial Term Loan, 7.149%, (1-Month SOFR + 3.35%), 5/10/27		United States		192,419			182,943
	Media 0.0%†
	Advantage Sales & Marketing Inc., Term Loan B1, 8.284%, (3-Month USD LIBOR + 4.50%), 10/28/27		United States		115,805			93,903
	Altice USA Inc., Term Loan B, 6.123%, (1-Month USD LIBOR + 2.25%), 1/15/26		United States		35,172			33,617
								127,520
	Pharmaceuticals 0.0%†
n	Bausch Health Cos. Inc., Term Loan B, 9.146%, (1-Month SOFR + 5.25%), 2/01/27		United States		225,663			169,106
	Software 0.1%
n	Citrix Systems Inc., Term Loan B, 8.153%, (1-Month SOFR + 4.50%), 3/30/29		United States		308,266			280,798
	Textiles, Apparel & Luxury Goods 0.0%†
n	Varsity Brands, Initial Term Loan, 7.571%, (1-Month USD LIBOR + 3.50%), 12/16/24		United States		27,263			26,229
	Total Senior Floating Rate Interests (Cost $2,200,109)							1,917,365
	Foreign Government and Agency Securities 5.5%
e	Export-Import Bank of India, E, senior bond, Reg S, 4.00%, 1/14/23		India		500,000			499,318
e	Government of Abu Dhabi, senior bond, Reg S, 3.125%, 9/30/49		United Arab Emirates		1,595,000			1,174,255
	2.70%, 9/02/70		United Arab Emirates		992,000			614,913
e	Government of Angola, senior bond, 144A, 8.75%, 4/14/32		Angola		349,000			315,398
	Reg S, 8.00%, 11/26/29		Angola		241,000			219,250
	Reg S, 9.375%, 5/08/48		Angola		300,000			251,483
	Government of Argentina, senior bond, 3.875%, 1/09/28		Argentina		10,646,545			3,212,437
	1.50%, 7/09/35		Argentina		3,851,885			905,240
	3.50%, 7/09/41		Argentina		2,914,585			795,904
	Government of Colombia, senior bond, 2.25%, 4/18/29		Colombia		8,477,628,092	COP		1,461,571
	B, 7.00%, 6/30/32		Colombia		14,834,900,000	COP		2,077,964
	8.00%, 4/20/33		Colombia		1,500,000			1,484,662
	B, 7.25%, 10/26/50		Colombia		8,292,400,000	COP		978,840
e	Government of Dominican Republic, senior bond, Reg S, 5.875%, 1/30/60		Dominican Republic		584,000			435,810
e	Government of Ecuador, senior bond, Reg S, 2.50%, 7/31/35		Ecuador		2,042,415			905,605
e	Government of Egypt, senior bond, Reg S, 7.903%, 2/21/48		Egypt		504,000			327,442
	7.50%, 2/16/61		Egypt		1,825,000			1,168,120
e	Government of El Salvador, senior bond, Reg S, 7.75%, 1/24/23		El Salvador		1,470,000			1,381,800
	8.25%, 4/10/32		El Salvador		2,066,000			878,050
e	Government of Germany, senior bond, Reg S, zero cpn., 2/15/32		Germany		388,800	EUR		339,623
	1.70%, 8/15/31		Germany		287,000	EUR		292,342

franklintempleton.com Semiannual Report 47

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*				Value
	Foreign Government and Agency Securities (continued)
e	Government of Ghana, senior bond, Reg S, 10.75%, 10/14/30		Ghana		3,093,000			$	2,171,286
e	Government of Iraq, senior bond, Reg S, 5.80%, 1/15/28		Iraq		1,618,375				1,456,553
	Government of Italy, senior note, 2.375%, 10/17/24		Italy		350,000				328,469
	Government of Mexico, senior bond, M, 7.75%, 5/29/31		Mexico		41,430,000	o	MXN		1,953,974
	S, 2.75%, 11/27/31		Mexico		44,375,529	o	MXN		2,010,661
	M, 7.75%, 11/13/42		Mexico		21,980,000	o	MXN		975,335
e	Government of Nigeria, senior note, 144A, 8.375%, 3/24/29		Nigeria		530,000				443,207
e	Government of Oman, senior bond, Reg S, 6.25%, 1/25/31		Oman		386,000				385,695
	6.75%, 1/17/48		Oman		442,000				406,289
	Government of Peru, senior note, 8.20%, 8/12/26		Peru		2,166,000				593,159
e	Government of Qatar, Reg S, senior bond, 4.40%, 4/16/50		Qatar		2,141,000				1,961,980
	senior note, 3.375%, 3/14/24		Qatar		1,230,000				1,208,454
	Government of South Africa, senior bond, 10.50%, 12/21/26		South Africa		16,194,525		ZAR		993,874
	8.25%, 3/31/32		South Africa		64,098,616		ZAR		3,162,654
	8.50%, 1/31/37		South Africa		61,016,496		ZAR		2,814,926
	8.75%, 2/28/48		South Africa		14,354,417		ZAR		653,750
e	Government of Tunisian Republic, senior note, Reg S, 6.75%, 10/31/23		Tunisia		569,000		EUR		532,418
	5.625%, 2/17/24		Tunisia		1,706,000		EUR		1,474,766
	Government of Turkey, senior bond, 5.75%, 5/11/47		Turkey		1,931,000				1,322,721
	e senior note, Reg S, 9.758%, 11/13/25		Turkey		2,995,000				3,126,031
	senior note, 9.875%, 1/15/28		Turkey		920,000				962,847
e	Government of Ukraine, Reg S, senior bond, 7.75%, 9/01/26		Ukraine		2,041,000				487,864
	senior bond, 7.375%, 9/25/34		Ukraine		1,838,000				397,706
	senior bond, 7.253%, 3/15/35		Ukraine		1,125,000				241,884
	senior bond, zero cpn., 8/01/41		Ukraine		7,606,000				2,333,931
	senior note, 8.994%, 2/01/26		Ukraine		845,000				206,173
e	Government of Zambia, senior bond, Reg S, 8.50%, 4/14/24		Zambia		1,763,000				822,746
	8.97%, 7/30/27		Zambia		1,797,000				829,765
e	Provincia de Buenos Aires, Reg S, p 144A, FRN, 72.792%, (ARS BADLAR + 3.75%), 4/12/25		Argentina		3,670,000		ARS		9,555
	senior bond, 5.25%, 9/01/37		Argentina		6,299,775				2,122,205
	Total Foreign Government and Agency Securities (Cost $61,381,243)								56,110,905
	U.S. Government and Agency Securities 1.4%
	U.S. Treasury Bond, 2.25%, 2/15/52		United States		251,100				181,410
	2.875%, 5/15/52		United States		1,325,700				1,102,402
	U.S. Treasury Note, 1.375%, 8/31/23		United States		1,095,000				1,067,882
	0.125%, 9/15/23		United States		480,000				463,049
	1.375%, 9/30/23		United States		705,000				685,613
	3.125%, 8/31/27		United States		4,727,500				4,583,644
	4.125%, 10/31/27		United States		3,008,000				3,046,658
	3.875%, 9/30/29		United States		267,000				268,898
	4.00%, 10/31/29		United States		57,000				57,873
	1.875%, 2/15/32		United States		358,000				308,355
	2.875%, 5/15/32		United States		218,200				204,563
	2.75%, 8/15/32		United States		1,732,900				1,605,369

48 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	U.S. Government and Agency Securities (continued)
	U.S. Treasury Note, (continued) 4.125%, 11/15/32		United States		388,100		$	403,321
	Total U.S. Government and Agency Securities (Cost $14,058,716)							13,979,037
	Asset-Backed Securities and Commercial Mortgage-Backed Securities 4.9%
	Diversified Financial Services 3.0%
e	AASET Trust, 144A, 2021-1A, A, 2.95%, 11/16/41		United States		207,471			165,594
	2021-1A, B, 3.80%, 11/16/41		United States		1,219,989			860,768
e	Accelerated Assets LLC, 2018-1, B, 144A, 4.51%, 12/02/33		United States		33,197			31,620
e	Adams Outdoor Advertising LP, 2018-1, A, 144A, 4.81%, 11/15/48		United States		165,772			157,349
e,m	AGL CLO 3 Ltd., 2020-3A, C, 144A, FRN, 6.229%, (3-Month USD LIBOR + 2.15%), 1/15/33		United States		285,000			270,280
e	AIM Aviation Finance Ltd., 2015-1A, B1, 144A, 7.072%, 2/15/40		United States		170,624			47,763
e,m	Arbor Realty Commercial Real Estate Notes Ltd., 2022-FL1, D, 144A, FRN, 6.218%, (SOFR + 3.00%), 1/15/37		United States		1,000,000			923,125
m	Argent Securities Inc., 2004-W3, M4, FRN, 3.447%, (1-Month USD LIBOR + 4.58%), 2/25/34		United States		102,795			116,024
e	Avis Budget Rental Car Funding AESOP LLC, 2020-2A, C, 144A, 4.25%, 2/20/27		United States		100,000			89,332
e,m	Battalion CLO VIII Ltd., 2020-8A, D1R2, 144A, FRN, 10.944%, (3-Month USD LIBOR + 6.75%), 7/18/30		United States		1,500,000			1,239,773
q	Bear Stearns ALT-A Trust, 2006-3, 21A1, FRN, 3.169%, 5/25/36		United States		1,011,570			777,211
e,q	Binom Securitization Trust, 2022-RPL1, M1, 144A, FRN, 3.00%, 2/25/61		United States		160,000			114,832
e	Black Diamond CLO Designated Activity Co., 2015-1, ER, Reg S, 6.29%, 10/03/29		Ireland		1,330,000	EUR		1,248,607
e	Blackbird Capital Aircraft Lease Securitization Ltd., 2016-1A, A, 144A, 4.213%, 12/16/41		United States		169,015			138,381
e,m	Catamaran CLO Ltd., 2014-2A, D, 144A, FRN, 9.044%, (3-Month USD LIBOR + 4.85%), 10/18/26		United States		1,010,665			970,543
e,m	CHCP Ltd., 2021-FL1, C, 144A, FRN, 6.078%, (SOFR + 2.21%), 2/15/38		United States		1,000,000			972,858
	CHL Mortgage Pass-Through Trust, f 2004-4, M, 5.50%, 5/25/34		United States		663,469			356,394
	2006-21, A8, 5.75%, 2/25/37		United States		289,650			144,209
	q 2006-HYB1, 2A2C, FRN, 2.967%, 3/20/36		United States		1,072,517			950,192
	q 2006-HYB4, 3B, FRN, 3.519%, 6/20/36		United States		1,553,115			1,165,450
e,m	Connecticut Avenue Securities Trust, 144A, FRN, 2021-R01, 1B1, 6.621%, (SOFR + 3.10%), 10/25/41		United States		100,000			92,179
	2022-R07, 1B1, 10.347%, (SOFR + 6.80%), 6/25/42		United States		70,003			71,588
e	CoreVest American Finance Trust, 2019-2, B, 144A, 3.424%, 6/15/52		United States		100,000			88,137
e	CSMC Trust, 144A, q 2020-RPL3, A1, FRN, 2.691%, 3/25/60		United States		89,316			84,833
	2021-RPL1, A2, 3.937%, 9/27/60		United States		155,000			145,556
e	Domino’s Pizza Master Issuer LLC, 2018-1A, A2II, 144A, 4.328%, 7/25/48		United States		172,800			161,036
e	Education Funding Trust Trust, 2020-A, A, 144A, 2.79%, 7/25/41		United States		72,735			67,290
e,m	Eurosail-UK PLC, 2007-2X, C1A, FRN, Reg S, 1.384%, (3-Month EURIBOR + 0.45%), 3/13/45		United Kingdom		1,220,000	EUR		1,031,818
e	Exeter Automobile Receivables Trust, 2020-2A, D, 144A, 4.73%, 4/15/26		United States		90,000			89,155
q	Fannie Mae Grantor Trust, 2004-T5, AB7, FRN, 4.086%, 5/28/35		United States		273,525			248,098
e,m	FHLMC, 2022-DNA1, M1B, 144A, FRN, 5.371%, (SOFR + 1.85%), 1/25/42		United States		78,000			71,453
e	Flagship Credit Auto Trust, 2019-4, D, 144A, 3.12%, 1/15/26		United States		90,000			85,287

franklintempleton.com Semiannual Report 49

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*		Value
	Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)
	Diversified Financial Services (continued)
e,m	GSRPM Mortgage Loan Trust, 2002-1A, M1, 144A, FRN, 5.994%, (1-Month USD LIBOR + 1.95%), 11/25/31		United States		698,678	$	680,686
e	Hertz Vehicle Financing III LLC, 2022-3A, D, 144A, 6.31%, 3/25/25		United States		250,000		239,402
e	Kestrel Aircraft Funding Ltd., 2018-1A, A, 144A, 4.25%, 12/15/38		United States		197,332		166,610
e,m	Marathon CLO V Ltd., 2017-5A, CR, 144A, FRN, 7.425%, (3-Month USD LIBOR + 2.75%), 11/21/27		United States		2,200,000		2,122,383
e,m	Marathon CLO VI Ltd., 2018-6A, CR2, 144A, FRN, 8.15%, (3-Month USD LIBOR + 3.50%), 5/13/28		United States		1,000,000		968,545
e,m	MF1 Ltd., 2022-FL8, D, 144A, FRN, 6.068%, (SOFR + 2.65%), 2/19/37		United States		500,000		461,479
e,q	Mill City Mortgage Loan Trust, 2021-NMR1, M3, 144A, FRN, 2.50%, 11/25/60		United States		100,000		78,500
m	MortgageIT Mortgage Loan Trust, 2006-1, 2A1B, FRN, 4.604%, (1-Month USD LIBOR + 0.56%), 4/25/36		United States		552,049		227,379
e	MVW Owner Trust, 2019-1A, C, 144A, 3.33%, 11/20/36		United States		36,757		34,123
e,m	Neuberger Berman Loan Advisers CLO Ltd., 2018-27A, E, 144A, FRN, 9.279%, (3-Month USD LIBOR + 5.20%), 1/15/30		United States		350,000		306,216
e,m	OCP CLO Ltd., 2021-21A, D, 144A, FRN, 7.193%, (3-Month USD LIBOR + 2.95%), 7/20/34		United States		330,000		305,107
e,m	OHA Credit Funding 4 Ltd., 2021-4A, ER, 144A, FRN, 10.725%, (3-Month USD LIBOR + 6.40%), 10/22/36		United States		310,000		283,249
e	OneMain Financial Issuance Trust, 2020-2A, C, 144A, 2.76%, 9/14/35		United States		100,000		83,703
e	Prestige Auto Receivables Trust, 144A, 2019-1A, E, 3.90%, 5/15/26		United States		100,000		97,873
	2020-1A, E, 3.67%, 2/15/28		United States		100,000		97,147
e	Progress Residential Trust, 144A, 2021-SFR4, F, 3.407%, 5/17/38		United States		230,000		193,323
	2021-SFR7, F, 3.834%, 8/17/40		United States		260,000		211,235
m	Saxon Asset Securities Trust, 2002-3, M2, FRN, 6.631%, (1-Month USD LIBOR + 2.59%), 12/25/32		United States		1,133,472		978,173
e	SCF Equipment Leasing LLC, 2021-1A, E, 144A, 3.56%, 8/20/32		United States		100,000		91,018
e,q	Security National Mortgage Loan Trust, 2004-1A, AF3, 144A, FRN, 6.42%, 6/25/32		United States		1,483,060		1,110,966
e	Sierra Timeshare Receivables Funding LLC, 2021-1A, C, 144A, 1.79%, 11/20/37		United States		112,300		102,561
e	S-Jets Ltd., 2017-1, A, 144A, 3.967%, 8/15/42		Bermuda		325,995		251,002
m	SLM Private Credit Student Loan Trust, 2003-B, A3, FRN, 2.806%, (28-Day T-Bill + 1.00%), 3/15/33		United States		150,000		146,838
m	Soundview Home Loan Trust, 2006-WF2, M3, FRN, 4.719%, (1-Month USD LIBOR + 0.68%), 12/25/36		United States		1,749,083		2,200,133
e	Stack Infrastructure Issuer LLC, 2019-1A, A2, 144A, 4.54%, 2/25/44		United States		120,313		117,538
e,m	Starwood Retail Property Trust, 2014-STAR, E, 144A, FRN, 8.276%, (1-Month USD LIBOR + 4.40%), 11/15/27		United States		200,000		875
e,q	Towd Point Mortgage Trust, 2018-5, M1, 144A, FRN, 3.25%, 7/25/58		United States		100,000		74,210
e	VCAT LLC, 144A, 2021-NPL1, A1, 2.289%, 12/26/50		United States		43,789		41,980
	2021-NPL5, A1, 1.868%, 8/25/51		United States		77,457		70,420
e,m	VMC Finance LLC, 144A, FRN, 2019-FL3, C, 5.961%, (1-Month USD LIBOR + 2.05%), 9/15/36		United States		880,961		838,561
	2019-FL3, D, 6.561%, (1-Month USD LIBOR + 2.65%), 9/15/36		United States		880,961		818,921
	2021-FL4, C, 6.189%, (1-Month USD LIBOR + 2.25%), 6/16/36		United States		1,000,000		973,873
e,q	WaMu Commercial Mortgage Securities Trust, 2007-SL2, G, 144A, FRN, 3.039%, 12/27/49		United States		2,866,082		2,395,121
e	Wave Trust, 2017-1A, A, 144A, 3.844%, 11/15/42		United States		158,141		119,447

50 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*		Value
	Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)
	Diversified Financial Services (continued)
q	Wells Fargo Mortgage Backed Securities Trust, 2007-AR6, A2, FRN, 4.243%, 10/25/37		United States		105,498	$	92,531
							29,957,863
	Equity Real Estate Investment Trusts (REITs) 0.0%†
e	Diamond Resorts Owner Trust, 144A, 2018-1, C, 4.53%, 1/21/31		United States		24,620		24,049
	2019-1A, B, 3.53%, 2/20/32		United States		22,862		22,233
							46,282
	Mortgage Real Estate Investment Trusts (REITs) 1.9%
e	510 Asset Backed Trust, 2021-NPL1, A1, 144A, 2.24%, 6/25/61		United States		108,530		100,646
m	American Home Mortgage Investment Trust, 2006-1, 11A1, FRN, 4.324%, (1-Month USD LIBOR + 0.28%), 3/25/46		United States		122,319		102,648
	Banc of America Alternative Loan Trust, 2003-8, 1CB1, 5.50%, 10/25/33		United States		2,878		2,726
	Banc of America Funding Trust, 2003-1, B2, 6.00%, 5/20/33		United States		109,737		72,418
	2005-8, 1A1, 5.50%, 1/25/36		United States		261,079		208,693
	2007-4, 5A1, 5.50%, 11/25/34		United States		29,235		25,821
q	Banc of America Mortgage Trust, 2005-A, 2A1, FRN, 2.542%, 2/25/35		United States		2,074		1,971
e,m	BCAP LLC Trust, 2012-RR4, 9A7, 144A, FRN, 3.298%, (1-Month USD LIBOR + 0.08%), 11/26/36		United States		317,854		300,856
q	Bear Stearns ARM Trust, 2007-4, 12A1, FRN, 3.231%, 5/25/37		United States		931,406		850,386
e,m	BPR Trust, 2021-NRD, F, 144A, FRN, 10.681%, (SOFR + 6.87%), 12/15/23		United States		140,000		128,076
e,m	BXMT Ltd., 144A, FRN, 2020-FL2, D, 5.939%, (SOFR + 2.06%), 2/15/38		United States		1,350,000		1,310,581
	2021-FL4, C, 5.625%, (1-Month USD LIBOR + 1.75%), 5/15/38		United States		2,500,000		2,340,395
e	CIM Trust, 2021-NR2, A1, 144A, 2.568%, 7/25/59		United States		126,723		116,040
e,q	Citigroup Commercial Mortgage Trust, 2014-GC21, D, 144A, FRN, 5.11%, 5/10/47		United States		330,000		294,234
e,q	Citigroup Mortgage Loan Trust, 2009-10, 6A2, 144A, FRN, 4.019%, 9/25/34		United States		18,491		17,962
	Countrywide Alternative Loan Trust, 2003-22CB, 1A1, 5.75%, 12/25/33		United States		23,070		22,360
	2004-16CB, 1A1, 5.50%, 7/25/34		United States		10,742		10,229
	2004-16CB, 3A1, 5.50%, 8/25/34		United States		10,407		9,981
	2004-28CB, 3A1, 6.00%, 1/25/35		United States		174,879		154,124
	2004-3T1, M, 6.00%, 5/25/34		United States		186,043		124,391
	2004-J10, 2CB1, 6.00%, 9/25/34		United States		28,680		27,302
	2005-J1, 2A1, 5.50%, 2/25/25		United States		951		917
	2006-25CB, A1, 6.00%, 10/25/36		United States		1,597,404		902,989
q	Countrywide Home Loans Mortgage Pass-Through Trust, 2004-HYB4, 2A1, FRN, 3.894%, 9/20/34		United States		33,868		30,294
	Credit Suisse First Boston Mortgage Securities Corp., 2002-10, 1B, 7.50%, 5/25/32		United States		148,824		111,015
	2003-27, 4A4, 5.75%, 11/25/33		United States		11,091		10,708
	2005-8, 1A3, 5.25%, 9/25/35		United States		78,453		64,283
e	CSMC OA LLC, 2014-USA, E, 144A, 4.373%, 9/15/37		United States		400,000		266,630
m	DSLA Mortgage Loan Trust, 2005-AR5, 2A1A, FRN, 4.599%, (1-Month USD LIBOR + 0.66%), 9/19/45		United States		27,453		17,243
e,m	Federal Home Loan Mortgage Corp., 2021-DNA6, B1, 144A, FRN, 6.947%, (SOFR + 3.40%), 10/25/41		United States		98,429		88,723
e,m	FHLMC, 144A, FRN, 2021-DNA5, B2, 9.021%, (SOFR + 5.50%), 1/25/34		United States		1,500,000		1,164,561
	2021-HQA1, B2, 8.521%, (SOFR + 5.00%), 8/25/33		United States		1,000,000		760,961

franklintempleton.com Semiannual Report 51

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*		Value
	Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)
	Mortgage Real Estate Investment Trusts (REITs) (continued)
q	GS Mortgage Securities Trust, FRN, e 2011-GC5, C, 144A, 5.299%, 8/10/44		United States		100,000	$	78,107
	e 2011-GC5, D, 144A, 5.299%, 8/10/44		United States		195,000		83,319
	2014-GC18, B, 4.885%, 1/10/47		United States		100,000		91,659
	GSR Mortgage Loan Trust, 2005-4F, 6A1, 6.50%, 2/25/35		United States		7,093		6,623
	q 2005-AR6, 4A5, FRN, 4.144%, 9/25/35		United States		20,929		19,058
m	Harborview Mortgage Loan Trust, 2004-11, 2A2A, FRN, 4.579%, (1-Month USD LIBOR + 0.64%), 1/19/35		United States		58,363		48,102
	IndyMac INDX Mortgage Loan Trust, FRN, q 2004-AR15, B1, 2.874%, 2/25/35		United States		1,439,275		1,089,560
	m 2004-AR7, A5, 5.264%, (1-Month USD LIBOR + 1.22%), 9/25/34		United States		29,283		25,160
	q 2005-AR11, A3, 3.185%, 8/25/35		United States		34,120		27,254
	m 2006-AR2, 2A1, 4.464%, (1-Month USD LIBOR + 0.42%), 2/25/46		United States		151,152		106,193
	q 2006-AR3, 3A1A, 3.106%, 4/25/36		United States		1,532,999		1,247,361
e,q	Jefferies Resecuritization Trust, 2009-R12, 2A2, 144A, FRN, 2.574%, 1/26/35		United States		121,878		115,686
	JPMorgan Mortgage Trust, 2004-S1, 2A1, 6.00%, 9/25/34		United States		49,029		46,857
	q 2006-A3, 2B1, FRN, 3.637%, 4/25/35		United States		1,752,064		1,116,545
	q 2007-A1, 4A2, FRN, 3.94%, 7/25/35		United States		837		815
	e,q 2020-2, B4, 144A, FRN, 3.823%, 7/25/50		United States		965,029		757,410
m	Lehman XS Trust, 2006-2N, 1A1, FRN, 4.564%, (1-Month USD LIBOR + 0.52%), 2/25/46		United States		24,594		21,169
	MASTR Alternative Loan Trust, 2004-2, 8A4, 5.50%, 3/25/34		United States		100,271		87,003
	2004-8, 2A1, 6.00%, 9/25/34		United States		21,408		20,253
q	Merrill Lynch Mortgage Backed Securities Trust Series, 2007-3, 3A1, FRN, 3.448%, 6/25/37		United States		1,990,163		1,262,467
q	Merrill Lynch Mortgage Investors MLCC, 2006-2, 2A, FRN, 3.574%, 5/25/36		United States		1,056		1,019
q	Morgan Stanley Bank of America Merrill Lynch Trust, 2013-C11, B, FRN, 4.545%, 8/15/46		United States		200,000		143,405
e,q	Morgan Stanley Capital I Trust, 2011-C2, E, 144A, FRN, 5.385%, 6/15/44		United States		150,000		120,354
e,q	MSBAM Commercial Mortgage Securities Trust, 2012-CKSV, C, 144A, FRN, 4.423%, 10/15/30		United States		340,000		249,964
e,q	PRPM LLC, 2021-2, A2, 144A, FRN, 3.77%, 3/25/26		United States		130,000		111,050
q	RFMSI Trust, 2005-SA1, 1A1, FRN, 3.692%, 3/25/35		United States		77,905		41,757
q	Structured Adjustable Rate Mortgage Loan Trust Series, 2006-8, 1A2, FRN, 3.639%, 9/25/36		United States		154,529		103,864
m	Structured ARM Loan Trust, 2005-14, A1, FRN, 4.354%, (1-Month USD LIBOR + 0.31%), 7/25/35		United States		153,127		97,993
e	Toorak Mortgage Corp. Ltd., 2021-1, A1, 144A, 2.24%, 6/25/24		United States		190,000		179,303
e	VOLT XCII LLC, 2021-NPL1, A1, 144A, 1.893%, 2/27/51		United States		87,846		78,229
e	VOLT XCIV LLC, 2021-NPL3, A2, 144A, 4.949%, 2/27/51		United States		215,000		182,204
m	WaMu Mortgage Pass-Through Certificates Series Trust, 2005-AR11, B1, FRN, 4.959%, (1-Month USD LIBOR + 0.92%), 8/25/45		United States		2,173,736		1,729,463
	Wells Fargo Commercial Mortgage Trust, q 2013-LC12, B, FRN, 4.431%, 7/15/46		United States		190,000		179,564
	2014-LC16, C, 4.458%, 8/15/50		United States		215,000		135,715
	q 2016-C36, B, FRN, 3.671%, 11/15/59		United States		100,000		84,407
	q 2016-C36, C, FRN, 4.272%, 11/15/59		United States		100,000		77,580
q	WFRBS Commercial Mortgage Trust, FRN, e 2011-C3, D, 144A, 5.42%, 3/15/44		United States		199,819		83,924

52 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*		Value
	Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)
	Mortgage Real Estate Investment Trusts (REITs) (continued)
q	WFRBS Commercial Mortgage Trust, FRN, (continued)
	e 2011-C4, E, 144A, 4.988%, 6/15/44		United States		120,000	$	96,612
	2012-C7, C, 4.806%, 6/15/45		United States		20,674		15,027
	e 2012-C7, D, 144A, 4.806%, 6/15/45		United States		130,000		53,300
	e 2012-C7, E, 144A, 4.806%, 6/15/45		United States		72,385		5,807
	q 2014-C24, B, 4.204%, 11/15/47		United States		100,000		90,903
							19,752,209
	Total Asset-Backed Securities and Commercial Mortgage-Backed Securities (Cost $54,570,739)						49,756,354
		Number of Contracts		Notional Amount#
	Options Purchased 0.3%
	Calls – Exchange-Traded 0.1%
	3 Month EURIBOR, December Strike Price 97.88 EUR, Expires 12/16/22		40		9,704,500		260
	3 Month EURIBOR, December Strike Price 98.63 EUR, Expires 12/19/22		50		12,228,125		—
	3 Month EURIBOR, December Strike Price 99.88 EUR, Expires 12/19/22		80		19,565,000		—
	3 Month EURIBOR, March Strike Price 98.50 EUR, Expires 3/10/23		80		19,428,000		3,642
	3 Month SOFR, December Strike Price $98.19, Expires 12/16/22		89		21,239,850		556
	Alibaba Group Holding Ltd., January Strike Price $90.00, Expires 1/20/23		35		306,460		24,675
	Arrival SA, December Strike Price $1.50, Expires 12/16/22		66		2,104		198
	Carvana Co., December Strike Price $20.00, Expires 12/16/22		126		97,146		504
	Carvana Co., March Strike Price $20.00, Expires 3/17/23		63		48,573		3,024
	CBOE Volatility Index, December Strike Price $27.00, Expires 12/21/22		161		331,338		10,948
	CBOE Volatility Index, December Strike Price $30.00, Expires 12/21/22		758		1,559,964		32,594
	CBOE Volatility Index, January Strike Price $27.00, Expires 1/18/23		50		102,900		9,200
	CBOE Volatility Index, January Strike Price $28.00, Expires 1/18/23		46		94,668		7,728
	CBOE Volatility Index, January Strike Price $29.00, Expires 1/18/23		100		205,800		14,600
	CBOE Volatility Index, February Strike Price $28.00, Expires 2/15/23		46		94,668		10,994
	Cinemark Holdings Inc., December Strike Price $15.00, Expires 12/16/22		26		35,386		546
	Cinemark Holdings Inc., January Strike Price $15.00, Expires 1/20/23		45		61,245		2,925
	Coupa Software Inc., December Strike Price $75.00, Expires 12/16/22		5		31,620		675
	Crown Holdings Inc., April Strike Price $75.00, Expires 4/21/23		37		304,177		44,770
	E-mini S&P 500, December Strike Price $4,100.00, Expires 12/16/22		2		408,125		6,225
	E-mini S&P 500, December Strike Price $4,400.00, Expires 12/16/22		2		408,125		185
	E-mini S&P 500, March Strike Price $4,200.00, Expires 3/17/23		1		205,763		6,913
	Eurodollar 1 Yr., December Strike Price $96.63, Expires 12/16/22		40		9,532,000		500
	Flex Ltd., January Strike Price $19.00, Expires 1/20/23		491		1,079,218		157,120
	Gol Linhas Aereas Inteligentes SA, January Strike Price $5.00, Expires 1/20/23		65		21,385		455
	The Greenbrier Cos. Inc., December Strike Price $40.00, Expires 12/16/22		15		57,585		945
	Helix Energy Solutions Group Inc., December Strike Price $5.00, Expires 12/16/22		90		57,420		12,600
	IMM Eurodollar, June Strike Price $95.50, Expires 6/19/23		20		4,741,500		5,875
	IMM Eurodollar, June Strike Price $96.50, Expires 6/19/23		20		4,741,500		1,875
	iShares 20+ Year Treasury Bond ETF, January Strike Price $102.00, Expires 1/20/23		105		1,078,665		33,075

franklintempleton.com Semiannual Report 53

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Number of Contracts		Notional Amount#		Value
Options Purchased (continued)
Calls – Exchange-Traded (continued)
iShares 20+ Year Treasury Bond ETF, January Strike Price $105.00, Expires 1/20/23		426		4,376,298	$	76,680
iShares China Large-Cap ETF, December Strike Price $27.00, Expires 12/16/22		2,237		6,299,392		348,972
JD.com Inc., December Strike Price $67.50, Expires 12/16/22		70		400,260		6,650
Magnachip Semiconductor Corp., December Strike Price $17.50, Expires 12/16/22		142		143,704		2,130
Marvell Technology Inc., December Strike Price $50.00, Expires 12/16/22		95		441,940		12,255
Meta Platforms Inc., March Strike Price $150.00, Expires 3/17/23		133		1,570,730		47,215
Okta Inc., December Strike Price $55.00, Expires 12/09/22		8		42,656		3,136
Repay Holdings Corp., December Strike Price $12.50, Expires 12/16/22		33		29,238		825
S&P 500 Index, December Strike Price $4,100.00, Expires 12/30/22		14		5,712,154		117,866
S&P 500 Index, December Strike Price $4,150.00, Expires 12/30/22		1		408,011		6,060
S&P 500 Index, December Strike Price $4,200.00, Expires 12/30/22		32		13,056,352		129,600
Sirius XM Holdings Inc., December Strike Price $6.75, Expires 12/16/22		139		90,211		1,390
Sirius XM Holdings Inc., January Strike Price $6.75, Expires 1/20/23		26		16,874		338
Snowflake Inc., December Strike Price $170.00, Expires 12/02/22		14		200,060		2,310
Snowflake Inc., December Strike Price $175.00, Expires 12/02/22		13		185,770		1,495
SPDR S&P Oil & Gas Exploration & Production ETF, January Strike Price $160.00, Expires 1/20/23		75		1,140,900		44,625
Transocean Ltd., December Strike Price $4.00, Expires 12/16/22		500		212,500		18,000
Transocean Ltd., December Strike Price $4.50, Expires 12/16/22		518		220,150		6,216
U.S. Treasury 5 Yr. Note, December Strike Price $109.00, Expires 12/23/22		20		2,171,400		8,906
VanEck Semiconductor ETF, December Strike Price $220.00, Expires 12/02/22		29		660,417		23,780
Vodafone Group PLC, January Strike Price $12.00, Expires 1/20/23		78		87,594		1,560
Vodafone Group PLC, January Strike Price $13.00, Expires 1/20/23		76		85,348		608
Vodafone Group PLC, January Strike Price $14.00, Expires 1/20/23		79		88,717		237
Vodafone Group PLC, January Strike Price $16.00, Expires 1/20/23		192		215,616		384
Workiva Inc., January Strike Price $80.00, Expires 1/20/23		77		620,312		50,204
						1,305,049
Calls – Over-the-Counter 0.0%†
JD.com Inc., Counterparty GSCO, January Strike Price $55.00, Expires 1/20/23		35		200,130		25,550
S&P ASX 200 Index, Counterparty JPHQ, December Strike Price 7,196.00 AUD, Expires 12/23/22		427		1,767,631		45,896
S&P ASX 200 Index, Counterparty JPHQ, December Strike Price 7,258.00 AUD, Expires 12/28/22		203		840,349		17,373
						88,819
Currency Options 0.0%†
USD/INR, Counterparty JPHQ, March Strike Price 84.00 INR, Expires 3/15/23		1		600,000		3,247
USD/INR, Counterparty JPHQ, March Strike Price 86.00 INR, Expires 3/15/23		1		2,400,000		6,111
USD/JPY, Counterparty JPHQ, December Strike Price 147.00 JPY, Expires 12/21/22		1		2,000,000		903
USD/PHP, Counterparty JPHQ, March Strike Price 60.00 PHP, Expires 3/15/23		1		1,300,000		3,290
						13,551
Puts – Exchange-Traded 0.2%
1 Year SOFR, December Strike Price $94.88, Expires 12/16/22		54		12,903,300		675
1 Year SOFR, December Strike Price $95.38, Expires 12/16/22		54		12,903,300		9,113

54 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Number of Contracts		Notional Amount#		Value
Options Purchased (continued)
Puts – Exchange-Traded (continued)
3 Month EURIBOR, December Strike Price 98.38 EUR, Expires 12/19/22		18		4,402,125	$	25,755
3 Month EURIBOR, December Strike Price 98.63 EUR, Expires 12/19/22		4		978,250		8,325
3 Month EURIBOR, December Strike Price 100.13 EUR, Expires 12/19/22		40		9,782,500		239,338
3 Month SOFR, December Strike Price $94.75, Expires 12/16/22		96		22,910,400		600
3 Month SOFR, December Strike Price $95.25, Expires 12/16/22		96		22,910,400		1,200
8x8 Inc., January Strike Price $2.50, Expires 1/20/23		72		30,816		900
Activision Blizzard Inc., January Strike Price $70.00, Expires 1/19/24		389		2,876,655		268,410
Activision Blizzard Inc., January Strike Price $75.00, Expires 1/19/24		53		391,935		47,435
American Airlines Group Inc., January Strike Price $10.00, Expires 1/20/23		40		57,720		440
American Airlines Group Inc., January Strike Price $13.00, Expires 1/20/23		43		62,049		2,193
Amyris Inc., December Strike Price $1.50, Expires 12/16/22		3		519		45
Amyris Inc., January Strike Price $2.00, Expires 1/20/23		87		15,051		4,785
ARK Innovation ETF, December Strike Price $34.00, Expires 12/16/22		178		667,144		10,502
Atlas Corp., January Strike Price $12.50, Expires 1/20/23		144		221,328		2,160
Blackstone Inc., February Strike Price $85.00, Expires 2/17/23		132		1,208,196		65,076
CBOE Volatility Index, December Strike Price $27.00, Expires 12/21/22		304		625,632		168,720
CBOE Volatility Index, January Strike Price $27.00, Expires 1/18/23		93		191,394		39,525
Danimer Scientific Inc., January Strike Price $2.50, Expires 1/20/23		70		18,620		2,450
Deere & Co., December Strike Price $310.00, Expires 12/16/22		29		1,278,900		145
Deere & Co., March Strike Price $300.00, Expires 3/17/23		18		793,800		3,708
Dick’s Sporting Good Inc., December Strike Price $85.00, Expires 12/16/22		115		1,375,170		1,150
Dick’s Sporting Good Inc., March Strike Price $70.00, Expires 3/17/23		50		597,900		5,350
E-mini S&P 500, December Strike Price $3,900.00, Expires 12/16/22		2		408,125		1,875
E-mini S&P 500, March Strike Price $2,600.00, Expires 3/17/23		13		2,674,913		3,575
E-mini S&P 500, March Strike Price $2,800.00, Expires 3/17/23		1		205,763		387
E-mini S&P 500, March Strike Price $3,600.00, Expires 3/17/23		13		2,674,913		33,312
Euro-Bund, December Strike Price 141.00 EUR, Expires 12/23/22		10		1,402,300		19,875
Euro-Bund, February Strike Price 138.00 EUR, Expires 2/24/23		10		1,402,300		20,916
Eurodollar 1 Yr., December Strike Price $94.50, Expires 12/16/22		30		7,149,000		188
Eurodollar 1 Yr., June Strike Price $95.00, Expires 6/16/23		40		9,612,500		10,750
Eurodollar 1 Yr., June Strike Price $96.00, Expires 6/16/23		40		9,612,500		40,500
Gol Linhas Aereas Inteligentes SA, January Strike Price $3.00, Expires 1/20/23		346		113,834		8,650
Gossamer Bio Inc., December Strike Price $7.50, Expires 12/16/22		16		13,696		4,720
Hollysys Automation Technologies Ltd., January Strike Price $15.00, Expires 1/20/23		531		908,010		42,480
Horizon Therapeutics PLC, January Strike Price $80.00, Expires 1/20/23		164		1,644,756		36,900
Horizon Therapeutics PLC, February Strike Price $85.00, Expires 2/17/23		164		1,644,756		82,000
HubSpot Inc., December Strike Price $260.00, Expires 12/16/22		15		454,545		5,250
IMM Eurodollar, December Strike Price $96.00, Expires 12/19/22		17		4,041,856		38,144
IMM Eurodollar, December Strike Price $97.50, Expires 12/19/22		17		4,041,856		101,894
IMM Eurodollar, June Strike Price $94.63, Expires 6/19/23		40		9,483,000		22,750
iShares Expanded Tech-Software Sector ETF, December Strike Price $255.00, Expires 12/16/22		32		870,048		10,560
iShares iBoxx High Yield Corporate Bond ETF, December Strike Price $68.00, Expires 12/16/22		4,000		30,264,000		16,000
iShares iBoxx High Yield Corporate Bond ETF, January Strike Price $61.00, Expires 1/20/23		776		5,871,216		4,656
JB Hunt Transport Services Inc., January Strike Price $165.00, Expires 1/20/23		65		1,195,285		22,750

franklintempleton.com Semiannual Report 55

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Number of Contracts		Notional Amount#			Value
Options Purchased (continued)
Puts – Exchange-Traded (continued)
Marvell Technology Inc., December Strike Price $38.00, Expires 12/02/22		98		455,896		$	882
Russell 2000 Index, December Strike Price $1,550.00, Expires 12/01/22		1		188,658			8
S&P 500 Index, March Strike Price $3,445.00, Expires 3/31/23		15		6,120,165			60,600
Shaw Communications Inc., December Strike Price $25.00, Expires 12/16/22		378		1,031,562			1,890
Shaw Communications Inc., December Strike Price 31.00 CAD, Expires 12/16/22		105		385,455			4,605
Shift Technologies Inc., January Strike Price $2.50, Expires 1/20/23		16		444			3,760
Shift Technologies Inc., February Strike Price $2.50, Expires 2/17/23		81		2,248			18,832
SPDR S&P 500 ETF Trust, December Strike Price $365.00, Expires 12/16/22		38		1,549,184			1,216
Tenneco Inc., January Strike Price $12.00, Expires 1/20/23		488		975,512			2,440
Tesla Inc., April Strike Price $100.00, Expires 4/21/23		132		2,570,040			35,508
Turquoise Hill Resources Ltd., December Strike Price $27.00, Expires 12/16/22		97		305,259			970
Turquoise Hill Resources Ltd., January Strike Price $27.00, Expires 1/20/23		9		28,323			270
U.S. Treasury 10 Yr. Note, December Strike Price $108.00, Expires 12/23/22		20		2,270,000			313
U.S. Treasury 10 Yr. Note, December Strike Price $113.00, Expires 12/23/22		10		1,135,000			7,031
U.S. Treasury 5 Yr. Note, December Strike Price $107.00, Expires 12/23/22		73		7,925,610			10,836
U.S. Treasury 5 Yr. Note, February Strike Price $107.50, Expires 2/24/23		20		2,171,400			14,063
Upstart Holdings Inc., March Strike Price $10.00, Expires 3/17/23		133		260,015			13,433
UserTesting Inc., December Strike Price $7.50, Expires 12/16/22		66		48,972			825
UserTesting Inc., February Strike Price $7.50, Expires 2/17/23		608		451,136			62,320
Vnet Group Inc., January Strike Price $5.00, Expires 1/20/23		408		204,408			24,480
Vodafone Group PLC, January Strike Price 0.95 GBP, Expires 1/20/23		1,166		107,085,440			77,293
Vodafone Group PLC, March Strike Price 0.95 GBP, Expires 3/17/23		1,519		139,504,960			132,731
							1,910,438
Puts – Over-the-Counter 0.0%†
DJ EURO STOXX 50 Index, Counterparty BZWS, December Strike Price 3,450.00 EUR, Expires 12/16/22		21		832,591			568
DJ EURO STOXX 50 Index, Counterparty BZWS, December Strike Price 3,750.00 EUR, Expires 12/16/22		26		1,030,827			3,490
H & M Hennes & Mauritz AB, Counterparty CITI, December Strike Price 114.00 SEK, Expires 12/16/22		81		944,946			2,354
H & M Hennes & Mauritz AB, Counterparty CITI, March Strike Price 100.00 SEK, Expires 3/17/23		109		1,271,594			3,322
S&P ASX 200 Index, Counterparty JPHQ, December Strike Price 7,196.00 AUD, Expires 12/23/22		427		1,767,631			16,608
S&P ASX 200 Index, Counterparty JPHQ, December Strike Price 7,258.00 AUD, Expires 12/28/22		203		840,349			11,567
Softbank Group, Counterparty GSCO, March Strike Price 4,540.00 JPY, Expires 3/09/23		5,531		32,920,512			3,551
							41,460
Currency Options 0.0%†
AUD/USD, Counterparty JPHQ, March Strike Price $0.64, Expires 3/15/23		1		4,000,000	AUD		23,930
EUR/SGD, Counterparty JPHQ, March Strike Price 1.35 SGD, Expires 3/15/23		1		2,400,000	EUR		5,349

56 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Number of Contracts		Notional Amount#			Value
	Options Purchased (continued)
	Currency Options (continued)†
	GBP/USD, Counterparty JPHQ, March Strike Price $1.14, Expires 3/15/23		1		2,000,000	GBP	$	20,866
	USD/JPY, Counterparty GSCO, March Strike Price 126.00 JPY, Expires 3/14/23		1		6,306,000			37,594
								87,739
	Total Options Purchased (Cost $4,456,270)							3,447,056
	Total Investments before Short Term Investments (Cost $751,934,292)							782,131,275
		Country		Shares
	Short Term Investments 15.7%
	Money Market Funds 15.2%
r,s	Dreyfus Government Cash Management, Institutional, 3.62%		United States		57,486,267			57,486,267
r	Fidelity Investments Money Market Government Portfolio, Institutional, 3.58%		United States		97,303,407			97,303,407
	Total Money Market Funds (Cost $154,789,674)							154,789,674
t	Investments from Cash Collateral Received for Loaned Securities 0.4%
	Money Market Funds 0.3%
r,u	Institutional Fiduciary Trust Money Market Portfolio, 3.446%		United States		2,661,000			2,661,000
				Principal Amount*
	Repurchase Agreements 0.1%
v	Joint Repurchase Agreement, 3.79%, 12/01/22 (Maturity Value $646,953)		United States		646,885			646,885
	J.P. Morgan Securities LLC Collateralized by U.S. Government Agency Obligations, 0.00%-4.37%, 7/31/23-7/31/24 (valued at $659,823)
	Total Investments from Cash Collateral Received for Loaned Securities (Cost $3,307,885)							3,307,885
	U.S. Government and Agency Securities (Cost $1,365,000) 0.1%
w	Federal Home Loan Bank Discount Notes, 12/01/22		United States		1,365,000			1,365,000
	Total Investments (Cost $911,396,851) 92.6%							941,593,834
	Options Written (0.2)%							(2,343,346	)
	Securities Sold Short (22.0)%							(223,678,274	)
	Other Assets, less Liabilities 29.6%							300,984,662
	Net Assets 100.0%						$	1,016,556,876
		Number of Contracts		Notional Amount#
x	Options Written (0.2)%
	Calls – Exchange-Traded (0.2)%
	3 Month EURIBOR, December Strike Price 98.38 EUR, Expires 12/16/22		60		14,556,750			—
	3 Month EURIBOR, December Strike Price 99.00 EUR, Expires 12/19/22		100		24,456,250			—
	3 Month EURIBOR, December Strike Price 99.63 EUR, Expires 12/19/22		40		9,782,500			—
	3 Month EURIBOR, December Strike Price 100.13 EUR, Expires 12/19/22		40		9,782,500			—

franklintempleton.com Semiannual Report 57

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Number of Contracts		Notional Amount#		Value
x	Options Written (continued)
	Calls – Exchange-Traded (continued)
	3 Month EURIBOR, March Strike Price 99.00 EUR, Expires 3/10/23		80		19,428,000	$	(1,041	)
	Activision Blizzard Inc., June Strike Price $90.00, Expires 6/16/23		447		3,305,565		(74,649	)
	Biohaven Pharmaceutical Holding Co. Ltd., December Strike Price $150.00, Expires 12/16/22		29		220,110		(8,990	)
	CME 3-Month SOFR Futures, December Strike Price $98.50, Expires 12/16/22		89		21,239,850		(556	)
	CME 3-Month SOFR Futures, December Strike Price $98.88, Expires 12/16/22		89		21,239,850		(556	)
	The Coca-Cola Co., December Strike Price $62.50, Expires 12/16/22		1		6,361		(164	)
	Crown Holdings Inc., April Strike Price $95.00, Expires 4/21/23		37		304,177		(9,805	)
	E-mini S&P 500, December Strike Price $4,250.00, Expires 12/16/22		4		816,250		(2,750	)
	E-mini S&P 500, March Strike Price $4,000.00, Expires 3/17/23		1		205,763		(12,713	)
	Eurodollar 1 Yr., December Strike Price $97.19, Expires 12/16/22		60		14,298,000		(750	)
	IMM Eurodollar, June Strike Price $96.00, Expires 6/19/23		40		9,483,000		(6,500	)
	iShares 20+ Year Treasury Bond ETF, January Strike Price $110.00, Expires 1/20/23		317		3,256,541		(23,141	)
	iShares 20+ Year Treasury Bond ETF, January Strike Price $115.00, Expires 1/20/23		426		4,376,298		(12,354	)
	iShares iBoxx High Yield Corporate Bond ETF, December Strike Price $74.00, Expires 12/16/22		4,000		30,264,000		(644,000	)
	Magnachip Semiconductor Corp., December Strike Price $22.50, Expires 12/16/22		142		143,704		(710	)
	Newmont Corp., December Strike Price $47.50, Expires 12/16/22		1		4,747		(121	)
	NextEra Energy Inc., December Strike Price $82.50, Expires 12/16/22		1		8,470		(320	)
	S&P 500 Index, December Strike Price $4,225.00, Expires 12/30/22		11		4,488,121		(35,695	)
	S&P 500 Index, December Strike Price $4,250.00, Expires 12/30/22		23		9,384,253		(58,995	)
	S&P 500 Index, December Strike Price $4,300.00, Expires 12/30/22		32		13,056,352		(49,984	)
	S&P 500 Index, March Strike Price $4,100.00, Expires 3/31/23		15		6,120,165		(230,835	)
	U.S. Treasury 5 Yr. Note, December Strike Price $110.00, Expires 12/23/22		20		2,171,400		(3,281	)
	The Williams Cos. Inc., December Strike Price $34.00, Expires 12/16/22		1		3,470		(100	)
	Workiva Inc., January Strike Price $90.00, Expires 1/20/23		77		620,312		(21,175	)
							(1,199,185	)
	Calls – Over-the-Counter (0.0)%†
	Currency Options (0.0)%†
	USD/INR, Counterparty JPHQ, March Strike Price 90.00 INR, Expires 3/15/23		1		600,000		(455	)
	USD/INR, Counterparty JPHQ, March Strike Price 95.00 INR, Expires 3/15/23		1		2,400,000		(583	)
							(1,038	)
	Puts – Exchange-Traded (0.0)%†
	1 Year SOFR, December Strike Price $95.13, Expires 12/16/22		108		25,806,600		(5,400	)
	3 Month EURIBOR, December Strike Price 98.88 EUR, Expires 12/19/22		22		5,380,375		(60,095	)
	3 Month EURIBOR, December Strike Price 99.25 EUR, Expires 12/19/22		20		4,891,250		(74,143	)
	3 Month EURIBOR, December Strike Price 99.88 EUR, Expires 12/19/22		39		9,537,938		(207,990	)
	3 Month SOFR, December Strike Price $95.00, Expires 12/16/22		192		45,820,800		(1,200	)
	Activision Blizzard Inc., January Strike Price $55.00, Expires 1/19/24		53		391,935		(12,190	)
	Activision Blizzard Inc., January Strike Price $60.00, Expires 1/19/24		389		2,876,655		(155,600	)
	Blackstone Inc., February Strike Price $75.00, Expires 2/17/23		132		1,208,196		(29,304	)
	Coupa Software Inc., December Strike Price $60.00, Expires 12/16/22		5		31,620		(1,950	)
	Crown Holdings Inc., April Strike Price $70.00, Expires 4/21/23		37		304,177		(9,435	)
	E-mini S&P 500, December Strike Price $3,700.00, Expires 12/16/22		4		816,250		(740	)
	E-mini S&P 500, March Strike Price $3,000.00, Expires 3/17/23		13		2,674,913		(7,312	)
	E-mini S&P 500, March Strike Price $3,200.00, Expires 3/17/23		13		2,674,913		(11,537	)

58 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Number of Contracts		Notional Amount#			Value
x	Options Written (continued)
	Puts – Exchange-Traded (continued)†
	Euro-Bund, December Strike Price 138.00 EUR, Expires 12/23/22		15		2,103,450		$	(10,146	)
	Euro-Bund, February Strike Price 134.00 EUR, Expires 2/24/23		15		2,103,450			(14,204	)
	Eurodollar 1 Yr., December Strike Price $94.75, Expires 12/16/22		30		7,149,000			(750	)
	Eurodollar 1 Yr., June Strike Price $95.50, Expires 6/16/23		80		19,225,000			(43,500	)
	Gossamer Bio Inc., December Strike Price $12.50, Expires 12/16/22		16		13,696			(11,440	)
	Horizon Therapeutics PLC, January Strike Price $85.00, Expires 1/20/23		164		1,644,756			(52,480	)
	Horizon Therapeutics PLC, February Strike Price $80.00, Expires 2/17/23		164		1,644,756			(45,920	)
	IMM Eurodollar, December Strike Price $96.50, Expires 12/19/22		32		7,608,200			(111,800	)
	IMM Eurodollar, June Strike Price $94.13, Expires 6/19/23		60		14,224,500			(11,625	)
	iShares 20+ Year Treasury Bond ETF, January Strike Price $96.00, Expires 1/20/23		74		760,202			(6,512	)
	iShares 20+ Year Treasury Bond ETF, January Strike Price $97.00, Expires 1/20/23		404		4,150,292			(42,824	)
	iShares iBoxx High Yield Corporate Bond ETF, December Strike Price $63.00, Expires 12/16/22		4,000		30,264,000			(8,000	)
	Manchester United PLC, January Strike Price $18.00, Expires 1/20/23		39		86,190			(2,340	)
	Manchester United PLC, January Strike Price $19.00, Expires 1/20/23		146		322,660			(13,140	)
	S&P 500 Index, December Strike Price $3,600.00, Expires 12/30/22		34		13,872,374			(18,700	)
	S&P 500 Index, December Strike Price $3,700.00, Expires 12/30/22		34		13,872,374			(30,940	)
	S&P 500 Index, December Strike Price $3,750.00, Expires 12/30/22		11		4,488,121			(13,618	)
	Sirius XM Holdings Inc., January Strike Price $6.75, Expires 1/20/23		348		225,852			(18,270	)
	U.S. Treasury 10 Yr. Note, December Strike Price $110.00, Expires 12/23/22		30		3,405,000			(2,344	)
	U.S. Treasury 5 Yr. Note, December Strike Price $105.00, Expires 12/23/22		24		2,605,680			(563	)
	U.S. Treasury 5 Yr. Note, February Strike Price $105.50, Expires 2/24/23		30		3,257,100			(7,500	)
	Vodafone Group PLC, January Strike Price 0.85 GBP, Expires 1/20/23		1,166		107,085,440			(14,053	)
	Vodafone Group PLC, January Strike Price $9.00, Expires 1/20/23		78		87,594			(312	)
	Vodafone Group PLC, January Strike Price $10.00, Expires 1/20/23		79		88,717			(790	)
	Vodafone Group PLC, January Strike Price $12.00, Expires 1/20/23		192		215,616			(20,352	)
	Vodafone Group PLC, March Strike Price 0.85 GBP, Expires 3/17/23		1,519		139,504,960			(45,769	)
								(1,124,788	)
	Puts – Over-the-Counter (0.0)%†
	DJ EURO STOXX 50 Index, Counterparty BZWS, December Strike Price 3,550.00 EUR, Expires 12/16/22		26		1,030,827			(1,055	)
	Currency Options (0.0)%†
	AUD/USD, Counterparty JPHQ, March Strike Price $0.60, Expires 3/15/23		1		4,000,000	AUD		(9,150	)
	EUR/SGD, Counterparty JPHQ, March Strike Price 1.29 SGD, Expires 3/15/23		1		2,400,000	EUR		(1,260	)
	GBP/USD, Counterparty JPHQ, March Strike Price $1.07, Expires 3/15/23		1		2,000,000	GBP		(6,870	)
								(17,280	)
	Total Options Written (Premiums Received $1,956,522)							(2,343,346	)
		Country		Shares
y	Securities Sold Short (22.0)%
	Common Stocks (9.1)%
	Aerospace & Defense (0.0)%†
	Virgin Galactic Holdings Inc.		United States		21,670			(110,300	)

franklintempleton.com Semiannual Report 59

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares		Value
y	Securities Sold Short (continued)
	Common Stocks (continued)
	Air Freight & Logistics (0.0)%†
	Zto Express Cayman Inc., ADR		China		5,908	$	(148,114	)
	Airlines (0.4)%
	American Airlines Group Inc.		United States		31,455		(453,896	)
	Cathay Pacific Airways Ltd.		Hong Kong		667,600		(693,960	)
	Copa Holdings SA, A		Panama		29,629		(2,596,389	)
	GOL Linhas Aereas Inteligentes SA, ADR		Brazil		20,675		(68,021	)
	Jetblue Airways Corp.		United States		7,949		(63,274	)
							(3,875,540	)
	Auto Components (0.0)%†
	Luminar Technologies Inc.		United States		18,210		(139,488	)
	Quantumscape Corp., A		United States		17,167		(128,581	)
							(268,069	)
	Automobiles (1.0)%
	Fisker Inc.		United States		33,390		(258,439	)
	Ford Motor Co.		United States		25,022		(347,806	)
	Li Auto Inc., ADR		China		36,364		(800,008	)
	Lucid Group Inc.		United States		124,957		(1,267,064	)
	Rivian Automotive Inc., A		United States		121,075		(3,879,243	)
	Tesla Inc.		United States		20,673		(4,025,033	)
							(10,577,593	)
	Banks (0.1)%
	SVB Financial Group		United States		2,499		(579,218	)
	Biotechnology (0.7)%
	Apellis Pharmaceuticals Inc.		United States		16,884		(843,018	)
	Avid Bioservices Inc.		United States		27,001		(422,836	)
	Biohaven Ltd.		United States		6,798		(107,544	)
	Coherus Biosciences Inc.		United States		34,107		(233,974	)
	Dynavax Technologies Corp.		United States		117,358		(1,456,413	)
	Gossamer Bio Inc.		United States		38,281		(327,685	)
	Halozyme Therapeutics Inc.		United States		3,302		(189,073	)
	Insmed Inc.		United States		29,688		(548,931	)
	Intercept Pharmaceuticals Inc.		United States		48,943		(729,740	)
	Ionis Pharmaceuticals Inc.		United States		2,330		(95,041	)
	Karyopharm Therapeutics Inc.		United States		28,434		(150,416	)
	Mannkind Corp.		United States		252,072		(1,179,697	)
	Pharming Group NV		Netherlands		106,214		(137,614	)
	Travere Therapeutics Inc.		United States		18,670		(375,827	)
							(6,797,809	)
	Capital Markets (0.3)%
	Ares Capital Corp.		United States		105,648		(2,075,983	)
	Coinbase Global Inc., A		United States		5,410		(247,400	)
	Owl Rock Capital Corp.		United States		99,475		(1,284,222	)
							(3,607,605	)
	Chemicals (0.3)%
	Albemarle Corp.		United States		5,077		(1,411,355	)
	Amyris Inc.		United States		74,336		(128,601	)
	Danimer Scientific Inc.		United States		25,184		(66,990	)
	Livent Corp.		United States		3,544		(99,197	)
	The Sherwin-Williams Co.		United States		5,074		(1,264,339	)
							(2,970,482	)
	Communications Equipment (0.0)%†
	Infinera Corp.		United States		18,356		(123,903	)

