FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Consolidated Statement of Investments, August 31, 2021 (unaudited)

Franklin K2 Alternative Strategies Fund

	Country		Shares/         Warrants/       Rights		Value
Common Stocks and Other Equity Interests 42.9%
Aerospace & Defense 0.1%
Aerojet Rocketdyne Holdings Inc.		United States		14,007	$	581,570
aBombardier Inc., B		Canada		917,471		1,338,047
						1,919,617
Air Freight & Logistics 0.4%
Expeditors International of Washington Inc.		United States		1,117		139,223
aGXO Logistics Inc.		United States		21,139		1,728,959
United Parcel Service Inc., B		United States		316		61,819
aXPO Logistics Inc.		United States		37,522		3,261,037
						5,191,038
Airlines 0.1%
a,bControladora Vuela Cia de Aviacion SAB de CV, ADR		Mexico		6,201		123,214
aJapan Airlines Co. Ltd.		Japan		31,191		664,515
						787,729
Automobiles 0.0%†
aGeneral Motors Co.		United States		8,800		431,288
aXos Inc., 12/31/25, wts.		United States		382		420
						431,708
Banks 0.0%†
Barclays PLC		United Kingdom		108,406		274,855
Citigroup Inc.		United States		894		64,288
cJPMorgan Chase & Co.		United States		411		65,739
Truist Financial Corp.		United States		1,116		63,679
						468,561
Beverages 0.4%
The Coca-Cola Co.		United States		4,092		230,420
Davide Campari-Milano NV		Italy		270,210		3,737,008
dNongfu Spring Co. Ltd., H, 144A		China		1,790		9,473
PepsiCo Inc.		United States		397		62,087
Primo Water Corp.		United States		97,339		1,728,741
Tsingtao Brewery Co. Ltd., H		China		2,000		16,365
						5,784,094
Biotechnology 2.1%
AbbVie Inc.		United States		18,883		2,280,689
a,e,fAlder Biopharmaceuticals Inc., Contingent Value, rts., 12/31/24		United States		50,624		44,549
aAllakos Inc.		United States		2,157		192,318
aAmicus Therapeutics Inc.		United States		51,566		587,337
a,bApellis Pharmaceuticals Inc.		United States		38,021		2,503,683
aArgenx SE, ADR		Netherlands		5,281		1,748,117
a,bBioNTech SE, ADR		Germany		6,568		2,162,120
aBlueprint Medicines Corp.		United States		8,030		748,958
aBurning Rock Biotech Ltd., ADR		China		20,514		382,176
aC4 Therapeutics Inc.		United States		6,325		253,822
aCaribou Biosciences Inc.		United States		7,303		198,642
aCRISPR Therapeutics AG		Switzerland		8,743		1,092,438
aCytoDyn Inc.		United States		2,742		3,784
aDenali Therapeutics Inc.		United States		4,940		262,808
aFate Therapeutics Inc.		United States		16,262		1,191,191
aGenetron Holdings Ltd., ADR		China		26,644		354,099
a,fGraphite Bio Inc.		United States		6,744		131,778
aI-Mab, ADR		China		3,466		245,809
aImmatics NV, 12/31/25, wts.		Germany		10,049		39,593
aIntellia Therapeutics Inc.		United States		15,283		2,453,380
aKaruna Therapeutics Inc.		United States		1,897		225,553
aKymera Therapeutics Inc.		United States		4,162		258,627

Quarterly Consolidated Statement of Investments | See Notes to the Consolidated Statements of Investments.

1

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Shares/         Warrants/       Rights		Value
Common Stocks and Other Equity Interests (continued)
Biotechnology (continued)
aMirati Therapeutics Inc.		United States		3,219	$	546,361
aMonte Rosa Therapeutics Inc.		United States		6,745		240,729
aNatera Inc.		United States		13,824		1,637,176
a,fNovavax Inc.		United States		2,742		654,077
aNurix Therapeutics Inc.		United States		7,354		236,725
aORIC Pharmaceuticals Inc.		United States		10,440		230,620
aPMV Pharmaceuticals Inc.		United States		7,999		242,770
aPraxis Precision Medicines Inc.		United States		4,250		84,447
a,fProQR Therapeutics NV		Netherlands		39,814		265,957
aSeagen Inc.		United States		4,869		816,044
aSpringWorks Therapeutics Inc.		United States		9,485		712,323
a,cTranslate Bio Inc.		United States		45,853		1,714,902
aTurning Point Therapeutics Inc.		United States		10,563		813,562
aVertex Pharmaceuticals Inc.		United States		9,090		1,820,636
a,fVerve Therapeutics Inc.		United States		8,505		595,010
a,fZai Lab Ltd., ADR		China		7,846		1,133,747
						29,106,557
Building Products 0.4%
AO Smith Corp.		United States		8,656		629,464
Carrier Global Corp.		United States		48,534		2,795,559
aJohnson Controls International PLC		United States		5,391		403,247
aTrane Technologies PLC		United States		6,440		1,278,340
						5,106,610
Capital Markets 0.6%
dAmundi SA, 144A		France		26,558		2,513,529
dAnima Holding SpA, 144A		Italy		102,616		529,284
Artisan Partners Asset Management Inc., A		United States		1,299		67,496
cThe Blackstone Group Inc., A		United States		569		71,540
a,bCapstar Special Purpose Acquisition Corp., A		United States		10,190		100,779
aCapstar Special Purpose Acquisition Corp., A, 7/9/27, wts.		United States		6,891		6,340
a,fCoinbase Global Inc., A		United States		6,116		1,584,044
a,bE.Merge Technology Acquisition Corp., A		United States		6,534		63,837
cThe Goldman Sachs Group Inc.		United States		160		66,162
aGS Acquisition Holdings Corp. II, A		United States		4,764		47,307
Moody’s Corp.		United States		9,081		3,457,772
cMorgan Stanley		United States		632		66,000
aSCVX Corp., A		United States		6,585		65,521
						8,639,611
Chemicals 1.0%
Albemarle Corp.		United States		5,405		1,279,580
aFerro Corp.		United States		43,983		914,846
bInternational Flavors & Fragrances Inc.		United States		2,323		351,935
a,cKraton Corp.		United States		29,339		1,235,759
LyondellBasell Industries NV, A		United States		606		60,812
bThe Sherwin-Williams Co.		United States		31,064		9,433,205
bWR Grace & Co.		United States		16,552		1,152,681
						14,428,818
Commercial Services & Supplies 1.5%
a468 SPAC I SE, A		Germany		142,088		1,652,537
a468 SPAC I SE, A, 4/30/26, wts.		Germany		41,605		29,475
a7GC & Co. Holdings Inc., A, 12/31/26, wts.		United States		3,244		1,785
a,bAtlas Crest Investment Corp. II, A		United States		20,011		193,306
aAtlas Crest Investment Corp. II, A, 2/23/28, wts.		United States		4,212		3,833
Cintas Corp.		United States		13,412		5,308,067
a,bClass Acceleration Corp., A		United States		13,473		130,688

2

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Shares/         Warrants/       Rights		Value
Common Stocks and Other Equity Interests (continued)
Commercial Services & Supplies (continued)
aClass Acceleration Corp., A, 3/31/28, wts.		United States		4,133	$	2,398
aCM Life Sciences III Inc.		United States		8,817		89,581
a,bCM Life Sciences III Inc., A		United States		13,400		132,392
Covanta Holding Corp.		United States		267,803		5,369,450
aDigital Transformation Opportunities Corp.		United States		39,182		383,592
a,c,fdMY Technology Group Inc. III, A		United States		12,989		129,760
adMY Technology Group Inc. III, A, 1/31/26, wts.		United States		48,353		101,058
adMY Technology Group Inc. IV		United States		3		30
a,bdMY Technology Group Inc. IV, A		United States		38,695		383,467
adMY Technology Group Inc. IV,, A, 12/31/27, wts.		United States		21,893		30,650
aExecutive Network Partnering Corp., A		United States		19,832		193,164
aExecutive Network Partnering Corp., A, 9/25/28, wts.		United States		2,901		2,000
aGores Guggenheim Inc., A		United States		3,084		30,316
aGores Guggenheim Inc., A, 3/25/28, wts.		United States		616		1,010
aGores Metropoulos II Inc.		United States		110		1,114
a,fGores Metropoulos II Inc., A		United States		140		1,390
aGores Metropoulos II Inc., A, 1/31/28, wts.		United States		4,212		5,097
a,bGores Technology Partners II Inc.		United States		12,807		127,942
aGores Technology Partners II Inc., A		United States		1,220		11,980
a,bGores Technology Partners Inc.		United States		11,237		112,032
aHedosophia European Growth		United Kingdom		35,835		410,724
aHedosophia European Growth, 5/13/27, wts.		United Kingdom		11,638		10,031
Iron Spark I Inc., A		United States		5,353		52,995
aKins Technology Group Inc., A, 12/31/25, wts.		United States		1,892		1,154
aLandcadia Holdings IV Inc.		United States		4,686		46,579
aNorthern Star Investment Corp. II, A, 1/31/28, wts.		United States		4,249		5,311
a,bNovus Capital Corp. II, A		United States		19,008		184,188
aNovus Capital Corp. II, A, 2/2/26, wts.		United States		6,336		6,209
aOne Equity Partners Open Water I Corp., A		United States		2,269		21,998
aOne Equity Partners Open Water I Corp., A, 1/14/26, wts.		United States		2,933		2,098
bRepublic Services Inc., A		United States		38,905		4,829,278
a,bStar Peak Corp. II, A		United States		29		289
aStar Peak Corp. II, A, 12/24/25, wts.		United States		22,046		29,542
aTech And Energy Transition Corp.		United States		8,501		84,202
aTishman Speyer Innovation Corp. II		United States		1,534		15,095
aTishman Speyer Innovation Corp. II, A		United States		509		4,973
a,bTwelve Seas Investment Co. II, A		United States		15,317		148,269
aTwelve Seas Investment Co. II, A, 3/2/28, wts.		United States		5,105		3,736
						20,284,785
Communications Equipment 0.1%
Accton Technology Corp.		Taiwan		166,667		1,688,563
Cisco Systems Inc.		United States		1,108		65,394
Motorola Solutions Inc.		United States		177		43,227
						1,797,184
Construction & Engineering 0.6%
aAECOM		United States		24,328		1,594,944
aMastec Inc.		United States		31,458		2,876,520
Quanta Services Inc.		United States		37,533		3,832,119
						8,303,583
Construction Materials 0.4%
aCemex SAB de CV, ADR		Mexico		213,433		1,750,151
LafargeHolcim Ltd., B		Switzerland		69,827		3,978,851
						5,729,002
Consumer Finance 0.0%†
a,fKatapult Holdings Inc.		United States		4,979		24,123

3

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Shares/         Warrants/       Rights		Value
Common Stocks and Other Equity Interests (continued)
Consumer Finance (continued)
OneMain Holdings Inc., A		United States		1,061	$	61,358
						85,481
Containers & Packaging 0.8%
Ball Corp.		United States		115,464		11,079,925
Distributors 0.3%
Pool Corp.		United States		7,289		3,602,953
Diversified Consumer Services 0.0%†
aMister Car Wash Inc.		United States		21,307		408,881
Diversified Financial Services 1.4%
a2MX Organic SA, 11/16/25, wts.		France		3,920		1,067
aAdit EdTech Acquisition Corp., 12/31/27, wts.		United States		1,411		818
aAEA-Bridges Impact Corp., 9/19/25, wts.		Cayman Islands		1,407		957
aAEA-Bridges Impact Corp., A		Cayman Islands		28,592		279,058
aAequi Acquisition Corp.		United States		1,470		14,516
aAequi Acquisition Corp., A		United States		11,885		115,403
aAfrican Gold Acquisition Corp., A		United States		6,518		63,094
aAfrican Gold Acquisition Corp., A, 3/13/28, wts.		United States		4,888		2,346
aAgile Growth Corp.		United States		3,910		38,787
aAlkuri Global Acquisition Corp., A		United States		4,150		41,168
aAlkuri Global Acquisition Corp., A, 1/1/28, wts.		United States		159		227
a,bAltitude Acquisition Corp., A		United States		10,922		106,926
aAltitude Acquisition Corp., A, 11/30/27, wts.		United States		24,529		14,963
aAngel Pond Holdings Corp.		United States		7,260		71,148
aApollo Strategic Growth Capital, A		United States		8,654		84,203
aApollo Strategic Growth Capital II		United States		8,845		87,345
aAres Acquisition Corp., 12/30/21, wts.		United States		1,934		1,856
aAres Acquisition Corp., A		United States		13,000		126,230
aAthena Technology Acquisition Corp., A, 3/31/28, wts.		United States		4,041		5,496
aAthlon Acquisition Corp., A, 1/18/23, wts.		United States		4,234		2,920
a,bAtlantic Avenue Acquisition Corp., A		United States		8,680		84,890
aAtlantic Avenue Acquisition Corp., A, 10/6/27, wts.		United States		4,340		2,951
a,bAtlantic Coastal Acquisition Corp., A		United States		16,329		158,065
aAtlantic Coastal Acquisition Corp., A, 4/26/26, wts.		United States		5,443		5,824
aAusterlitz Acquisition Corp. I, 2/19/26, wts.		United States		25,483		32,109
aAusterlitz Acquisition Corp. I, 12/31/27, wts.		United States		3,158		3,067
a,fAusterlitz Acquisition Corp. I, A		United States		27,264		270,186
aAusterlitz Acquisition Corp. II, A		United States		33,691		326,129
aAuthentic Equity Acquisition Corp. I, 1/20/28, wts.		Cayman Islands		9,239		6,837
aBiotech Acquisition Co., 11/30/27, wts.		United States		4,353		2,677
aBlue Whale Acquisition Corp. I		United Arab Emirates		12,847		138,105
a,b,fBowX Acquisition Corp., A		United States		6,381		63,363
aBowX Acquisition Corp., A, 8/7/27, wts.		United States		25,497		38,755
aBridgetown Holdings Ltd., A		Hong Kong		3,261		31,990
a,bBroadscale Acquisition Corp., A		United States		6,216		60,109
aBroadscale Acquisition Corp., A, 2/2/26, wts.		United States		1,554		1,166
aBroadstone Acquisition Corp., 9/15/28, wts.		United States		25,789		23,927
aBurgundy Technology Acquisition Corp.		United States		8,583		84,886
a,bCarney Technology Acquisition Corp. II, A		United States		12,636		122,822
aCarney Technology Acquisition Corp. II, A, 11/30/27, wts.		United States		5,876		4,113
aCBRE Acquisition Holdings Inc.		United States		4		41
aCC Neuberger Principal Holdings II		United States		12,116		118,616
aCC Neuberger Principal Holdings II, 7/29/25, wts.		United States		673		680
aCC Neuberger Principal Holdings III		United States		558		5,524
aCentricus Acquisition Corp., A, 2/8/28, wts.		United States		4,892		4,794

4

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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)
aCF Acquisition Corp. V, A		United States		6,004	$	58,839
aCF Acquisition Corp. V, A, 1/25/26, wts.		United States		24,745		25,240
a,bChurchill Capital Corp. V, A		United States		6,430		62,628
aChurchill Capital Corp. VI		United States		1,080		10,800
a,bChurchill Capital Corp. VII		United States		9,560		94,118
aClarim Acquisition Corp., A		United States		50,724		492,023
aClarim Acquisition Corp., A, 2/3/28, wts.		United States		16,908		9,975
aClimate Real Impact Solutions II Acquisition Corp., A		United States		563		5,444
aClimate Real Impact Solutions II Acquisition Corp., A, 12/31/27, wts.		United States		112		104
a,bColicity Inc.		United States		37,960		372,008
aColonnade Acquisition Corp. II, 12/31/27, wts.		United States		9,555		8,217
aConcord Acquisition Corp., A, 11/28/25, wts.		United States		150		269
aCorner Growth Acquisition Corp.		United States		17,211		172,971
aCorner Growth Acquisition Corp., 1/2/28, wts.		United States		7,606		6,240
aCorner Growth Acquisition Corp., A		United States		22,818		221,335
aCorsair Partnering Corp.		United States		3,898		38,902
a,bCrucible Acquisition Corp.		United States		4,437		44,281
aCrystal Peak Acquisition		Netherlands		6,767		64,422
aCrystal Peak Acquisition, 6/22/26, wts.		Netherlands		2,725		1,117
a,bDecarbonization Plus Acquisition Corp. II, A		United States		7,711		76,030
aDecarbonization Plus Acquisition Corp. II, A, 1/19/26, wts.		United States		1,009		1,140
aDecarbonization Plus Acquisition Corp. III		United States		2		21
a,bDecarbonization Plus Acquisition Corp. III, A		United States		1,794		17,796
aDecarbonization Plus Acquisition Corp. III, A, 2/12/23, wts.		United States		26,925		37,964
aDHC Acquisition Corp., 12/31/27, wts.		United States		2,088		1,420
aDHC Acquisition Corp., A		United States		6,265		60,395
aDisruptive Acquisition Corp. I		United States		6,844		67,824
aDragoneer Growth Opportunities Corp. II, A		United States		1,335		13,217
aDragoneer Growth Opportunities Corp. III, A		United States		20,225		198,003
a,bECP Environmental Growth Opportunities Corp.		United States		10,712		107,227
aECP Environmental Growth Opportunities Corp., A, 2/11/28, wts.		United States		462		402
aElliott Opportunity II Corp.		United States		4,526		45,034
aEnergy Transition Partners BV		Netherlands		3,372		38,804
aEnergy Transition Partners BV, 7/16/26, wts.		Netherlands		1,124		410
aESM Acquisition Corp.		United States		8,367		82,708
aEuropean Biotech Acquisition Corp.		Netherlands		1,230		12,202
aFar Peak Acquisition Corp.		United States		26,072		258,634
aFar Peak Acquisition Corp., 12/7/25, wts.		United States		5,206		9,058
a,bFast Acquisition Corp. II		United States		14,427		143,044
aFigure Acquisition Corp. I, A		United States		1,393		13,665
aFigure Acquisition Corp. I, A, 12/31/27, wts.		United States		1,176		1,188
a,bFintech Acquisition Corp. VI		United States		39,608		394,100
aFintech Evolution Acquisition Group		United States		17,597		173,506
a,fFirst Reserve Sustainable Growth Corp., A		United States		32,362		317,471
aFirst Reserve Sustainable Growth Corp., A, 4/26/26, wts.		United States		8,090		5,096
aForesight Acquisition Corp., A, 1/31/27, wts.		United States		1,814		1,995
aFortress Capital Acquisition Corp., 1/4/28, wts.		United States		1,961		1,745
aFortress Capital Acquisition Corp., A		United States		9,805		95,109
a,bFortress Value Acquisition Corp. III, A		United States		10,335		100,353
a,bFortress Value Acquisition Corp. IV		United States		8,256		81,074
aForum Merger IV Corp.		United States		2,892		28,833
aFreedom Acquisition I Corp., A		United States		1,955		19,003
a,bFS Development Corp. II, A		United States		2,114		20,907
aFTAC Athena Acquisition Corp., A		United States		28,460		280,616
aFTAC Athena Acquisition Corp., A, 3/1/26, wts.		United States		7,115		7,613

5

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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)
aFTAC Hera Acquisition Corp., 2/28/26, wts.		United States		8,945	$	8,945
aFTAC Hera Acquisition Corp., A		United States		41,936		408,456
a,bFTAC Parnassus Acquisition Corp., A		United States		49,016		474,965
aFTAC Parnassus Acquisition Corp., A, 3/10/26, wts.		United States		12,254		12,010
a,bFusion Acquisition Corp. II		United States		12,633		124,309
aFusion Acquisition Corp. II, A		United States		3,259		31,449
aFusion Acquisition Corp. II, A, 12/31/27, wts.		United States		1,086		749
aG Squared Ascend I Inc.		United States		5,572		55,163
aG Squared Ascend I Inc., A, 12/31/27, wts.		United States		2,639		2,428
aGalileo Acquisition Corp., 10/31/26, wts.		United States		18,558		19,486
aGlenfarne Merger Corp.		United States		1,231		12,076
aGlobal Partner Acquisition Corp II, 12/31/27, wts.		United States		2,950		2,949
aGlobal Partner Acquisition Corp. II, A		United States		17,700		172,575
aGores Holdings VII Inc.		United States		38,284		381,309
a,bGores Holdings VIII Inc.		United States		8,934		88,536
aGroup Nine Acquisition Corp., A		United States		22,173		213,304
aGroup Nine Acquisition Corp., A, 1/14/26, wts.		United States		7,391		5,395
a,bHealthcare Services Acquisition Corp., A		United States		3,074		29,818
aHealthcare Services Acquisition Corp., A, 1/4/28, wts.		United States		4,019		2,452
aHealthCor Catalio Acquisition Corp., A		United States		4,875		48,311
aHorizon Acquisition Corp., A		United States		6,416		63,711
aHorizon Acquisition Corp., A, 8/19/25, wts.		United States		5,608		8,132
aInvestindustrial Acquisition Corp., 10/30/27, wts.		United States		2,150		2,623
aION Acquisition Corp II Ltd., 2/17/28, wts.		Israel		69		74
aION Acquisition Corp. 2 Ltd, A		Israel		555		5,467
aION Acquisition Corp. 3 Ltd, A		Israel		2,698		26,090
aIvanhoe Capital Acquisition Corp., A, 12/31/27, wts.		United States		5,954		6,073
aJack Creek Investment Corp., 10/1/25, wts.		United States		5,880		3,881
aJaws Mustang Acquisition Corp.		United States		6,135		61,166
aJaws Mustang Acquisition Corp., 1/30/27, wts.		United States		1,965		1,965
aJaws Mustang Acquisition Corp., A		United States		7,860		76,399
aJaws Spitfire Acquisition Corp., 12/1/25, wts.		United States		34,666		36,746
aJoff Fintech Acquisition Corp., A		United States		5,277		51,081
aJoff Fintech Acquisition Corp., A, 2/4/28, wts.		United States		1,759		1,187
aKairos Acquisition Corp., 12/31/27, wts.		Cayman Islands		4,433		2,780
a,b,fKensington Capital Acquisition Corp. II, A		United States		13,309		132,025
aKensington Capital Acquisition Corp. II, A, 12/31/28, wts.		United States		10,297		9,061
a,bKhosla Ventures Acquisition Co., A		United States		34,826		343,732
a,bKhosla Ventures Acquisition Co. III, A		United States		17,594		171,014
a,bKKR Acquisition Holdings I Corp.		United States		10,052		99,615
aL Catterton Asia Acquisition Corp.		Singapore		2,279		22,482
aLakestar SPAC I SE		Luxembourg		1,899		21,952
aLakestar SPAC I SE, 12/31/25, wts.		Luxembourg		716		651
aLazard Growth Acquisition Corp. I		United States		4,240		41,679
aLDH Growth Corp. I		United States		615		6,076
aLead Edge Growth Opportunities Ltd.		United States		4,701		46,634
aLeo Holdings III Corp., 3/2/28, wts.		United States		260		188
aLeo Holdings III Corp., A		United States		1,303		12,861
aLerer Hippeau Acquisition Corp., A		United States		20,644		199,937
a,bLive Oak Acquisition Corp. II, A		United States		10,381		103,499
aLive Oak Acquisition Corp. II, A, 12/7/27, wts.		United States		4,626		6,106
aLive Oak Mobility Acquisition Corp., A		United States		3,947		38,484
a,bLongview Acquisition Corp. II, A		United States		14,811		146,185
aLongview Acquisition Corp. II, A, 5/10/26, wts.		United States		9,978		12,373
aMarlin Technology Corp., 3/5/26, wts.		United States		3,305		2,644
aMarlin Technology Corp., A		United States		9,915		96,374

6

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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)
aMarquee Raine Acquisition Corp., A, 12/1/25, wts.		Cayman Islands		7,939	$	5,559
aMDH Acquisition Corp., A		United States		4,587		44,998
aMDH Acquisition Corp., A, 2/2/28, wts.		United States		2,293		1,261
aMotive Capital Corp., 12/9/25, wts.		United States		3,179		2,384
aMotive Capital Corp., A		United States		17,457		169,857
aThe Music Acquisition Corp., A		United States		5,363		51,860
aThe Music Acquisition Corp., A, 2/5/28, wts.		United States		2,681		1,904
aNextGen Acquisition Corp. II, A, 3/31/27, wts.		United States		3,287		4,635
aNightdragon Acquisition Corp.		United States		21,996		216,881
aNightdragon Acquisition Corp., A		United States		1,253		12,192
aNorth Atlantic Acquisition Corp., 10/20/25, wts.		United States		2,165		1,624
aNorth Atlantic Acquisition Corp., A		United States		6,495		63,131
aNorthern Genesis Acquisition Corp. II, 12/31/27, wts.		United States		1,040		952
aOaktree Acquisition Corp. II, 9/15/27, wts.		United States		4,143		3,791
aOaktree Acquisition Corp. II, A		United States		17,512		171,968
aObotech Acquisition SE, A		Luxembourg		4,205		47,863
aObotech Acquisition SE, A, 4/30/26, wts.		Luxembourg		1,401		1,323
aOrion Biotech Opportunities Corp.		United States		16,960		168,582
aPathfinder Acquisition Corp.		United States		35,815		355,643
aPathfinder Acquisition Corp., A		United States		3,257		32,081
aPegasus Acquisition Co. Europe BV		Netherlands		118,076		1,383,028
aPegasus Acquisition Co. Europe BV, A		Netherlands		1,736		19,965
aPegasus Acquisition Co. Europe BV, A, 4/27/26, wts.		Netherlands		579		485
aPeridot Acquisition Corp. II		United States		2,506		24,559
a,bPeriphas Capital Partnering Corp., A		United States		10,736		259,274
aPeriphas Capital Partnering Corp., A, 12/10/28, wts.		United States		50		75
aPershing Square Tontine Holdings Ltd., A		United States		3,103		61,222
aPioneer Merger Corp., A		United States		2,043		20,205
aPioneer Merger Corp., A, 12/31/27, wts.		United States		3,494		3,459
aPMV Consumer Acquisition Corp., A, 8/31/27, wts.		United States		2,466		1,553
aPoema Global Holdings Corp., 1/8/26, wts.		United States		4,433		3,245
aPoema Global Holdings Corp., A		United States		8,866		85,646
aPontem Corp., 1/5/26, wts.		United States		5,482		4,106
aPontem Corp., A		United States		16,446		159,526
aPopulation Health Investment Co. Inc., A		United States		1,144		11,177
a,bPost Holdings Partnering Corp., A		United States		12,717		122,719
aPost Holdings Partnering Corp., A, 4/12/26, wts.		United States		2,729		3,138
aPower & Digital Infrastructure Acquisition Corp., A		United States		5,532		56,150
aPower & Digital Infrastructure Acquisition Corp., A, 2/12/28, wts.		United States		1,383		2,807
aPowered Brands, A		United States		3,648		35,568
aPrimavera Capital Acquisition Corp., 1/19/26, wts.		Hong Kong		1,524		930
aPrimavera Capital Acquisition Corp., A		Hong Kong		3,048		29,413
aPWP Forward Acquisition Corp. I		United States		6,157		60,585
aPWP Forward Acquisition Corp. I, A, 3/9/26, wts.		United States		2,959		2,574
aRedBall Acquisition Corp.		United States		8,172		79,922
aReinvent Technology Partners, 12/31/28, wts.		United States		24,735		30,919
a,fReinvent Technology Partners, A		United States		17,710		174,444
aRice Acquisition Corp. II		United States		13,176		134,132
aRMG Acquisition Corp. III		United States		2,786		27,442
aRMG Acquisition Corp. III, 12/31/27, wts.		United States		4,311		3,880
aRMG Acquisition Corp. III, A		United States		21,555		208,006
aRosecliff Acquisition Corp. I		United States		59,628		590,317
a,bRXR Acquisition Corp.		United States		9,640		95,436
aSarissa Capital Acquisition Corp., A		United States		13,243		129,384
a,bScience Strategic Acquisition Corp. Alpha		United States		5,442		53,876
aScION Tech Growth I, 11/1/25, wts.		United Kingdom		1,102		818

7

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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)
aScION Tech Growth I, A		United Kingdom		3,306	$	32,167
aScION Tech Growth II		United Kingdom		2,073		20,523
aSCP & Co. Healthcare Acquisition Co., A, 1/31/28, wts.		United States		5,434		3,506
aSilver Crest Acquisition Corp., 12/15/25, wts.		United States		1,465		776
aSilver Crest Acquisition Corp., A		United States		2,931		28,753
aSlam Corp.		United States		5,816		57,171
aSlam Corp., A, 12/31/27, wts.		United States		6,474		4,589
a,fSoaring Eagle Acquisition Corp., A		United States		19,990		199,300
aSocial Capital Hedosophia Holdings Corp., A		United States		14,167		140,537
a,fSocial Capital Hedosophia Holdings Corp. VI, A		United States		45,111		444,343
aSocial Leverage Acquisition Corp. I		United States		13,866		136,441
a,bSocial Leverage Acquisition Corp. I, A		United States		3,470		33,520
aSpartacus Acquisition Corp., A, 10/31/27, wts.		United States		17,254		27,261
a,bSpartan Acquisition Corp. III, A		United States		32,665		323,384
aSpartan Acquisition Corp. III, A, 3/4/28, wts.		United States		4,089		4,171
aStoneBridge Acquisition Corp.		United States		3,244		32,213
aSupernova Partners Acquisition Co. II Ltd., 12/31/27, wts.		United States		2,026		1,783
aSupernova Partners Acquisition Co. II Ltd., A		United States		8,105		78,497
aSupernova Partners Acquisition Co. III Ltd.		United States		8,623		84,721
aSupernova Partners Acquisition Co. Inc., A, 10/16/25, wts.		United States		10,253		11,791
aSustainable Development Acquisition I Corp.		United States		8,363		83,546
aSVF Investment Corp., A		United States		16,643		161,770
aSVF Investment Corp. 2, A		United States		10,063		98,115
aSVF Investment Corp. 3, A		United States		10,062		98,004
aTailwind Acquisition Corp., A, 9/7/27, wts.		United States		11,194		5,821
aTB SA Acquisition Corp.		Cayman Islands		22,005		217,850
aTCV Acquisition Corp., A		United States		1,698		16,522
aTCW Special Purpose Acquisition Corp., A		United States		6,265		60,896
aTCW Special Purpose Acquisition Corp., A, 12/31/28, wts.		United States		2,088		1,564
aTekkorp Digital Acquisition Corp., 9/29/27, wts.		United States		1,328		1,248
aThimble Point Acquisition Corp., A, 2/4/26, wts.		United States		18,602		14,510
aTLG Acquisition One Corp., A		United States		9,876		97,476
aTLG Acquisition One Corp., A, 1/25/28, wts.		United States		3,292		2,140
aTPG Pace Beneficial II Corp., A		United States		17,023		165,549
aTPG Pace Solutions Corp.		United States		8,045		80,048
aTrebia Acquisition Corp., A, 12/31/25, wts.		Cayman Islands		17,611		22,630
aTwin Ridge Capital Acquisition Corp., 3/7/28, wts.		United States		2,503		1,665
aTwin Ridge Capital Acquisition Corp., A		United States		7,511		72,932
atwo, A		United States		9,851		95,850
aValor Latitude Acquisition Corp.		United States		16,723		165,306
aVector Acquisition Corp. II, A		United States		8,707		85,067
aVelocity Acquisition Corp., A		United States		6,445		63,225
aVirgin Group Acquisition Corp. II		United States		10,835		106,941
aVirtuoso Acquisition Corp., A, 1/31/28, wts.		United States		34,309		37,740
aViveon Health Acquisition Corp.		United States		22,809		4,562
aViveon Health Acquisition Corp., 12/31/27, wts.		United States		22,809		5,510
aVPC Impact Acquisition Holdings II Inc., 3/5/26, wts.		United States		1,300		1,378
aVPC Impact Acquisition Holdings II Inc., A		United States		6,544		64,393
a,bVPC Impact Acquisition Holdings III Inc., A		United States		10,252		101,393
aVPC Impact Acquisition Holdings III Inc., A, 12/31/27, wts.		United States		4,604		7,136
aWaldencast Acquisition Corp.		United States		279		2,854
aZimmer Energy Transition Acquisition Corp.		United States		7,144		72,083
						19,927,971
Diversified Telecommunication Services 0.3%
aBT Group PLC, A		United Kingdom		34,679		81,066
aORBCOMM Inc.		United States		296,002		3,401,063

8

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Shares/         Warrants/       Rights		Value
Common Stocks and Other Equity Interests (continued)
Diversified Telecommunication Services (continued)
Verizon Communications Inc.		United States		1,077	$	59,235
						3,541,364
Electric Utilities 1.1%
Duke Energy Corp.		United States		2,117		221,565
Edison International		United States		30,076		1,739,596
aEnergy Harbor Corp.		United States		43,817		1,621,229
Exelon Corp.		United States		124,440		6,100,049
bFirstEnergy Corp.		United States		32,457		1,261,604
aPG&E Corp.		United States		439,972		4,034,543
aReNew Energy Global PLC, 12/27/25, wts.		United Kingdom		1,928		2,506
The Southern Co.		United States		947		62,246
						15,043,338
Electrical Equipment 0.4%
aArray Technologies Inc.		United States		104,770		1,997,964
aChargepoint Holdings Inc.		United States		36,705		776,311
aGenerac Holdings Inc.		United States		5,197		2,270,985
Graftech International Ltd.		United States		42,284		468,084
						5,513,344
Electronic Equipment, Instruments & Components 0.3%
aCoherent Inc.		United States		3,675		928,562
Hollysys Automation Technologies Ltd.		China		123,933		2,435,284
a,fII-VI Inc.		United States		15,992		1,007,176
						4,371,022
Entertainment 0.1%
Activision Blizzard Inc.		United States		747		61,530
aBilibili Inc., Z		China		126		10,038
aPlaystudios Inc., A, 6/17/26, wts.		United States		245		204
aSciPlay Corp., A		United States		52,963		990,938
						1,062,710
Equity Real Estate Investment Trusts (REITs) 0.1%
cAmerican Tower Corp.		United States		219		63,985
Gaming and Leisure Properties Inc.		United States		707		34,855
c,fIron Mountain Inc.		United States		1,368		65,322
OMEGA Healthcare Investors Inc.		United States		1,907		63,942
Public Storage		United States		126		40,775
bQts Realty Trust Inc., A		United States		5,889		459,224
VICI Properties Inc.		United States		17,645		545,407
						1,273,510
Food & Staples Retailing 0.4%
bCostco Wholesale Corp.		United States		13,056		5,946,878
Walmart Inc.		United States		1,192		176,535
						6,123,413
Food Products 0.5%
Nestle SA		Switzerland		36,068		4,554,986
aPilgrim’s Pride Corp.		United States		62,256		1,733,207
Tyson Foods Inc., A		United States		795		62,424
						6,350,617
Gas Utilities 0.1%
Hong Kong & China Gas Co. Ltd.		Hong Kong		541,396		870,435
Health Care Equipment & Supplies 1.7%
Abbott Laboratories		United States		501		63,311
aAlign Technology Inc.		United States		2,729		1,934,861
a,fAxonics Inc.		United States		6,496		487,070

9

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Shares/         Warrants/       Rights		Value
Common Stocks and Other Equity Interests (continued)
Health Care Equipment & Supplies (continued)
bThe Cooper Cos. Inc.		United States		1,811	$	816,236
Danaher Corp., W		United States		26,903		8,720,877
a,bDexCom Inc.		United States		5,311		2,811,750
Hill-Rom Holdings Inc.		United States		3,137		456,684
aHologic Inc.		United States		12,469		986,921
aInari Medical Inc.		United States		1,937		158,563
aIntuitive Surgical Inc.		United States		1,575		1,659,357
aLivaNova PLC		United States		6,307		521,526
aNevro Corp.		United States		3,767		459,574
aNuVasive Inc.		United States		8,385		521,044
a,fOutset Medical Inc.		United States		7,691		379,089
aShockwave Medical Inc.		United States		6,117		1,310,323
aSight Sciences Inc.		United States		872		24,756
a,fSmileDirectClub Inc., A		United States		8,115		44,632
aTandem Diabetes Care Inc.		United States		6,070		680,872
aTreace Medical Concepts Inc.		United States		2,347		59,262
Zimmer Biomet Holdings Inc.		United States		4,818		724,868
						22,821,576
Health Care Providers & Services 1.3%
aAccolade Inc.		United States		6,507		308,302
a,fAgilon Health Inc.		United States		9,169		320,915
Anthem Inc.		United States		27		10,128
bCVS Health Corp.		United States		32,003		2,764,739
a,bGuardant Health Inc.		United States		9,043		1,150,902
Humana Inc.		United States		10,122		4,103,661
aInnovage Holding Corp.		United States		10,554		158,627
aNew Frontier Health Corp.		Hong Kong		160,873		1,808,212
Quest Diagnostics Inc.		United States		414		63,272
a,fTalkspace Inc.		United States		30,219		158,650
UnitedHealth Group Inc.		United States		16,417		6,833,905
						17,681,313
Health Care Technology 0.3%
aInovalon Holdings Inc., A		United States		68,797		2,810,358
aPhreesia Inc.		United States		12,944		926,143
aTeladoc Health Inc.		United States		5,569		804,275
						4,540,776
Hotels, Restaurants & Leisure 1.2%
aAirbnb Inc., A		United States		8,869		1,374,606
a,fCarnival Corp.		United States		1,409		34,013
aCarnival PLC		United States		23,908		518,042
aChipotle Mexican Grill Inc., A		United States		1,848		3,517,354
aCrown Resorts Ltd.		Australia		163,211		1,107,016
Domino’s Pizza Inc.		United States		5,612		2,900,787
aGreat Canadian Gaming Corp.		Canada		166,910		5,827,595
McDonald’s Corp.		United States		1,090		258,831
a,fNorwegian Cruise Line Holdings Ltd.		United States		1,314		33,954
aRoyal Caribbean Cruises Ltd.		United States		896		74,126
Starbucks Corp.		United States		1,624		190,804
aTrip.Com Group Ltd.		China		324		9,686
aWynn Resorts Ltd.		United States		604		61,421
Yum China Holdings Inc.		China		155		9,542
						15,917,777
Household Products 0.0%†
cThe Procter & Gamble Co.		United States		1,827		260,147

10

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Shares/         Warrants/       Rights		Value
Common Stocks and Other Equity Interests (continued)
Independent Power & Renewable Electricity Producers 1.1%
The AES Corp.		United States		290,602	$	6,936,670
cClearway Energy Inc., C		United States		49,002		1,538,173
NextEra Energy Partners LP		United States		37,944		3,032,864
aSunnova Energy International Inc.		United States		76,684		2,775,961
Vistra Corp.		United States		48,251		921,111
						15,204,779
Industrial Conglomerates 0.1%
Smiths Group PLC		United Kingdom		17,888		355,024
Toshiba Corp.		Japan		9,747		422,774
						777,798
Insurance 1.0%
American National Group Inc.		United States		2,414		464,695
aAthene Holding Ltd., A		United States		79,395		5,317,083
Fidelity National Financial Inc.		United States		1,367		66,751
aTrupanion Inc.		United States		15,562		1,425,168
a,cWillis Towers Watson PLC		United States		31,328		6,914,716
						14,188,413
Interactive Media & Services 1.9%
a,bAlphabet Inc., A		United States		2,354		6,812,358
a,bAlphabet Inc., C		United States		833		2,423,397
aCarGurus Inc., A		United States		3,300		100,254
a,bFacebook Inc., A		United States		15,962		6,055,663
a,dKuaishou Technology, B, 144A		China		1,000		10,911
aMatch Group Inc.		United States		27,927		3,838,287
a,bSnap Inc., A		United States		42,574		3,240,307
Tencent Holdings Ltd.		China		56,572		3,494,046
						25,975,223
Internet & Direct Marketing Retail 1.2%
a,bAlibaba Group Holding Ltd., ADR		China		22,706		3,728,143
aAmazon.com Inc.		United States		1,482		5,143,711
aBooking Holdings Inc.		United States		50		114,984
a,fCoupang Inc., A		South Korea		29,896		895,684
a,dDeliveroo PLC, A, 144A		United Kingdom		144,586		693,426
beBay Inc.		United States		38,325		2,941,060
aJD.Com Inc., A		China		259		10,179
a,dMeituan, B, 144A		China		400		12,790
aMercadoLibre Inc.		Argentina		107		199,817
aPinduoduo Inc., ADR		China		115		11,502
a,cStamps.Com Inc.		United States		10,669		3,509,034
						17,260,330
Internet Software & Services 0.4%
aCornerstone OnDemand Inc.		United States		78,568		4,501,946
aZillow Group Inc., A		United States		7,634		729,811
						5,231,757
IT Services 2.6%
cAccenture PLC, A		United States		194		65,293
aAfterpay Ltd.		Australia		6,334		616,105
Genpact Ltd.		United States		47,360		2,457,037
bGlobal Payments Inc.		United States		25,853		4,204,732
International Business Machines Corp.		United States		2,072		290,784
bMasterCard Inc., A		United States		14,591		5,051,842
aMongoDB Inc., A		United States		5,173		2,026,937
aNuvei Corp.		Canada		30,748		3,904,996
a,bPaya Holdings Inc.		United States		6,432		62,069

11

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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,bPayPal Holdings Inc.		United States		34,218	$	9,877,367
a,fRepay Holdings Corp., A		United States		28,966		666,508
aShopify Inc., A		Canada		1,326		2,021,858
aStoneCo. Ltd.		Brazil		37,357		1,738,595
aTwilio Inc., A		United States		4,762		1,699,844
aVeriSign Inc.		United States		3,108		672,136
fVisa Inc., A		United States		731		167,472
						35,523,575
Leisure Products 0.0%†
a,b,cCallaway Golf Co.		United States		722		20,259
Life Sciences Tools & Services 1.9%
a10x Genomics Inc., A		United States		2,345		412,532
aAkoya Biosciences Inc.		United States		5,431		86,733
aAvantor Inc.		United States		26,701		1,053,087
a,bBIO-RAD Laboratories Inc., A		United States		451		362,974
Eurofins Scientific SE		Luxembourg		23,368		3,315,707
Gerresheimer AG		Germany		9,835		1,044,745
aIllumina Inc.		United States		2,404		1,099,013
aIQVIA Holdings Inc.		United States		5,730		1,488,253
Lonza Group AG		Switzerland		484		409,332
a,bMettler-Toledo International Inc.		United States		4,846		7,525,014
a,fOlink Holding AB, ADR		Sweden		3,494		111,843
a,dPolypeptide Group AG, 144A		United States		2,088		302,531
aQIAGEN NV		United States		8,719		486,695
aRapid Micro Biosystems Inc., A		United States		2,803		52,977
aRepligen Corp.		United States		2,054		581,241
Sartorius Stedim Biotech		France		3,487		2,115,103
Thermo Fisher Scientific Inc.		United States		10,097		5,603,330
a,dWuxi Biologics Cayman Inc., 144A		China		21,353		330,586
						26,381,696
Machinery 0.5%
aBerkshire Grey Inc., 7/21/26, wts.		United States		24,376		30,226
Caterpillar Inc.		United States		296		62,418
Cummins Inc.		United States		261		61,591
cDeere & Co.		United States		6,560		2,479,877
aMarkforged Holding Corp., 8/17/25, wts.		United States		9,448		14,833
a,fNikola Corp.		United States		5,563		58,022
Stanley Black & Decker Inc.		United States		6,973		1,347,672
bThe Toro Co.		United States		17,131		1,883,382
aWelbilt Inc.		United States		48,096		1,125,446
						7,063,467
Media 0.4%
a,bAltice USA Inc., A		United States		9,027		247,701
a,fCardlytics Inc.		United States		11,018		1,000,214
cComcast Corp., A		United States		1,147		69,600
cFox Corp.		United States		1,639		61,364
The Interpublic Group of Cos. Inc.		United States		1,727		64,296
aITV PLC		United Kingdom		293,248		467,375
Nexstar Media Group Inc., A		United States		214		32,047
Shaw Communications Inc., B		Canada		96,920		2,852,328
Stroeer SE & Co. KGaA		Germany		1,613		132,839
						4,927,764
Metals & Mining 0.0%†
Arcelormittal SA		Luxembourg		15,543		521,311

12

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Shares/         Warrants/       Rights		Value
Common Stocks and Other Equity Interests (continued)
Metals & Mining (continued)
Newmont Corp.		United States		1,110	$	64,369
						585,680
Multiline Retail 0.3%
bKohl’s Corp.		United States		21,566		1,237,888
cTarget Corp.		United States		11,946		2,950,423
						4,188,311
Multi-Utilities 0.0%†
NiSource Inc.		United States		7,973		196,534
Oil, Gas & Consumable Fuels 0.1%
aBattalion Oil Corp.		United States		3,790		40,250
aCalifornia Resources Corp.		United States		9,392		321,488
Chevron Corp.		United States		676		65,417
cConocoPhillips		United States		726		40,315
Energy Transfer Equity LP		United States		4,536		42,185
EOG Resources Inc.		United States		996		67,250
aLonestar Resources US Inc.		United States		3,072		31,288
aWhiting Petroleum Corp.		United States		2,732		128,267
						736,460
Paper & Forest Products 0.0%†
a,eTopco Associates LLC		United Kingdom		144,632		—
Personal Products 0.2%
The Estee Lauder Cos. Inc., A		United States		406		138,239
aUnilever PLC		United Kingdom		44,866		2,497,529
						2,635,768
Pharmaceuticals 1.0%
aArvinas Inc.		United States		3,611		311,304
cBristol-Myers Squibb Co.		United States		931		62,247
aCatalent Inc.		United States		2,601		339,274
a,fCentessa Pharmaceuticals PLC, ADR		United Kingdom		6,778		149,455
bEli Lilly & Co., W		United States		16,155		4,172,675
Hikma Pharmaceuticals PLC		Jordan		19,075		665,810
Johnson & Johnson		United States		1,533		265,408
Novo Nordisk AS, ADR		Denmark		12,001		1,199,740
cPfizer Inc.		United States		1,269		58,463
a,fRevance Therapeutics Inc.		United States		17,112		458,259
Roche Holding AG		Switzerland		13,876		5,571,980
Viatris Inc.		United States		43,030		629,529
a,dZhaoke Ophthalmology Ltd., 144A		Hong Kong		52,004		47,925
						13,932,069
Professional Services 0.8%
aIHS Markit Ltd.		United States		50,726		6,117,556
a,dIntertrust NV, 144A		Netherlands		228,075		3,535,910
SGS SA		Switzerland		208		653,710
aTriNet Group Inc.		United States		8,003		736,916
						11,044,092
Real Estate Management & Development 0.2%
Deutsche Wohnen Se		Germany		51,307		3,184,782
Road & Rail 1.5%
Canadian Pacific Railway Ltd.		Canada		41,158		2,831,259
bCSX Corp.		United States		63,976		2,081,139
a,bHertz Global Holdings Inc.		United States		186,805		2,191,073
Kansas City Southern		United States		26,974		7,570,792
Norfolk Southern Corp.		United States		233		59,075

13

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Shares/         Warrants/       Rights		Value
Common Stocks and Other Equity Interests (continued)
Road & Rail (continued)
Ryder System Inc.		United States		797	$	63,354
bUnion Pacific Corp.		United States		28,525		6,185,361
						20,982,053
Semiconductors & Semiconductor Equipment 2.2%
aAdvanced Micro Devices Inc.		United States		24,091		2,667,356
aAnalog Devices Inc.		United States		28,372		4,623,217
cApplied Materials Inc.		United States		1,148		155,129
ASML Holding NV, G		Netherlands		3,528		2,938,965
a,eDialog Semiconductor PLC		United Kingdom		30,919		2,464,262
aFirst Solar Inc.		United States		9,309		875,046
KLA Corp.		United States		4,882		1,659,685
LAM Research Corp.		United States		98		59,272
Marvell Technology Inc.		United States		60,424		3,697,345
MediaTek Inc.		Taiwan		50,077		1,623,858
cNVIDIA Corp.		United States		896		200,570
cNXP Semiconductors NV		Netherlands		310		66,690
aQorvo Inc.		United States		5,713		1,074,215
QUALCOMM Inc.		United States		1,321		193,777
Skyworks Solutions Inc.		United States		5,732		1,051,593
aSolarEdge Technologies Inc.		United States		2,969		860,357
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		Taiwan		84		9,997
cTexas Instruments Inc.		United States		12,615		2,408,330
Xilinx Inc.		United States		26,948		4,192,839
						30,822,503
Software 4.8%
a,bAdobe Inc.		United States		6,938		4,604,751
aAtlassian Corp. PLC, A		United States		4,855		1,782,076
aAutodesk Inc.		United States		272		84,344
aAvalara Inc.		United States		16,741		3,008,358
aBlackberry Ltd.		Canada		30,479		347,765
a,b,cBox Inc., A		United States		50,556		1,303,334
aCCC Intelligent Solutions Holdings Inc., 8/18/27, wts.		United States		17,575		51,143
aCeridian HCM Holding Inc.		United States		29,608		3,326,459
aDynatrace Inc.		United States		32,926		2,263,004
aFive9 Inc.		United States		5,852		925,962
aHubSpot Inc.		United States		3,885		2,659,166
bIntuit Inc.		United States		7,657		4,334,704
aIronSource Ltd.		Israel		1,583		15,735
aLivevox Holdings Inc., 6/18/26, wts.		United States		18,565		22,278
a,cMedallia Inc.		United States		8,790		296,838
b,cMicrosoft Corp.		United States		24,887		7,512,887
bNortonLifeLock Inc.		United States		2,555		67,861
a,bNuance Communications Inc.		United States		117,350		6,460,118
cOracle Corp.		United States		711		63,371
a,b,eProofpoint Inc.		United States		44,646		7,853,232
aRingCentral Inc., A		United States		3,498		882,405
aSalesforce.com Inc.		United States		12,437		3,299,163
SAP SE		Germany		52,910		7,947,606
aServiceNow Inc.		United States		4,744		3,053,428
aVaronis Systems Inc., B		United States		26,168		1,805,854
aWorkday Inc., A		United States		2,455		670,608
aZoom Video Communications Inc., A		United States		974		281,973
a,bZscaler Inc.		United States		3,923		1,091,928
						66,016,351

14

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Shares/         Warrants/       Rights		Value
Common Stocks and Other Equity Interests (continued)
Specialty Retail 1.2%
bBath & Body Works Inc.		United States		20,576	$	1,388,469
aCapri Listco, A, 8/26/26, wts.		Cayman Islands		19,197		26,300
aCazoo Group Ltd., 8/26/26, wts.		Cayman Islands		1,535		2,149
aFive Below Inc.		United States		16,366		3,482,848
aFrasers Group PLC		United Kingdom		180,900		1,665,283
cThe Home Depot Inc.		United States		19,656		6,411,394
Lowe’s Cos. Inc.		United States		116		23,651
cRoss Stores Inc.		United States		529		62,634
cThe TJX Cos. Inc.		United States		864		62,830
Tractor Supply Co.		United States		10,600		2,059,050
a,bVictoria’s Secret & Co.		United States		4,452		295,168
a,dWatches of Switzerland Group PLC, 144A		United Kingdom		127,764		1,784,673
						17,264,449
Technology Hardware, Storage & Peripherals 0.1%
cApple Inc.		United States		1,686		255,985
aCanaan Inc., ADR		China		2,319		21,799
aDell Technologies Inc., C		United States		8,971		874,314
HP Inc.		United States		2,168		64,476
NetApp Inc.		United States		800		71,144
a,dXiaomi Corp., B, 144A		China		3,000		9,670
						1,297,388
Textiles, Apparel & Luxury Goods 0.7%
Adidas AG		Germany		15,140		5,370,908
aCapri Holdings Ltd.		United States		46,992		2,655,518
LVMH Moet Hennessy Louis Vuitton SE		France		174		128,901
cNike Inc., B		United States		1,292		212,844
a,dSamsonite International SA, 144A		United States		35,674		74,754
a,bTapestry Inc.		United States		43,737		1,763,476
						10,206,401
Trading Companies & Distributors 0.4%
Brenntag SE		Germany		52,412		5,289,328
IMCD Group NV		Netherlands		2,228		438,872
						5,728,200
Transportation Infrastructure 0.1%
aAtlantia SpA		Italy		80,102		1,500,442
Water Utilities 0.1%
Guangdong Investment Ltd.		China		1,272,652		1,767,433
Wireless Telecommunication Services 0.1%
aT-Mobile USA Inc.		United States		2,627		359,952
bVodafone Group PLC, ADR		United Kingdom		49,788		849,881
						1,209,833
Total Common Stocks and Other Equity Interests (Cost $415,986,849)						594,309,260
Convertible Preferred Stocks 0.1%
Banks 0.1%
Bank of America Corp., 7.25%, cvt. pfd., L		United States		206		302,408
Wells Fargo & Co., 7.50%, cvt. pfd., L		United States		268		399,588
						701,996
Diversified Telecommunication Services 0.0%†
d2020 Cash Mandatory Exchangeable Trust, 5.25%, cvt. pfd., 144A		United States		250		298,330

15

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Shares			Value
Convertible Preferred Stocks (continued)
Food Products 0.0%†
Bunge Ltd., 4.875%, cvt. pfd.		United States		4,040		$	459,550
Gas Utilities 0.0%†
El Paso Energy Capital Trust I, 4.75%, cvt. pfd.		United States		114			5,729
Health Care Equipment & Supplies 0.0%†
Boston Scientific Corp., 5.50%, cvt. pfd., A		United States		609			73,177
Multi-Utilities 0.0%†
NiSource Inc., 7.75%, cvt. pfd.		United States		1,700			175,372
Total Convertible Preferred Stocks (Cost $1,593,725)							1,714,154
Preferred Stocks 0.0%†
Diversified Financial Services 0.0%†
a2MX Organic SA, pfd.		France		3,964			45,167
Electric Utilities 0.0%†
SCE Trust IV, 5.375%, pfd., J		United States		1,212			30,421
SCE Trust VI, 5.00%, pfd.		United States		3,020			75,228
							105,649
Professional Services 0.0%†
Clarivate PLC, 5.25%, pfd.		United Kingdom		2,010			192,136
Thrifts & Mortgage Finance 0.0%†
FHLMC, 8.375%, pfd., Z		United States		3,672			5,398
FNMA, 8.25%, pfd., S		United States		3,650			6,424
							11,822
Total Preferred Stocks (Cost $411,737)							354,774
			Principal         Amount*
Convertible Bonds 12.6%
Aerospace & Defense 0.2%
Kaman Corp., senior note, 3.25%, 5/01/24		United States		1,418,000			1,462,383
b,dParsons Corp., senior note, 144A, 0.25%, 8/15/25		United States		1,007,000			1,019,825
							2,482,208
Air Freight & Logistics 0.3%
bAir Transport Services Group Inc., senior note, 1.125%, 10/15/24		United States		849,000			943,494
bAtlas Air Worldwide Holdings Inc., senior note,
2.25%, 6/01/22		United States		1,729,000			1,921,351
1.875%, 6/01/24		United States		1,091,000			1,458,531
							4,323,376
Airlines 0.2%
dAir France-KLM, senior note, Reg S, 0.125%, 3/25/26		France		39,954	EUR		759,717
dGOL Equity Finance SA, senior note, 144A, 3.75%, 7/15/24		Brazil		1,008,000			917,910
dJetblue Airways Corp., senior note, 144A, 0.50%, 4/01/26		United States		60,000			59,284
Southwest Airlines Co., senior note, 1.25%, 5/01/25		United States		275,000			402,187
fSpirit Airlines Inc., senior note, 1.00%, 5/15/26		United States		403,000			374,024
							2,513,122
Auto Components 0.1%
Patrick Industries Inc., senior note, 1.00%, 2/01/23		United States		1,680,000			1,890,702
Automobiles 0.3%
dFisker Inc., senior note, 144A, 2.50%, 9/15/26		United States		806,000			765,216
b,dLI Auto Inc., senior note, 144A, 0.25%, 5/01/28		China		661,000			848,643

16

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal         Amount*			Value
Convertible Bonds (continued)
Automobiles (continued)
dNIO Inc., senior note, 144A,
0.50%, 2/01/27		China		1,181,000		$	986,135
bzero cpn., 2/01/26		China		1,724,000			1,484,290
							4,084,284
Banks 0.3%
bHope Bancorp Inc., senior bond, 2.00%, 5/15/38		United States		2,487,000			2,427,039
dJPMorgan Chase Bank NA, senior note, Reg S, zero cpn., 12/28/23		United States		1,200,000			1,188,600
							3,615,639
Biotechnology 1.2%
dAvid SPV LLC, senior note, 144A, 1.25%, 3/15/26		United States		909,000			1,225,902
BioMarin Pharmaceutical Inc., senior sub. note, 1.25%, 5/15/27		United States		2,048,000			2,070,254
Coherus Biosciences Inc., senior sub. note, 1.50%, 4/15/26		United States		1,082,000			1,174,797
dDynavax Technologies Corp., 144A, 2.50%, 5/15/26		United States		1,004,000			2,039,204
bFlexion Therapeutics Inc., senior note, 3.375%, 5/01/24		United States		876,000			767,567
Gossamer Bio Inc., senior note, 5.00%, 6/01/27		United States		818,000			737,182
Insmed Inc., senior note, 0.75%, 6/01/28		United States		1,259,000			1,362,406
dIntercept Pharmaceuticals Inc., senior secured note, 144A, 3.50%, 2/15/26		United States		926,000			928,144
dIonis Pharmaceuticals Inc., senior note, 144A, zero cpn., 4/01/26		United States		80,000			78,888
fIronwood Pharmaceuticals Inc., senior note, 1.50%, 6/15/26		United States		703,000			850,499
dKadmon Holdings Inc., senior note, 144A, 3.625%, 2/15/27		United States		856,000			970,451
bKaryopharm Therapeutics Inc., senior note, 3.00%, 10/15/25		United States		736,000			564,647
Ligand Pharmaceuticals Inc., senior note, 0.75%, 5/15/23		United States		1,454,000			1,450,472
dMannkind Corp., senior note, 144A, 2.50%, 3/01/26		United States		1,197,000			1,418,961
dPharming Group NV, senior note, Reg S, 3.00%, 1/21/25		Netherlands		800,000	EUR		786,379
							16,425,753
Capital Markets 0.1%
dSGX Treasury I Pte Ltd., senior note, Reg S, zero cpn., 3/01/24		Singapore		1,100,000	EUR		1,326,099
Consumer Finance 0.6%
Encore Capital Group Inc., senior note,
3.25%, 3/15/22		United States		2,309,000			2,652,243
b3.25%, 10/01/25		United States		1,254,000			1,739,078
EZCORP Inc., senior note, 2.875%, 7/01/24		United States		941,000			945,465
PRA Group Inc., senior note, 3.50%, 6/01/23		United States		1,630,000			1,811,253
dUpstart Holdings Inc., senior note, 144A, 0.25%, 8/15/26		United States		618,000			699,167
dZip Co. Ltd., senior note, Reg S, zero cpn., 4/23/28		Australia		800,000	AUD		522,210
							8,369,416
Diversified Consumer Services 0.1%
b,dStride Inc., senior note, 144A, 1.125%, 9/01/27		United States		1,004,000			969,663
Diversified Financial Services 0.1%
bLendingtree Inc., senior note, 0.50%, 7/15/25		United States		927,000			815,204
Electronic Equipment, Instruments & Components 0.2%
bOSI Systems Inc., senior note, 1.25%, 9/01/22		United States		1,415,000			1,502,212
bVishay Intertechnology Inc., senior note, 2.25%, 6/15/25		United States		710,000			749,973
							2,252,185
Energy Equipment & Services 0.1%
bHelix Energy Solutions Group Inc., senior note, 6.75%, 2/15/26		United States		1,563,000			1,613,023
dOil States International Inc., senior note, 144A, 4.75%, 4/01/26		United States		66,000			63,839
							1,676,862
Entertainment 0.3%
Cinemark Holdings Inc., senior note, 4.50%, 8/15/25		United States		926,000			1,407,090
bLive Nation Entertainment Inc., senior note, 2.00%, 2/15/25		United States		907,000			1,025,695
b,dThe Marcus Corp., senior note, 144A, 5.00%, 9/15/25		United States		750,000			1,249,369

17

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal         Amount*			Value
Convertible Bonds (continued)
Entertainment (continued)
dZynga Inc., senior note, 144A, zero cpn., 12/15/26		United States		25,000		$	25,106
							3,707,260
Equity Real Estate Investment Trusts (REITs) 0.4%
dBraemar Hotels & Resorts Inc., senior note, 144A, 4.50%, 6/01/26		United States		470,000			524,784
dIIP Operating Partnership LP, senior note, 144A, 3.75%, 2/21/24		United States		712,000			2,668,220
Pebblebrook Hotel Trust, senior note, 1.75%, 12/15/26		United States		1,158,000			1,285,688
Summit Hotel Properties Inc., senior note, 1.50%, 2/15/26		United States		1,252,000			1,291,294
							5,769,986
Food & Staples Retailing 0.2%
The Chefs’ Warehouse Inc., senior note, 1.875%, 12/01/24		United States		2,286,000			2,360,295
Food Products 0.1%
dBeyond Meat Inc., senior note, 144A, zero cpn., 3/15/27		United States		1,237,000			1,130,635
Health Care Equipment & Supplies 0.6%
dAlphatec Holdings Inc., senior note, 144A, 0.75%, 8/01/26		United States		811,000			846,131
b,dCutera Inc., senior note, 144A, 2.25%, 3/15/26		United States		856,000			1,421,536
Mesa Laboratories Inc., senior note, 1.375%, 8/15/25		United States		501,000			575,549
NuVasive Inc., senior note,
b1.00%, 6/01/23		United States		2,011,000			2,073,484
0.375%, 3/15/25		United States		480,000			470,013
b,dSmileDirectClub Inc., senior note, 144A, zero cpn., 2/01/26		United States		2,034,000			1,442,920
Varex Imaging Corp., senior note, 4.00%, 6/01/25		United States		1,329,000			2,096,473
							8,926,106
Health Care Providers & Services 0.1%
1life Healthcare Inc., senior note, 3.00%, 6/15/25		United States		773,000			761,405
dGuardant Health Inc., senior note, 144A, zero cpn., 11/15/27		United States		70,000			81,872
Petiq Inc., senior note, 4.00%, 6/01/26		United States		990,000			1,196,316
							2,039,593
Health Care Technology 0.1%
Livongo Health Inc., senior note, 0.875%, 6/01/25		United States		70,000			100,474
bTabula Rasa Healthcare Inc., senior sub. note, 1.75%, 2/15/26		United States		772,000			661,943
Teladoc Health Inc., senior note, 1.25%, 6/01/27		United States		420,000			446,887
							1,209,304
Hotels, Restaurants & Leisure 0.3%
b,dDraftkings Inc., senior note, 144A, zero cpn., 3/15/28		United States		1,160,000			1,117,018
b,dMarriott Vacations Worldwide Corp., senior note, 144A, zero cpn., 1/15/26		United States		1,198,000			1,292,402
Penn National Gaming Inc., senior note, 2.75%, 5/15/26		United States		30,000			106,756
b,dRoyal Caribbean Cruises Ltd., senior note, 144A, 2.875%, 11/15/23		United States		1,467,000			1,834,534
							4,350,710
Independent Power & Renewable Electricity Producers 0.1%
dSunnova Energy International Inc., senior note, 144A, 0.25%, 12/01/26		United States		1,096,000			1,332,466
Interactive Media & Services 0.0%†
dTwitter Inc., senior note, 144A, zero cpn., 3/15/26		United States		130,000			123,496
Internet & Direct Marketing Retail 0.5%
dCornwall Jersey Ltd., senior note, Reg S, 0.75%, 4/16/26		United Kingdom		200,000	GBP		255,106
dDelivery Hero AG, senior note, Reg S, 1.50%, 1/15/28		Germany		1,000,000	EUR		1,290,264
d,fExpedia Group Inc., senior note, 144A, zero cpn., 2/15/26		United States		85,000			89,238
dFiverr International Ltd., senior note, 144A, zero cpn., 11/01/25		Israel		950,000			1,064,805
dGroupon Inc., senior note, 144A, 1.125%, 3/15/26		United States		1,243,000			975,687
dJust Eat Takeaway.Com NV, B, senior note, Reg S, 0.625%, 2/09/28		United Kingdom		500,000	EUR		553,287
Pinduoduo Inc., senior note, zero cpn., 12/01/25		China		183,000			176,002

18

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Convertible Bonds (continued)
Internet & Direct Marketing Retail (continued)
dThe Realreal Inc., senior note, 144A, 1.00%, 3/01/28		United States		339,000		$	275,302
dSpotify USA Inc., senior note, 144A, zero cpn., 3/15/26		United States		317,000			287,082
dTakeaway.com NV, senior note, Reg S, 1.25%, 4/30/26		Germany		800,000	EUR		946,210
bWayfair Inc., senior note, 0.625%, 10/01/25		United States		1,179,000			1,216,558
							7,129,541
IT Services 0.3%
dAfterpay Ltd., senior note, Reg S, zero cpn., 3/12/26		Australia		800,000	AUD		604,114
CSG Systems International Inc., senior bond, 4.25%, 3/15/36		United States		2,206,000			2,286,078
b,dFastly Inc., senior note, 144A, zero cpn., 3/15/26		United States		1,616,000			1,377,713
dShift4 Payments Inc., senior note, 144A, 0.50%, 8/01/27		United States		108,000			110,571
							4,378,476
Leisure Products 0.0%†
dPeloton Interactive Inc., senior note, 144A, zero cpn., 2/15/26		United States		292,000			264,610
Machinery 0.2%
Fortive Corp., senior note, 0.875%, 2/15/22		United States		1,454,000			1,466,431
dThe Greenbrier Cos. Inc., senior note, 144A, 2.875%, 4/15/28		United States		1,198,000			1,271,402
							2,737,833
Media 1.5%
Dish Network Corp.,
senior bond, 3.375%, 8/15/26		United States		2,503,000			2,617,147
dsenior note, 144A, zero cpn., 12/15/25		United States		80,000			95,985
dLiberty Broadband Corp., senior bond, 144A,
1.25%, 9/30/50		United States		2,188,000			2,323,442
2.75%, 9/30/50		United States		1,952,000			2,170,093
Liberty Interactive LLC,
senior bond, 4.00%, 11/15/29		United States		1,410,000			1,099,800
bsenior note, 3.75%, 2/15/30		United States		1,480,000			1,147,000
Liberty Media Corp.,
b,dsenior bond, 144A, 2.125%, 3/31/48		United States		1,906,000			1,974,668
dsenior bond, 144A, 2.75%, 12/01/49		United States		2,089,000			2,190,943
b,dsenior bond, 144A, 0.50%, 12/01/50		United States		749,000			868,607
bsenior note, 1.00%, 1/30/23		United States		1,126,000			1,580,633
bsenior note, 1.375%, 10/15/23		United States		919,000			1,284,552
b,dMagnite Inc., senior note, 144A, 0.25%, 3/15/26		United States		1,775,000			1,515,421
b,dTechtarget Inc., senior note, 144A, 0.125%, 12/15/25		United States		1,074,000			1,442,167
							20,310,458
Metals & Mining 0.3%
dCentury Aluminum Co., senior note, 144A, 2.75%, 5/01/28		United States		454,000			448,326
dIvanhoe Mines Ltd., senior note, 144A, 2.50%, 4/15/26		Canada		912,000			1,200,444
dMP Materials Corp., senior note, 144A, 0.25%, 4/01/26		United States		1,295,000			1,321,196
Pretium Resources Inc., senior sub. note, 2.25%, 3/15/22		Canada		1,590,000			1,619,574
							4,589,540
Mortgage Real Estate Investment Trusts (REITs) 0.8%
Apollo Commercial Real Estate Finance Inc., senior note, 4.75%, 8/23/22		United States		1,198,000			1,220,522
Arbor Realty Trust Inc., senior note, 4.75%, 11/01/22		United States		1,969,000			2,195,725
KKR Real Estate Finance Trust Inc., senior note, 6.125%, 5/15/23		United States		484,000			516,623
PennyMac Corp., senior note,
5.50%, 11/01/24		United States		1,816,000			1,851,185
b,d144A, 5.50%, 3/15/26		United States		1,237,000			1,272,951
Redwood Trust Inc., senior note, 4.75%, 8/15/23		United States		2,286,000			2,321,719
Starwood Property Trust Inc., senior note, 4.375%, 4/01/23		United States		406,000			434,664
Two Harbors Investment Corp., senior note, 6.25%, 1/15/26		United States		919,000			960,589
							10,773,978

19

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Convertible Bonds (continued)
Personal Products 0.1%
Herbalife Nutrition Ltd., senior note, 2.625%, 3/15/24		United States		1,817,000		$	1,953,968
Pharmaceuticals 0.9%
Aerie Pharmaceuticals Inc., senior note, 1.50%, 10/01/24		United States		856,000			844,230
Aurora Cannabis Inc., senior note, 5.50%, 2/28/24		Canada		2,318,000			1,970,300
b,dAvadel Finance Cayman Ltd., senior note, 144A, 4.50%, 2/01/23		United States		1,292,000			1,421,329
dCanopy Growth Corp., senior note, 144A, 4.25%, 7/15/23		Canada		1,714,000	CAD		1,350,048
Collegium Pharmaceutical Inc., senior note, 2.625%, 2/15/26		United States		1,006,000			1,022,852
Innoviva Inc., sub. note, 2.125%, 1/15/23		United States		2,239,000			2,343,953
bOmeros Corp., senior note, 5.25%, 2/15/26		United States		1,285,000			1,529,167
bRevance Therapeutics Inc., senior note, 1.75%, 2/15/27		United States		1,179,000			1,324,371
dZogenix Inc., senior note, 144A, 2.75%, 10/01/27		United States		1,003,000			944,440
							12,750,690
Professional Services 0.1%
dUpwork Inc., senior note, 144A, 0.25%, 8/15/26		United States		1,035,000			1,049,947
Real Estate Management & Development 0.3%
dOpendoor Technologies Inc., senior note, 144A, 0.25%, 8/15/26		United States		1,406,000			1,574,720
d Realogy Group LLC / Realogy Co.-Issuer Corp., senior note, 144A, 0.25%, 6/15/26		United States		749,000			750,140
dTricon Residential Inc., senior sub. note, 144A, 5.75%, 3/31/22		Canada		1,423,000			1,734,922
							4,059,782
Road & Rail 0.0%†
d,fUber Technologies Inc., senior note, 144A, zero cpn., 12/15/25		United States		115,000			107,837
Semiconductors & Semiconductor Equipment 0.3%
dams AG, senior note, Reg S, 2.125%, 11/03/27		Austria		1,200,000	EUR		1,406,059
bImpinj Inc., senior note, 2.00%, 12/15/26		United States		677,000			1,238,142
Sunpower Corp., senior note, 4.00%, 1/15/23		United States		856,000			1,028,313
							3,672,514
Software 1.1%
bAlteryx Inc., senior note, 0.50%, 8/01/24		United States		950,000			894,805
Avaya Holdings Corp., senior note, 2.25%, 6/15/23		United States		1,567,000			1,643,993
dBentley Systems Inc., senior note, 144A, 0.125%, 1/15/26		United States		1,814,000			2,172,265
dDye & Durham Ltd., senior note, 144A, 3.75%, 3/01/26		Canada		751,000	CAD		606,785
b,dfuboTV Inc., senior note, 144A, 3.25%, 2/15/26		United States		1,326,000			1,284,234
bi3 Verticals LLC, senior note, 1.00%, 2/15/25		United States		998,000			988,185
dKaleyra Inc., senior note, 144A, 6.125%, 6/01/26		Italy		393,000			421,987
b,dMicrostrategy Inc., senior note, 144A, zero cpn., 2/15/27		United States		1,004,000			800,928
dMitek Systems Inc., senior note, 144A, 0.75%, 2/01/26		United States		1,004,000			1,251,961
bNutanix Inc., senior note, zero cpn., 1/15/23		United States		1,180,000			1,245,523
Palo Alto Networks Inc., senior note, 0.375%, 6/01/25		United States		445,000			716,140
bPROS Holdings Inc., senior note, 1.00%, 5/15/24		United States		778,000			778,131
b,dRapid7 Inc., senior note, 144A, 0.25%, 3/15/27		United States		850,000			1,116,730
fSplunk Inc., senior note, 1.125%, 6/15/27		United States		1,420,000			1,422,662
							15,344,329
Specialty Retail 0.2%
bGuess? Inc., senior note, 2.00%, 4/15/24		United States		1,028,000			1,214,325
b,dShift Technologies Inc., senior note, 144A, 4.75%, 5/15/26		United States		825,000			948,750
dVroom Inc., senior note, 144A, 0.75%, 7/01/26		United States		927,000			781,984
							2,945,059
Technology Hardware, Storage & Peripherals 0.0%†
bPure Storage Inc., senior note, 0.125%, 4/15/23		United States		154,000			179,877
Total Convertible Bonds (Cost $162,287,330)							173,942,803

20

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Corporate Bonds and Notes 8.3%
Aerospace & Defense 0.4%
The Boeing Co.,
senior bond, 2.25%, 6/15/26		United States		115,000		$	118,203
senior bond, 2.95%, 2/01/30		United States		50,000			51,440
senior bond, 3.375%, 6/15/46		United States		90,000			88,339
senior bond, 3.625%, 3/01/48		United States		25,000			25,154
senior bond, 3.90%, 5/01/49		United States		100,000			104,961
senior bond, 3.75%, 2/01/50		United States		130,000			134,918
senior bond, 5.805%, 5/01/50		United States		610,000			829,846
senior bond, 3.825%, 3/01/59		United States		25,000			25,537
senior bond, 3.95%, 8/01/59		United States		30,000			31,296
senior bond, 5.93%, 5/01/60		United States		20,000			27,854
senior note, 2.196%, 2/04/26		United States		435,000			436,786
senior note, 5.15%, 5/01/30		United States		140,000			165,788
b,dBombardier Inc., 144A,
senior bond, 6.125%, 1/15/23		Canada		1,423,000			1,531,924
senior note, 6.00%, 10/15/22		Canada		670,000			671,641
Embraer Netherlands Finance BV, senior bond, 5.05%, 6/15/25		Brazil		55,000			58,342
dLeonardo US Holdings Inc., senior bond, 144A, 6.25%, 1/15/40		Italy		236,000			278,480
Spirit Aerosystems Inc.,
fsenior bond, 4.60%, 6/15/28		United States		20,000			19,575
dsenior secured note, 144A, 5.50%, 1/15/25		United States		376,000			393,875
							4,993,959
Airlines 0.3%
American Airlines 2015-2 Class Aa Pass-Through Trust, 3.60%, 9/22/27		United States		1,053,936			1,097,609
American Airlines 2016-1 Class Aa Pass-Through Trust, AA, 3.575%, 1/15/28		United States		472,361			487,670
dHawaiian Airlines 2020-1 Class A Pass-Through Certificates, 144A, 7.375%, 9/15/27		United States		1,885,226			2,137,726
United Airlines 2020-1 Class B Pass-Through Trust, 4.875%, 1/15/26		United States		46,713			49,230
dUnited Airlines Inc., senior secured note, 144A,
4.375%, 4/15/26		United States		40,000			41,575
4.625%, 4/15/29		United States		55,000			57,132
United Airlines Pass-Through Trust, 2019-2, B, 3.50%, 5/01/28		United States		367,272			365,061
							4,236,003
Automobiles 0.0%†
General Motors Co., senior bond,
5.20%, 4/01/45		United States		30,000			36,838
5.40%, 4/01/48		United States		140,000			177,660
5.95%, 4/01/49		United States		190,000			259,179
gGeneral Motors Financial Co. Inc., Perpetual,
A, junior sub. note, 5.75% to 9/30/27, FRN thereafter		United States		100,000			109,867
B, junior sub. note, 6.50% to 3/30/28, FRN thereafter		United States		75,000			85,313
fC, junior sub. note, 5.70% to 9/30/30, FRN thereafter		United States		35,000			40,250
							709,107
Banks 0.6%
dAxis Bank Ltd., senior note, Reg S, 3.00%, 8/08/22		India		400,000			407,974
d,h,iBanco Hipotecario SA, senior note, 144A, FRN, 38.125%, (ARS BADLAR + 4.00%), 11/07/22		Argentina		3,160,000	ARS		18,401
d,iBanco Macro SA, senior note, 144A, 17.50%, 5/08/22		Argentina		1,740,000	ARS		8,981
dBank of Communications Hong Kong Ltd., sub. bond, Reg S, 2.304%, 7/08/31		Hong Kong		400,000			399,606