60 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares		Value
y	Securities Sold Short (continued)
	Common Stocks (continued)
	Construction & Engineering (0.1)%
	Granite Construction Inc.		United States		13,279	$	(478,309	)
	Mastec Inc.		United States		2,414		(219,264	)
							(697,573	)
	Consumer Finance (0.1)%
	EZCORP Inc., A		United States		73,314		(734,606	)
	PRA Group Inc.		United States		3,908		(134,357	)
							(868,963	)
	Diversified Telecommunication Services (0.1)%
	Bandwidth Inc., A		United States		2,335		(53,378	)
	Radius Global Infrastructure Inc., A		United States		19,010		(240,666	)
	TELUS Corp.		Canada		43,877		(934,199	)
							(1,228,243	)
	Electric Utilities (0.6)%
	American Electric Power Co. Inc.		United States		22,762		(2,203,362	)
	NRG Energy Inc.		United States		35,654		(1,513,512	)
	The Southern Co.		United States		35,511		(2,401,964	)
							(6,118,838	)
	Electrical Equipment (0.3)%
	Array Technologies Inc.		United States		25,061		(524,777	)
	Bloom Energy Corp., A		United States		58,344		(1,242,144	)
	Plug Power Inc.		United States		110,647		(1,765,926	)
							(3,532,847	)
	Electronic Equipment, Instruments & Components (0.3)%
	Coherent Corp.		United States		7,158		(262,484	)
	Jabil Inc.		United States		33,390		(2,410,424	)
	PAR Technology Corp.		United States		4,682		(114,101	)
	Vishay Intertechnology Inc.		United States		3,956		(91,146	)
							(2,878,155	)
	Energy Equipment & Services (0.1)%
	Helix Energy Solutions Group Inc.		United States		128,896		(822,357	)
	Entertainment (0.2)%
	Cinemark Holdings Inc.		United States		53,110		(722,827	)
	The Marcus Corp.		United States		56,286		(914,085	)
	Sea Ltd., ADR		Singapore		109		(6,362	)
							(1,643,274	)
	Equity Real Estate Investment Trusts (REITs) (0.1)%
	Braemar Hotels & Resorts Inc.		United States		59,557		(219,765	)
	Pebblebrook Hotel Trust		United States		29,809		(496,320	)
	Summit Hotel Properties Inc.		United States		15,462		(132,200	)
							(848,285	)
	Food & Staples Retailing (0.1)%
	The Chefs’ Warehouse Inc.		United States		25,098		(975,057	)
	Food Products (0.0)%†
	Post Holdings Inc.		United States		2,185		(204,538	)
	Gas Utilities (0.4)%
	Atmos Energy Corp.		United States		31,132		(3,742,066	)
	Health Care Equipment & Supplies (0.3)%
	Cutera Inc.		United States		29,025		(1,381,010	)
	NuVasive Inc.		United States		901		(34,995	)
	Orthofix Medical Inc.		United States		41,788		(751,766	)

franklintempleton.com Semiannual Report 61

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares		Value
y	Securities Sold Short (continued)
	Common Stocks (continued)
	Health Care Equipment & Supplies (continued)
	Varex Imaging Corp.		United States		40,855	$	(867,760	)
							(3,035,531	)
	Health Care Providers & Services (0.1)%
	PetIQ Inc., A		United States		12,350		(146,594	)
	Signify Health Inc., A		United States		14,861		(425,322	)
							(571,916	)
	Health Care Technology (0.1)%
	Evolent Health Inc., A		United States		14,804		(426,207	)
	Health Catalyst Inc.		United States		5,857		(61,381	)
	Nextgen Healthcare Inc.		United States		10,287		(213,970	)
							(701,558	)
	Hotels, Restaurants & Leisure (0.2)%
	Airbnb Inc., A		United States		219		(22,368	)
	Carnival Corp.		United States		24,476		(243,047	)
	Norwegian Cruise Line Holdings Ltd.		United States		26,532		(436,186	)
	Royal Caribbean Cruises Ltd.		United States		22,533		(1,350,403	)
							(2,052,004	)
	Household Durables (0.1)%
	iRobot Corp.		United States		11,301		(588,669	)
	Independent Power & Renewable Electricity Producers (0.0)%†
	Sunnova Energy International Inc.		United States		14,370		(328,067	)
	Interactive Media & Services (0.0)%†
	fuboTV Inc.		United States		1,017		(2,837	)
	Match Group Inc.		United States		4,087		(206,639	)
	Snap Inc., A		United States		10,164		(104,791	)
							(314,267	)
	Internet & Direct Marketing Retail (0.1)%
e	Delivery Hero SE, 144A		South Korea		3,753		(164,279	)
	Etsy Inc.		United States		647		(85,462	)
	Fiverr International Ltd.		Israel		245		(8,617	)
	Groupon Inc., A		United States		6,567		(54,703	)
e	Just Eat Takeaway.com NV, 144A		United Kingdom		1,677		(38,853	)
	Porch Group Inc.		United States		9,356		(19,086	)
	Wayfair Inc., A		United States		9,908		(363,029	)
	Xometry Inc., A		United States		8,915		(376,481	)
							(1,110,510	)
	IT Services (0.1)%
	Cloudflare Inc., A		United States		742		(36,462	)
	Digitalocean Holdings Inc.		United States		1,345		(40,121	)
	i3 Verticals Inc., A		United States		10,193		(267,974	)
	Okta Inc., A		United States		219		(11,677	)
	Repay Holdings Corp., A		United States		9,715		(86,075	)
	Shift4 Payments Inc., A		United States		6,601		(305,890	)
	Shopify Inc., A		Canada		743		(30,374	)
							(778,573	)
	Life Sciences Tools & Services (0.0)%†
	Inotiv Inc.		United States		6,272		(37,883	)
	Machinery (0.2)%
	Caterpillar Inc.		United States		4,510		(1,066,209	)
	Desktop Metal Inc., A		United States		285,357		(584,982	)

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares		Value
y	Securities Sold Short (continued)
	Common Stocks (continued)
	Machinery (continued)
	The Greenbrier Cos. Inc.		United States		6,121	$	(234,985	)
							(1,886,176	)
	Marine (0.3)%
	A.P. Moeller-Maersk AS, B		Denmark		268		(581,013	)
	Eagle Bulk Shipping Inc.		United States		37,621		(1,935,600	)
	ZIM Integrated Shipping Services Ltd.		Israel		47,349		(995,276	)
							(3,511,889	)
	Media (0.1)%
	Dish Network Corp., A		United States		9,702		(155,717	)
	Magnite Inc.		United States		1,393		(15,476	)
	Sirius XM Holdings Inc.		United States		61,033		(396,104	)
	Techtarget Inc.		United States		1,265		(57,760	)
							(625,057	)
	Metals & Mining (0.6)%
	Agnico Eagle Mines Ltd.		Canada		26,394		(1,329,466	)
	Century Aluminum Co.		United States		20,596		(185,570	)
	Ivanhoe Mines Ltd., A		Canada		66,810		(597,994	)
	Lithium Americas Corp.		Canada		17,996		(449,540	)
	MP Materials Corp.		United States		8,992		(298,984	)
	Pan American Silver Corp.		Canada		112,179		(1,838,614	)
	Piedmont Lithium Inc.		United States		2,265		(130,600	)
	United States Steel Corp.		United States		63,437		(1,667,759	)
							(6,498,527	)
	Mortgage Real Estate Investment Trusts (REITs) (0.1)%
	Arbor Realty Trust Inc.		United States		17,769		(264,403	)
	Hannon Armstrong Sustainable Infrastructure Capital Inc.		United States		3,114		(101,018	)
	PennyMac Mortgage Investment Trust		United States		36,713		(560,608	)
	Redwood Trust Inc.		United States		25,016		(197,626	)
	Two Harbors Investment Corp.		United States		4,251		(69,716	)
							(1,193,371	)
	Personal Products (0.0)%†
	The Beauty Health Co.		United States		8,868		(95,331	)
	Pharmaceuticals (0.2)%
	Avadel Pharmaceuticals PLC, ADR		United States		52,918		(485,258	)
	Collegium Pharmaceutical Inc.		United States		24,000		(524,880	)
	Innoviva Inc.		United States		15,056		(197,685	)
	Omeros Corp.		United States		4,186		(8,958	)
	Pacira Biosciences Inc.		United States		1,771		(85,451	)
	Revance Therapeutics Inc.		United States		18,261		(396,447	)
							(1,698,679	)
	Professional Services (0.1)%
	Jacobs Solutions Inc.		United States		9,147		(1,157,461	)
	Upwork Inc.		United States		1,374		(16,832	)
							(1,174,293	)
	Real Estate Management & Development (0.0)%†
	Anywhere Real Estate Inc.		United States		11,584		(87,459	)
	Opendoor Technologies Inc.		United States		36,048		(66,689	)
	Redfin Corp.		United States		5,399		(28,939	)
							(183,087	)

franklintempleton.com Semiannual Report 63

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Shares		Value
y	Securities Sold Short (continued)
	Common Stocks (continued)
	Road & Rail (0.4)%
	J.B. Hunt Transport Services Inc.		United States		7,261	$	(1,335,225	)
	Old Dominion Freight Line Inc.		United States		7,793		(2,358,240	)
							(3,693,465	)
	Semiconductors & Semiconductor Equipment (0.2)%
	Ams-Osram AG		Austria		16,675		(138,875	)
	Veeco Instruments Inc.		United States		77,464		(1,539,984	)
	Wolfspeed Inc.		United States		251		(22,821	)
							(1,701,680	)
	Software (0.2)%
	8x8 Inc.		United States		65,261		(279,317	)
	Altair Engineering Inc., A		United States		4,082		(200,304	)
	Bentley Systems Inc., B		United States		2,266		(89,756	)
	Confluent Inc., A		United States		2,581		(59,441	)
	Coupa Software Inc.		United States		1,020		(64,505	)
	Dye & Durham Ltd.		Canada		1,898		(19,175	)
	Envestnet Inc.		United States		922		(54,417	)
	Guidewire Software Inc.		United States		330		(19,572	)
	Mitek Systems Inc.		United States		22,844		(233,694	)
	Palo Alto Networks Inc.		United States		8,208		(1,394,539	)
	Unity Software Inc.		United States		227		(8,969	)
	Veritone Inc.		United States		10,083		(67,959	)
							(2,491,648	)
	Specialty Retail (0.4)%
	Burlington Stores Inc.		United States		1,514		(296,260	)
	Guess? Inc.		United States		28,632		(594,400	)
	The Home Depot Inc.		United States		3,498		(1,133,317	)
	Lowe’s Cos. Inc.		United States		5,421		(1,152,234	)
	National Vision Holdings Inc.		United States		25,811		(1,044,313	)
							(4,220,524	)
	Water Utilities (0.1)%
	American Water Works Co. Inc.		United States		8,077		(1,225,766	)
	Total Common Stocks (Proceeds $102,810,197)						(92,337,300	)
	Exchange Traded Funds (11.2)%
	ARK Innovation ETF		United States		91,226		(3,419,150	)
	Health Care Select Sector SPDR Fund		United States		7,277		(1,011,649	)
	Invesco QQQ Series 1 ETF		United States		12,875		(3,777,010	)
	iShares 20+ Year Treasury Bond ETF		United States		68,458		(7,032,690	)
	iShares iBoxx High Yield Corporate Bond ETF		United States		43,345		(3,279,483	)
	iShares Nasdaq Biotechnology ETF		United States		2,054		(280,433	)
	iShares North American Tech-Software ETF		United States		17,400		(4,730,886	)
	iShares PHLX Semiconductor ETF		United States		10,169		(3,945,877	)
	iShares Russell 1000 ETF		United States		236,796		(53,115,711	)
	iShares Russell 2000 ETF		United States		8,100		(1,517,697	)
	iShares Russell Mid-Cap Growth ETF		United States		231,424		(20,643,021	)
	Utilities Select Sector SPDR Fund		United States		147,505		(10,536,282	)
	VanEck Oil Services ETF		United States		2,028		(616,816	)
	Total Exchange Traded Funds (Proceeds $122,124,099)						(113,906,705	)
	Preferred Stocks (Proceeds $1,164,189) (0.1)%
	Automobiles (0.1)%
	Dr ING HC F Porsche AG, pfd., zero cpn.		Germany		10,668		(1,207,803	)

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Corporate Bonds and Notes (1.1)%
	Automobiles (0.1)%
	Ford Motor Credit Co. LLC, senior note, 4.95%, 5/28/27		United States		624,000		$	(591,212	)
	Banks (0.1)%
e,h	Industrial & Commercial Bank of China Ltd., junior sub. note, Reg S, 3.2% to 9/24/26, FRN thereafter, Perpetual		China		761,000			(702,956	)
	Building Products (0.1)%
	3M Co., senior bond, 2.375%, 8/26/29		United States		748,000			(644,254	)
	Chemicals (0.0)%†
	Celanese US Holdings LLC, senior note, 6.33%, 7/15/29		United States		402,000			(386,801	)
	Construction & Engineering (0.1)%
	Fluor Corp., senior bond, 4.25%, 9/15/28		United States		951,000			(867,074	)
	Consumer Finance (0.2)%
	Ally Financial Inc., junior sub. bond, 5.75%, 11/20/25		United States		268,000			(264,585	)
	Onemain Finance Corp., senior note,
	6.875%, 3/15/25		United States		155,000			(150,737	)
	7.125%, 3/15/26		United States		1,171,000			(1,135,870	)
								(1,551,192	)
	Diversified Financial Services (0.1)%
e	Kronos Acquisition Holdings Inc. / KIK Custom Products Inc., senior note, 144A, 7.00%, 12/31/27		Canada		549,000			(456,631	)
e	Medline Borrower LP, senior note, 144A, 5.25%, 10/01/29		United States		536,000			(437,443	)
e	MPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28		United States		463,000			(325,963	)
								(1,220,037	)
	Electric Utilities (0.0)%†
e	Vistra Operations Co. LLC, senior note, 144A, 4.375%, 5/01/29		United States		67,000			(60,019	)
	Health Care Providers & Services (0.0)%†
e	Tenet Healthcare Corp., senior secured note, 144A, 6.25%, 2/01/27		United States		392,000			(376,100	)
	Media (0.2)%
	DISH DBS Corp., senior note, 7.75%, 7/01/26		United States		191,000			(160,271	)
	Grupo Televisa Sab, senior bond, 6.125%, 1/31/46		Mexico		471,000			(468,896	)
	iHeartCommunications Inc., senior note, 8.375%, 5/01/27		United States		1,039,411			(926,780	)
e	Scripps Escrow II Inc., senior bond, 144A, 5.375%, 1/15/31		United States		1,013,000			(828,229	)
								(2,384,176	)
	Oil, Gas & Consumable Fuels (0.0)%†
	Apache Corp., senior bond, 4.375%, 10/15/28		United States		24,000			(21,604	)
e	Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp., senior bond, 144A, 6.00%, 12/31/30		United States		396,000			(358,873	)
								(380,477	)
	Semiconductors & Semiconductor Equipment (0.2)%
	Intel Corp., senior bond,
	4.75%, 3/25/50		United States		743,000			(669,654	)
	4.90%, 8/05/52		United States		1,076,000			(985,498	)
								(1,655,152	)
	Total Corporate Bonds and Notes (Proceeds $11,138,160)							(10,819,450	)
	Foreign Government and Agency Securities (0.2)%
e	Government of Italy, senior bond, Reg S,
	0.95%, 6/01/32		Italy		467,000	EUR		(379,103	)
	2.50%, 12/01/32		Italy		536,000	EUR		(496,463	)

franklintempleton.com Semiannual Report 65

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal Amount*		Value
Foreign Government and Agency Securities (continued)
Government of Turkey, senior bond,
5.75%, 3/22/24		Turkey		573,000	$	(573,125	)
7.375%, 2/05/25		Turkey		590,000		(594,153	)
Total Foreign Government and Agency Securities (Proceeds $2,074,957)						(2,042,844	)
U.S. Government and Agency Securities (0.3)%
U.S. Treasury Bond,
3.375%, 8/15/42		United States		321,000		(293,765	)
2.25%, 2/15/52		United States		251,100		(181,410	)
U.S. Treasury Note,
4.125%, 9/30/27		United States		270,000		(273,322	)
1.875%, 2/15/32		United States		358,000		(308,355	)
2.875%, 5/15/32		United States		218,200		(204,563	)
2.75%, 8/15/32		United States		2,269,800		(2,102,757	)
Total U.S. Government and Agency Securities (Proceeds $3,463,455)						(3,364,172	)
Total Securities Sold Short (Proceeds $242,775,057)					$	(223,678,274	)

^† Rounds to less than 0.1% of net assets.

* The principal amount is stated in U.S. dollars unless otherwise indicated.

^# 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.

^a Non-income producing.

^b A portion or all of the security has been segregated as collateral for securities sold short, open swap contracts, open forward exchange contracts, open futures contracts and/or open written option contracts. At November 30, 2022, the aggregate value of these securities and/or cash pledged amounted to $95,806,319, representing 9.4% of net assets.

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

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

^e Security was purchased pursuant to Rule 144A or Regulation S under the Securities Act of 1933. 144A securities may be sold in transactions exempt from registration only to qualified institutional buyers or in public offering registered under the Securities Act of 1933. Regulation S securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At November 30, 2022, the net value of these securities was $206,846,797, representing 20.3% of net assets.

^f Fair valued using significant unobservable inputs. See Note 14 regarding fair value measurements.

^g See Note 9 regarding investments in Russian securities.

^h Perpetual security with no stated maturity date.

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

^j Income may be received in additional securities and/or cash.

^k See Note 7 regarding defaulted securities.

^l See Note 1(j) regarding senior floating rate interests.

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

ⁿ See Note 11 regarding unfunded loan commitments.

^o Principal amount is stated in 100 Mexican Peso Units.

^p The coupon rate shown represents the rate at period end.

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

^r The rate shown is the annualized seven-day effective yield at period end.

^s A portion or all of the security is owned by K2 Holdings Investment Corp., a wholly-owned subsidiary of the Fund. See Note 1(i).

^t See Note 1(h) regarding securities on loan.

^u See Note 3(f) regarding investments in affiliated management investment companies.

^v See Note 1(c) regarding joint repurchase agreement.

^w The security was issued on a discount basis with no stated coupon rate.

^x See Note 1(e) regarding written options.

^y See Note 1(g) regarding securities sold short.

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

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

Futures Contracts
Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Commodity Contractsa
Aluminum		Long		18	$	1,104,750		12/19/22	$	41,116
Aluminum		Short		18		1,104,750		12/19/22		(26,458	)
Aluminum		Long		1		62,000		3/13/23		828
Aluminum		Short		15		930,000		3/13/23		(48,008	)
Brent Crude Oil		Long		20		1,739,400		12/29/22		(100,180	)
Cocoa		Long		15		361,214		3/16/23		10,438
Coffee		Short		19		1,210,537		3/21/23		24,078
Copper		Long		13		2,677,919		12/19/22		204,568
Copper		Short		13		2,677,919		12/19/22		(123,993	)
Copper		Long		2		412,012		3/13/23		(14,994	)
Copper		Short		5		1,030,031		3/13/23		(31,365	)
Corn		Long		79		2,634,650		3/14/23		(24,756	)
Cotton		Short		13		549,965		3/09/23		2,488
Gasoline		Long		20		2,003,148		12/30/22		(66,656	)
Gold 100 Oz		Short		22		3,871,780		2/24/23		10,370
Hard Red Winter Wheat		Long		4		179,950		3/14/23		(8,661	)
Low Sulphur Gas Oil		Long		18		1,682,100		1/12/23		(61,527	)
Natural Gas		Long		25		1,732,500		12/28/22		(32,756	)
NY Harbor		Long		22		3,107,874		12/30/22		(81,160	)
Silver		Short		11		1,197,955		3/29/23		(21,421	)
Soybean Meal		Long		22		915,200		3/14/23		26,569
Soybean Oil		Long		19		801,192		3/14/23		(13,427	)
Soybeans		Long		9		663,975		3/14/23		25,489
Sugar		Long		29		637,582		2/28/23		6,526
Wheat		Short		38		1,511,450		3/14/23		88,155
WTI Crude Oil		Long		5		402,750		12/20/22		(10,391	)
Zinc		Long		24		1,829,100		12/19/22		(152,972	)
Zinc		Short		24		1,829,100		12/19/22		109,982
Zinc		Short		9		683,213		3/13/23		(35,644	)
										(303,762	)
Currency Contractsa
U.S. Dollar Index		Long		14		1,482,558		12/19/22		(39,860	)
Equity Contracts
CAC 40 10 Euro Indexa		Long		40		2,804,002		12/16/22		48,599
CBOE Volatility Index		Long		5		123,335		1/18/23		(9,580	)
CBOE Volatility Index		Long		5		127,516		2/15/23		(8,700	)
CBOE Volatility Index		Long		9		234,450		3/22/23		(6,337	)
CBOE Volatility Index		Long		17		450,485		4/19/23		(20,457	)
CBOE Volatility Index		Long		8		212,817		5/17/23		(10,118	)
DAX Indexa		Long		22		8,251,859		12/16/22		17,365
DJ EURO STOXX 50 Indexa		Long		214		8,829,600		12/16/22		256,583
DJ EURO STOXX 50 Index		Short		439		18,113,058		12/16/22		(1,475,922	)
DJIA Mini E-CBOT Indexa		Long		20		3,459,900		12/16/22		112,010
E-Mini Russell 2000a		Long		18		1,698,750		12/16/22		52,617
FTSE 100 Indexa		Long		25		2,289,675		12/16/22		31,041
FTSE 100 Index		Short		38		3,480,306		12/16/22		(63,373	)
FTSE China A50 Index		Long		18		228,510		12/29/22		9,471
FTSE/MIB Index		Short		1		128,166		12/16/22		(10,631	)
Hang Seng China Enterprises Index		Long		4		163,668		12/29/22		9,784
Hang Seng Indexa		Short		22		2,621,794		12/29/22		(138,131	)
Hang Seng Tech Index		Long		8		194,906		12/29/22		11,545
MSCI Singapore Index		Long		2		43,645		12/29/22		151

franklintempleton.com Semiannual Report 67

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Futures Contracts (continued)
Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Equity Contracts (continued)
NASDAQ 100 E-Mini Indexa		Short		23	$	5,539,435		12/16/22	$	(8,017	)
Nikkei 225 Indexa		Long		37		7,513,071		12/08/22		100,455
S&P 500 E-Mini Indexa		Long		64		13,060,000		12/16/22		603,376
S&P 500 E-Mini Index		Short		216		44,077,498		12/16/22		(3,081,822	)
SGX Nifty 50		Short		91		3,442,803		12/29/22		(107,634	)
TOPIX Indexa		Long		61		8,790,644		12/08/22		267,128
VSTOXX		Long		5		11,082		12/21/22		(1,251	)
VSTOXX		Long		6		14,735		1/18/23		—
										(3,421,848	)
Interest Rate Contracts
3 Month EURIBOR		Long		1		254,492		12/19/22		(62	)
3 Month EURIBOR		Short		15		3,792,014		3/13/23		59,355
3 Month EURIBOR		Long		3		756,881		9/18/23		(1,361	)
3 Month EURIBORa		Short		108		27,265,973		12/18/23		(2,040	)
3 Month EURIBOR		Short		16		4,043,358		3/18/24		22,604
3 Month SOFR		Short		8		1,901,700		6/20/23		(1,015	)
3 Month SOFR		Long		130		30,902,625		9/19/23		22,278
3 Month SOFRa		Short		313		74,791,350		3/19/24		(63,017	)
1 Month SOFR		Short		62		24,776,794		12/30/22		204,954
30 Day Federal Funds		Long		62		24,769,690		12/30/22		(132,316	)
30 Day Federal Funds		Long		39		15,542,743		1/31/23		9,691
30 Day Federal Funds		Long		2		794,147		2/28/23		(337	)
30 Day Federal Funds		Long		62		24,572,049		4/28/23		(6,242	)
30 Day Federal Funds		Short		16		6,337,840		5/31/23		3,785
30 Day Federal Funds		Short		90		35,655,977		7/31/23		51,688
90 Day Eurodollar		Long		2		475,512		12/19/22		(6,991	)
90 Day Sterlinga		Short		27		7,764,465		3/19/24		79,586
Australian 10 Yr. Bonda		Short		62		5,077,658		12/15/22		(100,023	)
Canadian 10 Yr. Bonda		Long		3		280,430		3/22/23		1,399
Euro-BOBLa		Short		79		9,867,360		12/08/22		(45,825	)
Euro-Bunda		Short		47		6,890,191		12/08/22		(84,217	)
Euro-SCHATZa		Short		271		30,112,255		12/08/22		(11,291	)
Japanese 10 Yr. Bond		Short		2		2,153,958		12/13/22		7,835
Long Gilta		Short		11		1,391,932		3/29/23		7,366
U.S. Treasury 2 Yr. Notea		Short		90		18,482,344		3/31/23		(45,090	)
U.S. Treasury 5 Yr. Notea		Short		30		3,257,109		3/31/23		(17,485	)
U.S. Treasury 10 Yr. Notea		Long		48		5,448,000		3/22/23		28,781
U.S. Treasury 10 Yr. Ultra		Short		52		6,222,125		3/22/23		(43,872	)
U.S. Treasury Long Bonda		Long		15		1,905,000		3/22/23		39
U.S. Treasury Ultra Bond		Long		1		136,281		3/22/23		770
U.S. Treasury Ultra Bond		Short		46		6,268,937		3/22/23		(6,641	)
										(67,694	)
Total Futures Contracts									$	(3,833,164	)

*As of period end.

^aA portion or all of the contracts are owned by K2 Holdings Investment Corp., a wholly-owned subsidiary of the Fund. See Note 1(i).

68 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

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

Forward Exchange Contracts
Currency	Counterpartya		Type		Quantity		Contract Amount*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts
Brazilian Real		JPHQ		Buy		5,089,899		951,574			12/02/22	$	29,262	$	—
Brazilian Real		JPHQ		Sell		5,089,899		957,386			12/02/22		—		(23,450	)
Singapore Dollar		BOFA		Buy		10,836,000		7,891,895			12/02/22		71,360		—
Singapore Dollar		BOFA		Sell		1,200,000		874,126			12/02/22		—		(7,741	)
Singapore Dollar		CITI		Sell		1,200,000		874,317			12/02/22		—		(7,550	)
Singapore Dollar		DBAB		Sell		1,000,000		728,721			12/02/22		—		(6,168	)
Singapore Dollar		GSCO		Sell		1,600,000		1,165,471			12/02/22		—		(10,351	)
Brazilian Real		MSCO		Sell		7,058,370		1,316,713			12/08/22		—		(41,346	)
Indian Rupee		BNPP		Buy		133,500		1,606			12/14/22		32		—
Indian Rupee		DBAB		Buy		41,361,500		500,000			12/14/22		7,515		—
Indian Rupee		GSCO		Sell		41,495,000		500,000			12/14/22		—		(9,153	)
Chinese Yuan		MSCO		Buy		10,134,392		1,416,685			12/15/22		5,747		(1,869	)
Chinese Yuan		MSCO		Sell		22,383,296		3,158,739			12/15/22		37,777		(16,563	)
British Pound		BNYM		Sell		771,813		916,145			12/16/22		—		(14,710	)
Euro		BNYM		Sell		14,624,169		15,226,802			12/16/22		—		(14,125	)
Swiss Franc		BNYM		Sell		1,400,507		1,491,554			12/16/22		7,972		—
Australian Dollar		BZWS		Buy		3,250,000		2,125,916			12/20/22		82,140		—
Australian Dollar		BZWS		Sell		12,516,000		8,336,431			12/20/22		14		(166,971	)
British Pound		BZWS		Buy		933,000		1,072,691			12/20/22		52,756		—
British Pound		BZWS		Sell		7,452,000		8,345,033			12/20/22		191		(644,253	)
Canadian Dollar		BZWS		Buy		5,428,000		3,965,253			12/20/22		71,701		(107	)
Canadian Dollar		BZWS		Sell		11,367,000		8,510,098			12/20/22		79,068		(22,699	)
Euro		BZWS		Buy		7,513,000		7,710,640			12/20/22		122,167		—
Euro		BZWS		Sell		10,269,000		10,400,736			12/20/22		2		(305,389	)
Japanese Yen		BZWS		Buy		608,334,000		4,230,285			12/20/22		188,078		—
Japanese Yen		BZWS		Sell		608,334,000		4,284,652			12/20/22		—		(133,711	)
New Zealand Dollar		BZWS		Sell		389,000		227,020			12/20/22		—		(18,189	)
Swiss Franc		BZWS		Buy		11,000		11,626			12/20/22		40		(6	)
Swiss Franc		BZWS		Sell		414,000		432,521			12/20/22		—		(6,297	)
Singapore Dollar		BNPP		Sell		132,818		140,000	AUD		12/21/22		441		(2,935	)
Singapore Dollar		BOFA		Sell		125,635		140,000	AUD		12/21/22		6,681		(3,896	)
Australian Dollar		BOFA		Sell		5,711		3,832			12/21/22		—		(48	)
Australian Dollar		CITI		Buy		140,000		88,910			12/21/22		6,211		—
New Zealand Dollar		DBAB		Sell		157,024		140,000	AUD		12/21/22		7,095		(10,957	)
Australian Dollar		DBAB		Buy		338,837		229,783			12/21/22		2,695		(2,261	)
Australian Dollar		DBAB		Sell		553,370		351,694			12/21/22		—		(24,285	)
New Zealand Dollar		GSCO		Sell		219,064		200,000	AUD		12/21/22		7,183		(9,387	)
Australian Dollar		GSCO		Buy		104,606		65,800			12/21/22		5,273		—
New Zealand Dollar		HSBC		Sell		224,779		200,000	AUD		12/21/22		747		(6,553	)
Australian Dollar		HSBC		Sell		26,826		16,981			12/21/22		—		(1,246	)
Australian Dollar		JPHQ		Buy		79,460		51,042			12/21/22		2,946		—
Australian Dollar		JPHQ		Sell		149,425		98,667			12/21/22		—		(2,857	)
Australian Dollar		MSCO		Sell		117,685		74,800			12/21/22		—		(5,159	)
Australian Dollar		SCBL		Sell		200,000		131,947			12/21/22		—		(3,940	)
Australian Dollar		SSBT		Buy		244,911		153,932			12/21/22		12,469		—
Australian Dollar		SSBT		Sell		132,726		87,600			12/21/22		—		(2,578	)
Australian Dollar		UBSW		Sell		140,000		88,641			12/21/22		—		(6,480	)
British Pound		BNYM		Buy		316,572		378,144			12/21/22		3,742		—
British Pound		BNYM		Sell		1,678,595		1,926,913			12/21/22		—		(98,004	)
British Pound		DBAB		Buy		345,437		386,128			12/21/22		30,580		—
British Pound		DBAB		Sell		344,933		385,955			12/21/22		—		(30,144	)
British Pound		HSBC		Buy		34,210		39,417			12/21/22		1,851		—
British Pound		HSBC		Sell		497		566			12/21/22		—		(34	)
British Pound		JPHQ		Buy		220,515		250,781			12/21/22		15,231		—
British Pound		JPHQ		Sell		225,862		255,233			12/21/22		—		(17,228	)

franklintempleton.com Semiannual Report 69

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Forward Exchange Contracts (continued)
Currency	Counterpartya		Type		Quantity		Contract Amount*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
British Pound		MSCO		Buy		44,929		49,800			12/21/22	$	4,399	$	—
British Pound		MSCO		Sell		282,323		317,548			12/21/22		—		(23,023	)
British Pound		SCBL		Buy		237,837		268,151			12/21/22		18,756		—
British Pound		UBSW		Buy		44,939		49,800			12/21/22		4,411		—
Chilean Peso		JPHQ		Sell		476,248,725		484,337			12/21/22		—		(48,610	)
Chinese Yuan		BNPP		Buy		21,086,580		3,000,000			12/21/22		—		(2,154	)
Chinese Yuan		BOFA		Buy		3,297,756		467,000			12/21/22		2,553		(717	)
Chinese Yuan		BOFA		Sell		726,282		100,000			12/21/22		—		(3,254	)
Chinese Yuan		BZWS		Sell		1,888,614		260,000			12/21/22		—		(8,501	)
Chinese Yuan		DBAB		Buy		25,728,897		3,647,116			12/21/22		11,563		(842	)
Chinese Yuan		DBAB		Sell		2,422,427		340,000			12/21/22		—		(4,393	)
Chinese Yuan		GSCO		Buy		5,411,262		750,000			12/21/22		19,310		—
Chinese Yuan		GSCO		Sell		4,807,398		679,200			12/21/22		364		(4,626	)
Chinese Yuan		JPHQ		Buy		4,380,969		606,686			12/21/22		16,148		—
Chinese Yuan		JPHQ		Sell		5,161,182		724,694			12/21/22		3,532		(12,595	)
Chinese Yuan		MSCO		Buy		1,591,356		222,800			12/21/22		3,441		—
Chinese Yuan		MSCO		Sell		1,423,518		200,000			12/21/22		—		(2,380	)
Chinese Yuan		SCBL		Buy		1,017,618		140,000			12/21/22		4,673		—
Chinese Yuan		SCBL		Sell		3,623,305		500,000			12/21/22		—		(15,120	)
Chinese Yuan		SSBT		Buy		1,601,654		222,800			12/21/22		4,905		—
Chinese Yuan		SSBT		Sell		3,550,754		501,000			12/21/22		—		(3,806	)
Chinese Yuan		UBSW		Buy		1,448,215		200,000			12/21/22		5,891		—
Euro		BNYM		Buy		300,981		300,657			12/21/22		13,165		—
Euro		BNYM		Sell		3,427,086		3,452,974			12/21/22		—		(120,331	)
Euro		BOFA		Sell		432,872		428,696			12/21/22		—		(22,645	)
Euro		DBAB		Buy		727,263		730,673			12/21/22		27,618		—
Euro		DBAB		Sell		368,118		368,030			12/21/22		12		(15,807	)
Euro		HSBC		Buy		237,375		234,958			12/21/22		12,545		—
Euro		HSBC		Sell		746,282		729,174			12/21/22		—		(48,948	)
Polish Zloty		JPHQ		Sell		888,274		179,931	EUR		12/21/22		11,321		(20,550	)
Hungarian Forint		JPHQ		Sell		212,918,508		513,158	EUR		12/21/22		26,004		(28,912	)
Euro		JPHQ		Buy		1,527,397		1,504,886			12/21/22		87,678		—
Euro		JPHQ		Sell		1,927,397		1,910,264			12/21/22		—		(99,366	)
Euro		MSCO		Buy		1,110,000		1,104,014			12/21/22		53,345		—
Euro		MSCO		Sell		3,362,764		3,385,288			12/21/22		—		(120,950	)
Euro		SCBL		Buy		237,396		232,249			12/21/22		15,276		—
Euro		SSBT		Buy		104,842		103,985			12/21/22		5,330		—
Euro		SSBT		Sell		180,881		178,800			12/21/22		—		(9,799	)
Hong Kong Dollar		HSBC		Buy		775,581		98,943			12/21/22		323		—
Hong Kong Dollar		JPHQ		Buy		499,509		63,755			12/21/22		177		—
Hong Kong Dollar		JPHQ		Sell		315,360		40,293			12/21/22		9		(79	)
Hong Kong Dollar		SCBL		Sell		222,706		28,517			12/21/22		13		—
Euro		DBAB		Sell		146,012		62,434,684	HUF		12/21/22		15,780		(10,274	)
Euro		JPHQ		Sell		357,176		150,483,825	HUF		12/21/22		22,606		(14,808	)
Indian Rupee		BNPP		Buy		17,798,330		219,444			12/21/22		396		(1,533	)
Indian Rupee		BNPP		Sell		19,741,590		240,000			12/21/22		—		(2,142	)
Indian Rupee		BOFA		Buy		16,626,360		200,000			12/21/22		3,932		—
Indian Rupee		BOFA		Sell		16,338,000		200,000			12/21/22		—		(395	)
Indian Rupee		BZWS		Sell		16,350,000		200,000			12/21/22		—		(542	)
Indian Rupee		DBAB		Buy		2,043,485		24,600			12/21/22		465		—
Indian Rupee		GSCO		Buy		73,031,600		900,000			12/21/22		1,534		(5,759	)
Indian Rupee		GSCO		Sell		16,436,000		200,000			12/21/22		—		(1,597	)
Indian Rupee		HSBC		Buy		68,669,466		840,000			12/21/22		5,322		(3,050	)
Indian Rupee		HSBC		Sell		13,077,923		161,400			12/21/22		1,577		(585	)
Indian Rupee		JPHQ		Sell		27,742,793		336,762			12/21/22		221		(3,740	)
Indian Rupee		MSCO		Sell		10,344,160		128,000			12/21/22		1,626		(503	)

70 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Forward Exchange Contracts (continued)
Currency	Counterpartya		Type		Quantity		Contract Amount*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Indian Rupee		SCBL		Sell		32,788,000		400,000			12/21/22	$	—	$	(2,164	)
Indian Rupee		SSBT		Buy		2,042,308		24,600			12/21/22		450		—
Indonesian Rupiah		BOFA		Sell		698,248,320		46,200			12/21/22		1,827		—
Indonesian Rupiah		GSCO		Buy		2,189,936,000		140,000			12/21/22		—		(832	)
Indonesian Rupiah		HSBC		Buy		2,547,681,718		166,842			12/21/22		—		(4,940	)
Indonesian Rupiah		HSBC		Sell		3,392,492,426		224,800			12/21/22		9,210		—
Indonesian Rupiah		MSCO		Buy		697,393,620		46,200			12/21/22		—		(1,881	)
Indonesian Rupiah		MSCO		Sell		28,464,800		1,818			12/21/22		9		—
Indonesian Rupiah		SSBT		Buy		6,192,000,000		400,000			12/21/22		—		(6,505	)
Indonesian Rupiah		SSBT		Sell		596,473,062		38,600			12/21/22		695		—
Indonesian Rupiah		UBSW		Buy		1,048,610,660		68,000			12/21/22		—		(1,362	)
Indonesian Rupiah		UBSW		Sell		2,899,182,258		186,200			12/21/22		1,960		—
Japanese Yen		BOFA		Buy		14,709,080		100,000			12/21/22		6,849		—
Japanese Yen		DBAB		Buy		175,758,147		1,237,620			12/21/22		39,110		—
Japanese Yen		DBAB		Sell		186,230,566		1,309,275			12/21/22		315		(43,840	)
Japanese Yen		GSCO		Buy		85,317,780		600,000			12/21/22		19,759		—
Japanese Yen		GSCO		Sell		130,280,500		900,000			12/21/22		—		(46,374	)
Japanese Yen		HSBC		Buy		40,311,500		280,000			12/21/22		12,828		—
Japanese Yen		HSBC		Sell		82,705,393		580,000			12/21/22		—		(20,782	)
South Korean Won		JPHQ		Sell		451,237,000		46,000,000	JPY		12/21/22		12,156		(20,261	)
Japanese Yen		JPHQ		Buy		97,055,749		685,000			12/21/22		20,025		—
Japanese Yen		JPHQ		Sell		98,188,631		683,648			12/21/22		—		(29,606	)
Japanese Yen		MSCO		Sell		90,970,090		636,881			12/21/22		—		(23,937	)
Japanese Yen		SCBL		Buy		406,066		2,934			12/21/22		16		—
Japanese Yen		SSBT		Buy		40,620,888		282,810			12/21/22		12,265		—
Japanese Yen		SSBT		Sell		84,369,104		592,200			12/21/22		—		(20,667	)
New Zealand Dollar		UBSW		Sell		200,000		17,136,040	JPY		12/21/22		3,551		(5,146	)
Japanese Yen		UBSW		Buy		99,327,510		700,000			12/21/22		21,528		—
Japanese Yen		UBSW		Sell		28,641,240		200,000			12/21/22		—		(8,054	)
Mexican Peso		JPHQ		Buy		37,686,074		1,866,212			12/21/22		79,607		—
Mexican Peso		JPHQ		Sell		38,030,198		1,858,849			12/21/22		—		(104,737	)
New Zealand Dollar		BOFA		Sell		74,743		42,558			12/21/22		—		(4,558	)
New Zealand Dollar		DBAB		Buy		540,000		322,411			12/21/22		17,986		—
New Zealand Dollar		DBAB		Sell		400,000		232,852			12/21/22		—		(19,294	)
Japanese Yen		GSCO		Sell		17,261,840		200,000	NZD		12/21/22		4,587		(3,906	)
New Zealand Dollar		GSCO		Sell		140,000		86,548			12/21/22		—		(1,703	)
Australian Dollar		HSBC		Sell		340,000		382,560	NZD		12/21/22		18,116		(7,971	)
New Zealand Dollar		SCBL		Buy		178,887		100,905			12/21/22		11,860		—
New Zealand Dollar		SSBT		Buy		200,000		120,754			12/21/22		5,319		—
New Zealand Dollar		UBSW		Buy		262,286		152,272			12/21/22		13,064		—
New Zealand Dollar		UBSW		Sell		400,000		249,088			12/21/22		—		(3,059	)
Norwegian Krone		CITI		Sell		1,006,777		100,000			12/21/22		—		(2,320	)
Norwegian Krone		DBAB		Buy		998,561		100,000			12/21/22		1,485		—
Norwegian Krone		DBAB		Sell		3,463,524		340,000			12/21/22		—		(12,001	)
Norwegian Krone		GSCO		Buy		1,495,789		140,000			12/21/22		12,019		—
Norwegian Krone		HSBC		Buy		2,062,624		200,000			12/21/22		9,627		—
Philippine Peso		GSCO		Sell		5,439,172		92,400			12/21/22		—		(3,746	)
Philippine Peso		HSBC		Buy		3,586,556		60,842			12/21/22		2,556		—
Philippine Peso		JPHQ		Buy		2,016,982		34,000			12/21/22		1,654		—
Philippine Peso		JPHQ		Sell		4,574,726		77,200			12/21/22		—		(3,666	)
Polish Zloty		DBAB		Sell		771,941		154,172			12/21/22		—		(16,886	)
Euro		JPHQ		Sell		185,235		888,274	PLN		12/21/22		9,493		(5,794	)
Polish Zloty		JPHQ		Buy		2,430,325		503,812			12/21/22		34,736		—
Polish Zloty		JPHQ		Sell		1,658,385		342,147			12/21/22		—		(25,343	)
Singapore Dollar		BOFA		Buy		567,252		400,000			12/21/22		16,905		—
Singapore Dollar		BOFA		Sell		2,528,228		1,760,000			12/21/22		—		(98,134	)

franklintempleton.com Semiannual Report 71

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Forward Exchange Contracts (continued)
Currency	Counterpartya		Type		Quantity		Contract Amount*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Australian Dollar		BZWS		Sell		140,000		128,883	SGD		12/21/22	$	1,313	$	(1,711	)
Australian Dollar		CITI		Sell		140,000		134,479	SGD		12/21/22		3,715		—
Singapore Dollar		DBAB		Buy		1,276,520		900,000			12/21/22		38,185		—
Singapore Dollar		GSCO		Buy		1,133,885		800,000			12/21/22		33,354		—
Euro		HSBC		Sell		200,000		284,301	SGD		12/21/22		2,271		(1,857	)
Singapore Dollar		HSBC		Buy		1,812,043		1,276,637			12/21/22		55,133		—
Singapore Dollar		HSBC		Sell		564,103		396,721			12/21/22		—		(17,869	)
Singapore Dollar		JPHQ		Buy		157,824		109,932			12/21/22		6,062		—
Singapore Dollar		SCBL		Buy		341,824		249,517			12/21/22		1,708		—
Singapore Dollar		SCBL		Sell		1,002,632		710,050			12/21/22		—		(26,839	)
Singapore Dollar		SSBT		Buy		2,013,406		1,420,000			12/21/22		59,763		—
Singapore Dollar		SSBT		Sell		6,680		4,862			12/21/22		—		(48	)
South African Rand		JPHQ		Sell		29,081,828		1,657,216			12/21/22		—		(22,533	)
South Korean Won		BNPP		Buy		78,992,806		55,647			12/21/22		4,267		—
South Korean Won		BNPP		Sell		347,538,798		260,000			12/21/22		—		(3,601	)
South Korean Won		BOFA		Buy		185,556,000		140,000			12/21/22		740		—
South Korean Won		BOFA		Sell		416,220,000		300,000			12/21/22		—		(15,694	)
South Korean Won		BZWS		Buy		158,922,000		120,000			12/21/22		539		—
South Korean Won		CITI		Buy		187,541,200		140,000			12/21/22		2,246		—
South Korean Won		CITI		Sell		451,266,000		340,000			12/21/22		—		(2,275	)
South Korean Won		DBAB		Buy		1,117,800,000		800,000			12/21/22		47,827		—
South Korean Won		DBAB		Sell		488,240,000		340,000			12/21/22		—		(30,319	)
South Korean Won		GSCO		Buy		67,007,772		46,800			12/21/22		4,024		—
South Korean Won		GSCO		Sell		416,310,000		300,000			12/21/22		—		(15,762	)
South Korean Won		HSBC		Buy		1,219,280,976		886,800			12/21/22		37,998		—
South Korean Won		HSBC		Sell		1,268,591,320		903,600			12/21/22		—		(58,599	)
Japanese Yen		JPHQ		Sell		46,000,000		446,403,200	KRW		12/21/22		7,991		(3,554	)
South Korean Won		JPHQ		Buy		478,136,000		340,000			12/21/22		22,655		—
South Korean Won		JPHQ		Sell		242,530,210		173,200			12/21/22		—		(10,754	)
South Korean Won		MSCO		Sell		247,498,772		183,600			12/21/22		170		(4,292	)
South Korean Won		UBSW		Buy		1,038,205,638		740,000			12/21/22		47,457		—
South Korean Won		UBSW		Sell		485,946,000		353,200			12/21/22		109		(15,488	)
Swedish Krona		JPHQ		Sell		160,000		14,160			12/21/22		—		(1,103	)
Swiss Franc		BNYM		Sell		584,847		604,901			12/21/22		—		(15,098	)
Swiss Franc		JPHQ		Buy		800,000		841,330			12/21/22		6,753		—
Swiss Franc		JPHQ		Sell		80,000		83,576			12/21/22		—		(1,232	)
Taiwan Dollar		BNPP		Sell		9,480,600		300,000			12/21/22		—		(7,353	)
Taiwan Dollar		CITI		Buy		10,471,374		340,000			12/21/22		—		(526	)
Taiwan Dollar		GSCO		Sell		4,843,354		156,800			12/21/22		684		(902	)
Taiwan Dollar		HSBC		Buy		3,858,974		123,619			12/21/22		1,486		—
Taiwan Dollar		HSBC		Sell		16,722,720		540,000			12/21/22		—		(2,137	)
Taiwan Dollar		JPHQ		Buy		684,769		21,347			12/21/22		853		—
Taiwan Dollar		JPHQ		Sell		6,317,200		200,000			12/21/22		—		(4,798	)
Taiwan Dollar		MSCO		Buy		6,783,256		220,000			12/21/22		791		(884	)
Taiwan Dollar		MSCO		Sell		4,418,484		140,000			12/21/22		—		(3,244	)
Taiwan Dollar		SCBL		Buy		3,680,988		120,000			12/21/22		—		(665	)
Taiwan Dollar		UBSW		Buy		1,715,781		54,000			12/21/22		1,625		—
Taiwan Dollar		UBSW		Sell		1,946,162		61,200			12/21/22		—		(1,893	)
Thai Baht		CITI		Buy		841,094		22,403			12/21/22		1,507		—
Thai Baht		DBAB		Buy		11,517,312		320,000			12/21/22		7,407		—
Thai Baht		DBAB		Sell		1,221,362		32,200			12/21/22		—		(2,520	)
Thai Baht		GSCO		Buy		5,215,000		140,000			12/21/22		8,249		—
Thai Baht		HSBC		Sell		11,897,504		320,000			12/21/22		—		(18,214	)
Thai Baht		UBSW		Buy		2,535,635		66,755			12/21/22		5,326		—
Thai Baht		UBSW		Sell		7,630,749		210,800			12/21/22		—		(6,122	)
Australian Dollarb		MSCO		Buy		11,288,000		7,340,190			12/23/22		329,996		—

72 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Forward Exchange Contracts (continued)
Currency	Counterpartya		Type		Quantity		Contract Amount*		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Australian Dollarb		MSCO		Sell		22,325,000		14,772,163		12/23/22	$	—	$	(397,656	)
British Poundb		MSCO		Buy		8,008,000		8,822,379		12/23/22		838,632		(16	)
British Poundb		MSCO		Sell		9,849,000		11,420,139		12/23/22		18		(461,891	)
Canadian Dollar		BNYM		Buy		600,000		436,483		12/23/22		9,768		—
Canadian Dollar		BNYM		Sell		6,026,000		4,388,935		12/23/22		—		(92,917	)
Canadian Dollarb		MSCO		Buy		9,965,000		7,457,547		12/23/22		19,379		(65,432	)
Canadian Dollarb		MSCO		Sell		26,220,000		19,326,156		12/23/22		46,704		(221,734	)
Euro		BNYM		Sell		665,000		641,299		12/23/22		—		(52,204	)
Eurob		MSCO		Buy		13,204,000		13,225,475		12/23/22		544,497		(21	)
Eurob		MSCO		Sell		12,565,000		12,627,694		12/23/22		90		(475,961	)
Japanese Yen		BNYM		Sell		42,521,000		296,136		12/23/22		—		(12,833	)
Japanese Yen		HSBC		Buy		73,062,460		500,000		12/23/22		30,891		—
Japanese Yen		JPHQ		Buy		85,953,000		600,000		12/23/22		24,557		—
Japanese Yen		JPHQ		Sell		41,665,761		300,000		12/23/22		—		(2,754	)
Japanese Yenb		MSCO		Buy		1,814,829,000		12,707,285		12/23/22		479,742		—
Japanese Yenb		MSCO		Sell		2,367,066,000		16,655,940		12/23/22		—		(543,786	)
Mexican Pesob		MSCO		Buy		71,861,000		3,525,790		12/23/22		183,206		—
Mexican Pesob		MSCO		Sell		4,134,000		208,698		12/23/22		—		(4,671	)
New Zealand Dollarb		MSCO		Buy		3,302,000		2,004,651		12/23/22		76,888		—
New Zealand Dollarb		MSCO		Sell		7,862,000		4,708,299		12/23/22		—		(247,803	)
Swiss Francb		MSCO		Buy		2,825,000		2,973,251		12/23/22		24,509		(2,078	)
Swiss Francb		MSCO		Sell		9,974,000		10,453,182		12/23/22		1,956		(125,383	)
Australian Dollar		BNYM		Buy		809,000		524,349		12/28/22		25,498		—
Australian Dollar		BNYM		Sell		989,000		638,587		12/28/22		—		(33,599	)
Canadian Dollar		BNYM		Sell		1,764,000		1,282,908		12/28/22		—		(29,202	)
Euro		BNYM		Sell		3,865,000		3,737,803		12/28/22		—		(294,760	)
Hong Kong Dollar		BNYM		Sell		9,897,000		1,262,695		12/28/22		—		(3,888	)
Chinese Yuan		BZWS		Sell		7,791,102		1,090,000		12/29/22		—		(18,400	)
Chinese Yuan		DBAB		Sell		7,790,884		1,090,000		12/29/22		—		(18,369	)
South Korean Won		DBAB		Sell		133,712,000		100,000		12/29/22		—		(1,430	)
South Korean Won		HSBC		Sell		294,178,200		220,000		12/29/22		—		(3,155	)
South Korean Won		JPHQ		Sell		267,602,000		200,000		12/29/22		—		(2,995	)
Colombian Peso		MSCS		Sell		424,857,000		93,085		1/11/23		5,741		—
Indian Rupee		BNPP		Buy		41,585,000		500,000		1/17/23		9,366		—
Indian Rupee		DBAB		Sell		41,509,000		500,000		1/17/23		—		(8,435	)
Indian Rupee		GSCO		Sell		184,500		2,211		1/17/23		—		(49	)
Indian Rupee		JPHQ		Buy		41,617,500		500,000		1/17/23		9,764		—
Indian Rupee		JPHQ		Sell		41,509,000		500,000		1/17/23		—		(8,435	)
Singapore Dollar		BNPP		Sell		13,000,000		9,484,403		1/18/23		—		(72,360	)
Singapore Dollar		BOFA		Sell		2,000,000		1,456,664		1/18/23		—		(13,607	)
Singapore Dollar		CITI		Sell		2,000,000		1,459,002		1/18/23		—		(11,269	)
Singapore Dollar		GSCO		Buy		11,488,368		8,000,000		1/18/23		445,509		—
Singapore Dollar		HSBC		Buy		2,872,630		2,000,000		1/18/23		111,773		—
Singapore Dollar		HSBC		Sell		2,000,000		1,457,875		1/18/23		—		(12,396	)
Singapore Dollar		MSCO		Buy		2,871,920		2,000,000		1/18/23		111,251		—
Singapore Dollar		MSCO		Sell		2,000,000		1,457,195		1/18/23		—		(13,076	)
Singapore Dollar		SCBL		Sell		2,000,000		1,459,005		1/18/23		—		(11,266	)
Singapore Dollar		SSBT		Buy		5,745,600		4,000,000		1/18/23		223,795		—
Chilean Peso		BNYM		Buy		172,821,456		173,956		1/19/23		18,481		—
Chilean Peso		BZWS		Buy		1,806,261,896		1,901,034		1/19/23		110,246		—
Chilean Peso		BZWS		Sell		2,987,660,075		3,180,583		1/19/23		—		(146,188	)
Chilean Peso		GSCO		Buy		171,716,613		173,956		1/19/23		17,251		—
Chilean Peso		JPHQ		Buy		1,078,643,362		1,091,054		1/19/23		110,020		—
Colombian Peso		GSCO		Sell		4,299,186,488		863,714		1/19/23		—		(18,651	)
Colombian Peso		JPHQ		Sell		18,759,367,795		3,883,474		1/19/23		60,100		(26,799	)
Colombian Peso		MSCO		Sell		5,076,165,295		1,039,218		1/19/23		—		(2,614	)

franklintempleton.com Semiannual Report 73

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Forward Exchange Contracts (continued)
Currency	Counterpartya		Type		Quantity		Contract Amount*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Colombian Peso		UBSW		Buy		7,236,950,000		1,450,000			1/19/23	$	35,312	$	—
Euro		BZWS		Sell		520,653		12,761,362	CZK		1/19/23		962		(956	)
Euro		MSCO		Sell		972,577		23,845,270	CZK		1/19/23		5,797		(5,483	)
Czech Koruna		CITI		Sell		73,643,339		2,955,961	EUR		1/19/23		157,175		(208,024	)
Polish Zloty		GSCO		Sell		21,140,440		4,282,173	EUR		1/19/23		227,692		(416,419	)
Euro		JPHQ		Sell		1,455,589		1,439,574			1/19/23		—		(81,504	)
Euro		SSBT		Sell		90,000		89,403			1/19/23		—		(4,646	)
Euro		UBSW		Sell		50,000		49,135			1/19/23		—		(3,115	)
Euro		BNPP		Sell		645,098		275,053,357	HUF		1/19/23		49,672		(34,554	)
Euro		BNYM		Sell		1,206,622		516,540,063	HUF		1/19/23		96,046		(62,589	)
Euro		GSCO		Sell		1,908,907		818,317,949	HUF		1/19/23		176,360		(120,577	)
Euro		JPHQ		Sell		662,966		284,102,006	HUF		1/19/23		54,558		(35,437	)
Hungarian Forint		MSCO		Sell		60,719,317		136,890			1/19/23		—		(15,263	)
Indian Rupee		DBAB		Buy		175,278,750		2,150,000			1/19/23		—		(3,258	)
Indian Rupee		JPHQ		Buy		173,511,520		2,080,000			1/19/23		45,098		—
Indian Rupee		JPHQ		Sell		347,974,235		4,180,473			1/19/23		—		(81,373	)
Indonesian Rupiah		HSBC		Buy		47,195,050,000		3,020,000			1/19/23		—		(22,076	)
Indonesian Rupiah		UBSW		Buy		24,104,050,000		1,550,000			1/19/23		—		(18,863	)
Mexican Peso		BNYM		Buy		2,983,950		146,842			1/19/23		6,422		—
Mexican Peso		BNYM		Sell		27,000,000		1,339,491			1/19/23		—		(47,307	)
Mexican Peso		BZWS		Buy		85,643,210		4,350,000			1/19/23		48,883		—
Mexican Peso		BZWS		Sell		103,816,255		5,200,000			1/19/23		—		(132,304	)
Mexican Peso		DBAB		Sell		41,023,500		2,100,000			1/19/23		—		(7,086	)
Mexican Peso		JPHQ		Buy		18,190,664		890,000			1/19/23		44,325		—
Mexican Peso		MSCO		Buy		34,291,021		1,710,000			1/19/23		51,286		—
Euro		BNPP		Sell		1,507,213		15,679,168	NOK		1/19/23		103,040		(82,967	)
Euro		CITI		Sell		1,620,832		16,863,222	NOK		1/19/23		110,822		(89,021	)
Peruvian Nuevo Sol		FBCO		Sell		360,260		89,646			1/19/23		—		(3,857	)
Peruvian Nuevo Sol		GSCO		Sell		2,310,135		598,900			1/19/23		—		(679	)
Polish Zloty		GSCO		Sell		2,071,115		412,810			1/19/23		—		(44,076	)
South African Rand		GSCO		Buy		86,269,535		4,840,000			1/19/23		129,823		—
South African Rand		HSBC		Sell		59,033,044		3,400,000			1/19/23		—		(781	)
South African Rand		JPHQ		Sell		101,832,261		5,563,932			1/19/23		—		(302,430	)
South African Rand		MSCO		Sell		29,400,000		1,617,645			1/19/23		—		(76,033	)
South Korean Won		MSCO		Sell		3,000,330,000		2,120,000			1/19/23		—		(157,725	)
South Korean Won		UBSW		Buy		2,860,687,500		2,190,000			1/19/23		—		(18,286	)
Thai Baht		BNYM		Buy		287,716,456		7,631,872			1/19/23		571,424		—
Thai Baht		BZWS		Buy		12,309,507		333,546			1/19/23		17,419		—
Thai Baht		CITI		Sell		16,317,279		460,030			1/19/23		—		(5,204	)
Thai Baht		JPHQ		Buy		35,383,673		958,500			1/19/23		50,350		—
Thai Baht		JPHQ		Sell		320,017,333		8,659,970			1/19/23		—		(464,281	)
Turkish Lira		GSCO		Buy		24,075,000		1,250,000			1/19/23		6,220		—
Turkish Lira		GSCO		Sell		24,008,451		1,192,670			1/19/23		—		(60,078	)
British Pound		MSCO		Sell		725,000		875,917			1/20/23		538		—
Euro		BOFA		Sell		370,000		368,653			1/30/23		—		(18,287	)
Euro		BZWS		Sell		115,000		114,308			1/30/23		—		(5,957	)
Brazilian Real		BNYM		Buy		209,299		40,000			2/02/23		—		(168	)
Brazilian Real		CITI		Buy		7,918,561		1,446,397			2/02/23		60,600		—
Brazilian Real		GSCO		Buy		8,658,398		1,618,422			2/02/23		29,374		—
Brazilian Real		GSCO		Sell		7,304,560		1,310,000			2/02/23		—		(80,145	)
Brazilian Real		HSBC		Buy		3,231,216		600,000			2/02/23		14,939		—
Brazilian Real		JPHQ		Sell		9,784,644		1,830,000			2/02/23		—		(32,134	)
South Korean Won		MSCO		Buy		995,638,301		742,010			2/09/23		15,391		(889	)
South Korean Won		MSCO		Sell		4,617,677,332		3,292,270			2/09/23		226		(216,591	)
Indonesian Rupiah		CITI		Buy		890,881,539		60,778			2/22/23		—		(4,215	)
Indonesian Rupiah		GSCO		Sell		26,370,000,000		1,800,000			2/22/23		125,742		—