21

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Corporate Bonds and Notes (continued)
Banks (continued)
dBank Rakyat Indonesia Persero TBK PT, senior note, Reg S, 4.625%, 7/20/23		Indonesia		200,000		$	213,250
Barclays PLC,
sub. bond, 3.564% to 9/23/30, FRN thereafter, 9/23/35		United Kingdom		325,000			339,887
gjunior sub. note, 4.375%, Perpetual		United Kingdom		210,000			213,213
dCanara Bank, senior note, Reg S,
E, 3.25%, 8/10/22		India		200,000			203,975
E, 3.875%, 3/28/24		India		466,000			490,682
Deutsche Bank AG,
senior bond, 3.547% to 9/18/30, FRN thereafter, 9/18/31		Germany		150,000			162,437
sub. bond, 3.729% to 1/14/31, FRN thereafter, 1/14/32		Germany		200,000			206,519
gHSBC Holdings PLC, junior sub. note, 6.25% to 3/23/23, FRN thereafter, Perpetual		United Kingdom		1,400,000			1,473,500
dICICI Bank Ltd., E, senior note, Reg S, 3.25%, 9/09/22		India		300,000			307,127
dIndusind Bank Ltd., E, senior note, Reg S, 3.875%, 4/15/22		India		800,000			806,948
Keybank NA, senior note, 0.433%, 6/14/24		United States		465,000			465,449
d,gKrung Thai Bank PCL, junior sub. note, Reg S, 4.40% to 3/25/26, FRN thereafter, Perpetual		Thailand		200,000			202,379
dSociete Generale SA, sub. bond, 144A, 3.653% to 7/08/30, FRN thereafter, 7/08/35		France		200,000			209,387
dStandard Chartered PLC, sub. bond, 144A, 3.265% to 11/18/30, FRN thereafter, 2/18/36		United Kingdom		255,000			256,470
dState Bank of India, E, senior note, Reg S, 4.50%, 9/28/23		India		1,100,000			1,178,236
d,gTMB Bank PCL, E, junior sub. note, Reg S, 4.90% to 12/02/24, FRN thereafter, Perpetual		Thailand		400,000			406,906
dVTB Bank OJSC Via VTB Capital SA, senior note, loan participation, sub. senior note, Reg S, 6.95%, 10/17/22		Russia		959,000			1,008,507
							8,979,834
Beverages 0.0%†
Fomento Economico Mexicano SAB de CV, senior bond, 3.50%, 1/16/50		Mexico		244,000			260,540
Capital Markets 0.4%
Ares Capital Corp., senior note, 2.875%, 6/15/28		United States		355,000			362,246
dDua Capital Ltd., senior bond, Reg S, 2.78%, 5/11/31		Malaysia		200,000			202,003
deG Global Finance PLC, senior secured note, 144A, 6.25%, 10/30/25		United Kingdom		144,000	EUR		175,251
FS KKR Capital Corp., senior note, 3.40%, 1/15/26		United States		365,000			380,990
dHuarong Finance 2017 Co. Ltd., Reg S,
senior bond, 4.75%, 4/27/27		China		200,000			198,000
gsenior note, E, 4.00%, Perpetual		China		465,000			440,587
gsenior note, 4.50% to 1/24/22, FRN thereafter, Perpetual		China		1,200,000			1,171,440
dHuarong Finance 2019 Co. Ltd., Reg S, senior bond, E, 4.50%, 5/29/29		China		200,000			194,000
senior bond, E, 3.875%, 11/13/29		China		200,000			185,500
senior bond, E, 3.625%, 9/30/30		China		200,000			184,500
senior note, E, 3.75%, 5/29/24		China		200,000			195,500
senior note, E, 3.25%, 11/13/24		China		200,000			192,000
dHuarong Finance II Co. Ltd., senior bond, Reg S,
5.00%, 11/19/25		China		500,000			510,000
EMTN, 4.875%, 11/22/26		China		200,000			199,000
Oaktree Specialty Lending Corp., senior note, 2.70%, 1/15/27		United States		75,000			75,796
Owl Rock Capital Corp., senior note, 3.40%, 7/15/26		United States		290,000			303,655

22

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Corporate Bonds and Notes (continued)
Capital Markets (continued)
Owl Rock Capital Corp., senior note, (continued) 2.875%, 6/11/28		United States		180,000		$	181,146
Owl Rock Technology Finance Corp., senior note, 2.50%, 1/15/27		United States		90,000			90,563
dTemasek Financial I Ltd., senior bond, Reg S, 2.75%, 8/02/61		Singapore		550,000			561,498
							5,803,675
Chemicals 0.1%
dAshland LLC, senior bond, 144A, 3.375%, 9/01/31		United States		140,000			144,076
d,gBluestar Finance Holdings Ltd., senior note, Reg S, 3.10%, Perpetual		China		200,000			203,263
d Braskem Netherlands Finance BV, senior bond, 144A, 4.50%, 1/31/30		Brazil		200,000			214,520
d,gCNAC HK Finbridge Co. Ltd., senior note, Reg S, 3.35%, Perpetual		China		200,000			204,001
dOrbia Advance Corp. SAB de CV, senior bond, 144A, 2.875%, 5/11/31		Mexico		200,000			203,555
							969,415
Communications Equipment 0.1%
dCommScope Inc., 144A,
senior note, 7.125%, 7/01/28		United States		430,000			451,500
senior secured note, 4.75%, 9/01/29		United States		60,000			60,835
d,f CommScope Technologies LLC, senior bond, 144A, 5.00%, 3/15/27		United States		180,000			177,492
dHTA Group Ltd., senior note, 144A, 7.00%, 12/18/25		Democratic Rep. of the Congo		435,000			461,396
							1,151,223
Construction & Engineering 0.1%
dCliffton Ltd., senior secured note, Reg S, 6.25%, 10/25/25		India		200,000			198,260
dGMR Hyderabad International Airport Ltd.,
senior secured bond, Reg S, 4.25%, 10/27/27		India		200,000			193,555
senior secured note, Reg S, 5.375%, 4/10/24		India		200,000			206,361
senior secured note, 144A, 4.75%, 2/02/26		India		200,000			201,750
							799,926
Construction Materials 0.0%†
dCemex SAB de CV, senior secured bond, 144A,
5.45%, 11/19/29		Mexico		200,000			219,602
5.20%, 9/17/30		Mexico		245,000			268,887
3.875%, 7/11/31		Mexico		200,000			206,021
							694,510
Consumer Finance 0.1%
gAlly Financial Inc., C, junior sub. note, 4.70% to 5/15/28, FRN thereafter, Perpetual		United States		305,000			318,344
dMuthoot Finance Ltd., senior secured note, Reg S,
6.125%, 10/31/22		India		600,000			622,500
4.40%, 9/02/23		India		200,000			205,500
dShriram Transport Finance Co. Ltd., E, senior secured note, Reg S, 5.70%, 2/27/22		India		200,000			202,250
							1,348,594
Diversified Consumer Services 0.1%
d,gCMHI Finance BVI Co. Ltd., senior note, Reg S, 3.50%, Perpetual		China		200,000			205,780
dLoxam SAS, senior secured note, Reg S, 3.25%, 1/14/25		France		100,000	EUR		119,473
dMPH Acquisition Holdings LLC, senior secured note, 144A, 5.50%, 9/01/28		United States		496,000			504,888

23

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Corporate Bonds and Notes (continued)
Diversified Consumer Services (continued)
dNew Oriental Education & Technology Group Inc., senior note, Reg S, 2.125%, 7/02/25		China		200,000		$	179,184
							1,009,325
Diversified Financial Services 0.6%
AerCap Ireland Capital DAC / AerCap Global Aviation Trust, senior note, 6.50%, 7/15/25		Ireland		150,000			175,100
dAviation Capital Group LLC, senior note, 144A, 1.95%, 1/30/26		United States		50,000			50,297
dAzure Orbit IV International Finance Ltd., E, senior note, Reg S, 3.75%, 1/25/23		China		700,000			724,472
dBlackstone Secured Lending Fund, senior note, 144A, 2.125%, 2/15/27		United States		405,000			400,501
dBocom Leasing Management Hong Kong Co. Ltd., senior note, Reg S,
E, 4.00%, 1/22/22		China		200,000			202,204
E, 1.75%, 7/14/23		China		200,000			201,809
E, 1.125%, 6/18/24		Hong Kong		800,000			797,723
dCDBL Funding 2, senior note, Reg S,
E, 3.00%, 8/01/22		China		200,000			203,262
E, 1.375%, 3/04/24		China		800,000			799,917
d,gChina Great Wall International Holdings IV Ltd., senior note, Reg S, 3.95% to 7/31/24, FRN thereafter, Perpetual		China		200,000			205,014
dCICC Hong Kong Finance 2016 MTN Ltd., senior note, Reg S,
E, 1.75%, 8/10/23		China		400,000			403,634
E, 1.625%, 1/26/24		China		300,000			302,277
dConstellation Automotive Financing PLC, senior note, 144A, 4.875%, 7/15/27		United Kingdom		200,000			274,902
d Financiera de Desarrollo Territorial SA Findeter, senior bond, 144A, 7.875%, 8/12/24		Colombia		393,000,000	COP		108,902
dIndian Railway Finance Corp. Ltd., senior bond, 144A, 2.80%, 2/10/31		India		200,000			196,911
dMDC-GMTN BV, senior bond, Reg S, 4.50%, 11/07/28		United Arab Emirates		261,000			306,114
dQuicken Loans LLC / Quicken Loans Co.-Issuer Inc., 144A,
senior bond, 3.875%, 3/01/31		United States		420,000			430,232
senior note, 3.625%, 3/01/29		United States		385,000			393,662
dRec Ltd., senior note, Reg S,
4.75%, 5/19/23		India		1,000,000			1,055,765
5.25%, 11/13/23		India		400,000			431,670
G, 3.375%, 7/25/24		India		300,000			313,977
dRocket Mortgage LLC, senior bond, 144A, 5.25%, 1/15/28		United States		520,000			549,250
Sun Hung Kai & Co. BVI Ltd., EMTN, senior note, 5.00%, 9/07/26		British Virgin Islands		300,000			300,000
							8,827,595
Diversified Telecommunication Services 0.2%
dBharti Airtel International Netherlands BV, senior bond, Reg S, 5.125%, 3/11/23		India		500,000			526,247
Frontier Communications Holdings LLC, secured note, 5.875%, 11/01/29		United States		113,478			115,557
dsenior secured note, 144A, 5.875%, 10/15/27		United States		465,000			497,657
dsenior secured note, 144A, 5.00%, 5/01/28		United States		219,000			229,129
dKenbourne Invest SA, senior note, 144A, 6.875%, 11/26/24		Chile		200,000			212,001
d,jLigado Networks LLC, 144A, PIK,
fsecured note, 17.50%, 5/01/24		United States		50,210			37,840
senior secured note, 15.50%, 11/01/23		United States		1,013,744			974,461
dTelesat Canada / Telesat LLC, senior secured note, 144A, 4.875%, 6/01/27		Canada		131,000			121,100
							2,713,992

24

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Corporate Bonds and Notes (continued)
Electric Utilities 0.4%
b,eBruce Mansfield Escrow, senior bond, zero cpn., 6/01/34		United States		6,394,000		$	23,978
d,gChina Huaneng Group Hong Kong Treasury Management Holding Ltd., senior note, Reg S,  3.08% to 12/09/25, FRN thereafter, Perpetual		China		400,000			412,676
gEdison International, A, junior sub. note, 5.375% to 3/15/26, FRN thereafter, Perpetual		United States		360,000			367,650
dEskom Holdings SOC Ltd., senior bond, Reg S, 8.45%, 8/10/28		South Africa		1,134,000			1,293,894
dGreenko Investment Co., senior secured note, Reg S, 4.875%, 8/16/23		India		200,000			202,736
d,gHuaneng Hong Kong Capital Ltd., senior note, Reg S, 3.60% to 10/30/22, FRN thereafter,  Perpetual		China		400,000			407,952
dOryx Funding Ltd., senior bond, 144A, 5.80%, 2/03/31		Oman		283,000			300,022
Pacific Gas and Electric Co.,
secured bond, 4.50%, 7/01/40		United States		1,106,000			1,117,550
secured bond, 4.95%, 7/01/50		United States		55,000			58,311
secured bond, 3.50%, 8/01/50		United States		200,000			180,577
senior bond, 4.30%, 3/15/45		United States		95,000			93,491
d,gSMC Global Power Holdings Corp., senior note, Reg S, 5.45%, Perpetual		Philippines		200,000			201,370
Southern California Edison Co.,
secured bond, 3.65%, 2/01/50		United States		40,000			40,850
senior bond, 4.00%, 4/01/47		United States		10,000			10,560
senior bond, C, 4.125%, 3/01/48		United States		15,000			16,252
dTalen Energy Supply LLC, senior secured note, 144A,
7.25%, 5/15/27		United States		128,000			110,838
7.625%, 6/01/28		United States		162,000			140,392
							4,979,099
Entertainment 0.1%
d,jAMC Entertainment Holdings Inc., secured note, 144A, PIK, 12.00%, 6/15/26		United States		406,000			366,653
Netflix Inc., senior bond,
4.875%, 4/15/28		United States		80,000			93,602
5.875%, 11/15/28		United States		70,000			86,890
6.375%, 5/15/29		United States		75,000			96,195
d144A, 5.375%, 11/15/29		United States		20,000			24,623
d144A, 4.875%, 6/15/30		United States		215,000			257,620
							925,583
Equity Real Estate Investment Trusts (REITs) 0.0%†
National Health Investors Inc., senior bond, 3.00%, 2/01/31		United States		30,000			29,744
Food & Staples Retailing 0.1%
dCasino Guichard Perrachon SA, Reg S,
senior bond, E, 4.498%, 3/07/24		France		200,000	EUR		240,157
gjunior sub. note, E, 3.992% to 1/31/24, FRN thereafter, Perpetual		France		300,000	EUR		258,761
dJBS USA/Food/Finance, senior bond, 144A, 3.75%, 12/01/31		United States		75,000			79,219
dMarb Bondco PLC, senior bond, 144A, 3.95%, 1/29/31		Brazil		225,000			219,757
dSmithfield Foods Inc., senior bond, 144A, 3.00%, 10/15/30		United States		30,000			30,592
							828,486
Food Products 0.0%†
Kraft Heinz Foods Co., senior bond,
5.00%, 6/04/42		United States		45,000			57,022
4.375%, 6/01/46		United States		95,000			110,346
4.875%, 10/01/49		United States		150,000			186,853
d,kPilgrim’s Pride Corp., senior bond, 144A, 3.50%, 3/01/32		United States		175,000			178,972
							533,193

25

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*		Value
Corporate Bonds and Notes (continued)
Health Care Providers & Services 0.2%
Centene Corp.,
senior bond, 3.00%, 10/15/30		United States		85,000	$	88,206
senior bond, 2.50%, 3/01/31		United States		350,000		349,534
senior note, 2.625%, 8/01/31		United States		120,000		121,800
Encompass Health Corp., senior bond, 4.625%, 4/01/31		United States		1,433,000		1,538,426
HCA Inc., senior bond, 3.50%, 9/01/30		United States		130,000		139,704
						2,237,670
Hotels, Restaurants & Leisure 0.2%
d1011778 BC ULC / New Red Finance Inc., secured note, 144A, 4.375%, 1/15/28		Canada		225,000		228,656
dCarnival Corp., senior note, 144A, 5.75%, 3/01/27		United States		295,000		301,981
dGENM Capital Labuan Ltd., senior bond, 144A, 3.882%, 4/19/31		Malaysia		200,000		201,502
b,dGolden Nugget Inc., senior note, 144A, 6.75%, 10/15/24		United States		114,000		114,405
dHaidilao International Holding Ltd., senior note, Reg S, 2.15%, 1/14/26		China		420,000		407,517
dHilton Grand Vacations Borrower Escrow LLC, 144A,
senior bond, 4.875%, 7/01/31		United States		50,000		49,626
senior note, 5.00%, 6/01/29		United States		155,000		157,131
Hyatt Hotels Corp.,
senior bond, 5.75%, 4/23/30		United States		95,000		114,161
senior note, 5.375%, 4/23/25		United States		50,000		55,980
Marriott International Inc., FF, senior bond, 4.625%, 6/15/30		United States		75,000		86,267
dMarriott Ownership Resorts Inc., senior note, 144A, 4.50%, 6/15/29		United States		70,000		70,781
d,fPenn National Gaming Inc., senior note, 144A, 4.125%, 7/01/29		United States		55,000		55,001
dRoyal Caribbean Cruises Ltd., senior note, 144A,
4.25%, 7/01/26		United States		45,000		43,931
5.50%, 4/01/28		United States		310,000		312,683
dScientific Games International Inc., senior note, 144A,
7.00%, 5/15/28		United States		200,000		215,840
7.25%, 11/15/29		United States		70,000		78,225
Travel + Leisure Co.,
senior secured bond, 6.00%, 4/01/27		United States		10,000		11,078
dsenior secured bond, 144A, 4.625%, 3/01/30		United States		95,000		97,972
dsenior secured note, 144A, 6.625%, 7/31/26		United States		125,000		142,544
						2,745,281
Household Durables 0.1%
dK. Hovnanian Enterprises Inc., senior secured note, 144A, 7.75%, 2/15/26		United States		1,628,000		1,734,170
Independent Power & Renewable Electricity Producers 0.0%†
dNTPC Ltd., E, senior bond, Reg S, 4.75%, 10/03/22		India		200,000		208,209
Industrial Conglomerates 0.1%
General Electric Co., senior bond, 3.625%, 5/01/30		United States		110,000		123,781
Icahn Enterprises LP / Icahn Enterprises Finance Corp., senior note,
6.25%, 5/15/26		United States		85,000		89,675
5.25%, 5/15/27		United States		265,000		275,601
4.375%, 2/01/29		United States		235,000		236,181
						725,238
Insurance 0.1%
Athene Holding Ltd., senior bond, 3.50%, 1/15/31		United States		110,000		119,814
hGenworth Holdings Inc., senior bond, FRN, 2.127%, (3-Month USD LIBOR + 2.00%), 11/15/66		United States		1,664,000		1,023,551
dGlobal Atlantic Finance Co., senior bond, 144A, 4.40%, 10/15/29		United States		165,000		183,059
d,gKDB Life Insurance Co. Ltd., sub. note, Reg S, 7.50% to 5/21/23, FRN thereafter, Perpetual		South Korea		200,000		203,816

26

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*		Value
Corporate Bonds and Notes (continued)
Insurance (continued)
d,gTongyang Life Insurance Co. Ltd., sub. note, Reg S, 5.25% to 9/22/25, FRN thereafter, Perpetual		South Korea		400,000	$	421,726
						1,951,966
Interactive Media & Services 0.1%
dTencent Holdings Ltd., senior bond, Reg S,
3.84%, 4/22/51		China		200,000		216,910
3.94%, 4/22/61		China		500,000		555,910
						772,820
Internet & Direct Marketing Retail 0.1%
Expedia Group Inc.,
senior bond, 3.80%, 2/15/28		United States		75,000		81,208
senior note, 3.25%, 2/15/30		United States		505,000		524,035
senior note, 2.95%, 3/15/31		United States		80,000		81,471
dMeituan, senior bond, Reg S, 3.05%, 10/28/30		China		200,000		189,641
d,gRakuten Group Inc., senior bond, Reg S, 6.25% to 4/22/31, FRN thereafter, Perpetual		Japan		200,000		208,500
						1,084,855
Leisure Products 0.0%†
dNCL Corp. Ltd., senior note, 144A, 5.875%, 3/15/26		United States		195,000		195,731
dNCL Finance Ltd., senior note, 144A, 6.125%, 3/15/28		United States		65,000		65,424
						261,155
Marine 0.0%†
dStena International SA, senior secured bond, 144A, 5.75%, 3/01/24		Sweden		299,000		311,177
Media 0.3%
dCCO Holdings LLC / CCO Holdings Capital Corp., senior bond, 144A,
4.25%, 2/01/31		United States		365,000		375,050
4.25%, 1/15/34		United States		695,000		702,353
Charter Communications Operating LLC / Charter Communications Operating Capital, senior secured bond, 4.40%, 12/01/61		United States		920,000		1,010,923
dCSC Holdings LLC, senior bond, 144A, 4.625%, 12/01/30		United States		610,000		600,850
d,fDiamond Sports Group LLC / Diamond Sports Finance Co., senior note, 144A, 6.625%, 8/15/27		United States		711,000		306,619
dDIRECTV Holdings LLC / DIRECTV Financing Co. Inc., senior secured note, 144A, 5.875%, 8/15/27		United States		60,000		62,799
dDish DBS Corp., senior note, 144A, 5.125%, 6/01/29		United States		140,000		139,475
iHeartCommunications Inc.,
senior note, 8.375%, 5/01/27		United States		430,000		457,327
senior secured note, 6.375%, 5/01/26		United States		40,000		42,300
dsenior secured note, 144A, 5.25%, 8/15/27		United States		90,000		94,415
dsenior secured note, 144A, 4.75%, 1/15/28		United States		175,000		180,906
dOutfront Media Capital LLC / Outfront Media Capital Corp., senior bond, 144A, 4.625%, 3/15/30		United States		65,000		65,895
						4,038,912
Metals & Mining 0.2%
dCSN Inova Ventures, senior note, 144A, 6.75%, 1/28/28		Brazil		414,000		456,083
dFirst Quantum Minerals Ltd., senior note, 144A,
6.875%, 3/01/26		Zambia		200,000		209,245
6.875%, 10/15/27		Zambia		620,000		671,925
dFMG Resources August 2006 Pty Ltd., senior bond, 144A, 4.375%, 4/01/31		Australia		155,000		167,248
Freeport-McMoRan Inc., senior bond,
4.625%, 8/01/30		United States		95,000		104,856
5.40%, 11/14/34		United States		145,000		182,019

27

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*		Value
Corporate Bonds and Notes (continued)
Metals & Mining (continued)
Freeport-McMoRan Inc., senior bond, (continued) 5.45%, 3/15/43		United States		20,000	$	25,599
d,fGlencore Funding LLC, senior bond, 144A, 2.85%, 4/27/31		Australia		390,000		399,483
dIndonesia Asahan Aluminium Persero PT, senior bond, Reg S, 5.80%, 5/15/50		Indonesia		400,000		476,748
dJSW Steel Ltd., senior note, Reg S, 5.25%, 4/13/22		India		200,000		204,500
d,gMCC Holding Hong Kong Corp. Ltd., senior note, Reg S, 3.50% to 1/16/23, FRN thereafter, Perpetual		China		200,000		203,002
dNovelis Corp., senior bond, 144A, 4.75%, 1/30/30		United States		90,000		95,963
dVolcan Cia Minera SAA, senior note, 144A, 4.375%, 2/11/26		Peru		30,000		29,253
						3,225,924
Multiline Retail 0.0%†
Kohl’s Corp., senior bond, 5.55%, 7/17/45		United States		338,000		420,235
Oil, Gas & Consumable Fuels 1.3%
dAker BP ASA, senior bond, 144A,
3.75%, 1/15/30		Norway		350,000		378,789
4.00%, 1/15/31		Norway		150,000		165,308
dContinental Resources Inc., senior bond, 144A, 5.75%, 1/15/31		United States		195,000		237,900
dEnergean Israel Finance Ltd., 144A, Reg S,
senior secured bond, 5.875%, 3/30/31		Israel		130,000		133,590
senior secured note, 5.375%, 3/30/28		Israel		105,000		107,514
gEnergy Transfer LP, H, junior sub. note, 6.50%, Perpetual		United States		514,000		528,279
Equities Corp., senior note,
5.00%, 1/15/29		United States		10,000		11,387
d144A, 3.125%, 5/15/26		United States		15,000		15,431
d144A, 3.625%, 5/15/31		United States		30,000		31,758
dGray Oak Pipeline LLC, senior note, 144A, 3.45%, 10/15/27		United States		20,000		21,247
dHurricane Finance PLC, senior note, 144A, 8.00%, 10/15/25		United Kingdom		158,000		235,126
dIndian Oil Corp. Ltd., senior bond, Reg S, 5.75%, 8/01/23		India		200,000		217,354
dLeviathan Bond Ltd., senior note, 144A, Reg S, 6.50%, 6/30/27		Israel		100,000		110,619
dMC Brazil Downstream Trading Sarl, senior secured note, 144A, 7.25%, 6/30/31		Brazil		1,012,000		1,054,818
dMoss Creek Resources Holdings Inc., senior note, 144A,
7.50%, 1/15/26		United States		268,000		229,306
10.50%, 5/15/27		United States		295,000		268,454
dOQ SAOC, senior note, 144A, 5.125%, 5/06/28		Oman		224,000		227,758
Ovintiv Inc., senior bond,
8.125%, 9/15/30		United States		25,000		34,167
7.20%, 11/01/31		United States		5,000		6,628
7.375%, 11/01/31		United States		5,000		6,702
6.50%, 8/15/34		United States		20,000		26,618
6.625%, 8/15/37		United States		45,000		61,896
6.50%, 2/01/38		United States		10,000		13,839
dPBF Holding Co. LLC / PBF Finance Corp., senior secured note, 144A, 9.25%, 5/15/25		United States		344,000		332,390
Petroleos Mexicanos,
senior bond, 5.95%, 1/28/31		Mexico		1,204,000		1,182,208
senior bond, 6.625%, 6/15/35		Mexico		380,000		368,592
senior bond, 6.375%, 1/23/45		Mexico		1,018,000		873,352
senior bond, 6.75%, 9/21/47		Mexico		798,000		702,360
senior bond, 6.35%, 2/12/48		Mexico		615,000		522,621
senior bond, 6.95%, 1/28/60		Mexico		415,000		366,781
senior note, 3.50%, 1/30/23		Mexico		959,000		976,022
dsenior note, 144A, 6.875%, 10/16/25		Mexico		297,000		325,007
senior note, 4.50%, 1/23/26		Mexico		288,000		291,528
dQatar Petroleum, senior bond, Reg S, 3.30%, 7/12/51		Qatar		700,000		724,535
dSA Global Sukuk Ltd., senior bond, Reg S, 2.694%, 6/17/31		Saudi Arabia		200,000		204,964

28

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Corporate Bonds and Notes (continued)
Oil, Gas & Consumable Fuels (continued)
Sabine Pass Liquefaction LLC, senior secured note, 4.50%, 5/15/30		United States		270,000		$	313,029
dSaudi Arabian Oil Co., senior bond, 144A, 3.25%, 11/24/50		Saudi Arabia		285,000			280,241
bTalos Production Inc., secured note, 12.00%, 1/15/26		United States		518,000			535,516
dThai Oil PCL, senior bond, Reg S, 3.625%, 1/23/23		Thailand		200,000			206,345
dTullow Oil PLC, senior secured note, 144A, 10.25%, 5/15/26		Ghana		2,278,000			2,360,578
dYPF Sociedad Anonima,
senior bond, Reg S, 8.50%, 7/28/25		Argentina		831,000			714,660
senior bond, 144A, 6.95%, 7/21/27		Argentina		105,000			78,925
senior note, Reg S, 8.75%, 4/04/24		Argentina		1,267,000			1,173,179
senior note, Reg S, 8.50%, 3/23/25		Argentina		1,097,000			1,023,117
							17,680,438
Paper & Forest Products 0.0%†
Suzano Austria GMBH, senior bond, 3.75%, 1/15/31		Brazil		160,000			168,202
Pharmaceuticals 0.2%
d,fENDO Dac / ENDO Finance LLC / ENDO Finco Inc., secured note, 144A, 9.50%,  7/31/27		United States		954,000			938,612
Teva Pharmaceutical Finance Netherlands II BV, senior note, 6.00%, 1/31/25		Israel		335,000	EUR		429,088
Teva Pharmaceutical Finance Netherlands III BV,
senior bond, 3.15%, 10/01/26		Israel		220,000			210,405
senior bond, 4.10%, 10/01/46		Israel		1,145,000			998,188
senior note, 2.80%, 7/21/23		Israel		390,000			385,144
							2,961,437
Pipelines 0.0%†
dGalaxy Pipeline Assets Bidco Ltd., senior secured bond, 144A, 2.94%, 9/30/40		United Arab Emirates		200,000			203,706
Real Estate Management & Development 0.7%
dAgile Group Holdings Ltd., senior secured note, Reg S, 6.70%, 3/07/22		China		200,000			203,000
dChina Evergrande Group, Reg S,
senior note, 8.25%, 3/23/22		China		352,000			164,560
senior note, 8.75%, 6/28/25		China		648,000			236,524
senior secured note, 9.50%, 4/11/22		China		98,000			43,610
senior secured note, 11.50%, 1/22/23		China		200,000			81,500
dCIFI Holdings Group Co. Ltd., senior note, Reg S,
5.50%, 1/23/22		China		200,000			202,499
5.95%, 10/20/25		China		200,000			210,290
4.45%, 8/17/26		China		200,000			198,014
dCountry Garden Holdings Co. Ltd., senior secured note, Reg S,
7.125%, 1/27/22		China		200,000			204,153
4.75%, 7/25/22		China		400,000			405,618
4.75%, 1/17/23		China		2,000,000			2,040,670
dEasy Tactic Ltd., senior secured note, Reg S, 8.125%, 2/27/23		China		200,000			153,250
dExpand Lead Ltd., senior note, Reg S, 4.95%, 7/22/26		China		400,000			408,087
dGemdale Ever Prosperity Investment Ltd., E, senior note, Reg S, 4.95%, 8/12/24		China		300,000			306,772
dGreenland Global Investment Ltd., senior bond, Reg S, 5.875%, 7/03/24		China		200,000			157,000
dKaisa Group Holdings Ltd., senior secured note, Reg S,
11.25%, 4/09/22		China		350,000			351,575
9.75%, 9/28/23		China		200,000			190,250
11.70%, 11/11/25		China		200,000			188,750
dLeading Affluence Ltd., senior bond, Reg S, 4.50%, 1/24/23		China		500,000			519,480
dLogan Group Co. Ltd., senior note, Reg S, 5.75%, 1/03/22		China		400,000			404,000

29

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Corporate Bonds and Notes (continued)
Real Estate Management & Development (continued)
dLogan Group Co. Ltd., senior note, Reg S, (continued)
6.50%, 7/16/23		China		200,000		$	204,635
4.70%, 7/06/26		China		300,000			297,021
dNew Metro Global Ltd., senior note, Reg S, 4.625%, 10/15/25		China		200,000			198,000
d,gOverseas Chinese Town Asia Holdings Ltd., senior note, Reg S, 4.50% to 7/15/23, FRN  thereafter, Perpetual		China		200,000			206,830
dPowerlong Real Estate Holdings Ltd., Reg S,
senior note, 4.00%, 7/25/22		China		200,000			199,500
senior note, 4.90%, 5/13/26		China		200,000			195,000
senior secured note, 4.875%, 9/15/21		China		200,000			200,199
dShimao Group Holdings Ltd., senior secured note, Reg S, 6.375%, 10/15/21		China		400,000			401,970
dSunac China Holdings Ltd., Reg S,
senior note, 6.80%, 10/20/24		China		300,000			297,771
senior secured note, 6.65%, 8/03/24		China		200,000			198,013
senior secured note, 6.50%, 1/26/26		China		200,000			194,264
dTimes China Holdings Ltd., senior secured note, Reg S, 5.55%, 6/04/24		China		200,000			199,385
dVanke Real Estate Hong Kong Co. Ltd., senior note,
hFRN, Reg S, 1.679%, (3-Month USD LIBOR + 1.55%), 5/25/23		China		400,000			401,194
Reg S, 4.15%, 4/18/23		China		200,000			208,587
							10,071,971
Road & Rail 0.2%
dUber Technologies Inc., senior note, 144A,
7.50%, 5/15/25		United States		295,000			314,913
8.00%, 11/01/26		United States		1,085,000			1,156,881
7.50%, 9/15/27		United States		455,000			496,519
6.25%, 1/15/28		United States		200,000			214,750
4.50%, 8/15/29		United States		1,145,000			1,128,918
							3,311,981
Semiconductors & Semiconductor Equipment 0.2%
Broadcom Inc., senior bond, 4.30%, 11/15/32		United States		415,000			475,393
dMarvell Technology Inc., senior bond, 144A, 2.95%, 4/15/31		United States		95,000			99,025
dMicrochip Technology Inc., senior secured note, 144A, 0.983%, 9/01/24		United States		85,000			84,959
Micron Technology Inc., senior bond,
5.327%, 2/06/29		United States		385,000			466,300
4.663%, 2/15/30		United States		140,000			164,506
dTSMC Global Ltd., senior bond, Reg S, 2.25%, 4/23/31		Taiwan		1,480,000			1,497,163
							2,787,346
Specialty Retail 0.4%
dCarvana Co., senior note, 144A,
5.625%, 10/01/25		United States		180,000			187,425
5.50%, 4/15/27		United States		137,000			141,573
5.875%, 10/01/28		United States		353,000			368,885
4.875%, 9/01/29		United States		636,000			630,406
dChina Grand Automotive Services Ltd., E, senior note, Reg S, 9.125%, 1/30/24		China		333,000			290,959
dDouglas GMBH, senior secured note, 144A, 6.00%, 4/08/26		Germany		1,714,000	EUR		2,049,779
dGuitar Center Inc., senior secured note, 144A, 8.50%, 1/15/26		United States		754,000			803,952
d,jKirk Beauty Sun GMBH, senior note, 144A, PIK, 8.25%, 10/01/26		Germany		382,000	EUR		447,688
dLS Finance 2017 Ltd., senior note, Reg S, 4.80%, 6/18/26		Hong Kong		200,000			195,538

30

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*		Value
Corporate Bonds and Notes (continued)
Specialty Retail (continued)
dLS Finance 2017 Ltd., senior note, Reg S, (continued)
E, 4.875%, 7/15/24		Hong Kong		200,000	$	199,263
						5,315,468
Thrifts & Mortgage Finance 0.1%
dIIFL Finance Ltd., E, senior secured note, Reg S, 5.875%, 4/20/23		India		400,000		392,000
dIndiabulls Housing Finance Ltd., E, senior secured note, Reg S, 6.375%, 5/28/22		India		400,000		393,998
						785,998
Trading Companies & Distributors 0.1%
Air Lease Corp.,
senior bond, 3.125%, 12/01/30		United States		360,000		369,315
f,gjunior sub. note, B, 4.65% to 6/15/26, FRN thereafter, Perpetual		United States		180,000		189,270
Aircastle Ltd.,
d,gjunior sub. note, 144A, 5.25%, Perpetual		United States		55,000		55,289
senior note, 4.25%, 6/15/26		United States		310,000		341,074
dBOC Aviation Ltd., G, senior note, Reg S, 3.00%, 5/23/22		Singapore		200,000		202,366
						1,157,314
Transportation Infrastructure 0.0%†
dAdani Ports & Special Economic Zone Ltd.,
senior bond, Reg S, 3.828%, 2/02/32		India		500,000		505,751
senior note, 144A, 4.20%, 8/04/27		India		200,000		212,376
						718,127
Wireless Telecommunication Services 0.1%
dBharti Airtel Ltd., senior bond, 144A, 3.25%, 6/03/31		India		200,000		202,750
T-Mobile USA Inc.,
senior bond, 3.50%, 4/15/31		United States		220,000		234,520
senior note, 3.375%, 4/15/29		United States		455,000		481,303
						918,573
Total Corporate Bonds and Notes (Cost $110,818,488)						115,591,976
Corporate Bonds and Notes in Reorganization 0.2%
Airlines 0.1%
d,lLATAM Finance Ltd., senior note, 144A,
6.875%, 4/11/24		Chile		200,000		181,750
7.00%, 3/01/26		Chile		800,000		730,696
						912,446
Diversified Telecommunication Services 0.0%†
d,lIntelsat Jackson Holdings SA, senior secured note, first lien, 144A, 9.50%, 9/30/22		Luxembourg		304,000		362,140
Metals & Mining 0.1%
d,lSamarco Mineracao SA, senior bond, Reg S,
4.125%, 11/01/22		Brazil		925,000		648,656
5.75%, 10/24/23		Brazil		184,000		139,610
						788,266
Road & Rail 0.0%†
e,lHertz Corp. Escrow, senior note, zero cpn., 1/15/28		United States		1,584,000		—
Total Corporate Bonds and Notes in Reorganization (Cost $2,076,046)						2,062,852

31

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
hSenior Floating Rate Interests 0.4%
Airlines 0.0%†
United Airlines Inc., Term Loan B, 4.50%, (1-Month USD LIBOR + 3.75%), 4/14/28		United States		99,750		$	100,113
Communications Equipment 0.0%†
Riverbed Technology Inc., Term Loan B, 7.50%, (3-Month USD LIBOR + 6.50%), 12/31/26		United States		369,295			284,972
Diversified Financial Services 0.1%
MPH Acquisition Holdings LLC, Term Loan B, 4.75%, (3-Month USD LIBOR + 4.25%), 8/17/28		United States		977,829			971,595
Ziggo BV, Term Loan H, 3.00%, (3-Month EURIBOR + 3.00%), 1/31/29		United States		115,000			134,737
							1,106,332
Diversified Telecommunication Services 0.2%
Frontier Communications Corp., Term Loan DIP, 4.50%, (1- Month USD LIBOR + 3.75%), 10/08/21		United States		259,730			260,056
mIntelsat Jackson Holdings SA,
Term Loan B4, 8.75%, (1-Month USD LIBOR + 4.50%), 1/02/24		United States		2,000,000			2,042,500
Term Loan DIP, 6.50%, (1-Month USD LIBOR + 5.50%), 7/13/22		United States		91,150			91,976
							2,394,532
Entertainment 0.0%†
Playtika Holding Corp., Term Loan B, 2.835%, (1-Month USD LIBOR + 2.75%), 3/13/28		United States		219,450			218,964
Equity Real Estate Investment Trusts (REITs) 0.1%
mThe GEO Group Inc., Term Loan B, 2.75%, (3-Month USD LIBOR + 2.00%), 3/22/24		United States		263,716			247,003
McCarthy & Stone PLC, Term Loan B, 7.00%, 12/16/25		United Kingdom		170,938	GBP		234,133
							481,136
Household Durables 0.0%†
Weber-Stephen Products LLC, Term Loan B, 4.00%, (1-Month USD LIBOR + 3.25%), 10/30/27		United States		69,608			69,731
Insurance 0.0%†
AmWINS Group Inc., Term Loan B, 3.00%, (1-Month USD LIBOR + 2.25%), 2/19/28		United States		42,812			42,458
Pharmaceuticals 0.0%†
Jazz Pharmaceuticals PLC, Term Loan B, 4.00%, (1-Month USD LIBOR + 3.50%), 4/22/28		United States		85,000			85,123
Professional Services 0.0%†
CoreLogic Inc., Term Loan B, 4.00%, (1-Month USD LIBOR + 3.50%), 4/14/28		United States		170,000			169,601
Total Senior Floating Rate Interests (Cost $4,811,043)							4,952,962
Credit-Linked Notes 0.4%
dCitigroup Global Markets Holdings Inc., (Egypt), E, senior note, 144A, zero cpn., 9/30/21		Egypt		11,143,016	EGP		703,018
dCitigroup Global Markets Holdings Inc., (Egypt), E, senior note, 144A, zero cpn., 12/16/21		Egypt		11,472,817	EGP		705,439
dHSBC Bank PLC, (Egypt), senior note, 144A, zero cpn., 12/23/21		Egypt		7,925,000	EGP		485,949
dHSBC Bank PLC, (Egypt), senior note, 144A, zero cpn., 2/10/22		Egypt		13,350,000	EGP		805,422
dICBC Standard Bank PLC, (Egypt), EMTN, 144A, zero cpn., 9/30/21		Egypt		38,826,172	EGP		2,442,092

32

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Credit-Linked Notes (continued)
dJPMorgan Chase Bank NA, (Egypt), EMTN, senior note, 144A, zero cpn., 9/16/21		Egypt		11,801,000	EGP	$	747,522
Total Credit-Linked Notes (Cost $5,892,841)							5,889,442
Foreign Government and Agency Securities 4.7%
dBanque Centrale de Tunisie International Bond, senior bond, Reg S, 5.75%, 1/30/25		Tunisia		888,000			785,233
Brazil Notas Do Tesouro Nacional Serie F, NTNF, senior bond, 10.00%, 1/01/25		Brazil		2,332,000	BRL		456,801
dExport-Import Bank of Korea, senior note,
144A, 4.89%, 8/09/23		South Korea		35,800,000	INR		491,523
Reg S, 6.75%, 8/09/22		South Korea		7,100,000	INR		99,169
dGovernment of Angola, senior bond, Reg S,
8.00%, 11/26/29		Angola		1,814,000			1,916,146
9.375%, 5/08/48		Angola		376,000			400,989
9.125%, 11/26/49		Angola		1,528,000			1,600,664
Government of Argentina, senior bond,
2.00%, 1/09/38		Argentina		6,442,995			2,662,052
2.50%, 7/09/41		Argentina		2,370,073			928,618
dGovernment of Bahamas, senior bond, 144A, 8.95%, 10/15/32		Bahamas		721,000			787,692
dGovernment of Bahrain, senior bond, Reg S, 7.00%, 1/26/26		Bahrain		467,000			523,587
Government of Colombia, B, senior bond, 7.00%, 6/30/32		Colombia		7,960,100,000	COP		2,068,836
dGovernment of Ecuador, Reg S,
senior bond, 1.00%, 7/31/35		Ecuador		1,294,113			938,245
senior note, 5.00%, 7/31/30		Ecuador		2,070,412			1,847,863
Government of Egypt,
dsenior bond, Reg S, 7.50%, 1/31/27		Egypt		1,046,000			1,168,206
dsenior bond, Reg S, 7.60%, 3/01/29		Egypt		789,000			868,018
dsenior bond, 144A, 5.875%, 2/16/31		Egypt		487,000			482,334
dsenior bond, Reg S, 8.70%, 3/01/49		Egypt		222,000			235,312
dsenior bond, Reg S, 8.875%, 5/29/50		Egypt		200,000			216,018
senior note, zero cpn., 9/21/21		Egypt		23,025,000	EGP		1,460,148
dGovernment of Ghana,
senior bond, Reg S, 8.875%, 5/07/42		Ghana		1,154,000			1,151,495
senior bond, Reg S, 8.95%, 3/26/51		Ghana		1,315,000			1,294,683
senior note, 144A, zero cpn., 4/07/25		Ghana		278,000			219,331
senior note, 144A, 7.75%, 4/07/29		Ghana		372,000			376,699
Government of Indonesia, FR68, senior bond, 8.375%, 3/15/34		Indonesia		52,911,000,000	IDR		4,253,284
Government of Italy, senior note, 2.375%, 10/17/24		Italy		350,000			364,444
dGovernment of Jordan, 144A,
senior bond, 5.85%, 7/07/30		Jordan		386,000			408,221
senior note, 4.95%, 7/07/25		Jordan		578,000			608,273
Government of Mexico, senior bond,
4.28%, 8/14/41		Mexico		350,000			375,354
3.771%, 5/24/61		Mexico		455,000			435,237
dGovernment of Nigeria, senior note, Reg S, 7.625%, 11/21/25		Nigeria		1,531,000			1,716,442
dGovernment of Oman,
senior bond, Reg S, 4.75%, 6/15/26		Oman		900,000			935,454
senior bond, 144A, 6.25%, 1/25/31		Oman		418,000			456,911
senior bond, Reg S, 6.75%, 1/17/48		Oman		412,000			422,269
senior bond, 144A, 7.00%, 1/25/51		Oman		286,000			299,092
senior note, 144A, 4.875%, 6/15/30		Oman		221,000			232,226
dGovernment of Paraguay, senior bond, Reg S, 4.625%, 1/25/23		Paraguay		2,414,000			2,529,896
Government of Peru, senior bond, 6.15%, 8/12/32		Peru		9,320,000	PEN		2,250,807

33

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*				Value
Foreign Government and Agency Securities (continued)
Government of Russia,
senior bond, 6233, 6.10%, 7/18/35		Russia		111,039,000		RUB	$	1,384,747
senior note, 6227, 7.40%, 7/17/24		Russia		98,076,000		RUB		1,363,036
senior note, 6229, 7.15%, 11/12/25		Russia		74,375,000		RUB		1,029,655
dGovernment of Saudi Arabia, senior bond,
144A, 2.75%, 2/03/32		Saudi Arabia		910,000				947,069
144A, 3.75%, 1/21/55		Saudi Arabia		354,000				377,697
Reg S, 2.75%, 2/03/32		Saudi Arabia		302,000				314,302
Government of South Africa, senior bond,
2030, 8.00%, 1/31/30		South Africa		56,638,538		ZAR		3,727,100
2032, 8.25%, 3/31/32		South Africa		25,977,596		ZAR		1,652,033
2035, 8.875%, 2/28/35		South Africa		13,939,884		ZAR		882,955
2037, 8.50%, 1/31/37		South Africa		24,425,000		ZAR		1,460,582
Government of Turkey, senior note, 6.375%, 10/14/25		Turkey		875,000				926,726
dGovernment of Ukraine,
senior bond, Reg S, 7.375%, 9/25/32		Ukraine		751,000				804,719
senior bond, Reg S, 1.258%, 5/31/40		Ukraine		4,955,000				5,663,565
senior note, 144A, 6.876%, 5/21/29		Ukraine		302,000				319,815
senior note, Reg S, 6.876%, 5/21/29		Ukraine		966,000				1,022,984
dGovernment of Zambia, Reg S,
senior bond, 5.375%, 9/20/22		Zambia		2,168,000				1,664,907
senior bond, 8.97%, 7/30/27		Zambia		512,000				404,282
dHazine Mustesarligi Varlik Kiralama AS, senior note, Reg S, 5.125%, 6/22/26		Turkey		950,000				958,045
International Finance Corp., senior note, 5.85%, 11/25/22		Supranationaln		8,120,000		INR		113,046
dMalaysia Wakala Sukuk Bhd, senior bond, Reg S, 3.075%, 4/28/51		Malaysia		500,000				525,620
Mexican Bonos, M, senior note, 6.75%, 3/09/23		Mexico		9,060,800	º	MXN		459,654
iProvincia de Buenos Aires,
hFRN, 37.979%, (ARS BADLAR + 3.83%), 5/31/22		Argentina		18,295,000		ARS		100,706
d,h144A, FRN, Reg S, 37.892%, (ARS BADLAR + 3.75%), 4/12/25		Argentina		3,670,000		ARS		17,087
dsenior bond, 144A, 3.90%, 9/01/37		Argentina		330,000		ARS		156,750
dThe Third Pakistan International Sukuk Co. Ltd., senior note, Reg S, 5.50%, 10/13/21		Pakistan		200,000				200,625
Total Foreign Government and Agency Securities (Cost $64,094,777)								64,745,279
Foreign Government and Agency Securities in Reorganization (Cost $240,042) 0.0%†
lGovernment of Lebanon, G, senior bond, 6.375%, 3/09/20		Lebanon		1,784,000				231,920
U.S. Government and Agency Securities 0.1%
U.S. Treasury Bond,
1.875%, 2/15/41		United States		2,000				2,016
1.625%, 11/15/50		United States		556,000				517,493
1.875%, 2/15/51		United States		367,000				362,384
U.S. Treasury Note, 1.625%, 5/15/31		United States		738,000				761,062
Total U.S. Government and Agency Securities (Cost $1,573,108)								1,642,955
Asset-Backed Securities and Commercial Mortgage-Backed Securities 6.7%
Diversified Financial Services 5.2%
dAccelerated Assets LLC, 2018-1, B, 144A, 4.51%, 12/02/33		United States		48,710				50,403

34

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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)
pACE Securities Corp. Home Equity Loan Trust, 2003-FM1, M1, FRN, 1.374%, (1-Month USD LIBOR + 1.29%), 11/25/32		United States		1,306,234	$	1,329,110
dAdams Outdoor Advertising LP, 2018-1, A, 144A, 4.81%, 11/15/48		United States		177,225		190,490
d,pAGL CLO 3 Ltd., 2020-3A, C, 144A, FRN, 2.276%, (3-Month USD LIBOR + 2.15%), 1/15/33		United States		285,000		287,367
dAIM Aviation Finance Ltd., 2015-1A, B1, 144A, 5.072%, 2/15/40		United States		170,624		67,004
d,pAllegro CLO VI Ltd., 2018-2A, D, 144A, FRN, 2.884%, (3-Month USD LIBOR + 2.75%), 1/17/31		United States		250,000		244,149
dAmerican Credit Acceptance Receivables Trust, 144A,
2020-3, D, 2.40%, 6/15/26		United States		200,000		206,060
2020-4, D, 1.77%, 12/14/26		United States		185,000		188,220
AmeriCredit Automobile Receivables Trust, 2020-3, D, 1.49%, 9/18/26		United States		305,000		309,021
d,pApex Credit CLO Ltd., 2018-1A, DR, 144A, FRN, 3.529%, (3- Month USD LIBOR + 3.40%),  10/27/28		United States		1,000,000		995,863
dArbys Funding LLC, 2020-1A, A2, 144A, 3.237%, 7/30/50		United States		99,000		104,368
pArgent Securities Inc., 2004-W3, M4, FRN, 3.745%, (1-Month USD LIBOR + 4.58%), 2/25/34		United States		212,838		228,254
dAscentium Equipment Receivables Trust, 2017-2A, C, 144A, 2.87%, 8/10/22		United States		25,000		25,098
dAvis Budget Rental Car Funding AESOP LLC, 144A,
2020-2A, B, 2.96%, 2/20/27		United States		100,000		106,424
2020-2A, C, 4.25%, 2/20/27		United States		100,000		109,369
d,pBarings CLO Ltd., 2019-4A, C, 144A, FRN, 2.926%, (3-Month USD LIBOR + 2.80%), 1/15/33		United States		400,000		401,661
d,pBarings Euro CLO BV, 2014-1, 144A, FRN, 1.90%, (3-Month EURIBOR + 1.90%), 7/15/31		Netherlands		500,000		592,775
d,pBattalion CLO XIV Ltd., 2019-14A, E, 144A, FRN, 6.814%, (3- Month USD LIBOR + 6.68%), 4/20/32		United States		250,000		250,666
dBayview Opportunity Master Fund V Trust, 2020-RN3, A1, 144A, 3.228%, 9/25/35		United States		625		627
qBear Stearns ALT-A Trust, 2006-3, 21A1, FRN, 2.77%, 5/25/36		United States		1,162,895		991,947
dBlackbird Capital Aircraft Lease Securitization Ltd., 2016-1A, A, 144A, 4.213%, 12/16/41		United States		181,953		183,591
d,pBNPP IP CLO Ltd., 2017-2A, DR, 144A, FRN, 3.629%, (3-Month USD LIBOR + 3.50%), 10/30/25		United States		1,250,000		1,245,142
d,pBX Commercial Mortgage Trust, 2019-XL, E, 144A, FRN, 1.896%, (1-Month USD LIBOR + 1.80%), 10/15/36		United States		1,161,771		1,165,226
California Republic Auto Receivables Trust, 2018-1, D, 4.33%, 4/15/25		United States		115,000		118,750
d,pCanyon Capital CLO, 2019-2A, E, 144A, FRN, 7.276%, (3-Month USD LIBOR + 7.15%), 10/15/32		United States		250,000		250,698
d,pCarlyle US CLO Ltd., 2017-4A, C, 144A, FRN, 2.926%, (3-Month USD LIBOR + 2.80%), 1/15/30		United States		250,000		241,184
Carmax Auto Owner Trust, 2018-4, D, 4.15%, 4/15/25		United States		60,000		62,609
dCastlelake Aircraft Structured Trust, 2021-1A, A, 144A, 3.474%, 1/15/46		United States		395,355		409,158
d,pCatamaran CLO Ltd., 144A, FRN,
2014-2, C, 3.634%, (3-Month USD LIBOR + 3.50%), 10/18/26		United States		2,030,000		2,042,812
2014-2A, D, 4.984%, (3-Month USD LIBOR + 4.85%), 10/18/26		United States		1,000,000		985,950
2017-1A, CR, 1.929%, (3-Month USD LIBOR + 1.80%), 1/27/28		United States		250,000		250,139
d,pCHCP Ltd., 2021-FL1, C, 144A, FRN, 2.265%, (1-Month USD LIBOR + 2.21%), 2/15/38		United States		1,000,000		1,005,049

35

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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)
CHL Mortgage Pass-Through Trust,
p2003-15, 1A1, FRN, 0.584%, (1-Month USD LIBOR + 0.50%), 6/25/42		United States		98,429	$	98,189
2004-4, M, 5.50%, 5/25/34		United States		903,655		633,808
2006-21, A8, 5.75%, 2/25/37		United States		360,504		273,294
q2006-HYB1, 2A2C, FRN, 2.691%, 3/20/36		United States		1,201,394		1,172,773
q2006-HYB4, 3B, FRN, 3.665%, 6/20/36		United States		1,611,529		1,374,127
dCLI Funding VIII LLC, 2021-1A, A, 144A, 1.64%, 2/18/46		United States		380,086		379,715
d,pConnecticut Avenue Securities Trust, 2020-R01, 1M2, 144A,
FRN, 2.134%, (1-Month USD LIBOR + 2.05%), 1/25/40		United States		57,446		57,784
dCoreVest American Finance Trust, 144A,
2019-2, B, 3.424%, 6/15/52		United States		100,000		108,415
2020-4, C, 2.25%, 12/15/52		United States		100,000		99,814
dCSMC Trust, 144A,
q2019-RP10, A1, FRN, 3.011%, 12/26/59		United States		145,550		146,500
q2020-RPL3, A1, FRN, 2.691%, 3/25/60		United States		113,982		115,584
2021-RPL1, A2, 3.937%, 9/27/60		United States		155,000		155,697
d,pCutwater Ltd., 2017-1A, CR, 144A, FRN, 3.726%, (3-Month USD LIBOR + 3.60%), 7/15/26		United States		1,000,000		1,003,075
dDB Master Finance LLC, 2019-1A, A23, 144A, 4.352%, 5/20/49		United States		147,000		161,912
d,q DBUBS Mortgage Trust, 2017-BRBK, D, 144A, FRN, 3.648%, 10/10/34		United States		100,000		103,940
dDomino’s Pizza Master Issuer LLC, 144A,
2017-1A, A23, 4.118%, 7/25/47		United States		164,050		177,500
2018-1A, A2II, 4.328%, 7/25/48		United States		175,050		190,475
2019-1A, A2, 3.668%, 10/25/49		United States		167,450		181,219
2021-1A, A2I, 2.662%, 4/25/51		United States		224,438		234,185
Drive Auto Receivables Trust, 2018-3, D, 4.30%, 9/16/24		United States		17,257		17,596
dDT Auto Owner Trust, 2020-3A, D, 144A, 1.84%, 6/15/26		United States		80,000		81,701
dEducation Funding Trust Trust, 2020-A, A, 144A, 2.79%, 7/25/41		United States		117,679		120,895
Exeter Automobile Receivables Trust,
d2020-2A, D, 144A, 4.73%, 4/15/26		United States		90,000		96,017
2020-3A, C, 1.32%, 7/15/25		United States		145,000		146,776
qFannie Mae Grantor Trust, 2004-T5, AB7, FRN, 0.589%, 5/28/35		United States		325,609		315,170
dFirst Investors Auto Owner Trust, 2019-2A, D, 144A, 2.80%, 12/15/25		United States		40,000		41,048
dFirstKey Homes Trust, 144A,
2020-SFR1, F1, 3.638%, 8/17/37		United States		225,000		231,421
2020-SFR2, F1, 3.017%, 10/19/37		United States		320,000		328,017
dFlagship Credit Auto Trust, 2019-4, D, 144A, 3.12%, 1/15/26		United States		90,000		94,291
d,pFREMF Mortgage Trust, 2021-KF112, D, 144A, FRN, 3.046%, (1-Month USD LIBOR + 2.95%), 5/15/28		United States		1,600,000		1,601,454
d,pGalaxy XXVI CLO Ltd., 2018-26A, E, 144A, FRN, 5.981%, (3-Month USD LIBOR + 5.85%), 11/22/31		United States		260,000		256,360
dGLS Auto Receivables Trust, 144A,
2020-1A, C, 2.72%, 11/17/25		United States		150,000		154,032
2020-3A, C, 1.92%, 5/15/25		United States		330,000		335,889
d,pGPMT Ltd., 144A, FRN,
2018-FL1, C, 2.238%, (1-Month USD LIBOR + 2.15%), 11/19/35		United States		1,400,000		1,400,081
2019-FL2, D, 3.038%, (1-Month USD LIBOR + 2.95%), 2/22/36		United States		800,000		797,899
d,pGrand Avenue CRE, 2019-FL1, B, 144A, FRN, 1.947%, (1-Month USD LIBOR + 1.85%), 6/15/37		United States		1,200,000		1,203,331
d,pGrosvenor Place CLO BV, 2015-1X, FRN, Reg S, 7.25%, (3-Month EURIBOR + 7.25%), 10/30/29		Netherlands		798,000		940,701

36

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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)
d,pGSRPM Mortgage Loan Trust, 2002-1A, M1, 144A, FRN, 2.034%, (1-Month USD LIBOR + 1.95%), 11/25/31		United States		899,129	$	904,907
d,pHalcyon Loan Advisors Funding Ltd., 2014-1A, D, 144A, FRN, 3.634%, (3-Month USD LIBOR + 3.50%), 4/18/26		United States		1,490,000		1,486,866
dHardee’s Funding LLC, 2020-1A, A2, 144A, 3.981%, 12/20/50		United States		164,175		175,797
d,pHayfin Kingsland XI Ltd., 2019-2A, E, 144A, FRN, 7.034%, (3-Month USD LIBOR + 6.90%), 7/20/32		United States		70,000		68,950
dHPEFS Equipment Trust, 2020-2A, D, 144A, 2.79%, 7/22/30		United States		325,000		336,442
dKestrel Aircraft Funding Ltd., 2018-1A, A, 144A, 4.25%, 12/15/38		United States		210,238		209,922
Legacy Mortgage Asset Trust,
d2019-GS3, A1, 144A, 3.75%, 4/25/59		United States		94,351		95,135
d2019-GS4, A1, 144A, 3.438%, 5/25/59		United States		148,264		148,557
2019-PR1, A2, 4.50%, 9/25/59		United States		1,600,000		1,599,062
d2020-GS1, A1, 144A, 2.882%, 10/25/59		United States		231,541		232,802
pLong Beach Mortgage Loan Trust, 2005-1, M6, FRN, 1.659%, (1-Month USD LIBOR + 1.58%), 2/25/35		United States		2,609,066		2,716,423
d,pMarathon CLO V Ltd., 2017-5A, CR, 144A, FRN, 2.881%, (3-Month USD LIBOR + 2.75%), 11/21/27		United States		2,200,000		2,130,310
d,pMarathon CLO VI Ltd., 2018-6A, CR2, 144A, FRN, 3.621%, (3-Month USD LIBOR + 3.50%), 5/13/28		United States		1,000,000		983,906
dMarlette Funding Trust, 2019-4A, B, 144A, 2.95%, 12/17/29		United States		290,000		293,939
pMerrill Lynch Mortgage Investors Trust Series, 2007-MLN1, A2D, FRN, 0.404%, (1-Month USD LIBOR + 0.32%), 3/25/37		United States		918,062		863,623
d,qMill City Mortgage Loan Trust, 2021-NMR1, M3, 144A, FRN, 2.50%, 11/25/60		United States		100,000		99,386
pMortgageIT Mortgage Loan Trust, 2006-1, 2A1B, FRN, 0.644%, (1-Month USD LIBOR + 0.56%), 4/25/36		United States		610,887		235,861
d,pMountain View CLO 2014-1 Ltd., 2018-1A, DRR, 144A, FRN, 3.776%, (3-Month USD LIBOR + 3.65%), 10/15/26		United States		2,000,000		2,006,060
dMVW LLC, 2020-1A, C, 144A, 4.21%, 10/20/37		United States		219,107		232,582
dMVW Owner Trust, 2019-1A, C, 144A, 3.33%, 11/20/36		United States		60,481		62,124
d Navient Private Education Refi Loan Trust, 144A,
2019-FA, B, 3.12%, 8/15/68		United States		210,000		217,492
2019-GA, B, 3.08%, 10/15/68		United States		140,000		145,590
d,pNeuberger Berman CLO XIV Ltd., 2020-14A, CR2, 144A, FRN, 2.032%, (3-Month USD LIBOR + 1.90%), 1/28/30		United States		410,000		410,792
d,pNeuberger Berman Loan Advisers CLO Ltd., 2018-27A, E, 144A, FRN, 5.326%, (3-Month USD LIBOR + 5.20%), 1/15/30		United States		350,000		344,015
pNomura Home Equity Loan Inc. Home Equity Loan Trust Series, 2006-WF1, M4, FRN, 0.639%, (1-Month USD LIBOR + 0.56%), 3/25/36		United States		1,319,630		1,311,314
d,pOctagon Investment Partners XXII Ltd., 2018-1A, CRR, 144A, FRN, 2.038%, (3-Month USD LIBOR + 1.90%), 1/22/30		United States		250,000		249,500
d,pOHA Credit Funding 2 Ltd., 2021-2A, DR, 144A, FRN, 3.434%, (3-Month USD LIBOR + 3.30%), 4/21/34		United States		335,000		335,029
d,pOHA Credit Funding 4 Ltd., 2019-4A, E, 144A, FRN, 6.284%, (3-Month USD LIBOR + 6.10%), 10/22/32		United States		320,000		319,040
dOneMain Financial Issuance Trust, 144A,
2015-3A, B, 4.16%, 11/20/28		United States		155,000		155,612
2020-2A, C, 2.76%, 9/14/35		United States		100,000		104,204
d,pPalmer Square CLO Ltd., 2018-3A, D, 144A, FRN, 4.525%, (3-Month USD LIBOR + 4.40%), 8/15/26		United States		250,000		249,775
d,pPikes Peak CLO 3, 2019-3A, E, 144A, FRN, 6.985%, (3-Month USD LIBOR + 6.86%), 4/25/30		United States		250,000		250,355
d,pPikes Peak CLO 4, 2021-4A, ER, 144A, FRN, 6.721%, (3-Month USD LIBOR + 6.61%), 7/15/34		United States		250,000		249,029

37

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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)
dPlanet Fitness Master Issuer LLC, 2019-1A, A2, 144A, 3.858%, 12/05/49		United States		147,750	$	152,750
dPrestige Auto Receivables Trust, 144A,
2019-1A, E, 3.90%, 5/15/26		United States		100,000		102,835
2020-1A, E, 3.67%, 2/15/28		United States		100,000		103,473
dProgress Residential Trust, 144A,
2018-SFR3, E, 4.873%, 10/17/35		United States		100,000		100,279
2019-SFR1, E, 4.466%, 8/17/35		United States		115,000		116,607
2019-SFR2, E, 4.142%, 5/17/36		United States		175,000		178,827
2020-SFR3, F, 2.796%, 10/17/27		United States		100,000		100,991
2021-SFR2, E2, 2.647%, 4/19/38		United States		100,000		100,958
2021-SFR4, F, 3.407%, 5/17/38		United States		230,000		233,311
2021-SFR7, F, 3.834%, 8/17/40		United States		260,000		260,905
d,qRBSSP Resecuritization Trust, 2009-12, 17A2, 144A, FRN, 2.454%, 10/25/35		United States		327,730		324,821
dRepublic Finance Issuance Trust, 2019-A, A, 144A, 3.43%, 11/22/27		United States		240,000		242,312
Santander Drive Auto Receivables Trust,
2020-1, D, 5.35%, 3/15/28		United States		240,000		261,458
2020-2, D, 2.22%, 9/15/26		United States		100,000		102,233
2020-4, D, 1.48%, 1/15/27		United States		305,000		309,723
pSaxon Asset Securities Trust, 2002-3, M2, FRN, 2.672%, (1-Month USD LIBOR + 2.59%), 12/25/32		United States		1,133,472		1,130,704
dSCF Equipment Leasing LLC, 2021-1A, E, 144A, 3.56%, 8/20/32		United States		100,000		100,007
d,qSecurity National Mortgage Loan Trust, 2004-1A, AF3, 144A, FRN, 6.42%, 6/25/32		United States		1,749,280		1,535,578
dSierra Timeshare Receivables Funding LLC, 2021-1A, C, 144A, 1.79%, 11/20/37		United States		216,159		217,685
d,pSilvermore CLO Ltd., 2014-1A, C, 144A, FRN, 3.575%, (3-Month USD LIBOR + 3.45%), 5/15/26		United States		1,250,000		1,251,326
dS-Jets Ltd., 2017-1, A, 144A, 3.967%, 8/15/42		Bermuda		391,285		388,429
pSLM Private Credit Student Loan Trust, 2003-B, A3, FRN, 2.806%, (28-Day T-Bill + 1.00%), 3/15/33		United States		200,000		194,646
d,pSMB Private Education Loan Trust, 2017-B, A2B, 144A, FRN, 0.843%, (1-Month USD LIBOR + 0.75%), 10/15/35		United States		57,100		57,367
dSoFi Consumer Loan Program Trust, 144A,
2018-1, B, 3.65%, 2/25/27		United States		51,630		52,217
2019-4, C, 2.84%, 8/25/28		United States		130,000		133,191
dSoFi Professional Loan Program LLC, 2016-A, B, 144A, 3.57%, 1/26/38		United States		30,671		30,984
pSoundview Home Loan Trust, 2006-WF2, M3, FRN, 0.759%, (1-Month USD LIBOR + 0.68%), 12/25/36		United States		1,745,993		2,059,129
dSpringCastle America Funding LLC, 2020-AA, A, 144A, 1.97%, 9/25/37		United States		216,370		218,954
dSprite Ltd., 2017-1, B, 144A, 5.75%, 12/15/37		United States		164,302		147,373
dStack Infrastructure Issuer LLC, 2019-1A, A2, 144A, 4.54%, 2/25/44		United States		121,875		128,789
d,pStaniford Street CLO Ltd., 2014-1A, D, 144A, FRN, 3.619%, (3-Month USD LIBOR + 3.50%), 6/15/25		United States		1,650,000		1,654,408
d,pStarwood Retail Property Trust, 2014-STAR, E, 144A, FRN, 4.496%, (1-Month USD LIBOR + 4.40%), 11/15/27		United States		200,000		4,375
dTextainer Marine Containers VII Ltd., 2021-1A, A, 144A, 1.68%, 2/20/46		Bermuda		182,407		182,029
dTowd Point Mortgage Trust, 144A, FRN,
q2018-5, M1, 3.25%, 7/25/58		United States		100,000		105,132
q2019-2, M1, 3.75%, 12/25/58		United States		200,000		213,268

38

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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)
dTowd Point Mortgage Trust, 144A, FRN, (continued)
p2019-HE1, M2, 1.834%, (1-Month USD LIBOR + 1.75%), 4/25/48		United States		1,481,000	$	1,496,293
d,pTPG Real Estate Finance Issuer Ltd., 2018-FL2, C, 144A, FRN, 2.393%, (1-Month USD LIBOR + 2.30%), 11/15/37		United States		1,000,000		999,399
dTricon American Homes Trust, 2020-SFR2, E1, 144A, 2.73%, 11/17/39		United States		100,000		100,577
dVCAT LLC, 2021-NPL1, A1, 144A, 2.289%, 12/26/50		United States		87,293		87,633
d,pVMC Finance LLC, 144A, FRN,
2019-FL3, C, 2.143%, (1-Month USD LIBOR + 2.05%), 9/15/36		United States		1,145,249		1,138,231
2021-FL4, C, 2.339%, (1-Month USD LIBOR + 2.25%), 6/16/36		United States		1,000,000		1,003,121
d,pVoya CLO Ltd., 2014-3A, D, 144A, FRN, 5.125%, (3-Month USD LIBOR + 5.00%), 7/25/26		United States		2,100,000		2,107,542
d,qWaMu Commercial Mortgage Securities Trust, 2007-SL2, G, 144A, FRN, 2.351%, 12/27/49		United States		2,866,082		2,330,621
dWave Trust, 2017-1A, A, 144A, 3.844%, 11/15/42		United States		185,816		185,270
qWells Fargo Mortgage Backed Securities Trust, 2007-AR6, A2, FRN, 2.697%, 10/25/37		United States		162,633		159,574
dWendy’s Funding LLC, 2018-1A, A2II, 144A, 3.884%, 3/15/48		United States		212,300		227,258
dWestlake Automobile Receivables Trust, 2020-3A, D, 144A, 1.65%, 2/17/26		United States		120,000		122,024
d,pYork CLO-6 Ltd., 2019-1A, D, 144A, FRN, 4.138%, (3-Month USD LIBOR + 4.00%), 7/22/32		United States		455,000		457,011
						71,605,898
Equity Real Estate Investment Trusts (REITs) 0.0%†
dAmerican Homes 4 Rent, 144A,
2014-SFR2, E, 6.231%, 10/17/36		United States		250,000		273,648
2014-SFR3, E, 6.418%, 12/17/36		United States		100,000		110,428
2015-SFR1, E, 5.639%, 4/17/52		United States		210,000		228,041
dDiamond Resorts Owner Trust, 144A,
2017-1A, C, 6.07%, 10/22/29		United States		18,652		18,950
2018-1, C, 4.53%, 1/21/31		United States		46,756		48,137
2019-1A, B, 3.53%, 2/20/32		United States		45,642		47,186
						726,390
Mortgage Real Estate Investment Trusts (REITs) 1.5%
pAmerican Home Mortgage Investment Trust, 2006-1, 11A1, FRN, 0.364%, (1-Month USD LIBOR + 0.28%), 3/25/46		United States		154,165		149,032
Banc of America Alternative Loan Trust, 2003-8, 1CB1, 5.50%, 10/25/33		United States		4,008		4,155
Banc of America Funding Trust,
2003-1, B2, 6.00%, 5/20/33		United States		172,656		119,934
2007-4, 5A1, 5.50%, 11/25/34		United States		50,339		50,202
qBanc of America Mortgage Trust, 2005-A, 2A1, FRN, 2.621%, 2/25/35		United States		3,158		3,271
d,pBBCMS Mortgage Trust, 2020-BID, B, 144A, FRN, 2.636%, (1-Month USD LIBOR + 2.54%), 10/15/37		United States		210,000		211,939
d,pBCAP LLC Trust, 2012-RR4, 9A7, 144A, FRN, 0.169%, (1-Month USD LIBOR + 0.08%), 11/26/36		United States		414,386		421,045
qBear Stearns ARM Trust, 2007-4, 12A1, FRN, 3.037%, 5/25/37		United States		1,303,463		1,289,746
d,pBXMT Ltd., 2021-FL4, C, 144A, FRN, 1.846%, (1-Month USD LIBOR + 1.75%), 5/15/38		United States		2,500,000		2,506,250
dCIM Trust, 2021-NR2, A1, 144A, 2.568%, 7/25/59		United States		186,446		187,583

39

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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)
d,qCitigroup Commercial Mortgage Trust, 2014-GC21, D, 144A, FRN, 5.109%, 5/10/47		United States		330,000		$	309,795
dCitigroup Mortgage Loan Trust, 144A,
q2009-10, 6A2, FRN, 2.185%, 9/25/34		United States		27,365			28,681
q2019-B, A1, FRN, 3.258%, 4/25/66		United States		89,442			90,246
2019-E, A1, 3.228%, 11/25/70		United States		213,646			214,352
Countrywide Alternative Loan Trust,
2003-22CB, 1A1, 5.75%, 12/25/33		United States		29,986			31,087
2004-16CB, 1A1, 5.50%, 7/25/34		United States		14,143			14,545
2004-16CB, 3A1, 5.50%, 8/25/34		United States		14,980			15,405
2004-3T1, M, 6.00%, 5/25/34		United States		257,919			207,182
2004-J10, 2CB1, 6.00%, 9/25/34		United States		46,545			48,481
2005-J1, 2A1, 5.50%, 2/25/25		United States		2,351			2,379
pCountrywide Asset-Backed Certificates, 2005-15, M3, FRN, 0.604%, (1-Month USD LIBOR + 0.52%), 4/25/36		United States		2,340,000			2,235,666
qCountrywide Home Loans Mortgage Pass-Through Trust, 2004- HYB4, 2A1, FRN, 2.55%, 9/20/34		United States		40,328			40,497
d,pCredit Suisse Commercial Mortgage Securities Corp., 2019- SKLZ, D, 144A, FRN, 3.696%, (1-Month USD LIBOR + 3.60%), 1/15/34		United States		105,000			104,014
Credit Suisse First Boston Mortgage Securities Corp.,
2002-10, 1B, 7.50%, 5/25/32		United States		149,864			147,337
2003-27, 4A4, 5.75%, 11/25/33		United States		13,695			14,654
2005-8, 1A3, 5.25%, 9/25/35		United States		95,502			94,020
dCSMC OA LLC, 144A,
2014-USA, A2, 3.953%, 9/15/37		United States		150,000			162,017
2014-USA, E, 4.373%, 9/15/37		United States		400,000			364,076
pDSLA Mortgage Loan Trust, 2005-AR5, 2A1A, FRN, 0.747%, (1- Month USD LIBOR + 0.66%), 9/19/45		United States		33,005			25,083
d,pDukinfield II PLC, 2016-2, A, FRN, Reg S, 1.331%, (3-Month GBP LIBOR + 1.25%), 12/20/52		United Kingdom		128,889	GBP		177,378
pFHLMC Structured Agency Credit Risk Debt Notes, 2015-DNA1, M3, FRN, 3.384%, (1-Month USD LIBOR + 3.30%), 10/25/27		United States		114,609			116,552
dGCAT LLC, 2020-4, A1, 144A, 2.611%, 12/25/25		United States		258,515			260,151
qGS Mortgage Securities Trust, FRN,
d2011-GC5, C, 144A, 5.303%, 8/10/44		United States		100,000			85,987
d2011-GC5, D, 144A, 5.303%, 8/10/44		United States		195,000			102,862
2014-GC18, B, 4.885%, 1/10/47		United States		100,000			99,328
GSR Mortgage Loan Trust,
2005-4F, 6A1, 6.50%, 2/25/35		United States		7,949			8,130
q2005-AR6, 4A5, FRN, 2.848%, 9/25/35		United States		28,163			28,410
pHarborview Mortgage Loan Trust, 2004-11, 2A2A, FRN, 0.727%, (1-Month USD LIBOR + 0.64%), 1/19/35		United States		73,475			68,736
IndyMac INDX Mortgage Loan Trust, FRN,
q2004-AR15, B1, 2.738%, 2/25/35		United States		1,618,603			1,390,962
p2004-AR7, A5, 1.304%, (1-Month USD LIBOR + 1.22%), 9/25/34		United States		35,633			34,279
q2005-AR11, A3, 2.979%, 8/25/35		United States		41,949			38,609
p2006-AR2, 2A1, 0.504%, (1-Month USD LIBOR + 0.42%), 2/25/46		United States		175,532			142,379
q2006-AR3, 3A1A, 3.066%, 4/25/36		United States		1,958,381			1,990,387
qJPMorgan Alternative Loan Trust, 2006-A2, 2A2, FRN, 2.962%, 5/25/36		United States		1,420,399			1,106,211
d,qJPMorgan Chase Commercial Mortgage Securities Trust, 144A, FRN, 2012-C8, C, 4.78%, 10/15/45		United States		100,000			101,344