74 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Forward Exchange Contracts (continued)
Currency	Counterpartya		Type		Quantity		Contract Amount*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Indonesian Rupiah		JPHQ		Buy		87,150,147,032		5,964,286			2/22/23	$	—	$	(431,036	)
Indonesian Rupiah		JPHQ		Sell		29,181,428,571		1,964,286			2/22/23		111,528		—
Indonesian Rupiah		SCBL		Sell		32,489,600,000		2,200,000			2/22/23		137,203		—
British Pound		JPHQ		Sell		550,000		657,256			2/28/23		—		(7,401	)
Danish Krone		JPHQ		Buy		700,000		97,660			2/28/23		1,036		—
Euro		JPHQ		Sell		1,550,000		1,604,493			2/28/23		—		(19,610	)
Polish Zloty		JPHQ		Buy		200,000		43,421			2/28/23		522		—
Swedish Krona		JPHQ		Sell		5,200,000		489,071			2/28/23		—		(9,083	)
Swiss Franc		JPHQ		Sell		350,000		370,303			2/28/23		—		(3,659	)
Singapore Dollar		BNPP		Sell		129,057		140,000	AUD		3/15/23		478		—
Singapore Dollar		BZWS		Sell		129,173		140,000	AUD		3/15/23		1,982		(1,589	)
Australian Dollar		DBAB		Buy		850,000		552,349			3/15/23		27,184		—
Australian Dollar		DBAB		Sell		640,000		417,975			3/15/23		—		(18,379	)
Australian Dollar		HSBC		Sell		600,000		390,227			3/15/23		—		(18,855	)
Australian Dollar		JPHQ		Sell		2,600,000		1,689,806			3/15/23		—		(82,882	)
Australian Dollar		SSBT		Sell		48,425		32,900			3/15/23		—		(116	)
Australian Dollar		UBSW		Buy		3,460,297		2,248,901			3/15/23		110,340		—
British Pound		BOFA		Buy		200,000		229,227			3/15/23		12,537		—
British Pound		DBAB		Buy		200,000		229,254			3/15/23		12,510		—
British Pound		DBAB		Sell		100,000		120,816			3/15/23		—		(66	)
British Pound		JPHQ		Sell		20,505		24,900			3/15/23		113		—
British Pound		MSCO		Sell		500,000		587,921			3/15/23		—		(16,490	)
British Pound		SSBT		Sell		200,000		230,607			3/15/23		—		(11,157	)
British Pound		UBSW		Buy		300,000		355,327			3/15/23		7,320		—
Chinese Yuan		GSCO		Sell		436,301		61,400			3/15/23		—		(1,032	)
Euro		HSBC		Sell		62,544		65,700			3/15/23		98		—
Chinese Yuan		SCBL		Sell		744,753		100,000	EUR		3/15/23		775		(2,455	)
Indian Rupee		BNPP		Sell		1,010,826		12,300			3/15/23		—		(46	)
Indonesian Rupiah		HSBC		Sell		267,079,010		17,000			3/15/23		50		—
Indonesian Rupiah		UBSW		Buy		2,206,962,800		140,000			3/15/23		65		—
Japanese Yen		DBAB		Buy		19,001,468		140,000			3/15/23		—		(421	)
South Korean Won		JPHQ		Sell		310,438,400		32,000,000	JPY		3/15/23		1,136		(2,387	)
Japanese Yen		MSCO		Sell		5,804,559		42,500			3/15/23		—		(139	)
New Zealand Dollar		GSCO		Buy		140,000		86,658			3/15/23		1,679		—
New Zealand Dollar		SSBT		Sell		140,000		87,392			3/15/23		—		(945	)
New Zealand Dollar		UBSW		Buy		400,000		249,395			3/15/23		2,997		—
Philippine Peso		DBAB		Sell		17,304,000		300,000			3/15/23		—		(5,515	)
Philippine Peso		UBSW		Sell		967,898		17,000			3/15/23		—		(89	)
Singapore Dollar		JPHQ		Buy		602,606		440,000			3/15/23		3,461		—
South Korean Won		CITI		Buy		265,058,000		200,000			3/15/23		1,768		—
South Korean Won		GSCO		Sell		30,829,500		23,400			3/15/23		—		(68	)
Taiwan Dollar		CITI		Sell		6,074,240		200,000			3/15/23		1,404		—
Taiwan Dollar		HSBC		Sell		406,712		13,500			3/15/23		203		—
Taiwan Dollar		JPHQ		Sell		1,152,539		36,800			3/15/23		—		(882	)
Thai Baht		UBSW		Buy		4,930,814		140,000			3/15/23		1,357		—
Thai Baht		UBSW		Sell		1,923,219		52,800			3/15/23		—		(2,335	)
Philippine Peso		MSCO		Buy		31,070,000		520,000			3/16/23		28,557		—
Singapore Dollar		JPHQ		Sell		434,465		310,000	EUR		3/17/23		19,740		(14,277	)
Indian Rupee		JPHQ		Sell		26,992,000		320,000			3/17/23		—		(9,623	)
Indian Rupee		SCBL		Buy		61,309,000		740,000			3/17/23		8,698		—
Euro		GSCO		Sell		440,000		617,758	SGD		3/17/23		19,196		(26,141	)
Euro		JPHQ		Buy		1,470,000		1,534,518			3/31/23		9,074		—
Euro		JPHQ		Sell		2,300,000		2,585,108			3/31/23		169,964		—
Singapore Dollar		BNPP		Buy		13,000,000		9,502,312			4/18/23		72,680		—
Singapore Dollar		BOFA		Buy		2,000,000		1,459,162			4/18/23		13,914		—
Singapore Dollar		CITI		Buy		2,000,000		1,461,828			4/18/23		11,248		—

franklintempleton.com Semiannual Report 75

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Forward Exchange Contracts (continued)
Currency	Counterpartya		Type		Quantity		Contract Amount*		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Singapore Dollar		GSCO		Sell		11,459,342		8,000,000		4/18/23	$	—	$	(440,238	)
Singapore Dollar		HSBC		Buy		2,000,000		1,460,600		4/18/23		12,476		—
Singapore Dollar		HSBC		Sell		2,865,230		2,000,000		4/18/23		—		(110,350	)
Singapore Dollar		MSCO		Buy		2,000,000		1,459,854		4/18/23		13,222		—
Singapore Dollar		MSCO		Sell		2,864,620		2,000,000		4/18/23		—		(109,901	)
Singapore Dollar		SCBL		Buy		2,000,000		1,461,831		4/18/23		11,245		—
Singapore Dollar		SSBT		Sell		5,730,960		4,000,000		4/18/23		—		(221,068	)
Indian Rupee		CITI		Sell		80,545,000		1,000,000		5/22/23		20,300		—
Indian Rupee		GSCO		Buy		96,569,400		1,200,000		5/22/23		—		(25,389	)
Indian Rupee		HSBC		Buy		121,900		1,516		5/22/23		—		(33	)
Indian Rupee		SCBL		Sell		80,547,500		1,000,000		5/22/23		20,270		—
Indian Rupee		UBSW		Buy		64,401,200		800,000		5/22/23		—		(16,664	)
Australian Dollar		DBAB		Buy		3,941,622		2,835,044		5/31/23		—		(138,947	)
Australian Dollar		HSBC		Sell		3,941,622		2,833,749		5/31/23		137,652		—
Australian Dollar		UBSW		Buy		50,000		34,051		6/21/23		171		—
Hong Kong Dollar		BOFA		Sell		10,931,200		1,400,000		6/21/23		104		—
Indonesian Rupiah		BNPP		Buy		20,055,410,000		1,300,000		6/21/23		—		(29,871	)
Indonesian Rupiah		BNPP		Sell		24,775,536,000		1,600,000		6/21/23		30,940		—
Indonesian Rupiah		BZWS		Buy		7,852,500,000		500,000		6/21/23		—		(2,693	)
Indonesian Rupiah		CITI		Buy		7,853,000,000		500,000		6/21/23		—		(2,662	)
Indonesian Rupiah		HSBC		Sell		1,563,941,000		100,000		6/21/23		954		—
Indonesian Rupiah		JPHQ		Sell		12,374,136,000		800,000		6/21/23		16,334		—
Indonesian Rupiah		SCBL		Buy		6,140,800,000		400,000		6/21/23		—		(11,097	)
Indonesian Rupiah		SCBL		Sell		12,352,000,000		800,000		6/21/23		17,735		—
Indonesian Rupiah		UBSW		Buy		9,276,120,000		600,000		6/21/23		—		(12,534	)
Chinese Yuan		BNPP		Buy		13,705,291		2,040,000		8/21/23		—		(57,477	)
Chinese Yuan		BNPP		Sell		9,474,234		1,400,000		8/21/23		29,516		—
Chinese Yuan		BZWS		Buy		9,334,500		1,400,000		8/21/23		—		(49,729	)
Chinese Yuan		CITI		Sell		7,011,700		1,000,000		8/21/23		—		(14,269	)
Chinese Yuan		DBAB		Buy		9,409,946		1,400,000		8/21/23		—		(38,815	)
Chinese Yuan		DBAB		Sell		7,025,000		1,000,000		8/21/23		—		(16,193	)
Chinese Yuan		GSCO		Sell		7,177,730		1,060,000		8/21/23		21,714		—
Chinese Yuan		HSBC		Buy		9,366,329		1,400,000		8/21/23		—		(45,125	)
Chinese Yuan		JPHQ		Buy		20,912,380		3,100,000		8/21/23		9,284		(84,228	)
Chinese Yuan		JPHQ		Sell		9,474,360		1,400,000		8/21/23		29,498		—
Chinese Yuan		SSBT		Sell		7,010,000		1,000,000		8/21/23		—		(14,023	)
Philippine Peso		DBAB		Buy		57,410,000		1,000,000		9/20/23		10,218		—
Philippine Peso		JPHQ		Buy		57,400,000		1,000,000		9/20/23		10,042		—
Singapore Dollar		BNPP		Sell		1,000,000		703,550		9/25/23		—		(36,697	)
Singapore Dollar		BOFA		Buy		2,400,000		1,758,950		9/25/23		17,642		—
Singapore Dollar		BOFA		Sell		5,212,801		3,704,007		9/25/23		—		(154,752	)
Singapore Dollar		CITI		Buy		2,400,000		1,759,274		9/25/23		17,318		—
Singapore Dollar		DBAB		Buy		1,000,000		733,850		9/25/23		6,397		—
Singapore Dollar		GSCO		Buy		1,600,000		1,173,288		9/25/23		11,107		—
Singapore Dollar		GSCO		Sell		1,800,000		1,276,970		9/25/23		—		(55,474	)
Singapore Dollar		HSBC		Buy		1,200,000		879,282		9/25/23		9,014		—
Singapore Dollar		HSBC		Sell		840,564		600,000		9/25/23		—		(22,224	)
Singapore Dollar		JPHQ		Buy		3,440,000		2,521,975		9/25/23		24,474		—
Singapore Dollar		JPHQ		Sell		1,401,000		1,000,000		9/25/23		—		(37,086	)
Singapore Dollar		MSCO		Sell		5,441,328		3,871,969		9/25/23		—		(155,957	)
Singapore Dollar		UBSW		Buy		1,320,000		968,310		9/25/23		8,816		—
Singapore Dollar		UBSW		Sell		3,400,840		2,408,005		9/25/23		—		(109,455	)
Indian Rupee		DBAB		Sell		42,436,500		500,000		10/16/23		—		(12,332	)
Indian Rupee		GSCO		Buy		42,700,000		500,000		10/16/23		15,514		—
Indian Rupee		JPHQ		Sell		263,500		3,085		10/16/23		—		(96	)
Chinese Yuan		BNPP		Sell		20,611,080		3,000,000		12/21/23		—		(182	)

76 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Forward Exchange Contracts (continued)
Currency	Counterpartya		Type		Quantity		Contract Amount*		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Chinese Yuan		DBAB		Sell		20,622,720		3,000,000		12/21/23	$	—	$	(1,876	)
Philippine Peso		DBAB		Sell		58,320,000		1,000,000		9/20/24		—		(24,776	)
Philippine Peso		JPHQ		Sell		58,310,000		1,000,000		9/20/24		—		(24,600	)
Euro		JPHQ		Sell		2,900,000		3,396,074		3/31/25		240,480		—
Total Forward Exchange Contracts											$	9,717,341	$	(12,374,543	)
Net unrealized appreciation (depreciation)													$	(2,657,202	)

* In U.S. dollars unless otherwise indicated.

^aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.

^bA portion or all of the contracts are owned by K2 Holdings Investment Corp., a wholly-owned subsidiary of the Fund. See Note 1(i).

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

Credit Default Swap Contracts
Description	Annual Payment Rate Received (Paid)			Payment Frequency				Maturity Date		Notional Amounta			Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
Centrally Cleared Swap Contracts
Contracts to Buy Protectionc
Single Name
Government of Indonesia		(1.00	)%		Quarterly				12/20/27		300,000		$	(1,017	)	$	8,400		$	(9,417	)
Government of South Africa		(1.00	)%		Quarterly				12/20/27		720,000			44,601			72,955			(28,354	)
Transocean Inc.		(1.00	)%		Quarterly				12/20/25		204,000			51,850			54,060			(2,210	)
Traded Index
CDX.NA.HY.39		(5.00	)%		Quarterly				12/20/27		242,000			(4,540	)		5,136			(9,676	)
CDX.NA.HY.39		(5.00	)%		Quarterly				12/20/27		3,565,000			(66,875	)		73,779			(140,654	)
CDX.NA.HY.CDSI		(1.00	)%		Quarterly				12/20/27		600,000			(6,540	)		2,373			(8,913	)
iTraxx Europe Crossover S38		(5.00	)%		Quarterly				12/20/27		300,000	EUR		(5,316	)		12,454			(17,770	)
Total Centrally Cleared Swap Contracts													$	12,163		$	229,157		$	(216,994	)
OTC Swap Contracts
Contracts to Buy Protectionc
Single Name						Counterparty
Air France-KLM		(5.00	)%		Quarterly		CITI		12/20/27		27,000	EUR		1,754			2,932			(1,178	)
Air France-KLM		(5.00	)%		Quarterly		CITI		12/20/27		38,000	EUR		2,468			4,036			(1,568	)
Air France-KLM		(5.00	)%		Quarterly		CITI		12/20/27		70,000	EUR		4,547			5,350			(803	)
Air France-KLM		(5.00	)%		Quarterly		CITI		12/20/27		80,000	EUR		(20,502	)		8,047			(28,549	)
Air France-KLM		(5.00	)%		Quarterly		CITI		12/20/27		132,000	EUR		8,574			10,650			(2,076	)
Air France-KLM		(5.00	)%		Quarterly		GSCO		12/20/22		60,000	EUR		(609	)		(114	)		(495	)
Air France-KLM		(5.00	)%		Quarterly		JPHQ		6/20/24		200,000	EUR		(564	)		4,063			(4,627	)
Air France-KLM		(5.00	)%		Quarterly		MSCO		6/20/24		100,000	EUR		(282	)		2,636			(2,918	)
Ally Financial Inc.		(5.00	)%		Quarterly		BNPP		12/20/27		671,000			(65,767	)		(51,152	)		(14,615	)
Ally Financial Inc.		(5.00	)%		Quarterly		BNPP		12/20/27		213,000			(20,877	)		(17,128	)		(3,749	)
Ally Financial Inc.		(5.00	)%		Quarterly		BNPP		12/20/27		126,000			(12,350	)		(10,972	)		(1,378	)
Ally Financial Inc.		(5.00	)%		Quarterly		CITI		12/20/24		224,000			(15,605	)		(11,245	)		(4,360	)
Ally Financial Inc.		(5.00	)%		Quarterly		GSCO		12/20/27		375,000			(36,755	)		(30,651	)		(6,104	)
Ally Financial Inc.		(5.00	)%		Quarterly		GSCO		12/20/27		76,000			(7,449	)		(6,798	)		(651	)
Ally Financial Inc.		(5.00	)%		Quarterly		GSCO		12/20/27		81,000			(7,939	)		(6,396	)		(1,543	)
Ally Financial Inc.		(5.00	)%		Quarterly		GSCO		12/20/27		63,000			(6,175	)		(6,010	)		(165	)

franklintempleton.com Semiannual Report 77

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Credit Default Swap Contracts (continued)
Description	Annual Payment Rate Received (Paid)			Payment Frequency		Counterparty		Maturity Date		Notional Amounta			Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name Counterparty (continued)
Ally Financial Inc.		(5.00	)%		Quarterly		GSCO		12/20/27		66,000		$	(6,469	)	$	(5,853	)	$	(616	)
Ally Financial Inc.		(5.00	)%		Quarterly		JPHQ		12/20/27		641,000			(62,826	)		(55,903	)		(6,923	)
Ally Financial Inc.		(5.00	)%		Quarterly		MSCO		12/20/24		190,000			(13,236	)		(9,487	)		(3,749	)
American Airlines Inc.		(5.00	)%		Quarterly		BZWS		6/20/23		216,000			(2,486	)		4,010			(6,496	)
American Airlines Inc.		(5.00	)%		Quarterly		BZWS		12/20/23		111,000			185			2,995			(2,810	)
American Airlines Inc.		(5.00	)%		Quarterly		BZWS		12/20/23		154,000			257			3,548			(3,291	)
American Airlines Inc.		(5.00	)%		Quarterly		BZWS		6/20/24		143,000			4,499			4,633			(134	)
American Airlines Inc.		(5.00	)%		Quarterly		BZWS		6/20/24		286,000			8,997			18,597			(9,600	)
American Airlines Inc.		(5.00	)%		Quarterly		BZWS		6/20/24		178,000			5,600			19,728			(14,128	)
American Airlines Inc.		(5.00	)%		Quarterly		BZWS		12/20/24		78,000			4,515			10,860			(6,345	)
American Airlines Inc.		(5.00	)%		Quarterly		BZWS		6/20/25		72,000			6,660			8,853			(2,193	)
American Airlines Inc.		(5.00	)%		Quarterly		BZWS		6/20/25		288,000			26,642			33,611			(6,969	)
American Airlines Inc.		(5.00	)%		Quarterly		BZWS		12/20/26		31,000			4,723			3,978			745
American Airlines Inc.		(5.00	)%		Quarterly		BZWS		12/20/26		116,000			17,673			7,984			9,689
American Airlines Inc.		(5.00	)%		Quarterly		CITI		6/20/26		103,000			14,240			7,066			7,174
American Airlines Inc.		(5.00	)%		Quarterly		GSCO		12/20/23		66,000			110			4,094			(3,984	)
American Airlines Inc.		(5.00	)%		Quarterly		GSCO		12/20/23		155,000			258			7,042			(6,784	)
American Airlines Inc.		(5.00	)%		Quarterly		GSCO		12/20/23		483,000			805			7,634			(6,829	)
American Airlines Inc.		(5.00	)%		Quarterly		GSCO		6/20/24		41,000			1,290			3,339			(2,049	)
American Airlines Inc.		(5.00	)%		Quarterly		GSCO		6/20/24		189,000			5,946			16,896			(10,950	)
American Airlines Inc.		(5.00	)%		Quarterly		GSCO		12/20/24		70,000			4,052			10,234			(6,182	)
American Airlines Inc.		(5.00	)%		Quarterly		JPHQ		12/20/25		89,000			10,915			11,080			(165	)
American Axle & Manufacturing Inc.		(5.00	)%		Quarterly		JPHQ		6/20/25		66,000			(3,417	)		(3,004	)		(413	)
American Axle & Manufacturing Inc.		(5.00	)%		Quarterly		JPHQ		6/20/27		134,000			(3,375	)		(1,678	)		(1,697	)
American Axle & Manufacturing Inc.		(5.00	)%		Quarterly		MSCO		6/20/25		106,000			(5,488	)		(4,091	)		(1,397	)
American Axle & Manufacturing Inc.		(5.00	)%		Quarterly		MSCO		6/20/27		335,000			(8,437	)		(4,565	)		(3,872	)
American Axle & Manufacturing Inc.		(5.00	)%		Quarterly		MSCO		6/20/27		134,000			(3,375	)		(2,170	)		(1,205	)
American Axle & Manufacturing Inc.		(5.00	)%		Quarterly		MSCO		6/20/27		67,000			(1,687	)		701			(2,388	)
ArcelorMittal SA		(5.00	)%		Quarterly		BOFA		12/20/27		127,000	EUR		(17,386	)		(8,028	)		(9,358	)
ArcelorMittal SA		(5.00	)%		Quarterly		JPHQ		12/20/27		254,000	EUR		(34,771	)		(16,163	)		(18,608	)
ArcelorMittal SA		(5.00	)%		Quarterly		JPHQ		12/20/27		63,000	EUR		(8,624	)		(5,462	)		(3,162	)
ArcelorMittal SA		(5.00	)%		Quarterly		JPHQ		12/20/27		63,000	EUR		(8,624	)		(5,066	)		(3,558	)
ArcelorMittal SA		(5.00	)%		Quarterly		JPHQ		12/20/27		63,000	EUR		(8,624	)		(4,965	)		(3,659	)
BMW AG		(1.00	)%		Quarterly		BZWS		12/20/27		286,000	EUR		(4,510	)		3,709			(8,219	)
BMW AG		(1.00	)%		Quarterly		MSCO		12/20/27		281,000	EUR		(4,431	)		2,901			(7,332	)
Carnival Corp.		(1.00	)%		Quarterly		BZWS		12/20/26		66,000			21,461			26,256			(4,795	)
Carnival Corp.		(1.00	)%		Quarterly		BZWS		12/20/26		66,000			21,461			26,578			(5,117	)
Carnival Corp.		(1.00	)%		Quarterly		BZWS		12/20/26		66,000			21,461			26,722			(5,261	)
Carnival Corp.		(1.00	)%		Quarterly		BZWS		12/20/26		132,000			42,922			46,280			(3,358	)
Carnival Corp.		(1.00	)%		Quarterly		BZWS		12/20/26		132,000			42,922			52,677			(9,755	)
Carnival Corp.		(1.00	)%		Quarterly		CITI		12/20/26		66,000			21,461			22,590			(1,129	)
Ceconomy AG		(1.00	)%		Quarterly		MSCO		6/20/23		12,000	EUR		490			1,155			(665	)
Ceconomy AG		(1.00	)%		Quarterly		MSCO		12/20/23		26,000	EUR		2,505			3,068			(563	)
Ceconomy AG		(1.00	)%		Quarterly		MSCO		12/20/23		26,000	EUR		2,505			3,079			(574	)
Ceconomy AG		(1.00	)%		Quarterly		MSCO		12/20/23		26,000	EUR		2,505			3,215			(710	)

78 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Credit Default Swap Contracts (continued)
Description	Annual Payment Rate Received (Paid)			Payment Frequency		Counterparty		Maturity Date		Notional Amounta			Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name Counterparty (continued)
Ceconomy AG		(1.00	)%		Quarterly		MSCO		12/20/23		52,000	EUR		5,010		$	5,801		$	(791	)
Compagnie de Saint-Gobain SA		(1.00	)%		Quarterly		CITI		12/20/27		511,000	EUR		(825	)		11,980			(12,805	)
Compagnie de Saint-Gobain SA		(1.00	)%		Quarterly		MSCO		12/20/27		306,000	EUR		(494	)		7,189			(7,683	)
Daimler Truck Holding AG		(1.00	)%		Quarterly		GSCO		12/20/27		287,000	EUR		(3,086	)		4,360			(7,446	)
Ford Motor Credit Co. LLC		(5.00	)%		Quarterly		CITI		12/20/27		408,000			(39,477	)		(23,643	)		(15,834	)
Ford Motor Credit Co. LLC		(5.00	)%		Quarterly		GSCO		12/20/27		4,000			(387	)		(249	)		(138	)
Ford Motor Credit Co. LLC		(5.00	)%		Quarterly		MSCO		12/20/27		143,000			(13,836	)		(11,230	)		(2,606	)
Ford Motor Credit Co. LLC		(5.00	)%		Quarterly		MSCO		12/20/27		57,000			(5,515	)		(2,352	)		(3,163	)
Government of Argentina		(5.00	)%		Quarterly		BZWS		12/20/26		696,000			441,276			312,798			128,478
Government of Argentina		(5.00	)%		Quarterly		CITI		12/20/26		200,000			126,803			128,391			(1,588	)
Government of Argentina		(5.00	)%		Quarterly		CITI		12/20/26		800,000			507,214			575,020			(67,806	)
Government of Argentina		(5.00	)%		Quarterly		GSCO		12/20/26		253,000			160,406			111,891			48,515
Government of Argentina		(5.00	)%		Quarterly		GSCO		12/20/26		842,000			533,843			372,030			161,813
Government of Argentina		(5.00	)%		Quarterly		JPHQ		12/20/26		253,000			160,406			111,786			48,620
Government of Egypt		(1.00	)%		Quarterly		BZWS		6/20/24		695,000			51,507			44,246			7,261
Government of Egypt		(1.00	)%		Quarterly		BZWS		6/20/24		520,000			38,537			50,100			(11,563	)
Government of Egypt		(1.00	)%		Quarterly		BZWS		6/20/24		610,000			45,207			94,683			(49,476	)
Government of Egypt		(1.00	)%		Quarterly		BZWS		12/20/27		475,000			117,915			135,607			(17,692	)
Government of Italy		(1.00	)%		Quarterly		BOFA		6/20/24		132,000			(1,152	)		965			(2,117	)
Government of Italy		(1.00	)%		Quarterly		JPHQ		6/20/24		218,000			(1,902	)		742			(2,644	)
Government of Japan		(1.00	)%		Quarterly		BZWS		12/20/27		328,000			(12,030	)		(10,206	)		(1,824	)
Government of Japan		(1.00	)%		Quarterly		BZWS		12/20/27		263,000			(9,646	)		(8,153	)		(1,493	)
Government of Japan		(1.00	)%		Quarterly		BZWS		12/20/27		134,000			(4,915	)		(4,145	)		(770	)
Government of Japan		(1.00	)%		Quarterly		GSCO		12/20/27		460,000			(16,872	)		(14,115	)		(2,757	)
Government of Japan		(1.00	)%		Quarterly		GSCO		12/20/27		263,000			(9,646	)		(8,160	)		(1,486	)
Government of Japan		(1.00	)%		Quarterly		GSCO		12/20/27		198,000			(7,262	)		(6,814	)		(448	)
Government of Japan		(1.00	)%		Quarterly		GSCO		12/20/27		133,000			(4,878	)		(4,087	)		(791	)
Government of Mexico		(1.00	)%		Quarterly		BZWS		6/20/26		680,000			(2,555	)		1,857			(4,412	)
Government of Turkey		(1.00	)%		Quarterly		BZWS		6/20/24		1,175,000			53,809			99,439			(45,630	)
Government of Turkey		(1.00	)%		Quarterly		CITI		12/20/23		610,000			16,179			34,487			(18,308	)
Government of Turkey		(1.00	)%		Quarterly		CITI		6/20/24		500,000			22,897			42,480			(19,583	)
Government of Turkey		(1.00	)%		Quarterly		GSCO		12/20/23		1,220,000			32,357			54,588			(22,231	)
Government of Turkey		(1.00	)%		Quarterly		GSCO		6/20/24		1,300,000			59,533			117,172			(57,639	)
Government of Turkey		(1.00	)%		Quarterly		GSCO		6/20/24		1,570,000			71,898			148,772			(76,874	)
Groupe Casino		(5.00	)%		Quarterly		BZWS		12/20/22		80,000	EUR		(618	)		434			(1,052	)
Groupe Casino		(5.00	)%		Quarterly		JPHQ		12/20/22		10,000	EUR		(77	)		54			(131	)
HP Inc.		(1.00	)%		Quarterly		GSCO		12/20/27		308,000			2,672			12,508			(9,836	)
HP Inc.		(1.00	)%		Quarterly		JPHQ		12/20/27		335,000			2,907			11,745			(8,838	)
HSBC Holdings PLC		(1.00	)%		Quarterly		JPHQ		12/20/27		403,000	EUR		7,554			15,060			(7,506	)

franklintempleton.com Semiannual Report 79

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Credit Default Swap Contracts (continued)
Description	Annual Payment Rate Received (Paid)			Payment Frequency		Counterparty		Maturity Date		Notional Amounta			Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name Counterparty (continued)
Iceland Bondco		(5.00	)%		Quarterly		GSCO		6/20/25		36,000	EUR		5,433		$	5,189		$	244
Iceland Bondco		(5.00	)%		Quarterly		JPHQ		6/20/25		24,000	EUR		3,622			846			2,776
JFE Holdings Inc.		(1.00	)%		Quarterly		BZWS		12/20/27		26,519,000	JPY		(4,844	)		(1,877	)		(2,967	)
JFE Holdings Inc.		(1.00	)%		Quarterly		GSCO		12/20/27		26,520,000	JPY		(4,845	)		(3,583	)		(1,262	)
JFE Holdings Inc.		(1.00	)%		Quarterly		GSCO		12/20/27		13,260,000	JPY		(2,422	)		(1,309	)		(1,113	)
JFE Holdings Inc.		(1.00	)%		Quarterly		GSCO		12/20/27		13,260,000	JPY		(2,422	)		(1,028	)		(1,394	)
Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		26,354,000	JPY		(6,229	)		(4,061	)		(2,168	)
Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		13,177,000	JPY		(3,115	)		(2,574	)		(541	)
Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		13,177,000	JPY		(3,115	)		(2,057	)		(1,058	)
Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		13,177,000	JPY		(3,115	)		(1,610	)		(1,505	)
Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		13,177,000	JPY		(3,115	)		(2,594	)		(521	)
Kobe Steel Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		7,114,000	JPY		(28	)		100			(128	)
Kobe Steel Ltd.		(1.00	)%		Quarterly		JPHQ		12/20/27		13,320,000	JPY		(52	)		232			(284	)
Kohl’s Corp.		(1.00	)%		Quarterly		GSCO		6/20/26		139,000			10,136			2,016			8,120
Lanxess AG		(1.00	)%		Quarterly		GSCO		12/20/27		149,000	EUR		6,332			10,461			(4,129	)
Lanxess AG		(1.00	)%		Quarterly		JPHQ		12/20/27		746,000	EUR		31,696			57,376			(25,680	)
Lloyds Bank		(1.00	)%		Quarterly		BZWS		12/20/27		207,000	EUR		5,046			12,314			(7,268	)
Lloyds Bank		(1.00	)%		Quarterly		CITI		12/20/27		72,000	EUR		1,755			3,414			(1,659	)
Lloyds Bank		(1.00	)%		Quarterly		CITI		12/20/27		490,000	EUR		11,944			22,514			(10,570	)
Lloyds Bank		(1.00	)%		Quarterly		JPHQ		12/20/27		69,000	EUR		1,682			5,209			(3,527	)
Louis Dreyfus Co.		(5.00	)%		Quarterly		JPHQ		12/20/27		106,000	EUR		(18,648	)		(12,796	)		(5,852	)
Mitsui OSK Lines		(1.00	)%		Quarterly		BZWS		12/20/27		14,060,000	JPY		(1,094	)		(749	)		(345	)
Mitsui OSK Lines		(1.00	)%		Quarterly		GSCO		12/20/27		6,585,000	JPY		(513	)		(371	)		(142	)
Mitsui OSK Lines		(1.00	)%		Quarterly		GSCO		12/20/27		13,170,000	JPY		(1,025	)		(133	)		(892	)
Mitsui OSK Lines		(1.00	)%		Quarterly		GSCO		12/20/27		13,170,000	JPY		(1,025	)		–			(1,025	)
Mitsui OSK Lines		(1.00	)%		Quarterly		GSCO		12/20/27		6,585,000	JPY		(513	)		109			(622	)
Mitsui OSK Lines		(1.00	)%		Quarterly		GSCO		12/20/27		13,170,000	JPY		(1,025	)		220			(1,245	)
Mitsui OSK Lines		(1.00	)%		Quarterly		JPHQ		12/20/27		13,170,000	JPY		(1,025	)		(836	)		(189	)
Next PLC		(1.00	)%		Quarterly		BZWS		12/20/27		43,000	EUR		1,941			3,033			(1,092	)
Next PLC		(1.00	)%		Quarterly		CITI		12/20/27		362,000	EUR		16,340			25,538			(9,198	)
Next PLC		(1.00	)%		Quarterly		GSCO		12/20/27		144,000	EUR		6,500			10,216			(3,716	)
Nippon Paper Industries Co. Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		3,565,000	JPY		1,077			1,647			(570	)
Nippon Paper Industries Co. Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		28,523,000	JPY		8,617			10,689			(2,072	)
Nippon Paper Industries Co. Ltd.		(1.00	)%		Quarterly		JPHQ		12/20/27		14,262,000	JPY		4,309			6,865			(2,556	)
Nippon Steel Corp.		(1.00	)%		Quarterly		BZWS		12/20/27		33,149,000	JPY		(6,728	)		(3,476	)		(3,252	)
Nippon Steel Corp.		(1.00	)%		Quarterly		BZWS		12/20/27		13,260,000	JPY		(2,691	)		(1,629	)		(1,062	)
Nippon Steel Corp.		(1.00	)%		Quarterly		GSCO		12/20/27		13,260,000	JPY		(2,691	)		(2,272	)		(419	)
Nippon Steel Corp.		(1.00	)%		Quarterly		MSCO		12/20/27		26,520,000	JPY		(5,383	)		(4,078	)		(1,305	)
Rakuten Group Inc.		(1.00	)%		Quarterly		BZWS		12/20/24		12,659,000	JPY		5,826			2,040			3,786
Rakuten Group Inc.		(1.00	)%		Quarterly		CITI		12/20/24		28,584,000	JPY		13,155			7,984			5,171
Rakuten Group Inc.		(1.00	)%		Quarterly		JPHQ		12/20/24		14,292,000	JPY		6,577			3,694			2,883
Rakuten Group Inc.		(1.00	)%		Quarterly		JPHQ		6/20/27		473,000	JPY		434			264			170
Rakuten Group Inc.		(1.00	)%		Quarterly		JPHQ		6/20/27		3,263,000	JPY		2,990			2,373			617
Rakuten Group Inc.		(1.00	)%		Quarterly		JPHQ		6/20/27		7,070,000	JPY		6,479			5,284			1,195

80 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Credit Default Swap Contracts (continued)
Description	Annual Payment Rate Received (Paid)			Payment Frequency		Counterparty		Maturity Date		Notional Amounta			Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name Counterparty (continued)
Rakuten Group Inc.		(1.00	)%		Quarterly		JPHQ		12/20/27		7,202,000	JPY		7,147		$	6,027		$	1,120
Simon Property Group LP		(1.00	)%		Quarterly		BNPP		12/20/27		271,000			174			4,193			(4,019	)
Simon Property Group LP		(1.00	)%		Quarterly		BZWS		12/20/27		478,000			307			8,222			(7,915	)
Societe Generale SA		(1.00	)%		Quarterly		BZWS		12/20/23		700,000	EUR		(4,870	)		3,298			(8,168	)
Softbank Group Corp.		(1.00	)%		Quarterly		BZWS		6/20/27		3,561,000	JPY		2,830			3,504			(674	)
Softbank Group Corp.		(1.00	)%		Quarterly		BZWS		6/20/27		6,111,000	JPY		4,857			5,704			(847	)
Softbank Group Corp.		(1.00	)%		Quarterly		BZWS		6/20/27		30,569,000	JPY		24,297			28,724			(4,427	)
Stellantis NV		(5.00	)%		Quarterly		BZWS		12/20/27		73,000	EUR		(11,951	)		(7,722	)		(4,229	)
Stellantis NV		(5.00	)%		Quarterly		CITI		12/20/27		292,000	EUR		(47,803	)		(30,790	)		(17,013	)
Stellantis NV		(5.00	)%		Quarterly		CITI		12/20/27		72,000	EUR		(11,787	)		(8,431	)		(3,356	)
Stena AB		(5.00	)%		Quarterly		BZWS		6/20/24		71,000	EUR		360			(1,658	)		2,018
Stena AB		(5.00	)%		Quarterly		GSCO		6/20/24		15,000	EUR		76			125			(49	)
Stena AB		(5.00	)%		Quarterly		GSCO		6/20/24		22,000	EUR		112			183			(71	)
Stena AB		(5.00	)%		Quarterly		GSCO		12/20/24		273,000	EUR		2,050			(11,373	)		13,423
Stena AB		(5.00	)%		Quarterly		GSCO		6/20/27		14,000	EUR		502			(27	)		529
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		29,000	EUR		1,039			279			760
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		29,000	EUR		1,039			334			705
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		28,000	EUR		1,004			622			382
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		142,000	EUR		5,090			841			4,249
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		157,000	EUR		5,628			1,207			4,421
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		71,000	EUR		2,545			4,457			(1,912	)
TDC A/S		(1.00	)%		Quarterly		BNPP		6/20/27		212,000	EUR		757			10,973			(10,216	)
U.S. Steel Corp.		(5.00	)%		Quarterly		BZWS		12/20/27		26,000			(113	)		1,116			(1,229	)
U.S. Steel Corp.		(5.00	)%		Quarterly		BZWS		12/20/27		66,000			(286	)		3,259			(3,545	)
U.S. Steel Corp.		(5.00	)%		Quarterly		GSCO		12/20/27		66,000			(286	)		1,347			(1,633	)
U.S. Steel Corp.		(5.00	)%		Quarterly		MSCO		12/20/27		66,000			(286	)		982			(1,268	)
U.S. Steel Corp.		(5.00	)%		Quarterly		MSCO		12/20/27		66,000			(286	)		3,247			(3,533	)
U.S. Steel Corp.		(5.00	)%		Quarterly		MSCO		12/20/27		66,000			(286	)		3,507			(3,793	)
U.S. Steel Corp.		(5.00	)%		Quarterly		MSCO		12/20/27		131,000			(568	)		4,153			(4,721	)
UniCredit SpA		(1.00	)%		Quarterly		JPHQ		12/20/27		329,000	EUR		24,519			35,580			(11,061	)
Contracts to Sell Protectionc,d
Single Name
American Axle & Manufacturing Inc.		5.00	%		Quarterly		CITI		6/20/25		90,000			4,660			4,087			573			BB-
American Axle & Manufacturing Inc.		5.00	%		Quarterly		GSCO		12/20/27		67,000			1,017			3,020			(2,003	)		BB-
American Axle & Manufacturing Inc.		5.00	%		Quarterly		MSCO		6/20/25		4,000			207			146			61			BB-
American Axle & Manufacturing Inc.		5.00	%		Quarterly		MSCO		6/20/25		335,000			17,345			14,596			2,749			BB-

franklintempleton.com Semiannual Report 81

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Credit Default Swap Contracts (continued)
Description	Annual Payment Rate Received (Paid)			Payment Frequency		Counterparty		Maturity Date		Notional Amounta		Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
OTC Swap Contracts (continued)
Contracts to Sell Protectionc,d (continued)
Single Name (continued)
Calpine Corp.		5.00	%		Quarterly		JPHQ		12/20/27		22,000	$	1,051		$	(212	)	$	1,263			BB-
Calpine Corp.		5.00	%		Quarterly		JPHQ		12/20/27		264,000		12,612			1,001			11,611			BB-
Kohl’s Corp.		1.00	%		Quarterly		BOFA		6/20/26		141,000		(10,281	)		(9,046	)		(1,235	)		BB+
United Airlines Inc.		5.00	%		Quarterly		MSCO		12/20/27		63,000		(2,062	)		(6,754	)		4,692			B+
United Airlines Inc.		5.00	%		Quarterly		MSCO		12/20/27		63,000		(2,062	)		(5,307	)		3,245			B+
Total OTC Swap Contracts												$	2,349,046		$	2,814,965		$	(465,919	)
Total Credit Default Swap Contracts												$	2,361,209		$	3,044,122		$	(682,913	)

^aIn 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.

^bBased on Standard and Poor’s (S&P) Rating for single name swaps.

^cPerformance 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.

^dThe Fund enters contracts to sell protection to create a long credit position.

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

Cross-Currency Swap Contracts
Description	Payment Frequency		Counterparty		Maturity Date		Notional Amount			Value/Unrealized Appreciation (Depreciation)
OTC Swap Contracts
Receive Floating Rate Overnight SOFR Pay Floating rate Overnight SIBCSORA + 0.41%		Semi-Annually		GSCO		10/14/23	$	4,355,970 5,900,000	SGD	$	5,265
Total Cross-Currency Swap Contracts										$	5,265

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

Interest Rate Swap Contracts
Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts
Receive Fixed 1.34% Pay Floating 3-Month-KDR		Quarterly		12/15/22		46,000,000,000	KRW	$	(139,244	)
Receive Fixed 1.39% Pay Floating 3-Month-KDR		Quarterly		12/15/22		9,600,000,000	KRW		(4,240	)
Receive Floating 3-Month-KDR Pay Fixed rate 2.94%		Quarterly		12/15/22		6,560,000,000	KRW		(87	)
Receive Floating AONIA Pay Fixed rate 3.35%		Annually		2/08/23		10,630,000	AUD		(4,365	)
Receive Fixed 6.03% Pay Floating MIBOR		Annually		3/14/23		340,000,000	INR		1,061
Receive Floating MIBOR Pay Fixed rate 6.03%		Annually		3/14/23		204,000,000	INR		(862	)
Receive Floating MIBOR Pay Fixed rate 6.64%		Annually		3/14/23		136,000,000	INR		(1,229	)

82 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)
Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts (continued)
Receive Fixed 1.81% Pay Floating rate China 7-Day Repo		Quarterly		3/15/23		60,000,000	CNY	$	(9,507	)
Receive Fixed 3.51% Pay Floating 3-Month-KDR		Quarterly		3/21/23		10,200,000,000	KRW		(7,801	)
Receive Fixed 2.63% Pay Floating rate Euro STR		Annually		5/10/23		37,800,000	EUR		(1,039	)
Receive Fixed 4.92% Pay Floating MIBOR		Annually		5/10/23		384,000,000	INR		6,408
Receive Fixed 6.10% Pay Floating MIBOR		Annually		5/10/23		372,000,000	INR		5,087
Receive Floating MIBOR Pay Fixed rate 6.60%		Annually		5/10/23		581,800,000	INR		(1,607	)
Receive Fixed 1.82% Pay Floating rate China 7-Day Repo		Quarterly		6/15/23		60,000,000	CNY		(17,615	)
Receive Fixed 1.96% Pay Floating CNRR007 Index		Quarterly		6/15/23		54,000,000	CNY		(7,980	)
Receive Fixed 2.11% Pay Floating rate China 7-Day Repo		Quarterly		6/15/23		50,000,000	CNY		(3,770	)
Receive Fixed 2.19% Pay Floating CNRR007 Index		Quarterly		6/15/23		88,000,000	CNY		8,043
Receive Fixed 2.20% Pay Floating rate China 7-Day Repo		Quarterly		6/15/23		31,000,000	CNY		3,402
Receive Floating rate China 7-Day Repo Pay Fixed rate 2.19%		Quarterly		6/15/23		38,220,000	CNY		8,960
Receive Fixed 2.15% Pay Floating rate China 7-Day Repo		Quarterly		6/21/23		48,000,000	CNY		(1,510	)
Receive Fixed 2.82% Pay Floating rate Euro STR		Annually		6/21/23		44,600,000	EUR		1,154
Receive Floating rate Euro STR Pay Fixed rate 2.80%		Annually		6/21/23		44,600,000	EUR		(32	)
Receive Floating rate Euro STR Pay Fixed rate 2.88%		Annually		8/02/23		45,000,000	EUR		(1,896	)
Receive Fixed 4.39% Pay Floating 3-Month-KDR		Quarterly		9/15/23		8,700,000,000	KRW		10,318
Receive Fixed 4.24% Pay Floating 3-Month-KDR		Quarterly		9/20/23		8,500,000,000	KRW		5,301
Receive Fixed 4.24% Pay Floating 3-Month-KDR		Quarterly		9/20/23		5,646,000,000	KRW		3,542
Receive Fixed 3.47% Pay Floating rate Overnight SIBCSORA		Semi- Annually		9/23/23		6,040,000	SGD		(17,368	)
Receive Fixed 4.46% Pay Floating 3-Month-KDR		Quarterly		9/23/23		5,660,000,000	KRW		8,317
Receive Floating rate Overnight SOFR Pay Fixed rate 4.20%		Annually		9/23/23		4,160,000			14,919
Receive Fixed 4.16% Pay Floating 3-Month-KDR		Quarterly		10/26/23		8,210,000,000	KRW		6,460
Receive Floating 3-Month-KDR Pay Fixed rate 3.84%		Quarterly		10/26/23		8,210,000,000	KRW		10,901
Receive Fixed 2.30% Pay Floating rate China 7-Day Repo		Quarterly		12/21/23		44,000,000	CNY		1,416
Receive Fixed 2.96% Pay Floating rate 3-Month-BKBM		Quarterly		12/21/23		10,802,700	NZD		(20,857	)
Receive Fixed 3.88% Pay Floating 3-Month-KDR		Quarterly		12/21/23		4,000,000,000	KRW		(4,901	)
Receive Floating rate Overnight SOFR Pay Fixed rate 4.83%		Annually		12/21/23		6,000,000			2,716

franklintempleton.com Semiannual Report 83

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)
Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts (continued)
Receive Floating rate 1 Year-SOFR Pay Fixed rate 1.36%		Annually		3/08/24		4,000,000		$	167,316
Receive Fixed 4.96% Pay Floating rate Overnight SOFR		Annually		3/15/24		6,280,000			6,942
Receive Fixed 4.96% Pay Floating rate Overnight SOFR		Annually		3/15/24		6,300,000			6,663
Receive Fixed 7.36% Pay Floating MIBOR		Annually		3/15/24		624,000,000	INR		51,845
Receive Floating MIBOR Pay Fixed rate 6.58%		Annually		3/15/24		364,000,000	INR		1,349
Receive Floating rate Overnight SIBCSORA Pay Fixed rate 4.16%		Semi-Annually		3/15/24		17,200,000	SGD		(26,062	)
Receive Fixed 5.50% Pay Floating MIBOR		Semi-Annually		4/11/24		228,480,000	INR		907
Receive Floating MIBOR Pay Fixed rate 6.51%		Semi-Annually		4/11/24		391,680,000	INR		(2,523	)
Receive Floating 3-Month-KDR Pay Fixed rate 3.51%		Quarterly		8/25/24		5,560,000,000	KRW		13,742
Receive Floating 3-Month-KDR Pay Fixed rate 3.82%		Quarterly		9/20/24		5,720,000,000	KRW		15
Receive Fixed 9.47% Pay Floating Banxico Mexico 1 Month Rate		Monthly		10/22/24		82,400,000	MXN		(39,762	)
Receive Fixed 7.74% Pay Floating rate 3-Month-JIBAR		Quarterly		10/25/24		49,768,689	ZAR		(5,747	)
Receive Fixed 4.00% Pay Floating 3-Month-BBSW		Quarterly		12/20/24		8,000,000	AUD		12,313
Receive Floating rate 3-Month-TAIBOR Pay Fixed rate 1.22%		Quarterly		12/20/24		385,000,000	TWD		(4,946	)
Receive Floating rate Overnight SIBCSORA Pay Fixed rate 3.29%		Semi-Annually		12/20/24		2,940,000	SGD		(292	)
Receive Fixed 5.24% Pay Floating rate 3-Month-BKBM		Quarterly		12/21/24		4,700,000	NZD		1,384
Receive Fixed 8.44% Pay Floating BRLCDI		Annually		1/02/25		12,000,000	BRL		(214,288	)
Receive Fixed 6.67% Pay Floating rate 6-Month-CZEONIA		Semi-Annually		1/19/25		66,992,676	CZK		52,181
Receive Fixed 6.63% Pay Floating rate 6-Month-CZEONIA		Semi-Annually		1/20/25		77,898,460	CZK		58,126
Receive Fixed 6.63% Pay Floating rate 6-Month-CZEONIA		Semi-Annually		1/20/25		77,898,460	CZK		58,126
Receive Fixed 3.87% Pay Floating 3-Month-KLIBOR		Quarterly		6/15/25		11,600,000	MYR		1,047
Receive Fixed 3.64% Pay Floating 3-Month-KDR		Quarterly		6/21/25		4,500,000,000	KRW		(4,348	)
Receive Fixed 6.30% Pay Floating rate 3-Month-JIBAR		Quarterly		7/31/25		53,795,745	ZAR		(84,458	)
Receive Fixed 7.57% Pay Floating rate 3-Month-JIBAR		Quarterly		11/04/25		39,000,000	ZAR		(12,144	)
Receive Floating Banxico Mexico 1 Month rate Pay Fixed rate 9.35%		Monthly		12/17/25		12,235,010	MXN		(3,944	)
Receive Fixed 3.31% Pay Floating 3-Month-KDR		Quarterly		12/20/25		15,136,000,000	KRW		(47,681	)
Receive Fixed 3.56% Pay Floating rate Overnight SOFR		Annually		12/20/25		3,520,000			7,711
Receive Fixed 3.64% Pay Floating rate Overnight SOFR		Annually		12/20/25		3,500,000			12,869