40

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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)
d,qJPMorgan Chase Commercial Mortgage Securities Trust, 144A, FRN, (continued)
2012-LC9, C, 4.508%, 12/15/47		United States		100,000	$	101,767
2012-LC9, D, 4.508%, 12/15/47		United States		120,000		117,917
JPMorgan Mortgage Trust,
2004-S1, 2A1, 6.00%, 9/25/34		United States		67,890		71,173
q2006-A3, 2B1, FRN, 2.679%, 4/25/35		United States		1,899,836		1,261,431
q2007-A1, 4A2, FRN, 2.306%, 7/25/35		United States		1,528		1,538
pLehman XS Trust Series, 2006-2N, 1A1, FRN, 0.604%, (1-Month USD LIBOR + 0.52%), 2/25/46		United States		30,881		28,593
MASTR Alternative Loan Trust,
2004-2, 8A4, 5.50%, 3/25/34		United States		123,580		126,263
2004-8, 2A1, 6.00%, 9/25/34		United States		28,722		29,596
qMerrill Lynch Mortgage Investors MLCC, 2006-2, 2A, FRN, 2.091%, 5/25/36		United States		1,733		1,769
qMorgan Stanley Bank of America Merrill Lynch Trust, 2013-C11, B, FRN, 4.497%, 8/15/46		United States		200,000		150,049
d,qMorgan Stanley Capital I Trust, 2011-C2, E, 144A, FRN, 5.385%, 6/15/44		United States		150,000		122,373
d,qMSBAM Commercial Mortgage Securities Trust, 2012-CKSV, C, 144A, FRN, 4.425%, 10/15/30		United States		340,000		271,697
dPRPM LLC, 144A,
2020-3, A2, 5.071%, 9/25/25		United States		100,000		100,749
2020-5, A2, 5.437%, 11/25/25		United States		305,000		307,377
q2021-2, A2, FRN, 3.77%, 3/25/26		United States		130,000		130,393
2021-3, A1, 1.867%, 4/25/26		United States		187,999		189,132
dRCO V Mortgage LLC, 2020-1, A1, 144A, 3.105%, 9/25/25		United States		70,408		71,019
qRFMSI Trust, 2005-SA1, 1A1, FRN, 3.617%, 3/25/35		United States		88,079		56,472
pStructured ARM Loan Trust, 2005-14, A1, FRN, 0.394%, (1-Month USD LIBOR + 0.31%), 7/25/35		United States		197,147		144,634
dToorak Mortgage Corp. Ltd., 2021-1, A1, 144A, 2.24%, 6/25/24		United States		190,000		190,342
dVOLT XCII LLC, 2021-NPL1, A1, 144A, 1.893%, 2/27/51		United States		96,579		96,731
dVOLT XCII LLC, 2021-NPL2, A1, 144A, 1.893%, 2/27/51		United States		237,403		238,523
dVOLT XCIV LLC, 2021-NPL3, A2, 144A, 4.949%, 2/27/51		United States		215,000		215,590
Wells Fargo Commercial Mortgage Trust,
q2013-LC12, B, FRN, 4.443%, 7/15/46		United States		190,000		190,742
2014-LC16, C, 4.458%, 8/15/50		United States		215,000		143,811
q2016-C36, B, FRN, 3.671%, 11/15/59		United States		100,000		100,353
q2016-C36, C, FRN, 4.324%, 11/15/59		United States		100,000		89,647
d,q2019-JWDR, C, 144A, FRN, 3.139%, 9/15/31		United States		290,000		292,778
WFRBS Commercial Mortgage Trust,
d,q2011-C3, D, 144A, FRN, 5.513%, 3/15/44		United States		243,673		123,591
d,q2011-C4, E, 144A, FRN, 5.023%, 6/15/44		United States		120,000		81,790
q2012-C10, C, FRN, 4.495%, 12/15/45		United States		320,000		282,078
d,q2012-C6, D, 144A, FRN, 5.946%, 4/15/45		United States		150,000		151,719
q2012-C7, C, FRN, 4.957%, 6/15/45		United States		25,000		18,522
d,q2012-C7, D, 144A, FRN, 4.957%, 6/15/45		United States		130,000		69,987
d,e,q2012-C7, E, 144A, FRN, 4.957%, 6/15/45		United States		75,000		14,962
2014-C20, B, 4.378%, 5/15/47		United States		100,000		104,858
q2014-C24, B, FRN, 4.204%, 11/15/47		United States		100,000		101,786
						20,636,131
Total Asset-Backed Securities and Commercial Mortgage-Backed Securities (Cost $91,966,480)						92,968,419

41

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal       Amount*		Value
Municipal Bonds in Reorganization 0.5%
Puerto Rico 0.5%
lCommonwealth of Puerto Rico,
8.00%, 7/01/35		United States		6,980,000	$	5,941,725
5.50%, 7/01/39		United States		715,000		643,500
5.00%, 7/01/41		United States		1,000,000		858,750
Total Municipal Bonds in Reorganization (Cost $4,539,041)						7,443,975
	Number of Contracts		Notional       Amount#
Options Purchased 0.1%
Calls - Exchange-Traded 0.0%†
1Life Healthcare Inc., October Strike Price $30.00, Expires 10/15/21		20		2,000		1,000
The AES Corp., January Strike Price $27.00, Expires 1/21/22		813		81,300		40,650
Alteryx Inc., October Strike Price $80.00, Expires 10/15/21		4		400		728
Alteryx Inc., October Strike Price $85.00, Expires 10/15/21		4		400		340
Callaway Golf Co., November Strike Price $33.00, Expires 11/19/21		67		6,700		5,025
Canadian Pacific Railway Ltd., October Strike Price $75.00, Expires 10/15/21		10		1,000		800
Casino Guichard Perrachon SA, December Strike Price 30.00 EUR, Expires 12/17/21		43		4,300		1,066
Chicago Board Options Exchange Volatility Index, September Strike Price $22.00, Expires 9/15/21		260		26,000		20,800
Chicago Board Options Exchange Volatility Index, October Strike Price $23.00, Expires 10/20/21		115		11,500		29,555
Chicago Board Options Exchange Volatility Index, October Strike Price $24.00, Expires 10/20/21		222		22,200		55,500
Chicago Board Options Exchange Volatility Index, October Strike Price $25.00, Expires 10/20/21		124		12,400		27,528
Chicago Board Options Exchange Volatility Index, November Strike Price $25.00, Expires 11/17/21		206		20,600		62,830
Fox Corp., October Strike Price $ 39.00, Expires 10/15/21		40		4,000		3,000
fuboTV Inc., September Strike Price $35.00, Expires 9/17/21		30		3,000		960
GOL Linhas Aereas Inteligentes SA, October Strike Price $10.00, Expires 10/15/21		121		12,100		1,452
Helix Energy Solutions Group Inc., December Strike Price $5.00, Expires 12/17/21		82		8,200		1,435
Intel Corp., January Strike Price $70.00, Expires 1/21/22		100		10,000		3,200
Kadmon Holdings Inc., September Strike Price $7.50, Expires 9/17/21		40		4,000		400
Kansas City Southern, September Strike Price $280.00, Expires 9/17/21		13		1,300		10,400
Kansas City Southern, September Strike Price $290.00, Expires 9/17/21		40		4,000		12,000
Nikola Corp., January Strike Price $12.50, Expires 1/21/22		67		6,700		11,859
Nikola Corp., January Strike Price $14.00, Expires 1/21/22		95		9,500		13,775
Nikola Corp., January Strike Price $16.00, Expires 1/21/22		97		9,700		10,670
Nikola Corp., January Strike Price $17.50, Expires 1/21/22		32		3,200		3,040
PetIQ Inc.., October Strike Price $29.00, Expires 10/15/21		20		2,000		1,150
PetIQ Inc.., October Strike Price $30.00, Expires 10/15/21		20		2,000		800
SPDR Gold Shares ETF, June Strike Price $200.00, Expires 6/17/22		147		14,700		35,280
Vodafone Group PLC, September Strike Price 1.40 GBP, Expires 9/17/21		218		218,000		—

42

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Number of Contracts		Notional       Amount#		Value
Options Purchased (continued)
Calls - Exchange-Traded (continued)
Vodafone Group PLC, December Strike Price 1.25 GBP, Expires 12/17/21		64		64,000	$	3,960
Vroom Inc., December Strike Price $35.00, Expires 12/17/21		10		1,000		1,300
Willis Towers Watson PLC, October Strike Price $250.00, Expires 10/15/21		8		800		2,080
Willis Towers Watson PLC, December Strike Price $250.00, Expires 12/17/21		23		2,300		5,635
						368,218
Calls - Over-the-Counter 0.0%†
Nasdaq 100 Stock Index, Counterparty MSCS, September Strike Price $15,126.00, Expires 9/07/21		163		163		78,803
Puts - Exchange-Traded 0.1%
Advanced Micro Devices Inc., December Strike Price $115.00, Expires 12/17/21		232		23,200		296,496
Advanced Micro Devices Inc., December Strike Price $120.00, Expires 12/17/21		232		23,200		374,680
Air France-KLM, December Strike Price 4.20 EUR, Expires 12/17/21		218		21,800		13,900
Alphatec Holdings Inc., October Strike Price $12.50, Expires 10/15/21		20		2,000		800
American Airlines Group Inc., September Strike Price $17.00, Expires 9/17/21		60		6,000		600
American Airlines Group Inc., November Strike Price $18.00, Expires 11/19/21		145		14,500		14,500
American Airlines Group Inc., January Strike Price $10.00, Expires 1/20/23		40		4,000		3,280
Antero Resources Corp., September Strike Price $11.00, Expires 9/17/21		22		2,200		165
Beyond Meat Inc., September Strike Price $110.00, Expires 9/17/21		4		400		456
Box Inc., September Strike Price $18.00, Expires 9/17/21		101		10,100		303
Box Inc., September Strike Price $19.00, Expires 9/17/21		99		9,900		297
Box Inc., September Strike Price $20.00, Expires 9/17/21		24		2,400		300
Box Inc., September Strike Price $23.00, Expires 9/17/21		295		29,500		2,950
Box Inc., October Strike Price $24.00, Expires 10/15/21		82		8,200		4,920
Box Inc., December Strike Price $23.00, Expires 12/17/21		17		1,700		1,827
Braemar Hotels & Resorts Inc., October Strike Price $5.00, Expires 10/15/21		8		800		400
Callaway Golf Co., January Strike Price $28.00, Expires 1/21/22		16		1,600		4,560
Callaway Golf Co., January Strike Price $29.00, Expires 1/21/22		82		8,200		28,290
Callaway Golf Co., January Strike Price $30.00, Expires 1/21/22		142		14,200		56,800
Canadian Pacific Railway Ltd., September Strike Price $72.00, Expires 9/17/21		13		1,300		6,110
Century Aluminum Co., September Strike Price $13.00, Expires 9/17/21		10		1,000		850
Chicago Board Options Exchange Volatility Index, September Strike Price $22.00, Expires 9/15/21		510		51,000		209,100
Chicago Board Options Exchange Volatility Index, October Strike Price $23.00, Expires 10/20/21		217		21,700		101,990
Chicago Board Options Exchange Volatility Index, October Strike Price $24.00, Expires 10/20/21		193		19,300		104,220
Cinemark Holdings Inc., January Strike Price $10.00, Expires 1/21/22		75		7,500		2,625
Coherus Biosciences Inc., November Strike Price $12.50, Expires 11/19/21		5		500		225

43

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Number of Contracts		Notional Amount#		Value
Options Purchased (continued)
Puts - Exchange-Traded (continued)
DraftKings Inc., September Strike Price $45.00, Expires 9/17/21		16		1,600	$	144
Dynavax Technologies Corp., September Strike Price $12.00, Expires 9/17/21		10		1,000		60
GOL Linhas Aereas Inteligentes SA, September Strike Price $8.00, Expires 9/17/21		44		4,400		2,090
GOL Linhas Aereas Inteligentes SA, October Strike Price $4.00, Expires 10/15/21		66		6,600		660
Hewlett Packard Enterprise Co., November Strike Price $14.00, Expires 11/19/21		98		9,800		3,920
HP Inc., November Strike Price $30.00, Expires 11/19/21		45		4,500		7,380
Insmed Inc., November Strike Price $21.00, Expires 11/19/21		4		400		460
Invesco QQQ Trust Series 1, September Strike Price $357.00, Expires 9/17/21		334		33,400		29,726
iShares Russell 2000 ETF, September Strike Price $210.00, Expires 9/17/21		219		21,900		14,454
The Marcus Corp., December Strike Price $10.00, Expires 12/17/21		37		3,700		740
Marriott Vacations Worldwide Corp., September Strike Price $135.00, Expires 9/17/21		4		400		360
Nasdaq 100 Stock Index, September Strike Price $14,800.00, Expires 9/17/21		2		200		8,380
Realogy Holdings Corp., September Strike Price $15.00, Expires 9/17/21		44		4,400		396
S&P 500 Index, September Strike Price $4,000.00, Expires 9/17/21		7		700		2,240
S&P 500 Index, October Strike Price $4,200.00, Expires 10/15/21		42		4,200		114,324
S&P 500 Index, October Strike Price $4,250.00, Expires 10/15/21		4		400		12,600
S&P 500 Index, October Strike Price $4,300.00, Expires 10/15/21		7		700		24,976
Willis Towers Watson PLC, September Strike Price $195.00, Expires 9/17/21		21		2,100		630
						1,454,184
Puts - Over-the-Counter 0.0%†
Air France-KLM, Counterparty BOFA, September Strike Price 4.00 EUR, Expires 9/17/21		73		7,300		1,379
Nasdaq 100 Stock Index, Counterparty MSCS, September Strike Price $15,126.00, Expires 9/07/21		163		163		2,651
						4,030
Total Options Purchased (Cost $2,922,217)						1,905,235
Total Investments before Short Term Investments (Cost $869,213,724)						1,067,756,006
	Country		Shares
Short Term Investments 17.8%
Money Market Funds 15.7%
r,sDreyfus Government Cash Management, Institutional, 0.03%		United States		25,843,038		25,843,038

44

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Shares		Value
Short Term Investments (continued)
Money Market Funds (continued)
rFidelity Investments Money Market Government Portfolio, Institutional, 0.01%		United States		192,138,122	$	192,138,122
Total Money Market Funds (Cost $217,981,160)						217,981,160
Investments from Cash Collateral Received for Loaned Securities 0.4%
Money Market Funds 0.3%
r,tInstitutional Fiduciary Trust Money Market Portfolio, 0.01%		United States		3,500,000		3,500,000
			Principal
Repurchase Agreements 0.1%
uJoint Repurchase Agreement, 0.05%, 9/01/21
(Maturity Value $2,065,337)		United States		2,065,334		2,065,334
J.P. Morgan Securities LLC Collateralized by U.S. Government Agency Obligations, 0.125%-2.125%, 10/31/22-7/31/24 (valued at $2,106,642)
Total Investments from Cash Collateral Received for Loaned Securities (Cost $5,565,334)						5,565,334
U.S. Government and Agency Securities 1.7%
vFederal Home Loan Bank Discount Notes, zero cpn., 9/01/21		United States		13,740,000		13,740,000
vU.S. Treasury Bill, zero cpn.,
9/09/21		United States		910,000		909,994
10/07/21		United States		405,000		404,985
b10/14/21		United States		7,000,000		6,999,707
8/11/22		United States		940,000		939,416
Total U.S. Government and Agency Securities (Cost $22,994,119)						22,994,102
Total Investments (Cost $1,115,754,337) 94.8%						1,314,296,602
Options Written (0.0)%†						(359,067	)
Securities Sold Short (16.7)%						(232,345,523	)
Other Assets, less Liabilities 21.9%						304,426,848
Net Assets 100.0%					$	1,386,018,860
	Number of Contracts		Notional Amount#
Options Written (0.0)%†
Calls - Exchange-Traded (0.0)%†
Accenture PLC, October Strike Price $350.00, Expires 10/15/21		1		100		(400	)
American Tower Corp., October Strike Price $300.00, Expires 10/15/21		1		100		(400	)
Apple Inc., October Strike Price $160.00, Expires 10/15/21		3		300		(639	)
Applied Materials Inc., October Strike Price $145.00, Expires 10/15/21		3		300		(654	)
Blackstone Inc., October Strike Price $125.00, Expires 10/15/21		3		300		(1,404	)
Box Inc., September Strike Price $26.00, Expires 9/17/21		99		9,900		(6,534	)

45

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Number of Contracts		Notional Amount#		Value
Options Written (continued)
Calls - Exchange-Traded (continued)
Box Inc., September Strike Price $27.00, Expires 9/17/21		75		7,500	$	(2,850	)
Box Inc., September Strike Price $29.00, Expires 9/17/21		35		3,500		(525	)
Box Inc., October Strike Price $27.00, Expires 10/15/21		82		8,200		(6,970	)
Box Inc., December Strike Price $28.00, Expires 12/17/21		17		1,700		(2,227	)
Bristol-Myers Squibb Co., October Strike Price $70.00, Expires 10/15/21		4		400		(192	)
Callaway Golf Co., January Strike Price $40.00, Expires 1/21/22		67		6,700		(2,680	)
Callaway Golf Co., January Strike Price $45.00, Expires 1/21/22		174		17,400		(3,480	)
Casino Guichard Perrachon SA, December Strike Price 34.00 EUR, Expires 12/17/21		43		4,300		(305	)
Comcast Corp., October Strike Price $62.50, Expires 10/15/21		5		500		(400	)
ConocoPhillips, October Strike Price $60.00, Expires 10/15/21		2		200		(186	)
Deere & Co., October Strike Price $390.00, Expires 10/15/21		1		100		(710	)
dMY Technology Group Inc. III, October Strike Price $12.50, Expires 10/15/21		32		3,200		(960	)
Fox Corp., October Strike Price $40.00, Expires 10/15/21		11		1,100		(495	)
The Goldman Sachs Group Inc., October Strike Price $435.00, Expires 10/15/21		1		100		(657	)
The Home Depot Inc., October Strike Price $345.00, Expires 10/15/21		1		100		(195	)
Iron Mountain Inc., October Strike Price $47.50, Expires 10/15/21		6		600		(804	)
JPMorgan Chase & Co., October Strike Price $165.00, Expires 10/15/21		2		200		(520	)
Kansas City Southern, October Strike Price $310.00, Expires 10/15/21		13		1,300		(1,820	)
Kraton Corp., December Strike Price $50.00, Expires 12/17/21		55		5,500		(13,750	)
Medallia Inc., November Strike Price $35.00, Expires 11/19/21		41		4,100		(718	)
Microsoft Corp., October Strike Price $320.00, Expires 10/15/21		1		100		(170	)
Morgan Stanley, October Strike Price $110.00, Expires 10/15/21		5		500		(790	)
Nike Inc., October Strike Price $180.00, Expires 10/15/21		3		300		(564	)
NVIDIA Corp., October Strike Price $247.50, Expires 10/15/21		2		200		(618	)
NXP Semiconductors NV, October Strike Price $230.00, Expires 10/15/21		2		200		(730	)
Oracle Corp., October Strike Price $95.00, Expires 10/15/21		4		400		(492	)
Pfizer Inc., October Strike Price $55.00, Expires 10/15/21		6		600		(78	)
The Procter & Gamble Co., October Strike Price $150.00, Expires 10/15/21		2		200		(110	)
Ross Stores Inc., October Strike Price $135.00, Expires 10/15/21		2		200		(360	)
Stamps.com Inc., September Strike Price $330.00, Expires 9/17/21		13		1,300		(195	)
Target Corp., October Strike Price $270.00, Expires 10/15/21		1		100		(85	)
Texas Instruments Inc., October Strike Price $200.00, Expires 10/15/21		1		100		(204	)
The TJX Cos. Inc., October Strike Price $80.00, Expires 10/15/21		4		400		(120	)
Translate Bio Inc., February Strike Price $40.00, Expires 2/18/22		119		11,900		(2,380	)
Willis Towers Watson PLC, September Strike Price $230.00, Expires 9/17/21		21		2,100		(2,310	)
Willis Towers Watson PLC, October Strike Price $270.00, Expires 10/15/21		8		800		(1,840	)
Willis Towers Watson PLC, December Strike Price $260.00, Expires 12/17/21		16		1,600		(3,400	)
Willis Towers Watson PLC, December Strike Price $270.00, Expires 12/17/21		7		700		(1,872	)
						(66,793	)

46

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Number of Contracts		Notional     Amount#		Value
Options Written (continued)
Calls - Over-the-Counter (0.0)%†
Clearway Energy Inc., C, Counterparty BOFA, November Strike Price $30.00, Expires 11/19/21		58		5,800	$	(13,340)
Puts - Exchange-Traded (0.0)%†
Callaway Golf Co., November Strike Price $26.00, Expires 11/19/21		67		6,700		(9,246)
Callaway Golf Co., January Strike Price $22.00, Expires 1/21/22		242		24,200		(18,634)
Canadian Pacific Railway Ltd., September Strike Price $65.00, Expires 9/17/21		13		1,300		(1,027)
Kansas City Southern, September Strike Price $280.00, Expires 9/03/21		8		800		(2,960)
Kansas City Southern, September Strike Price $280.00, Expires 9/17/21		46		4,600		(28,520)
Nasdaq 100 Stock Index, September Strike Price $13,600.00, Expires 9/17/21		2		200		(2,320)
Nikola Corp., January Strike Price $7.50, Expires 1/21/22		67		6,700		(7,303)
Nikola Corp., January Strike Price $10.00, Expires 1/21/22		129		12,900		(30,186)
Nikola Corp., January Strike Price $11.00, Expires 1/21/22		33		3,300		(9,702)
Nikola Corp., January Strike Price $12.50, Expires 1/21/22		65		6,500		(25,675)
S&P 500 Index, September Strike Price $3,600.00, Expires 9/17/21		7		700		(728)
S&P 500 Index, October Strike Price $4,000.00, Expires 10/15/21		7		700		(10,689)
S&P 500 Index, December Strike Price $3,600.00, Expires 12/17/21		42		4,200		(113,778)
S&P 500 Index, December Strike Price $3,650.00, Expires 12/17/21		4		400		(12,000)
Vodafone Group PLC, September Strike Price 1.20 GBP, Expires 9/17/21		218		218,000		(3,746)
Vodafone Group PLC, December Strike Price 1.10 GBP, Expires 12/17/21		64		64,000		(2,420)
						(278,934)
Total Options Written (Premiums Received $529,740)						(359,067)
	Country		Shares
Securities Sold Short (16.7)%
Common Stocks (6.9)%
Aerospace & Defense (0.0)%†
Kaman Corp.		United States		1,379		(53,891)
Parsons Corp.		United States		12,193		(431,998)
						(485,889)
Air Freight & Logistics (0.3)%
Air Transport Services Group Inc.		United States		15,147		(414,876)
Atlas Air Worldwide Holdings Inc.		United States		27,936		(2,044,077)
United Parcel Service Inc., B		United States		6,865		(1,343,000)
						(3,801,953)
Airlines (0.0)%†
GOL Linhas Aereas Inteligentes SA, ADR		Brazil		13,266		(103,342)
Spirit Airlines Inc.		United States		4,514		(110,729)
						(214,071)

47

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Shares		Value
Securities Sold Short (continued)
Common Stocks (continued)
Auto Components (0.1)%
Patrick Industries Inc.		United States		11,556	$	(943,085)
Automobiles (0.1)%
Fisker Inc.		United States		33,461		(466,781)
Li Auto Inc., ADR		China		19,117		(589,950)
NIO Inc., ADR		China		15,483		(608,637)
						(1,665,368)
Banks (0.0)%†
Hope Bancorp Inc.		United States		12,552		(173,092)
Biotechnology (0.6)%
Avid Bioservices Inc.		United States		34,445		(834,947)
BioMarin Pharmaceutical Inc.		United States		3,572		(300,798)
Coherus Biosciences Inc.		United States		40,533		(647,717)
Dynavax Technologies Corp.		United States		86,529		(1,683,854)
Flexion Therapeutics Inc.		United States		6,313		(37,752)
Gossamer Bio Inc.		United States		45,628		(453,542)
Insmed Inc.		United States		30,400		(852,416)
Intercept Pharmaceuticals Inc.		United States		33,471		(499,053)
Ironwood Pharmaceuticals Inc., A		United States		39,018		(511,136)
Kadmon Holdings Inc.		United States		93,753		(513,766)
Karyopharm Therapeutics Inc.		United States		27,414		(159,001)
Ligand Pharmaceuticals Inc.		United States		1,103		(145,927)
Mannkind Corp.		United States		183,107		(878,914)
Pharming Group NV		Netherlands		64,763		(69,646)
						(7,588,469)
Capital Markets (0.9)%
Apollo Global Management Inc., A		United States		91,223		(5,453,311)
S&P Global Inc.		United States		14,395		(6,388,789)
Singapore Exchange Ltd.		Singapore		5,000		(36,699)
						(11,878,799)
Consumer Finance (0.3)%
Encore Capital Group Inc.		United States		58,117		(2,859,938)
EZCORP Inc., A		United States		52,132		(359,189)
LendingTree Inc.		United States		406		(67,652)
PRA Group Inc.		United States		17,557		(737,394)
Upstart Holdings Inc.		United States		1,506		(345,055)
Zip Co. Ltd.		Australia		32,600		(161,446)
						(4,530,674)
Diversified Consumer Services (0.0)%†
Stride Inc.		United States		12,431		(425,637)
Electric Utilities (0.2)%
dOrsted As, 144A		Denmark		5,107		(811,935)
The Southern Co.		United States		20,732		(1,362,714)
Terna Rete Elettrica Nazionale SpA		Italy		135,704		(1,073,426)
						(3,248,075)
Electrical Equipment (0.0)%†
Sunrun Inc.		United States		9,515		(421,039)
Electronic Equipment, Instruments & Components (0.1)%
II-VI Inc.		United States		3,346		(210,731)
OSI Systems Inc.		United States		5,322		(526,559)
Vishay Intertechnology Inc.		United States		8,430		(185,207)
						(922,497)

48

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Shares		Value
Securities Sold Short (continued)
Common Stocks (continued)
Energy Equipment & Services (0.1)%
Helix Energy Solutions Group Inc.		United States		159,155	$	(598,423)
Oil States International Inc.		United States		4,588		(26,885)
						(625,308)
Entertainment (0.2)%
Cinemark Holdings Inc.		United States		54,567		(972,930)
Live Nation Entertainment Inc.		United States		10,325		(895,177)
The Marcus Corp.		United States		59,537		(928,777)
Spotify Technology SA		United States		209		(48,977)
						(2,845,861)
Equity Real Estate Investment Trusts (REITs) (0.3)%
Braemar Hotels & Resorts Inc.		United States		48,635		(245,120)
Innovative Industrial Properties Inc., A		United States		10,672		(2,624,351)
Pebblebrook Hotel Trust		United States		32,353		(712,737)
Summit Hotel Properties Inc.		United States		68,196		(635,587)
						(4,217,795)
Food & Staples Retailing (0.1)%
The Chefs’ Warehouse Inc.		United States		27,460		(830,116)
Food Products (0.0)%†
Beyond Meat Inc.		United States		3,731		(446,377)
Health Care Equipment & Supplies (0.3)%
Alphatec Holdings Inc.		United States		32,581		(471,773)
Cutera Inc.		United States		22,220		(1,105,223)
Mesa Laboratories Inc.		United States		1,325		(353,669)
NuVasive Inc.		United States		10,363		(643,957)
SmileDirectClub Inc., A		United States		64,872		(356,796)
Varex Imaging Corp.		United States		55,298		(1,613,042)
						(4,544,460)
Health Care Providers & Services (0.1)%
1Life Healthcare Inc.		United States		8,273		(202,771)
PetIQ Inc., A		United States		23,841		(618,674)
						(821,445)
Health Care Technology (0.0)%†
Tabula Rasa HealthCare Inc.		United States		5,936		(185,856)
Hotels, Restaurants & Leisure (0.2)%
Draftkings Inc., A		United States		7,275		(431,335)
Marriott Vacations Worldwide Corp.		United States		4,605		(688,678)
Royal Caribbean Cruises Ltd.		United States		12,898		(1,067,051)
Scientific Games Corp.		United States		13,240		(957,914)
						(3,144,978)
Independent Power & Renewable Electricity Producers (0.1)%
Sunnova Energy International Inc.		United States		27,262		(986,884)
Industrial Conglomerates (0.1)%
3M Co.		United States		7,123		(1,387,133)
Internet & Direct Marketing Retail (0.2)%
dDelivery Hero SE, 144A		Germany		4,257		(617,822)
Fiverr International Ltd.		Israel		3,223		(578,561)
Groupon Inc., A		United States		8,064		(199,745)
dTakeaway.com NV, 144A		Netherlands		2,664		(241,375)
Wayfair Inc., A		United States		1,648		(462,676)
						(2,100,179)

49

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Shares		Value
Securities Sold Short (continued)
Common Stocks (continued)
IT Services (0.1)%
Afterpay Ltd.		Australia		2,316	$	(225,276)
CSG Systems International Inc.		United States		6,961		(335,590)
Fastly Inc., A		United States		6,736		(293,690)
i3 Verticals Inc., A		United States		13,933		(402,803)
Shift4 Payments Inc., A		United States		593		(50,826)
						(1,308,185)
Machinery (0.1)%
Fortive Corp.		United States		956		(70,620)
The Greenbrier Cos. Inc.		United States		14,660		(646,506)
						(717,126)
Media (0.5)%
Charter Communications Inc., A		United States		2,313		(1,888,935)
Dish Network Corp., A		United States		11,882		(517,936)
Liberty Media Corp., C		United States		26,755		(1,352,198)
Liberty Media Group, A		United States		3,676		(167,956)
Liberty SiriusXM Group		United States		16,709		(827,096)
Magnite Inc.		United States		16,711		(484,953)
Sirius XM Holdings Inc.		United States		165,736		(1,039,165)
Techtarget Inc.		United States		12,307		(1,040,926)
						(7,319,165)
Metals & Mining (0.1)%
Century Aluminum Co.		United States		20,220		(259,220)
Ivanhoe Mines Ltd., A		Canada		93,529		(754,667)
MP Materials Corp.		United States		22,149		(743,542)
						(1,757,429)
Mortgage Real Estate Investment Trusts (REITs) (0.2)%
Apollo Commercial Real Estate Finance Inc.		United States		10,546		(163,990)
Arbor Realty Trust Inc.		United States		65,352		(1,194,634)
KKR Real Estate Finance Trust Inc.		United States		7,575		(161,575)
PennyMac Mortgage Investment Trust		United States		42,202		(819,141)
Redwood Trust Inc.		United States		18,610		(232,067)
Starwood Property Trust Inc.		United States		7,098		(183,128)
Two Harbors Investment Corp.		United States		48,153		(317,810)
						(3,072,345)
Personal Products (0.1)%
Herbalife Nutrition Ltd.		United States		14,129		(725,383)
Pharmaceuticals (0.3)%
Aerie Pharmaceuticals Inc.		United States		19,625		(292,609)
Avadel Pharmaceuticals PLC, ADR		United States		53,120		(440,365)
Canopy Growth Corp.		Canada		9,102		(156,624)
Collegium Pharmaceutical Inc.		United States		22,990		(471,985)
Innoviva Inc.		United States		40,029		(610,842)
Omeros Corp.		United States		54,656		(890,893)
Revance Therapeutics Inc.		United States		29,204		(782,083)
Zogenix Inc.		United States		28,356		(419,952)
						(4,065,353)
Professional Services (0.0)%†
Upwork Inc.		United States		9,714		(434,313)
Real Estate Management & Development (0.2)%
Opendoor Technologies Inc.		United States		53,350		(945,896)
Realogy Holdings Corp.		United States		19,967		(350,421)

50

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Shares		Value
Securities Sold Short (continued)
Common Stocks (continued)
Real Estate Management & Development (continued)
Tricon Residential Inc., Common Subscription Receipt		Canada		136,042	$	(1,729,571)
						(3,025,888)
Road & Rail (0.0)%†
Canadian Pacific Railway Ltd.		Canada		8,501		(584,784)
Semiconductors & Semiconductor Equipment (0.4)%
ams AG		Austria		17,402		(354,056)
Analog Devices Inc.		United States		23,038		(3,754,042)
Impinj Inc.		United States		17,788		(1,036,862)
Sunpower Corp., A		United States		21,841		(470,674)
						(5,615,634)
Software (0.5)%
Alteryx Inc., A		United States		958		(70,863)
Avaya Holdings Corp.		United States		26,940		(543,380)
Bentley Systems Inc., B		United States		20,414		(1,316,499)
Dye & Durham Ltd.		Canada		4,088		(154,428)
fuboTV Inc.		United States		14,973		(436,463)
Kaleyra Inc.		Italy		10,788		(132,584)
Microstrategy Inc., A		United States		549		(381,171)
Mitek Systems Inc.		United States		39,033		(873,168)
NortonLifeLock Inc.		United States		10,220		(271,443)
Nutanix Inc., A		United States		9,345		(344,924)
PROS Holdings Inc.		United States		5,465		(236,307)
Rapid7 Inc.		United States		6,537		(794,376)
Splunk Inc.		United States		2,387		(364,901)
VMware Inc., A		United States		4,079		(607,241)
Zoom Video Communications Inc., A		United States		1,619		(468,700)
						(6,996,448)
Specialty Retail (0.1)%
Guess? Inc.		United States		26,981		(652,670)
Shift Technologies Inc.		United States		74,825		(556,698)
Vroom Inc.		United States		9,316		(250,228)
						(1,459,596)
Technology Hardware, Storage & Peripherals (0.0)%†
Pure Storage Inc., A		United States		3,483		(89,966)
Total Common Stocks (Proceeds $94,074,051)						(95,606,655)
Exchange Traded Funds (8.8)%
Health Care Select Sector SPDR Fund		United States		96,356		(13,028,295)
Invesco QQQ Series 1 ETF		United States		2,498		(949,115)
Invesco Solar ETF		United States		23,770		(2,035,425)
iShares Nasdaq Biotechnology ETF		United States		65,509		(11,285,891)
iShares North American Tech-Software ETF		United States		32,031		(13,554,558)
iShares Russell 2000 Growth ETF		United States		55,776		(17,045,703)
iShares Russell Mid-Cap Growth ETF		United States		42,973		(5,072,533)
SPDR S&P 500 ETF Trust		United States		132,028		(59,618,563)
Total Exchange Traded Funds (Proceeds $112,736,047)						(122,590,083)

51

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal         Amount*			Value
Securities Sold Short (continued)
Corporate Bonds and Notes (0.8)%
Aerospace & Defense (0.0)%†
dSpirit Aerosystems Inc., secured note, 144A, 7.50%, 4/15/25		United States		273,000		$	(289,380)
Airlines (0.1)%
dAmerican Airlines Inc., senior secured note, 144A, 11.75%, 7/15/25		United States		994,000			(1,235,293)
Auto Components (0.1)%
American Axle & Manufacturing Inc., senior note,
6.50%, 4/01/27		United States		150,000			(157,688)
6.875%, 7/01/28		United States		466,000			(504,078)
dZF Europe Finance BV, senior bond, Reg S, 3.00%, 10/23/29		Germany		200,000	EUR		(251,059)
							(912,825)
Communications Equipment (0.0)%†
dAudacy Capital Corp., secured note, 144A, 6.50%, 5/01/27		United States		495,000			(498,099)
Construction & Engineering (0.1)%
dSydney Airport Finance Co. Pty Ltd., senior secured bond, 144A,
3.375%, 4/30/25		Australia		146,000			(155,950)
3.625%, 4/28/26		Australia		73,000			(79,031)
dTutor Perini Corp., senior note, 144A, 6.875%, 5/01/25		United States		646,000			(666,188)
							(901,169)
Diversified Consumer Services (0.0)%†
dMPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28		United States		653,000			(624,483)
Diversified Financial Services (0.2)%
AerCap Ireland Capital DAC / AerCap Global Aviation Trust,
senior bond, 3.65%, 7/21/27		Ireland		2,073,000			(2,209,866)
senior note, 4.625%, 10/15/27		Ireland		73,000			(81,564)
							(2,291,430)
Diversified Telecommunication Services (0.0)%†
dDKT Finance ApS, senior secured note, Reg S, 7.00%, 6/17/23		Denmark		258,000	EUR		(310,825)
dTelesat Canada / Telesat LLC, senior note, 144A, 6.50%, 10/15/27		Canada		131,000			(110,855)
							(421,680)
Equity Real Estate Investment Trusts (REITs) (0.1)%
The GEO Group Inc.,
senior bond, 5.875%, 10/15/24		United States		144,000			(130,500)
senior note, 6.00%, 4/15/26		United States		37,000			(31,311)
dIron Mountain Inc., senior bond, 144A, 5.25%, 3/15/28		United States		408,000			(430,032)
Simon Property Group LP, senior bond, 2.65%, 7/15/30		United States		350,000			(365,335)
							(957,178)
Food & Staples Retailing (0.2)%
Koninklijke Ahold Delhaize NV, senior bond, 5.70%, 10/01/40		Netherlands		603,000			(842,041)
The Kroger Co., senior bond,
5.40%, 1/15/49		United States		241,000			(335,492)
3.95%, 1/15/50		United States		15,000			(17,498)
dSEG Holding LLC / SEG Finance Corp., senior secured note, 144A, 5.625%, 10/15/28		United States		473,000			(497,248)
dSigma Holdco BV, senior note, Reg S, 5.75%, 5/15/26		Netherlands		200,000	EUR		(228,322)
dSigma Holdco BV, senior note, 144A, 7.875%, 5/15/26		Netherlands		191,000			(191,716)
							(2,112,317)

52

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country		Principal         Amount*			Value
Securities Sold Short (continued)
Corporate Bonds and Notes (continued)
Food Products (0.0)%†
B&G Foods Inc., senior note, 5.25%, 9/15/27		United States		617,000		$	(641,526)
Health Care Providers & Services (0.0)%†
dAir Methods Corp., senior note, 144A, 8.00%, 5/15/25		United States		435,000			(420,349)
Oil, Gas & Consumable Fuels (0.0)%†
Apache Corp., senior bond, 4.375%, 10/15/28		United States		75,000			(81,030)
dSM Energy Co., secured note, 144A, 10.00%, 1/15/25		United States		172,000			(191,995)
							(273,025)
Total Corporate Bonds and Notes (Proceeds $10,887,649)							(11,578,754)
Foreign Government and Agency Securities (Proceeds $49,302) (0.0)%†
dGovernment of Italy, senior bond, 144A, Reg S, 5.00%, 3/01/25		Italy		36,000	EUR		(50,285)
U.S. Government and Agency Securities (0.2)%
U.S. Treasury Bond,
2.25%, 5/15/41		United States		78,000			(83,484)
1.375%, 8/15/50		United States		1,049,000			(917,875)
U.S. Treasury Note,
0.875%, 11/15/30		United States		472,000			(456,199)
1.625%, 5/15/31		United States		1,030,000			(1,062,188)
Total U.S. Government and Agency Securities (Proceeds $2,603,128)							(2,519,746)
Total Securities Sold Short (Proceeds $220,350,177)						$	(232,345,523)

53

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

^†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 units specified in the contract, and can include currency units, bushels, shares, pounds, barrels or other units. Currency units are stated in U.S. dollars unless otherwise indicated.

^aNon-income producing.

^bA 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 August 31, 2021, the aggregate value of these securities and/or cash pledged amounted to $388,953,899, representing 28.1% of net assets.

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

^dSecurity 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 August 31, 2021, the net value of these securities was $273,780,779, representing 19.8% of net assets.

^eFair valued using significant unobservable inputs. See Note 9 regarding fair value measurements.

^fA portion or all of the security is on loan at August 31, 2021.

^gPerpetual security with no stated maturity date.

^hThe coupon rate shown represents the rate at period end.

ⁱSecurities denominated in Argentine Peso have been designated as Level 3 investments. See Note 9 regarding fair value measurements.

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

^kA portion or all of the security purchased on a delayed delivery basis.

^lDefaulted security or security for which income has been deemed uncollectible.

^mSee Note 6 regarding unfunded loan commitments.

ⁿA supranational organization is an entity formed by two or more central governments through international treaties.

^oPrincipal amount is stated in 100 Mexican Peso Units.

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

^qAdjustable 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.

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

^sA portion or all of the security is owned by K2 Holdings Investment Corp., a wholly-owned subsidiary of the Fund. See Note 8.

^tSee Note 7 regarding investments in affiliated management investment companies.

^uInvestment is through participation in a joint account with other funds managed by the investment manager or an affiliate of the investment manager. At August 31, 2021, all repurchase agreements had been entered into on that date.

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

54

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

At August 31, 2021, the Fund had the following futures contracts outstanding. See Note 3.

Futures Contracts

Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Commodity Contractsa
Aluminum		Long		17	$	1,153,025		9/13/21	$	91,465
Aluminum		Short		17		1,153,025		9/13/21		(72,456	)
Aluminum		Long		14		950,862		12/13/21		44,148
Aluminum		Short		1		67,919		12/13/21		(3,766	)
Brent Crude Oil		Long		27		1,934,010		9/30/21		50,149
Cocoa		Short		11		265,718		12/14/21		(6,299	)
Coffee		Long		13		955,012		12/20/21		54,038
Copper		Long		12		2,857,575		9/13/21		(172,029	)
Copper		Short		12		2,857,575		9/13/21		123,113
Copper		Long		2		476,063		12/13/21		1,070
Copper		Short		4		952,125		12/13/21		(55,362	)
Corn		Long		63		1,682,887		12/14/21		(57,972	)
Cotton		Long		10		462,650		12/08/21		19,897
Crude Oil		Long		31		2,123,500		9/21/21		7,511
Gasoline		Long		23		2,069,075		9/30/21		91,085
Gold 100 Oz		Short		10		1,818,100		12/29/21		(8,023	)
Hard Red Winter Wheat		Long		20		712,000		12/14/21		(14,116	)
Low Sulphur Gas Oil		Long		19		1,143,325		10/12/21		51,446
Natural Gas		Long		29		1,269,330		9/28/21		108,836
NY Harbor		Long		23		2,057,773		9/30/21		72,709
Silver		Short		11		1,320,330		12/29/21		(7,765	)
Soybean Meal		Short		16		552,960		12/14/21		45,507
Soybean Oil		Long		13		458,250		12/14/21		(1,811	)
Soybeans		Long		29		1,874,125		11/12/21		(95,054	)
Sugar		Long		32		711,066		9/30/21		72,295
Wheat		Long		27		975,038		12/14/21		26,539
Zinc		Long		10		749,750		9/13/21		5,584
Zinc		Short		10		749,750		9/13/21		(3,777	)
Zinc		Long		12		901,725		12/13/21		2,022
										368,984
Currency Contractsa
U.S. Dollar Index		Long		10		926,350		9/13/21		(4,941	)
Equity Contracts
CAC 40 10 Euro Indexa		Long		6		473,102		9/17/21		(5,842	)
CBOE Volatility Index		Long		5		104,537		10/20/21		612
CBOE Volatility Index		Long		6		131,385		11/17/21		97
CBOE Volatility Index		Long		14		312,200		12/22/21		(4,853	)
CBOE Volatility Index		Long		37		866,455		1/19/22		(5,288	)
CBOE Volatility Index		Long		21		500,850		2/16/22		(4,074	)
DAX Indexa		Long		11		5,130,355		9/17/21		(932	)
DJ EURO STOXX 50 Indexa		Long		65		3,209,246		9/17/21		43,725
DJ EURO STOXX 50 Index		Short		704		34,758,608		9/17/21		(395,923	)
DJIA Mini E-CBOT Indexa		Long		24		4,240,800		9/17/21		109,017
E-Mini Russell 2000a		Long		7		794,920		9/17/21		20,601
FTSE 100 Indexa		Long		60		5,853,991		9/17/21		35,868
FTSE 100 Index		Short		88		8,585,853		9/17/21		4,514
FTSE/MIB Index		Short		3		460,669		9/17/21		(7,308	)
Hang Seng Indexa		Long		4		662,274		9/29/21		14,554
NASDAQ 100 E-Mini Indexa		Long		17		5,298,050		9/17/21		312,732
NASDAQ 100 E-Mini Index		Short		3		934,950		9/17/21		(68,373	)

55

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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)
Nikkei 225 Indexa		Short		1	$	256,147		9/09/21	$	(3,369	)
S&P 500 E-Mini Indexa		Long		23		5,198,575		9/17/21		119,455
S&P 500 E-Mini Index		Short		54		12,205,350		9/17/21		(735,346	)
STOXX 600 Banks Index		Short		123		984,674		9/17/21		19,349
STOXX Europe 600		Short		4		110,920		9/17/21		(334	)
TOPIX Indexa		Long		2		357,133		9/09/21		1,635
TOPIX Index		Short		2		357,133		9/09/21		(2,743	)
VSTOXX		Long		13		31,083		10/20/21		(484	)
VSTOXX		Long		20		49,473		11/17/21		364
										(552,346	)
Interest Rate Contracts
3 Month EURIBORa		Long		129		38,260,033		12/19/22		5,539
10 Yr. Mini JGBa		Long		12		1,659,701		9/10/21		48
90 Day Eurodollara		Short		67		16,679,650		12/19/22		(17,932	)
90 Day Sterlinga		Short		194		33,170,172		12/21/22		30,507
Australian 10 Yr. Bonda		Long		65		6,936,252		9/15/21		84,329
Canadian 10 Yr. Bonda		Long		97		11,234,978		12/20/21		801
Euro-BOBLa		Long		95		15,139,742		9/08/21		(37,440	)
Euro-Bunda		Long		34		7,043,522		9/08/21		54,615
Euro-SCHATZa		Long		95		12,594,578		9/08/21		13,813
Japan 10 Yr. Bonda		Long		5		6,915,421		9/13/21		(2,188	)
Long Gilta		Long		65		11,460,232		12/29/21		(60,120	)
U.S. Treasury 2 Yr. Notea		Long		152		33,489,875		12/31/21		21,339
U.S. Treasury 5 Yr. Notea		Long		121		14,969,969		12/31/21		41,631
U.S. Treasury 5 Yr. Note		Short		7		866,031		12/31/21		(939	)
U.S. Treasury 10 Yr. Notea		Long		137		18,283,078		12/21/21		58,548
U.S. Treasury 10 Yr. Note		Short		40		5,338,125		12/21/21		5,818
U.S. Treasury 10 Yr. Ultra		Short		155		22,942,422		12/21/21		(4,931	)
U.S. Treasury Long Bonda		Long		62		10,104,063		12/21/21		30,195
U.S. Treasury Long Bond		Short		73		11,896,719		12/21/21		(35,279	)
U.S. Treasury Ultra Bond		Short		40		7,891,250		12/21/21		(14,400	)
										173,954
Total Futures Contracts									$	(14,349	)

*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 8.

At August 31, 2021, the Fund had the following forward exchange contracts outstanding. See Note 3.

Forward Exchange Contracts

Currency

Counterpartya

Type

Quantity

Contract Amount*

Settlement Date

Unrealized Appreciation

Unrealized Depreciation

OTC Forward Exchange Contracts

Brazilian Real

BOFA

Buy

1,192,000

226,616

9/02/21

$

3,909

$

–

Brazilian Real

BOFA

Sell

1,192,000

222,359

9/02/21

–

(8,166

)

New Zealand Dollar

JPHQ

Sell

3,325,690

3,050,000

AUD

9/15/21

13,392

(125,396

)

Australian Dollar

JPHQ

Sell

400,000

300,202

9/15/21

7,554

–

British Pound

BNYM

Sell

1,285,306

1,806,263

9/15/21

39,083

–

British Pound

JPHQ

Buy

1,000,000

1,417,661

9/15/21

–

(42,750

)

British Pound

MSCO

Sell

87,349

123,597

9/15/21

3,500

–

Canadian Dollar

JPHQ

Buy

1,209,315

1,000,000

9/15/21

–

(41,504

)

56

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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)
Euro	JPHQ	Sell		4,061,140		30,829,899	CNY		9/15/21	$	2,938	$	(33,440	)
Chinese Yuan	JPHQ	Sell		11,542,775		1,769,401			9/15/21		–		(16,387	)
Chinese Yuan	MSCO	Sell		22,955,051		3,550,743			9/15/21		11,749		(7,108	)
Colombian Peso	JPHQ	Buy		4,295,968,381		1,152,971			9/15/21		–		(14,105	)
Czech Koruna	JPHQ	Buy		28,968,049		1,386,286			9/15/21		–		(40,970	)
Czech Koruna	JPHQ	Sell		6,011,342		276,647			9/15/21		–		(2,528	)
Euro	BNYM	Sell		3,082,824		3,736,653			9/15/21		95,451		–
Chinese Yuan	JPHQ	Sell		9,854,096		1,250,000	EUR		9/15/21		5,734		(52,016	)
Euro	JPHQ	Sell		1,177,175		1,397,135			9/15/21		7,807		(1,064	)
Euro	MSCO	Sell		1,462,764		1,762,357			9/15/21		34,648		–
Indonesian Rupiah	JPHQ	Buy		11,418,215,000		794,497			9/15/21		5,018		–
Indonesian Rupiah	JPHQ	Sell		49,882,422,384		3,459,993			9/15/21		–		(32,824	)
New Zealand Dollar	JPHQ	Sell		661,470		51,175,791	JPY		9/15/21		4,832		(5,703	)
Mexican Peso	JPHQ	Buy		36,571,373		1,829,758			9/15/21		–		(12,685	)
Mexican Peso	JPHQ	Sell		7,641,896		374,952			9/15/21		–		(4,741	)
Australian Dollar	JPHQ	Sell		2,546,384		2,648,822	NZD		9/15/21		34,851		(31,270	)
New Zealand Dollar	JPHQ	Sell		1,300,000		909,427			9/15/21		385		(7,006	)
Polish Zloty	JPHQ	Buy		5,068,550		1,343,427			9/15/21		–		(20,051	)
Polish Zloty	JPHQ	Sell		5,068,550		1,381,049			9/15/21		57,673		–
Russian Ruble	JPHQ	Buy		191,403,947		2,586,442			9/15/21		20,413		–
Russian Ruble	JPHQ	Sell		373,557,218		5,063,500			9/15/21		2,152		(26,373	)
Australian Dollar	JPHQ	Sell		2,482,092		2,424,628	SGD		9/15/21		421		(12,843	)
Singapore Dollar	JPHQ	Sell		1,906,472		1,434,000			9/15/21		16,267		(262	)
South African Rand	JPHQ	Buy		24,396,637		1,664,595			9/15/21		11,856		(552	)
South African Rand	JPHQ	Sell		37,727,841		2,709,912			9/15/21		118,242		–
South Korean Won	JPHQ	Buy		1,581,402,680		1,400,000			9/15/21		–		(36,341	)
South Korean Won	JPHQ	Sell		1,165,000,000		1,000,000			9/15/21		–		(4,591	)
Taiwan Dollar	JPHQ	Buy		66,631,000		2,400,000			9/15/21		4,236		–
Taiwan Dollar	JPHQ	Sell		177,534,940		6,400,000			9/15/21		15,864		(21,830	)
Thai Baht	JPHQ	Buy		28,679,620		884,000			9/15/21		18,292		(12,553	)
Australian Dollar	BZWS	Buy		1,818,000		1,349,768			9/17/21		573		(20,240	)
Australian Dollar	BZWS	Sell		3,334,000		2,554,019			9/17/21		115,572		(805	)
Australian Dollarb	MSCO	Buy		1,909,000		1,418,101			9/17/21		9,805		(31,226	)
Australian Dollarb	MSCO	Sell		12,704,000		9,565,800			9/17/21		281,217		(10,035	)
British Pound	BZWS	Buy		2,589,000		3,564,835			9/17/21		7,539		(12,709	)
British Pound	BZWS	Sell		890,000		1,237,175			9/17/21		13,763		(266	)
British Poundb	MSCO	Buy		6,992,000		9,893,028			9/17/21		13		(279,612	)
British Pound	MSCO	Sell		10,545,000		14,565,852			9/17/21		83,212		(15,869	)
Canadian Dollar	BZWS	Buy		280,000		224,164			9/17/21		–		(2,238	)
Canadian Dollar	BZWS	Sell		9,333,000		7,636,526			9/17/21		239,268		–
Canadian Dollarb	MSCO	Buy		11,406,000		9,401,762			9/17/21		2,324		(363,787	)
Canadian Dollarb	MSCO	Sell		11,386,000		9,075,116			9/17/21		58,352		(7,684	)
Euro	BZWS	Buy		5,829,000		6,905,442			9/17/21		2,119		(22,485	)
Euro	BZWS	Sell		8,629,000		10,271,771			9/17/21		89,243		(9,843	)
Eurob	MSCO	Buy		749,000		903,409			9/17/21		622		(19,331	)
Eurob	MSCO	Sell		13,639,000		16,137,409			9/17/21		68,513		(41,163	)
Japanese Yen	BZWS	Buy		56,297,000		510,807			9/17/21		1,093		(99	)
Japanese Yen	BZWS	Sell		56,297,000		512,422			9/17/21		875		(254	)
Japanese Yenb	MSCO	Buy		670,076,000		6,098,069			9/17/21		8,681		(15,031	)
Japanese Yenb	MSCO	Sell		2,377,329,000		21,657,762			9/17/21		65,305		(20,050	)
Mexican Pesob	MSCO	Buy		54,612,000		2,730,968			9/17/21		1,108		(19,410	)
Mexican Pesob	MSCO	Sell		6,093,000		299,520			9/17/21		40		(3,171	)
New Zealand Dollarb	MSCO	Buy		9,137,000		6,479,679			9/17/21		25,172		(66,444	)
New Zealand Dollarb	MSCO	Sell		11,782,000		8,183,164			9/17/21		4,544		(123,592	)

57

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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)
Swedish Krona		BZWS		Sell		1,000		120			9/17/21	$	4	$	–
Swiss Francb		MSCO		Buy		801,000		881,867			9/17/21		1,763		(8,544	)
Swiss Francb		MSCO		Sell		6,856,000		7,507,223			9/17/21		42,271		(25,189	)
Australian Dollar		BNYM		Sell		989,000		745,360			9/24/21		21,747		–
British Pound		BNYM		Sell		3,154,079		4,310,112			9/24/21		–		(26,572	)
Canadian Dollar		BNYM		Sell		2,207,000		1,785,472			9/24/21		36,242		–
Euro		BNYM		Sell		37,404,952		43,840,807			9/24/21		66,021		(413,619	)
Hong Kong Dollar		BNYM		Sell		26,331,901		3,379,777			9/24/21		–		(6,112	)
Swiss Franc		BNYM		Sell		13,568,753		14,813,049			9/24/21		–		(13,501	)
Canadian Dollar		BNYM		Sell		4,794,000		3,897,744			9/29/21		98,133		–
Canadian Dollar		JPHQ		Buy		900,000		717,175			9/29/21		–		(3,856	)
Canadian Dollar		JPHQ		Sell		900,000		732,017			9/29/21		18,698		–
British Pound		JPHQ		Sell		1,200,000		1,667,043			9/30/21		17,083		–
Euro		BNYM		Sell		771,000		922,077			9/30/21		11,329		(190	)
Euro		JPHQ		Buy		600,000		709,428			9/30/21		–		(527	)
Euro		JPHQ		Sell		4,380,000		5,235,983			9/30/21		61,002		–
Hong Kong Dollar		JPHQ		Sell		570,000		73,413			9/30/21		119		–
Japanese Yen		BNYM		Sell		45,879,617		414,491			9/30/21		–		(2,654	)
Colombian Peso		MSCS		Sell		424,857,000		112,902			10/08/21		410		–
Euro		BOFA		Sell		370,000		438,106			10/26/21		744		–
Euro		BZWS		Sell		115,000		136,122			10/26/21		185		–
Chinese Yuan		JPHQ		Sell		20,676,276		3,170,000			10/27/21		–		(14,224	)
Colombian Peso		JPHQ		Buy		17,076,121,600		4,418,000			10/27/21		99,120		(383	)
Colombian Peso		JPHQ		Sell		15,169,681,805		3,886,523			10/27/21		–		(125,949	)
Czech Koruna		JPHQ		Buy		68,825,192		3,208,067			10/27/21		–		(14,039	)
Czech Koruna		JPHQ		Sell		68,825,192		3,146,223			10/27/21		–		(47,805	)
Hungarian Forint		JPHQ		Sell		1,523,633,028		4,358,293	EUR		10/27/21		42,150		(41,436	)
Euro		JPHQ		Sell		2,678,293		3,182,324			10/27/21		16,366		–
Euro		JPHQ		Sell		1,638,838		582,688,902	HUF		10/27/21		30,945		–
Indonesian Rupiah		JPHQ		Sell		62,907,936,240		4,327,880			10/27/21		–		(61,459	)
Mexican Peso		JPHQ		Buy		113,685,005		5,589,247			10/27/21		32,439		(5,676	)
Mexican Peso		JPHQ		Sell		102,445,961		5,050,000			10/27/21		18,571		(29,376	)
Peruvian Nuevo Sol		JPHQ		Sell		9,783,501		2,407,403			10/27/21		17,714		(606	)
Russian Ruble		JPHQ		Buy		244,598,444		3,280,272			10/27/21		26,234		–
Russian Ruble		JPHQ		Sell		148,425,094		1,985,844			10/27/21		759		(21,340	)
South African Rand		JPHQ		Buy		42,085,264		2,786,401			10/27/21		88,811		–
South African Rand		JPHQ		Sell		124,536,701		8,458,197			10/27/21		59,047		(109,040	)
South Korean Won		JPHQ		Buy		5,821,028,356		5,062,820			10/27/21		–		(45,623	)
South Korean Won		JPHQ		Sell		5,837,799,000		4,990,000			10/27/21		14,745		(56,396	)
British Pound		DBAB		Sell		166,000		230,176			10/29/21		1,922		–
Brazilian Real		JPHQ		Buy		26,520,081		5,019,084			11/03/21		84,107		(22,978	)
Brazilian Real		JPHQ		Sell		19,883,835		3,710,000			11/03/21		–		(98,967	)
South Korean Won		MSCO		Buy		3,407,000,663		2,918,986			11/08/21		17,260		–
South Korean Won		MSCO		Sell		3,763,314,871		3,217,580			11/08/21		5,785		(31,532	)
Euro		HSBC		Sell		125,000		147,588			11/17/21		–		(233	)
Mexican Peso		MSCO		Sell		1,111,000		54,620			11/19/21		29		(129	)
Brazilian Real		BOFA		Sell		1,192,000		223,401			12/02/21		–		(3,762	)
Singapore Dollar		JPHQ		Sell		492,736		500,000	AUD		12/15/21		–		(454	)
Chinese Yuan		JPHQ		Buy		4,562,600		700,000			12/15/21		1,064		–
Chinese Yuan		JPHQ		Sell		1,928,465		250,000	EUR		12/15/21		–		(491	)
Indonesian Rupiah		JPHQ		Buy		7,250,000,000		500,000			12/15/21		3,686		–
New Zealand Dollar		JPHQ		Buy		400,000		282,090			12/15/21		–		(441	)
South Korean Won		JPHQ		Buy		3,208,356,700		2,750,000			12/15/21		14,191		–
Taiwan Dollar		JPHQ		Buy		138,425,000		5,000,000			12/15/21		3,864		(8,766	)

58

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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)
Taiwan Dollar		JPHQ		Sell		53,854,650		1,950,000		12/15/21	$	6,642	$	–
Taiwan Dollar		JPHQ		Buy		218,296,000		8,000,000		3/01/22		–		(120,868	)
Taiwan Dollar		JPHQ		Sell		218,296,000		8,137,261		3/01/22		258,128		–
South Korean Won		JPHQ		Buy		335,400,900		300,000		3/16/22		–		(11,282	)
South Korean Won		JPHQ		Sell		335,106,000		300,000		3/16/22		11,535		–
Total Forward Exchange Contracts											$	2,846,085	$	(3,074,422	)
Net unrealized appreciation (depreciation)													$	(228,337	)

*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 8.

59

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

At August 31, 2021, the Fund had the following credit default swap contracts outstanding. See Note 3.

Credit Default Swap Contracts

Description	Annual Payment Rate Received (Paid)		Payment Frequency				Maturity Date		Notional Amounta			Value		Unamortized Upfront Payments (Receipts)		Unrealized Appreciation (Depreciation)		Ratingb
Centrally Cleared Swap Contracts
Contracts to Buy Protectionc
Single Name
Government of Mexico		(1.00)%		Quarterly				12/20/23		4,039,000		$	(58,299)	$	(11,786)	$	(46,513)
Government of Mexico		(1.00)%		Quarterly				12/20/23		61,000			(880)		(945)		65
Government of Mexico		(1.00)%		Quarterly				6/20/25		142,000			(2,030)		(1,790)		(240)
Government of South Africa		(1.00)%		Quarterly				12/20/24		2,814,000			35,011		83,192		(48,181)
Government of South Africa		(1.00)%		Quarterly				12/20/24		4,478,000			55,713		132,619		(76,906)
Government of Turkey		(1.00)%		Quarterly				6/20/25		909,000			77,937		206,196		(128,259)
Talen Energy Supply LLC		(1.00)%		Quarterly				6/20/23		419,000			188,960		149,793		39,167
Contracts to Sell Protectionc,d
Single Name
Government of South Africa		1.00%		Quarterly				12/20/24		2,847,000			(35,421)		(221,735)		186,314	BB-
Government of South Africa		1.00%		Quarterly				12/20/24		874,000			(10,874)		(25,494)		14,620	BB-
Government of Turkey		1.00%		Quarterly				12/20/22		826,000			(19,750)		(37,352)		17,602	B+
Talen Energy Supply LLC		1.00%		Quarterly				6/20/22		161,000			(56,169)		(48,300)		(7,869)	B-
Traded Index
CDX.EM.35		1.00%		Quarterly				6/20/26		3,570,000			(85,056)		(94,962)		9,906	Non- Investment Grade
Total Centrally Cleared Swap Contracts												$	89,142	$	129,436	$	(40,294)
OTC Swap Contracts
Contracts to Buy Protectionc
Single Name					Counterparty
Air France-KLM		(5.00)%		Quarterly		JPHQ		12/20/21		32,000	EUR		(592)		285		(877)
Air France-KLM		(5.00)%		Quarterly		JPHQ		12/20/21		48,000	EUR		(888)		317		(1,205)
Air France-KLM		(5.00)%		Quarterly		JPHQ		12/20/21		64,000	EUR		(1,184)		571		(1,755)
Air France-KLM		(5.00)%		Quarterly		JPHQ		6/20/22		73,000	EUR		(2,032)		(622)		(1,410)
Air France-KLM		(5.00)%		Quarterly		JPHQ		6/20/22		23,000	EUR		(640)		(438)		(202)
Air France-KLM		(5.00)%		Quarterly		JPHQ		6/20/22		44,000	EUR		(1,225)		(396)		(829)
Air France-KLM		(5.00)%		Quarterly		JPHQ		6/20/22		44,000	EUR		(1,225)		(377)		(848)
American Airlines Inc.		(5.00)%		Quarterly		BZWS		12/20/21		44,000			(920)		1,330		(2,250)
American Airlines Inc.		(5.00)%		Quarterly		BZWS		12/20/21		73,000			(1,527)		1,797		(3,324)
American Airlines Inc.		(5.00)%		Quarterly		BZWS		12/20/21		73,000			(1,527)		3,172		(4,699)
American Airlines Inc.		(5.00)%		Quarterly		BZWS		12/20/21		147,000			(3,074)		3,820		(6,894)
American Airlines Inc.		(5.00)%		Quarterly		BZWS		6/20/24		143,000			4,694		8,359		(3,665)
American Airlines Inc.		(5.00)%		Quarterly		BZWS		6/20/26		600,000			51,919		30,424		21,495
American Airlines Inc.		(5.00)%		Quarterly		CITI		12/20/21		44,000			(920)		1,613		(2,533)
American Airlines Inc.		(5.00)%		Quarterly		CITI		12/20/21		147,000			(3,074)		3,395		(6,469)
American Airlines Inc.		(5.00)%		Quarterly		CITI		6/20/26		103,000			8,913		9,551		(638)
American Airlines Inc.		(5.00)%		Quarterly		CITI		6/20/26		96,000			8,307		9,610		(1,303)
American Airlines Inc.		(5.00)%		Quarterly		FBCO		12/20/21		29,000			(606)		673		(1,279)
American Airlines Inc.		(5.00)%		Quarterly		FBCO		12/20/21		44,000			(920)		1,179		(2,099)
American Airlines Inc.		(5.00)%		Quarterly		GSCO		12/20/21		29,000			(606)		676		(1,282)
American Airlines Inc.		(5.00)%		Quarterly		GSCO		12/20/21		73,000			(1,527)		3,546		(5,073)
American Airlines Inc.		(5.00)%		Quarterly		JPHQ		12/20/21		29,000			(606)		1,107		(1,713)
American Airlines Inc.		(5.00)%		Quarterly		JPHQ		12/20/21		73,000			(1,527)		1,825		(3,352)
American Airlines Inc.		(5.00)%		Quarterly		JPHQ		12/20/25		241,000			19,025		42,274		(23,249)
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		BZWS		12/20/25		281,000			(22,796)		(11,450)		(11,346)

60

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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		Unamortized Upfront Payments (Receipts)		Unrealized Appreciation (Depreciation)		Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		BZWS		6/20/26		261,000			$    (18,671)	$	(11,742)	$	(6,929)
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		BZWS		6/20/26		72,000			(5,150)		(3,004)		(2,146)
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		GSCO		12/20/25		44,000			(3,569)		(2,390)		(1,179)
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		JPHQ		12/20/25		44,000			(3,569)		(2,390)		(1,179)
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		MSCS		6/20/26		238,000			(17,025)		(9,121)		(7,904)
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		MSCS		12/20/25		73,000			(5,922)		(3,965)		(1,957)
BT Group PLC		(1.00)%		Quarterly		BOFA		6/20/26		145,000	EUR		(2,388)		(2,661)		273
BT Group PLC		(1.00)%		Quarterly		BOFA		6/20/26		145,000	EUR		(2,388)		(2,619)		231
Dell Technologies Inc.		(1.00)%		Quarterly		BNPP		12/20/25		29,000			(324)		1,723		(2,047)
Dell Technologies Inc.		(1.00)%		Quarterly		BNPP		12/20/25		316,000			(3,529)		14,338		(17,867)
Dell Technologies Inc.		(1.00)%		Quarterly		CITI		12/20/25		37,000			(413)		1,817		(2,230)
Dell Technologies Inc.		(1.00)%		Quarterly		CITI		12/20/25		59,000			(659)		3,332		(3,991)
Dell Technologies Inc.		(1.00)%		Quarterly		JPHQ		12/20/25		190,000			(2,122)		7,550		(9,672)
Diamond Sports Group LLC		(5.00)%		Quarterly		BZWS		12/20/25		31,000			17,115		13,586		3,529
Diamond Sports Group LLC		(5.00)%		Quarterly		BZWS		12/20/25		44,000			24,292		19,303		4,989
Diamond Sports Group LLC		(5.00)%		Quarterly		GSCO		6/20/25		31,000			16,389		14,089		2,300
Diamond Sports Group LLC		(5.00)%		Quarterly		GSCO		12/20/25		1,000			552		386		166
Diamond Sports Group LLC		(5.00)%		Quarterly		GSCO		12/20/25		17,000			9,386		6,560		2,826
Diamond Sports Group LLC		(5.00)%		Quarterly		GSCO		12/20/25		17,000			9,386		6,564		2,822
Diamond Sports Group LLC		(5.00)%		Quarterly		GSCO		12/20/25		29,000			16,011		9,301		6,710
Diamond Sports Group LLC		(5.00)%		Quarterly		GSCO		12/20/25		33,000			18,219		12,187		6,032
Dow Inc.		(1.00)%		Quarterly		GSCO		6/20/25		78,000			(1,818)		(433)		(1,385)
Dow Inc.		(1.00)%		Quarterly		GSCO		6/20/25		78,000			(1,818)		(404)		(1,414)
Dow Inc.		(1.00)%		Quarterly		GSCO		6/20/25		78,000			(1,818)		(288)		(1,530)
GE Capital		(1.00)%		Quarterly		JPHQ		6/20/26		1,037,000			(15,934)		(9,143)		(6,791)
Government of Brazil		(1.00)%		Quarterly		BZWS		6/20/25		201,000			2,937		17,808		(14,871)
Government of Brazil		(1.00)%		Quarterly		CITI		6/20/26		2,361,000			77,436		100,094		(22,658)
Government of Brazil		(1.00)%		Quarterly		GSCO		6/20/26		1,868,000			61,266		76,739		(15,473)
Government of Brazil		(1.00)%		Quarterly		JPHQ		6/20/26		2,951,000			96,786		121,229		(24,443)
Government of Italy		(1.00)%		Quarterly		BOFA		6/20/24		132,000			(2,260)		1,741		(4,001)
Government of Italy		(1.00)%		Quarterly		JPHQ		6/20/24		218,000			(3,732)		1,338		(5,070)
Government of Mexico		(1.00)%		Quarterly		BZWS		6/20/26		1,510,000			(13,037)		5,573		(18,610)
Groupe Casino		(5.00)%		Quarterly		JPHQ		12/20/23		200,000	EUR		(10,136)		(5,873)		(4,263)
Hovnanian		(5.00)%		Quarterly		BZWS		6/20/26		29,000			2,621		2,972		(351)
Hovnanian		(5.00)%		Quarterly		BZWS		6/20/26		145,000			13,105		14,177		(1,072)
Kohl’s Corp.		(1.00)%		Quarterly		GSCO		12/20/25		899,000			(5,023)		70,063		(75,086)
Kohl’s Corp.		(1.00)%		Quarterly		MSCO		12/20/25		455,000			(2,542)		35,946		(38,488)
Lloyds Bank PLC		(1.00)%		Quarterly		JPHQ		12/20/24		540,000	EUR		(10,650)		1,506		(12,156)
Loxam SAS		(5.00)%		Quarterly		JPHQ		6/20/26		100,000	EUR		(7,897)		1,731		(9,628)
MBIA Inc.		(5.00)%		Quarterly		BZWS		6/20/22		24,000			(908)		(227)		(681)
MBIA Inc.		(5.00)%		Quarterly		CITI		6/20/22		40,000			(1,513)		(1,049)		(464)
MBIA Inc.		(5.00)%		Quarterly		CITI		12/20/24		112,000			(8,408)		(13,012)		4,604
MBIA Inc.		(5.00)%		Quarterly		GSCO		6/20/22		25,000			(945)		(519)		(426)
MBIA Inc.		(5.00)%		Quarterly		GSCO		12/20/24		244,000			(18,317)		(26,670)		8,353
Saipem Finance International BV		(5.00)%		Quarterly		JPHQ		6/20/26		115,000	EUR		(11,930)		(8,718)		(3,212)
Simon Property Group LP		(1.00)%		Quarterly		BZWS		12/20/25		625,000			(12,427)		10,189		(22,616)
Simon Property Group LP		(1.00)%		Quarterly		JPHQ		12/20/25		291,000			(5,786)		5,325		(11,111)
Simon Property Group LP		(1.00)%		Quarterly		MSCO		12/20/25		531,000			(10,558)		9,718		(20,276)

61

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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		Unamortized Upfront Payments (Receipts)		Unrealized Appreciation (Depreciation)		Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
Stena AB		(5.00)%		Quarterly		GSCO		6/20/24		87,000	EUR	$	(4,144)	$	4,372	$	(8,516)
Stena AB		(5.00)%		Quarterly		GSCO		6/20/24		186,000	EUR		(8,860)		9,147		(18,007)
Stena AB		(5.00)%		Quarterly		GSCO		6/20/26		29,000	EUR		(1,256)		1,274		(2,530)
Total OTC Swap Contracts												$	183,497	$	609,691	$	(426,194)
Total Credit Default Swap Contracts												$	272,639	$	739,127	$	(466,488)

^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 and internal ratings for index swaps. Internal ratings based on mapping into equivalent ratings from external vendors.

^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 August 31, 2021, the Fund had the following interest rate swap contracts outstanding. See Note 3.

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	$	1,058
Receive Fixed 4.30% Pay Floating INR MIBOR OIS Compound		Annually		12/15/22		6,300,000,000	INR		138,425
Receive Fixed 7.68% Pay Floating BRLCDI		Annually		1/02/23		27,000,000	BRL		(35,744)
Receive Fixed 5.47% Pay Floating Banxico Mexico 1 Month rate		Monthly		9/13/23		33,998,616	MXN		(11,769)
Receive Fixed 6.07% Pay Floating Banxico Mexico 1 Month rate		Monthly		10/25/23		64,272,029	MXN		7,862
Receive Fixed 4.08% Pay Floating rate 1-Day-COPIBR		Quarterly		10/27/23		7,238,980,968	COP		(1,751)
Receive Fixed 4.12% Pay Floating rate 1-Day-COPIBR		Quarterly		10/27/23		11,418,479,020	COP		(78)
Receive Fixed 4.72% Pay Floating rate 3-Month-JIBAR		Quarterly		10/27/23		49,768,689	ZAR		(3,338)
Receive Fixed 8.44% Pay Floating BRLCDI		Annually		1/02/25		12,000,000	BRL		(47,550)
Receive Fixed 6.30% Pay Floating rate 3-Month-JIBAR		Quarterly		7/31/25		53,795,745	ZAR		(2,292)
Receive Floating rate 3-Month USD LIBOR Pay Fixed rate 0.50%		Semi-Annually		6/16/26		1,400,000			(12,320)

62

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT 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 3-Month USD LIBOR Pay Fixed rate 0.50%		Semi-Annually		6/16/26		1,150,000		$	(8,706)
Receive Fixed 6.19% Pay Floating Banxico Mexico 1 Month rate		Monthly		9/09/26		34,475,624	MXN		(19,317)
Receive Fixed 2.56% Pay Floating rate China 7-Day Repo		Quarterly		10/27/26		45,835,000	CNY		53,002
Receive Fixed 5.22% Pay Floating rate 1-Day-COPIBR		Quarterly		10/27/26		13,305,609,030	COP		14,526
Receive Floating rate 6 Month-SORA Pay Fixed rate 1.28%		Semi-Annually		9/15/31		1,857,493	SGD		(15,035)
Receive Floating rate 6 Month-WIBOR Pay Fixed rate 1.86%		Annually		9/15/31		3,438,256	PLN		(5,143)
Receive Floating rate 6 Month-WIBOR Pay Fixed rate 1.98%		Annually		9/15/31		11,953,698	PLN		(52,810)
Receive Fixed 6.93% Pay Floating Banxico Mexico 1 Month rate		Monthly		10/15/31		64,105,000	MXN		(8,696)
Receive Fixed 2.63% Pay Floating rate 6-Month-BURBOR		Semi-Annually		10/27/31		560,000,000	HUF		(31,345)
Receive Fixed 2.74% Pay Floating rate 6-Month-BURBOR		Semi-Annually		10/27/31		565,000,000	HUF		(12,842)
Receive Fixed 7.33% Pay Floating rate 3-Month-JIBAR		Quarterly		10/27/31		25,017,434	ZAR		7,704
Total Interest Rate Swap Contracts								$	(46,159)

*In U.S. dollars unless otherwise indicated.

At August 31, 2021, the Fund had the following total return swap contracts outstanding. See Note 3.