84 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)
Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts (continued)
Receive Floating 3-Month-KDR Pay Fixed rate 4.14%		Quarterly		12/20/25		9,636,000,000	KRW	$	(84,070	)
Receive Floating 3-Month-KDR Pay Fixed rate 6.03%		Quarterly		12/21/25		307,000,000	KRW		(2,996	)
Receive Fixed 4.06% Pay Floating 3-Month-KDR		Quarterly		6/11/26		1,320,000,000	KRW		11,863
Receive Floating 3-Month-KDR Pay Fixed rate 3.25%		Quarterly		6/11/26		3,520,000,000	KRW		8,310
Receive Floating rate 3-Month USD LIBOR Pay Fixed rate 0.50%		Quarterly		6/16/26		1,400,000			129,683
Receive Floating rate 3-Month USD LIBOR Pay Fixed rate 0.50%		Quarterly		6/16/26		1,150,000			107,940
Receive Fixed 4.02% Pay Floating 3-Month-KDR		Quarterly		9/27/26		1,200,000,000	KRW		10,959
Receive Fixed 1.25% Pay Floating 3-Month-USD LIBOR		Semi-Annually		12/15/26		1,300,000			(127,261	)
Receive Fixed 11.07% Pay Floating BRLCDI		Annually		1/04/27		9,430,255	BRL		(68,277	)
Receive Fixed 11.22% Pay Floating BRLCDI		Annually		1/04/27		8,000,000	BRL		(51,811	)
Receive Fixed 11.22% Pay Floating BRLCDI		Annually		1/04/27		10,436,876	BRL		(67,215	)
Receive Fixed 11.26% Pay Floating BRLCDI		Annually		1/04/27		9,695,993	BRL		(60,831	)
Receive Fixed 11.48% Pay Floating BRLCDI		Annually		1/04/27		10,436,876	BRL		(53,793	)
Receive Fixed 12.34% Pay Floating BRLCDI		Annually		1/04/27		5,028,240	BRL		(6,975	)
Receive Fixed 12.72% Pay Floating BRLCDI		Annually		1/04/27		10,721,816	BRL		9,572
Receive Fixed 12.79% Pay Floating BRLCDI		Annually		1/04/27		10,721,816	BRL		12,737
Receive Floating rate 1 Year-SOFR Pay Fixed rate 1.42%		Annually		3/08/27		4,000,000			352,805
Receive Fixed 8.78% Pay Floating Banxico Mexico 1 Month Rate		Monthly		10/19/27		72,800,000	MXN		(15,443	)
Receive Fixed 3.89% Pay Floating 3-Month-KDR		Quarterly		12/17/27		9,832,000,000	KRW		80,753
Receive Floating 3-Month-KDR Pay Fixed rate 3.04%		Quarterly		12/17/27		15,452,400,000	KRW		50,413
Receive Fixed 3.46% Pay Floating rate Overnight SOFR		Annually		12/21/27		2,218,000			(10,505	)
Receive Fixed 4.13% Pay Floating rate Overnight SOFR		Annually		12/21/27		2,700,000			68,662
Receive Fixed 6.42% Pay Floating MIBOR		Semi-Annually		12/21/27		79,000,000	INR		4,027
Receive Fixed 6.52% Pay Floating MIBOR		Semi-Annually		12/21/27		40,000,000	INR		4,085
Receive Fixed 6.54% Pay Floating MIBOR		Semi-Annually		12/21/27		78,600,000	INR		8,864
Receive Floating MIBOR Pay Fixed rate 6.47%		Semi-Annually		12/21/27		124,000,000	INR		(9,030	)
Receive Floating MIBOR Pay Fixed rate 6.53%		Semi-Annually		12/21/27		59,000,000	INR		(6,418	)
Receive Floating MIBOR Pay Fixed rate 6.75%		Semi-Annually		12/21/27		39,600,000	INR		(8,939	)

franklintempleton.com Semiannual Report 85

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)
Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts (continued)
Receive Floating rate 6-Month-BBSW Pay Fixed rate 3.97%		Semi-Annually		12/21/27		3,304,000	AUD	$	(4,566	)
Receive Floating rate 6-Month-WIBOR Pay Fixed rate 6.025%		Semi-Annually		12/21/27		1,533,195	PLN		(2,254	)
Receive Floating rate China 7-Day Repo Pay Fixed rate 2.56%		Quarterly		12/21/27		6,300,000	CNY		11,200
Receive Floating rate China 7-Day Repo Pay Fixed rate 2.56%		Quarterly		12/21/27		6,400,000	CNY		11,583
Receive Floating rate China 7-Day Repo Pay Fixed rate 2.79%		Quarterly		12/21/27		6,200,000	CNY		1,844
Receive Floating rate China 7-Day Repo Pay Fixed rate 6.03%		Quarterly		12/21/27		8,000,000	CNY		19,242
Receive Floating rate China 7-Day Repo Pay Fixed rate 6.03%		Quarterly		12/21/27		8,000,000	CNY		19,937
Receive Fixed 4.16% Pay Floating 3-Month-KDR		Quarterly		1/19/28		3,470,000,000	KRW		76,641
Receive Fixed 4.23% Pay Floating 3-Month-KDR		Quarterly		1/19/28		1,492,100,000	KRW		36,819
Receive Fixed 6.12% Pay Floating rate 6-Month-WIBOR		Semi-Annually		1/19/28		2,820,745	PLN		(7,520	)
Receive Fixed 6.14% Pay Floating rate 6-Month-WIBOR		Semi-Annually		1/19/28		979,255	PLN		(2,825	)
Receive Fixed 6.58% Pay Floating rate CLP TNA		Semi-Annually		1/19/28		1,526,993,811	CLP		(78,196	)
Receive Fixed 6.86% Pay Floating rate CLP TNA		Semi-Annually		1/19/28		819,202,689	CLP		(52,789	)
Receive Fixed 6.98% Pay Floating rate 6-Month-WIBOR		Semi-Annually		1/19/28		7,000,000	PLN		(72,370	)
Receive Fixed 7.20% Pay Floating rate CLP TNA		Semi-Annually		1/19/28		439,092,641	CLP		(35,650	)
Receive Fixed 7.24% Pay Floating rate CLP TNA		Semi-Annually		1/19/28		1,000,000,000	CLP		(83,132	)
Receive Fixed 7.26% Pay Floating rate 6-Month-WIBOR		Semi-Annually		1/19/28		11,000,000	PLN		(141,741	)
Receive Fixed 7.58% Pay Floating rate 6-Month-WIBOR		Semi-Annually		1/19/28		16,020,000	PLN		(251,884	)
Receive Floating 3-Month-KLIBOR Pay Fixed rate 3.98%		Quarterly		6/15/28		4,700,000	MYR		(1,136	)
Receive Floating 3-Month-KDR Pay Fixed rate 3.81%		Quarterly		9/28/28		1,220,000,000	KRW		(9,242	)
Receive Fixed 3.80% Pay Floating 3-Month-KDR		Quarterly		12/16/28		3,046,000,000	KRW		22,659
Receive Fixed 3.85% Pay Floating 3-Month-KDR		Quarterly		12/16/28		2,537,600,000	KRW		20,659
Receive Floating 3-Month-KDR Pay Fixed rate 2.91%		Quarterly		12/16/28		5,583,600,000	KRW		23,544
Receive Fixed 3.15% Pay Floating rate Overnight SOFR		Annually		6/16/29		3,072,000			5,533
Receive Fixed 3.44% Pay Floating rate Overnight SOFR		Annually		9/15/29		3,142,000			19,630
Receive Fixed 1.17% Pay Floating 3-Month-KDR		Quarterly		12/16/30		340,500,000	KRW		8,256
Receive Fixed 1.53% Pay Floating 3-Month-KDR		Quarterly		6/16/31		207,200,000	KRW		5,510
Receive Floating rate 1 Year-SOFR Pay Fixed rate 1.52%		Annually		3/08/32		4,000,000			586,602

86 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)
Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts (continued)
Receive Fixed 0.77% Pay Floating rate 6 Month-EURIBOR		Annually		3/17/32		2,308,338	EUR	$	(165,936	)
Receive Fixed 0.98% Pay Floating rate 6 Month-EURIBOR		Annually		3/17/32		1,042,890	EUR		(74,246	)
Receive Floating rate Overnight SOFR Pay Fixed rate 3.17%		Annually		6/20/32		2,220,000			(760	)
Receive Fixed 2.60% Pay Floating rate 6 Month-EURIBOR		Semi-Annually		9/15/32		2,236,000	EUR		(3,933	)
Receive Fixed 2.68% Pay Floating rate 6 Month-EURIBOR		Semi-Annually		9/15/32		1,210,000	EUR		1,953
Receive Fixed 2.71% Pay Floating rate 6 Month-EURIBOR		Semi-Annually		9/15/32		1,190,000	EUR		3,362
Receive Fixed 2.88% Pay Floating rate 6 Month-EURIBOR		Semi-Annually		9/15/32		1,276,000	EUR		13,041
Receive Fixed 2.93% Pay Floating rate Overnight SOFR		Annually		9/15/32		366,000			(2,791	)
Receive Fixed 2.99% Pay Floating rate Overnight SOFR		Annually		9/15/32		1,274,000			(6,756	)
Receive Fixed 3.12% Pay Floating rate Overnight SOFR		Annually		9/15/32		2,576,000			36
Receive Fixed 3.15% Pay Floating rate Overnight SOFR		Annually		9/15/32		732,000			891
Receive Floating rate Overnight SOFR Pay Fixed rate 3.38%		Annually		9/19/32		2,284,000			(11,226	)
Receive Fixed 8.47% Pay Floating Banxico Mexico 1 Month Rate		Monthly		10/12/32		37,000,000	MXN		(16,557	)
Receive Fixed 8.71% Pay Floating Banxico Mexico 1 Month Rate		Monthly		10/12/32		21,700,000	MXN		8,220
Receive Fixed 8.72% Pay Floating Banxico Mexico 1 Month Rate		Monthly		10/12/32		21,700,000	MXN		9,257
Receive Fixed 9.07% Pay Floating JIBAR		Quarterly		10/25/32		19,017,434	ZAR		10,244
Receive Floating 3-Month-KDR Pay Fixed rate 3.15%		Quarterly		11/22/32		662,000,000	KRW		1,168
Receive Fixed 2.75% Pay Floating rate 6 Month-EURIBOR		Semi-Annually		12/15/32		1,232,000	EUR		5,116
Receive Fixed 4.50% Pay Floating 6-Month-BBSW		Semi-Annually		12/15/32		2,000,000	AUD		2,946
Receive Floating rate Overnight SIBCSORA Pay Fixed rate 2.72%		Semi-Annually		12/15/32		700,000	SGD		2,434
Receive Floating rate Overnight SIBCSORA Pay Fixed rate 2.84%		Semi-Annually		12/15/32		700,000	SGD		(4	)
Receive Floating rate Overnight SOFR Pay Fixed rate 3.13%		Annually		12/15/32		1,300,000			151
Receive Fixed 4.13% Pay Floating 6-Month-BBSW		Semi-Annually		12/21/32		1,806,000	AUD		(2,733	)
Receive Floating MIBOR Pay Fixed rate 6.51%		Semi-Annually		12/21/32		46,000,000	INR		(4,080	)
Receive Floating MIBOR Pay Fixed rate 6.56%		Semi-Annually		12/21/32		23,000,000	INR		(3,028	)
Receive Floating MIBOR Pay Fixed rate 6.62%		Semi-Annually		12/21/32		46,000,000	INR		(8,799	)
Receive Floating rate Overnight SOFR Pay Fixed rate 3.26%		Annually		12/21/32		1,192,000			11,042
Receive Fixed 5.32% Pay Floating rate 6-Month-CZEONIA		Semi-Annually		1/19/33		18,343,230	CZK		(69,013	)

franklintempleton.com Semiannual Report 87

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)
Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts (continued)
Receive Fixed 5.33% Pay Floating rate 6-Month-CZEONIA		Semi-Annually		1/19/33		17,961,079	CZK	$	(68,211	)
Receive Fixed 5.40% Pay Floating rate 6-Month-CZEONIA		Semi-Annually		1/19/33		15,695,691	CZK		(63,496	)
Receive Floating 3-Month-KDR Pay Fixed rate 3.27%		Quarterly		6/21/33		990,000,000	KRW		3,998
Receive Floating rate Overnight SOFR Pay Fixed rate 3.35%		Annually		12/20/33		800,000			(10,526	)
Receive Floating rate Overnight SOFR Pay Fixed rate 3.41%		Annually		12/20/33		800,000			(13,971	)
Receive Floating 3-Month-KDR Pay Fixed rate 1.15%		Quarterly		12/16/40		177,000,000	KRW		(7,786	)
Receive Floating 3-Month-KDR Pay Fixed rate 1.57%		Quarterly		6/16/41		108,000,000	KRW		(5,389	)
Receive Floating rate 6 Month-EURIBOR Pay Fixed rate 0.74%		Semi-Annually		3/17/42		1,098,871	EUR		127,430
Receive Floating rate 6 Month-EURIBOR Pay Fixed rate 0.94%		Semi-Annually		3/17/42		558,230	EUR		56,624
Receive Fixed 2.88% Pay Floating rate 6 Month-EURIBOR		Semi-Annually		9/15/42		860,000	EUR		29,486
Receive Floating rate 6 Month-EURIBOR Pay Fixed rate 2.21%		Semi-Annually		9/15/42		764,000	EUR		3,272
Receive Floating rate 6 Month-EURIBOR Pay Fixed rate 2.23%		Semi-Annually		9/15/42		274,000	EUR		788
Receive Floating rate 6 Month-EURIBOR Pay Fixed rate 2.43%		Semi-Annually		9/15/42		720,000	EUR		(8,441	)
Receive Floating rate Overnight SOFR Pay Fixed rate 2.97%		Annually		9/15/42		190,000			3,401
Receive Floating rate Overnight SOFR Pay Fixed rate 2.99%		Annually		9/15/42		799,372			13,454
Receive Floating rate Overnight SOFR Pay Fixed rate 3.08%		Annually		9/15/42		1,628,000			18,431
Receive Floating rate Overnight SOFR Pay Fixed rate 3.11%		Annually		9/15/42		436,000			4,202
Receive Floating rate 6 Month-EURIBOR Pay Fixed rate 2.24%		Semi-Annually		9/17/42		2,124,000	EUR		3,615
Receive Floating rate 6 Month-EURIBOR Pay Fixed rate 2.26%		Semi-Annually		9/17/42		722,000	EUR		290
Receive Floating rate 6 Month-EURIBOR Pay Fixed rate 2.22%		Semi-Annually		12/15/42		730,000	EUR		415
Receive Floating rate 6 Month-EURIBOR Pay Fixed rate 0.44%		Semi-Annually		10/27/51		430,000	EUR		(7,560	)
Receive Floating rate 6 Month-EURIBOR Pay Fixed rate 1.27%		Semi-Annually		9/16/52		542,000	EUR		3,821
Receive Floating rate Overnight SOFR Pay Fixed rate 3.45%		Annually		12/21/52		670,000			(46,232	)
Total Interest Rate Swap Contracts								$	9,513

*In U.S. dollars unless otherwise indicated.

88 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

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

Total Return Swap Contracts

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts

Equity Contracts – Longa

3i Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

227,190

GBP

$

42,181

7C Solarparken AG

Euro STR + 0.35%

Monthly

JPHQ

11/06/23

57,836

EUR

(327

)

A.P. Moller – Maersk

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

1,055,357

DKK

(10,274

)

A1 Telekom Austria AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

204,114

EUR

(1,542

)

AB Fastator

1-Week STIBOR + 0.28%

Monthly

SEBA

8/04/23

331,256

SEK

(6,154

)

AcadeMedia AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,020,961

SEK

2,851

AddLife AB

1-Week STIBOR + 0.28%

Monthly

SEBA

8/02/23

2,215,095

SEK

(37,208

)

ADvTECH Ltd.

1-Day SABOR + 0.30%

Monthly

MSCS

7/17/23

910,076

ZAR

7,871

Aegon NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

146,694

EUR

(3,722

)

AFC Energy

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

14,131

GBP

517

Afentra PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/30/23

3,105

GBP

8

Africa Energy

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

168,724

SEK

(546

)

African Rainbow Minerals Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

8/30/23

1,358,889

ZAR

14,087

AIB Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

24,738

GBP

10,877

Air France-KLM

1-Day EONIA + 0.30%

Monthly

MSCS

10/02/23

214,308

EUR

(2,163

)

Airtel Africa PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

242,197

GBP

(56,768

)

Aker Solutions ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

996,179

NOK

(5,314

)

Albaraka Turk Katilim Bankasi AS

1-Day FEDEF + 0.30%

Monthly

MSCS

11/27/23

16,792

(611

)

Alfen NV

Euro STR + 0.35%

Monthly

JPHQ

11/15/23

134,738

EUR

(268

)

Alliance Pharma PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

11,752

GBP

914

Ambea AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,673,483

SEK

1,536

Amundi SA

1-Month EURIBOR + 0.40%

Monthly

MSCS

11/14/23

380,385

EUR

(335

)

Amundi SA

1-Day EONIA + 0.40%

Monthly

GSCO

3/14/25

266,038

EUR

32,739

Anadolu Grubu

1-Day FEDEF + 0.30%

Monthly

MSCS

11/27/23

109,108

7,663

Andritz AG

Euro STR + 0.35%

Monthly

JPHQ

7/14/23

250,769

EUR

(3,107

)

Anima Holding SpA

1-Month EURIBOR + 0.40%

Monthly

JPHQ

7/17/23

97,944

EUR

5,637

Anima Holding SpA

1-Month EURIBOR + 0.40%

Monthly

MSCS

11/14/23

869,081

EUR

15,972

AO World PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/30/23

4,401

GBP

(41

)

Aperam SA

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

16,236

EUR

375

Aquafil

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

7,503

EUR

(325

)

Arcadis

Euro STR + 0.35%

Monthly

JPHQ

9/22/23

154,856

EUR

13,838

ArcelorMittal SA

1-Day SABOR + 0.70%

Monthly

MSCS

11/27/23

166,586

ZAR

(81

)

Arctic

1-Day FEDEF + 0.30%

Monthly

MSCS

11/27/23

15,791

492

Arctic Paper SA

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

83,521

SEK

396

Argo Blockchain PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

1,797

GBP

(465

)

Arise AB

1-Day SABOR + 0.70%

Monthly

SEBA

8/03/23

706,045

SEK

(9,520

)

Ariston Holding NV

Euro STR + 0.35%

Monthly

JPHQ

11/29/23

31,099

EUR

1,389

Arjo AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,379,026

SEK

(31,797

)

ASBIS Kypros Ltd.

1-Day FEDEF + 0.30%

Monthly

MSCS

7/12/23

68,961

54,773

Ascencio

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

55,212

EUR

417

ASML Holding NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

113,722

EUR

14,136

ASR Nederland NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

84,555

EUR

(1,456

)

Asseco Poland SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

268,038

12,796

Aston Martin Lagonda

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

14,064

GBP

365

Astral Foods Ltd.

1-Day SABOR + 0.30%

Monthly

MSCS

7/17/23

4,416,466

ZAR

(24,941

)

AT&S Austria Technologie & Systemtechnik AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

127,998

EUR

1,942

Atlantic Sapphire ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

11/27/23

61,341

NOK

176

Atoss Software AG

Euro STR + 0.35%

Monthly

JPHQ

8/01/23

112,014

EUR

12,988

Atresmedia Corporacion de Medios de Comunicacion SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

67,185

EUR

1,832

Audioboom Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

11,532

GBP

(161

)

Aurelius Equity Opportunities AB

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

109,363

EUR

(15,742

)

franklintempleton.com Semiannual Report 89

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Aurubis AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

182,575

EUR

$

15,135

Austevoll Seafood ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/12/23

783,133

NOK

4,127

Auto Trader Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

41,710

GBP

(821

)

Autogrill SpA

1-Day EONIA + 0.65%

Monthly

MSCO

8/18/23

66,558

EUR

(3,333

)

Autoneum

1-Day SARON + 0.35%

Monthly

JPHQ

11/27/23

15,875

CHF

18

AVI Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

10/03/23

1,551,831

ZAR

(277

)

Axa SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

108,207

EUR

32,397

Axfood AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,823,989

SEK

(6,906

)

Azelio AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

110,856

SEK

(62

)

Azimut Holding SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

47,343

EUR

4,768

B2Holding ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

1,215,729

NOK

(3,418

)

Balfour Beatty

1-Day SONIA + 0.35%

Monthly

MSCS

9/18/23

190,889

GBP

5,721

Banca de Sabadell SA

1-Day EONIA + 0.35%

Monthly

MSCS

10/10/23

94,629

EUR

14,639

Banca Ifis SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

260,350

EUR

835

Banca Popolare di Sondrio SpA

Euro STR + 0.35%

Monthly

JPHQ

8/22/23

88,037

EUR

7,262

Banco Bilbao Vizcaya Argentaria SA

1-Day EONIA + 0.35%

Monthly

MSCS

9/29/23

77,364

EUR

14,338

Banco BPM SpA

Euro STR + 0.35%

Monthly

JPHQ

7/26/23

138,234

EUR

9,564

Bank Handlowy w Warszawie SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/14/23

82,999

31,705

Bank of Georgia Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/31/23

152,514

GBP

102,305

Barclays PLC

1-Day SONIA + 0.44%

Monthly

MSCS

7/17/23

107,037

GBP

10,027

Barclays PLC

1-Day SONIA + 0.44%

Monthly

MSCS

11/14/23

101,094

GBP

3,099

Barco

Euro STR + 0.35%

Monthly

JPHQ

10/09/23

78,597

EUR

3,740

Bavarian Nordic A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

11/27/23

499,192

DKK

482

Bayer AG

Euro STR + 0.35%

Monthly

JPHQ

9/04/23

195,012

EUR

14,339

BE Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,174,167

SEK

(29,254

)

Bell Food Group AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

170,172

CHF

6,578

Beneteau

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

160,269

EUR

8,460

Bergen Carbon Solutions

1-Week NIBOR + 0.28%

Monthly

SEBA

11/27/23

153,752

NOK

(674

)

Betsson AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,355,588

SEK

53,119

BHG Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

176,477

SEK

(317

)

Bico Group

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

175,676

SEK

450

Bidvest Group Ltd.

1-Day SABOR + 0.35%

Monthly

MSCS

7/17/23

1,004,700

ZAR

3,163

Bigben Interactive

1-Day EONIA + 0.30%

Monthly

MSCS

11/27/23

12,267

EUR

(721

)

Bilia AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,575,714

SEK

(34,707

)

BioGaia AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,458,952

SEK

(29,696

)

Biosynex

1-Day EONIA + 0.30%

Monthly

MSCS

11/27/23

10,993

EUR

1,601

Biotage AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

2,525,184

SEK

(21,620

)

Bloomsbury Publishing PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

63,493

GBP

15,847

BNP Paribas SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

173,667

EUR

50,481

BNP Paribas SA

1-Month LIBOR + 0.40%

Monthly

GSCO

3/14/25

641,191

EUR

217,490

Bogdanka SA

1-Day FEDEF + 0.30%

Monthly

MSCS

8/18/23

124,577

13,902

Bonava

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

175,883

SEK

(183

)

Bonheur ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

8/28/23

559,388

NOK

(12,899

)

Borr Drilling Ltd.

1-Week NIBOR + 0.28%

Monthly

SEBA

11/27/23

104,110

NOK

(121

)

BPER Banca SpA

Euro STR + 0.35%

Monthly

JPHQ

9/25/23

141,171

EUR

5,575

Bravida Holding AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/01/23

1,749,057

SEK

(464

)

Brederode

Euro STR + 0.35%

Monthly

JPHQ

11/21/23

49,567

EUR

(85

)

Breedon Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

172,467

GBP

(18,731

)

Brunel International NV

1-Week STIBOR + 0.28%

Monthly

JPHQ

7/17/23

113,285

EUR

1,045

Budimex SA

1-Day FEDEF + 0.30%

Monthly

MSCS

11/20/23

34,694

2,666

Bumech SA

1-Day FEDEF + 0.30%

Monthly

MSCS

11/27/23

16,899

649

Burberry Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

11,014

GBP

4,109

Burckhardt

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

126,243

CHF

1,022

90 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Bureau Veritas SA

1-Month EURIBOR + 0.40%

Monthly

MSCS

11/14/23

85,071

EUR

$

(5,676

)

Bureau Veritas SA

1-Month EURIBOR + 0.40%

Monthly

GSCO

3/14/25

495,996

EUR

63,396

BW Offshore Ltd.

1-Week NIBOR + 0.28%

Monthly

SEBA

11/27/23

167,490

NOK

213

Bytes Technology Group

1-Day SONIA + 0.35%

Monthly

MSCS

9/07/23

161,880

GBP

(1,306

)

C&C Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/24/23

86,950

GBP

(2,142

)

Cairn Homes PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

53,903

GBP

(8,739

)

Cairo Communication SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

91,371

EUR

(5,597

)

Cantargia AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

137,696

SEK

(497

)

Capital & Counties Properties PLC

1-Day SABOR + 0.70%

Monthly

MSCS

11/27/23

282,579

ZAR

(753

)

CapMan OYJ

Euro STR + 0.28%

Monthly

SEBA

7/17/23

55,063

EUR

(3,707

)

Card Factory PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

52,897

GBP

30,124

Cargotec OYJ

Euro STR + 0.28%

Monthly

SEBA

8/23/23

72,226

EUR

11,865

Carlsberg Group

1-Week CIBOR + 0.28%

Monthly

SEBA

9/12/23

1,856,013

DKK

(13,429

)

Catena AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/17/23

732,167

SEK

(5,733

)

Catena Media PLC

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,292,821

SEK

(26,064

)

Cbrain A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

558,020

DKK

(6,146

)

Cellectis

1-Day EONIA + 0.30%

Monthly

MSCS

11/27/23

15,423

EUR

(523

)

Cementir Holding NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

126,822

EUR

6,967

Cemig

1-Day FEDEF + 1.00%

Monthly

MSCO

9/26/23

324,935

43,937

Central Asia Metals PLC

1-Day SONIA + 0.35%

Monthly

MSCS

9/25/23

54,937

GBP

7,585

CentralNic Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

113,046

GBP

2,528

Centrica PLC ORD

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

258,737

GBP

36,139

Cerillion

1-Day SONIA + 0.35%

Monthly

MSCS

11/29/23

9,100

GBP

62

Chemometec

1-Week CIBOR + 0.28%

Monthly

SEBA

11/15/23

749,708

DKK

659

Chemring Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

8/22/23

61,860

GBP

2,500

Cherry AG

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

11,155

EUR

181

Chrysalis Investments

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

11,830

GBP

309

Chrysalis Investments

1-Day SONIA + 0.35%

Monthly

MSCS

12/01/23

2,382

GBP

12

Ciech SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

55,148

14,483

Citycon OYJ

Euro STR + 0.28%

Monthly

SEBA

8/23/23

155,363

EUR

(12,707

)

Clas Ohlson AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

3,138,898

SEK

(82,328

)

CLIQ Digital AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

119,037

EUR

14,647

Cloetta AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

3,479,783

SEK

5,596

Coca-Cola Europacific Partners PLC

1-Day SONIA + 0.30%

Monthly

JPHQ

10/11/23

166,101

EUR

6,560

COFACE

1-Day EONIA + 0.30%

Monthly

MSCS

7/14/23

216,201

EUR

49,460

Coltene Holding AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

35,696

CHF

(797

)

Compagnie des Alpes

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

117,351

EUR

(8,775

)

Compleo

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

14,474

EUR

(1,193

)

Computacenter PLC ORD

1-Day SONIA + 0.35%

Monthly

MSCS

7/13/23

253,144

GBP

(43,917

)

Construcciones y Auxiliar de Ferrocarriles

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

139,920

EUR

2,599

ContourGlobal PLC

1-Day SONIA + 0.40%

Monthly

BZWS

6/02/23

524,210

GBP

(58

)

Coor Service Management Holding AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

2,910,991

SEK

(72,224

)

Corem Property Group

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

176,314

SEK

(100

)

Crest Nicholson Holdings PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

89,165

GBP

(3,394

)

CRH PLC ORD

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

105,448

GBP

17,596

Croda International PLC

1-Day SONIA + 0.44%

Monthly

MSCS

11/14/23

401,917

GBP

(21,376

)

CropEnergies AG

Euro STR + 0.35%

Monthly

JPHQ

10/18/23

91,453

EUR

(4,660

)

CS Group

1-Day SARON + 0.35%

Monthly

JPHQ

11/27/23

15,080

CHF

(2,013

)

Curro Holdings Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

11/27/23

175,177

ZAR

196

Currys PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

13,732

GBP

(892

)

CVS Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

10/30/23

30,834

GBP

2,615

franklintempleton.com Semiannual Report 91

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Dampskibsselskabet Norden A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

864,691

DKK

$

25,725

Danieli & C Officine Meccaniche SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

215,115

EUR

1,482

Danone SA

1-Month EURIBOR + 0.40%

Monthly

MSCS

11/14/23

155,078

EUR

1,655

Danone SA

1-Month LIBOR + 0.40%

Monthly

GSCO

3/14/25

1,149,365

EUR

(156,377

)

Datatec Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

11/27/23

213,468

ZAR

(514

)

DBV Technologies

1-Day EONIA + 0.30%

Monthly

MSCS

11/27/23

14,774

EUR

(273

)

DCC PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

244,601

GBP

(32,372

)

DCP Midstream Partners LP

1-Day FEDEF + 1.00%

Monthly

MSCO

9/21/23

850,733

15,810

Derichebourg SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

213,391

EUR

(13,684

)

Deutsche Bank AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

201,810

EUR

4,557

Deutsche Lufthansa AG

Euro STR + 0.35%

Monthly

JPHQ

9/06/23

177,020

EUR

11,191

Deutsche Telekom AG

Euro STR + 0.35%

Monthly

JPHQ

8/01/23

58,603

EUR

(859

)

Deutz AG

Euro STR + 0.35%

Monthly

JPHQ

7/13/23

33,461

EUR

928

DKSH Switzerland Ltd.

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

177,749

CHF

(6,307

)

DNO ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/14/23

2,600,625

NOK

(175

)

Drax Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

206,524

GBP

(34,309

)

Dufry AG

Euro STR + 0.35%

Monthly

JPHQ

8/16/23

124,815

CHF

5,033

Dustin Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

10/18/23

1,068,539

SEK

524

Eco Atlantic

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

9,894

GBP

(284

)

Econocom Group SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

49,735

EUR

1,585

Edenred

1-Day EONIA + 0.30%

Monthly

MSCS

10/02/23

144,611

EUR

14,693

EDF

1-Day EONIA + 0.65%

Monthly

MSCO

9/22/23

356,322

EUR

1,939

EFG International AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

163,162

CHF

(3,887

)

Eiffage SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

133,182

EUR

12,273

El.En. SpA

Euro STR + 0.35%

Monthly

JPHQ

7/13/23

195,296

EUR

23,370

Elecnor SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

37,411

EUR

(1,863

)

Elementis PLC

1-Day SONIA + 0.35%

Monthly

MSCS

9/29/23

100,869

GBP

28,155

Eletrobras

1-Day FEDEF + 1.00%

Monthly

MSCO

1/16/24

3,221,187

399,059

Elia Group SA

Euro STR + 0.35%

Monthly

JPHQ

7/28/23

101,270

EUR

4,808

Elis SA

1-Month EURIBOR + 0.40%

Monthly

GSCO

3/14/25

338,534

EUR

(10,305

)

Elkem ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/13/23

3,126,761

NOK

52,897

Elmos Semiconductor SE

Euro STR + 0.35%

Monthly

JPHQ

7/18/23

86,233

EUR

20,671

ElringKlinger AG

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

16,166

EUR

(24

)

Enad Global 7 AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

129,182

SEK

383

Encavis AG

Euro STR + 0.35%

Monthly

JPHQ

11/15/23

69,784

EUR

1,743

Enea AB

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

296,656

(99,097

)

Energy Transfer LP

1-Month LIBOR + 0.90%

Monthly

GSCO

1/26/23

39,745

2,629

Energy Transfer LP

1-Month LIBOR + 0.90%

Monthly

BZWS

2/14/23

158,846

10,428

Energy Transfer LP

1-Month LIBOR + 0.50%

Monthly

CITI

10/18/23

90,194

5,313

Engie SA

1-Day EONIA + 0.30%

Monthly

MSCS

8/30/23

168,520

EUR

35,114

ENI SpA

Euro STR + 0.35%

Monthly

JPHQ

8/22/23

29,821

EUR

225

EnQuest PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

13,916

GBP

178

EnQuest PLC

1-Day SONIA + 0.35%

Monthly

SEBA

11/27/23

176,812

SEK

72

Entain PLC

1-Day SONIA + 0.65%

Monthly

MSCO

2/08/23

578,087

GBP

(101,423

)

Equatorial Energia SA

1-Day FEDEF + 1.00%

Monthly

MSCO

9/26/23

571,540

24,803

Equinor ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

1,507,805

NOK

15,363

Eramet

1-Day EONIA + 0.30%

Monthly

MSCS

11/27/23

16,205

EUR

687

Ercros SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

196,416

EUR

(11,556

)

Ergomed PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

57,743

GBP

23,746

Ericsson

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

2,078,727

SEK

(19,201

)

ESG Core Investments BV

1-Day EONIA + 0.65%

Monthly

MSCO

9/06/23

41,835

EUR

(2,284

)

Eurobio Scientific SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

57,171

EUR

(6,226

)

Eurocommercial Properties NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

280,540

EUR

1,651

Europris ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

1,632,237

NOK

16,797

92 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Eutelsat SA

1-Day EONIA + 0.30%

Monthly

MSCS

11/27/23

15,943

EUR

$

(668

)

EVS Broadcast Equipment SA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

36,914

EUR

(1,086

)

Exxaro Resources Ltd.

1-Day SABOR + 0.36%

Monthly

MSCS

7/17/23

1,960,755

ZAR

18,201

Faes Farma SA

1-Day EONIA + 0.35%

Monthly

MSCS

8/22/23

96,282

EUR

(6,612

)

FD Technologies PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

125,484

GBP

(39,115

)

Ferrexpo PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

13,888

GBP

(160

)

Fingerprint Cards

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

177,649

SEK

(787

)

FirstGroup PLC

1-Day SONIA + 0.35%

Monthly

MSCS

8/24/23

180,739

GBP

(22,264

)

Flex LNG Ltd.

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

548,765

NOK

9,895

FLSmidth & Co. A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

10/19/23

1,116,152

DKK

20,042

ForFarmers

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

29,435

EUR

1,969

Fortress REIT Ltd.

1-Day SABOR + 0.50%

Monthly

MSCS

11/27/23

285,543

ZAR

(228

)

Foxtons Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

9/18/23

40,981

GBP

(933

)

Frasers Group PLC

1-Day SONIA + 0.44%

Monthly

MSCS

7/17/23

175,175

GBP

70,200

Frasers Group PLC

1-Day SONIA + 0.44%

Monthly

MSCS

11/14/23

161,264

GBP

29,744

Galenica AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

198,519

CHF

7,835

Galliford Try Holdings PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

45,210

GBP

(2,647

)

Gas Plus SpA

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

11,550

EUR

(98

)

b,cGazprom PJSC ADR

1-Day FEDEF

Monthly

MSCS

1/31/24

—

—

GB Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

13,571

GBP

(1,425

)

Genfit

1-Day EONIA + 0.30%

Monthly

MSCS

11/01/23

31,876

EUR

(4,070

)

Genmab A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

1,113,903

DKK

41,188

Gestamp Automocion SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

228,317

EUR

26,014

Getinge AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,619,029

SEK

9,168

GFT Technologies SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

83,814

EUR

2,326

GK Software SE

Euro STR + 0.35%

Monthly

JPHQ

8/07/23

50,592

EUR

8,462

Glanbia PLC

1-Day EONIA + 0.35%

Monthly

MSCS

10/27/23

2,917

EUR

60

Global Dominion Access SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/18/23

64,476

EUR

(9,147

)

Global Fashion Group

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

16,129

EUR

(630

)

Grand City Properties SA

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

15,984

EUR

(731

)

Greencore Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

9/12/23

136,123

GBP

(24,356

)

Greggs PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

55,825

GBP

15,922

Grieg Seafood ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

2,088,606

NOK

(88,424

)

Grindrod Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

11/27/23

287,367

ZAR

(138

)

Groupe Casino

1-Day EONIA + 0.30%

Monthly

MSCS

11/27/23

16,151

EUR

(638

)

Groupe LDLC

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

122,889

EUR

(34,135

)

Groupe Renault

1-Day EONIA + 0.30%

Monthly

MSCS

10/03/23

150,634

EUR

25,640

Grupa Azoty SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

109,352

5,623

Grupo Catalana Occidente

1-Day EONIA + 0.35%

Monthly

MSCS

11/10/23

14,146

EUR

996

GSK PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

172,615

GBP

13,748

Guerbet

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

51,150

EUR

(11,496

)

H. Lundbeck A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

11/27/23

625,337

DKK

(2,755

)

H+H International A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

671,480

DKK

(18,702

)

Halkbank

1-Day FEDEF + 0.30%

Monthly

MSCS

11/27/23

16,936

(212

)

Hammerson PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

278,741

ZAR

(281

)

Hammerson PLC

1-Day SABOR + 0.70%

Monthly

MSCS

11/27/23

13,826

GBP

(450

)

Hanwha Solutions

1-Day FEDEF + 0.30%

Monthly

MSCO

7/31/23

715,440

21,090

Harbour Energy

1-Day SONIA + 0.35%

Monthly

MSCS

10/27/23

89,113

GBP

(13,135

)

Hargreaves Lansdown PLC

1-Day SONIA + 0.35%

Monthly

MSCS

10/30/23

65,022

GBP

5,647

HeidelbergCement AG

1-Month EURIBOR + 0.40%

Monthly

JPHQ

7/17/23

124,860

EUR

7,981

HeidelbergCement AG

1-Month EURIBOR + 0.40%

Monthly

MSCS

11/14/23

659,563

EUR

18,363

Heijmans NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

244,456

EUR

5,212

Heineken Holding NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

63,609

EUR

3,651

Hemnet Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

8/02/23

1,512,886

SEK

(18,903

)

Hensoldt AG

Euro STR + 0.35%

Monthly

JPHQ

8/23/23

189,638

EUR

2,617

franklintempleton.com Semiannual Report 93

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Hermes International

1-Month EURIBOR + 0.40%

Monthly

MSCS

11/14/23

279,630

EUR

$

21,770

HEXPOL AB

1-Week STIBOR + 0.28%

Monthly

SEBA

8/03/23

821,216

SEK

4,259

Hikma Pharmaceuticals PLC

1-Day SONIA + 0.44%

Monthly

MSCS

11/14/23

14,773

GBP

2,367

Hilton Food Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

10/18/23

45,095

GBP

(7,205

)

Hochschild Mining PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

14,050

GBP

261

Hoist Finance AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

137,777

SEK

(385

)

Hollywood Bowl Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

60,677

GBP

5,441

home24

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

16,174

EUR

13

HORNBACH Holding AG & Co. KGaA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

100,711

EUR

4,030

Hotel Chocolat Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

6,975

GBP

(440

)

Huber + Suhner AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

181,764

CHF

(4,355

)

Hugo Boss AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

210,640

EUR

27,431

Humana AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

541,701

SEK

(6,064

)

Humble Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

82,404

SEK

69

Hunting PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

13,840

GBP

112

Hurricane Energy PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

41,573

GBP

2,549

IG Design Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

5,183

GBP

700

IGas Energy PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

2,982

GBP

(12

)

Illimity Bank

Euro STR + 0.35%

Monthly

JPHQ

11/13/23

92,979

EUR

568

Immobiliare Grande Distribuzione SIIQ SpA

1-Day EONIA + 0.30%

Monthly

JPHQ

7/17/23

111,956

EUR

1,091

Immofinanz

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

15,957

EUR

(212

)

Inchcape PLC

1-Day SONIA + 0.35%

Monthly

MSCS

9/28/23

161,897

GBP

34,795

Indivior PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

164,464

GBP

21,502

Indra Sistemas SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

160,341

EUR

10,334

Industria de Diseno Textil Inditex SA

1-Day EONIA + 0.35%

Monthly

MSCS

8/22/23

53,864

EUR

3,057

Inmobiliaria Colonial

1-Day EONIA + 0.35%

Monthly

MSCS

11/27/23

16,159

EUR

(213

)

Innovatec SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

211,404

EUR

(11,766

)

International Petroleum Corp.

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

635,863

SEK

16,067

Intervest Offices & Warehouses NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

101,838

EUR

(5,910

)

Intrum AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,342,989

SEK

(33,730

)

Investec Property Fund

1-Day SABOR + 0.70%

Monthly

MSCS

11/27/23

287,619

ZAR

(10

)

Inwido AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,998,480

SEK

(15,132

)

IOG PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

11,108

GBP

1,691

Ion Beam Applications SA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

55,330

EUR

1,030

IP Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

13,879

GBP

(330

)

Ipsos Group SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

81,769

EUR

17,933

Iren

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

98,168

EUR

5,965

ISS A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

11/27/23

376,719

DKK

1,163

ITM Power PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

14,175

GBP

671

ITV PLC

1-Day SONIA + 0.44%

Monthly

MSCS

11/14/23

482,897

GBP

20,028

Iveco

Euro STR + 0.35%

Monthly

JPHQ

11/28/23

101,951

EUR

1,891

IVU Traffic Technologies AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

28,746

EUR

5,436

Jacquet Metals SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

38,582

EUR

1,820

JD Sports Fashion PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

151,487

GBP

686

Jet2 PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/18/23

130,496

GBP

24,000

Julius Baer

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

235,805

CHF

14,750

Just Eat Takeaway.com NV

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

14,068

GBP

229

Just Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

14,175

GBP

245

Jyske Bank A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

11/27/23

120,051

DKK

(122

)

Kap Industrial Holdings Ltd.

1-Day SABOR + 0.30%

Monthly

MSCS

7/17/23

2,932,652

ZAR

14,146

Keller Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

103,443

GBP

(5,680

)

94 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Kenmare Resources PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

49,230

GBP

$

765

Kering SA

1-Month EURIBOR + 0.40%

Monthly

MSCS

11/14/23

105,336

EUR

7,200

Kering SA

1-Month EURIBOR + 0.40%

Monthly

GSCO

3/14/25

871,783

EUR

16,810

Kernel Holding SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

88,325

(18,107

)

Kesko Corp.

Euro STR + 0.28%

Monthly

SEBA

7/14/23

218,329

EUR

(23,879

)

K-Fast Holding AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

176,213

SEK

321

Kid ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

595,029

NOK

(13,132

)

Kion Group AG

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

16,192

EUR

(208

)

Klepierre SA

1-Day EONIA + 0.30%

Monthly

MSCS

8/08/23

146,919

EUR

1,365

Koc Holding

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

183,124

130,090

Koenig & Bauer AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

52,246

EUR

4,490

Konecranes OYJ

Euro STR + 0.28%

Monthly

SEBA

11/22/23

33,817

EUR

156

Kongsberg Gruppen ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

635,598

NOK

15,989

Koninklijke Ahold Delhaize NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

172,116

EUR

(5,669

)

Koninklijke BAM Groep NV

Euro STR + 0.35%

Monthly

JPHQ

8/14/23

119,613

EUR

11,128

Koninklijke KPN NV

Euro STR + 0.35%

Monthly

JPHQ

10/11/23

148,931

EUR

7,492

Krones AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

288,102

EUR

17,448

Kuehne + Nagel AG

Euro STR + 0.35%

Monthly

JPHQ

8/11/23

156,504

CHF

6,818

Laboratorios Farmaceuticos Rovi SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/14/23

211,085

EUR

(62,141

)

Lar Espana Real Estate SOCIMI SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

71,755

EUR

(2,210

)

Lastminute.com Group

1-Day SARON + 0.35%

Monthly

JPHQ

11/27/23

11,095

CHF

(40

)

Leonardo SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

204,265

EUR

12,464

Leonteq AG

Euro STR + 0.35%

Monthly

JPHQ

7/14/23

190,417

CHF

(4,245

)

LG Chem Ltd.

1-Day FEDEF + 0.30%

Monthly

MSCO

8/10/23

1,797,557

66,869

LG Energy Solution Ltd.

1-Day FEDEF + 0.30%

Monthly

MSCO

8/03/23

1,987,659

(45,180

)

Linde PLC

Euro STR + 0.35%

Monthly

JPHQ

10/20/23

36,001

EUR

486

Link Mobility Group Holding ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

11/27/23

167,155

NOK

(694

)

Logista

1-Day EONIA + 0.35%

Monthly

MSCS

9/14/23

108,553

EUR

15,579

Logo Yazilim AS

1-Day FEDEF + 0.30%

Monthly

MSCS

11/27/23

88,851

903

Lookers PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

46,033

GBP

2,988

Loomis AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/14/23

3,256,314

SEK

64,972

Luceco PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

9,857

GBP

(595

)

LVMH Moet Hennessy Louis Vuitton SE

1-Day EONIA + 0.40%

Monthly

GSCO

3/14/25

173,666

EUR

125,399

M.P. Evans Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

36,476

GBP

3,840

Mabion

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

4,902

(94

)

Maire Tecnimont SpA

Euro STR + 0.35%

Monthly

JPHQ

8/14/23

173,833

EUR

(8,395

)

Maisons du Monde France SAS

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

110,448

EUR

36,188

Man Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/14/23

248,059

GBP

(47,449

)

Marimekko Corp.

Euro STR + 0.28%

Monthly

SEBA

7/17/23

136,434

EUR

(34,403

)

Marks & Spencer Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

193,943

GBP

(16,164

)

Marston’s PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

13,860

GBP

(794

)

MAS PLC

1-Day SABOR + 0.30%

Monthly

MSCS

7/17/23

3,602,393

ZAR

4,256

Mavi Giyim Sanayi Ve Ticaret AS

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

76,553

45,933

ME Group International PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/28/23

2,071

GBP

(4

)

Media and Games Invest SE

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,203,311

SEK

(25,730

)

Mediaset Espana Comunicacion SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

81,464

EUR

(6,199

)

Melexis NV

Euro STR + 0.35%

Monthly

JPHQ

8/18/23

148,629

EUR

11,539

Mensch und Maschine Software SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

118,755

EUR

6,352

Mercator Ltd.

1-Day FEDEF + 0.30%

Monthly

MSCS

11/27/23

16,882

(346

)

Mercedes-Benz Group AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

175,340

EUR

10,724

franklintempleton.com Semiannual Report 95

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Mercialys SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

117,749

EUR

$

14,051

Merck KGaA

Euro STR + 0.35%

Monthly

JPHQ

7/14/23

123,117

EUR

3,297

MERLIN Properties SOCIMI SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

133,377

EUR

(3,552

)

Mersen

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

134,689

EUR

35,462

Metall Zug AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

33,390

CHF

1,989

Metro Bank PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

7,904

GBP

79

MFE

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

30,551

EUR

320

MFE

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

16,374

EUR

286

Migros Ticaret

1-Day FEDEF + 0.30%

Monthly

MSCS

9/08/23

52,280

15,977

Mitchells & Butlers PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

14,008

GBP

(247

)

Mitie Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

228,629

GBP

34,412

MLP SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

22,541

EUR

2,429

Mo-Bruk SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

58,698

(1,343

)

Molecular Partners

1-Day SARON + 0.35%

Monthly

JPHQ

11/27/23

15,766

CHF

(251

)

Molten Ventures PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

34,072

GBP

1,020

Montana

1-Day SARON + 0.35%

Monthly

JPHQ

11/27/23

16,122

CHF

872

Moonpig Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

161,319

GBP

2,705

Morgan Advanced Materials

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

161,297

GBP

24,043

Morgan Sindall Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

198,366

GBP

(27,219

)

Motus Holdings Ltd.

1-Day SABOR + 0.34%

Monthly

MSCS

7/17/23

2,470,753

ZAR

5,560

MPC Container Ships ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

1,087,252

NOK

(15,722

)

MPS

Euro STR

Monthly

JPHQ

11/27/23

16,135

EUR

641

MTN Group Ltd.

1-Day SABOR + 0.32%

Monthly

MSCS

7/13/23

4,046,567

ZAR

8,985

MTU Aero Engines AG

Euro STR + 0.35%

Monthly

JPHQ

8/01/23

142,398

EUR

16,486

Muenchener Rueckversicherungs Gesellschaft AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

27,631

EUR

2,256

MultiChoice Group Ltd.

1-Day SABOR + 0.30%

Monthly

MSCS

7/17/23

2,932,655

ZAR

2,090

National Express Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

8/25/23

177,067

GBP

(2,168

)

NatWest Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

172,378

GBP

21,588

NCC AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,629,377

SEK

(5,512

)

Neinor Homes SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

245,151

EUR

(58,287

)

Nemetschek SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

143,910

EUR

3,311

NEPI Rockcastle NV

1-Day SABOR + 0.70%

Monthly

MSCS

11/17/23

2,465,299

ZAR

4,085

Netcare Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

10/02/23

1,548,710

ZAR

4,931

New Wave Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,616,623

SEK

63,920

New Work SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

157,091

EUR

36,155

Newriver Reit PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

140,630

GBP

(23,109

)

Nexans

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

140,416

EUR

1,277

Next Fifteen Communications Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

76,211

GBP

10,171

Nilfisk Holding A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/12/23

804,833

DKK

(12,571

)

NKT A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

11/27/23

374,148

DKK

(571

)

NN Group NV

Euro STR + 0.35%

Monthly

JPHQ

7/14/23

222,752

EUR

(15,104

)

Nokia Corp.

Euro STR + 0.28%

Monthly

SEBA

7/17/23

195,164

EUR

7,345

Nordic Nanovector

1-Week NIBOR + 0.28%

Monthly

SEBA

11/27/23

113,745

NOK

(231

)

Nordic Semiconductor ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

297,267

NOK

6,542

Norske Skog ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

1,189,058

NOK

(6,670

)

Northern Data AG

Euro STR

Monthly

JPHQ

11/27/23

3,453

EUR

(311

)

Novacyt Group

1-Day EONIA + 0.30%

Monthly

MSCS

11/27/23

9,865

EUR

1,006

Novo Nordisk AS

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

1,108,434

DKK

11,064

NRC Group ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

354,318

NOK

(5,923

)

NSI NV

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

16,001

EUR

(372

)

NTG Nordic Transport Group

1-Week CIBOR + 0.28%

Monthly

SEBA

11/27/23

339,474

DKK

(657

)

OC Oerlikon

1-Day SARON + 0.35%

Monthly

JPHQ

10/19/23

154,255

CHF

(8,433

)

OCI NV

Euro STR + 0.35%

Monthly

JPHQ

7/12/23

147,424

EUR

16,139

96 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

ODAS Elektrik Uretim ve Sanayi Ticaret AS

1-Day FEDEF + 0.30%

Monthly

MSCS

8/24/23

65,405

$

28,525

Odfjell Drilling

1-Week NIBOR + 0.28%

Monthly

SEBA

11/27/23

129,938

NOK

210

Okea ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

1,927,765

NOK

6,304

Omnia Holdings Ltd.

1-Day SABOR + 0.31%

Monthly

MSCS

7/17/23

3,300,849

ZAR

12,752

OMV AG

Euro STR + 0.35%

Monthly

JPHQ

7/13/23

80,510

EUR

583

On The Beach Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

224,413

GBP

10,431

Oncopeptides AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

178,251

SEK

1,216

Ontex Group NV

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

16,284

EUR

481

Orange Polska SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

29,078

2,486

Ordina NV

Euro STR + 0.35%

Monthly

JPHQ

7/13/23

215,828

EUR

22,524

Oriola Corp.

Euro STR + 0.28%

Monthly

SEBA

7/17/23

60,132

EUR

(8,846

)

ORIOR AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

96,726

CHF

7,873

Orkla ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

8/28/23

1,795,536

NOK

(27,299

)

Orpea SA

1-Month EURIBOR + 0.40%

Monthly

MSCS

11/14/23

69,465

EUR

(13,252

)

Orr Energy Group

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

173,977

SEK

(1,025

)

ORSERO

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

70,024

EUR

(2,912

)

OSB Group

1-Day SONIA + 0.35%

Monthly

MSCS

9/12/23

214,053

GBP

(4,595

)

Osram Licht AG

1-Day SARON + 0.35%

Monthly

JPHQ

11/27/23

15,866

CHF

(28

)

Outokumpu OYJ

Euro STR + 0.28%

Monthly

SEBA

7/25/23

203,859

EUR

33,646

OVS SpA

Euro STR + 0.35%

Monthly

JPHQ

7/26/23

115,912

EUR

6,711

OZAK GMYO

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

129,882

79,511

Pagegroup PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

156,068

GBP

14,616

Pan African Resources PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

204,681

GBP

(13,801

)

Pandora A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/14/23

1,207,268

DKK

18,943

Pandox AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/01/23

1,273,130

SEK

(6,157

)

Partners Group

1-Day SARON + 0.35%

Monthly

JPHQ

11/29/23

33,281

CHF

20

Patrizia

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

16,151

EUR

(23

)

Peach Property Group

1-Day SARON + 0.35%

Monthly

JPHQ

11/27/23

15,680

CHF

(809

)

Pearson PLC

1-Day SONIA + 0.35%

Monthly

MSCS

10/31/23

46,418

GBP

2,166

Per Aarsleff Holding A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

1,234,507

DKK

20,041

Petra Diamonds Ltd.

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

8,325

GBP

(186

)

Peugeot Invest SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

116,467

EUR

3,535

Pexip Holding

1-Week NIBOR + 0.28%

Monthly

SEBA

11/27/23

164,122

NOK

430

Pfizer Inc.

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,081,016

SEK

(2,338

)

PGE Polska Grupa Energetyczna SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/14/23

205,711

(33,275

)

PGS

1-Day FEDEF + 0.30%

Monthly

SEBA

11/27/23

166,188

NOK

132

Pharming Group NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

31,228

EUR

4,212

PKN Orlen

1-Day FEDEF + 0.30%

Monthly

MSCS

11/20/23

33,996

1,296

PORR AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

90,981

EUR

12,504

Poste Italiane SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

118,932

EUR

1,949

PPC Ltd.

1-Day SABOR + 0.32%

Monthly

MSCS

7/17/23

1,437,934

ZAR

(7,672

)

Premier Foods PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

29,426

GBP

(1,003

)

Prysmian SpA

Euro STR + 0.35%

Monthly

JPHQ

8/22/23

91,115

EUR

3,156

PSI Software AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

68,103

EUR

(1,112

)

PSP

1-Day SARON + 0.35%

Monthly

JPHQ

11/29/23

16,140

CHF

(241

)

QIAGEN NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

212,042

EUR

15,244

QinetiQ Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/10/23

117,289

GBP

649

Quadient

1-Day EONIA + 0.30%

Monthly

MSCS

11/27/23

16,147

EUR

(490

)

Quantafuel

1-Week NIBOR + 0.28%

Monthly

SEBA

11/27/23

112,993

NOK

1,181

Quantum Genomics

1-Day EONIA + 0.30%

Monthly

MSCS

11/27/23

5,459

EUR

(445

)

Questerre Energy Corp.

1-Week NIBOR + 0.28%

Monthly

SEBA

11/27/23

111,216

NOK

290

Ramsay Health Care Ltd.

1-Month BBSW + 0.40%

Monthly

BZWS

4/21/23

365,997

AUD

3,577

Rana Gruber ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

1,068,437

NOK

306

franklintempleton.com Semiannual Report 97

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Randstad NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

132,906

EUR

$

4,823

Reach PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

13,911

GBP

(843

)

Redefine Properties Ltd.

1-Day SABOR + 0.31%

Monthly

MSCS

7/12/23

2,321,259

ZAR

13,957

Renew Holdings PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

59,641

GBP

(3,507

)

Renewi PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

209,468

GBP

(56,358

)

Repsol SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/12/23

82,331

EUR

21,487

Repsol SA

1-Day EONIA + 0.40%

Monthly

MSCO

10/24/23

1,028,008

EUR

57,522

Resilient REIT

1-Day SABOR + 0.70%

Monthly

MSCS

11/28/23

778,319

ZAR

(280

)

Restaurant Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

13,768

GBP

(1,720

)

Retail Estates NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

145,440

EUR

(832

)

Rexel

1-Day EONIA + 0.30%

Monthly

MSCS

7/13/23

160,577

EUR

22,320

Richemont

1-Day SARON + 0.35%

Monthly

JPHQ

7/31/23

158,465

CHF

33,987

Rightmove PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

97,434

GBP

(7,104

)

Roche

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

212,813

CHF

(7,409

)

Rockwool A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

1,311,590

DKK

(12,321

)

Rothschild & Co.

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

157,224

EUR

25,195

Rovio Entertainment OYJ

Euro STR + 0.28%

Monthly

SEBA

9/04/23

89,044

EUR

2,232

RPS Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

13,946

GBP

(51

)

Ryanair Holdings PLC

1-Month EURIBOR + 0.40%

Monthly

MSCS

11/14/23

253,059

EUR

(8,574

)

S IMMO AG

Euro STR + 0.35%

Monthly

JPHQ

12/01/23

2,600

EUR

(34

)

SA Corporate Real Estate Ltd.

1-Day SABOR + 0.34%

Monthly

MSCS

7/17/23

1,082,341

ZAR

3,858

Saab AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

878,917

SEK

(2,200

)

Sabesp

1-Day FEDEF + 1.00%

Monthly

MSCO

9/26/23

389,102

37,397

Safestore Holdings PLC

1-Day SONIA + 0.35%

Monthly

MSCS

10/06/23

48,593

GBP

5,363

SAF-HOLLAND SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

152,559

EUR

16,128

Sagax AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/24/23

579,784

SEK

4,652

Saint Gobain

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

206,679

EUR

13,155

Sanlorenzo

Euro STR + 0.35%

Monthly

JPHQ

8/25/23

125,814

EUR

4,034

Sappi Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

11/27/23

285,782

ZAR

(286

)

Saras

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

16,154

EUR

(1,185

)

Sartorius Stedim Biotech SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

56,925

EUR

281

Sartorius AG

1-Day EONIA + 0.30%

Monthly

JPHQ

7/19/23

115,227

EUR

(2,050

)

Sasol Ltd.

1-Day SABOR + 0.33%

Monthly

MSCS

7/17/23

3,901,808

ZAR

(25,694

)

SAVILLS PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

258,620

GBP

(22,707

)

SBB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

176,649

SEK

818

Scandi Standard AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

796,099

SEK

30,206

Schindler

1-Day SARON + 0.35%

Monthly

JPHQ

11/29/23

50,369

CHF

(427

)

SCOR SE

1-Day EONIA + 0.30%

Monthly

MSCS

8/11/23

167,077

EUR

16,593

Seplat Energy

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

9,791

GBP

(21

)

SESA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

176,466

EUR

10,736

Shangji Auto

1-Day FEDEF + 0.30%

Monthly

MSCO

10/24/23

955,947

(143,723

)

Sibanye Stillwater Ltd.

1-Day SABOR + 0.31%

Monthly

MSCS

7/14/23

2,708,287

ZAR

34,817

Siegfried

1-Day SARON + 0.35%

Monthly

JPHQ

11/09/23

103,828

CHF

(4,473

)

Signify NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

201,566

EUR

15,093

SII

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

85,934

EUR

4,102

Siltronic AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

121,314

EUR

17,246

Sinch

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

179,234

SEK

(590

)

SIPEF

Euro STR + 0.35%

Monthly

JPHQ

7/13/23

48,048

EUR

(1,970

)

Smart Eye AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

153,542

SEK

(196

)

SMCP SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

158,470

EUR

54,631

Smith & Nephew PLC

1-Day SONIA + 0.44%

Monthly

MSCS

11/14/23

1,343,371

GBP

41,904

Snam SpA

Euro STR + 0.35%

Monthly

JPHQ

10/13/23

106,450

EUR

5,282

Societe Generale SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

172,357

EUR

37,664

Societe Generale SA

1-Month LIBOR + 0.40%

Monthly

GSCO

3/14/25

377,157

EUR

115,600

Solar A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/13/23

1,486,314

DKK

(10,033

)

98 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Solstad Offshore

1-Week NIBOR + 0.28%

Monthly

SEBA

11/27/23

167,704

NOK

$

2,389

SolTech Energy Sweden AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

87,648

SEK

1,162

Solutions 30

1-Day EONIA + 0.30%

Monthly

MSCS

11/27/23

15,990

EUR

(653

)

Solvay

Euro STR + 0.35%

Monthly

JPHQ

10/09/23

134,000

EUR

(5,469

)

Sonova

Euro STR + 0.35%

Monthly

JPHQ

7/31/23

155,245

CHF

6,225

Sopra Steria Group SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

183,303

EUR

1,712

Southern Energy Corp.

1-Day SONIA + 0.35%

Monthly

MSCS

11/29/23

4,490

GBP

(29

)

Speedy Hire PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

97,556

GBP

(1,654

)

SSAB AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,124,750

SEK

29,734

Stadler Rail AG

Euro STR + 0.35%

Monthly

JPHQ

7/31/23

123,714

CHF

6,649

Standard Chartered PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

141,611

GBP

17,387

STEF

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

73,208

EUR

(6,675

)

Stellantis NV

Euro STR + 0.35%

Monthly

JPHQ

7/12/23

217,358

EUR

19,382

SThree PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/12/23

209,326

GBP

22,690

Stillfront Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,248,957

SEK

(32,647

)

Stockmann PLC

Euro STR + 0.28%

Monthly

SEBA

7/12/23

157,977

EUR

(49,246

)

Stolt-Nielsen Ltd.

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

1,599,856

NOK

40,640

Stora Enso Oyj

Euro STR + 0.28%

Monthly

SEBA

10/23/23

125,887

EUR

1,645

STORE Capital

OBFR + 0.45%

Monthly

BZWS

9/25/23

6,109,117

24,274

Storskogen Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

174,642

SEK

(564

)

STRABAG SE

Euro STR + 0.35%

Monthly

JPHQ

7/12/23

213,981

EUR

3,283

Stroeer SE & Co. KGaA

1-Month EURIBOR + 0.40%

Monthly

MSCS

11/14/23

191,259

EUR

(1,702

)

Sulzer Ltd.

1-Day SARON + 0.35%

Monthly

JPHQ

11/10/23

138,402

CHF

312

Superdry PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

13,711

GBP

(1,842

)

Sureserve Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

31,525

GBP

(5,976

)

SUSS MicroTec SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

97,600

EUR

15,117

Swatch Group Ltd.

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

104,792

CHF

4,066

Swedish Orphan Biovitrum AB

1-Week STIBOR + 0.65%

Monthly

SEBA

7/13/23

3,320,084

SEK

4,239

Swiss Life Holding AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

223,451

CHF

4,995

Swiss Prime Site

1-Day SARON + 0.35%

Monthly

JPHQ

11/10/23

80,729

CHF

(3,288

)

Swissquote Group Holding SA

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

60,003

CHF

3,659

Sydbank A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

679,100

DKK

25,952

Sylvania Platinum Ltd.

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

90,912

GBP

24,930

Synthomer PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

13,819

GBP

(1,131

)

Talanx AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

229,937

EUR

24,556

Tauron Polska Energia SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

182,659

(53,101

)

TBC Bank Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

60,137

GBP

56,305

TeamViewer AG

Euro STR + 0.35%

Monthly

JPHQ

8/01/23

163,802

EUR

25,782

Technip Energies NV

1-Day EONIA + 0.30%

Monthly

MSCS

8/07/23

148,230

EUR

35,313

Telecom Plus PLC

1-Day SONIA + 0.35%

Monthly

MSCS

9/06/23

147,016

GBP

65,333

Telkom SA SOC Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

7/17/23

285,949

ZAR

107

Tessenderlo Group

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

130,651

EUR

3,428

TF1 Group

1-Day EONIA + 0.30%

Monthly

MSCS

7/12/23

194,443

EUR

22,842

Thales

1-Day EONIA + 0.30%

Monthly

MSCS

8/23/23

141,313

EUR

1,341

Tharisa PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

32,680

GBP

3,163

THG PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

14,040

GBP

141

Thungela Resources Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

8/23/23

2,503,010

ZAR

(8,689

)

ThyssenKrupp AG

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

16,224

EUR

204

TIM SpA

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

16,082

EUR

(1,120

)

Tod’s SpA

Euro STR + 0.35%

Monthly

JPHQ

11/30/23

5,158

EUR

10

Toshiba Corp.

1-Day MUTSCALM + 0.55%

Monthly

MSCO

8/25/23

57,983,894

JPY

(40,016

)

Trainline PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

127,416

GBP

(8,693

)

Transtema Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

963,597

SEK

(1,021

)

Trelleborg AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

880,639

SEK

14,296

Tremor International Ltd.

1-Day SONIA + 0.35%

Monthly

MSCS

10/06/23

105,927

GBP

(613

)

franklintempleton.com Semiannual Report 99

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

TUI AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

130,045

EUR

$

5,574

Tullow Oil PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

73,726

GBP

(2,689

)

Turkiye Hava Yollari

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

67,753

62,858

Turkiye Sinai Kalkinma Bankasi AS

1-Day FEDEF + 0.30%

Monthly

MSCS

11/27/23

16,860

223

TX Group AG

1-Day SARON + 0.35%

Monthly

JPHQ

11/27/23

13,917

CHF

19

u-blox AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

190,027

CHF

25,213

UBS Group AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

229,984

CHF

12,325

Umicore

Euro STR + 0.35%

Monthly

JPHQ

11/21/23

107,321

EUR

894

Unicaja Banco

1-Day EONIA + 0.35%

Monthly

MSCS

11/13/23

73,830

EUR

2,033

UniCredit SpA

Euro STR + 0.35%

Monthly

JPHQ

9/25/23

215,199

EUR

2,568

Unipol Gruppo SpA

Euro STR + 0.35%

Monthly

JPHQ

7/14/23

310,726

EUR

18,200

Universal Music Group NV

Euro STR + 0.35%

Monthly

JPHQ

10/12/23

81,189

EUR

11,300

Uponor OYJ

Euro STR + 0.28%

Monthly

SEBA

7/17/23

112,970

EUR

9,475

VakifBank

1-Day FEDEF + 0.30%

Monthly

MSCS

11/27/23

16,907

(118

)

Valiant

Euro STR + 0.35%

Monthly

JPHQ

7/12/23

235,127

CHF

9,146

Valora

1-Day SARON + 0.35%

Monthly

JPHQ

11/27/23

6,976

CHF

(11

)

Var Energi

1-Week NIBOR + 0.28%

Monthly

SEBA

10/23/23

931,149

NOK

4,537

Varia US Properties AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

22,553

CHF

387

Vastned Retail NV

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

12,329

EUR

(353

)

VEF

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

105,889

SEK

(145

)

Veidekke

1-Week NIBOR + 0.28%

Monthly

SEBA

8/24/23

712,773

NOK

(2,303

)

Verallia

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

128,267

EUR

45,361

Verbund AG

Euro STR + 0.35%

Monthly

JPHQ

8/23/23

31,303

EUR

3,047

Vertu Motors PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

115,303

GBP

(20,178

)

Vetropack

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

105,693

CHF

(1,616

)

VIB Vermoegen AG

Euro STR + 0.35%

Monthly

JPHQ

7/12/23

74,837

EUR

(5,328

)

Victoria PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

13,770

GBP

(919

)

Vilmorin & Cie SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

53,593

EUR

11,186

Virgin Money PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

62,346

GBP

24,879

Vitec Software Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

917,306

SEK

(7,283

)

Vitesco Technologies

Euro STR + 0.35%

Monthly

JPHQ

9/04/23

111,595

EUR

(9,553

)

VNV Global

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

179,233

SEK

(841

)

Vodafone Group PLC

1-Day SONIA + 0.65%

Monthly

MSCO

2/08/23

1,853,842

GBP

(493,132

)

Volkswagen AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

60,350

EUR

979

Vontobel

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

111,778

CHF

(229

)

Vukile Property Fund Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

8/24/23

2,788,084

ZAR

5,567

Wacker Chemie AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

186,875

EUR

4,249

Wacker Neuson SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

119,328

EUR

5,615

Wallenius Wilhelmsen ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

183,277

NOK

5,170

Watkin Jones PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

297,550

GBP

(172,955

)

Wereldhave NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

94,456

EUR

2,646

Wickes Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

208,028

GBP

(32,554

)

Wienerberger AG

Euro STR + 0.35%

Monthly

JPHQ

10/09/23

123,929

EUR

7,067

Wihlborgs Fastigheter AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,873,608

SEK

14,184

WithSecure

Euro STR + 0.28%

Monthly

SEBA

7/17/23

16,286

EUR

(1,067

)

Woodbois Ltd.

1-Day SONIA + 0.35%

Monthly

MSCS

11/28/23

6,175

GBP

(400

)

Workspace Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

10/27/23

91,280

GBP

(4,478

)

WPP PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

125,829

GBP

15,192

Wuestenrot & Wuerttembergische AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

75,610

EUR

(1,464

)

Xior Student Housing NV

Euro STR + 0.35%

Monthly

JPHQ

7/28/23

164,264

EUR

(12,936

)

XXL ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

11/27/23

72,332

NOK

117

Yamana Gold Inc.

1-Day FEDEF + 0.40%

Monthly

MSCO

11/29/23

280,794

13,724

Yara International ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

1,081,367

NOK

13,365

YouGov

1-Day SONIA + 0.35%

Monthly

MSCS

10/27/23

42,618

GBP

4,126

100 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Zehnder

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

249,776

CHF

$

7,818

Zepak Corp.

1-Day FEDEF + 0.30%

Monthly

MSCS

11/27/23

16,950

(101

)

Zephyr Energy

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

9,469

GBP

(125

)

Zug Estates Holding AG

1-Day SARON + 0.35%

Monthly

JPHQ

11/27/23

9,966

CHF

(7

)

Zumtobel Group AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

29,622

EUR

(112

)

Zur Rose Group

1-Day SARON + 0.35%

Monthly

JPHQ

11/27/23

15,591

CHF

(1,086

)

1,915,929

Equity Contracts – Shortd

1Life Healthcare Inc.

1-Day FEDEF - 0.35%

Monthly

MSCO

10/25/23

263,069

1,426

AAK AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

3,207,050

SEK

(14,768

)

AB Dynamics PLC

1-Day SONIA - 1.25%

Monthly

MSCS

7/18/23

58,308

GBP

(25,964

)

ABB Ltd.

1-Day SARON - 0.35%

Monthly

JPHQ

10/31/23

76,869

CHF

(1,637

)

ABB Ltd.

1-Week STIBOR - 0.28%

Monthly

SEBA

11/27/23

351,288

SEK

138

ABOUT YOU Holding SE

Euro STR - 6.00%

Monthly

JPHQ

7/17/23

38,923

EUR

(3,077

)

Abrdn European Logistics Income PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

114,426

GBP

32,202

Accor SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

165,987

EUR

(952

)

ACEA

Euro STR - 0.30%

Monthly

JPHQ

10/13/23

48,915

EUR

(454

)

Acomo NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

42,767

EUR

(1,451

)

Adecco

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

123,986

CHF

4,608

adesso SE

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

72,473

EUR

(21,212

)

Adevinta ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/17/23

1,805,341

NOK

(39,901

)

Admiral Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

147,383

GBP

(10,872

)

AECI Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

9/20/23

2,482,796

ZAR

(9,447

)

Aeffe

Euro STR - 3.20%

Monthly

JPHQ

8/08/23

34,836

EUR

635

Agilyx

1-Week NIBOR - 4.25%

Monthly

SEBA

8/07/23

325,240

NOK

(4,136

)

Agnico Eagle Mines Ltd.

1-Day FEDEF - 0.35%

Monthly

MSCO

11/29/23

98,826

(3,314

)

Agronomics Ltd.

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

47,089

GBP

5,421

Air Liquide

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

32,196

EUR

424

Aker BP ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/17/23

1,198,151

NOK

(9,374

)

Aker Carbon Capture ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/14/23

77,006

NOK

2,801

Aker Horizons

1-Week NIBOR - 4.25%

Monthly

SEBA

11/22/23

379,129

NOK

1,362

AkzoNobel NV

Euro STR - 0.30%

Monthly

JPHQ

8/28/23

189,328

EUR

(6,379

)

Alcadon Group AB

1-Week STIBOR - 6.00%

Monthly

SEBA

7/17/23

155,375

SEK

(8

)

Alfa Laval AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

353,011

SEK

111

Allfunds Group PLC

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

33,326

EUR

2,484

Allianz SE

Euro STR - 0.30%

Monthly

JPHQ

11/27/23

32,371

EUR

90

Allreal Holding AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

217,554

CHF

6

Alm. Brand A/S

1-Week CIBOR - 0.75%

Monthly

SEBA

7/26/23

1,239,459

DKK

(17,411

)

Almirall SA

1-Day EONIA - 0.35%

Monthly

MSCS

10/11/23

113,512

EUR

2,820

Alpha FX Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

99,699

GBP

(43,338

)

Alstom SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/13/23

156,177

EUR

(15,307

)

Aluflexpack AG

Euro STR - 0.85%

Monthly

JPHQ

7/17/23

45,231

CHF

(7,970

)

Ambu A/S

1-Week CIBOR - 1.50%

Monthly

SEBA

7/17/23

453,417

DKK

(12,925

)

AMG Advanced Metallurgical Group NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

50,506

EUR

512

Amplifon

Euro STR - 0.30%

Monthly

JPHQ

11/27/23

84,356

EUR

1,898

AngloGold Ashanti Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

10/06/23

3,110,649

ZAR

(38,431

)

Anheuser-Busch InBev SA/NV

Euro STR - 0.30%

Monthly

JPHQ

7/13/23

198,364

EUR

(12,305

)

Anora Group PLC

Euro STR - 0.28%

Monthly

SEBA

7/17/23

81,104

EUR

6,583

Antares Vision

Euro STR - 2.65%

Monthly

JPHQ

8/07/23

15,845

EUR

(291

)

Antero Resources Corp.

1-Day FEDEF - 0.35%

Monthly

MSCO

10/23/23

116,658

(1,581

)

Antin Infrastructure Partners

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

156,201

EUR

4,779

Aramis Group

1-Day EONIA - 8.50%

Monthly

MSCS

7/17/23

75,799

EUR

(13,220

)

franklintempleton.com Semiannual Report 101

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

Arbonia AG

1-Day SARON - 0.35%

Monthly

JPHQ

11/08/23

69,266

CHF

$

1,065

Arcelik

1-Day FEDEF - 5.00%

Monthly

MSCS

7/17/23

133,760

(41,679

)

Argan SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

119,187

EUR

19,529

Aroundtown SA

Euro STR - 0.30%

Monthly

JPHQ

7/12/23

47,714

EUR

(4,591

)

Ascential PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

214,864

GBP

21,714

Ascopiave SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

41,726

EUR

(1,628

)

Aselsan AS

1-Day FEDEF - 7.50%

Monthly

MSCS

7/17/23

111,890

(120,885

)

Ashmore Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/18/23

78,926

GBP

(16,208

)

ASOS PLC

1-Day SONIA - 0.88%

Monthly

MSCS

9/29/23

65,480

GBP

(5,369

)

Aspen Pharmacare Holdings Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/17/23

2,242,366

ZAR

2,673

Assa Abloy AB

1-Week STIBOR - 0.28%

Monthly

SEBA

11/27/23

352,027

SEK

463

AstraZeneca PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/23

28,008

GBP

(420

)

AstraZeneca PLC

1-Day SONIA - 0.30%

Monthly

SEBA

11/27/23

354,432

SEK

(567

)

Atlas Copco

1-Week STIBOR - 0.28%

Monthly

SEBA

11/27/23

352,902

SEK

308

Atlas Copco

1-Week STIBOR - 0.28%

Monthly

SEBA

11/27/23

353,024

SEK

437

Atos SE

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

66,187

EUR

(22,279

)

AUTO1 Group SE

Euro STR - 0.75%

Monthly

JPHQ

7/14/23

188,413

EUR

4,898

Avanza Bank Holding AB

1-Week STIBOR - 0.75%

Monthly

SEBA

7/17/23

921,293

SEK

(18,104

)

Avon Protection PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

126,646

GBP

(11,256

)

Azelis Holding SA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

110,024

EUR

(5,983

)

B&M European Value Retail SA

1-Day SONIA - 0.30%

Monthly

MSCS

10/31/23

142,158

GBP

(36,326

)

B&S Group SA

Euro STR - 0.30%

Monthly

JPHQ

10/12/23

39,621

EUR

(2,184

)

Bachem AG

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

159,083

CHF

(29,247

)

Banca Generali SpA

Euro STR - 0.30%

Monthly

JPHQ

9/21/23

171,541

EUR

(1,687

)

Banque Cantonale Vaudoise

Euro STR - 0.35%

Monthly

JPHQ

7/12/23

256,065

CHF

9,171

Barloworld Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

10/03/23

2,040,169

ZAR

(11,940

)

Basic-Fit

Euro STR - 1.75%

Monthly

JPHQ

7/14/23

42,414

EUR

(2,140

)

Basler AG

Euro STR - 1.20%

Monthly

JPHQ

7/17/23

104,131

EUR

(12,668

)

BAWAG Group AG

Euro STR - 0.30%

Monthly

JPHQ

10/23/23

135,643

EUR

2,818

BayWa AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

150,250

EUR

(1,485

)

Befesa SA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

270,963

EUR

(17,186

)

Beiersdorf AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

76,602

EUR

(3,238

)

Beijer Ref AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

1,825,521

SEK

(34,191

)

Believe SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

24,798

EUR

(8,394

)

Belimo Holding AG

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

243,492

CHF

(10,922

)

Berkeley Group Holdings PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/17/23

148,220

GBP

1,289

BFF Bank SpA

Euro STR - 0.30%

Monthly

JPHQ

10/16/23

38,806

EUR

(1,417

)

BHP Group Ltd.

1-Day SONIA - 0.30%

Monthly

MSCS

12/01/23

4,588

GBP

(22

)

Bollore SE

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

239,329

EUR

(42,835

)

Boohoo Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

9/01/23

72,542

GBP

(1,939

)

Borussia Dortmund

Euro STR - 0.95%

Monthly

JPHQ

7/17/23

75,871

EUR

4,037

Bossard AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

208,530

CHF

(8,759

)

Bouygues Telecom

1-Day EONIA - 0.30%

Monthly

MSCS

8/09/23

124,967

EUR

3,444

Bpost

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

6,781

EUR

43

Bufab AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

633,273

SEK

6,779

Bunzl PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/23

27,828

GBP

337

Bureau Veritas SA

1-Day EONIA - 0.30%

Monthly

MSCS

8/09/23

181,015

EUR

3,251

Burford Capital Ltd.

1-Day SONIA - 0.63%

Monthly

MSCS

7/17/23

159,256

GBP

12,769

Burkhalter

1-Day SARON - 0.35%

Monthly

JPHQ

9/20/23

57,416

CHF

(1,715

)

BW Energy Ltd.

1-Week NIBOR - 0.45%

Monthly

SEBA

7/17/23

1,170,166

NOK

(18,464

)

Bystronic AG

Euro STR - 0.35%

Monthly

JPHQ

8/03/23

218,050

CHF

(18,487

)

CA Immobilien Anlagen AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

285,252

EUR

11,782

Cadeler AS

1-Week NIBOR - 6.50%

Monthly

SEBA

7/17/23

1,055,141

NOK

(11,811

)

CaixaBank SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/23

122,732

EUR

(30,653

)

Campari

Euro STR - 0.30%

Monthly

JPHQ

7/31/23

159,077

EUR

(11,584

)

Camurus AB

1-Week STIBOR - 0.75%

Monthly

SEBA

7/17/23

1,065,231

SEK

(18,247

)

102 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

Capitec Bank Holdings Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/14/23

5,504,065

ZAR

$

(16,474

)

Carel Industries

Euro STR - 0.30%

Monthly

JPHQ

9/21/23

77,792

EUR

(6,412

)

Carnival Corp.

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

211,401

GBP

(10,855

)

Castellum AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

1,619,531

SEK

16,279

CCC SA

1-Day FEDEF - 12.75%

Monthly

MSCS

8/02/23

59,726

4,249

CD Projekt SA

1-Day FEDEF - 1.25%

Monthly

MSCS

7/17/23

193,073

(83,862

)

Cellnex Telecom SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/14/23

387,499

EUR

60,533

Ceres Power Holdings PLC

1-Day SONIA - 1.38%

Monthly

MSCS

7/17/23

77,414

GBP

(3,972

)

CEWE Stiftung & Co. KGaA

Euro STR - 0.75%

Monthly

JPHQ

9/01/23

44,237

EUR

(6,450

)

CGG SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

100,684

EUR

13,118

Cint Group AB

1-Week STIBOR - 0.45%

Monthly

SEBA

7/17/23

168,832

SEK

1,237

CIR SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

31,854

EUR

1,023

Civitas Social Housing PLC

1-Day SONIA - 0.30%

Monthly

MSCS

9/01/23

143,834

GBP

22,652

Clicks Group Ltd.

1-Day SABOR - 1.25%

Monthly

MSCS

10/06/23

3,363,132

ZAR

(7,685

)

Close Brothers Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/31/23

135,214

GBP

(9,912

)

Cloudberry Clean Energy ASA

1-Week NIBOR - 1.00%

Monthly

SEBA

7/17/23

418,141

NOK

8,276

CMC Markets PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/17/23

95,677

GBP

429

Coca-Cola HBC AG

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/23

27,872

GBP

229

Cofinimmo

Euro STR - 0.30%

Monthly

JPHQ

10/13/23

97,038

EUR

5,339

Coloplast A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/17/23

401,735

DKK

(1,388

)

Colruyt SA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

215,511

EUR

4,178

Compass Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/23

28,062

GBP

(558

)

Concentric AB

1-Week STIBOR - 0.75%

Monthly

SEBA

7/17/23

553,262

SEK

(3,186

)

Convatec Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

149,626

GBP

(10,180

)

Corbion NV

Euro STR - 0.30%

Monthly

JPHQ

7/12/23

178,576

EUR

(7,479

)

Corporacion Acciona

1-Day EONIA - 0.50%

Monthly

MSCO

10/13/23

561,016

EUR

15,832

COSMO Pharmaceuticals NV

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

150,854

CHF

(8,045

)

Covestro AG

Euro STR - 0.30%

Monthly

JPHQ

11/06/23

113,078

EUR

(6,021

)

Covivio SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

100,165

EUR

(179

)

Credem

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

112,786

EUR

(8,545

)

Credit Agricole SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

108,937

EUR

(9,499

)

Croda International PLC

1-Day SONIA - 0.44%

Monthly

MSCS

11/27/23

27,862

GBP

341

CTP NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

125,725

EUR

1,276

Cyfrowy Polsat SA

1-Day FEDEF - 0.50%

Monthly

MSCS

7/17/23

148,481

(2,290

)

Daetwyler

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

303,653

CHF

(5,753

)

D’Amico

Euro STR

Monthly

JPHQ

9/04/23

44,606

EUR

(4,334

)

Danone SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

32,253

EUR

265

De La Rue PLC

1-Day SONIA - 0.66%

Monthly

MSCS

7/17/23

43,252

GBP

(4,574

)

Deliveroo PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

58,464

GBP

(4,224

)

Delivery Hero SE

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

125,337

EUR

(17,808

)

De’Longhi SpA

Euro STR - 0.30%

Monthly

JPHQ

7/25/23

232,887

EUR

(32,512

)

Deutsche Beteiligungs AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

96,066

EUR

(10,376

)

Deutsche Boerse

Euro STR - 0.30%

Monthly

JPHQ

11/27/23

32,288

EUR

(444

)

Deutsche Wohnen SE

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

212,538

EUR

1,772

Diageo PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/23

27,894

GBP

(292

)

Digital Bros Group

Euro STR - 0.80%

Monthly

JPHQ

10/13/23

127,170

EUR

8,440

Digital Value SpA

Euro STR - 0.30%

Monthly

JPHQ

11/27/23

20,317

EUR

26

Dignity PLC

1-Day SONIA - 1.97%

Monthly

MSCS

7/17/23

47,221

GBP

6,390

Dino Polska SA

1-Day FEDEF - 0.50%

Monthly

MSCS

7/14/23

220,452

(34,166

)

Discovery Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/17/23

2,456,657

ZAR

(3,598

)

Dometic Group AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

2,135,496

SEK

(29,770

)

Dottikon ES Holding AG

1-Day SARON - 1.40%

Monthly

JPHQ

7/17/23

279,310

CHF

(2,824

)

DRDGOLD Ltd.

1-Day SABOR - 1.00%

Monthly

MSCS

7/17/23

554,783

ZAR

(3,936

)

DSV A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/14/23

352,538

DKK

(4,516

)

Dufry AG

1-Day SARON - 0.35%

Monthly

BZWS

11/17/23

373,448

CHF

(7,149

)

Ebro Foods SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/13/23

157,338

EUR

3,679

franklintempleton.com Semiannual Report 103

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

Eckert & Ziegler AG

Euro STR - 0.30%

Monthly

JPHQ

8/21/23

204,086

EUR

$

(62,887

)

EDP Renovaveis SA

1-Day EONIA - 0.50%

Monthly

MSCO

10/13/23

613,568

EUR

824

Electrolux AB

1-Week STIBOR - 1.00%

Monthly

SEBA

10/03/23

1,264,433

SEK

(31,951

)

Elior Group SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/14/23

113,279

EUR

(49,531

)

Elisa Oyj

Euro STR - 0.28%

Monthly

SEBA

11/15/23

48,768

EUR

167

Emmi

1-Day SARON - 0.35%

Monthly

JPHQ

9/04/23

118,712

CHF

(6,261

)

Ems-chemie AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

158,694

CHF

1,656

Enagas SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/18/23

35,387

EUR

(638

)

ENAV SpA

Euro STR - 0.30%

Monthly

JPHQ

9/21/23

122,382

EUR

(11,798

)

ENEL SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

119,780

EUR

(8,547

)

Enento Group OYJ

Euro STR - 0.28%

Monthly

SEBA

7/17/23

49,100

EUR

(633

)

Energean PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

93,024

GBP

(36,233

)

Entra ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/13/23

2,186,324

NOK

29,230

Epiroc AB

1-Week STIBOR - 0.28%

Monthly

SEBA

11/27/23

353,911

SEK

(387

)

EQT AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

1,693,203

SEK

(10,074

)

Eregli Demir ve Celik Fabrikalari TAS

1-Day FEDEF - 5.00%

Monthly

MSCS

7/14/23

100,949

(51,422

)

Erste Group Bank AG

Euro STR - 0.30%

Monthly

JPHQ

10/12/23

84,123

EUR

(2,560

)

Esprinet

Euro STR - 0.30%

Monthly

JPHQ

11/27/23

57,202

EUR

325

Essentra PLC

1-Day SONIA - 0.30%

Monthly

MSCS

9/01/23

134,251

GBP

(42,767

)

EssilorLuxottica SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

60,913

EUR

(12,976

)

Essity AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

1,541,268

SEK

(1,965

)

Euronext

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

79,324

EUR

2,110

Eurotech

Euro STR - 10.60%

Monthly

JPHQ

8/04/23

72,901

EUR

(1,818

)

Evolution

1-Week STIBOR - 0.28%

Monthly

SEBA

11/29/23

56,021

SEK

4,813

Exasol AG

Euro STR - 2.05%

Monthly

JPHQ

7/17/23

2,364

EUR

57

EXMAR

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

48,311

EUR

(447

)

Experian PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/23

27,928

GBP

228

Fabege AB

1-Week STIBOR - 0.28%

Monthly

SEBA

10/04/23

515,004

SEK

(8,440

)

Faurecia SE

1-Day EONIA - 0.30%

Monthly

MSCS

8/09/23

206,480

EUR

(33,640

)

Ferguson PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/23

27,711

GBP

1,359

Ferrari SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

163,615

EUR

(5,437

)

Ferrovial SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/23

315,843

EUR

(11,948

)

Fevertree Drinks PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/25/23

235,278

GBP

(61,378

)

Fielmann AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

214,030

EUR

(5,168

)

FinecoBank SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

182,662

EUR

(19,338

)

Flow Traders NV

Euro STR - 0.30%

Monthly

JPHQ

8/28/23

73,172

EUR

4,253

Fluidra SA

1-Day EONIA - 0.35%

Monthly

MSCS

9/29/23

150,447

EUR

5,165

Flutter Entertainment PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/31/23

165,372

GBP

(34,888

)

Fortress REIT Ltd.

1-Day SABOR - 0.56%

Monthly

MSCS

7/12/23

4,866,602

ZAR

(16,759

)

Francaise Energie

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

201,332

EUR

56,197

Fresenius Medical Care AG & Co.

1-Day FEDEF - 0.50%

Monthly

JPHQ

11/20/23

16,062

EUR

(291

)

Fresnillo PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

173,993

GBP

(65,010

)

Friedrich Vorwerk Group SE

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

88,826

EUR

(10,942

)

Fugro

Euro STR - 0.30%

Monthly

JPHQ

10/12/23

78,359

EUR

(7,231

)

GAM

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

3,271

CHF

(469

)

Generali Group

Euro STR - 0.30%

Monthly

JPHQ

10/13/23

60,035

EUR

(1,992

)

Genuit Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

157,640

GBP

20,949

Getlink SE

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

210,400

EUR

33,955

Givaudan SA

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

109,890

CHF

(7,660

)

Gjensidige Forsikring ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/17/23

1,686,632

NOK

7,431

Granges AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

1,225,477

SEK

(3,399

)

Great Portland Estates PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

195,446

GBP

27,222

Greatland Gold PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

181,075

GBP

40,740

Grenergy Renovables SA

1-Day EONIA - 1.75%

Monthly

MSCS

12/01/23

10,500

EUR

17

Grifols SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/23

74,056

EUR

26,440

104 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

Groupe SEB

1-Day EONIA - 0.30%

Monthly

MSCS

8/30/23

217,976

EUR

$

(27,424

)

Groupe ADP

1-Day EONIA - 0.30%

Monthly

MSCS

11/27/23

32,288

EUR

5

Groupe Bruxelles Lambert NV

Euro STR - 0.30%

Monthly

JPHQ

7/12/23

219,643

EUR

(1,550

)

Gruppo MutuiOnline SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

161,301

EUR

(20,731

)

Gurit

Euro STR - 1.20%

Monthly

JPHQ

7/17/23

125,757

CHF

(3,694

)

GVS

Euro STR - 0.30%

Monthly

JPHQ

7/13/23

24,097

EUR

8,444

The Gym Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

53,205

GBP

26,146

Halfords Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

10/11/23

71,726

GBP

(14,039

)

Halma PLC

1-Day SONIA - 0.30%

Monthly

MSCS

10/27/23

98,022

GBP

224

Hamborner REIT AG

Euro STR - 0.30%

Monthly

JPHQ

9/27/23

75,734

EUR

1,827

Hannover Re

Euro STR - 0.30%

Monthly

JPHQ

11/27/23

32,586

EUR

(293

)

Hannover Rueck SE

1-Day EONIA - 0.35%

Monthly

GSCO

3/14/25

243,195

EUR

(100,682

)

Hansa Biopharma AB

1-Week STIBOR - 1.00%

Monthly

SEBA

7/17/23

375,436

SEK

(247

)

Heineken Holding NV

Euro STR - 0.35%

Monthly

JPHQ

11/27/23

32,198

EUR

160

Hektas

1-Day FEDEF - 15.00%

Monthly

MSCS

7/17/23

5,828

(202,426

)

Helical PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

58,658

GBP

8,990

Helios Towers PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

196,847

GBP

16,589

HELLA GmbH & Co. KGaA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

165,243

EUR

(11,008

)

Henkel AG & Co. KGaA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

43,286

EUR

(753

)

Hennes & Mauritz AB

1-Week STIBOR - 0.40%

Monthly

GSCO

3/14/25

2,651,823

SEK

71,965

Henry Boot PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

40,515

GBP

6,000

Hera

Euro STR - 0.30%

Monthly

JPHQ

11/27/23

84,477

EUR

(53

)

Hermes International

1-Day SONIA - 0.40%

Monthly

MSCS

9/07/23

69,550

EUR

(9,472

)

Hexagon Composites ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/17/23

939,694

NOK

(4,749

)

Hexagon Purus ASA

1-Week NIBOR - 3.00%

Monthly

SEBA

8/28/23

406,589

NOK

(1,902

)

HIAG Immobilien Holding AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

45,975

CHF

(363

)

Hill & Smith Holdings PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/17/23

134,749

GBP

(16,643

)

Hiscox Ltd. ORD

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

120,985

GBP

(20,656

)

Hitachi Transport System Ltd.

1-Day MUTSCALM - 0.40%

Monthly

MSCO

9/22/23

2,255,347

JPY

(213

)

HMM Co. Ltd.

1-Day FEDEF - 3.50%

Monthly

MSCS

8/10/23

252,628

(6,852

)

HomeServe

1-Day SONIA - 0.35%

Monthly

MSCO

9/21/23

757,302

GBP

(1,318

)

Horizonte Minerals PLC

1-Day SONIA - 11.00%

Monthly

MSCS

8/10/23

14,204

GBP

(1,939

)

Hufvudstaden AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/12/23

1,818,676

SEK

(31,644

)

Huhtamaki OYJ

Euro STR - 0.28%

Monthly

SEBA

7/13/23

179,945

EUR

9,350

Husqvarna AB

1-Week STIBOR - 0.28%

Monthly

SEBA

11/01/23

983,833

SEK

(21,583

)

Hypoport SE

1-Day SABOR - 0.75%

Monthly

JPHQ

9/27/23

125,222

EUR

13,342

Hyprop Investments Ltd.

1-Day SABOR - 2.00%

Monthly

MSCS

7/17/23

1,549,554

ZAR

2,175

Iberdrola ORD

1-Day EONIA - 0.50%

Monthly

MSCO

12/01/23

1,115,683

EUR

(2,853

)

Iberdrola SA

1-Day EONIA - 0.35%

Monthly

MSCS

11/27/23

32,316

EUR

(78

)

Icade SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

116,512

EUR

9,133

Idorsia

Euro STR - 6.50%

Monthly

JPHQ

7/17/23

170,491

CHF

7,447

Ilika PLC

1-Day SONIA - 2.50%

Monthly

MSCS

7/17/23

3,147

GBP

1,194

IMCD Group NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

43,635

EUR

(1,818

)

IMI PLC

1-Day SONIA - 0.30%

Monthly

MSCS

10/26/23

61,663

GBP

(1,184

)

Industrial Select Sector Index

1-Day FEDEF - 0.12%

Monthly

MSCS

8/22/23

352,689

(1,088

)

Infrastrutture Wireless Italiane SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

164,937

EUR

(3,469

)

InPost SA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

275,704

EUR

(11,722

)

Instone Real Estate Group SE

Euro STR - 0.70%

Monthly

JPHQ

8/21/23

144,262

EUR

(7,045

)

IntegraFin Holdings PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

107,710

GBP

(23,233

)

InterContinental Hotels Group

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/23

27,901

GBP

(194

)

Interparfums SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

104,453

EUR

(18,435

)

Interroll Group

1-Day SARON - 0.35%

Monthly

JPHQ

10/26/23

118,943

CHF

(1,589

)

Intertek Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/31/23

151,977

GBP

(3,243

)

Intesa Sanpaolo SpA

Euro STR - 0.30%

Monthly

JPHQ

10/13/23

178,565

EUR

2,306

Investor AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/14/23

3,369,451

SEK

(37,143

)

franklintempleton.com Semiannual Report 105

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

INVISIO AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

1,195,552

SEK

$

(10,729

)

IQE PLC

1-Day SONIA - 1.25%

Monthly

MSCS

7/17/23

152,613

GBP

(59,091

)

Italian Wine Brands SpA

Euro STR - 1.30%

Monthly

JPHQ

7/17/23

30,638

EUR

(1,502

)

Italtile Ltd.

1-Day SABOR - 0.63%

Monthly

MSCS

8/08/23

258,838

ZAR

691

ITV PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

109,237

GBP

(19,297

)

James Halstead PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

37,240

GBP

2,086

JCDecaux SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

149,201

EUR

(14,742

)

Jenoptik AG NA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

187,821

EUR

(17,657

)

JM AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

2,734,026

SEK

8,580

John Wood Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

173,657

GBP

6,531

Johnson Service Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

107,926

GBP

6,835

JTC PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

231,977

GBP

(64,391

)

Jupiter Fund Management PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

143,619

GBP

(4,231

)

Just Eat Takeaway.com NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

82,446

EUR

(2,382

)

Juventus FC SpA

Euro STR - 3.20%

Monthly

JPHQ

9/01/23

34,285

EUR

854

Kahoot! ASA

1-Week NIBOR - 3.50%

Monthly

SEBA

7/17/23

1,102,442

NOK

(8,549

)

Kainos Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

85,527

GBP

(34,331

)

Kambi Group PLC

1-Week STIBOR - 0.75%

Monthly

SEBA

10/11/23

922,963

SEK

(16,690

)

Kardex

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

72,018

CHF

5,083

Karnov Group AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

540,850

SEK

5,183

KBC Groep NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

169,673

EUR

3,080

Kempower OYJ

Euro STR - 3.75%

Monthly

SEBA

7/17/23

29,546

EUR

(27,590

)

Kering SA

1-Month EURIBOR -0.40%

Monthly

MSCS

11/27/23

32,445

EUR

(1,071

)

Kerry Group PLC

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

132,409

EUR

9,252

KGHM Polska Miedz SA

1-Day FEDEF - 0.50%

Monthly

MSCS

8/18/23

91,758

(38,140

)

Kin + Carta PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

48,920

GBP

(16,785

)

Kinnevik AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

1,215,209

SEK

(9,123

)

Kitron ASA

1-Week NIBOR - 0.75%

Monthly

SEBA

7/17/23

360,490

NOK

(7,198

)

Kloeckner + Co SE NA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

317,322

EUR

(10,824

)

Knorr-Bremse AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

182,603

EUR

(26,486

)

Kojamo PLC

Euro STR - 0.28%

Monthly

SEBA

7/14/23

284,628

EUR

5,205

Kone OYJ

Euro STR - 0.28%

Monthly

SEBA

7/28/23

91,546

EUR

(20,240

)

Koninklijke DSM NV

Euro STR - 0.30%

Monthly

JPHQ

8/28/23

138,879

EUR

(2,174

)

Koninklijke Philips NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

98,354

EUR

(8,721

)

KWS SAAT SE & Co. KGaA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

10,265

EUR

(814

)

L F ORD

1-Day FEDEF - 4.00%

Monthly

MSCO

7/14/23

559,924

(67,522

)

Lanxess AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

288,898

EUR

(7,198

)

LEG Immobilien AG

Euro STR - 0.30%

Monthly

JPHQ

8/21/23

118,724

EUR

12,283

Legrand France SA

1-Day EONIA - 0.30%

Monthly

MSCS

8/09/23

83,224

EUR

2,288

LEM

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

186,864

CHF

(1,935

)

Lenzing AG

Euro STR - 0.30%

Monthly

JPHQ

7/14/23

245,897

EUR

16,292

LHC Group Inc.

1-Day FEDEF - 0.35%

Monthly

MSCO

10/25/23

553,644

12,240

Lifco

1-Week STIBOR - 0.28%

Monthly

SEBA

11/27/23

352,058

SEK

9

Linea Directa Aseguradora SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/23

144,595

EUR

16,639

London Stock Exchange Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

124,869

GBP

(9,659

)

L’Oreal SA

1-Day EONIA - 0.30%

Monthly

MSCS

8/09/23

95,159

EUR

469

Lotus Bakeries NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

223,470

EUR

(15,751

)

LU-VE SpA

Euro STR - 0.30%

Monthly

JPHQ

8/07/23

36,744

EUR

(4,443

)

LVMH Moet Hennessy Louis Vuitton SE

1-Day EONIA - 0.30%

Monthly

MSCS

7/03/23

33,179

EUR

(1,532

)

Magnora ASA

1-Week NIBOR - 7.00%

Monthly

SEBA

7/17/23

292,810

NOK

(4,664

)

Marel

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

17,574

EUR

(2,114

)

Marlowe PLC

1-Day SONIA - 0.30%

Monthly

MSCS

9/01/23

84,436

GBP

30,466

Mayr-Melnhof Karton AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

260,559

EUR

(18,972

)

mBank SA

1-Day FEDEF - 0.50%

Monthly

MSCS

7/14/23

193,261

(126,588

)

106 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

McPhy Energy SA

1-Day EONIA - 9.63%

Monthly

MSCS

7/17/23

29,555

EUR

$

(7,567

)

Medacta Group SA

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

111,815

CHF

(7,460

)

Medartis AG

1-Day SARON - 0.85%

Monthly

JPHQ

7/17/23

106,590

CHF

(6,110

)

Medicover AB

1-Week STIBOR - 0.28%

Monthly

SEBA

9/08/23

851,505

SEK

(11,916

)

Melia Hotels International

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/23

60,789

EUR

5,475

Meyer Burger AG

1-Day SARON - 0.95%

Monthly

JPHQ

7/14/23

240,451

CHF

(69,639

)

Millennium

1-Day FEDEF - 0.50%

Monthly

MSCS

7/17/23

151,384

(71,688

)

Mips AB

1-Week STIBOR - 0.28%

Monthly

SEBA

9/20/23

1,993,695

SEK

(36,162

)

MoneyGram International Inc.

1-Day FEDEF - 0.35%

Monthly

MSCO

2/06/23

534,838

(47,055

)

Morgan Stanley MSPSDCPH Index

1-Day FEDEF - 0.35%

Monthly

MSCO

10/03/23

294,846

(62,197

)

Morgan Stanley MSPSEGRL Index

1-Day SONIA - 1.50%

Monthly

MSCO

11/01/23

299,232

GBP

(5,014

)

Morgan Stanley MSPSENTH Index

1-Day SONIA - 0.45%

Monthly

MSCO

11/01/23

294,418

GBP

(9,381

)

Morgan Stanley MSPSGDXJ Index

1-Day FEDEF - 2.05%

Monthly

MSCO

6/19/23

639,740

8,111

Morgan Stanley MSPSKRE Index

1-Day FEDEF - 0.35%

Monthly

MSCO

9/21/23

460,874

(9,863

)

Morgan Stanley MSPSSCN Index

1-Day DISC - 0.35%

Monthly

MSCO

6/08/23

279,980

CAD

9,916

Morgan Stanley MSPSSPCH Index

1-Day FEDEF - 1.70%

Monthly

MSCO

6/23/23

172,725

(10,311

)

Morgan Stanley MSPSXLB Index

1-Day FEDEF - 0.35%

Monthly

MSCO

9/21/23

46,237

(2,370

)

Morgan Stanley MSPSXOP Index

1-Day FEDEF - 0.45%

Monthly

MSCO

11/27/23

439,435

4,793

Mr Price Group Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

8/30/23

1,908,349

ZAR

11,816

Musti Group PLC

Euro STR - 0.28%

Monthly

SEBA

7/12/23

45,817

EUR

7,173

Mycronic AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

835,337

SEK

(31,930

)

Nagarro SE

Euro STR - 1.95%

Monthly

JPHQ

8/21/23

113,730

EUR

(8,628

)

Naked Wines PLC

1-Day SONIA - 2.49%

Monthly

MSCS

7/17/23

40,417

GBP

14,892

National Grid PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

129,930

GBP

6,936

Naturgy Energy Group SA

1-Day EONIA - 0.35%

Monthly

MSCS

11/27/23

26,889

EUR

145

NCC Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/13/23

95,307

GBP

(13,495

)

Nel ASA

1-Week NIBOR - 7.00%

Monthly

SEBA

7/17/23

224,571

NOK

(2,757

)

Neoen

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

121,838

EUR

2,302

Neste Corp.

Euro STR - 0.28%

Monthly

SEBA

7/17/23

166,520

EUR

(23,972

)

Nestle SA

1-Day SARON - 0.35%

Monthly

JPHQ

11/27/23

31,674

CHF

112

Netcompany

1-Week CIBOR - 0.28%

Monthly

SEBA

9/14/23

402,234

DKK

(14,176

)

Nexi SpA

Euro STR - 0.30%

Monthly

JPHQ

10/13/23

153,693

EUR

10,637

Nibe Industrier AB

1-Week STIBOR - 0.28%

Monthly

SEBA

8/11/23

967,135

SEK

(2,814

)

Nokian Tyres PLC

Euro STR - 0.28%

Monthly

SEBA

8/23/23

85,906

EUR

(965

)

Nolato AB

1-Week STIBOR - 0.28%

Monthly

SEBA

9/26/23

1,057,546

SEK

(12,864

)

Nordex SE

Euro STR - 0.95%

Monthly

JPHQ

8/21/23

160,634

EUR

(27,827

)

Nordnet AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

1,214,141

SEK

(23,716

)

Novartis

1-Day SARON - 0.35%

Monthly

JPHQ

11/27/23

31,673

CHF

(296

)

NX Filtration NV

Euro STR - 2.65%

Monthly

JPHQ

8/07/23

28,983

EUR

(4,124

)

Obrascon Huarte Lain SA

1-Day EONIA - 0.35%

Monthly

MSCS

9/01/23

87,133

EUR

17,054

Ocado Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

135,851

GBP

(25,556

)

Oesterreichische Post AG

Euro STR - 3.80%

Monthly

JPHQ

8/23/23

123,949

EUR

(5,484

)

Orange

1-Day EONIA - 0.30%

Monthly

MSCS

11/27/23

32,232

EUR

345

Orion Corp.

Euro STR - 0.28%

Monthly

SEBA

7/17/23

41,935

EUR

(3,135

)

Orpea SA

1-Month EURIBOR - 0.40%

Monthly

MSCS

8/24/23

25,964

EUR

18,963

Oxford BioMedica PLC

1-Day SONIA - 0.30%

Monthly

MSCS

9/26/23

73,608

GBP

(7,314

)

Palfinger AG

Euro STR - 0.30%

Monthly

JPHQ

7/12/23

110,250

EUR

(2,783

)

Pan American Silver Corp.

1-Day FEDEF - 0.35%

Monthly

MSCO

11/29/23

129,303

(11,983

)

PayPoint PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

69,057

GBP

6,369

Pennon Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

265,440

GBP

11,890

Pepkor

1-Day SABOR - 0.50%

Monthly

MSCS

10/10/23

3,075,016

ZAR

(8,371

)

Pernod Ricard

1-Day EONIA - 0.30%

Monthly

MSCS

11/27/23

31,813

EUR

(124

)

Persimmon PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/18/23

181,218

GBP

23,717

Petrofac Ltd.

1-Day SONIA - 0.30%

Monthly

MSCS

9/01/23

211,306

GBP

64,303

Philadelphia SE Utility Index

1-Day FEDEF - 0.05%

Monthly

MSCO

8/22/23

3,763,735

(169,393

)

Phoenix Group Holdings PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

209,299

GBP

(2,192

)

franklintempleton.com Semiannual Report 107

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

Picton Property Income Ltd.

1-Day SONIA - 0.30%

Monthly

MSCS

8/24/23

119,784

GBP

$

(1,853

)

PNE AG

Euro STR - 0.70%

Monthly

JPHQ

7/13/23

260,883

EUR

(23,472

)

Polar Capital Holdings PLC

1-Day SONIA - 0.77%

Monthly

MSCS

7/17/23

116,315

GBP

(15,665

)

Polypeptide

1-Day SARON - 0.35%

Monthly

JPHQ

9/18/23

127,944

CHF

(29,522

)

PostNL

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

115,037

EUR

(1,119

)

PowerCell Sweden AB

1-Week STIBOR -1.00%

Monthly

SEBA

7/17/23

435,456

SEK

6,238

PRS REIT PLC (The)

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

17,895

GBP

1,435

Prudential PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/14/23

187,632

GBP

(3,746

)

PureTech Health PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

58,512

GBP

(35,539

)

PZ Cussons PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

65,333

GBP

(1,992

)

RAI Way SpA

Euro STR - 0.30%

Monthly

JPHQ

7/31/23

39,339

EUR

(2,479

)

Raiffeisen Bank International

Euro STR - 0.30%

Monthly

JPHQ

11/21/23

16,902

EUR

(331

)

Raisio PLC Vaihto-osake

Euro STR - 0.28%

Monthly

SEBA

7/17/23

25,122

EUR

(1,780

)

Range Resources Corp.

1-Day FEDEF - 0.35%

Monthly

MSCO

9/08/23

91,971

(17,173

)

Rathbones Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/31/23

167,061

GBP

(39,413

)

Re:NewCell AB

1-Week STIBOR - 1.75%

Monthly

SEBA

7/17/23

841,740

SEK

28,455

Reckitt Benckiser Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

73,024

GBP

4,183

Recordati SpA

Euro STR - 0.30%

Monthly

JPHQ

7/26/23

158,503

EUR

(8,026

)

Recticel

Euro STR - 0.30%

Monthly

JPHQ

11/21/23

70,553

EUR

(536

)

RELX PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

73,142

GBP

(301

)

RELX PLC

1-Day SONIA - 0.30%

Monthly

JPHQ

11/27/23

32,321

EUR

62

Rentokil Initial PLC

1-Day FEDEF - 0.65%

Monthly

MSCS

11/27/23

27,850

GBP

97

Restore PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/18/23

77,135

GBP

24,800

RHI Magnesita NV

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

181,926

GBP

(38,141

)

Rieter

Euro STR - 0.35%

Monthly

JPHQ

7/24/23

230,014

CHF

1,523

Ringkjoebing Landbobank A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/17/23

1,017,697

DKK

(26,967

)

Robertet

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

40,635

EUR

2,747

Rotork PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

86,821

GBP

(27,494

)

Royal Unibrew

1-Week CIBOR - 0.28%

Monthly

SEBA

11/27/23

752,743

DKK

721

RVRC Holding

1-Week STIBOR - 0.28%

Monthly

SEBA

10/11/23

810,917

SEK

(22,692

)

S4 Capital PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/24/23

156,914

GBP

(80,508

)

Sabaf SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

45,754

EUR

1,175

Sabre Insurance Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

54,332

GBP

1,968

Sacyr SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/23

266,879

EUR

(56,746

)

Saga PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

83,370

GBP

37,532

Sage Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/23

27,804

GBP

450

Salcef Group SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

157,023

EUR

(10,598

)

Salmon Evolution ASA

1-Week NIBOR - 8.50%

Monthly

SEBA

7/12/23

1,398,891

NOK

11,103

Salzgitter AG

Euro STR - 0.30%

Monthly

JPHQ

11/01/23

93,432

EUR

(8,437

)

Sampo PLC

Euro STR - 0.28%

Monthly

SEBA

7/17/23

32,298

EUR

(281

)

Samsung SDI Co. Ltd.

1-Day FEDEF - 0.50%

Monthly

MSCO

7/11/23

1,030,529

(8,134

)

Sandvik AB

1-Week STIBOR - 0.28%

Monthly

SEBA

11/27/23

352,537

SEK

472

Sanlam Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/17/23

1,377,083

ZAR

(3,431

)

Sanoma Corp.

Euro STR - 0.28%

Monthly

SEBA

7/17/23

95,537

EUR

20,501

Santam Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/17/23

885,215

ZAR

(3,624

)

Santander Bank Polska SA

1-Day FEDEF - 0.50%

Monthly

MSCS

7/17/23

91,315

(29,626

)

SAP SE

Euro STR - 0.30%

Monthly

JPHQ

11/27/23

32,238

EUR

178

SBM Offshore NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

153,124

EUR

(10,034

)

Schibsted ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/17/23

2,325,449

NOK

(42,604

)

Schoeller-Bleckmann Oilfield Equipment AG

Euro STR - 0.30%

Monthly

JPHQ

7/13/23

167,422

EUR

(7,556

)

Schouw & Co. A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/17/23

1,234,867

DKK

(11,269

)

Schweiter Technologies AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

141,303

CHF

(12,103

)

Sdiptech AB

1-Week STIBOR - 1.00%

Monthly

SEBA

7/17/23

1,399,354

SEK

(9,558

)

secunet Security Networks AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

155,282

EUR

(14,777

)

Seeing Machines Ltd.

1-Day SONIA - 5.75%

Monthly

MSCS

8/04/23

38,502

GBP

(8,201

)

108 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

Segro PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

53,777

GBP

$

13,433

Severn Trent PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/23

27,823

GBP

787

SFC Energy AG

Euro STR - 7.00%

Monthly

JPHQ

7/17/23

18,854

EUR

(4,713

)

SGS SA

1-Day SARON - 0.35%

Monthly

JPHQ

11/27/23

28,964

CHF

384

Shoprite Holdings Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/17/23

2,223,319

ZAR

(31,499

)

Siemens Healthineers AG

Euro STR - 0.30%

Monthly

JPHQ

8/21/23

120,939

EUR

(8,011

)

SIG Group AG

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

206,752

CHF

(2,444

)

Signify Health

1-Day FEDEF - 0.35%

Monthly

MSCO

10/25/23

262,929

5,361

Sika

1-Day SARON - 0.35%

Monthly

JPHQ

11/08/23

101,006

CHF

5,310

SKAN AG

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

156,074

CHF

(22,934

)

Smart Metering Systems PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/12/23

228,837

GBP

21,052

Smith & Nephew PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

101,841

GBP

4,544

Smiths Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

27,776

GBP

399

Sodexo

1-Day EONIA - 0.30%

Monthly

MSCS

11/27/23

32,452

EUR

(293

)

Software AG

Euro STR - 0.30%

Monthly

JPHQ

9/22/23

132,153

EUR

(11,792

)

SoftwareONE

Euro STR - 0.35%

Monthly

JPHQ

7/13/23

18,618

CHF

(4,511

)

Soitec SA

1-Day EONIA - 0.30%

Monthly

MSCS

8/11/23

55,457

EUR

(7,305

)

Solaria Energia y Medio Ambiente SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/23

108,328

EUR

17,586

SolGold PLC

1-Day SONIA - 0.56%

Monthly

MSCS

7/17/23

94,077

GBP

22,852

Soltec Power Holdings SA

1-Day EONIA - 0.73%

Monthly

MSCS

7/17/23

142,391

EUR

(7,549

)

SpareBank 1 SR Bank ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/20/23

660,250

NOK

(5,912

)

Sparebank Nord-Norge

1-Week NIBOR - 1.50%

Monthly

SEBA

9/20/23

595,025

NOK

(4,704

)

Sparebank Nord-Norge

1-Week NIBOR - 1.50%

Monthly

SEBA

10/23/23

967,567

NOK

(760

)

Spectris PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/17/23

122,030

GBP

(16,359

)

Spinnova OYJ

Euro STR - 10.50%

Monthly

SEBA

8/08/23

31,719

EUR

(2,163

)

Spirax-Sarco Engineering PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/23

27,802

GBP

426

SSE PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/23

27,843

GBP

81

St Galler Kantonalbank AG

1-Day SARON - 0.35%

Monthly

JPHQ

11/06/23

58,224

CHF

(2,007

)

Storytel AB

1-Week STIBOR - 7.50%

Monthly

SEBA

7/17/23

291,148

SEK

2,894

Straumann Group

1-Day SARON - 0.35%

Monthly

JPHQ

10/18/23

163,860

CHF

(10,131

)

Strix Group PLC

1-Day SONIA - 2.00%

Monthly

MSCS

7/17/23

96,577

GBP

66,044

Super Group Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/19/23

1,968,706

ZAR

2,321

Supermarket Income REIT

1-Day SONIA - 0.28%

Monthly

MSCS

9/15/23

191,998

GBP

10,761

Svenska Cellulosa AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

1,846,158

SEK

5,745

Swedencare AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/13/23

1,817,364

SEK

68,837

Swisscom AG

1-Day SARON - 0.35%

Monthly

GSCO

3/14/25

312,708

CHF

(14,325

)

Sword Group SE

1-Day EONIA - 4.00%

Monthly

MSCS

7/17/23

61,946

EUR

(954

)

Symrise AG

Euro STR - 0.30%

Monthly

JPHQ

9/27/23

105,732

EUR

(5,249

)

TAG Immobilien AG

Euro STR - 0.30%

Monthly

JPHQ

8/16/23

48,828

EUR

4,946

Talenom OYJ

Euro STR - 2.50%

Monthly

SEBA

7/17/23

55,715

EUR

4,507

Talgo SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/23

123,899

EUR

(1,674

)

Tamburi

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

223,044

EUR

(8,828

)

Tate & Lyle PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

66,035

GBP

4,163

Technogym SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

138,322

EUR

(7,125

)

Technoprobe

Euro STR - 0.30%

Monthly

JPHQ

10/16/23

85,015

EUR

(6,138

)

Tecnicas Reunidas SA

1-Day EONIA - 3.13%

Monthly

MSCS

7/12/23

50,785

EUR

(15,073

)

Tegna Inc.