Total Return Swap Contracts

Underlying Instrument	Financing Rate	Payment Frequency	Counter- party	Maturity Date		Notional Value*			Value/Unrealized Appreciation (Depreciation)
OTC Swap Contracts
Equity Contracts - Longa
Alstria Office REIT-AG	1-Day EONIA + 0.65%	Monthly	MSCO		8/24/22		68,322	EUR	$	(2,300)
Amundi SA	1-Day EONIA + 0.40%	Monthly	MSCS		3/14/25		266,038	EUR		212,152
Anima Holding SpA	1-Month EURIBOR + 0.40%	Monthly	MSCS		12/21/21		1,045,491	EUR		19,350
Avast PLC	1-Day SONIA + 0.40%	Monthly	BZWS		7/27/22		2,039,512	GBP		(22,370)
Barclays PLC	1-Month LIBOR + 0.40%	Monthly	MSCS		4/20/22		1,018,144	GBP		11,084
BHP Group PLC	1-Day FEDEF + 0.40%	Monthly	MSCS		11/22/22		523,119			(11,225)
BNP Paribas SA	1-Month LIBOR + 0.40%	Monthly	MSCS		3/14/25		1,368,172	EUR		881,848
Bureau Veritas SA	1-Month EURIBOR + 0.40%	Monthly	GSCO		12/21/21		208,565	EUR		(2,320)
Bureau Veritas SA	1-Month EURIBOR + 0.40%	Monthly	MSCS		3/14/25		1,082,490	EUR		567,030
Callaway Golf Co.	1-Day FEDEF + 0.40%	Monthly	MSCO		11/22/22		1,267,860			(313,820)
Capitaland Ltd.	1-Month SIBOR + 0.55%	Monthly	MSCO		5/22/23		1,626,685	SGD		95,042
Christian Dior SE	1-Month EURIBOR + 0.40%	Monthly	BZWS		5/25/22		1,447,038	EUR		13,504
Clearway Energy Inc.	1-Month LIBOR + 0.35%	Monthly	JPHQ		1/20/22		211,271			44,088
Clearway Energy Inc.	1-Month LIBOR + 0.35%	Monthly	JPHQ		4/20/22		33,929			7,100
Croda International PLC	1-Month LIBOR + 0.40%	Monthly	MSCS		4/20/22		1,227,173	GBP		63,460
Crown Holdings Inc.	1-Day FEDEF + 0.40%	Monthly	MSCO		11/22/22		1,543,930			174,174
Crown Resorts Ltd.	1-Month BBSW + 0.55%	Monthly	MSCO		12/22/21		247,672	AUD		(40,331)
Danone SA	1-Month EURIBOR + 0.40%	Monthly	MSCO		12/21/21		2,196,194	EUR		(58,350)
Danone SA	1-Month LIBOR + 0.40%	Monthly	MSCS		3/14/25		3,905,164	EUR		646,395
Deutsche Wohnen SE	1-Month EURIBOR + 0.40%	Monthly	BZWS		5/26/22		1,938,086	EUR		3,498

63

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counter- party

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts - Longa (continued)

bDialog Semiconductor PLC

1-Day EONIA + 0.65%

Monthly

MSCS

9/06/22

609,700

EUR

$

34,862

Electricite de France SA

1-Day EONIA + 0.40%

Monthly

MSCS

9/23/22

2,214,089

EUR

76,458

Elisa OYJ

1-Month EURIBOR + 0.40%

Monthly

MSCO

12/21/21

254,118

EUR

(11,343)

Elisa OYJ

1-Month EURIBOR + 0.40%

Monthly

MSCS

3/14/25

444,640

EUR

110,651

Engie SA

1-Day EONIA + 0.40%

Monthly

MSCS

9/23/22

3,953,906

EUR

57,448

Entain PLC

1-Month LIBOR + 0.40%

Monthly

BZWS

2/28/22

811,615

GBP

10,475

Enterprise Products Partners LP

1-Month LIBOR + 0.90%

Monthly

BOFA

3/04/22

101,553

(7,208)

Enterprise Products Partners LP

1-Month LIBOR + 0.90%

Monthly

GSCO

4/20/22

98,920

(7,073)

Equiniti Group PLC

1-Day SONIA + 0.40%

Monthly

BZWS

5/16/22

335,528

GBP

(2,571)

ESG Core Investments BV

1-Day EONIA + 0.65%

Monthly

MSCS

9/06/22

41,835

EUR

(3,665)

Ferguson PLC

1-Day EONIA + 0.65%

Monthly

MSCO

9/23/22

654,490

221,324

Frasers Group PLC

1-Month LIBOR + 0.40%

Monthly

MSCS

4/20/22

904,816

GBP

95,804

Gamesys Group PLC

1-Day SONIA + 0.65%

Monthly

MSCO

2/08/22

287,086

GBP

(12,663)

Gamesys Group PLC

1-Day SONIA + 0.40%

Monthly

BZWS

3/29/22

600,824

GBP

(10)

GCP Student Living PLC

1-Day SONIA + 0.40%

Monthly

BZWS

7/26/22

330,321

GBP

1,063

GrandVision NV

1-Month LIBOR + 0.05%

Monthly

BZWS

5/11/22

2,123,915

EUR

4,438

HeidelbergCement AG

1-Month EURIBOR + 0.40%

Monthly

MSCS

12/21/21

2,408,965

EUR

(12,825)

Hella GmbH & Co. KGaA

1-Month EURIBOR + 0.40%

Monthly

BZWS

8/17/22

1,154,326

EUR

(1,793)

Hermes International

1-Month EURIBOR + 0.40%

Monthly

MSCO

12/21/21

641,060

EUR

(48,592)

Hikma Pharmaceuticals PLC

1-Month LIBOR + 0.40%

Monthly

MSCS

4/20/22

115,677

GBP

3,348

Hitachi Metals Ltd.

1-Day MUTSCALM + 0.55%

Monthly

MSCO

8/25/22

80,583,203

JPY

164

Iliad SA

1-Day EONIA + 0.65%

Monthly

MSCO

9/06/22

128,205

EUR

(91)

ITV PLC

1-Month LIBOR + 0.40%

Monthly

MSCS

4/20/22

1,623,361

GBP

(33,854)

Kansas City Southern

1-Day FEDEF + 0.40%

Monthly

MSCO

11/22/22

1,603,065

66,079

Kering SA

1-Month EURIBOR + 0.40%

Monthly

MSCO

12/21/21

997,644

EUR

(172,735)

Kering SA

1-Month EURIBOR + 0.40%

Monthly

MSCS

3/14/25

1,461,221

EUR

740,130

Landmark Infrastructure Partners LP

1-Month LIBOR + 0.35%

Monthly

BZWS

5/20/22

1,460,874

2,587

LG Chem Ltd.

1-Day FEDEF + 0.30%

Monthly

MSCO

8/10/23

4,090,718

(507,376)

LVMH Moet Hennessy Louis Vuitton SE

1-Day EONIA + 0.40%

Monthly

MSCS

3/14/25

348,838

EUR

313,401

Meggitt PLC

1-Day SONIA + 0.65%

Monthly

MSCO

2/08/22

1,307,171

GBP

(25,028)

Meggitt PLC

1-Day SONIA + 0.65%

Monthly

BZWS

8/17/22

996,519

GBP

(8,228)

MGM Growth Properties LLC

1-Month LIBOR + 0.35%

Monthly

BZWS

8/08/22

494,873

10,228

Monmouth Real Estate Investment Corp.

1-Month LIBOR + 0.35%

Monthly

BZWS

1/19/22

458,043

2,203

Nestle SA

1-Month LIBOR + 0.40%

Monthly

MSCS

1/20/22

1,649,883

CHF

30,455

bProofpoint Inc.

1-Day FEDEF + 0.40%

Monthly

MSCO

11/22/22

3,632,160

61,740

Ryanair Holdings PLC

1-Month EURIBOR + 0.40%

Monthly

MSCS

12/21/21

774,906

EUR

(35,685)

Sanne Group PLC

1-Day SONIA + 0.40%

Monthly

BZWS

6/24/22

1,641,783

GBP

(4,872)

Siltronic AG

1-Day EONIA + 0.65%

Monthly

MSCO

11/03/21

253,299

EUR

566

Siltronic AG

1-Day EONIA + 0.65%

Monthly

MSCS

11/03/21

255,669

EUR

(8,329)

Siltronic AG

1-Month LIBOR + 0.40%

Monthly

BZWS

2/28/22

2,531,220

EUR

(20,370)

Smith & Nephew PLC

1-Month LIBOR + 0.40%

Monthly

MSCO

4/20/22

3,920,780

GBP

86,855

Smiths Group PLC

1-Month LIBOR + 0.40%

Monthly

MSCS

4/20/22

979,234

GBP

(1,777)

Societe Generale SA

1-Month LIBOR + 0.40%

Monthly

MSCS

3/14/25

853,440

EUR

596,800

Spark Infrastructure Group

1-Month BBSW + 0.55%

Monthly

MSCO

12/22/21

96,579

AUD

5,864

Stroeer SE & Co. KGaA

1-Month EURIBOR + 0.40%

Monthly

MSCS

12/21/21

934,730

EUR

39,457

Suez SA

1-Day EONIA + 0.65%

Monthly

MSCO

9/06/22

119,078

EUR

(1,508)

Sydney Airport Finance Co. Pty Ltd.

1-Month BBSW + 0.55%

Monthly

MSCO

8/24/22

178,554

AUD

3,509

Tabcorp Holdings Ltd.

1-Month BBSW + 0.55%

Monthly

MSCO

12/22/21

857,517

AUD

(17,032)

TGOOD

1-Day FEDEF + 0.30%

Monthly

MSCS

9/28/22

2,156,236

140,108

Toshiba Corp.

1-Day MUTSCALM + 0.55%

Monthly

MSCO

6/22/22

5,508,025

JPY

3,276

Ultra Electronics Holdings PLC

1-Day SONIA + 0.65%

Monthly

MSCO

2/08/22

13,010

GBP

(499)

Vodafone Group PLC

1-Day SONIA + 0.65%

Monthly

MSCS

2/08/22

951,494

GBP

114,868

Willis Towers Watson PLC

1-Day FEDEF + 0.40%

Monthly

MSCS

11/22/22

4,296,825

(49,510)

Wm Morrison Supermarkets PLC

1-Day SONIA + 0.65%

Monthly

MSCO

2/08/22

56,124

GBP

8,122

4,135,655

64

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counter- party

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts - Shortc

Arthur J. Gallagher & Co.

1-Day FEDEF - 0.35%

Monthly

MSCO

2/04/22

2,237,201

$

(68,475)

Ball Corp.

1-Day FEDEF - 0.35%

Monthly

MSCO

2/04/22

384,539

(38,180)

BHP Group PLC

1-Day FEDEF - 2.02%

Monthly

MSCS

2/04/22

624,865

84,369

Canadian National Railway Co.

1-Day FEDEF - 0.40%

Monthly

MSCO

8/31/22

185,588

(13,795)

Canadian Pacific Railway Ltd.

1-Day FEDEF - 0.35%

Monthly

MSCO

2/04/22

885,151

35,870

Capitaland Integrated Commercial Trust

1-Day SOFR - 0.50%

Monthly

MSCO

5/22/23

142,355

SGD

(899)

Carnival Corp.

1-Month LIBOR - 0.40%

Monthly

MSCS

9/20/22

524,803

(52,575)

CLP Holdings

1-Day HONIX - 0.05%

Monthly

MSCO

7/20/23

11,008,611

HKD

7,754

Colruyt SA

1-Day EONIA - 0.40%

Monthly

MSCS

3/14/25

1,373,519

EUR

(254,176)

DJ EURO STOXX 50 Index

1-Day EONIA - 0.45%

Monthly

MSCO

3/22/22

307,887

EUR

(260,781)

Elisa OYJ

1-Day EONIA - 0.40%

Monthly

MSCS

3/14/25

390,256

EUR

(92,108)

Hannover Rueck SE

1-Day EONIA - 0.35%

Monthly

MSCS

3/14/25

558,395

EUR

(187,911)

Hennes & Mauritz AB

1-Week STIBOR - 0.40%

Monthly

MSCS

3/14/25

5,777,721

SEK

(131,233)

Industrial Select Sector Index

1-Day LIBOR - 0.40%

Monthly

MSCO

8/22/23

4,006,951

(20,706)

JD Sports Fashion PLC

1-Day SONIA - 0.30%

Monthly

MSCS

4/20/22

170,151

GBP

(17,383)

KOSPI 200 Index

1-Day FEDEF - 0.35%

Monthly

MSCO

9/09/21

2,814,531

(79,945)

L’Oreal SA

1-Day EONIA - 0.35%

Monthly

GSCO

3/14/25

573,130

EUR

(449,608)

LVMH Moet Hennessy Louis Vuitton SE

1-Day EONIA - 0.30%

Monthly

BZWS

5/25/22

1,233,738

EUR

(8,682)

Marks & Spencer Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

4/20/22

199,569

GBP

(74,835)

Marsh McLennan

1-Day FEDEF - 0.35%

Monthly

MSCO

2/04/22

2,103,891

(156,959)

Morgan Stanley MSHDGCWN Index

1-Day RBACR - 0.60%

Monthly

MSCO

8/24/22

186,193

AUD

(9,129)

Morgan Stanley MSHDGTAH Index

1-Day RBACR - 0.60%

Monthly

MSCO

6/26/23

890,564

AUD

(37,880)

Morgan Stanley MSPSARKK Index

1-Day FEDEF - 0.46%

Monthly

MSCO

9/21/22

280,792

(17,150)

Morgan Stanley MSPSFERL Index

1-Day FEDEF - 0.35%

Monthly

MSCO

9/21/22

277,233

(38,259)

Morgan Stanley MSPSHRTZ Index

1-Day FEDEF - 0.35%

Monthly

MSCO

9/21/22

638,950

4,895

Morgan Stanley MSPSKSS Index

1-Day FEDEF - 0.40%

Monthly

MSCO

9/21/22

348,303

(18,914)

Morgan Stanley MSPSPRMW Index

1-Day FEDEF - 0.55%

Monthly

MSCO

9/21/22

574,402

(101,688)

Morgan Stanley MSPSPRNT Index

1-Day FEDEF - 1.48%

Monthly

MSCO

9/21/22

22,740

(1,402)

Morgan Stanley MSPSVOD Index

1-Day FEDEF - 0.39%

Monthly

MSCO

9/21/22

655,308

(114,780)

Morgan Stanley MSPSXLU Index

1-Day FEDEF - 0.35%

Monthly

MSCO

9/21/22

1,061,175

(155,372)

Morgan Stanley MSPSXPOH Index

1-Day FEDEF - 0.35%

Monthly

MSCO

9/21/22

952,995

(40,100)

Next PLC

1-Day SONIA - 0.30%

Monthly

MSCS

4/20/22

663,960

GBP

(8,866)

Nike Inc.

1-Day FEDEF - 0.35%

Monthly

MSCO

3/16/22

1,336,643

56,091

Philadelphia SE Utility Index

1-Day FEDEF - 0.05%

Monthly

MSCO

8/22/23

11,188,499

10,367

Severn Trent PLC

1-Day SONIA - 0.35%

Monthly

MSCS

9/26/22

803,197

GBP

40,423

Siltronic AG

1-Day EONIA - 4.00%

Monthly

BZWS

3/04/22

1,170,266

EUR

(1,161)

STOXX Europe 600 Real Estate Index

1-Day EONIA - 0.45%

Monthly

MSCO

8/24/22

34,370

EUR

177

Straits Times Index

1-Day SOFR - 0.65%

Monthly

MSCO

5/24/23

848,520

SGD

13,051

Swisscom AG

1-Day SARON - 0.35%

Monthly

MSCS

3/14/25

749,259

CHF

(107,871)

Tesla Inc.

1-Day FEDEF - 0.35%

Monthly

MSCS

3/16/22

406,824

(14,805)

Tesla Inc.

1-Month LIBOR - 0.35%

Monthly

GSCO

12/31/25

571,883

(72,613)

United Utilities Group PLC

1-Day SONIA - 0.35%

Monthly

MSCS

9/26/22

806,598

GBP

18,146

VICI Properties Inc.

1-Month LIBOR - 0.35%

Monthly

BZWS

8/08/22

507,914

(6,494)

(2,383,592)

Interest Rate Contracts – Longa

Government of Egypt

1-Day FEDEF

Monthly

CITI

1/11/22

476,021

8,490

Government of Indonesia

3-Month LIBOR + 0.70%

Monthly

BOFA

5/18/22

2,043,470

(23,744)

Government of Indonesia

3-Month LIBOR + 0.60%

Monthly

DBAB

6/15/32

573,840

46,227

30,973

Total - Total Return Swap Contracts

$

1,783,036

*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 9 regarding fair value measurements.

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

65

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (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	ARM	Adjustable Rate Mortgage
BOFA	Bank of America Corp.	BRL	Brazilian Real	BADLAR	Argentina Deposit Rates BADLAR Private Banks ARS
BZWS	Barclays Bank PLC	CAD	Canadian Dollar	BBSW	Bank Bill Swap Rate
CITI	Citigroup, Inc.	CHF	Swiss Franc	BRLCDI	Brazil Cetip Di Interbank Deposit Rate
DBAB	Deutsche Bank, AG	CNY	Chinese Yuan	BURBOR	Budapest Interbank Offered Rate
FBCO	Credit Suisse Group AG	COP	Colombian Peso	CLO	Collateralized Loan Obligation
GSCO	The Goldman Sachs Group, Inc.	EGP	Egyptian Pound	COPIBR	Colombian Peso Interbank Offered Rate
HSBC	HSBC Bank USA, N.A.	EUR	Euro	DIP	Debtor-In-Possession
JPHQ	JP Morgan Chase & Co.	GBP	British Pound	EONIA	Euro OverNight Index Average
MSCO	Morgan Stanley & Co. LLC	HKD	Hong Kong Dollar	ETF	Exchange Traded Fund
MSCS	Morgan Stanley Capital Services LLC	HUF	Hungarian Forint	EURIBOR	Euro Interbank Offered Rate
		IDR	Indonesian Rupiah	FEDEF	Federal Funds Effective Rate
		INR	Indian Rupee	FHLMC	Federal Home Loan Mortgage Corp.
		JPY	Japanese Yen	FNMA	Federal National Mortgage Association
		KRW	South Korean Won	FRN	Floating Rate Note
		MXN	Mexican Peso	HONIX	Hong Kong Overnight Index Rate
		NZD	New Zealand Dollar	JIBAR	Johannesburg Interbank Agreed Rate
		PEN	Peruvian Nuevo Sol	KDR	Korean Depositary Receipt
		PLN	Polish Zloty	LIBOR	London InterBank Offered Rate
		RUB	Russian Ruble	MIBOR	Mumbai Interbank Offered Rate
		SEK	Swedish Krona	MTN	Medium Term Note
		SGD	Singapore Dollar	MUTSCALM	Japan Unsecured Overnight Call Rate
		USD	United States Dollar	OIS	Overnight Indexed Swap
		ZAR	South African Rand	PIK	Payment In-Kind
				RBACR	Reserve Bank of Australia Cash Rate
				REIT	Real Estate Investment Trust
				SARON	Swiss Average Rate Overnight
				SIBOR	Singapore Interbank Offered Rate
				SOFR	Secured Overnight Financing Rate
Index				SORA	Singapore Overnight Rate Average
CDX.EM	CDX Emerging Markets Index			SONIA	Sterling Overnight Index Average
				SPAC	Special Purpose Acquisition Company
				SPDR	Standard & Poor’s Depositary Receipt
				STIBOR	Stockholm Interbank Offered Rate
				WIBOR	Warsaw Interbank Offered Rate

66

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Statement of Investments, August 31, 2021 (unaudited)

Franklin K2 Long Short Credit Fund

	Country		Shares/             Warrants		Value
Common Stocks and Other Equity Interests 2.6%
Automobiles 0.1%
aGeneral Motors Co.		United States		2,700	$	132,327
Biotechnology 0.0%†
aCytoDyn Inc.		United States		2,389		3,297
Commercial Services & Supplies 0.3%
aCM Life Sciences III Inc.		United States		2,593		26,345
Covanta Holding Corp.		United States		5,993		120,160
aExecutive Network Partnering Corp., 9/25/28, wts.		United States		925		638
aExecutive Network Partnering Corp., A		United States		6,280		61,167
aGores Guggenheim Inc., A		United States		905		8,896
aGores Guggenheim Inc., A, 3/25/28, wts.		United States		181		297
aGores Technology Partners II Inc.		United States		362		3,616
aGores Technology Partners Inc.		United States		145		1,446
aHedosophia European Growth		United Kingdom		1,142		12,945
Iron Spark I Inc., A		United States		1,578		15,622
aLandcadia Holdings IV Inc.		United States		1,374		13,657
aTech And Energy Transition Corp.		United States		2,499		24,752
aTishman Speyer Innovation Corp. II, A		United States		113		1,104
aTwelve Seas Investment Co. II, 3/2/28, wts.		United States		1,019		746
aTwelve Seas Investment Co. II, A		United States		3,059		29,611
						321,002
Diversified Financial Services 0.8%
a2MX Organic SA, 11/16/25, wts.		France		1,165		317
aAequi Acquisition Corp.		United States		440		4,345
aAequi Acquisition Corp., A		United States		3,553		34,500
aAfrican Gold Acquisition Corp., A		United States		1,912		18,508
aAfrican Gold Acquisition Corp., A, 3/13/28, wts.		United States		1,434		688
aAgile Growth Corp.		United States		1,147		11,378
aAlkuri Global Acquisition Corp., 1/1/28, wts.		United States		46		66
aAlkuri Global Acquisition Corp., A		United States		1,218		12,083
aAres Acquisition Corp., 12/30/21, wts.		United States		566		543
aAres Acquisition Corp., A		United States		2,110		20,488
aBlue Whale Acquisition Corp. I		United Arab Emirates		3,797		40,818
aCF Acquisition Corp. V, A		United States		1,761		17,258
aCF Acquisition Corp. V, A, 1/25/26, wts.		United States		603		615
aCorsair Partnering Corp.		United States		1,149		11,467
aCrystal Peak Acquisition		Cayman Islands		1,993		18,973
aCrystal Peak Acquisition, 6/22/26, wts.		Netherlands		802		329
aDecarbonization Plus Acquisition Corp. II, A		United States		1,373		13,538
aDHC Acquisition Corp., 12/31/27, wts.		United States		612		416
aDHC Acquisition Corp., A		United States		1,838		17,718
aDisruptive Acquisition Corp. I		United States		2,007		19,889
aDragoneer Growth Opportunities Corp. III, A		United States		3,050		29,860
aECP Environmental Growth Opportunities Corp., 2/11/28, wts.		United States		135		118
aElliott Opportunity II Corp.		United States		1,335		13,283
aEuropean Biotech Acquisition Corp.		Netherlands		361		3,581
aFar Peak Acquisition Corp.		United States		7,682		76,205
aFast Acquisition Corp. II		United States		213		2,112
aFigure Acquisition Corp. I, A		United States		409		4,012
aFigure Acquisition Corp. I, A, 12/31/27, wts.		United States		345		349
aForum Merger IV Corp.		United States		849		8,465
aFreedom Acquisition I Corp., A		United States		573		5,570
aFTAC Hera Acquisition Corp., A		United States		1,805		17,581
aFusion Acquisition Corp. II, A		United States		956		9,225

Quarterly Statement of Investments | See Notes to Consolidated Statements of Investments.

67

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country		Shares/             Warrants		Value
Common Stocks and Other Equity Interests (continued)
Diversified Financial Services (continued)
aFusion Acquisition Corp. II, A, 12/31/27, wts.		United States		318	$	219
aGlenfarne Merger Corp.		United States		361		3,541
aInvestindustrial Acquisition Corp., 10/30/27, wts.		United States		580		708
aION Acquisition Corp. 3 Ltd, A		Israel		796		7,697
aJoff Fintech Acquisition Corp., 2/4/28, wts.		United States		525		354
aJoff Fintech Acquisition Corp., A		United States		1,575		15,246
aKhosla Ventures Acquisition Co., A		United States		2,127		20,994
aKhosla Ventures Acquisition Co. III, A		United States		3,158		30,696
aL Catterton Asia Acquisition Corp.		Singapore		668		6,590
aLakestar SPAC I SE		Luxembourg		557		6,439
aLakestar SPAC I SE, 12/31/25, wts.		Luxembourg		210		191
aLDH Growth Corp. I		United States		180		1,778
aLead Edge Growth Opportunities Ltd.		United States		1,379		13,680
aLeo Holdings III Corp., 3/2/28, wts.		United States		76		55
aLeo Holdings III Corp., A		United States		382		3,770
aLerer Hippeau Acquisition Corp., A		United States		2,839		27,496
aLive Oak Mobility Acquisition Corp., A		United States		757		7,381
aMDH Acquisition Corp., A		United States		1,367		13,410
aMDH Acquisition Corp., A, 2/2/28, wts.		United States		683		376
aThe Music Acquisition Corp., A		United States		1,590		15,375
aThe Music Acquisition Corp., A, 2/5/28, wts.		United States		795		564
aNightdragon Acquisition Corp., A		United States		367		3,571
aObotech Acquisition SE, 4/30/26, wts.		Luxembourg		413		390
aObotech Acquisition SE, A		Luxembourg		1,240		14,114
aPegasus Acquisition Co. Europe BV		Netherlands		1,768		20,709
aPeridot Acquisition Corp. II		United States		735		7,203
aPershing Square Tontine Holdings Ltd., A		United States		916		18,073
aPioneer Merger Corp., A		United States		597		5,904
aPopulation Health Investment Co. Inc., A		United States		342		3,341
aPowered Brands, A		United States		1,065		10,384
aPWP Forward Acquisition Corp. I		United States		1,807		17,781
aSilver Crest Acquisition Corp., 12/15/25, wts.		United States		428		227
aSilver Crest Acquisition Corp., A		United States		857		8,407
aSupernova Partners Acquisition Co. II Ltd., 12/31/27, wts.		United States		594		523
aSupernova Partners Acquisition Co. II Ltd., A		United States		2,379		23,041
aSupernova Partners Acquisition Co. III Ltd.		United States		2,530		24,857
aSVF Investment Corp. 2, A		United States		72		702
aSVF Investment Corp. 3, A		United States		72		701
aTCV Acquisition Corp., A		United States		500		4,865
aTCW Special Purpose Acquisition Corp., 12/31/99, wts.		United States		612		458
aTCW Special Purpose Acquisition Corp., A		United States		1,838		17,865
aTekkorp Digital Acquisition Corp., 9/29/27, wts.		United States		433		407
aTPG Pace Beneficial II Corp., A		United States		83		807
aTwin Ridge Capital Acquisition Corp., 3/7/28, wts.		United States		734		488
aTwin Ridge Capital Acquisition Corp., A		United States		2,202		21,381
aVPC Impact Acquisition Holdings III Inc., A		United States		1,445		14,291
aWaldencast Acquisition Corp.		United States		82		839
aZimmer Energy Transition Acquisition Corp.		United States		2,110		21,290
						833,477
Diversified Telecommunication Services 0.2%
aBT Group PLC, A		United Kingdom		10,362		24,222
aLiberty Global PLC, C		United Kingdom		5,067		146,842
						171,064

68

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country		Shares/             Warrants		Value
Common Stocks and Other Equity Interests (continued)
Equity Real Estate Investment Trusts (REITs) 0.1%
VICI Properties Inc.		United States		5,183	$	160,207
Hotels, Restaurants & Leisure 0.2%
aCarnival PLC		United States		9,446		204,677
Independent Power & Renewable Electricity Producers 0.5%
Clearway Energy Inc., A		United States		12,246		364,196
bClearway Energy Inc., C		United States		3,524		110,618
						474,814
Multi-Utilities 0.1%
NiSource Inc.		United States		2,341		57,706
Oil, Gas & Consumable Fuels 0.0%†
a,cBighorn Permian Resources LLC, 12/31/21, wts.		United States		1,439		11,800
Paper & Forest Products 0.0%†
a,cTopco Associates LLC		United Kingdom		100,439		—
Professional Services 0.0%†
a,c,dAcosta Inc.		United States		923		7,042
Technology Hardware, Storage & Peripherals 0.3%
a,eDell Technologies Inc., C		United States		2,845		277,274
Textiles, Apparel & Luxury Goods 0.0%†
a,fSamsonite International SA, 144A		United States		10,513		22,030
Total Common Stocks and Other Equity Interests (Cost $2,188,709)						2,676,717
Convertible Preferred Stocks 0.4%
Media 0.3%
Viacomcbs Inc., 5.75%, cvt. pfd., A		United States		4,492		302,761
Multi-Utilities 0.1%
NiSource Inc., 7.75%, cvt. pfd.		United States		500		51,580
Professional Services 0.0%†
a,c,dAcosta Inc., cvt. pfd.		United States		925		46,601
Total Convertible Preferred Stocks (Cost $393,770)						400,942
Preferred Stocks 0.5%
Diversified Financial Services 0.0%†
a2MX Organic SA, pfd.		France		1,177		13,411
Electric Utilities 0.1%
SCE Trust IV, 5.375%, pfd., J		United States		1,357		34,061
SCE Trust VI, 5.00%, pfd.		United States		2,210		55,051
						89,112
Internet & Direct Marketing Retail 0.4%
Qurate Retail Inc., 8.00%, pfd.		United States		3,445		372,060
Thrifts & Mortgage Finance 0.0%†
FHLMC, 8.375%, pfd., Z		United States		1,093		1,607
FNMA, 8.25%, pfd., S		United States		1,075		1,892
						3,499
Total Preferred Stocks (Cost $440,304)						478,082

69

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country		Principal Amount*			Value
Convertible Bonds 0.6%
Airlines 0.2%
fAir France-KLM, senior note, Reg S, 0.125%, 3/25/26		France		11,716	EUR	$	222,777
Hotels, Restaurants & Leisure 0.0%†
fDraftkings Inc., senior note, 144A, zero cpn., 3/15/28		United States		9,000			8,667
Internet & Direct Marketing Retail 0.3%
fJust Eat Takeaway.Com NV, B, senior note, Reg S, 0.625%, 2/09/28		United Kingdom		200,000	EUR		221,315
Pinduoduo Inc., senior note, zero cpn., 12/01/25		China		55,000			52,897
fThe Realreal Inc., senior note, 144A, 1.00%, 3/01/28		United States		102,000			82,834
							357,046
IT Services 0.0%†
fFastly Inc., senior note, 144A, zero cpn., 3/15/26		United States		22,000			18,756
Leisure Products 0.1%
fPeloton Interactive Inc., senior note, 144A, zero cpn., 2/15/26		United States		56,000			50,747
Total Convertible Bonds (Cost $653,657)							657,993
Corporate Bonds and Notes 26.2%
Aerospace & Defense 0.4%
Spirit Aerosystems Inc.,
senior bond, 4.60%, 6/15/28		United States		246,000			240,772
fsenior secured note, 144A, 5.50%, 1/15/25		United States		118,000			123,610
							364,382
Airlines 0.7%
fAmerican Airlines Group Inc., senior note, 144A, 3.75%, 3/01/25		United States		499,000			447,229
fAmerican Airlines Inc./Aadvantage Loyalty Ip Ltd., senior secured note, 144A, 5.75%, 4/20/29		United States		263,000			284,361
							731,590
Auto Manufacturers 0.3%
Ford Motor Co., senior bond, 4.75%, 1/15/43		United States		250,000			270,006
Automobiles 0.6%
fAston Martin Capital Holdings Ltd., senior secured note, 144A, 10.50%, 11/30/25		United Kingdom		400,000			446,504
Ford Motor Credit Co. LLC, senior note, 3.625%, 6/17/31		United States		166,000			171,202
							617,706
Banks 0.2%
fVTB Bank OJSC Via VTB Capital SA, senior note, loan participation, Reg S, 6.95%, 10/17/22		Russia		200,000			210,325
Capital Markets 0.6%
feG Global Finance PLC, senior secured note, 144A, 6.25%, 10/30/25		United Kingdom		161,000	EUR		195,940
fStonex Group Inc., senior secured note, 144A, 8.625%, 6/15/25		United States		400,000			433,300
							629,240
Chemicals 0.5%
fPolar US Borrower LLC / Schenectady International Group Inc., senior note, 144A, 6.75%, 5/15/26		United States		500,000			505,625
Commercial Services 0.2%
fPaysafe Finance PLC / Paysafe Holdings US Corp., senior secured note, 144A, 4.00%, 6/15/29		United States		250,000			241,125
Communications Equipment 0.4%
fAudacy Capital Corp., secured note, 144A, 6.75%, 3/31/29		United States		450,000			454,734

70

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country		Principal Amount*			Value
Corporate Bonds and Notes (continued)
Construction & Engineering 0.7%
fArtera Services LLC, senior secured note, 144A, 9.033%, 12/04/25		United States		273,000		$	298,594
fBrand Industrial Services Inc., senior note, 144A, 8.50%, 7/15/25		United States		400,000			403,500
							702,094
Containers & Packaging 0.4%
fMauser Packaging Solutions Holding Co., senior note, 144A, 7.25%, 4/15/25		United States		400,000			395,920
Diversified Consumer Services 0.8%
fMPH Acquisition Holdings LLC, 144A,
senior note, 5.75%, 11/01/28		United States		400,000			382,532
senior secured note, 5.50%, 9/01/28		United States		185,000			188,315
fSotheby’s/Bidfair Holdings Inc., senior secured note, 144A, 5.875%, 6/01/29		United States		200,000			206,590
							777,437
Diversified Financial Services 1.1%
fAdvisor Group Holdings Inc., senior note, 144A, 10.75%, 8/01/27		United States		360,000			399,105
fConstellation Automotive Financing PLC, senior note, 144A, 4.875%, 7/15/27		United Kingdom		200,000			274,902
fFinance of America Funding LLC, senior note, 144A, 7.875%, 11/15/25		United States		500,000			485,695
							1,159,702
Diversified Telecommunication Services 0.6%
fConnect Finco Sarl / Connect US Finco LLC, senior secured note, 144A, 6.75%, 10/01/26		United Kingdom		370,000			384,337
Frontier Communications Holdings LLC, secured note, 5.875%, 11/01/29		United States		34,658			35,293
fsenior secured note, 144A, 5.875%, 10/15/27		United States		125,000			133,779
fsenior secured note, 144A, 5.00%, 5/01/28		United States		55,000			57,544
fTelesat Canada / Telesat LLC, senior secured note, 144A, 4.875%, 6/01/27		Canada		41,000			37,902
							648,855
Electric Utilities 0.7%
gEdison International, A, junior sub. note, 5.375% to 3/15/26, FRN thereafter, Perpetual		United States		65,000			66,381
fEskom Holdings SOC Ltd., senior bond, Reg S, 8.45%, 8/10/28		South Africa		200,000			228,200
Pacific Gas and Electric Co., secured bond,
4.50%, 7/01/40		United States		320,653			324,002
4.95%, 7/01/50		United States		60,000			63,612
							682,195
Entertainment 0.3%
fNetflix Inc., senior bond, 144A, 4.875%, 6/15/30		United States		299,000			358,271
Equity Real Estate Investment Trusts (REITs) 0.7%
EPR Properties, senior bond, 3.75%, 8/15/29		United States		250,000			251,332
fSBA Communications Corp., senior note, 144A, 3.125%, 2/01/29		United States		500,000			491,885
							743,217
Food & Staples Retailing 0.2%
f,gCasino Guichard Perrachon SA, E, junior sub. note, 3.992% to 1/31/24, FRN thereafter, Reg S, Perpetual		France		200,000	EUR		172,507
Health Care Providers & Services 1.6%
Encompass Health Corp., senior bond, 4.625%, 4/01/31		United States		334,000			358,573
fEnvision Healthcare Corp., senior note, 144A, 8.75%, 10/15/26		United States		500,000			423,125
fLifePoint Health Inc., senior note, 144A, 5.375%, 1/15/29		United States		187,000			183,946

71

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country		Principal Amount*		Value
Corporate Bonds and Notes (continued)
Health Care Providers & Services (continued)
fTeam Health Holdings Inc., senior note, 144A, 6.375%, 2/01/25		United States		500,000	$	478,125
fUS Acute Care Solutions LLC, senior secured note, 144A, 6.375%, 3/01/26		United States		229,000		238,446
						1,682,215
Household Durables 0.6%
fK. Hovnanian Enterprises Inc., senior secured note, 144A, 7.75%, 2/15/26		United States		626,000		666,825
Insurance 0.5%
f,hSitka Holdings LLC, senior secured note, 144A, FRN, 5.25%, (3-Month USD LIBOR + 4.50%), 7/06/26		United States		500,000		504,603
Internet & Direct Marketing Retail 0.5%
fArches Buyer Inc., senior note, 144A, 6.125%, 12/01/28		United States		502,000		518,757
IT Services 0.3%
fAustin Bidco Inc., senior note, 144A, 7.125%, 12/15/28		United States		286,000		290,290
Leisure Products 0.4%
fMajordrive Holdings IV LLC, senior note, 144A, 6.375%, 6/01/29		United States		400,000		389,436
Marine 0.1%
fStena International SA, senior secured bond, 144A, 5.75%, 3/01/24		Sweden		100,000		104,073
Media 2.0%
fCCO Holdings LLC / CCO Holdings Capital Corp., senior bond, 144A, 4.25%, 2/01/31		United States		500,000		513,767
fClear Channel Outdoor Holdings Inc., senior note, 144A, 7.75%, 4/15/28		United States		364,000		379,925
fDiamond Sports Group LLC / Diamond Sports Finance Co., 144A,
senior note, 6.625%, 8/15/27		United States		68,000		29,325
senior secured note, 5.375%, 8/15/26		United States		595,000		396,002
Liberty Interactive LLC, senior bond, 8.25%, 2/01/30		United States		360,000		405,506
fUrban One Inc., senior secured note, 144A, 7.375%, 2/01/28		United States		306,000		330,355
						2,054,880
Metals & Mining 0.6%
fCSN Inova Ventures, senior note, 144A, 6.75%, 1/28/28		Brazil		200,000		220,330
fTaseko Mines Ltd., senior secured note, 144A, 7.00%, 2/15/26		Canada		387,000		398,536
						618,866
Mortgage Real Estate Investment Trusts (REITs) 1.0%
fBrookfield Property REIT Inc. / BPR Cumulus LLC / BPR Nimbus LLC / GGSI Sellco LLC, senior secured note, 144A, 5.75%, 5/15/26		United States		500,000		517,500
f New Residential Investment Corp., senior note, 144A, 6.25%, 10/15/25		United States		520,000		521,973
						1,039,473
Multiline Retail 0.2%
Kohl’s Corp., senior bond, 5.55%, 7/17/45		United States		123,000		152,926
Oil, Gas & Consumable Fuels 5.3%
fContinental Resources Inc., senior bond, 144A, 5.75%, 1/15/31		United States		500,000		610,000
fDT Midstream Inc., 144A,
senior bond, 4.375%, 6/15/31		United States		336,000		347,340
senior note, 4.125%, 6/15/29		United States		151,000		154,964
gEnergy Transfer LP, H, junior sub. note, 6.50%, Perpetual		United States		149,000		153,139
fHurricane Finance PLC, senior note, 144A, 8.00%, 10/15/25		United Kingdom		134,000		199,411
fLaredo Petroleum Inc., senior note, 144A, 7.75%, 7/31/29		United States		500,000		484,910