1-Day FEDEF - 0.35%

Monthly

MSCO

9/21/23

521,593

47,327

Tele2 AB

1-Week STIBOR - 0.28%

Monthly

SEBA

11/27/23

351,868

SEK

577

Telenor ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

11/27/23

333,939

NOK

1,245

Tenaris SA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

265,980

EUR

(4,375

)

Terna SpA

Euro STR - 0.30%

Monthly

JPHQ

11/27/23

32,290

EUR

(103

)

Thermador Groupe SA

1-Day EONIA - 2.25%

Monthly

MSCS

8/16/23

33,742

EUR

(5,760

)

Thule Group AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

3,553,629

SEK

(5,012

)

Tikehau Capital SCA

1-Day EONIA - 4.00%

Monthly

MSCS

7/17/23

16,432

EUR

(2,949

)

Tinexta SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

303,021

EUR

(15,315

)

Topdanmark A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/26/23

1,417,713

DKK

(8,844

)

franklintempleton.com Semiannual Report 109

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

Tower Semiconductor Ltd.

1-Day FEDEF - 0.35%

Monthly

MSCO

7/07/23

421,136

$

11,465

Transaction Capital Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/17/23

2,494,444

ZAR

(10,372

)

Traton SE

Euro STR - 0.80%

Monthly

JPHQ

7/17/23

59,945

EUR

(3,917

)

Treatt PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

162,084

GBP

13,443

Tritax EuroBox PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

99,799

GBP

31,863

Troax Group AB

1-Week STIBOR - 0.28%

Monthly

SEBA

8/02/23

355,852

SEK

(7,529

)

Trustpilot Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

179,095

GBP

(79,625

)

Tryg A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/13/23

2,422,597

DKK

(13,060

)

Tubacex SA

1-Day EONIA - 1.63%

Monthly

MSCS

7/17/23

85,136

EUR

323

UCB

Euro STR - 0.30%

Monthly

JPHQ

11/21/23

83,512

EUR

(985

)

Unilever

1-Day SONIA - 0.30%

Monthly

MSCS

10/16/23

114,291

GBP

(8,221

)

Unilever

1-Day SONIA - 0.30%

Monthly

JPHQ

11/27/23

32,356

EUR

(97

)

UnipolSai

Euro STR - 0.30%

Monthly

JPHQ

11/27/23

32,257

EUR

(398

)

United Utilities

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/23

27,758

GBP

829

UPM Kymmene Corp.

Euro STR - 0.28%

Monthly

SEBA

7/17/23

231,980

EUR

(41,589

)

Urban Logistics REIT PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

201,032

GBP

23,350

Vallourec

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

136,289

EUR

(30,506

)

Valmet OYJ

Euro STR - 0.28%

Monthly

SEBA

11/22/23

68,034

EUR

1,407

Vantage Towers AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

137,420

EUR

(12,974

)

Veolia Environnement SA

1-Day EONIA - 0.30%

Monthly

MSCS

8/30/23

33,313

EUR

(4,432

)

Vestas Wind Systems A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/12/23

1,372,789

DKK

(16,239

)

Vestel

1-Day FEDEF - 7.63%

Monthly

MSCS

9/08/23

88,881

(66,185

)

VGP NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

110,325

EUR

(2,691

)

Viaplay Group AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

2,991,217

SEK

29,117

Vicat SA

1-Day EONIA - 0.30%

Monthly

MSCS

8/08/23

122,072

EUR

6,804

Victrex PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

85,237

GBP

895

Vidrala SA

1-Day EONIA - 0.35%

Monthly

MSCS

9/29/23

168,979

EUR

(55,956

)

Vinci

1-Day EONIA - 0.30%

Monthly

MSCS

11/27/23

32,261

EUR

(8

)

Vodacom Group Ltd.

1-Day SABOR - 0.75%

Monthly

MSCS

7/13/23

643,996

ZAR

1,686

Volex PLC

1-Day SONIA - 0.30%

Monthly

MSCS

9/01/23

86,320

GBP

718

Voltalia SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

124,675

EUR

12,851

Volvo Group (The)

1-Week STIBOR - 0.28%

Monthly

SEBA

11/27/23

352,826

SEK

477

Volvo Group (The)

1-Week STIBOR - 0.28%

Monthly

SEBA

11/27/23

353,056

SEK

41

Vonovia SE

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

127,262

EUR

(4,145

)

Vopak

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

81,822

EUR

(27,853

)

Waga Energy SA

1-Day EONIA - 0.75%

Monthly

MSCS

7/17/23

40,953

EUR

(521

)

Warehouse REIT PLC

1-Day SONIA - 1.38%

Monthly

MSCS

7/17/23

111,666

GBP

29,770

Westwing Group SE

Euro STR - 2.55%

Monthly

JPHQ

7/17/23

35,269

EUR

(6,091

)

Wiit SpA

Euro STR - 0.70%

Monthly

JPHQ

7/31/23

107,747

EUR

(6,615

)

Worldline SA

1-Day EONIA - 0.30%

Monthly

MSCS

8/09/23

55,831

EUR

(4,001

)

XP Power Ltd.

1-Day SONIA - 0.30%

Monthly

MSCS

8/31/23

115,552

GBP

(7,730

)

Xvivo Perfusion AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

505,387

SEK

6,225

Ypsomed Holding AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

158,530

CHF

(32,088

)

Zignago Vetro SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

167,193

EUR

(8,826

)

(3,474,071

)

Total - Total Return Swap Contracts

$

(1,558,142

)

*In U.S. dollars unless otherwise indicated.

^aThe Fund receives the total return on the underlying instrument and pays a variable financing rate.

^bFair valued using significant unobservable inputs. See Note 14 regarding fair value investments.

^cSee Note 9 regarding investments in Russian securities.

^dThe Fund receives the variable financing rate and pays the total return on the underlying instrument.

See Note 12 regarding other derivative information.

See Abbreviations on page 133.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Assets and Liabilities

November 30, 2022 (unaudited)

Franklin K2 Alternative Strategies Fund

Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	908,088,966
Cost – Non-controlled affiliates (Note 3f)		2,661,000
Cost – Unaffiliated repurchase agreements		646,885
Value – Unaffiliated issuers†	$	938,285,949
Value – Non-controlled affiliates (Note 3f)		2,661,000
Value – Unaffiliated repurchase agreements		646,885
Cash		43,234,577
Restricted cash for OTC derivatives (Note 1e)		2,010,000
Foreign currency, at value (cost $12,736,187)		12,956,779
Receivables:
Investment securities sold		16,091,610
Capital shares sold		10,725,969
Dividends and interest		5,324,438
Deposits with brokers for:
Exchange traded options written		100,735
Securities sold short		216,244,154
OTC derivative contracts		43,174,527
Futures contracts		13,751,224
Centrally cleared swap contracts		2,865,106
Due from brokers		6,275,298
Variation margin on centrally cleared swap contracts		126,640
OTC swap contracts (upfront payments $3,841,608)		3,303,373
Unrealized appreciation on OTC forward exchange contracts		9,717,341
Unrealized appreciation on OTC swap contracts		7,753,713
Other assets		9,237
Total assets		1,335,258,555
Liabilities:
Payables:
Investment securities purchased		27,206,508
Capital shares redeemed		18,859,178
Management fees		1,465,398
Distribution fees		35,115
Trustees’ fees and expenses		9,761
Transfer agent fees		318,141
Deposits from brokers for:
OTC derivative contracts		2,010,000
Due to brokers		16,018,694
Variation margin on futures contracts		350,451
OTC swap contracts (upfront receipts $518,010)		488,408
Options written, at value (premiums received $1,956,522)		2,343,346
Securities sold short, at value (proceeds $242,775,057)		223,678,274
Payable upon return of securities loaned (Note 1h)		3,307,885
Unrealized depreciation on OTC forward exchange contracts		12,374,543
Unrealized depreciation on OTC swap contracts		9,772,509
Unrealized depreciation on unfunded loan commitments (Note 11)		113,847
Accrued expenses and other liabilities		349,621
Total liabilities		318,701,679
Net assets, at value	$	1,016,556,876
Net assets consist of:
Paid-in capital	$	1,014,379,770
Total distributable earnings (loss)		2,177,106
Net assets, at value	$	1,016,556,876
†Includes securities loaned	$	6,642,917

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Assets and Liabilities (continued)

November 30, 2022 (unaudited)

Franklin K2 Alternative Strategies Fund

Class A:
Net assets, at value	$87,351,529
Shares outstanding	7,939,260
Net asset value per sharea	$11.00
Maximum offering price per share (net asset value per share ÷ 94.50%)	$11.64
Class C:
Net assets, at value	$20,518,012
Shares outstanding	1,934,774
Net asset value and maximum offering price per sharea	$10.60
Class R:
Net assets, at value	$376,404
Shares outstanding	34,361
Net asset value and maximum offering price per share	$10.95
Class R6:
Net assets, at value	$51,283,004
Shares outstanding	4,611,248
Net asset value and maximum offering price per share	$11.12
Advisor Class:
Net assets, at value	$857,027,927
Shares outstanding	77,239,367
Net asset value and maximum offering price per share	$11.10

^aRedemption price is equal to net asset value less contingent deferred sales charges, if applicable.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Operations

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

Franklin K2 Alternative Strategies Fund

Investment income:
Dividends: (net of foreign taxes)*
Unaffiliated issuers	$	4,304,346
Interest: (net of foreign taxes)~
Unaffiliated issuers		14,104,355
Income from securities loaned:
Unaffiliated entities (net of fees and rebates)		54,996
Non-controlled affiliates (Note 3f)		41,997
Total investment income		18,505,694
Expenses:
Management fees (Note 3a)		10,877,984
Distribution fees: (Note 3c)
Class A		113,512
Class C		112,101
Class R		1,290
Transfer agent fees: (Note 3e)
Class A		47,451
Class C		11,705
Class R		267
Class R6		16,487
Advisor Class		513,003
Custodian fees (Note 4) .		136,919
Reports to shareholders fees		39,621
Registration and filing fees		63,102
Professional fees		191,947
Trustees’ fees and expenses		175,316
Dividends and interest on securities sold short		2,352,538
Other		74,087
Total expenses		14,727,330
Expense reductions (Note 4)		(18,432	)
Expenses waived/paid by affiliates (Note 3f and 3g)		(940,912	)
Net expenses		13,767,986
Net investment income		4,737,708
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(42,599,299	)
Written options		1,165,772
Foreign currency transactions		(700,024	)
Forward exchange contracts		11,366,285
Futures contracts		84,662
Securities sold short		12,389,381
Swap contracts		2,312,576
Net realized gain (loss)		(15,980,647	)
Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		18,461,362
Written options		(497,949	)
Translation of other assets and liabilities denominated in foreign currencies		(490,976	)
Forward exchange contracts		(4,552,264	)
Futures contracts		(4,073,618	)
Securities sold short		(10,079,117	)
Swap contracts		(4,597,168	)
Net change in unrealized appreciation (depreciation)		(5,829,730	)
Net realized and unrealized gain (loss)		(21,810,377	)
Net increase (decrease) in net assets resulting from operations	$	(17,072,669	)
* Foreign taxes withheld on dividends	$	69,062
~ Foreign taxes withheld on interest	$	6,992

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Changes in Net Assets

Franklin K2 Alternative Strategies Fund

	Six Months Ended November 30, 2022 (unaudited)			Year Ended May 31, 2022
Increase (decrease) in net assets:
Operations:
Net investment income (loss)	$	4,737,708		$	(3,815,892	)
Net realized gain (loss)		(15,980,647	)		41,368,472
Net change in unrealized appreciation (depreciation)		(5,829,730	)		(123,367,201	)
Net increase (decrease) in net assets resulting from operations		(17,072,669	)		(85,814,621	)
Distributions to shareholders:
Class A		—			(4,718,508	)
Class C		—			(1,181,591	)
Class R		—			(56,639	)
Class R6		—			(2,581,950	)
Advisor Class		—			(58,285,888	)
Total distributions to shareholders		—			(66,824,576	)
Capital share transactions: (Note 2)
Class A		(5,884,176	)		3,686,486
Class C		(3,537,524	)		(3,895,079	)
Class R		(425,036	)		115,566
Class R6		4,080,604			26,424,523
Advisor Class		(227,719,101	)		79,327,812
Total capital share transactions		(233,485,233	)		105,659,308
Net increase (decrease) in net assets		(250,557,902	)		(46,979,889	)
Net assets:
Beginning of period		1,267,114,778			1,314,094,667
End of period	$	1,016,556,876		$	1,267,114,778

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Notes to Consolidated Financial Statements (unaudited)

Franklin K2 Alternative Strategies Fund

1. Organization and Significant Accounting Policies

Franklin Alternative Strategies Funds (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of two separate funds and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). Franklin K2 Alternative Strategies Fund (Fund) is included in this report. The Fund offers five classes of shares: Class A, Class C, Class R, Class R6 and Advisor Class. Class C shares automatically convert to Class A shares on a monthly basis, after they have been held for 8 years. Each class of shares may differ by its initial sales load, contingent deferred sales charges, voting rights on matters affecting a single class, its exchange privilege and fees due to differing arrangements for distribution and transfer agent fees.

Effective January 17, 2023, Franklin K2 Alternative Strategies Fund was renamed K2 Alternative Strategies Fund.

The following summarizes the Fund’s significant accounting policies.

a. Financial Instrument Valuation

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

Equity securities, exchange traded funds and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the

close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

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

Investments in open-end mutual funds are valued at the closing NAV. Investments in repurchase agreements are valued at cost, which approximates fair value.

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

The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Fund’s business day. Events can occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the value of the Funds’ portfolio securities to the latest indications of fair value at 4 p.m. Eastern time. At November 30, 2022, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”). See the Fair Value Measurements note for more information.

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

b. Foreign Currency Translation

Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Fund may enter into foreign currency

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

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

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

c. Joint Repurchase Agreement

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

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

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

d. Securities Purchased on a Delayed Delivery Basis

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

e. Derivative Financial Instruments

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

Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. The Fund attempts to reduce its exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives

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

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

The Fund entered into exchange traded futures contracts primarily to manage and/or gain exposure to commodity price, interest rate, equity price and foreign exchange rate risk. A

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

1. Organization and Significant Accounting Policies (continued)

e. Derivative Financial Instruments (continued)

futures contract is an agreement between the Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Consolidated Statement of Assets and Liabilities.

The Fund entered into OTC forward exchange contracts primarily to manage and/or gain exposure to certain foreign currencies. A forward exchange contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date.

The Fund entered into credit default swap contracts primarily to manage and/or gain exposure to credit risk. A credit default swap is an agreement between the Fund and a counterparty whereby the buyer of the contract receives credit protection and the seller of the contract guarantees the credit worthiness of a referenced debt obligation. These agreements may be privately negotiated in the over-the-counter market (OTC credit default swaps) or may be executed in a multilateral trade facility platform, such as a registered exchange (centrally cleared credit default swaps). The underlying referenced debt obligation may be a single issuer of corporate or sovereign debt, a credit index, a basket of issuers or indices, or a tranche of a credit index or basket of issuers or indices. In the event of a default of the underlying referenced debt obligation, the buyer is entitled to receive the notional amount of the credit default swap contract from the seller in exchange for the referenced debt obligation, a net settlement amount equal to the notional amount of the credit default swap less the recovery value of the referenced debt obligation, or other agreed upon amount. For centrally cleared credit default swaps, required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Consolidated Statement of Assets and Liabilities. Over the term of the contract, the buyer pays the seller a periodic stream of payments, provided that no event of default has occurred. Such periodic payments are accrued daily as an unrealized appreciation or depreciation until the payments are made, at which time they are realized. Upfront payments and receipts are reflected in the Consolidated Statement of Assets and Liabilities and represent compensating factors

between stated terms of the credit default swap agreement and prevailing market conditions (credit spreads and other relevant factors). These upfront payments and receipts are amortized over the term of the contract as a realized gain or loss in the Consolidated Statement of Operations.

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

The Fund entered into interest rate swap contracts primarily to manage and/or gain exposure to interest rate risk. An interest rate swap is an agreement between the Fund and a counterparty to exchange cash flows based on the difference between two interest rates, applied to a notional amount. These agreements may be privately negotiated in the over-the-counter market (OTC interest rate swaps) or may be executed on a registered exchange (centrally cleared interest rate swaps). For centrally cleared interest rate swaps, required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Consolidated Statement of Assets and Liabilities. Over the term of the contract, contractually required payments to be paid and to be received are accrued daily and recorded as unrealized appreciation or depreciation until the payments are made, at which time they are realized.

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

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

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

See Note 12 regarding other derivative information.

f. Restricted Cash

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

g. Securities Sold Short

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

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

h. Securities Lending

The Fund participates in an agency based securities lending program to earn additional income. The Fund receives collateral in the form of cash and/or U.S. Government and Agency Securities against the loaned securities in an amount equal to at least 102% of the fair value of the loaned securities. Collateral is maintained over the life of the loan in an amount not less than 100% of the fair value of loaned securities, as determined at the close of Fund business each day; any additional collateral required due to changes in security values is delivered to the Fund on the next business day. Any cash collateral received is deposited into a joint cash account with other funds and is used to invest in a money market fund managed by Franklin Advisers, Inc., an affiliate of the Fund, and/or a joint repurchase agreement. Additionally, the Fund received $3,394,253 in U.S. Government and Agency Securities as collateral. These securities received as collateral are held in segregated accounts with the Fund’s custodian. The Fund cannot repledge or resell these securities received as collateral. As such, the non-cash collateral is excluded from the Consolidated Statement of Assets and Liabilities. The Fund may receive income from the investment of cash collateral, in addition to lending fees and rebates paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third party vendor, is reported separately in the Consolidated Statement of Operations. The Fund bears the market risk with respect to any cash collateral investment, securities loaned, and the risk that the agent may default on its obligation to the Fund. If the borrower defaults on its obligations to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower.

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

1. Organization and Significant Accounting Policies (continued)

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

The Fund invests in certain financial instruments and commodity-linked derivative investments through its investment in the K2 Subsidiary. The K2 Subsidiary is a Cayman Islands exempted company with limited liability, is a wholly-owned subsidiary of the Fund, and is able to invest in certain financial instruments and commodity-linked derivative investments consistent with the investment objective of the Fund. At November 30, 2022, the K2 Subsidiary’s investments, as well as any other assets and liabilities of the K2 Subsidiary, are reflected in the Fund’s Consolidated Schedule of Investments and Consolidated Statement of Assets and Liabilities. All intercompany transactions and balances have been eliminated. For tax purposes, the Fund is required to increase its taxable income by its share of the K2 Subsidiary’s income. Net losses incurred by the K2 Subsidiary cannot offset income earned by the Fund and cannot be carried back or forward by the K2 Subsidiary to offset income from prior or future years. At November 30, 2022, the net assets of the K2 Subsidiary were $26,892,373 representing 2.6% of the Fund’s consolidated net assets. The Fund’s investment in the K2 Subsidiary is limited to 25% of consolidated assets.

j. Senior Floating Rate Interests

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

k. Income and Deferred Taxes

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

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

The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of November 30, 2022, the Fund has determined that no tax liability is required in its consolidated financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.

l. Security Transactions, Investment Income, Expenses and Distributions

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

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

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

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

m. Accounting Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and

assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

n. Guarantees and Indemnifications

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

2. Shares of Beneficial Interest

At November 30, 2022, there were an unlimited number of shares authorized (without par value). Transactions in the Fund’s shares were as follows:

	Six Months Ended November 30, 2022						Year Ended May 31, 2022
	Shares			Amount			Shares			Amount
Class A Shares:
Shares solda		527,493		$	5,806,233			1,769,519		$	21,332,819
Shares issued in reinvestment of distributions		—			—			360,033			4,313,199
Shares redeemed		(1,064,535	)		(11,690,409	)		(1,847,856	)		(21,959,532	)
Net increase (decrease)		(537,042	)	$	(5,884,176	)		281,696		$	3,686,486
Class C Shares:
Shares sold		45,451		$	482,683			480,168		$	5,612,560
Shares issued in reinvestment of distributions		—			—			86,857			1,009,276
Shares redeemeda		(378,778	)		(4,020,207	)		(904,193	)		(10,516,915	)
Net increase (decrease)		(333,327	)	$	(3,537,524	)		(337,168	)	$	(3,895,079	)
Class R Shares:
Shares sold		233		$	2,547			44,316		$	551,233
Shares issued in reinvestment of distributions		—			—			4,740			56,639
Shares redeemed		(38,751	)		(427,583	)		(43,693	)		(492,306	)
Net increase (decrease)		(38,518	)	$	(425,036	)		5,363		$	115,566
Class R6 Shares:
Shares sold		1,197,539		$	13,335,793			2,732,753		$	34,472,560
Shares issued in reinvestment of distributions		—			—			204,346			2,468,501
Shares redeemed		(834,027	)		(9,255,189	)		(872,943	)		(10,516,538	)
Net increase (decrease)		363,512		$	4,080,604			2,064,156		$	26,424,523

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

2. Shares of Beneficial Interest (continued)

	Six Months Ended November 30, 2022						Year Ended May 31, 2022
	Shares			Amount			Shares			Amount
Advisor Class Shares:
Shares sold		6,568,403		$	72,881,562			31,381,005		$	381,327,809
Shares issued in reinvestment of distributions		—			—			3,252,963			39,198,207
Shares redeemed		(27,149,728	)		(300,600,663	)		(28,619,216	)		(341,198,204	)
Net increase (decrease)		(20,581,325	)	$	(227,719,101	)		6,014,752		$	79,327,812

^aMay include a portion of Class C shares that were automatically converted to Class A.

3. Transactions with Affiliates

Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Trust are also officers and/or directors of the following subsidiaries:

Subsidiary	Affiliation
K2/D&S Management Co., L.L.C. (K2 Advisors)	Investment manager
Franklin Templeton Services, LLC (FT Services)	Administrative manager
Franklin Distributors, LLC (Distributors)	Principal underwriter
Franklin Templeton Investor Services, LLC (Investor Services)	Transfer agent

a. Management Fees

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

Annualized Fee Rate	Net Assets
1.90%	Up to and including $1 billion
1.85%	Over $1 billion, up to and including $1.5 billion
1.80%	Over $1.5 billion, up to and including $3 billion
1.75%	In excess of $3 billion

For the period ended November 30, 2022, the annualized gross effective management fee rate was 1.89% of the Fund’s average daily net assets.

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

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

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Franklin K2 Alternative Strategies Fund (continued)

Subadvisors

ActusRayPartners Limited

Apollo Credit Management LLC

Bardin Hill Arbitrage IC Management LP

Benefit Street Partners L.L.C. *

BlueBay Asset Management LLP

Chilton Investment Company, Inc.

Electron Capital Partners, LLC

Ellington Global Asset Management, LLC

Emso Asset Management Limited

Graham Capital Management, L.P.

Jennison Associates, LLC

Lazard Asset Management, LLC

Loomis Sayles & Company, L.P.

One River Asset Management, LLC

P. Schoenfeld Asset Management L.P.

Portland Hill Asset Management Limited

RV Capital Management Private Ltd

Wellington Management Company, LLP

*An affiliate of K2 Advisors.

b. Administrative Fees

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

c. Distribution Fees

The Board has adopted distribution plans for each share class, with the exception of Class R6 and Advisor Class shares, pursuant to Rule 12b-1 under the 1940 Act. Under the Fund’s Class A reimbursement distribution plan, the Fund reimburses Distributors for costs incurred in connection with the servicing, sale and distribution of the Fund’s shares up to the maximum annual plan rate. Under the Class A reimbursement distribution plan, costs exceeding the maximum for the current plan year cannot be reimbursed in subsequent periods. In addition, under the Fund’s Class C and R compensation distribution plans, the Fund pays Distributors for costs incurred in connection with the servicing, sale and distribution of the Fund’s shares up to the maximum annual plan rate for each class. The plan year, for purposes of monitoring compliance with the maximum annual plan rates, is February 1 through January 31.

The maximum annual plan rates, based on the average daily net assets, for each class, are as follows:

Class A	0.30%
Class C	1.00%
Class R	0.50%

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

3. Transactions with Affiliates (continued)

d. Sales Charges/Underwriting Agreements

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. These charges are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. Distributors has advised the Fund of the following commission transactions related to the sales and redemptions of the Fund’s shares for the period:

Sales charges retained net of commissions paid to unaffiliated brokers/dealers	$	1,861
CDSC retained	$	1,103

e. Transfer Agent Fees

Each class of shares pays transfer agent fees to Investor Services for its performance of shareholder servicing obligations. Effective October 1, 2022, the fees are based on an annualized asset based fee of 0.016% plus a reduced transaction based fee. Prior to October 1, 2022, the fees were based on an annualized asset based fee of 0.02% plus a transaction based fee. In addition, each class reimburses Investor Services for out of pocket expenses incurred and, except for Class R6, reimburses shareholder servicing fees paid to third parties. These fees are allocated daily based upon their relative proportion of such classes’ aggregate net assets. Class R6 pays Investor Services transfer agent fees specific to that class.

For the period ended November 30, 2022, the Fund paid transfer agent fees of $588,913, of which $148,635 was retained by Investor Services.

f. Investments in Affiliated Management Investment Companies

The Fund invests in one or more affiliated management investment companies. As defined in the 1940 Act, an investment is deemed to be a “Controlled Affiliate” of a fund when a fund owns, either directly or indirectly, 25% or more of the affiliated fund’s outstanding shares or has the power to exercise control over management or policies of such fund. The Fund does not invest for purposes of exercising a controlling influence over the management or policies. Management fees paid by the Fund are waived on assets invested in the affiliated management investment companies, as noted in the Consolidated Statement of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the period ended November 30, 2022, the Fund held investments in affiliated management investment companies as follows:

	Value at Beginning of Period		Purchases		Sales			Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Value at End of Period		Number of Shares Held at End of Period		Income from Securities Loaned
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio, 3.446%	$	4,937,000	$	44,372,000	$	(46,648,000	)	$	—	$	—	$	2,661,000		2,661,000	$	41,997

g. Waiver and Expense Reimbursements

K2 Advisors has contractually agreed in advance to waive or limit its fees and to assume as their own expense certain expenses otherwise payable by the Fund so that the operating expenses (excluding interest expense, distribution fees, acquired fund fees and expenses, expenses related to securities sold short and certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations and liquidations) for each class of the Fund do not exceed 1.95% based on the average net assets of each class until September 30, 2023. Total expenses waived or paid are not subject to recapture subsequent to the Fund’s fiscal year end.

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

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

4. Expense Offset Arrangement

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

5. Income Taxes

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

Cost of investments	$	701,170,635
Unrealized appreciation	$	106,863,427
Unrealized depreciation		(104,193,385	)
Net unrealized appreciation (depreciation)	$	2,670,042

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

6. Investment Transactions

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

At November 30, 2022, in connection with securities lending transactions, the Fund loaned equity investments and corporate bonds and notes and received $3,307,885 of cash collateral. The gross amounts of recognized liability for such transactions are included in payable upon return of securities loaned in the Consolidated Statement of Assets and Liabilities. The agreements can be terminated at any time.

7. Credit Risk and Defaulted Securities

At November 30, 2022, the Fund had 4.4% of its portfolio invested in high yield, senior secured floating rate loans, or other securities rated below investment grade as determined by Nationally Recognized Statistical Credit Ratings Organizations and/or internally, by investment management and unrated securities. These securities may be more sensitive to economic conditions causing greater price volatility and are potentially subject to a greater risk of loss due to default than higher rated securities.

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

At November 30, 2022, the aggregate long value of distressed company securities for which interest recognition has been discontinued was $6,388,133, representing 0.6% of the Fund’s net assets. For information as to specific securities, see the accompanying Consolidated Schedule of Investments.

8. Concentration of Risk

Investments in issuers domiciled or with significant operations in developing or emerging market countries may be subject to higher risks than investments in developed countries. These risks include fluctuating currency values, underdeveloped legal or business systems, and changing local and regional economic, political and social conditions, which may result in greater market

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

8. Concentration of Risk (continued)

volatility. In addition, certain foreign securities may not be as liquid as U.S. securities. Currencies of developing or emerging market countries may be subject to significantly greater risks than currencies of developed countries, including the potential inability to repatriate those currencies into U.S. dollars.

9. Investments in Russian Securities

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

10. Novel Coronavirus Pandemic

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

11. Unfunded Loan Commitments

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

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

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

Borrower	Unfunded Commitment
Athenahealth Group Inc., Term Loan B	$	63,231
Athenahealth Group Inc., Term Loan B		10,744
Bausch Health Cos. Inc., Term Loan B		595,408
Citrix Systems Inc., Term Loan B		37,872
CSC Holdings LLC, Term Loan B		204,091
EPIC Crude Holdings LP, Term Loan B		65,000
Euro Garage Ltd., Term Loan B		101,945
K. Hovnanian Enterprises Inc., Term Loan RC		214,834
Oldcastle BuildingEnvelope Inc., Term Loan RC		274,845
OpenText Corp., Initial Term Loan		204,360
Upfield Group BV, Term Loan RC		498,584
Varsity Brands, Initial Term Loan		19,764
	$	2,290,678

12. Other Derivative Information

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

	Asset Derivatives				Liability Derivatives
Derivative Contracts Not Accounted for as Hedging Instruments	Consolidated Statement of Assets and Liabilities Location	Fair Value			Consolidated Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Investments in securities, at value	$	461,024	a	Options written, at value	$	1,101,500
	Variation margin on futures contracts		500,131	b	Variation margin on futures contracts		567,825	b
	Variation margin on centrally cleared swap contracts		2,619,961	b	Variation margin on centrally cleared swap contracts		2,610,448	b
Foreign exchange contracts	Investments in securities, at value		101,290	a	Options written, at value		18,318
	Unrealized appreciation on OTC forward exchange contracts		9,717,341		Unrealized depreciation on OTC forward exchange contracts		12,374,543
	Unrealized appreciation on OTC swap contracts		5,265		Variation margin on futures contracts		39,860	b
Credit contracts					Variation margin on centrally cleared swap contracts		216,994	b
	OTC swap contracts (upfront payments)		3,303,373		OTC swap contracts (upfront receipts)		488,408
	Unrealized appreciation on OTC swap contracts		489,058		Unrealized depreciation on OTC swap contracts		954,977
Equity contracts	Investments in securities, at value		2,884,742	a	Options written, at value		1,223,528
	Variation margin on futures contracts		1,520,125	b	Variation margin on futures contracts		4,941,973	b

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

12. Other Derivative Information (continued)

	Asset Derivatives				Liability Derivatives
Derivative Contracts Not Accounted for as Hedging Instruments	Consolidated Statement of Assets and Liabilities Location	Fair Value			Consolidated Statement of Assets and Liabilities Location	Fair Value
	Unrealized appreciation on OTC swap contracts	$	7,238,889		Unrealized depreciation on OTC swap contracts	$	8,797,031
Commodity contracts	Variation margin on futures contracts		550,607	b	Variation margin on futures contracts		854,369	b
Totals		$	29,391,806			$	34,189,774

^aPurchased option contracts are included in investments in securities, at value in the Consolidated Statement of Assets and Liabilities.

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

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

Derivative Contracts Not Accounted for as Hedging Instruments	Consolidated Statement of Operations Location	Net Realized Gain (Loss) for the Period			Consolidated Statement of Operations Location	Net Change in Unrealized Appreciation (Depreciation) for the Period
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:
Interest rate contracts	Investments	$	(35,582	)a	Investments	$	(544,029	)a
	Written options		(104,172	)	Written options		(223,113	)
	Futures contracts		4,704,964		Futures contracts		(557,061	)
	Swap contracts		(721,069	)	Swap contracts		(175,798	)
Foreign exchange contracts	Investments		114,012	a	Investments		(154,905	)a
	Written options		(40,183	)	Written options		36,103
	Forward exchange contracts		11,366,285		Forward exchange contracts		(4,552,264	)
	Futures contracts		122,040		Futures contracts		(67,665	)
	Swap contracts		4,652		Swap contracts		(191,550	)
Credit contracts	Swap contracts		793,806		Swap contracts		(998,213	)
Equity contracts	Investments		(2,196,946	)a	Investments		448,666	a
	Written options		1,310,127		Written options		(310,939	)
	Futures contracts		(1,750,287	)	Futures contracts		(2,381,688	)
	Swap contracts		2,235,187		Swap contracts		(3,231,607	)
Commodity contracts	Futures contracts		(2,992,055	)	Futures contracts		(1,067,204	)
Totals		$	12,810,779			$	(13,971,267	)

^aPurchased option contracts are included in net realized gain (loss) from investments and net change in unrealized appreciation (depreciation) on investments in the Consolidated Statement of Operations.

For the period ended November 30, 2022, the average month end notional amount of futures contracts and swap contracts represented $520,293,139 and $1,367,357,559, respectively. The average month end fair value of options was $6,397,291. The average month end contract value of forward exchange contracts was $448,858,739.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

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

	Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
	Assetsa		Liabilitiesa
Derivatives
Forward Exchange Contracts	$	9,717,341	$	12,374,543
Options Purchased		231,569		—
Options Written		—		19,373
Swap Contracts		11,057,086		10,260,917
Total	$	21,005,996	$	22,654,833

^aAbsent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

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

			Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
	Gross Amounts of Assets Presented in the Consolidated Statement of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Receiveda		Cash Collateral Receiveda			Net Amount (Not less than zero)
Counterparty
BNPP	$	315,994	$	(315,994	)	$	—	$	—		$	—
BNYM		752,518		(752,518	)		—		—			—
BOFA		156,009		(156,009	)		—		—			—
BZWS		2,095,648		(2,001,816	)		—		(93,832	)		—
CITI		1,334,787		(638,827	)		—		—			695,960
DBAB		311,947		(311,947	)		—		—			—
FBCO		—		—			—		—			—
GSCO		3,197,599		(2,042,974	)		—		(1,154,625	)		—
HSBC		489,640		(427,780	)		—		—			61,860
JPHQ		1,985,448		(1,600,647	)		—		—			384,801
JPHQb		1,086,783		—			—		—			1,086,783
MSCO		1,068,029		(1,068,029	)		—		—			—
MSCOb		132,112		—			—		—			132,112
MSCOc		2,545,617		(2,545,617	)		—		—			—
MSCS		3,625,966		(3,625,966	)		—		—			—
SCBL		248,228		(73,546	)		—		—			174,682
SEBA		1,063,380		(1,063,380	)		—		—			—
SSBT		324,991		(295,358	)		—		—			29,633
UBSW		271,300		(228,945	)		—		—			42,355
Total	$	21,005,996	$	(17,149,353	)	$	—	$	(1,248,457	)	$	2,608,186

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

12. Other Derivative Information (continued)

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

			Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
	Gross Amounts of Liabilities Presented in the Consolidated Statement of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Pledged		Cash Collateral Pledgeda			Net Amount (Not less than zero)
Counterparty
BNPP	$	447,101	$	(315,994	)	$	—	$	—		$	131,107
BNYM		891,735		(752,518	)		—		(139,217	)		—
BOFA		373,512		(156,009	)		—		(20,000	)		197,503
BZWS		2,001,816		(2,001,816	)		—		—			—
CITI		638,827		(638,827	)		—		—			—
DBAB		525,889		(311,947	)		—		—			213,942
FBCO		3,857		—			—		—			3,857
GSCO		2,042,974		(2,042,974	)		—		—			—
HSBC		427,780		(427,780	)		—		—			—
JPHQ		1,600,647		(1,600,647	)		—		—			—
JPHQb		2,219,424		—			—		—			2,219,424
MSCO		1,557,267		(1,068,029	)		—		—			489,238
MSCOb		821,961		—			—		—			821,961
MSCOc		2,546,432		(2,545,617	)		—		(815	)		—
MSCS		4,094,459		(3,625,966	)		—		(468,493	)		—
SCBL		73,546		(73,546	)		—		—			—
SEBA		1,863,303		(1,063,380	)		—		(799,923	)		—
SSBT		295,358		(295,358	)		—		—			—
UBSW		228,945		(228,945	)		—		—			—
Total	$	22,654,833	$	(17,149,353	)	$	—	$	(1,428,448	)	$	4,077,032

^aIn 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.

^bRepresents derivatives not subject to an ISDA master agreement.

^cRepresents derivatives owned by the K2 Holdings Investment Corp., a wholly-owned subsidiary of the Fund. See Note 1(i).

See Note 1(e) regarding derivative financial instruments.

See Abbreviations on page 133.

13. Credit Facility

The Fund, together with other U.S. registered and foreign investment funds (collectively, Borrowers), managed by Franklin Templeton, are borrowers in a joint syndicated senior unsecured credit facility totaling $2.675 billion (Global Credit Facility) which matures on February 3, 2023. This Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests.

Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on any borrowings made by the Fund and other costs incurred by the Fund, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all of the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in other expenses in the Consolidated Statement of Operations. During the period ended November 30, 2022, the Fund did not use the Global Credit Facility.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

14. Fair Value Measurements

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

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

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

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

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

A summary of inputs used as of November 30, 2022, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:

	Level 1		Level 2			Level 3			Total
Assets:
Investments in Securities:a
Equity Investmentsb	$	343,591,852	$	45,986,969		$	26,453		$	389,605,274
Convertible Bonds		—		118,787,553			—			118,787,553
Corporate Bonds and Notes		—		141,995,015			144,583			142,139,598
Corporate Bonds and Notes in Reorganization		—		6,388,133			—			6,388,133
Senior Floating Rate Interests		—		1,917,365			—			1,917,365
Foreign Government and Agency Securities		—		56,110,905			—			56,110,905
U.S. Government and Agency Securities		—		13,979,037			—			13,979,037
Asset-Backed Securities and Commercial Mortgage-Backed Securities		—		49,399,960			356,394			49,756,354
Options Purchased		3,245,095		201,961			—			3,447,056
Short Term Investments		157,450,674		2,011,885			—			159,462,559
Total Investments in Securities	$	504,287,621	$	436,778,783c		$	527,430		$	941,593,834
Other Financial Instruments:
Futures Contracts	$	2,570,863	$	—		$	—		$	2,570,863
Forward Exchange Contracts		—		9,717,341			—			9,717,341
Swap Contracts		—		10,373,674			—	d		10,373,674
Total Other Financial Instruments	$	2,570,863	$	20,091,015		$	—		$	22,661,878
Liabilities:
Other Financial Instruments:
Options Written	$	2,325,028	$	18,318		$	—		$	2,343,346
Securities Sold Shorta		205,697,213		17,981,061	e		—			223,678,274
Futures Contracts		6,404,027		–			—			6,404,027
Forward Exchange Contracts		—		12,374,543			—			12,374,543
Swap Contracts		—		12,599,951			—			12,599,951
Unfunded Loan Commitments		—		113,847			—	d		113,847
Total Other Financial Instruments	$	214,426,268	$	43,087,720		$	—		$	257,513,988

^aFor detailed categories, see the accompanying Consolidated Schedule of Investments.

^bIncludes common stocks, exchange traded funds, and preferred stocks as well as other equity interests.

^cIncludes foreign securities valued at $44,978,188, which were categorized as Level 2 as a result of the application of market level fair value procedures. See the Financial Instrument Valuation note for more information.

^dncludes financial instruments determined to have no value at November 30, 2022.

^eIncludes foreign securities valued at $1,675,777, which were categorized as Level 2 as a result of the application of market level fair value procedures. See the Financial Instrument Valuation note for more information.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

14. Fair Value Measurements (continued)

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

15. New Accounting Pronouncements

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

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

16. Subsequent Events

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Abbreviations

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

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Shareholder Information

Board Approval of Sub-Advisory Agreement

FRANKLIN K2 ALTERNATIVE STRATEGIES FUND (THE “FUND”)

The Board of Trustees (Board) of Franklin Alternative Strategies Funds (the Trust), including a majority of trustees that are not “interested persons” as such term is defined in section 2(a)(19) of the Investment Company Act of 1940 (hereinafter referred to as “independent trustees”), at a meeting held on October 25, 2022, unanimously approved the sub-advisory agreement (the “New Sub-Advisory Agreement”) with DLD Asset Management, LP (“Sub-Advisor”).

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

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

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

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

The following discussion relates to certain primary factors relevant to the Board’s decision to approve the New Sub-Advisory Agreement. This discussion of the information and factors considered by the Board (including the information and factors discussed above) is not intended to be exhaustive, but rather summarizes certain factors considered by the Board. In view of the wide variety of factors considered, the Board did not, unless otherwise noted, find it practicable to quantify or otherwise assign relative weights to the following factors. In addition, individual trustees may have assigned different weights to various factors.

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

With respect to the sub-advisory services to be provided by the Sub-Advisor, the Board noted the responsibilities that the Sub-Advisor would have with respect to the Fund’s assets to be allocated to it by K2-Advisors (the “Sub-Advised Portion”), including, among others, implementing the investment strategies with respect to the Sub-Advised Portion and ensuring compliance with the investment strategies, policies, and limitations of the Sub-Advised Portion. The trustees considered the successful performance of the Sub-Advisor in managing other investment products with investment strategies similar to the investment strategies of its Sub-Advised Portion.

The trustees reviewed the portfolio management team at the Sub-Advisor that would be responsible for managing the Sub-Advised Portion, including the team’s performance, staffing, skills and compensation program. The trustees considered various other products, portfolios and entities that are advised by the Sub-Advisor, their relative fees and reasons for differences with respect thereto and any potential conflicts. The Board also considered a report from the Trust’s Chief Compliance Officer regarding the Sub-Advisor’s compliance program as such policies relate to the operations of the Fund. The Board considered the selection and due diligence process employed by K2 Advisors in proposing the Sub-Advisor as a sub-advisor to the Fund, including the due diligence undertaken with respect to the Sub-Advisor’s compliance capabilities, and efforts to integrate the Sub-Advisor’s operations, policies, procedures and compliance functions with those of K2 Advisors.

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

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

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

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

The Board noted that the sub-advisory fees would be paid by K2 Advisors to the Sub-Advisor and would not be additional fees to be borne by the Fund. The Board also noted that the sub-advisory fees to be paid by K2 Advisors to the Sub-Advisor were the product of negotiations between K2 Advisors and the Sub-Advisor and the Board considered the allocation of the investment management fee charged to the Fund between K2 Advisors and the Sub-Advisor in light of the nature, extent and quality of the investment management services expected to be provided by K2 Advisors and the Sub-Advisor. The trustees considered various other products, portfolios and entities that are advised by the Sub-Advisor and the allocation of assets and expenses among and within them, as well as their relative fees and reasons for differences with respect thereto and any potential conflicts. The Board considered the extent to which the Sub-Advisor may derive ancillary benefits from the Fund’s operations.

With respect to the impact on K2 Advisors’ and its affiliates’ profitability as a result of hiring the Sub-Advisor as a sub-advisor to the Fund, the Board considered the following: (1) the fee waiver and expense limitation arrangements in effect, the amount of Fund expenses that were absorbed since the inception of the Fund by K2 Advisors through such arrangements, (2) the level of sub-advisory fees to be paid to the Sub-Advisor, and (3) K2 Advisors’ belief that hiring of the Sub-Advisor will not have any material impact on K2 Advisors’ profitability.

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

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

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quality and efficiency of services rendered and in increased capital commitments benefiting the Fund directly or indirectly. The Board concluded that economies of scale were deemed not to be a significant factor at that time in light of, among other matters, the fee waiver and expense limitation arrangement in effect.

CONCLUSION. After consideration of the foregoing factors, and such other matters as were deemed relevant, and with no single factor being determinative to their decision, the trustees—including a majority of the independent trustees—with the assistance of independent counsel approved the New Sub-Advisory Agreement, including the fees payable thereunder, with the Sub-Advisor for the Fund.

Board Approval of Sub-Advisory Agreement

FRANKLIN K2 ALTERNATIVE STRATEGIES FUND (THE “FUND”)

The Board of Trustees (Board) of Franklin Alternative Strategies Funds (the Trust), including a majority of trustees that are not “interested persons” as such term is defined in section 2(a)(19) of the Investment Company Act of 1940 (hereinafter referred to as “independent trustees”), at meetings held on July 12, 2022 and October 25, 2022, unanimously approved the sub-advisory agreement (the “New Sub-Advisory Agreement”) with Capital Fund Management S.A. (“Sub-Advisor”).

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

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

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

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

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The following discussion relates to certain primary factors relevant to the Board’s decision to approve the New Sub-Advisory Agreement. This discussion of the information and factors considered by the Board (including the information and factors discussed above) is not intended to be exhaustive, but rather summarizes certain factors considered by the Board. In view of the wide variety of factors considered, the Board did not, unless otherwise noted, find it practicable to quantify or otherwise assign relative weights to the following factors. In addition, individual trustees may have assigned different weights to various factors.

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

With respect to the sub-advisory services to be provided by the Sub-Advisor, the Board noted the responsibilities that the Sub-Advisor would have with respect to the Fund’s assets to be allocated to it by K2-Advisors (the “Sub-Advised Portion”), including, among others, implementing the investment strategies with respect to the Sub-Advised Portion and ensuring compliance with the investment strategies, policies, and limitations of the Sub-Advised Portion. The trustees considered the successful performance of the Sub-Advisor in managing other investment products with investment strategies similar to the investment strategies of its Sub-Advised Portion.

The trustees reviewed the portfolio management team at the Sub-Advisor that would be responsible for managing the Sub-Advised Portion, including the team’s performance, staffing, skills and compensation program. The trustees considered various other products, portfolios and entities that are advised by the Sub-Advisor, their relative fees and reasons for differences with respect thereto and any potential conflicts. The Board also considered a report from the Trust’s Chief Compliance Officer regarding the Sub-Advisor’s compliance program as such policies relate to the operations of the Fund. The Board considered the selection and due diligence process employed by K2 Advisors in proposing the Sub-Advisor as a sub-advisor to the Fund, including the due

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

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

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

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

The Board noted that the sub-advisory fees would be paid by K2 Advisors to the Sub-Advisor and would not be additional fees to be borne by the Fund. The Board also noted that the sub-advisory fees to be paid by K2 Advisors to the Sub-Advisor were the product of negotiations between K2 Advisors and the Sub-Advisor and the Board considered the allocation of the investment management fee charged to the Fund between K2 Advisors and the Sub-Advisor in light of the nature, extent and quality of the investment management services expected to be provided by K2 Advisors and the Sub-Advisor. The trustees considered various other products, portfolios and entities that are advised by the Sub-Advisor and the allocation of assets and expenses among and within them, as well as their relative fees and reasons for differences with respect thereto and any potential conflicts. The Board considered the extent to which the Sub-Advisor may derive ancillary benefits from the Fund’s operations.

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

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

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

ECONOMIES OF SCALE. The Board considered economies of scale that may be realized by the Sub-Advisor as the Fund grows larger and the extent to which such economies of scale may be shared with Fund shareholders, as for example, in the level of the sub-advisory fees charged, in the quality and efficiency of services rendered and in increased capital commitments benefiting the Fund directly or indirectly. The Board concluded that economies of scale were deemed not to be a significant factor at that time in light of, among other matters, the fee waiver and expense limitation arrangement in effect.

CONCLUSION. After consideration of the foregoing factors, and such other matters as were deemed relevant, and with no single factor being determinative to their decision, the trustees—including a majority of the independent trustees—with the assistance of independent counsel approved the New Sub-Advisory Agreement, including the fees payable thereunder, with the Sub-Advisor for the Fund.

Proxy Voting Policies and Procedures

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

Quarterly Schedule of Investments

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

Householding of Reports and Prospectuses

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

138 Semiannual Report franklintempleton.com

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

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

	Semiannual Report and Shareholder Letter Franklin K2 Alternative Strategies Fund
	Investment Manager	Distributor	Shareholder Services
	K2/D&S Management Co., L.L.C.	Franklin Distributors, LLC (800) DIAL BEN®/342-5236 franklintempleton.com	(800) 632-2301
© 2023 Franklin Templeton Investments. All rights reserved.			068 S 01/23

SEMIANNUAL REPORT AND SHAREHOLDER LETTER

FRANKLIN K2 LONG SHORT CREDIT FUND

A Series of Franklin Alternative Strategies Funds

November 30, 2022

Sign up for electronic delivery at franklintempleton.com/edelivery

SHAREHOLDER LETTER

Dear Fellow Shareholder:

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

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

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

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

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

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

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

Sincerely,

Brooks Ritchey

President and Chief Executive Officer –

Investment Management

Franklin Alternative Strategies Funds

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

1. Source: Morningstar.

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

Not FDIC Insured | May Lose Value | No Bank Guarantee

franklintempleton.com Semiannual Report 1

Contents
Semiannual Report
Franklin K2 Long Short Credit Fund	3
Performance Summary	6
Your Fund’s Expenses	8
Financial Highlights and Schedule of Investments	9
Financial Statements	35
Notes to Financial Statements	39
Shareholder Information	54

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

2 Semiannual Report franklintempleton.com

SEMIANNUAL REPORT

Franklin K2 Long Short Credit Fund

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

Your Fund’s Goal and Main Investments

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

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

Performance Overview

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

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

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

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

Economic and Market Overview

Global developed and emerging market equities, as measured by the MSCI All Country World Index-NR (USD, net of tax withholding when dividends are paid), posted a -2.51% total return for the six months ended November 30, 2022.² Volatile prices for energy and food commodities contributed to higher inflation in many countries even as global trade cooled in the third quarter of 2022. This inflationary pressure led many of the world’s central banks to adopt tighter stances regarding monetary policy. Continued COVID-19 lockdowns imposed by China’s government prompted protests and pressured Asian and global emerging market stocks. Geopolitical instability disrupted financial markets amid the ongoing war in Ukraine

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

2. Source: Morningstar.

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

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

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

franklintempleton.com Semiannual Report 3

FRANKLIN K2 LONG SHORT CREDIT FUND

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

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

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

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

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

Subadvisors

11/30/22

Credit Long Short

Apollo Credit Management LLC

Benefit Street Partners L.L.C.

Structured Credit

Ellington Global Asset Management, LLC

Medalist Partners, LP

Emerging Market Fixed Income

Emso Asset Management Limited

Manager’s Discussion

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

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

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

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

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

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FRANKLIN K2 LONG SHORT CREDIT FUND

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

Robert Christian

Co-Lead Portfolio Manager

Brooks Ritchey

Co-Lead Portfolio Manager

Art Vinokur

Portfolio Manager

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

franklintempleton.com Semiannual Report 5

FRANKLIN K2 LONG SHORT CREDIT FUND

Performance Summary as of November 30, 2022

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

Performance as of 11/30/22¹

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

Share Class	Cumulative Total Return2		Average Annual Total Return3
A4
6-Month		-5.36%		-10.59%
1-Year		-9.38%		-14.33%
5-Year		+4.17%		-0.32%
Since Inception (9/8/15)		+18.50%		+1.58%
Advisor
6-Month		-5.09%		-5.09%
1-Year		-9.05%		-9.05%
5-Year		+5.41%		+1.06%
Since Inception (9/8/15)		+20.03%		+2.56%

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

See page 7 for Performance Summary footnotes.

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FRANKLIN K2 LONG SHORT CREDIT FUND

PERFORMANCE SUMMARY

Distributions (6/1/22–11/30/22)

Share Class	Net Investment Income
A	$0.2011
C	$0.0810
R	$0.1748
R6	$0.2286
Advisor	$0.2284

Total Annual Operating Expenses⁵

Share Class	With Fee Waiver		Without Fee Waiver
A		2.09%		2.60%
Advisor		1.84%		2.35%

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

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

Russia’s military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict could increase volatility and uncertainty in the financial markets and adversely affect regional and global economies. The United States and other countries have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia’s military invasion. These sanctions, as well as any other economic consequences related to the invasion, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on governments, companies or individuals, may further decrease the value and liquidity of certain Russian securities and securities of issuers in other countries that are subject to economic sanctions related to the invasion.

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

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

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

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

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

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

franklintempleton.com Semiannual Report 7

FRANKLIN K2 LONG SHORT CREDIT FUND

Your Fund’s Expenses

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

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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

			Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)
Share Class	Beginning Account Value 6/01/22		Ending Account Value 11/30/22		Expenses Paid During Period 6/01/22–11/30/221,2		Ending Account Value 11/30/22		Expenses Paid During Period 6/01/22–11/30/221,2		Net Annualized Expense Ratio2
A	$	1,000	$	946.40	$	10.30	$	1,014.49	$	10.66		2.11	%
C	$	1,000	$	943.40	$	13.93	$	1,010.73	$	14.42		2.86	%
R	$	1,000	$	945.20	$	11.46	$	1,013.29	$	11.86		2.35	%
R6	$	1,000	$	948.20	$	8.89	$	1,015.94	$	9.20		1.82	%
Advisor	$	1,000	$	949.10	$	9.09	$	1,015.74	$	9.40		1.86	%

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

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

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Financial Highlights

Franklin K2 Long Short Credit Fund

	Six Months Ended November 30, 2022 (unaudited)			Year Ended May 31,
				2022			2021			2020			2019			2018
Class A
Per share operating performance (for a share outstanding throughout the period)
Net asset value, beginning of period	$	10.10		$	10.90		$	9.86		$	10.45		$	10.50		$	10.49
Income from investment operationsa:
Net investment incomeb		0.19			0.25			0.28			0.23			0.37			0.29
Net realized and unrealized gains (losses)		(0.72	)		(0.68	)		1.03			(0.53	)		(0.02	)		0.08
Total from investment operations		(0.53	)		(0.43	)		1.31			(0.30	)		0.35			0.37
Less distributions from:
Net investment income		(0.20	)		(0.23	)		(0.26	)		(0.25	)		(0.31	)		(0.19	)
Net realized gains		—			(0.14	)		(0.01	)		(0.04	)		(0.09	)		(0.17	)
Total distributions		(0.20	)		(0.37	)		(0.27	)		(0.29	)		(0.40	)		(0.36	)
Net asset value, end of period	$	9.37		$	10.10		$	10.90		$	9.86		$	10.45		$	10.50
Total returnc		(5.36)%			(4.16)%			13.33%			(2.92)%			3.42%			3.63%
Ratios to average net assetsd
Expenses before waiver, payments by affiliates and expense reductione		2.83%			2.65%			2.85%			3.24%			3.15%			3.51%
Expenses net of waiver, payments by affiliates and expense reductione		2.11%	f		2.14%	f		2.27%	f		2.74%			2.69%			2.98%	f
Expenses incurred in connection with securities sold short		0.31%			0.28%			0.41%			0.58%			0.62%			0.89%
Net investment income		4.01%			2.38%			2.61%			2.24%			3.49%			2.71%
Supplemental data
Net assets, end of period (000’s)		$16,297			$17,506			$26,581			$20,212			$27,870			$45,088
Portfolio turnover rate		67.09%			169.38%			194.81%			205.14%			158.66%			251.81%

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

^b Based on average daily shares outstanding.

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

^d Ratios are annualized for periods less than one year, except for non-recurring expenses, if any.

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

^f Benefit of expense reduction rounds to less than 0.01%.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FINANCIAL HIGHLIGHTS

Franklin K2 Long Short Credit Fund (continued)

	Six Months Ended November 30, 2022 (unaudited)			Year Ended May 31,
				2022			2021			2020			2019			2018
Class C
Per share operating performance (for a share outstanding throughout the period)
Net asset value, beginning of period	$	9.91		$	10.70		$	9.69		$	10.26		$	10.34		$	10.35
Income from investment operationsa:
Net investment incomeb		0.16			0.17			0.19			0.15			0.27			0.19
Net realized and unrealized gains (losses)		(0.72	)		(0.68	)		1.01			(0.52	)		(0.01	)		0.07
Total from investment operations		(0.56	)		(0.51	)		1.20			(0.37	)		0.26			0.26
Less distributions from:
Net investment income		(0.08	)		(0.14	)		(0.18	)		(0.16	)		(0.25	)		(0.10	)
Net realized gains		—			(0.14	)		(0.01	)		(0.04	)		(0.09	)		(0.17	)
Total distributions		(0.08	)		(0.28	)		(0.19	)		(0.20	)		(0.34	)		(0.27	)
Net asset value, end of period	$	9.27		$	9.91		$	10.70		$	9.69		$	10.26		$	10.34
Total returnc		(5.66)%			(4.91)%			12.40%			(3.66)%			2.61%			2.70%
Ratios to average net assetsd
Expenses before waiver, payments by affiliates and expense reductione		3.57%			3.42%			3.64%			3.96%			4.03%			4.37%
Expenses net of waiver, payments by affiliates and expense reductione		2.86%	f		2.91%	f		3.05%	f		3.46%			3.57%			3.84%	f
Expenses incurred in connection with securities sold short		0.31%			0.28%			0.41%			0.58%			0.62%			0.89%
Net investment income		3.26%			1.61%			1.82%			1.52%			2.61%			1.85%
Supplemental data
Net assets, end of period (000’s)		$1,797			$2,592			$2,945			$2,882			$2,893			$2,503
Portfolio turnover rate		67.09%			169.38%			194.81%			205.14%			158.66%			251.81%

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

^b Based on average daily shares outstanding.

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

^d Ratios are annualized for periods less than one year.

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

^f Benefit of expense reduction rounds to less than 0.01%.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FINANCIAL HIGHLIGHTS

Franklin K2 Long Short Credit Fund (continued)

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

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

^b Based on average daily shares outstanding.

^c Total return is not annualized for periods less than one year.

^d Ratios are annualized for periods less than one year.

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

^f Benefit of expense reduction rounds to less than 0.01%.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FINANCIAL HIGHLIGHTS

Franklin K2 Long Short Credit Fund (continued)

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

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

^b Based on average daily shares outstanding.

^c Amount rounds to less than $0.01 per share.

^d Total return is not annualized for periods less than one year.

^e Ratios are annualized for periods less than one year.

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

^g Benefit of expense reduction rounds to less than 0.01%.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FINANCIAL HIGHLIGHTS

Franklin K2 Long Short Credit Fund (continued)

	Six Months Ended November 30, 2022 (unaudited)		Year Ended May 31,
			2022		2021		2020		2019		2018
Advisor Class
Per share operating performance (for a share outstanding throughout the period)
Net asset value, beginning of period		$10.10		$10.91		$9.88		$10.46		$10.51		$10.50
Income from investment operationsa:
Net investment incomeb		0.21		0.28		0.30		0.26		0.38		0.30
Net realized and unrealized gains (losses)		(0.72)		(0.69)		1.02		(0.53)		(0.01)		0.09
Total from investment operations		(0.51)		(0.41)		1.32		(0.27)		0.37		0.39
Less distributions from:
Net investment income		(0.23)		(0.26)		(0.28)		(0.27)		(0.33)		(0.21)
Net realized gains		—		(0.14)		(0.01)		(0.04)		(0.09)		(0.17)
Total distributions		(0.23)		(0.40)		(0.29)		(0.31)		(0.42)		(0.38)
Net asset value, end of period		$9.36		$10.10		$10.91		$9.88		$10.46		$10.51
Total returnc		(5.09)%		(3.99)%		13.45%		(2.61)%		3.60%		3.75%
Ratios to average net assetsd
Expenses before waiver, payments by affiliates and expense reductione		2.57%		2.42%		2.65%		2.96%		3.03%		3.37%
Expenses net of waiver, payments by affiliates and expense reductione		1.86%f		1.91%f		2.06%f		2.46%		2.57%		2.84%f
Expenses incurred in connection with securities sold short		0.31%		0.28%		0.41%		0.58%		0.62%		0.89%
Net investment income		4.26%		2.61%		2.81%		2.52%		3.61%		2.85%
Supplemental data
Net assets, end of period (000’s)		$49,486		$66,727		$76,637		$73,047		$86,868		$45,514
Portfolio turnover rate		67.09%		169.38%		194.81%		205.14%		158.66%		251.81%

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

^b Based on average daily shares outstanding.

^c Total return is not annualized for periods less than one year.

^d Ratios are annualized for periods less than one year.

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

^f Benefit of expense reduction rounds to less than 0.01%.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Schedule of Investments, November 30, 2022 (unaudited)

Franklin K2 Long Short Credit Fund

		Country		Shares/ Warrants/ Rights		Value
	Common Stocks and Other Equity Interests 1.0%
	Aerospace & Defense 0.0%†
a	Satellogic Inc., 1/25/27, wts.		United States		603	$	179
	Communications Equipment 0.0%†
a	Riverbed Technology Inc.		United States		3,479		887
	Diversified Financial Services 0.1%
a	Aequi Acquisition Corp., A, 11/30/27, wts.		United States		146		8
a	African Gold Acquisition Corp., A, 3/13/28, wts.		United States		1,393		28
a	Agile Growth Corp., A, 12/31/27, wts.		United States		382		5
a	Ares Acquisition Corp., A, 12/31/27, wts.		United States		566		43
a	Blue Whale Acquisition Corp. I, A, 7/09/23, wts.		United Arab Emirates		297		51
a	Crystal Peak Acquisition, A		Netherlands		1,993		19,631
a	Crystal Peak Acquisition, A, 6/22/26, wts.		Netherlands		802		401
a	DHC Acquisition Corp., A, 12/31/27, wts.		United States		71		1
a	Elliott Opportunity II Corp., A, 2/19/23, wts.		United States		333		46
a	Fast Acquisition Corp. II, A, 3/16/26, wts.		United States		53		36
a	Figure Acquisition Corp. I, A, 12/31/27, wts.		United States		345		7
a	Forum Merger IV Corp., A, 12/31/27, wts.		United States		206		5
a	Fusion Acquisition Corp. II, A, 12/31/27, wts.		United States		318		—
a	Glenfarne Merger Corp., A, 12/31/27, wts.		United States		95		—
a	Gores Technology Partners II Inc., A, 12/31/27, wts.		United States		68		—
a	Growth For Good Acquisition Corp., Contingent Value, rts., 6/14/23		United States		1,518		76
a	Hedosophia European Growth		United Kingdom		1,142		11,408
a	Jackson Acquisition Co., A, 12/31/28, wts.		United States		880		34
a	Landcadia Holdings IV Inc., A, 3/29/28, wts.		United States		343		41
a	LDH Growth Corp. I, A, 12/31/28, wts.		United States		28		2
a	Lead Edge Growth Opportunities Ltd., A, 12/31/28, wts.		United States		344		21
a	MDH Acquisition Corp., A, 2/02/28, wts.		United States		357		1
a	The Music Acquisition Corp., A, 2/05/28, wts.		United States		795		—
a	Obotech Acquisition SE, A		Luxembourg		1,240		12,607
a	Obotech Acquisition SE, A, 4/30/26, wts.		Luxembourg		413		43
a	Pegasus Acquisition Co. Europe BV, A		Netherlands		1,768		17,993
a	Southport Acquisition Corp., 5/24/28, wts.		United States		1,466		73
a	Spree Acquisition Corp. 1 Ltd., 12/22/28, wts.		Israel		909		27
a	Target Global Acquisition I Corp., A, 12/31/27, wts.		Israel		1,043		78
a	TCW Special Purpose Acquisition Corp., A, 12/31/28, wts.		United States		612		—
a	Teract SA, 11/16/25, wts.		France		1,165		24
a	Twin Ridge Capital Acquisition Corp., A		United States		2,202		22,086
a	Zimmer Energy Transition Acquisition Corp., A, 5/14/23, wts.		United States		703		91
							84,867
	Diversified Telecommunication Services 0.1%
a	Liberty Global PLC, C		United Kingdom		3,431		70,953
a	Telecom Italia SpA		Italy		61,000		13,309
							84,262
	Energy Equipment & Services 0.0%†
a	Nabors Industries Ltd.		United States		44		6,967
	Food Products 0.1%
	B&G Foods Inc., A		United States		3,600		47,808
	Hotels, Restaurants & Leisure 0.0%†
a	HomeToGo SE, 12/31/25, wts.		Luxembourg		210		22
	Independent Power & Renewable Electricity Producers 0.4%
	Clearway Energy Inc., A		United States		7,013		230,868

14 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

		Country		Shares/ Warrants/ Rights			Value
	Common Stocks and Other Equity Interests (continued)
	Oil, Gas & Consumable Fuels 0.3%
a,b	Bighorn Permian Resources LLC		United States		1,346		$	34,996
a	Earthstone Energy Inc., A		United States		31			491
c	Targa Resources Corp.		United States		2,078			154,582
								190,069
	Professional Services 0.0%†
a,b,d	Acosta Inc.		United States		923			7,569
	Textiles, Apparel & Luxury Goods 0.0%†
a	Ermenegildo Zegna Holditalia SpA, 10/30/27, wts.		Italy		571			1,142
	Total Common Stocks and Other Equity Interests (Cost $669,835)							654,640
	Convertible Preferred Stocks (Cost $50,262) 0.1%
	Professional Services 0.1%
b,d	Acosta Inc., cvt. pfd.		United States		1,066			46,797
	Preferred Stocks 0.1%
	Communications Equipment 0.0%†
a	Riverbed Technology Inc., pfd., A		United States		2,381			2,381
	Thrifts & Mortgage Finance 0.1%
	FHLMC, pfd.,
	O, 5.81%		United States		9,100			29,711
	Z, 8.375%		United States		2,420			5,324
	FNMA, pfd.,
	a O		United States		8,600			35,690
	S, 8.25%		United States		4,475			10,606
								81,331
	Total Preferred Stocks (Cost $171,500)							83,712
				Principal Amount*
	Convertible Bonds 1.5%
	Airlines 0.2%
e	Air France-KLM, senior note, Reg S, 0.125%, 3/25/26		France		9,222	EUR		159,292
	Diversified Financial Services 0.1%
	Lendingtree Inc., senior note, 0.50%, 7/15/25		United States		89,000			63,831
	Hotels, Restaurants & Leisure 0.2%
	Draftkings Holdings Inc., senior note, zero cpn., 3/15/28		United States		185,000			119,880
	Internet & Direct Marketing Retail 0.6%
e	Just Eat Takeaway.com NV, B, senior note, Reg S, 0.625%, 2/09/28		United Kingdom		300,000	EUR		212,148
	The Realreal Inc., senior note, 1.00%, 3/01/28		United States		55,000			20,625
	Spotify USA Inc., senior note, zero cpn., 3/15/26		United States		185,000			148,832
	Wayfair Inc., A, senior note, 0.625%, 10/01/25		United States		33,000			21,368
								402,973
	Leisure Products 0.1%
	Peloton Interactive Inc., senior note, zero cpn., 2/15/26		United States		50,000			35,601

franklintempleton.com Semiannual Report 15

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

		Country		Principal Amount*		Value
	Convertible Bonds (continued)
	Real Estate Management & Development 0.3%
e	Opendoor Technologies Inc., senior note, 144A, 0.25%, 8/15/26		United States		205,000	$	86,797
	Realogy Group LLC / Realogy Co.-Issuer Corp., senior note, 0.25%, 6/15/26		United States		122,000		86,132
	Redfin Corp., senior note,
	0.50%, 4/01/27		United States		78,000		32,760
	zero cpn., 10/15/25		United States		35,000		21,175
							226,864
	Total Convertible Bonds (Cost $1,176,501)					1,008,441
	Corporate Bonds and Notes 32.8%
	Airlines 0.8%
e	Allegiant Travel Co., senior secured note, 144A, 7.25%, 8/15/27		United States		18,000		17,556
e	American Airlines Group Inc., senior note, 144A, 3.75%, 3/01/25		United States		499,000		437,463
e	Spirit Loyalty Cayman Ltd. / Spirit IP Cayman Ltd., senior secured note, 144A, 8.00%, 9/20/25		United States		61,000		61,896
							516,915
	Automobiles 1.3%
e	Aston Martin Capital Holdings Ltd., senior secured note, 144A, 10.50%, 11/30/25		United Kingdom		400,000		385,700
	Ford Motor Credit Co. LLC, senior note, 5.125%, 6/16/25		United States		248,000		240,424
e	Frontier Communications Holdings LLC, senior secured note, 144A, 8.75%, 5/15/30		United States		266,000		275,494
							901,618
	Banks 0.7%
	Bank of America Corp., senior bond, 2.972%, 2/04/33		United States		228,000		186,559
	Barclays PLC, senior bond, 7.437%, 11/02/33		United Kingdom		141,000		149,524
	HSBC Holdings PLC, senior note, 7.39%, 11/03/28		United Kingdom		109,000		114,377
							450,460
	Capital Markets 0.5%
	Blackstone Private Credit Fund, senior note,
	4.70%, 3/24/25		United States		54,000		52,814
	2.625%, 12/15/26		United States		58,000		49,312
	3.25%, 3/15/27		United States		57,000		49,150
	e144A, 7.05%, 9/29/25		United States		83,000		83,221
e	Owl Rock Core Income Corp., senior note, 144A, 7.75%, 9/16/27		United States		108,000		109,309
							343,806
	Chemicals 0.3%
e	Polar US Borrower LLC / Schenectady International Group Inc., senior note, 144A, 6.75%, 5/15/26		United States		500,000		209,418
	Commercial Services & Supplies 0.2%
e	Verscend Escrow Corp., senior note, 144A, 9.75%, 8/15/26		United States		138,000		138,235
	Communications Equipment 0.2%
e	Audacy Capital Corp., senior secured note, 144A, 6.75%, 3/31/29		United States		636,000		144,633
	Construction Materials 0.5%
e	SRM Escrow Issuer LLC, senior secured note, 144A, 6.00%, 11/01/28		United States		354,000		315,704
	Containers & Packaging 0.5%
	Ball Corp., senior note, 6.875%, 3/15/28		United States		106,000		109,742
e	Mauser Packaging Solutions Holding Co., senior secured note, 144A, 5.50%, 4/15/24		United States		199,000		196,542
							306,284

16 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

		Country		Principal Amount*			Value
	Corporate Bonds and Notes (continued)
	Diversified Consumer Services 0.5%
e	The Hertz Corp., senior note, 144A, 4.625%, 12/01/26		United States		48,000		$	41,691
e	Metis Merger Sub LLC, senior note, 144A, 6.50%, 5/15/29		United States		27,000			22,278
e	Sabre GLBL Inc., senior secured note, 144A, 11.25%, 12/15/27		United States		35,000			35,897
e	Sotheby’s/Bidfair Holdings Inc., senior secured note, 144A, 5.875%, 6/01/29		United States		200,000			166,771
e	United Rentals North America Inc., senior secured note, 144A, 6.00%, 12/15/29		United States		64,000			64,442
								331,079
	Diversified Financial Services 2.2%
e	AG Issuer LLC, senior secured note, 144A, 6.25%, 3/01/28		United States		248,000			231,655
e	Finance of America Funding LLC, senior note, 144A, 7.875%, 11/15/25		United States		500,000			304,090
e	Jane Street Group / JSG Finance Inc., senior secured note, 144A, 4.50%, 11/15/29		United States		463,000			407,035
e	Medline Borrower LP, senior secured note, 144A, 3.875%, 4/01/29		United States		96,000			82,645
e	MPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28		United States		226,000			159,109
e	Vistajet Malta Finance PLC / XO Management Holding Inc., senior note, 144A, 6.375%, 2/01/30		Switzerland		355,000			291,544
								1,476,078
	Diversified Telecommunication Services 1.6%
e	Altice France Holding SA, senior secured note, 144A, 10.50%, 5/15/27		Luxembourg		200,000			158,374
	British Telecommunications PLC, senior note, 4.50%, 12/04/23		United Kingdom		200,000			198,360
e	Connect Finco Sarl / Connect US Finco LLC, senior secured note, 144A, 6.75%, 10/01/26		United Kingdom		92,000			87,090
e	Level 3 Financing Inc., senior note, 144A, 4.625%, 9/15/27		United States		344,000			290,294
e	Lorca Telecom Bondco SA, senior secured note, Reg S, 4.00%, 9/18/27		Spain		100,000	EUR		94,642
e	VMED O2 UK Financing I PLC, senior secured bond, Reg S, 4.50%, 7/15/31		United Kingdom		248,000	GBP		238,748
e	Zayo Group Holdings Inc., senior note, 144A, 6.125%, 3/01/28		United States		92,000			50,076
								1,117,584
	Electric Utilities 1.3%
e	EP Infrastructure AS, senior note, Reg S, 1.698%, 7/30/26		Czech Republic		100,000	EUR		83,932
e	Eskom Holdings SOC Ltd., senior bond, Reg S,
	6.75%, 8/06/23		South Africa		252,000			246,582
	7.125%, 2/11/25		South Africa		400,000			377,066
	Pacific Gas and Electric Co., secured bond,
	4.95%, 7/01/50		United States		200,000			160,404
	3.50%, 8/01/50		United States		63,000			40,955
								908,939
	Energy Equipment & Services 0.4%
e	Solaris Midstream Holdings LLC, senior note, 144A, 7.625%, 4/01/26		United States		264,000			260,346
	Entertainment 0.5%
e,f	AMC Entertainment Holdings Inc., senior secured note, 144A, PIK, 10.00% (cash) 6/15/26		United States		242,000			90,896
e	Netflix Inc., senior bond, 144A, 4.875%, 6/15/30		United States		278,000			262,970
								353,866
	Equity Real Estate Investment Trusts (REITs) 0.8%
	Service Properties Trust, senior bond, 4.50%, 6/15/23		United States		124,000			123,070

franklintempleton.com Semiannual Report 17

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

		Country		Principal Amount*			Value
	Corporate Bonds and Notes (continued)
	Equity Real Estate Investment Trusts (REITs) (continued)
e	Uniti Group LP / Uniti Fiber Holdings Inc. / CSL Capital LLC, senior note, 144A, 6.00%, 1/15/30		United States		241,000		$	174,315
e	Vici Properties LP / Vici Note Co. Inc., 144A,
	senior bond, 4.125%, 8/15/30		United States		171,000			148,400
	senior note, 5.625%, 5/01/24		United States		24,000			23,798
	senior note, 4.25%, 12/01/26		United States		47,000			43,779
								513,362
	Food & Staples Retailing 0.6%
e	Albertsons Cos. Inc. / Safeway Inc. / New Albertsons LP / Albertsons LLC, senior note, 144A, 4.625%, 1/15/27		United States		47,000			43,535
e	Chobani LLC / Chobani Finance Corp. Inc., senior note, 144A, 7.50%, 4/15/25		United States		383,000			374,853
								418,388
	Gas Utilities 0.1%
e	Eustream AS, senior note, Reg S, 1.625%, 6/25/27		Slovak Republic		100,000	EUR		68,586
	Health Care Providers & Services 1.1%
e	Global Medical Response Inc., senior secured note, 144A, 6.50%, 10/01/25		United States		236,000			178,014
	HCA Inc.,
	e senior bond, 144A, 4.625%, 3/15/52		United States		88,000			71,079
	senior secured bond, 3.50%, 7/15/51		United States		109,000			73,843
e	LifePoint Health Inc., senior note, 144A, 5.375%, 1/15/29		United States		187,000			110,015
e	RP Escrow Issuer LLC, senior secured note, 144A, 5.25%, 12/15/25		United States		283,000			237,352
e	Universal Health Services Inc., senior secured note, 144A, 1.65%, 9/01/26		United States		88,000			75,571
								745,874
	Health Care Technology 0.5%
c,e	Cloud Software Group Holdings Inc., senior secured note, 144A, 6.50%, 3/31/29		United States		280,000			244,976
e	Open Text Corp., senior secured note, 144A, 6.90%, 12/01/27		Canada		80,000			80,197
								325,173
	Hotels, Restaurants & Leisure 1.3%
e	Carnival Corp., 144A,
	senior note, 7.625%, 3/01/26		United States		102,000			86,134
	senior note, 6.00%, 5/01/29		United States		96,000			68,282
	senior secured note, 9.875%, 8/01/27		United States		64,000			62,560
	senior secured note, 4.00%, 8/01/28		United States		93,000			77,562
e	Carnival Holdings Bermuda Ltd., senior note, 144A, 10.375%, 5/01/28		United States		195,000			203,340
e	Lions Gate Capital Holdings LLC, senior note, 144A, 5.50%, 4/15/29		United States		302,000			196,699
e	Royal Caribbean Cruises Ltd., 144A,
	senior secured note, 8.25%, 1/15/29		United States		130,000			132,119
	senior note, 9.25%, 1/15/29		United States		81,000			83,009
								909,705
	Household Durables 1.0%
e	K. Hovnanian Enterprises Inc., senior secured note, 144A,
	7.75%, 2/15/26		United States		446,000			440,104
	10.50%, 2/15/26		United States		250,000			245,029
								685,133

18 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

		Country		Principal Amount*			Value
	Corporate Bonds and Notes (continued)
	Internet & Direct Marketing Retail 1.3%
	Amazon.com Inc., senior bond, 2.70%, 6/03/60		United States		470,000		$	297,895
e	Meta Platforms Inc., senior note, 144A, 3.50%, 8/15/27		United States		294,000			276,483
e	Prosus NV, Reg S,
	senior bond, 1.985%, 7/13/33		China		127,000	EUR		87,328
	senior bond, 2.778%, 1/19/34		China		100,000	EUR		72,659
	senior note, 3.257%, 1/19/27		China		100,000			87,985
e	Rakuten Group Inc., senior note, 144A, 10.25%, 11/30/24		Japan		88,000			86,728
								909,078
	IT Services 0.7%
e	Hurricane Finance PLC, senior secured note, Reg S, 8.00%, 10/15/25		United Kingdom		234,000	GBP		266,517
e	Virtusa Corp., senior note, 144A, 7.125%, 12/15/28		United States		286,000			214,986
								481,503
	Leisure Products 0.4%
e	Life Time Inc., senior secured note, 144A, 5.75%, 1/15/26		United States		25,000			24,074
e	Mattel Inc., senior note, 144A, 3.375%, 4/01/26		United States		280,000			257,458
								281,532
	Machinery 0.4%
e	TK Elevator US Newco Inc., senior secured note, 144A, 5.25%, 7/15/27		Germany		264,000			239,975
	Media 2.9%
e	Advantage Sales & Marketing Inc., senior secured note, 144A, 6.50%, 11/15/28		United States		139,000			109,046
e	CCO Holdings LLC / CCO Holdings Capital Corp., senior bond, 144A, 5.00%, 2/01/28		United States		40,000			36,837
	Charter Communications Operating LLC / Charter Communications Operating Capital, senior secured bond,
	3.50%, 3/01/42		United States		126,000			85,538
	6.484%, 10/23/45		United States		353,000			333,031
	3.95%, 6/30/62		United States		281,000			175,835
	CSC Holdings LLC, senior bond,
	e 144A, 5.50%, 4/15/27		United States		58,000			53,214
	e 144A, 5.375%, 2/01/28		United States		34,000			30,480
	5.25%, 6/01/24		United States		88,000			84,903
e	DISH DBS Corp., senior secured note, 144A, 5.75%, 12/01/28		United States		350,000			284,524
e	Dish Network Corp., senior secured note, 144A, 11.75%, 11/15/27		United States		185,000			190,380
e	iHeartCommunications Inc., senior secured note, 144A, 4.75%, 1/15/28		United States		240,000			207,277
	Liberty Interactive LLC, senior bond, 8.25%, 2/01/30		United States		360,000			180,657
	TEGNA Inc., senior note, 4.625%, 3/15/28		United States		185,000			174,712
								1,946,434
	Metals & Mining 0.5%
	Arcelormittal SA, senior bond, 6.80%, 11/29/32		Luxembourg		44,000			44,505
e	Taseko Mines Ltd., senior secured note, 144A, 7.00%, 2/15/26		Canada		387,000			325,422
								369,927
	Mortgage Real Estate Investment Trusts (REITs) 0.6%
e	Apollo Commercial Real Estate Finance Inc., senior secured note, 144A, 4.625%, 6/15/29		United States		355,000			283,232
e	Rithm Capital Corp., senior note, 144A, 6.25%, 10/15/25		United States		149,000			134,780
								418,012
	Multiline Retail 0.2%
	Kohl’s Corp., senior bond, 5.55%, 7/17/45		United States		156,000			103,528

franklintempleton.com Semiannual Report 19

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

		Country		Principal Amount*		Value
	Corporate Bonds and Notes (continued)
	Oil, Gas & Consumable Fuels 3.1%
e	Aethon United BR LP / Aethon United Finance Corp., senior note, 144A, 8.25%, 2/15/26		United States		74,000	$	73,726
e	Callon Petroleum Co., senior note, 144A, 8.00%, 8/01/28		United States		36,000		35,609
	Energy Transfer LP,
	senior bond, 6.125%, 12/15/45		United States		49,000		46,539
	senior bond, 6.00%, 6/15/48		United States		73,000		67,253
	senior bond, 6.25%, 4/15/49		United States		40,000		37,950
	senior bond, 5.00%, 5/15/50		United States		64,000		52,848
	g junior sub. note, H, 6.50% to 11/15/26, FRN thereafter, Perpetual		United States		120,000		103,581
	Laredo Petroleum Inc., senior note,
	9.50%, 1/15/25		United States		22,000		22,032
	10.125%, 1/15/28		United States		24,000		24,318
e	Moss Creek Resources Holdings Inc., senior note, 144A,
	7.50%, 1/15/26		United States		46,000		42,862
	10.50%, 5/15/27		United States		107,000		105,395
e	New Fortress Energy Inc., senior secured note, 144A, 6.75%, 9/15/25		United States		373,000		364,917
e	NGL Energy Operating LLC / NGL Energy Finance Corp., senior secured note, 144A, 7.50%, 2/01/26		United States		354,000		320,144
e	Northern Oil And Gas Inc., senior note, 144A, 8.125%, 3/01/28		United States		31,000		30,305
	Petroleos Mexicanos, senior bond, 6.75%, 9/21/47		Mexico		238,000		151,507
e	Rockies Express Pipeline LLC, senior bond, 144A, 4.95%, 7/15/29		United States		22,000		19,823
	Southwestern Energy Co., senior bond, 4.75%, 2/01/32		United States		278,000		243,365
e	Venture Global Calcasieu Pass LLC, senior secured bond, 144A, 3.875%, 11/01/33		United States		381,000		310,515
	The Williams Cos. Inc., senior bond, 3.50%, 10/15/51		United States		95,000		67,352
							2,120,041
	Pharmaceuticals 1.7%
e	1375209 Bc Ltd., senior secured note, 144A, 9.00%, 1/30/28		Canada		171,000		168,862
e	Bausch Health Cos. Inc., senior secured note, 144A,
	c 5.50%, 11/01/25		United States		167,000		141,344
	11.00%, 9/30/28		United States		610,000		471,225
	14.00%, 10/15/30		United States		122,000		68,296
e	Organon & Co. / Organon Foreign Debt Co.-Issuer BV, senior bond, 144A, 5.125%, 4/30/31		United States		355,000		315,417
							1,165,144
	Professional Services 0.3%
e	Corelogic Inc., senior secured note, 144A, 4.50%, 5/01/28		United States		239,000		176,694
	Real Estate Management & Development 0.5%
e	The Howard Hughes Corp., senior note, 144A, 5.375%, 8/01/28		United States		176,000		159,466
e	Hunt Cos. Inc., senior secured note, 144A, 5.25%, 4/15/29		United States		252,000		209,415
							368,881
	Semiconductors & Semiconductor Equipment 0.5%
	Intel Corp., senior bond, 3.05%, 8/12/51		United States		235,000		160,332
	NVIDIA Corp., senior bond, 2.85%, 4/01/30		United States		235,000		207,668
							368,000
	Software 0.6%
	Microsoft Corp., senior bond, 2.525%, 6/01/50		United States		235,000		162,197
	Oracle Corp., senior bond,
	3.60%, 4/01/40		United States		57,000		42,884
	3.60%, 4/01/50		United States		156,000		108,782
	3.85%, 4/01/60		United States		121,000		81,790
							395,653

20 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

		Country		Principal Amount*			Value
	Corporate Bonds and Notes (continued)
	Specialty Retail 2.1%
e	Abercrombie & Fitch Management Co., senior secured note, 144A, 8.75%, 7/15/25		United States		124,000		$	123,532
	Bath & Body Works Inc., senior bond,
	6.875%, 11/01/35		United States		35,000			31,723
	6.75%, 7/01/36		United States		48,000			42,210
	e 144A, 6.625%, 10/01/30		United States		66,000			61,875
e	Carvana Co., senior note, 144A,
	5.625%, 10/01/25		United States		303,000			136,879
	5.50%, 4/15/27		United States		72,000			25,971
	5.875%, 10/01/28		United States		65,000			22,923
	4.875%, 9/01/29		United States		129,000			43,355
	10.25%, 5/01/30		United States		323,000			137,654
e	Douglas GMBH, senior secured note, Reg S, 6.00%, 4/08/26		Germany		731,000	EUR		635,053
e	Guitar Center Inc., senior secured note, 144A, 8.50%, 1/15/26		United States		151,000			132,311
								1,393,486
	Telecommunications 0.1%
	Embarq Corp., senior bond, 7.995%, 6/01/36		United States		138,000			58,869
	Total Corporate Bonds and Notes (Cost $25,139,698)							22,237,943
h,i	Senior Floating Rate Interests 0.7%
	Communications Equipment 0.1%
f	Riverbed Technology Inc., Exit Term Loan, PIK, 7.00% (cash), (1-Month USD LIBOR + 6.00%) 12/08/26		United States		88,477			37,413
	Consumer Discretionary Services 0.2%
	Travel Leaders Group LLC, Term Loan B, 8.071%, (1-Month USD LIBOR + 4.00%), 1/25/24		United States		140,784			128,671
	Equity Real Estate Investment Trusts (REITs) 0.1%
	McCarthy & Stone PLC, Term Loan B, 7.00%, (1-Month USD LIBOR + 7.00%), 12/16/25		United Kingdom		50,969	GBP		53,137
	Food & Staples Retailing 0.1%
j	Upfield Group BV, Term Loan RC, 4.492%, (3-Month EURIBOR + 3.00%), 1/02/25		Netherlands		67,209			58,573
	Health Care Equipment & Supplies 0.0%†
	Bausch & Lomb Corp., Initial Term Loan, 7.149%, (1-Month SOFR + 3.35%), 5/10/27		United States		38,497			36,601
	Media 0.0%†
	Advantage Sales & Marketing Inc., Term Loan B1, 8.284%, (3-Month USD LIBOR + 4.50%), 10/28/27		United States		34,140			27,683
	Altice USA Inc., Term Loan B, 6.123%, (1-Month USD LIBOR + 2.25%), 1/15/26		United States		7,032			6,721
								34,404
	Pharmaceuticals 0.1%
j	Bausch Health Cos. Inc., Term Loan B, 9.146%, (1-Month SOFR + 5.25%), 2/01/27		United States		75,731			56,751
	Software 0.1%
j	Citrix Systems Inc., Term Loan B, 8.153%, (1-Month SOFR + 4.50%), 3/30/29		United States		79,921			72,800
	Textiles, Apparel & Luxury Goods 0.0%†
j	Varsity Brands, Initial Term Loan, 7.571%, (1-Month USD LIBOR + 3.50%), 12/16/24		United States		4,859			4,675
	Total Senior Floating Rate Interests (Cost $590,468)							483,025

franklintempleton.com Semiannual Report 21

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

		Country		Principal Amount*			Value
	Foreign Government and Agency Securities 4.7%
e	Government of Angola, senior bond, Reg S,
	8.00%, 11/26/29		Angola		274,000		$	249,271
	9.375%, 5/08/48		Angola		200,000			167,655
	Government of Argentina, senior bond, 1.50%, 7/09/35		Argentina		1,670,495			392,587
e	Government of Dominican Republic, senior bond, Reg S, 5.875%, 1/30/60		Dominican Republic		300,000			223,875
e	Government of Germany, senior bond, Reg S, zero cpn., 2/15/32		Germany		76,500	EUR		66,824
e	Government of Iraq, senior bond, Reg S, 5.80%, 1/15/28		Iraq		171,875			154,689
c	Government of Italy, senior note, 2.375%, 10/17/24		Italy		373,000			350,054
e	Government of Nigeria, senior note, Reg S, 8.375%, 3/24/29		Nigeria		224,000			187,317
e	Government of Oman, senior bond, Reg S,
	6.25%, 1/25/31		Oman		200,000			199,842
	6.75%, 1/17/48		Oman		216,000			198,549
	Government of South Africa, senior bond,
	10.50%, 12/21/26		South Africa		6,839,116	ZAR		419,723
	8.75%, 2/28/48		South Africa		6,057,183	ZAR		275,865
e	Government of Ukraine, senior bond, Reg S,
	7.253%, 3/15/35		Ukraine		200,000			43,002
	7.375%, 9/25/34		Ukraine		622,000			134,588
	7.75%, 9/01/26		Ukraine		200,000			47,806
	zero cpn., 8/01/41		Ukraine		208,000			63,826
	Total Foreign Government and Agency Securities (Cost $3,747,303)							3,175,473
	U.S. Government and Agency Securities 2.4%
	U.S. Treasury Bond,
	2.25%, 2/15/52		United States		56,900			41,108
	2.875%, 5/15/52		United States		193,500			160,907
	U.S. Treasury Note,
	3.125%, 8/31/27		United States		881,500			854,676
	4.125%, 10/31/27		United States		63,200			64,012
	3.875%, 9/30/29		United States		50,000			50,356
	4.00%, 10/31/29		United States		11,000			11,169
	1.875%, 2/15/32		United States		79,800			68,734
	2.875%, 5/15/32		United States		48,800			45,750
	2.75%, 8/15/32		United States		257,300			238,364
	4.125%, 11/15/32		United States		68,900			71,602
	Total U.S. Government and Agency Securities (Cost $1,632,737)							1,606,678
	Asset-Backed Securities and Commercial Mortgage-Backed Securities 35.6%
	Diversified Financial Services 15.8%
e,k	AMSR Trust, 2021-SFR1, G, 144A, FRN, 4.612%, 6/17/38		United States		500,000			397,166
e,i	Catskill Park CLO Ltd., 2017-1A, C, 144A, FRN, 7.943%, (3-Month USD LIBOR + 3.70%), 4/20/29		United States		1,000,000			933,894
	CitiMortgage Alternative Loan Trust, 2007-A1, 2A1, 5.50%, 1/25/22		United States		13,026			11,696
e,i	Connecticut Avenue Securities Trust, 2022-R07, 1B1, 144A, FRN, 10.347%, (SOFR + 6.80%), 6/25/42		United States		13,532			13,838
e,i	FHLMC, 2022-DNA1, M1B, 144A, FRN, 5.371%, (SOFR + 1.85%), 1/25/42		United States		15,000			13,741
e	FRTKL, 2021-SFR1, G, 144A, 4.105%, 9/17/38		United States		990,000			828,142
e,i	GSMSC Pass-Through Trust, 2009-4R, 2A3, 144A, FRN, 4.036%, (1-Month USD LIBOR + 0.45%), 12/26/36		United States		575,179			407,051
e,i	KREF Ltd., 2021-FL2, C, 144A, FRN, 5.911%, (1-Month USD LIBOR + 2.00%), 2/15/39		United States		500,000			469,223

22 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

		Country		Principal Amount*		Value
	Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)
	Diversified Financial Services (continued)
e,i	Marathon CLO VI Ltd., 2018-6A, CR2, 144A, FRN, 8.15%, (3-Month USD LIBOR + 3.50%), 5/13/28		United States		980,000	$	949,174
e,i	Mountain View CLO Ltd., 2018-1A, DRR, 144A, FRN, 7.729%, (3-Month USD LIBOR + 3.65%), 10/15/26		United States		1,290,000		1,282,493
e,i	OCP CLO Ltd., 2021-8RA, C, 144A, FRN, 7.829%, (3-Month USD LIBOR + 3.75%), 1/17/32		United States		1,000,000		923,029
e	S-Jets Ltd., 2017-1, A, 144A, 3.967%, 8/15/42		Bermuda		2,138,769		1,646,761
k	STARM Mortgage Loan Trust, 2007-2, 4A1, FRN, 2.414%, 4/25/37		United States		42,852		24,724
e	Stellar Jay Ireland DAC, 2021-1, B, 144A, 5.926%, 10/15/41		Ireland		946,940		779,641
i	Suntrust Alternative Loan Trust, 2005-1F, 1A1, FRN, 4.694%, (1-Month USD LIBOR + 0.65%), 12/25/35		United States		78,770		66,755
e	Thunderbolt II Aircraft Lease Ltd., 2018-A, A, 144A, 4.147%, 9/15/38		United States		1,439,515		1,091,103
e,i	VMC Finance LLC, 2019-FL3, C, 144A, FRN, 5.961%, (1-Month USD LIBOR + 2.05%), 9/15/36		United States		880,961		838,561
	Wells Fargo Alternative Loan Trust, 2007-PA3, 2A2, 6.00%, 7/25/37		United States		88,595		74,238
							10,751,230
	Mortgage Real Estate Investment Trusts (REITs) 19.8%
k	American Home Mortgage Assets Trust, 2005-1, 1A1, FRN, 3.333%, 11/25/35		United States		102,010		78,354
e,k	Avenue of The Americas Trust, 2015-1211, E, 144A, FRN, 4.28%, 8/10/35		United States		150,000		123,581
k	Banc of America Mortgage Trust, FRN, 2005-K, 2A1, 3.419%, 12/25/35		United States		113,979		99,840
	2005-L, 1A1, 2.661%, 1/25/36		United States		87,372		72,916
	2005-L, 3A1, 2.629%, 1/25/36		United States		63,513		57,809
e,i	BBCMS Mortgage Trust, 2019-BWAY, E, 144A, FRN, 6.725%, (1-Month USD LIBOR + 2.85%), 11/15/34		United States		2,000,000		1,675,273
e,k	BCAP LLC Trust, 2010-RR1, 1A4, 144A, FRN, 3.222%, 3/26/37		United States		178,602		140,478
k	Bear Stearns ARM Trust, FRN, 2002-11, 1A2, 3.25%, 2/25/33		United States		1,461		1,136
	2006-2, 4A1, 3.28%, 7/25/36		United States		30,998		25,937
e,i	BXMT Ltd., 2021-FL4, C, 144A, FRN, 5.625%, (1-Month USD LIBOR + 1.75%), 5/15/38		United States		500,000		468,079
k	Citigroup Mortgage Loan Trust, 2007-AR5, 2A1A, FRN, 3.543%, 4/25/37		United States		75,027		63,728
	Countrywide Alternative Loan Trust, 2005-73CB, 1A2, 6.25%, 1/25/36		United States		109,947		103,695
	2005-J10, 2A4, 6.00%, 10/25/35		United States		388,701		198,764
k	Credit Suisse First Boston Mortgage Securities Corp., 2004-AR3, CB2, FRN, 3.061%, 4/25/34		Switzerland		103,865		87,054
	CSMC Mortgage-Backed Trust, 2006-4, 9A1, 6.50%, 5/25/36		United States		718,280		292,763
e,k	FARM Mortgage Trust, 2021-1, B, 144A, FRN, 3.238%, 7/25/51		United States		896,953		650,341
e,i	Federal Home Loan Mortgage Corp., 2021-DNA6, B1, 144A, FRN, 6.947%, (SOFR + 3.40%), 10/25/41		United States		20,429		18,414
i	FREMF Mortgage Trust, 2018-KF52, B, FRN, 5.755%, (1-Month USD LIBOR + 1.95%), 9/25/28		United States		402,167		396,423
	GSR Mortgage Loan Trust, 2004-6F, 2A4, 5.50%, 5/25/34		United States		73,623		70,454
	Impac CMB Trust, 2004-4, 2A2, 5.357%, 9/25/34		United States		115,477		115,692
	i2004-8, 3B, FRN, 6.211%, (1-Month USD LIBOR + 2.63%), 8/25/34		United States		91,136		79,179
	i2005-2, 2B, FRN, 6.519%, (1-Month USD LIBOR + 2.48%), 4/25/35		United States		52,747		46,851
	i2005-4, 2M1, FRN, 4.766%, (1-Month USD LIBOR + 0.50%), 5/25/35		United States		138,076		109,802
	i2005-8, 2B, FRN, 6.294%, (1-Month USD LIBOR + 2.25%), 2/25/36		United States		66,692		58,630

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

		Country		Principal Amount*		Value
	Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)
	Mortgage Real Estate Investment Trusts (REITs) (continued)
i	IndyMac INDX Mortgage Loan Trust, FRN, 2006-AR12, A1, 4.424%, (1-Month USD LIBOR + 0.38%), 9/25/46		United States		136,634	$	117,744
	2006-AR29, A2, 4.204%, (1-Month USD LIBOR + 0.16%), 11/25/36		United States		232,937		217,557
k	JPMBB Commercial Mortgage Securities Trust, 2015-C31, D, FRN, 4.276%, 8/15/48		United States		702,000		583,421
k	JPMorgan Mortgage Trust, FRN, 2006-A5, 6A1, 3.723%, 8/25/36		United States		162,882		129,012
	2006-A7, 2A3, 3.702%, 1/25/37		United States		68,146		52,546
	2007-A2, 2A1, 3.46%, 4/25/37		United States		94,888		69,786
b	Lehman Mortgage Trust, 2005-3, 2A3, 5.50%, 1/25/36		United States		53,799		40,328
k	MASTR Adjustable Rate Mortgages Trust, 2004-10, B1, FRN, 3.504%, 10/25/34		United States		418,901		352,142
k	MASTR Alternative Loan Trust, 2007-HF1, 3A1, FRN, 2.838%, 10/25/47		United States		468,937		308,090
e,i	Morgan Stanley Capital I Trust, 2018-BOP, E, 144A, FRN, 5.825%, (1-Month USD LIBOR + 1.95%), 6/15/35		United States		1,200,000		1,128,847
k	RFMSI Trust, 2007-SA2, 3A, FRN, 5.25%, 4/25/37		United States		704,743		186,789
e,i	STACR Trust, 2018-HRP1, B2, 144A, FRN, 15.766%, (1-Month USD LIBOR + 11.75%), 5/25/43		United States		1,913,138		1,985,759
k	Structured ARM Loan Trust, 2004-4, B1, FRN, 4.03%, 4/25/34		United States		443,059		367,222
	WaMu Mortgage Pass-Through Certificates Series Trust, FRN, k2003-AR3, B1, 3.72%, 6/25/33		United States		194,578		171,424
	i2005-AR11, B1, 4.959%, (1-Month USD LIBOR + 0.92%), 8/25/45		United States		1,059,000		842,559
	i2006-4, 3A2B, 4.204%, (1-Month USD LIBOR + 0.16%), 5/25/36		United States		183,947		155,458
e,k	WFRBS Commercial Mortgage Trust, 2014-C22, D, 144A, FRN, 4.056%, 9/15/57		United States		2,000,000		1,680,262
							13,424,139
	Total Asset-Backed Securities and Commercial Mortgage-Backed Securities (Cost $26,999,547)						24,175,369
		Number of Contracts		Notional Amount#
	Options Purchased 0.1%
	Calls – Exchange-Traded 0.0%†
	Alibaba Group Holding Ltd., January Strike Price $90.00, Expires 1/20/23		6		52,536		4,230
	Carvana Co., December Strike Price $20.00, Expires 12/16/22		22		16,962		88
	Carvana Co., March Strike Price $20.00, Expires 3/17/23		11		8,481		528
	CBOE Volatility Index, December Strike Price $30.00, Expires 12/21/22		240		493,920		10,320
	JD.com Inc., December Strike Price $67.50, Expires 12/16/22		13		74,334		1,235
	Meta Platforms Inc., March Strike Price $150.00, Expires 3/17/23		23		271,630		8,165
	SPDR S&P Oil & Gas Exploration & Production ETF, January Strike Price $160.00, Expires 1/20/23		14		212,968		8,330
							32,896
	Calls – Over-the-Counter 0.0%†
	JD.com Inc., Counterparty GSCO, January Strike Price $55.00, Expires 1/20/23		6		34,308		4,380
	Puts – Exchange-Traded 0.1%
	Blackstone Inc., February Strike Price $85.00, Expires 2/17/23		18		164,754		8,874
	Deere & Co., December Strike Price $310.00, Expires 12/16/22		4		176,400		20
	Deere & Co., March Strike Price $300.00, Expires 3/17/23		2		88,200		412

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

		Number of Contracts		Notional Amount#		Value
	Options Purchased (continued)
	Puts – Exchange-Traded (continued)
	Dick’s Sporting Good Inc., December Strike Price $85.00, Expires 12/16/22		20		239,160	$	200
	Dick’s Sporting Good Inc., March Strike Price $70.00, Expires 3/17/23		8		95,664		856
	iShares iBoxx High Yield Corporate Bond ETF, December Strike Price $68.00, Expires 12/16/22		1,000		7,566,000		4,000
	iShares iBoxx High Yield Corporate Bond ETF, January Strike Price $61.00, Expires 1/20/23		138		1,044,108		828
	S&P 500 Index, March Strike Price $3,445.00, Expires 3/31/23		4		1,632,044		16,160
	SPDR S&P 500 ETF Trust, December Strike Price $365.00, Expires 12/16/22		6		244,608		192
	Tesla Inc., April Strike Price $100.00, Expires 4/21/23		23		447,810		6,187
	Upstart Holdings Inc., March Strike Price $10.00, Expires 3/17/23		23		44,965		2,323
							40,052
	Puts – Over-the-Counter 0.0%†
	DJ EURO STOXX 50 Index, Counterparty BZWS, December Strike Price 3,450.00 EUR, Expires 12/16/22		3		118,942		81
	DJ EURO STOXX 50 Index, Counterparty BZWS, December Strike Price 3,750.00 EUR, Expires 12/16/22		4		158,589		537
	H & M Hennes & Mauritz AB, Counterparty CITI, December Strike Price 114.00 SEK, Expires 12/16/22		15		174,990		436
	H & M Hennes & Mauritz AB, Counterparty CITI, March Strike Price 100.00 SEK, Expires 3/17/23		21		244,986		640
	Softbank Group, Counterparty GSCO, March Strike Price 4,540.00 JPY, Expires 3/09/23		1,180		7,023,360		758
							2,452
	Currency Options 0.0%†
	USD/JPY, Counterparty GSCO, March Strike Price 126.00 JPY, Expires 3/14/23		1		1,243,000		7,410
	Total Options Purchased (Cost $337,485)						87,190
	Total Investments before Short Term Investments (Cost $60,515,336)						53,559,268
		Country		Shares
	Short Term Investments 19.9%
	Money Market Funds (Cost $13,030,542) 19.2%
l	Fidelity Investments Money Market Government Portfolio, Institutional, 3.58%		United States		13,030,542		13,030,542
				Principal Amount*
	Repurchase Agreements (Cost $467,501) 0.7%
m	Joint Repurchase Agreement, 3.745%, 12/01/22 (Maturity Value $467,550)		United States		467,501		467,501
	BNP Paribas Securities Corp. (Maturity Value $104,928) Deutsche Bank Securities Inc. (Maturity Value $16,354) HSBC Securities (USA) Inc. (Maturity Value $346,268)
	Collateralized by U.S. Government and Agency Securities, 6.30%, 1/15/23 - 10/20/52; U.S. Treasury Bonds, Index Linked, 0.38%, 1/15/27; U.S. Treasury Notes, 0.13% - 1.13%, 12/31/22 - 1/15/25; and nU.S. Cash Management Bill, 1/15/25 (Valued at $477,022)
	Total Investments (Cost $74,013,379) 98.9%						67,057,311
	Options Written (0.3)%						(228,714	)
	Securities Sold Short (5.7)%						(3,857,624	)
	Other Assets, less Liabilities 7.1%						4,865,967
	Net Assets 100.0%					$	67,836,940

franklintempleton.com Semiannual Report 25

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

		Number of Contracts		Notional Amount#		Value
o	Options Written (0.3)%
	Calls – Exchange-Traded (0.3)%
	iShares iBoxx High Yield Corporate Bond ETF, December Strike Price $74.00, Expires 12/16/22		1,000		7,566,000	$	(161,000	)
	S&P 500 Index, March Strike Price $4,100.00, Expires 3/31/23		4		1,632,044		(61,556	)
							(222,556	)
	Puts – Exchange-Traded (0.0)%†
	Blackstone Inc., February Strike Price $75.00, Expires 2/17/23		18		164,754		(3,996	)
	iShares iBoxx High Yield Corporate Bond ETF, December Strike Price $63.00, Expires 12/16/22		1,000		7,566,000		(2,000	)
							(5,996	)
	Puts – Over-the-Counter (0.0)%†
	DJ EURO STOXX 50 Index, Counterparty BZWS, December Strike Price 3,550.00 EUR, Expires 12/16/22		4		158,589		(162	)
	Total Options Written (Premiums Received $171,745)						(228,714	)
		Country		Shares
p	Securities Sold Short (5.7)%
	Common Stocks (1.1)%
	Capital Markets (1.1)%
	Ares Capital Corp.		United States		23,270		(457,256	)
	Coinbase Global Inc., A		United States		900		(41,157	)
	Owl Rock Capital Corp.		United States		20,918		(270,051	)
	Total Common Stocks (Proceeds $775,133)						(768,464	)
				Principal Amount*
	Corporate Bonds and Notes (3.1)%
	Automobiles (0.2)%
	Ford Motor Credit Co. LLC, senior note, 4.95%, 5/28/27		United States		140,000		(132,644	)
	Building Products (0.2)%
	3M Co., senior bond, 2.375%, 8/26/29		United States		146,000		(125,750	)
	Chemicals (0.1)%
	Celanese US Holdings LLC, senior note, 6.33%, 7/15/29		United States		78,000		(75,051	)
	Construction & Engineering (0.4)%
	Fluor Corp., senior bond, 4.25%, 9/15/28		United States		312,000		(284,466	)
	Consumer Finance (0.5)%
	Ally Financial Inc., junior sub. bond, 5.75%, 11/20/25		United States		48,000		(47,388	)
	Onemain Finance Corp., senior note, 6.875%, 3/15/25		United States		28,000		(27,230	)
	7.125%, 3/15/26		United States		257,000		(249,290	)
							(323,908	)
	Diversified Financial Services (0.4)%
e	Kronos Acquisition Holdings Inc. / KIK Custom Products Inc., senior note, 144A, 7.00%, 12/31/27		Canada		166,000		(138,071	)
e	Medline Borrower LP, senior note, 144A, 5.25%, 10/01/29		United States		96,000		(78,348	)
e	MPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28		United States		137,000		(96,451	)
							(312,870	)
	Electric Utilities (0.0)%†
e	Vistra Operations Co. LLC, senior note, 144A, 4.375%, 5/01/29		United States		12,000		(10,750	)
	Health Care Providers & Services (0.1)%
e	Tenet Healthcare Corp., senior secured note, 144A, 6.25%, 2/01/27		United States		69,000		(66,201	)

26 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

		Country		Principal Amount*			Value
p	Securities Sold Short (continued)
	Corporate Bonds and Notes (continued)
	Media (0.6)%
	DISH DBS Corp., senior note, 7.75%, 7/01/26		United States		33,000		$	(27,691	)
	iHeartCommunications Inc., senior note, 8.375%, 5/01/27		United States		228,886			(204,084	)
e	Scripps Escrow II Inc., senior bond, 144A, 5.375%, 1/15/31		United States		210,000			(171,696	)
								(403,471	)
	Oil, Gas & Consumable Fuels (0.1)%
e	Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp., senior bond, 144A, 6.00%, 12/31/30		United States		71,000			(64,343	)
	Semiconductors & Semiconductor Equipment (0.5)%
	Intel Corp., senior bond, 4.75%, 3/25/50		United States		143,000			(128,884	)
	4.90%, 8/05/52		United States		211,000			(193,253	)
								(322,137	)
	Total Corporate Bonds and Notes (Proceeds $2,206,523)							(2,121,591	)
	Foreign Government and Agency Securities (0.6)%
e	Government of Italy, senior bond, Reg S, 0.95%, 6/01/32		Italy		92,000	EUR		(74,684	)
	Government of Turkey, senior bond, 5.75%, 3/22/24		Turkey		170,000			(170,037	)
	7.375%, 2/05/25		Turkey		131,000			(131,922	)
	Total Foreign Government and Agency Securities (Proceeds $388,202)							(376,643	)
	U.S. Government and Agency Securities (0.9)%
	U.S. Treasury Bond, 3.375%, 8/15/42		United States		68,000			(62,231	)
	2.25%, 2/15/52		United States		56,900			(41,108	)
	U.S. Treasury Note, 4.125%, 9/30/27		United States		43,600			(44,136	)
	1.875%, 2/15/32		United States		79,800			(68,734	)
	2.875%, 5/15/32		United States		48,800			(45,750	)
	2.75%, 8/15/32		United States		355,100			(328,967	)
	Total U.S. Government and Agency Securities (Proceeds $610,113)							(590,926	)
	Total Securities Sold Short (Proceeds $3,979,971)						$	(3,857,624	)

^† Rounds to less than 0.1% of net assets.

* The principal amount is stated in U.S. dollars unless otherwise indicated.

^# 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.

^a Non-income producing.

^b Fair valued using significant unobservable inputs. See Note 14 regarding fair value measurements.

^c A portion or all of the security has been segregated as collateral for securities sold short, open swap contracts, open forward exchange contracts, open futures contracts and/or open written option contracts. At November 30, 2022, the aggregate value of these securities and/or cash pledged amounted to $1,141,119, representing 1.7% of net assets.

^d See Note 10 regarding restricted securities.

^e Security was purchased pursuant to Rule 144A or Regulation S under the Securities Act of 1933. 144A securities may be sold in transactions exempt from registration only to qualified institutional buyers or in public offering registered under the Securities Act of 1933. Regulation S securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At November 30, 2022, the net value of these securities was $37,435,393, representing 55.2% of net assets.

^f Income may be received in additional securities and/or cash.

^g Perpetual security with no stated maturity date.

^h See Note 1(g) regarding senior floating rate interests.

franklintempleton.com Semiannual Report 27

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

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

^j See Note 11 regarding unfunded loan commitments.

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

^l The rate shown is the annualized seven-day effective yield at period end.

^m See Note 1(c) regarding joint repurchase agreement.

ⁿ The security was issued on a discount basis with no stated coupon rate.

^o See Note 1(d) regarding written options.

^p See Note 1(f) regarding securities sold short.

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

Futures Contracts
Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Equity Contracts
NASDAQ 100 E-Mini Index		Short		3	$	722,535		12/16/22	$	(15,675	)
S&P 500 E-Mini Index		Short		3		612,188		12/16/22		(23,303	)
Total Futures Contracts									$	(38,978	)

* As of period end.

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

Forward Exchange Contracts
Currency	Counterpartya		Type		Quantity		Contract Amount*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts
Brazilian Real		JPHQ		Buy		1,915,375		358,086			12/02/22	$	11,012	$	—
Brazilian Real		JPHQ		Sell		1,915,375		360,273			12/02/22		—		(8,825	)
British Pound		JPHQ		Sell		740,000		845,134			12/21/22		—		(47,540	)
Chilean Peso		JPHQ		Sell		179,216,737		182,260			12/21/22		—		(18,293	)
Chinese Yuan		JPHQ		Sell		1,003,592		139,961			12/21/22		—		(2,718	)
Polish Zloty		JPHQ		Sell		334,605		67,778	EUR		12/21/22		4,264		(7,740	)
Hungarian Forint		JPHQ		Sell		80,165,578		193,209	EUR		12/21/22		9,793		(10,887	)
Euro		JPHQ		Buy		967,290		969,309			12/21/22		43,374		—
Euro		JPHQ		Sell		1,069,309		1,066,836			12/21/22		—		(48,095	)
Hong Kong Dollar		JPHQ		Buy		160,000		20,415			12/21/22		63		—
Hong Kong Dollar		JPHQ		Sell		330,000		42,098			12/21/22		—		(138	)
Euro		DBAB		Sell		54,936		23,490,736	HUF		12/21/22		5,937		(3,865	)
Euro		JPHQ		Sell		134,519		56,674,841	HUF		12/21/22		8,514		(5,578	)
Japanese Yen		JPHQ		Sell		3,860,000		27,191			12/21/22		—		(848	)
Mexican Peso		JPHQ		Buy		15,930,962		788,821			12/21/22		33,731		—
Mexican Peso		JPHQ		Sell		16,071,424		785,543			12/21/22		—		(44,261	)
Polish Zloty		DBAB		Sell		269,669		53,858			12/21/22		—		(5,899	)
Euro		JPHQ		Sell		69,776		334,605	PLN		12/21/22		3,576		(2,182	)
Polish Zloty		JPHQ		Buy		969,999		201,077			12/21/22		13,870		—
Polish Zloty		JPHQ		Sell		700,330		144,487			12/21/22		—		(10,703	)
South African Rand		JPHQ		Sell		12,135,743		691,550			12/21/22		—		(9,403	)
Swedish Krona		JPHQ		Sell		20,000		1,770			12/21/22		—		(138	)
Swiss Franc		JPHQ		Buy		2,150,000		2,221,682			12/21/22		57,541		—
Swiss Franc		JPHQ		Sell		2,350,000		2,434,117			12/21/22		—		(57,126	)
Euro		JPHQ		Sell		770,000		865,449			3/31/23		56,901		—
Euro		JPHQ		Sell		970,000		1,135,928			3/31/25		80,436		—
Total Forward Exchange Contracts												$	329,012	$	(284,239	)
Net unrealized appreciation (depreciation)												$	44,773

* In U.S. dollars unless otherwise indicated.

^a May be comprised of multiple contracts with the same counterparty, currency and settlement date.

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

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

Credit Default Swap Contracts
Description	Annual Payment Rate Received (Paid)		Payment Frequency			Maturity Date		Notional Amounta			Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
Centrally Cleared Swap Contracts
Contracts to Buy Protectionc
Single Name
Government of South Africa		(1.00)%		Quarterly			12/20/27		271,000		$	16,788		$	27,460		$	(10,672	)
Traded Index
CDX.NA.HY.39		(5.00)%		Quarterly			12/20/27		2,000,000			(37,517	)		40,450			(77,967	)
Total Centrally Cleared Swap Contracts											$	(20,729	)	$	67,910		$	(88,639	)
OTC Swap Contracts
Contracts to Buy Protectionc
Single Name					Counterparty
Air France-KLM		(5.00)%		Quarterly	CITI		12/20/27		5,000	EUR		325			543			(218	)
Air France-KLM		(5.00)%		Quarterly	CITI		12/20/27		6,000	EUR		390			638			(248	)
Air France-KLM		(5.00)%		Quarterly	CITI		12/20/27		12,000	EUR		779			917			(138	)
Air France-KLM		(5.00)%		Quarterly	CITI		12/20/27		14,000	EUR		(3,588	)		1,408			(4,996	)
Air France-KLM		(5.00)%		Quarterly	CITI		12/20/27		23,000	EUR		1,494			1,856			(362	)
Ally Financial Inc.		(5.00)%		Quarterly	BNPP		12/20/27		138,000			(13,526	)		(10,520	)		(3,006	)
Ally Financial Inc.		(5.00)%		Quarterly	BNPP		12/20/27		42,000			(4,116	)		(3,377	)		(739	)
Ally Financial Inc.		(5.00)%		Quarterly	BNPP		12/20/27		24,000			(2,352	)		(2,090	)		(262	)
Ally Financial Inc.		(5.00)%		Quarterly	CITI		12/20/24		40,000			(2,786	)		(2,008	)		(778	)
Ally Financial Inc.		(5.00)%		Quarterly	GSCO		12/20/27		119,000			(11,664	)		(9,727	)		(1,937	)
Ally Financial Inc.		(5.00)%		Quarterly	GSCO		12/20/27		15,000			(1,470	)		(1,342	)		(128	)
Ally Financial Inc.		(5.00)%		Quarterly	GSCO		12/20/27		16,000			(1,568	)		(1,263	)		(305	)
Ally Financial Inc.		(5.00)%		Quarterly	GSCO		12/20/27		12,000			(1,176	)		(1,145	)		(31	)
Ally Financial Inc.		(5.00)%		Quarterly	GSCO		12/20/27		7,000			(686	)		(621	)		(65	)
Ally Financial Inc.		(5.00)%		Quarterly	JPHQ		12/20/27		31,000			(3,039	)		(2,704	)		(335	)
Ally Financial Inc.		(5.00)%		Quarterly	MSCS		12/20/24		34,000			(2,369	)		(1,698	)		(671	)
American Airlines Group Inc.		(5.00)%		Quarterly	BZWS		6/20/23		48,000			(552	)		892			(1,444	)
American Airlines Group Inc.		(5.00)%		Quarterly	BZWS		12/20/23		15,000			25			218			(193	)
American Airlines Group Inc.		(5.00)%		Quarterly	BZWS		12/20/23		14,000			24			378			(354	)
American Airlines Group Inc.		(5.00)%		Quarterly	BZWS		12/20/23		41,000			69			945			(876	)
American Airlines Group Inc.		(5.00)%		Quarterly	BZWS		6/20/24		42,000			1,322			1,361			(39	)
American Airlines Group Inc.		(5.00)%		Quarterly	BZWS		6/20/24		25,000			787			2,771			(1,984	)
American Airlines Group Inc.		(5.00)%		Quarterly	BZWS		6/20/24		84,000			2,643			5,462			(2,819	)
American Airlines Group Inc.		(5.00)%		Quarterly	BZWS		12/20/24		20,000			1,158			2,785			(1,627	)
American Airlines Group Inc.		(5.00)%		Quarterly	BZWS		6/20/25		16,000			1,480			1,967			(487	)
American Airlines Group Inc.		(5.00)%		Quarterly	BZWS		6/20/25		64,000			5,920			7,469			(1,549	)
American Airlines Group Inc.		(5.00)%		Quarterly	BZWS		12/20/26		4,000			609			513			96
American Airlines Group Inc.		(5.00)%		Quarterly	BZWS		12/20/26		15,000			2,285			1,032			1,253

franklintempleton.com Semiannual Report 29

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

Credit Default Swap Contracts (continued)
Description	Annual Payment Rate Received (Paid)		Payment Frequency		Counterparty		Maturity Date		Notional Amounta			Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
American Airlines Group Inc.		(5.00)%		Quarterly		CITI		6/20/26		4,000		$	553		$	274		$	279
American Airlines Group Inc.		(5.00)%		Quarterly		CITI		6/20/26		28,000			3,871			2,074			1,797
American Airlines Group Inc.		(5.00)%		Quarterly		GSCO		12/20/23		12,000			20			190			(170	)
American Airlines Group Inc.		(5.00)%		Quarterly		GSCO		12/20/23		17,000			28			267			(239	)
American Airlines Group Inc.		(5.00)%		Quarterly		GSCO		12/20/23		20,000			34			909			(875	)
American Airlines Group Inc.		(5.00)%		Quarterly		GSCO		12/20/23		33,000			55			2,047			(1,992	)
American Airlines Group Inc.		(5.00)%		Quarterly		GSCO		6/20/24		10,000			314			814			(500	)
American Airlines Group Inc.		(5.00)%		Quarterly		GSCO		6/20/24		37,000			1,164			3,307			(2,143	)
American Airlines Group Inc.		(5.00)%		Quarterly		GSCO		12/20/24		9,000			521			1,316			(795	)
American Airlines Group Inc.		(5.00)%		Quarterly		JPHQ		12/20/25		27,000			3,311			3,361			(50	)
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		JPHQ		6/20/25		11,000			(570	)		(501	)		(69	)
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		JPHQ		6/20/27		26,000			(655	)		(326	)		(329	)
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		MSCS		6/20/25		19,000			(983	)		(733	)		(250	)
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		MSCS		6/20/27		52,000			(1,310	)		(709	)		(601	)
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		MSCS		6/20/27		26,000			(655	)		(421	)		(234	)
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		MSCS		6/20/27		26,000			(655	)		272			(927	)
Arcelormittal SA		(5.00)%		Quarterly		BOFA		12/20/27		25,000	EUR		(3,422	)		(1,580	)		(1,842	)
Arcelormittal SA		(5.00)%		Quarterly		JPHQ		12/20/27		51,000	EUR		(6,981	)		(3,245	)		(3,736	)
Arcelormittal SA		(5.00)%		Quarterly		JPHQ		12/20/27		12,000	EUR		(1,643	)		(1,041	)		(602	)
Arcelormittal SA		(5.00)%		Quarterly		JPHQ		12/20/27		12,000	EUR		(1,643	)		(965	)		(678	)
Arcelormittal SA		(5.00)%		Quarterly		JPHQ		12/20/27		12,000	EUR		(1,643	)		(946	)		(697	)
BMW AG		(1.00)%		Quarterly		BZWS		12/20/27		54,000	EUR		(852	)		700			(1,552	)
BMW AG		(1.00)%		Quarterly		MSCS		12/20/27		54,000	EUR		(852	)		557			(1,409	)
Carnival Corp.		(1.00)%		Quarterly		BZWS		12/20/26		12,000			3,902			4,774			(872	)
Carnival Corp.		(1.00)%		Quarterly		BZWS		12/20/26		12,000			3,902			4,832			(930	)
Carnival Corp.		(1.00)%		Quarterly		BZWS		12/20/26		12,000			3,902			4,858			(956	)
Carnival Corp.		(1.00)%		Quarterly		BZWS		12/20/26		24,000			7,804			8,414			(610	)
Carnival Corp.		(1.00)%		Quarterly		BZWS		12/20/26		24,000			7,804			9,578			(1,774	)
Carnival Corp.		(1.00)%		Quarterly		CITI		12/20/26		12,000			3,902			4,107			(205	)
Ceconomy AG		(1.00)%		Quarterly		MSCS		6/20/23		2,000	EUR		82			193			(111	)
Ceconomy AG		(1.00)%		Quarterly		MSCS		12/20/23		4,000	EUR		385			472			(87	)
Ceconomy AG		(1.00)%		Quarterly		MSCS		12/20/23		4,000	EUR		385			473			(88	)
Ceconomy AG		(1.00)%		Quarterly		MSCS		12/20/23		4,000	EUR		385			494			(109	)
Ceconomy AG		(1.00)%		Quarterly		MSCS		12/20/23		8,000	EUR		770			892			(122	)
Compagnie de Saint-Gobain SA		(1.00)%		Quarterly		CITI		12/20/27		67,000	EUR		(108	)		1,574			(1,682	)

30 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

Credit Default Swap Contracts (continued)
Description	Annual Payment Rate Received (Paid)		Payment Frequency		Counterparty		Maturity Date		Notional Amounta			Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
Compagnie de Saint-Gobain SA		(1.00)%		Quarterly		CITI		12/20/27		112,000	EUR	$	(180	)	$	2,626		$	(2,806	)
Daimler Truck Holding AG		(1.00)%		Quarterly		GSCO		12/20/27		56,000	EUR		(602	)		851			(1,453	)
Ford Motor Credit Co. LLC		(5.00)%		Quarterly		CITI		12/20/27		86,000			(8,321	)		(4,984	)		(3,337	)
Ford Motor Credit Co. LLC		(5.00)%		Quarterly		GSCO		12/20/27		1,000			(96	)		(62	)		(34	)
Ford Motor Credit Co. LLC		(5.00)%		Quarterly		MSCS		12/20/27		29,000			(2,805	)		(2,277	)		(528	)
Ford Motor Credit Co. LLC		(5.00)%		Quarterly		MSCS		12/20/27		12,000			(1,161	)		(495	)		(666	)
Government of Italy		(1.00)%		Quarterly		BOFA		6/20/24		233,000			(2,033	)		759			(2,792	)
Government of Italy		(1.00)%		Quarterly		BOFA		6/20/24		140,000			(1,221	)		1,024			(2,245	)
Government of Japan		(1.00)%		Quarterly		BZWS		12/20/27		58,000			(2,128	)		(1,805	)		(323	)
Government of Japan		(1.00)%		Quarterly		BZWS		12/20/27		47,000			(1,724	)		(1,457	)		(267	)
Government of Japan		(1.00)%		Quarterly		BZWS		12/20/27		24,000			(880	)		(742	)		(138	)
Government of Japan		(1.00)%		Quarterly		GSCO		12/20/27		82,000			(3,007	)		(2,516	)		(491	)
Government of Japan		(1.00)%		Quarterly		GSCO		12/20/27		47,000			(1,724	)		(1,458	)		(266	)
Government of Japan		(1.00)%		Quarterly		GSCO		12/20/27		35,000			(1,284	)		(1,205	)		(79	)
Government of Japan		(1.00)%		Quarterly		GSCO		12/20/27		24,000			(880	)		(737	)		(143	)
Groupe Casino		(5.00)%		Quarterly		BZWS		12/20/22		80,000	EUR		(618	)		434			(1,052	)
Groupe Casino		(5.00)%		Quarterly		JPHQ		12/20/22		10,000	EUR		(77	)		55			(132	)
HP Inc.		(1.00)%		Quarterly		GSCO		12/20/27		60,000			521			2,437			(1,916	)
HP Inc.		(1.00)%		Quarterly		MSCS		12/20/27		65,000			564			2,279			(1,715	)
ICE Ltd.		(5.00)%		Quarterly		JPHQ		6/20/25		10,000	EUR		1,509			352			1,157
Iceland Bondco		(5.00)%		Quarterly		GSCO		6/20/25		15,000	EUR		2,264			2,162			102
JFE Holdings Inc.		(1.00)%		Quarterly		BZWS		12/20/27		4,732,000	JPY		(864	)		(334	)		(530	)
JFE Holdings Inc.		(1.00)%		Quarterly		GSCO		12/20/27		4,732,000	JPY		(864	)		(639	)		(225	)
JFE Holdings Inc.		(1.00)%		Quarterly		GSCO		12/20/27		2,366,000	JPY		(432	)		(233	)		(199	)
JFE Holdings Inc.		(1.00)%		Quarterly		GSCO		12/20/27		2,366,000	JPY		(432	)		(183	)		(249	)
Kawasaki Heavy Industries Ltd.		(1.00)%		Quarterly		BZWS		12/20/27		4,706,000	JPY		(1,112	)		(725	)		(387	)
Kawasaki Heavy Industries Ltd.		(1.00)%		Quarterly		BZWS		12/20/27		2,353,000	JPY		(556	)		(460	)		(96	)
Kawasaki Heavy Industries Ltd.		(1.00)%		Quarterly		BZWS		12/20/27		2,353,000	JPY		(556	)		(367	)		(189	)
Kawasaki Heavy Industries Ltd.		(1.00)%		Quarterly		BZWS		12/20/27		2,353,000	JPY		(556	)		(288	)		(268	)
Kawasaki Heavy Industries Ltd.		(1.00)%		Quarterly		GSCO		12/20/27		2,353,000	JPY		(556	)		(463	)		(93	)
Kobe Steel Ltd.		(1.00)%		Quarterly		BZWS		12/20/27		1,273,000	JPY		(5	)		18			(23	)
Kobe Steel Ltd.		(1.00)%		Quarterly		JPHQ		12/20/27		2,383,000	JPY		(9	)		42			(51	)
Kohl’s Corp.		(1.00)%		Quarterly		GSCO		6/20/26		41,000			2,990			595			2,395
Lanxess AG		(1.00)%		Quarterly		GSCO		12/20/27		36,000	EUR		1,529			2,527			(998	)
Lanxess AG		(1.00)%		Quarterly		JPHQ		12/20/27		181,000	EUR		7,690			13,921			(6,231	)
Lloyds Bank PLC		(1.00)%		Quarterly		BZWS		12/20/27		40,000	EUR		975			2,380			(1,405	)
Lloyds Bank PLC		(1.00)%		Quarterly		CITI		12/20/27		12,000	EUR		292			569			(277	)
Lloyds Bank PLC		(1.00)%		Quarterly		CITI		12/20/27		107,000	EUR		2,608			4,916			(2,308	)
Lloyds Bank PLC		(1.00)%		Quarterly		JPHQ		12/20/27		14,000	EUR		341			1,057			(716	)
Louis Dreyfus Co.		(5.00)%		Quarterly		JPHQ		12/20/27		26,000	EUR		(4,575	)		(3,140	)		(1,435	)
Marubeni Corp.		(1.00)%		Quarterly		CITI		6/20/25		3,711,000	JPY		(613	)		582			(1,195	)

franklintempleton.com Semiannual Report 31

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

Credit Default Swap Contracts (continued)
Description	Annual Payment Rate Received (Paid)		Payment Frequency		Counterparty		Maturity Date		Notional Amounta			Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
Mitsui O.S.K. Lines Ltd.		(1.00)%		Quarterly		BZWS		12/20/27		2,509,000	JPY	$	(196	)	$	(134	)	$	(62	)
Mitsui O.S.K. Lines Ltd.		(1.00)%		Quarterly		GSCO		12/20/27		1,175,000	JPY		(91	)		(66	)		(25	)
Mitsui O.S.K. Lines Ltd.		(1.00)%		Quarterly		GSCO		12/20/27		2,350,000	JPY		(183	)		(24	)		(159	)
Mitsui O.S.K. Lines Ltd.		(1.00)%		Quarterly		GSCO		12/20/27		2,350,000	JPY		(183	)		–			(183	)
Mitsui O.S.K. Lines Ltd.		(1.00)%		Quarterly		GSCO		12/20/27		1,175,000	JPY		(92	)		19			(111	)
Mitsui O.S.K. Lines Ltd.		(1.00)%		Quarterly		GSCO		12/20/27		2,350,000	JPY		(183	)		39			(222	)
Mitsui O.S.K. Lines Ltd.		(1.00)%		Quarterly		JPHQ		12/20/27		2,350,000	JPY		(183	)		(149	)		(34	)
Next PLC		(1.00)%		Quarterly		BZWS		12/20/27		9,000	EUR		406			635			(229	)
Next PLC		(1.00)%		Quarterly		CITI		12/20/27		80,000	EUR		3,611			5,644			(2,033	)
Next PLC		(1.00)%		Quarterly		GSCO		12/20/27		32,000	EUR		1,444			2,270			(826	)
Nippon Paper Industries Co. Ltd.		(1.00)%		Quarterly		BZWS		12/20/27		718,000	JPY		217			332			(115	)
Nippon Paper Industries Co. Ltd.		(1.00)%		Quarterly		BZWS		12/20/27		5,744,000	JPY		1,735			2,152			(417	)
Nippon Paper Industries Co. Ltd.		(1.00)%		Quarterly		JPHQ		12/20/27		2,872,000	JPY		867			1,382			(515	)
Nippon Steel Corp.		(1.00)%		Quarterly		BZWS		12/20/27		5,915,000	JPY		(1,201	)		(620	)		(581	)
Nippon Steel Corp.		(1.00)%		Quarterly		BZWS		12/20/27		2,366,000	JPY		(480	)		(290	)		(190	)
Nippon Steel Corp.		(1.00)%		Quarterly		GSCO		12/20/27		2,366,000	JPY		(480	)		(405	)		(75	)
Nippon Steel Corp.		(1.00)%		Quarterly		MSCS		12/20/27		4,732,000	JPY		(961	)		(728	)		(233	)
Rakuten Group Inc.		(1.00)%		Quarterly		BZWS		12/20/24		2,261,000	JPY		1,040			364			676
Rakuten Group Inc.		(1.00)%		Quarterly		CITI		12/20/24		5,734,000	JPY		2,639			1,602			1,037
Rakuten Group Inc.		(1.00)%		Quarterly		JPHQ		12/20/24		2,867,000	JPY		1,319			741			578
Rakuten Group Inc.		(1.00)%		Quarterly		JPHQ		6/20/27		158,000	JPY		145			116			29
Rakuten Group Inc.		(1.00)%		Quarterly		JPHQ		6/20/27		481,000	JPY		441			355			86
Rakuten Group Inc.		(1.00)%		Quarterly		JPHQ		6/20/27		1,491,000	JPY		1,366			832			534
Rakuten Group Inc.		(1.00)%		Quarterly		JPHQ		12/20/27		1,420,000	JPY		1,409			1,188			221
Simon Property Group LP		(1.00)%		Quarterly		BNPP		12/20/27		52,000			34			805			(771	)
Simon Property Group LP		(1.00)%		Quarterly		BZWS		12/20/27		84,000			54			1,445			(1,391	)
Societe Generale SA		(1.00)%		Quarterly		BZWS		12/20/23		200,000	EUR		(1,392	)		942			(2,334	)
Softbank Group Corp.		(1.00)%		Quarterly		BZWS		6/20/27		777,000	JPY		617			764			(147	)
Softbank Group Corp.		(1.00)%		Quarterly		BZWS		6/20/27		1,331,000	JPY		1,058			1,242			(184	)
Softbank Group Corp.		(1.00)%		Quarterly		BZWS		6/20/27		1,503,000	JPY		1,194			1,412			(218	)
Softbank Group Corp.		(1.00)%		Quarterly		BZWS		6/20/27		4,972,000	JPY		3,952			4,731			(779	)
Stellantis NV		(5.00)%		Quarterly		BZWS		12/20/27		14,000	EUR		(2,292	)		(1,481	)		(811	)
Stellantis NV		(5.00)%		Quarterly		CITI		12/20/27		55,000	EUR		(9,005	)		(5,800	)		(3,205	)
Stellantis NV		(5.00)%		Quarterly		CITI		12/20/27		12,000	EUR		(1,964	)		(1,405	)		(559	)
Stena AB		(5.00)%		Quarterly		BZWS		6/20/24		15,000	EUR		77			(350	)		427
Stena AB		(5.00)%		Quarterly		GSCO		6/20/24		3,000	EUR		15			25			(10	)
Stena AB		(5.00)%		Quarterly		GSCO		6/20/24		5,000	EUR		26			42			(16	)
Stena AB		(5.00)%		Quarterly		GSCO		12/20/24		92,000	EUR		690			(3,833	)		4,523
Stena AB		(5.00)%		Quarterly		GSCO		6/20/27		3,000	EUR		107			(6	)		113
Stena AB		(5.00)%		Quarterly		JPHQ		6/20/27		2,000	EUR		72			20			52
Stena AB		(5.00)%		Quarterly		JPHQ		6/20/27		6,000	EUR		215			69			146
Stena AB		(5.00)%		Quarterly		JPHQ		6/20/27		28,000	EUR		1,003			166			837
Stena AB		(5.00)%		Quarterly		JPHQ		6/20/27		10,000	EUR		358			222			136
Stena AB		(5.00)%		Quarterly		JPHQ		6/20/27		35,000	EUR		1,255			269			986
Stena AB		(5.00)%		Quarterly		JPHQ		6/20/27		15,000	EUR		538			942			(404	)
TDC Holding		(1.00)%		Quarterly		BNPP		6/20/27		60,000	EUR		215			3,106			(2,891	)
U.S. Steel Corp.		(5.00)%		Quarterly		BZWS		12/20/27		5,000			(21	)		215			(236	)
U.S. Steel Corp.		(5.00)%		Quarterly		BZWS		12/20/27		11,000			(48	)		543			(591	)

32 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

Credit Default Swap Contracts (continued)
Description	Annual Payment Rate Received (Paid)		Payment Frequency		Counterparty		Maturity Date		Notional Amounta		Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
U.S. Steel Corp.		(5.00)%		Quarterly		GSCO		12/20/27		11,000	$	(48	)	$	224		$	(272	)
U.S. Steel Corp.		(5.00)%		Quarterly		MSCS		12/20/27		12,000		(52	)		179			(231	)
U.S. Steel Corp.		(5.00)%		Quarterly		MSCS		12/20/27		12,000		(52	)		590			(642	)
U.S. Steel Corp.		(5.00)%		Quarterly		MSCS		12/20/27		12,000		(52	)		638			(690	)
U.S. Steel Corp.		(5.00)%		Quarterly		MSCS		12/20/27		23,000		(100	)		729			(829	)
Contracts to Sell Protectionc,d
Single Name
American Axle & Manufacturing Inc.		5.00%		Quarterly		CITI		6/20/25		17,000		881			772			109			BB-
American Axle & Manufacturing Inc.		5.00%		Quarterly		GSCO		12/20/27		13,000		197			586			(389	)		BB-
American Axle & Manufacturing Inc.		5.00%		Quarterly		MSCS		6/20/25		5,000		260			237			23			BB-
American Axle & Manufacturing Inc.		5.00%		Quarterly		MSCS		6/20/25		9,000		467			329			138			BB-
American Axle & Manufacturing Inc.		5.00%		Quarterly		MSCS		6/20/25		52,000		2,693			2,266			427			BB-
Calpine Corp.		5.00%		Quarterly		JPHQ		12/20/27		3,000		143			(29	)		172			BB-
Calpine Corp.		5.00%		Quarterly		JPHQ		12/20/27		53,000		2,532			201			2,331			BB-
Kohl’s Corp.		1.00%		Quarterly		JPHQ		6/20/26		41,000		(2,989	)		(2,630	)		(359	)		BB+
United Airlines Inc.		5.00%		Quarterly		BZWS		12/20/27		11,000		(360	)		(1,179	)		819			B+
United Airlines Inc.		5.00%		Quarterly		GSCO		12/20/27		11,000		(360	)		(927	)		567			B+
Total OTC Swap Contracts											$	(14,724	)	$	77,284		$	(92,008	)
Total Credit Default Swap Contracts											$	(35,453	)	$	145,194		$	(180,647	)

^a 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.

^b Based on Standard and Poor’s (S&P) Rating for single name swaps.

^c 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.

^d The Fund enters contracts to sell protection to create a long credit position.

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

Interest Rate Swap Contracts
Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts
Receive Floating rate 1 Year-SOFR Pay Fixed rate 1.36%		Annually		3/08/24		1,000,000		$	41,829
Receive Floating Banxico Mexico 1 Month rate Pay Fixed rate 9.35%		Monthly		12/17/25		4,606,860	MXN		(1,484	)
Receive Floating rate 6-Month-WIBOR Pay Fixed rate 6.025%		Semi-Annually		12/21/27		640,183	PLN		(941	)
Receive Floating rate 3 Month USD-LIBOR Pay Fixed rate 2.25%		Quarterly		6/20/28		1,100,000			9,787
Receive Floating rate 1 Year-SOFR Pay Fixed rate 1.52%		Annually		3/08/32		1,000,000			146,650
Total Interest Rate Swap Contracts								$	195,841

* In U.S. dollars unless otherwise indicated.

franklintempleton.com Semiannual Report 33

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

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

Total Return Swap Contracts
Underlying Instrument	Financing Rate	Payment Frequency		Counterparty		Maturity Date		Notional Value		Value/Unrealized Appreciation (Depreciation)
OTC Swap Contracts
Equity Contracts – Longa
Energy Transfer LP	1-Month LIBOR + 0.90%		Monthly		GSCO		1/26/23	$	30,607	$	2,025
Energy Transfer LP	1-Month LIBOR + 0.90%		Monthly		BZWS		2/14/23		43,315		2,843
Energy Transfer LP	1-Month LIBOR + 0.50%		Monthly		CITI		10/18/23		24,712		1,456
Total - Total Return Swap Contracts										$	6,324

^a The Fund receives the total return on the underlying instrument and pays a variable financing rate.

See Note 12 regarding other derivative information

See Abbreviations on page 53.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FINANCIAL STATEMENTS

Statement of Assets and Liabilities

November 30, 2022 (unaudited)

Franklin K2 Long Short Credit Fund

Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	73,545,878
Cost – Unaffiliated repurchase agreements		467,501
Value – Unaffiliated issuers	$	66,589,810
Value – Unaffiliated repurchase agreements		467,501
Cash		5,850
Restricted cash for OTC derivatives (Note 1e)		120,000
Foreign currency, at value (cost $1,898,200)		1,949,346
Receivables:
Investment securities sold		532,296
Capital shares sold		13,595
Dividends and interest		560,586
Deposits with brokers for:
Securities sold short		3,656,228
OTC derivative contracts		240,000
Futures contracts		79,200
Centrally cleared swap contracts		235,704
Due from brokers		234,745
Variation margin on centrally cleared swap contracts		30,639
OTC swap contracts (upfront payments $197,842)		168,872
Unrealized appreciation on OTC forward exchange contracts		329,012
Unrealized appreciation on OTC swap contracts		28,370
Total assets		75,241,754
Liabilities:
Payables:
Investment securities purchased		1,094,576
Capital shares redeemed		59,151
Management fees		27,919
Distribution fees		4,924
Trustees’ fees and expenses		1,076
Transfer agent fees		19,453
Deposits from brokers for:
OTC derivative contracts		120,000
Due to brokers		1,373,128
Variation margin on futures contracts		6,731
OTC swap contracts (upfront receipts $97,710)		91,588
Options written, at value (premiums received $171,745)		228,714
Securities sold short, at value (proceeds $3,979,971)		3,857,624
Unrealized depreciation on OTC forward exchange contracts		284,239
Unrealized depreciation on OTC swap contracts		114,054
Unrealized depreciation on unfunded loan commitments (Note 11)		26,697
Accrued expenses and other liabilities		94,940
Total liabilities		7,404,814
Net assets, at value	$	67,836,940
Net assets consist of:
Paid-in capital	$	78,208,714
Total distributable earnings (loss)		(10,371,774	)
Net assets, at value	$	67,836,940

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FINANCIAL STATEMENTS

Statement of Assets and Liabilities (continued)

November 30, 2022 (unaudited)

Franklin K2 Long Short Credit Fund

Class A:
Net assets, at value	$	16,297,075
Shares outstanding		1,739,920
Net asset value per sharea	$	9.37
Maximum offering price per share (net asset value per share ÷ 94.50%)	$	9.92
Class C:
Net assets, at value	$	1,797,307
Shares outstanding		193,821
Net asset value and maximum offering price per sharea	$	9.27
Class R:
Net assets, at value	$	242,194
Shares outstanding		26,114
Net asset value and maximum offering price per share	$	9.27
Class R6:
Net assets, at value	$	14,027
Shares outstanding		1,494
Net asset value and maximum offering price per share	$	9.39
Advisor Class:
Net assets, at value	$	49,486,337
Shares outstanding		5,287,890
Net asset value and maximum offering price per share	$	9.36

^aRedemption price is equal to net asset value less contingent deferred sales charges, if applicable.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FINANCIAL STATEMENTS

Statement of Operations

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

Franklin K2 Long Short Credit Fund

Investment income:
Dividends:
Unaffiliated issuers	$	141,226
Interest: (net of foreign taxes)~
Unaffiliated issuers		2,229,391
Total investment income		2,370,617
Expenses:
Management fees (Note 3a)		580,662
Distribution fees: (Note 3c)
Class A		20,965
Class C		10,266
Class R		575
Transfer agent fees: (Note 3e)
Class A		10,869
Class C		1,323
Class R		150
Class R6		10
Advisor Class		37,219
Custodian fees (Note 4)		37,964
Reports to shareholders fees		15,995
Registration and filing fees		49,146
Professional fees		116,198
Trustees’ fees and expenses		13,564
Dividends and interest on securities sold short		117,729
Security borrowing fees		2,267
Other		12,572
Total expenses		1,027,474
Expense reductions (Note 4)		(487	)
Expenses waived/paid by affiliates (Note 3f)		(275,170	)
Net expenses		751,817
Net investment income		1,618,800
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(4,736,539	)
Written options		282,764
Foreign currency transactions		(123,416	)
Forward exchange contracts		272,404
Futures contracts		243,651
Securities sold short		321,307
Swap contracts		33,424
Net realized gain (loss)		(3,706,405	)
Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(1,576,947	)
Written options		(212,032	)
Translation of other assets and liabilities denominated in foreign currencies		40,507
Forward exchange contracts		(41,276	)
Futures contracts		(121,597	)
Securities sold short		(161,667	)
Swap contracts		(72,287	)
Net change in unrealized appreciation (depreciation)		(2,145,299	)
Net realized and unrealized gain (loss)		(5,851,704	)
Net increase (decrease) in net assets resulting from operations	$	(4,232,904	)
~Foreign taxes withheld on interest	$	150

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FINANCIAL STATEMENTS

Statements of Changes in Net Assets

Franklin K2 Long Short Credit Fund

	Six Months Ended November 30, 2022 (unaudited)			Year Ended May 31, 2022
Increase (decrease) in net assets:
Operations:
Net investment income	$	1,618,800		$	2,593,897
Net realized gain (loss)		(3,706,405	)		121,020
Net change in unrealized appreciation (depreciation)		(2,145,299	)		(6,606,394	)
Net increase (decrease) in net assets resulting from operations		(4,232,904	)		(3,891,477	)
Distributions to shareholders:
Class A		(346,186	)		(783,078	)
Class C		(17,398	)		(70,593	)
Class R		(4,062	)		(6,238	)
Class R6		(337	)		(576	)
Advisor Class		(1,418,415	)		(2,881,103	)
Total distributions to shareholders		(1,786,398	)		(3,741,588	)
Capital share transactions: (Note 2)
Class A		43,416			(7,496,625	)
Class C		(651,038	)		(143,137	)
Class R		40,328			39,422
Class R6		216			10,364
Advisor Class		(12,635,120	)		(4,083,126	)
Total capital share transactions		(13,202,198	)		(11,673,102	)
Net increase (decrease) in net assets		(19,221,500	)		(19,306,167	)
Net assets:
Beginning of period		87,058,440			106,364,607
End of period	$	67,836,940		$	87,058,440

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

FRANKLIN K2 LONG SHORT CREDIT FUND

Notes to Financial Statements (unaudited)

1. Organization and Significant Accounting Policies

Franklin Alternative Strategies Funds (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of two separate funds and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). Franklin K2 Long Short Credit Fund (Fund) is included in this report. The Fund offers five classes of shares: Class A, Class C, Class R, Class R6 and Advisor Class. Class C shares automatically convert to Class A shares on a monthly basis, after they have been held for 8 years. Each class of shares may differ by its initial sales load, contingent deferred sales charges, voting rights on matters affecting a single class, its exchange privilege and fees due to differing arrangements for distribution and transfer agent fees.

Effective January 17, 2023, Franklin K2 Long Short Credit Fund was renamed K2 Long Short Credit Fund.

The following summarizes the Fund’s significant accounting policies.

a. Financial Instrument Valuation

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

Equity securities and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on

which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

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

Investments in open-end mutual funds are valued at the closing NAV. Investments in repurchase agreements are valued at cost, which approximates fair value.

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

The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which

franklintempleton.com Semiannual Report 39

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Fund’s business day. Events can occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the value of the Funds’ portfolio securities to the latest indications of fair value at 4 p.m. Eastern time. At November 30, 2022, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”). See the Fair Value Measurements note for more information.

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

b. Foreign Currency Translation

Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Fund may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of

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

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

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

c. Joint Repurchase Agreement

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

40 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

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

d. Derivative Financial Instruments

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

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

termination by the counterparty may result in an immediate payment by the Fund of any net liability owed to that counterparty under the ISDA agreement.

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

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

The Fund entered into OTC forward exchange contracts primarily to manage and/or gain exposure to certain foreign currencies. A forward exchange contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date.

The Fund entered into credit default swap contracts primarily to manage and/or gain exposure to credit risk. A credit default swap is an agreement between the Fund and a counterparty whereby the buyer of the contract receives credit protection and the seller of the contract guarantees the credit worthiness

franklintempleton.com Semiannual Report 41

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

1. Organization and Significant Accounting Policies (continued)

d. Derivative Financial Instruments (continued)

of a referenced debt obligation. These agreements may be privately negotiated in the over-the-counter market (OTC credit default swaps) or may be executed in a multilateral trade facility platform, such as a registered exchange (centrally cleared credit default swaps). The underlying referenced debt obligation may be a single issuer of corporate or sovereign debt, a credit index, a basket of issuers or indices, or a tranche of a credit index or basket of issuers or indices. In the event of a default of the underlying referenced debt obligation, the buyer is entitled to receive the notional amount of the credit default swap contract from the seller in exchange for the referenced debt obligation, a net settlement amount equal to the notional amount of the credit default swap less the recovery value of the referenced debt obligation, or other agreed upon amount. For centrally cleared credit default swaps, required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statement of Assets and Liabilities. Over the term of the contract, the buyer pays the seller a periodic stream of payments, provided that no event of default has occurred. Such periodic payments are accrued daily as an unrealized appreciation or depreciation until the payments are made, at which time they are realized. Upfront payments and receipts are reflected in the Statement of Assets and Liabilities and represent compensating factors between stated terms of the credit default swap agreement and prevailing market conditions (credit spreads and other relevant factors). These upfront payments and receipts are amortized over the term of the contract as a realized gain or loss in the Statement of Operations.

The Fund entered into interest rate swap contracts primarily to manage and/or gain exposure to interest rate risk. An interest rate swap is an agreement between the Fund and a counterparty to exchange cash flows based on the difference between two interest rates, applied to a notional amount. These agreements may be privately negotiated in the over-the-counter market (OTC interest rate swaps) or may be executed on a registered exchange (centrally cleared interest rate swaps). For centrally cleared interest rate swaps, required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statement of Assets and Liabilities. Over the term of the contract, contractually required payments to be paid and to be received are accrued

daily and recorded as unrealized appreciation or depreciation until the payments are made, at which time they are realized.

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

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

See Note 12 regarding other derivative information.

e. Restricted Cash

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

f. Securities Sold Short

The Fund is engaged in selling securities short, which obligates the Fund to replace a borrowed security with the same security at current fair value. The Fund incurs a loss if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund realizes a gain if the price of the security

42 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

declines between those dates. Gains are limited to the price at which the Fund sold the security short, while losses are potentially unlimited in size.

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

g. Senior Floating Rate Interests

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

h. Income and Deferred Taxes

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

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

The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of November 30, 2022, the Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.

i. Security Transactions, Investment Income, Expenses and Distributions

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

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

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

franklintempleton.com Semiannual Report 43

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

1. Organization and Significant Accounting Policies (continued)

j. Accounting Estimates

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

k. Guarantees and Indemnifications

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

2. Shares of Beneficial Interest

At November 30, 2022, there were an unlimited number of shares authorized (without par value). Transactions in the Fund’s shares were as follows:

	Six Months Ended November 30, 2022						Year Ended May 31, 2022
	Shares			Amount			Shares			Amount
Class A Shares:
Shares solda		105,342		$	1,011,321			454,409		$	4,908,749
Shares issued in reinvestment of distributions		33,167			316,642			55,963			593,769
Shares redeemed		(132,591	)		(1,284,547	)		(1,214,627	)		(12,999,143	)
Net increase (decrease)		5,918		$	43,416			(704,255	)	$	(7,496,625	)
Class C Shares:
Shares sold		2,751		$	26,218			64,353		$	679,579
Shares issued in reinvestment of distributions		1,829			17,369			6,746			70,494
Shares redeemeda		(72,368	)		(694,625	)		(84,628	)		(893,210	)
Net increase (decrease)		(67,788	)	$	(651,038	)		(13,529	)	$	(143,137	)
Class R Shares:
Shares sold		4,561		$	43,433			4,877		$	51,606
Shares issued in reinvestment of distributions		381			3,595			543			5,698
Shares redeemed		(704	)		(6,700	)		(1,669	)		(17,882	)
Net increase (decrease)		4,238		$	40,328			3,751		$	39,422
Class R6 Shares:
Shares sold		—		$	—			907		$	10,000
Shares issued in reinvestment of distributions		22			216			34			364
Shares redeemed		—			—			—			—
Net increase (decrease)		22		$	216			941		$	10,364
Advisor Class Shares:
Shares sold		1,086,724		$	10,494,777			4,721,077		$	50,601,759
Shares issued in reinvestment of distributions		143,406			1,368,833			263,093			2,791,418
Shares redeemed		(2,547,195	)		(24,498,730	)		(5,400,892	)		(57,476,303	)
Net increase (decrease)		(1,317,065	)	$	(12,635,120	)		(416,722	)	$	(4,083,126	)

^aMay include a portion of Class C shares that were automatically converted to Class A.

44 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

3. Transactions with Affiliates

Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Trust are also officers and/or directors of the following subsidiaries:

Subsidiary	Affiliation
K2/D&S Management Co., L.L.C. (K2 Advisors)	Investment manager
Franklin Templeton Services, LLC (FT Services)	Administrative manager
Franklin Distributors, LLC (Distributors)	Principal underwriter
Franklin Templeton Investor Services, LLC (Investor Services)	Transfer agent

a. Management Fees

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

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

Subadvisors

Apollo Credit Management LLC

Benefit Street Partners L.L.C.*

Ellington Global Asset Management, LLC

Emso Asset Management Limited

Medalist Partners, LP

* An affiliate of K2 Advisors.

b. Administrative Fees

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

c. Distribution Fees

The Board has adopted distribution plans for each share class, with the exception of Class R6 and Advisor Class shares, pursuant to Rule 12b-1 under the 1940 Act. Under the Fund’s Class A reimbursement distribution plan, the Fund reimburses Distributors for costs incurred in connection with the servicing, sale and distribution of the Fund’s shares up to the maximum annual plan rate. Under the Class A reimbursement distribution plan, costs exceeding the maximum for the current plan year cannot be reimbursed in subsequent periods. In addition, under the Fund’s Class C and R compensation distribution plans, the Fund pays Distributors for costs incurred in connection with the servicing, sale and distribution of the Fund’s shares up to the maximum annual plan rate for each class. The plan year, for purposes of monitoring compliance with the maximum annual plan rates, is February 1 through January 31.

The maximum annual plan rates, based on the average daily net assets, for each class, are as follows:

Class A	0.25%
Class C	1.00%
Class R	0.50%

franklintempleton.com Semiannual Report 45

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

3. Transactions with Affiliates (continued)

d. Sales Charges/Underwriting Agreements

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. These charges are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. Distributors has advised the Fund of the following commission transactions related to the sales and redemptions of the Fund’s shares for the period:

Sales charges retained net of commissions paid to unaffiliated brokers/dealers	$	250
CDSC retained	$	20

e. Transfer Agent Fees

Each class of shares pays transfer agent fees to Investor Services for its performance of shareholder servicing obligations. Effective October 1, 2022, the fees are based on an annualized asset based fee of 0.016% plus a reduced transaction based fee. Prior to October 1, 2022, the fees were based on an annualized asset based fee of 0.02% plus a transaction based fee. In addition, each class reimburses Investor Services for out of pocket expenses incurred and, except for Class R6, reimburses shareholder servicing fees paid to third parties. These fees are allocated daily based upon their relative proportion of such classes’ aggregate net assets. Class R6 pays Investor Services transfer agent fees specific to that class.

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

f. Waiver and Expense Reimbursements

K2 Advisors has contractually agreed in advance to waive or limit its fees and to assume as their own expense certain expenses otherwise payable by the Fund so that the operating expenses (excluding interest expense, distribution fees, acquired fund fees and expenses, expenses related to securities sold short, and certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations and liquidations) for each class of the Fund do not exceed 1.55% based on the average net assets of each class until September 30, 2023. Total expenses waived or paid are not subject to recapture subsequent to the Fund’s fiscal year end.

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

4. Expense Offset Arrangement

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

5. Income Taxes

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

Cost of investments	$	70,140,266
Unrealized appreciation	$	1,277,578
Unrealized depreciation		(8,274,364	)
Net unrealized appreciation (depreciation)	$	(6,996,786	)

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

46 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

6. Investment Transactions

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

7. Credit Risk and Defaulted Securities

At November 30, 2022, the Fund had 27.0% of its portfolio invested in high yield, senior secured floating rate loans, or other securities rated below investment grade as determined by Nationally Recognized Statistical Credit Ratings Organizations and/or internally, by investment management and unrated securities. These securities may be more sensitive to economic conditions causing greater price volatility and are potentially subject to a greater risk of loss due to default than higher rated securities.

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

At November 30, 2022, the Fund did not hold any distressed company securities for which interest recognition has been discontinued.

8. Geopolitical Risk

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

9. Novel Coronavirus Pandemic

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

10. Restricted Securities

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

At November 30, 2022, investments in restricted securities, excluding securities exempt from registration under the 1933 Act, were as follows:

Shares		Issuer	Acquisition Date		Cost		Value
	923	Acosta Inc.		12/31/19	$	8,144	$	7,569
	1,066	Acosta Inc., cvt. pfd.		12/31/19–11/03/22		50,262		46,797
	Total Restricted Securities (Value is 0.1% of Net Assets)				$	58,406	$	54,366

franklintempleton.com Semiannual Report 47

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

11. Unfunded Loan Commitments

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

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

Borrower	Unfunded Commitment
Athenahealth Group Inc., Term Loan B	$	11,314
Athenahealth Group Inc., Term Loan B		1,923
Bausch Health Cos. Inc., Term Loan B		145,805
Citrix Systems Inc., Term Loan B		12,531
CSC Holdings LLC, Term Loan B		36,807
EPIC Crude Holdings LP, Term Loan B		12,811
Euro Garage Ltd., Term Loan B		18,243
K. Hovnanian Enterprises Inc., Term Loan RC		41,329
Oldcastle BuildingEnvelope Inc., Term Loan RC		57,435
OpenText Corp., Initial Term Loan		36,537
Upfield Group BV, Term Loan RC		147,323
Varsity Brands, Initial Term Loan		3,522
	$	525,580

12. Other Derivative Information

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

Derivative Contracts Not Accounted for as Hedging Instruments	Asset Derivatives				Liability Derivatives
	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Investments in securities, at value	$	4,828	a	Options written, at value	$	163,000
	Variation margin on centrally cleared swap contracts		198,266	b	Variation margin on centrally cleared swap contracts		2,425	b
Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts		329,012		Unrealized depreciation on OTC forward exchange contracts		284,239
	Investments in securities, at value		7,410	a
Credit contracts					Variation margin on centrally cleared swap contracts		88,639	b
	OTC swap contracts (upfront payments)		168,872		OTC swap contracts (upfront receipts)		91,588
	Unrealized appreciation on OTC swap contracts		22,046		Unrealized depreciation on OTC swap contracts		114,054
Equity contracts	Investments in securities, at value		74,952	a	Options written, at value		65,714
	Unrealized appreciation on OTC swap contracts		6,324		Variation margin on futures contracts		38,978	b
Totals		$	811,710			$	848,637

^aPurchased option contracts are included in investments in securities, at value in the Statement of Assets and Liabilities.

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

48 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

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

Derivative Contracts Not Accounted for as Hedging Instruments	Statement of Operations Location	Net Realized Gain (Loss) for the Period			Statement of Operations Location	Net Change in Unrealized Appreciation (Depreciation) for the Period
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:
Interest rate contracts	Investments	$	(23,083	)a	Investments	$	(130,053	)a
	Written options		46,628		Written options		(70,590	)
	Futures contracts		6,176		Futures contracts		(12,653	)
	Swap contracts		342,466		Swap contracts		121,359
Foreign exchange contracts	Investments		297	a	Investments		(1,251	)a
	Written options		(696	)	Written options		385
	Forward exchange contracts		272,404		Forward exchange contracts		(41,276	)
Credit contracts	Swap contracts		(483,104	)	Swap contracts		(186,906	)
Equity contracts	Investments		(310,727	)a	Investments		139,905	a
	Written options		236,832		Written options		(141,827	)
	Futures contracts		237,475		Futures contracts		(108,944	)
	Swap contracts		174,062		Swap contracts		(6,740	)
Totals		$	498,730			$	(438,591	)

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

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

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

	Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
	Assetsa		Liabilitiesa
Derivatives
Forward Exchange Contracts	$	329,012	$	284,239
Options Purchased		14,242		—
Options Written		—		162
Swap Contracts		197,242		205,642
Total	$	540,496	$	490,043

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

franklintempleton.com Semiannual Report 49

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

12. Other Derivative Information (continued)

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

			Amounts Not Offset in the Statement of Assets and Liabilities
	Gross Amounts of Assets Presented in the Statement of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Received		Cash Collateral Receiveda			Net Amount (Not less than zero)
Counterparty
BNPP	$	3,911	$	(3,911	)	$	—	$	—		$	—
BOFA		1,783		(1,783	)		—		—			—
BZWS		83,290		(41,423	)		—		(20,000	)		21,867
CITI		35,856		(35,856	)		—		—			—
DBAB		5,937		(5,937	)		—		—			—
GSCO		42,900		(42,900	)		—		—			—
JPHQ		235,789		(153,928	)		—		(81,861	)		—
JPHQb		119,842		—			—		—			119,842
MSCS		11,188		(11,188	)		—		—			—
Total	$	540,496	$	(296,926	)	$	—	$	(101,861	)	$	141,709

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

			Amounts Not Offset in the Statement of Assets and Liabilities
	Gross Amounts of Liabilities Presented in the Statement of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Pledged		Cash Collateral Pledgeda			Net Amount (Not less than zero)
Counterparty
BNPP	$	23,656	$	(3,911	)	$	—	$	—		$	19,745
BOFA		8,459		(1,783	)		—		—			6,676
BZWS		41,423		(41,423	)		—		—			—
CITI		38,544		(35,856	)		—		(2,688	)		—
DBAB		9,764		(5,937	)		—		—			3,827
GSCO		44,469		(42,900	)		—		(1,569	)		—
JPHQ		153,928		(153,928	)		—		—			—
JPHQb		152,596		—			—		—			152,596
MSCS		17,204		(11,188	)		—		(6,016	)		—
Total	$	490,043	$	(296,926	)	$	—	$	(10,273	)	$	182,844

^a 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.

^b Represents derivatives not subject to an ISDA master agreement.

See Note 1(d) regarding derivative financial instruments.

See Abbreviations on page 53.

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

13. Credit Facility

The Fund, together with other U.S. registered and foreign investment funds (collectively, Borrowers), managed by Franklin Templeton, are borrowers in a joint syndicated senior unsecured credit facility totaling $2.675 billion (Global Credit Facility) which matures on February 3, 2023. This Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests.

Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on any borrowings made by the Fund and other costs incurred by the Fund, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all of the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in other expenses in the Statement of Operations. During the period ended November 30, 2022, the Fund did not use the Global Credit Facility.

14. Fair Value Measurements

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

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

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

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

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

A summary of inputs used as of November 30, 2022, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:

	Level 1		Level 2			Level 3		Total
Assets:
Investments in Securities:a
Equity Investmentsb	$	625,059	$	70,728		$	89,362	$	785,149
Convertible Bonds		–		1,008,441			—		1,008,441
Corporate Bonds and Notes		—		22,237,943			—		22,237,943
Senior Floating Rate Interests		—		483,025			—		483,025
Foreign Government and Agency Securities		—		3,175,473			—		3,175,473
U.S. Government and Agency Securities		—		1,606,678			—		1,606,678
Asset-Backed Securities and Commercial Mortgage-Backed Securities		—		24,135,041			40,328		24,175,369
Options Purchased		77,946		9,244			—		87,190
Short Term Investments		13,030,542		467,501			—		13,498,043
Total Investments in Securities	$	13,733,547	$	53,194,074	c	$	129,690	$	67,057,311
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	329,012		$	—	$	329,012
Swap Contracts		—		226,636			—		226,636
Total Other Financial Instruments	$	—	$	555,648		$	—	$	555,648

franklintempleton.com Semiannual Report 51

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

14. Fair Value Measurements (continued)

	Level 1		Level 2		Level 3			Total
Liabilities:
Other Financial Instruments:
Options Written	$	228,714	$	—	$	—		$	228,714
Securities Sold Shorta		768,464		3,089,160		—			3,857,624
Futures Contracts		38,978		—		—			38,978
Forward Exchange Contracts		—		284,239		—			284,239
Swap Contracts		—		205,118		—			205,118
Unfunded Loan Commitments		—		26,697		—	d		26,697
Total Other Financial Instruments	$	1,036,156	$	3,605,214	$	—		$	4,641,370

^a For detailed categories, see the accompanying Schedule of Investments.

^b Includes common stocks, preferred stocks and convertible preferred stocks as well as other equity interests.

^c Includes foreign securities valued at $25,916, which were categorized as Level 2 as a result of the application of market level fair value procedures. See the Financial Instrument Valuation note for more information.

^d Includes securities determined to have no value at November 30, 2022.

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

15. New Accounting Pronouncements

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

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

16. Subsequent Events

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

52 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

Abbreviations

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

franklintempleton.com Semiannual Report 53

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Shareholder Information

Proxy Voting Policies and Procedures

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

Quarterly Schedule of Investments

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

Householding of Reports and Prospectuses

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

54 Semiannual Report franklintempleton.com

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

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

	Semiannual Report and Shareholder Letter Franklin K2 Long Short Credit Fund
	Investment Manager	Distributor	Shareholder Services
	K2/D&S Management Co., L.L.C.	Franklin Distributors, LLC (800) DIAL BEN®/342-5236 franklintempleton.com	(800) 632-2301
© 2023 Franklin Templeton Investments. All rights reserved.			948 S 01/23

(b) Not applicable.

Item 2. Code of Ethics.

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

(c) N/A

(d) N/A

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

Item 3. Audit Committee Financial Expert.

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

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

Item 4. Principal Accountant Fees and Services.

Not Applicable.

Item 5. Audit Committee of Listed Registrants.

Not Applicable.

Item 6. Investments.

Not applicable.

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

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

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

Not applicable.

Item 10. 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 11. Controls and Procedures.

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

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.

(a)(1) Code of Ethics

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

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

SIGNATURES

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

(Registrant)       Franklin Alternative Strategies Funds                                             

By (Signature and Title)	/s/ Matthew T. Hinkle
	Matthew T. Hinkle, Chief Executive Officer – Finance and Administration
Date     1/30/2023

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

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

EX-99.CODE

Code of Ethics for Principal Executives & Senior Financial Officers

Procedures     Revised December 19, 2014  

FRANKLIN TEMPLETON FUNDS

CODE OF ETHICS FOR PRINCIPAL EXECUTIVES AND

SENIOR FINANCIAL OFFICERS

I. Covered Officers and Purpose of the Code

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

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

• 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;

• Compliance with applicable laws and governmental rules and regulations;

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

• Accountability for adherence to the Code.

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

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

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

II. Other Policies and Procedures

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

Franklin Resources, Inc. has separately adopted the Code of Ethics and Business Conduct (“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 FTI Personal Investments and Insider Trading Policy governing personal securities trading and other related matters. The Code for Insider Trading provides for separate requirements that apply to the Covered Officers and others, and therefore is not part of this Code.

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

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

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

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

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

2

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:

• 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;

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

• 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;

• Report at least annually the following affiliations or other relationships:¹

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

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

○ 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

○ 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 include²:

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

¹ 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.

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

3

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

• 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.

• 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.

• 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.

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

IV. Disclosure and Compliance

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

• 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;

• 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

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

V. Reporting and Accountability

Each Covered Officer must:

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

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

• 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

4

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.³ However, the Independent Directors of the respective FT Funds will consider any approvals or waivers⁴ sought by any Chief Executive Officers of the Funds.

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

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

• 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;

• 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;

• 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;

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

• Any changes to or waivers of this Code will, to the extent required, are disclosed as provided by SEC rules.⁵

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.

³ 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.

⁴ 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.

⁵ See Part X.

5

VII. Amendments

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

VIII. Confidentiality

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

IX. Internal Use

The Code is intended solely for the internal use by the FT Funds and does not constitute an admission, by or on behalf of any FT Funds, as to any fact, circumstance, or legal conclusion.

X. Disclosure on Form N-CSR

Item 2 of Form N-CSR requires a registered management investment company to disclose annually whether, as of the end of the period covered by the report, it has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these officers are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, it must explain why it has not done so.

The registrant must also: (1) file with the SEC a copy of the code as an exhibit to its annual report; (2) post the text of the code on its Internet website and disclose, in its most recent report on Form N-CSR, its Internet address and the fact that it has posted the code on its Internet website; or (3) undertake in its most recent report on Form N-CSR to provide to any person without charge, upon request, a copy of the code and explain the manner in which such request may be made. Disclosure is also required of amendments to, or waivers (including implicit waivers) from, a provision of the code in the registrant’s annual report on Form N-CSR or on its website. If the registrant intends to satisfy the requirement to disclose amendments and waivers by posting such information on its website, it will be required to disclose its Internet address and this intention.

The Legal Department shall be responsible for ensuring that:

• a copy of the Code is filed with the SEC as an exhibit to each Fund’s annual report; and

• 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.

6

EXHIBIT A

Persons Covered by the Franklin Templeton Funds

Code of Ethics

January 1, 2022

FRANKLIN GROUP OF FUNDS

Edward Perks	President and Chief Executive Officer – Investment Management
Rupert H. Johnson, Jr.	Chairman of the Board and Vice President
Michael McCarthy	President and Chief Executive Officer – Investment Management
Sonal Desai, Ph D	President and Chief Executive Officer – Investment Management
Matthew Hinkle	Chief Executive Officer – Finance and Administration
Christopher Kings	Chief Financial Officer and Chief Accounting Officer and Treasurer

FRANKLIN MUTUAL SERIES FUNDS

Christian K. Correa	Chief Executive Officer – Investment Management
Matthew Hinkle	Chief Executive Officer – Finance and Administration
Christopher Kings	Chief Financial Officer and Chief Accounting Officer and Treasurer

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Brooks Ritchey	President and Chief Executive Officer – Investment Management
Matthew Hinkle	Chief Executive Officer – Finance and Administration
Christopher Kings	Chief Financial Officer, Chief Accounting Officer and Treasurer

TEMPLETON GROUP OF FUNDS

Rupert H. Johnson Jr.	Chairman of the Board and Vice President
Manraj S. Sekhon	President and Chief Executive Officer – Investment Management
Michael Hasenstab, Ph.D.	President and Chief Executive Officer – Investment Management
Alan Bartlett	President and Chief Executive Officer – Investment Management
Matthew Hinkle	Chief Executive Officer – Finance and Administration
Christopher Kings	Chief Financial Officer, Chief Accounting Officer and Treasurer

7

Exhibit B

ACKNOWLEDGMENT FORM

Franklin Templeton Funds Code of Ethics

For Principal Executives and Senior Financial Officers

Instructions:

1. Complete all sections of this form.

2. Print the completed form, sign, and date.

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^th of each subsequent year.

E-mail:      Code of Ethics Inquiries & Requests (internal address);

                   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

8

EX-99.CERT

Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the

Sarbanes-Oxley Act

I, Matthew T. Hinkle, certify that:

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

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

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

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

(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;

(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

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

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(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

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

Date: 1/30/2023

/s/ Matthew T. Hinkle            

Matthew T. Hinkle,

Chief Executive Officer – Finance and Administration

Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act

I, Christopher Kings, certify that:

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

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

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

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

(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;

(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

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

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(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

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

Date: 1/30/2023

/s/ Christopher Kings                

Christopher Kings

Treasurer, Chief Financial Officer and Chief Accounting Officer

EX-99.906CERT

Certification Pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the

Sarbanes-Oxley Act

I, Matthew T. Hinkle, Chief Executive Officer of the Franklin Alternative Strategies Funds (the “Registrant”), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. The periodic report on Form N-CSR of the Registrant for the period ended 11/30/2022 (the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

Dated: 1/30/2023

/s/ Matthew T. Hinkle          

Matthew T. Hinkle,

Chief Executive Officer – Finance and Administration

I, Christopher Kings, Chief Financial Officer of the Franklin Alternative Strategies Funds (the “Registrant”), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. The periodic report on Form N-CSR of the Registrant for the period ended 11/30/2022 (the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

Dated: 1/30/2023

/s/ Christopher Kings          

Christopher Kings

Treasurer, Chief Financial Officer and Chief Accounting Officer