72

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country		Principal Amount*			Value
Corporate Bonds and Notes (continued)
Oil, Gas & Consumable Fuels (continued)
fMC Brazil Downstream Trading Sarl, senior secured note, 144A, 7.25%, 6/30/31		Brazil		271,000		$	282,466
fMoss Creek Resources Holdings Inc., senior note, 144A,
7.50%, 1/15/26		United States		422,000			361,072
10.50%, 5/15/27		United States		515,000			468,658
fNorthern Oil And Gas Inc., senior note, 144A, 8.125%, 3/01/28		United States		400,000			416,022
Occidental Petroleum Corp., senior note, 5.50%, 12/01/25		United States		500,000			558,145
Petroleos Mexicanos,
senior bond, 5.95%, 1/28/31		Mexico		87,000			85,425
senior bond, 6.375%, 1/23/45		Mexico		152,000			130,402
senior bond, 6.75%, 9/21/47		Mexico		165,000			145,225
senior bond, 6.35%, 2/12/48		Mexico		283,000			240,491
senior bond, 6.95%, 1/28/60		Mexico		101,000			89,265
senior note, 3.50%, 1/30/23		Mexico		135,000			137,396
fsenior note, 144A, 6.875%, 10/16/25		Mexico		47,000			51,432
senior note, 4.50%, 1/23/26		Mexico		53,000			53,649
fTullow Oil PLC, senior secured note, 144A, 10.25%, 5/15/26		Ghana		200,000			207,250
fVine Energy Holdings LLC, senior note, 144A, 6.75%, 4/15/29		United States		322,000			348,162
							5,524,824
Pharmaceuticals 0.2%
fPar Pharmaceutical Inc., senior secured note, 144A, 7.50%, 4/01/27		United States		209,000			211,874
Real Estate Management & Development 0.7%
fHunt Cos. Inc., senior secured note, 144A, 5.25%, 4/15/29		United States		410,000			402,390
fRealogy Group LLC / Realogy Co.-Issuer Corp., senior note, 144A, 5.75%, 1/15/29		United States		312,000			326,914
							729,304
Specialty Retail 2.6%
fCarvana Co., senior note, 144A,
5.50%, 4/15/27		United States		40,000			41,335
5.875%, 10/01/28		United States		40,000			41,800
4.875%, 9/01/29		United States		188,000			186,347
fDouglas GMBH, senior secured note, 144A, 6.00%, 4/08/26		Germany		531,000	EUR		635,025
fGuitar Center Inc., senior secured note, 144A, 8.50%, 1/15/26		United States		222,000			236,707
f,iKirk Beauty Sun GMBH, senior note, 144A, PIK, 8.25%, 10/01/26		Germany		141,000	EUR		165,246
Macy’s Retail Holdings LLC, senior bond, 5.125%, 1/15/42		United States		500,000			476,250
fThe Michaels Cos. Inc., senior note, 144A, 7.875%, 5/01/29		United States		273,000			281,654
fStaples Inc., senior note, 144A, 10.75%, 4/15/27		United States		400,000			390,500
fVictoria’s Secret & Co., senior note, 144A, 4.625%, 7/15/29		United States		271,000			271,847
							2,726,711
Thrifts & Mortgage Finance 0.2%
fHome Point Capital Inc., senior note, 144A, 5.00%, 2/01/26		United States		273,000			236,486
Total Corporate Bonds and Notes (Cost $26,549,790)							27,116,474
Corporate Bonds and Notes in Reorganization (Cost $66,825) 0.1%
Diversified Telecommunication Services 0.1%
f,jIntelsat Jackson Holdings SA, senior secured note, first lien, 144A, 9.50%, 9/30/22		Luxembourg		64,000			76,240

73

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country		Principal Amount*			Value
hSenior Floating Rate Interests 1.9%
Communications Equipment 0.2%
Riverbed Technology Inc., Term Loan B, 7.50%, (3-Month USD LIBOR + 6.50%), 12/31/26		United States		237,755		$	183,467
Diversified Financial Services 0.2%
MPH Acquisition Holdings LLC, Term Loan B, 4.75%, (3-Month USD LIBOR + 4.25%), 8/17/28		United States		244,457			242,899
Diversified Telecommunication Services 1.4%
Frontier Communications Corp., Term Loan DIP, 4.50%, (1-Month USD LIBOR + 3.75%), 10/08/21		United States		83,912			84,017
Intelsat Jackson Holdings SA,
Term Loan B3, 8.00%, (6-Month USD LIBOR + 3.75%), 11/27/23		United States		281,120			286,480
kTerm Loan B4 8.75%, (1-Month USD LIBOR + 4.50%), 1/02/24		United States		16,979			17,340
Term Loan B5, 8.625%, (6-Month USD LIBOR + 6.63%), 1/02/24		United States		329,824			336,678
kTerm Loan DIP 6.50%, (1-Month USD LIBOR + 5.50%), 7/13/22		United States		682,430			688,613
							1,413,128
Equity Real Estate Investment Trusts (REITs) 0.1%
The GEO Group Inc., Term Loan B, 2.75%, (3-Month USD LIBOR + 2.00%), 3/22/24		United States		100,234			93,881
McCarthy & Stone PLC, Term Loan B, 7.00%, 12/16/25		United Kingdom		50,969	GBP		69,812
							163,693
Total Senior Floating Rate Interests (Cost $1,913,523)							2,003,187
Credit-Linked Notes 0.9%
fCitigroup Global Markets Holdings Inc., (Egypt), E, senior note, 144A, zero cpn., 9/30/21		Egypt		2,639,307	EGP		166,515
fCitigroup Global Markets Holdings Inc., (Egypt), E, senior note, 144A, zero cpn., 12/16/21		Egypt		2,808,164	EGP		172,668
fHSBC Bank PLC, (Egypt), senior note, 144A, zero cpn., 12/23/21		Egypt		1,450,000	EGP		88,912
fHSBC Bank PLC, (Egypt), senior note, 144A, zero cpn., 2/10/22		Egypt		8,925,000	EGP		538,456
Total Credit-Linked Notes (Cost $965,759)							966,551
Foreign Government and Agency Securities 6.6%
fBanque Centrale de Tunisie International Bond, senior bond, Reg S, 5.75%, 1/30/25		Tunisia		200,000			176,854
fGovernment of Angola, senior bond, Reg S,
8.00%, 11/26/29		Angola		201,000			212,318
9.375%, 5/08/48		Angola		200,000			213,292
fGovernment of Bahamas, senior bond, 144A, 8.95%, 10/15/32		Bahamas		200,000			218,500
fGovernment of Bahrain, senior bond, Reg S, 7.00%, 1/26/26		Bahrain		200,000			224,234
fGovernment of Egypt, senior bond, Reg S,
7.50%, 1/31/27		Egypt		400,000			446,733
7.60%, 3/01/29		Egypt		200,000			220,030
8.70%, 3/01/49		Egypt		200,000			211,993
fGovernment of Germany, senior bond, Reg S, 0.50%, 2/15/25		Germany		94,000	EUR		115,891
Government of Italy, senior note, 2.375%, 10/17/24		Italy		373,000			388,393
fGovernment of Jordan, senior note, 144A, 4.95%, 7/07/25		Jordan		200,000			210,475
fGovernment of Nigeria, senior note, Reg S, 7.625%, 11/21/25		Nigeria		400,000			448,450
fGovernment of Oman, senior bond,
144A, 6.25%, 1/25/31		Oman		216,000			236,107
Reg S, 6.75%, 1/17/48		Oman		200,000			204,985

74

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country		Principal Amount*			Value
Foreign Government and Agency Securities (continued)
fGovernment of Paraguay, senior bond, Reg S, 4.625%, 1/25/23		Paraguay		421,000		$	441,212
Government of Russia,
senior bond, 6233, 6.10%, 7/18/35		Russia		32,106,000	RUB		400,388
senior note, 6227, 7.40%, 7/17/24		Russia		13,568,000	RUB		188,565
senior note, 6229, 7.15%, 11/12/25		Russia		28,550,000	RUB		395,249
fGovernment of Saudi Arabia, senior bond, 144A, 2.75%, 2/03/32		Saudi Arabia		221,000			230,003
Government of South Africa, senior bond,
2030, 8.00%, 1/31/30		South Africa		2,600,259	ZAR		171,110
2032, 8.25%, 3/31/32		South Africa		2,581,000	ZAR		164,138
2035, 8.875%, 2/28/35		South Africa		4,241,344	ZAR		268,648
Government of Turkey, senior note, 6.375%, 10/14/25		Turkey		200,000			211,823
fGovernment of Ukraine, Reg S,
senior bond, 7.375%, 9/25/32		Ukraine		200,000			214,306
senior bond, 1.258%, 5/31/40		Ukraine		171,000			195,453
senior note, 6.876%, 5/21/29		Ukraine		400,000			423,596
Total Foreign Government and Agency Securities (Cost $6,617,029)							6,832,746
U.S. Government and Agency Securities 0.5%
U.S. Treasury Bond,
1.875%, 2/15/41		United States		1,000			1,008
1.625%, 11/15/50		United States		77,000			71,667
1.875%, 2/15/51		United States		104,000			102,692
U.S. Treasury Note, 1.625%, 5/15/31		United States		309,000			318,656
Total U.S. Government and Agency Securities (Cost $479,410)							494,023
Asset-Backed Securities and Commercial Mortgage-Backed Securities 36.5%
Diversified Financial Services 20.5%
f,mAMSR Trust, 2021-SFR1, G, 144A, FRN, 4.612%, 6/17/38		United States		500,000			516,555
f,lBlue Ridge CLO Ltd. II, 2014-2A, C, 144A, FRN, 3.934%, (3- Month USD LIBOR + 3.80%), 7/18/26		United States		700,000			699,342
CitiMortgage Alternative Loan Trust, 2007-A1, 2A1, 5.50%, 1/25/22		United States		17,923			16,860
f,lCutwater 2014-II Ltd., 2017-2A, CR, 144A, FRN, 3.876%, (3- Month USD LIBOR + 3.75%), 1/15/27		United States		1,000,000			1,001,640
fFRTKL, 2021-SFR1, G, 144A, 4.105%, 9/17/38		United States		990,000			991,416
f,lGPMT Ltd., 2019-FL2, D, 144A, FRN, 3.038%, (1-Month USD LIBOR + 2.95%), 2/22/36		United States		800,000			797,899
f,lGSMSC Pass-Through Trust, 2009-4R, 2A3, 144A, FRN, 0.539%, (1-Month USD LIBOR + 0.45%), 12/26/36		United States		714,259			471,305
f,lHull Street CLO Ltd., 2014-1A, D, 144A, FRN, 3.734%, (3-Month USD LIBOR + 3.60%), 10/18/26		United States		1,130,000			1,051,710
f,lKREF Ltd., 2021-FL2, C, 144A, FRN, 2.093%, (1-Month USD LIBOR + 2.00%), 2/15/39		United States		500,000			501,750
lLong Beach Mortgage Loan Trust, 2005-1, M6, FRN, 1.659%, (1- Month USD LIBOR + 1.58%), 2/25/35		United States		1,069,289			1,113,288
f,lMountain View CLO 2014-1 Ltd., 2018-1A, DRR, 144A, FRN, 3.776%, (3-Month USD LIBOR + 3.65%), 10/15/26		United States		1,290,000			1,293,909

75

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT 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)
f,lOCP CLO Ltd., 144A, FRN,
2017-13A, C, 3.836%, (3-Month USD LIBOR + 3.71%), 7/15/30		United States		1,750,000	$	1,751,299
2021-8RA, C, 3.884%, (3-Month USD LIBOR + 3.75%), 1/17/32		United States		1,000,000		1,006,250
f,lOHA Credit Funding 4 Ltd., 144A, FRN,
2019-4A, C, 2.788%, (3-Month USD LIBOR + 2.65%), 10/22/32		United States		1,000,000		1,002,238
2019-4A, D, 3.888%, (3-Month USD LIBOR + 3.75%), 10/22/32		United States		1,500,000		1,504,778
f,lSeven Sticks CLO Ltd., 2018-1A, DR, 144A, FRN, 6.326%, (3- Month USD LIBOR + 6.20%), 7/15/28		United States		980,000		979,943
fS-Jets Ltd., 2017-1, A, 144A, 3.967%, 8/15/42		Bermuda		731,373		726,036
f,lStaniford Street CLO Ltd., 2014-1A, D, 144A, FRN, 3.619%, (3- Month USD LIBOR + 3.50%), 6/15/25		United States		1,160,000		1,163,099
mSTARM Mortgage Loan Trust, 2007-2, 4A1, FRN, 2.473%, 4/25/37		United States		63,713		45,849
lSuntrust Alternative Loan Trust, 2005-1F, 1A1, FRN, 0.734%, (1- Month USD LIBOR + 0.65%), 12/25/35		United States		133,582		113,570
lTerwin Mortgage Trust, 2003-6HE, M2, FRN, 2.709%, (1-Month USD LIBOR + 2.63%), 11/25/33		United States		126,753		129,725
fThunderbolt II Aircraft Lease Ltd., 2018-A, A, 144A, 4.147%, 9/15/38		United States		2,644,749		2,641,461
f,lVMC Finance LLC, 2019-FL3, C, 144A, FRN, 2.143%, (1-Month USD LIBOR + 2.05%), 9/15/36		United States		1,145,249		1,138,231
Wells Fargo Alternative Loan Trust, 2007-PA3, 2A2, 6.00%, 7/25/37		United States		114,272		114,662
f,lZAIS CLO 1 Ltd., 2018-1A, CR, 144A, FRN, 3.536%, (3-Month USD LIBOR + 3.41%), 4/15/28		United States		390,000		392,003
						21,164,818
Mortgage Real Estate Investment Trusts (REITs) 16.0%
Alternative Loan Trust, 2005-J10, 2A4, 6.00%, 10/25/35		United States		413,580		287,239
mAmerican Home Mortgage Assets Trust, 2005-1, 1A1, FRN, 2.717%, 11/25/35		United States		115,726		100,429
mBanc of America Mortgage Trust, FRN,
2005-K, 2A1, 2.679%, 12/25/35		United States		158,880		154,919
2005-L, 1A1, 3.068%, 1/25/36		United States		91,733		90,296
2005-L, 3A1, 3.035%, 1/25/36		United States		155,166		151,637
f,mBCAP LLC Trust, 2010-RR1, 1A4, 144A, FRN, 3.202%, 3/26/37		United States		212,369		185,391
mBear Stearns ARM Trust, FRN,
2002-11, 1A2, 2.831%, 2/25/33		United States		2,862		2,678
2006-2, 4A1, 3.178%, 7/25/36		United States		35,200		33,062
f,lBXMT Ltd., 2021-FL4, C, 144A, FRN, 1.846%, (1-Month USD LIBOR + 1.75%), 5/15/38		United States		500,000		501,250
Citigroup Commercial Mortgage Trust,
2015-GC33, D, 3.172%, 9/10/58		United States		2,000,000		1,829,281
f,m2016-P4, D, 144A, FRN, 4.101%, 7/10/49		United States		2,000,000		1,784,602
mCitigroup Mortgage Loan Trust, 2007-AR5, 2A1A, FRN, 3.379%, 4/25/37		United States		90,324		89,685
Countrywide Alternative Loan Trust,
2005-73CB, 1A2, 6.25%, 1/25/36		United States		137,850		141,271
l2005-IM1, A1, FRN, 0.684%, (1-Month USD LIBOR + 0.60%), 1/25/36		United States		126,828		122,735

76

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT 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)
Countrywide Alternative Loan Trust, (continued)
2006-4CB, 2A3, 5.50%, 4/25/36		United States		59,555	$	57,637
mCredit Suisse First Boston Mortgage Securities Corp., 2004-AR3, CB2, FRN, 2.382%, 4/25/34		United States		115,780		105,633
f,mCSMC, 2021-980M, E, 144A, FRN, 3.653%, 7/15/26		United States		2,000,000		1,924,629
CSMC Mortgage-Backed Trust, 2006-4, 9A1, 6.50%, 5/25/36		United States		754,186		392,092
GSR Mortgage Loan Trust, 2004-6F, 2A4, 5.50%, 5/25/34		United States		96,741		101,021
Impac CMB Trust,
2004-4, 2A2, 5.178%, 9/25/34		United States		139,931		147,730
l2004-8, 3B, FRN, 2.709%, (1-Month USD LIBOR + 2.63%), 8/25/34		United States		98,688		101,222
l2005-2, 2B, FRN, 2.559%, (1-Month USD LIBOR + 2.48%), 4/25/35		United States		84,701		83,421
l2005-4, 2B1, FRN, 2.559%, (1-Month USD LIBOR + 1.65%), 5/25/35		United States		127,211		129,499
l2005-4, 2M1, FRN, 0.834%, (1-Month USD LIBOR + 0.50%), 5/25/35		United States		148,413		144,565
l2005-8, 2B, FRN, 2.334%, (1-Month USD LIBOR + 2.25%), 2/25/36		United States		81,591		82,253
lIndyMac INDX Mortgage Loan Trust, FRN,
2006-AR12, A1, 0.274%, (1-Month USD LIBOR + 0.19%), 9/25/46		United States		172,034		161,747
2006-AR29, A2, 0.244%, (1-Month USD LIBOR + 0.08%), 11/25/36		United States		303,680		304,221
mJPMorgan Mortgage Trust, FRN,
2006-A5, 6A1, 3.331%, 8/25/36		United States		208,832		187,103
2006-A7, 2A3, 3.15%, 1/25/37		United States		88,421		84,144
2007-A2, 2A1, 3.026%, 4/25/37		United States		128,936		115,762
Lehman Mortgage Trust, 2005-3, 2A3, 5.50%, 1/25/36		United States		57,785		60,473
MASTR Adjustable Rate Mortgages Trust, FRN,
m2004-10, B1, 2.705%, 10/25/34		United States		519,146		485,864
l2006-OA1, 1A1, 0.294%, (1-Month USD LIBOR + 0.21%), 4/25/46		United States		223,623		207,413
mMASTR Alternative Loan Trust, 2007-HF1, 3A1, FRN, 2.307%, 10/25/47		United States		490,068		362,371
mMASTR Seasoned Securitization Trust, 2004-1, 4A1, FRN, 2.47%, 10/25/32		United States		68,410		71,382
mRFMSI Trust, 2007-SA2, 3A, FRN, 4.965%, 4/25/37		United States		839,161		283,899
lSecuritized Asset Backed Receivables LLC Trust, 2004-OP2, A2, FRN, 0.784%, (1-Month USD LIBOR + 0.70%), 8/25/34		United States		199,024		192,798
f,lStacr Trust, 2018-HRP1, B2, 144A, FRN, 11.834%, (1-Month USD LIBOR + 11.75%), 5/25/43		United States		2,895,394		3,341,457
mStructured ARM Loan Trust, 2004-4, B1, FRN, 2.698%, 4/25/34		United States		410,641		360,546
mWachovia Mortgage Loan Trust LLC, 2005-B, 1A1, FRN, 2.341%, 10/20/35		United States		197,924		191,525
lWashington Mutual Mortgage Pass-Through Certificates, 2006-4, 3A2B, FRN, 0.244%, (1-Month USD LIBOR + 0.08%), 5/25/36		United States		227,343		181,993
mWashington Mutual MSC Mortgage Pass-Through Certificates Series Trust, 2003-AR3, B1, FRN, 3.045%, 6/25/33		United States		227,648		224,538

77

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT 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)
fZH Trust, 2021-1, B, 144A, 3.262%, 2/18/27		United States		1,000,000	$	1,003,027
						16,564,440
Total Asset-Backed Securities and Commercial Mortgage- Backed Securities (Cost $37,308,856)						37,729,258
Municipal Bonds in Reorganization 1.6%
Puerto Rico 1.6%
jCommonwealth of Puerto Rico,
8.00%, 7/01/35		United States		1,570,000		1,336,462
5.50%, 7/01/39		United States		155,000		139,500
5.00%, 7/01/41		United States		225,000		193,219
Total Municipal Bonds in Reorganization (Cost $1,058,050)						1,669,181
	Number of Contracts		Notional Amount#
Options Purchased 0.0%†
Calls - Exchange-Traded 0.0%†
Casino Guichard Perrachon SA, December Strike Price 30.00 EUR, Expires 12/17/21		12		1,200		297
Fox Corp., October Strike Price $39.00, Expires 10/15/21		11		1,100		825
SPDR Gold Shares ETF, June Strike Price $200.00, Expires 6/17/22		43		4,300		10,320
						11,442
Puts - Exchange-Traded 0.0%†
Air France-KLM, December Strike Price 4.20 EUR, Expires 12/17/21		64		6,400		4,081
American Airlines Group Inc., November Strike Price $18.00, Expires 11/19/21		42		4,200		4,200
Hewlett Packard Enterprise Co., November Strike Price $14.00, Expires 11/19/21		31		3,100		1,240
HP Inc., November Strike Price $30.00, Expires 11/19/21		14		1,400		2,296
iShares Russell 2000 ETF, September Strike Price $210.00, Expires 9/17/21		64		6,400		4,224
						16,041
Puts - Over-the-Counter 0.0%†
Air France-KLM, Counterparty BOFA, September Strike Price 4.00 EUR, Expires 9/17/21		22		2,200		416
Total Options Purchased (Cost $72,585)						27,899
Total Investments before Short Term Investments (Cost $78,708,267)						81,129,293

78

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country		Shares		Value
Short Term Investments 23.6%
Money Market Funds (Cost $20,294,436) 19.6%
nFidelity Investments Money Market Government Portfolio, Institutional, 0.01%		United States		20,294,436	$	20,294,436
			Principal Amount*
Repurchase Agreements (Cost $4,102,161) 4.0%
oJoint Repurchase Agreement, 0.033%, 9/01/21 (Maturity Value $4,102,164)		United States		4,102,161		4,102,161
BNP Paribas Securities Corp. (Maturity Value $3,021,531) Deutsche Bank Securities Inc. (Maturity Value $476,343) HSBC Securities (USA) Inc. (Maturity Value $604,290) Collateralized by U.S. Government Agency Securities, 1.50% - 4.50%, 4/20/44 -3/20/51; U.S. Treasury Bond, Index Linked, 2.38%, 1/15/25; and U.S. Treasury Note, 2.00%, 8/15/25 (Valued at $4,188,427)
Total Investments (Cost $103,104,864) 102.0%						105,525,890
Options Written (0.0)%†						(6,755)
Securities Sold Short (4.7)%						(4,866,517)
Other Assets, less Liabilities 2.7%						2,840,205
Net Assets 100.0%					$	103,492,823
	Number of Contracts		Notional Amount#
Options Written (0.0)%†
Calls - Exchange-Traded (0.0)%†
Casino Guichard Perrachon SA, December Strike Price 34.00 EUR, Expires 12/17/21		12		1,200		(85)
Calls - Over-the-Counter (0.0)%†
Clearway Energy Inc., C, Counterparty BOFA, November Strike Price $30.00, Expires 11/19/21		29		2,900		(6,670)
Total Options Written (Premiums Received $5,901)						(6,755)
	Country		Shares
Securities Sold Short (4.7)%
Common Stocks (0.4)%
Hotels, Restaurants & Leisure (0.2)%
Carnival Corp.		United States		8,470		(204,466)

79

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country		Shares			Value
Securities Sold Short (continued)
Common Stocks (continued)
Software (0.2)%
VMware Inc., A		United States		1,321		$	(196,657)
Total Common Stocks (Proceeds $315,918)							(401,123)
			Principal Amount*
Corporate Bonds and Notes (3.9)%
Aerospace & Defense (0.1)%
fSpirit Aerosystems Inc., secured note, 144A, 7.50%, 4/15/25		United States		87,000			(92,220)
Airlines (0.4)%
fAmerican Airlines Inc., senior secured note, 144A, 11.75%, 7/15/25		United States		310,000			(385,252)
Auto Components (0.2)%
American Axle & Manufacturing Inc., senior note,
6.50%, 4/01/27		United States		45,000			(47,306)
6.875%, 7/01/28		United States		138,000			(149,277)
							(196,583)
Banks (0.1)%
f,gChina Zheshang Bank Co. Ltd., junior sub. note, Reg S, 5.45% to 3/29/22, FRN thereafter, Perpetual		China		72,000			(73,313)
Communications Equipment (0.1)%
fAudacy Capital Corp., secured note, 144A, 6.50%, 5/01/27		United States		145,000			(145,908)
Construction & Engineering (0.5)%
Fluor Corp., senior bond, 3.50%, 12/15/24		United States		191,000			(200,977)
fSydney Airport Finance Co. Pty Ltd., senior secured bond, 144A,
3.375%, 4/30/25		Australia		42,000			(44,862)
3.625%, 4/28/26		Australia		22,000			(23,818)
fTutor Perini Corp., senior note, 144A, 6.875%, 5/01/25		United States		199,000			(205,219)
							(474,876)
Diversified Consumer Services (0.2)%
fMPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28		United States		194,000			(185,528)
Diversified Financial Services (0.6)%
AerCap Ireland Capital DAC / AerCap Global Aviation Trust,
senior bond, 3.65%, 7/21/27		Ireland		22,000			(23,453)
senior bond, 3.875%, 1/23/28		Ireland		138,000			(148,084)
senior note, 4.875%, 1/16/24		Ireland		174,000			(188,943)
senior note, 6.50%, 7/15/25		Ireland		171,000			(199,614)
senior note, 4.625%, 10/15/27		Ireland		91,000			(101,675)
							(661,769)
Diversified Telecommunication Services (0.2)%
fDKT Finance ApS, senior secured note, Reg S, 7.00%, 6/17/23		Denmark		156,000	EUR		(187,941)
fTelesat Canada / Telesat LLC, senior note, 144A, 6.50%, 10/15/27		Canada		41,000			(34,695)
							(222,636)

80

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country		Principal Amount*			Value
Securities Sold Short (continued)
Corporate Bonds and Notes (continued)
Equity Real Estate Investment Trusts (REITs) (0.3)%
The GEO Group Inc.,
senior bond, 5.875%, 10/15/24		United States		44,000		$	(39,875)
senior note, 6.00%, 4/15/26		United States		11,000			(9,309)
fIron Mountain Inc., senior bond, 144A, 5.25%, 3/15/28		United States		122,000			(128,588)
Simon Property Group LP, senior bond, 2.65%, 7/15/30		United States		115,000			(120,038)
							(297,810)
Food & Staples Retailing (0.7)%
Koninklijke Ahold Delhaize NV, senior bond, 5.70%, 10/01/40		Netherlands		196,000			(273,698)
The Kroger Co., senior bond,
5.40%, 1/15/49		United States		78,000			(108,582)
3.95%, 1/15/50		United States		4,000			(4,666)
fSEG Holding LLC / SEG Finance Corp., senior secured note, 144A, 5.625%, 10/15/28		United States		149,000			(156,639)
fSigma Holdco BV, senior note, Reg S, 5.75%, 5/15/26		Netherlands		100,000	EUR		(114,161)
fSigma Holdco BV, senior note, 144A, 7.875%, 5/15/26		Netherlands		55,000			(55,206)
							(712,952)
Food Products (0.2)%
B&G Foods Inc., senior note, 5.25%, 9/15/27		United States		196,000			(203,791)
Health Care Providers & Services (0.1)%
fAir Methods Corp., senior note, 144A, 8.00%, 5/15/25		United States		128,000			(123,689)
Oil, Gas & Consumable Fuels (0.1)%
fSM Energy Co., secured note, 144A, 10.00%, 1/15/25		United States		54,000			(60,277)
Professional Services (0.1)%
fTeleperformance, senior note, Reg S, 1.875%, 7/02/25		France		100,000	EUR		(125,906)
Total Corporate Bonds and Notes (Proceeds $3,715,224)							(3,962,510)
Foreign Government and Agency Securities (Proceeds $36,484) (0.0)%†
fGovernment of Italy, senior bond, 144A, Reg S, 5.00%, 3/01/25		Italy		30,000	EUR		(41,904)
U.S. Government and Agency Securities (0.4)%
U.S. Treasury Bond,
1.375%, 11/15/40		United States		2,000			(1,852)
1.375%, 8/15/50		United States		266,700			(233,363)
U.S. Treasury Note,
0.875%, 11/15/30		United States		205,000			(198,137)
1.125%, 2/15/31		United States		28,000			(27,628)
Total U.S. Government and Agency Securities (Proceeds $483,202)							(460,980)
Total Securities Sold Short (Proceeds $4,550,828)						$	(4,866,517)

81

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

^†  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 units specified in the contract, and can 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 is held in connection with written option contracts open at period end.

^c  Fair valued using significant unobservable inputs. See Note 9 regarding fair value measurements.

^d  See Note 5 regarding restricted securities.

^e  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 August 31, 2021, the aggregate value of these securities and/or cash pledged amounted to $5,355,464, representing 5.2% of net assets.

^f  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 August 31, 2021, the net value of these securities was $55,207,925, representing 53.3% of net assets.

^g  Perpetual security with no stated maturity date.

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

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

^j  Defaulted security or security for which income has been deemed uncollectible.

^k  See Note 6 regarding unfunded loan commitments.

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

^m 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.

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

^o  Investment is through participation in a joint account with other funds managed by the investment manager or an affiliate of the investment manager. At August 31, 2021, all repurchase agreements had been entered into on that date.

82

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

At August 31, 2021, the Fund had the following futures contracts outstanding. See Note 3.

Futures Contracts

Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/ Unrealized Appreciation (Depreciation)
Equity Contracts
CBOE Volatility Index		Long		10	$	186,212		9/15/21	$	(40,802)
E-Mini Russell 2000		Short		10		1,135,600		9/17/21		(59,566)
S&P 500 E-Mini Index		Short		3		678,075		9/17/21		(43,736)
										(144,104)
Interest Rate Contracts
U.S. Treasury 10 Yr. Note		Short		1		133,453		12/21/21		(518)
U.S. Treasury Long Bond		Short		11		1,792,656		12/21/21		(7,756)
										(8,274)
Total Futures Contracts									$	(152,378)

    *As of period end.

At August 31, 2021, the Fund had the following forward exchange contracts outstanding. See Note 3.

Forward Exchange Contracts

Currency	Counterpartya		Type		Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts
Chinese Yuan		JPHQ		Buy		1,010,184	$	157,071		9/15/21	$	–	$	(785)
Chinese Yuan		JPHQ		Sell		1,010,184		154,283		9/15/21		–		(2,003)
Colombian Peso		JPHQ		Buy		1,150,840,566		308,868		9/15/21		–		(3,779)
Czech Koruna		JPHQ		Buy		5,601,383		268,058		9/15/21		–		(7,922)
Euro		JPHQ		Buy		303,228		357,509		9/15/21		999		(357)
Euro		JPHQ		Sell		303,228		359,498		9/15/21		1,631		(284)
Indonesian Rupiah		JPHQ		Sell		9,389,872,441		651,441		9/15/21		–		(6,047)
Mexican Peso		JPHQ		Buy		8,315,084		416,025		9/15/21		–		(2,885)
Polish Zloty		JPHQ		Buy		980,076		259,771		9/15/21		–		(3,877)
Polish Zloty		JPHQ		Sell		980,076		267,045		9/15/21		11,152		–
Russian Ruble		JPHQ		Buy		31,583,558		425,224		9/15/21		4,933		–
Russian Ruble		JPHQ		Sell		74,662,449		1,012,250		9/15/21		471		(5,098)
South African Rand		JPHQ		Buy		4,613,111		314,448		9/15/21		2,552		(107)
South African Rand		JPHQ		Sell		8,637,308		616,275		9/15/21		22,945		–
Canadian Dollar		JPHQ		Buy		360,000		286,870		9/29/21		–		(1,542)
Canadian Dollar		JPHQ		Sell		360,000		292,807		9/29/21		7,480		–
British Pound		JPHQ		Sell		580,000		806,481		9/30/21		9,000		–
Euro		JPHQ		Buy		600,000		709,428		9/30/21		–		(527)
Euro		JPHQ		Sell		2,410,000		2,880,986		9/30/21		33,565		–
Hong Kong Dollar		JPHQ		Buy		129,000		16,622		9/30/21		–		(34)
Hong Kong Dollar		JPHQ		Sell		300,000		38,652		9/30/21		76		–
Total Forward Exchange Contracts											$	94,804	$	(35,247)
Net unrealized appreciation (depreciation)											$	59,557

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

83

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

At August 31, 2021, the Fund had the following credit default swap contracts outstanding. See Note 3.

Credit Default Swap Contracts

Description	Annual Payment Rate Received (Paid)		Payment Frequency		Maturity Date		Notional Amounta			Value		Unamortized Upfront Payments (Receipts)		Unrealized Appreciation (Depreciation)		Ratingb
Centrally Cleared Swap Contracts
Contracts to Buy Protectionc
Single Name
Government of Mexico		(1.00)%	Quarterly			6/20/23		186,000		$	(2,367)	$	(26)	$	(2,341)
Government of Mexico		(1.00)%	Quarterly			12/20/23		787,000			(11,360)		(5,984)		(5,376)
Government of Mexico		(1.00)%	Quarterly			12/20/23		15,000			(216)		(232)		16
Government of Mexico		(1.00)%	Quarterly			6/20/25		105,000			(1,501)		(1,323)		(178)
Government of South Africa		(1.00)%	Quarterly			12/20/24		792,000			9,853		23,305		(13,452)
Government of South Africa		(1.00)%	Quarterly			12/20/24		900,000			11,197		26,654		(15,457)
Government of Turkey		(1.00)%	Quarterly			6/20/24		215,000			12,827		21,581		(8,754)
Traded Index
CDX.NA.HY.34		(5.00)%	Quarterly			6/20/25		3,450,000			(319,728)		17,346		(337,074)
CDX.NA.HY.35		(5.00)%	Quarterly			12/22/25		3,930,000			(378,971)		(371,210)		(7,761)
Contracts to Sell Protectionc,d
Single Name
Government of South Africa		1.00%	Quarterly			12/20/24		646,000			(8,037)		(50,313)		42,276	BB-
Government of South Africa		1.00%	Quarterly			12/20/24		184,000			(2,289)		(5,367)		3,078	BB-
Government of Turkey		1.00%	Quarterly			12/20/22		136,000			(3,252)		(6,150)		2,898	B+
Total Centrally Cleared Swap Contracts										$	(693,844)	$	(351,719)	$	(342,125)
OTC Swap Contracts
Contracts to Buy Protectionc
Single Name				Counterparty
Air France-KLM		(5.00)%	Quarterly	JPHQ		12/20/21		9,000	EUR		(167)		80		(247)
Air France-KLM		(5.00)%	Quarterly	JPHQ		12/20/21		14,000	EUR		(258)		93		(351)
Air France-KLM		(5.00)%	Quarterly	JPHQ		12/20/21		19,000	EUR		(352)		169		(521)
Air France-KLM		(5.00)%	Quarterly	JPHQ		6/20/22		21,000	EUR		(585)		(179)		(406)
Air France-KLM		(5.00)%	Quarterly	JPHQ		6/20/22		7,000	EUR		(195)		(133)		(62)
Air France-KLM		(5.00)%	Quarterly	JPHQ		6/20/22		13,000	EUR		(362)		(117)		(245)
Air France-KLM		(5.00)%	Quarterly	JPHQ		6/20/22		13,000	EUR		(361)		(111)		(250)
American Airlines Group Inc.		(5.00)%	Quarterly	BZWS		12/20/21		13,000			(272)		393		(665)
American Airlines Group Inc.		(5.00)%	Quarterly	BZWS		12/20/21		23,000			(481)		566		(1,047)
American Airlines Group Inc.		(5.00)%	Quarterly	BZWS		12/20/21		23,000			(481)		575		(1,056)
American Airlines Group Inc.		(5.00)%	Quarterly	BZWS		12/20/21		24,000			(502)		1,043		(1,545)
American Airlines Group Inc.		(5.00)%	Quarterly	BZWS		12/20/21		43,000			(899)		1,117		(2,016)
American Airlines Group Inc.		(5.00)%	Quarterly	BZWS		6/20/24		42,000			1,378		2,455		(1,077)
American Airlines Group Inc.		(5.00)%	Quarterly	BZWS		6/20/26		200,000			17,306		10,141		7,165
American Airlines Group Inc.		(5.00)%	Quarterly	CITI		12/20/21		14,000			(293)		513		(806)
American Airlines Group Inc.		(5.00)%	Quarterly	CITI		12/20/21		43,000			(899)		993		(1,892)
American Airlines Group Inc.		(5.00)%	Quarterly	CITI		6/20/26		28,000			2,423		2,803		(380)
American Airlines Group Inc.		(5.00)%	Quarterly	CITI		6/20/26		34,000			2,942		3,153		(211)
American Airlines Group Inc.		(5.00)%	Quarterly	FBCO		12/20/21		9,000			(188)		209		(397)
American Airlines Group Inc.		(5.00)%	Quarterly	FBCO		12/20/21		14,000			(293)		375		(668)
American Airlines Group Inc.		(5.00)%	Quarterly	GSCO		12/20/21		9,000			(188)		210		(398)
American Airlines Group Inc.		(5.00)%	Quarterly	GSCO		12/20/21		24,000			(502)		1,166		(1,668)
American Airlines Group Inc.		(5.00)%	Quarterly	JPHQ		12/20/21		10,000			(209)		382		(591)
American Airlines Group Inc.		(5.00)%	Quarterly	JPHQ		12/20/25		75,000			5,921		13,156		(7,235)
American Axle &
Manufacturing Inc.		(5.00)%	Quarterly	BZWS		12/20/25		84,000			(6,815)		(3,423)		(3,392)

84

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT 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		Unamortized Upfront Payments (Receipts)		Unrealized Appreciation (Depreciation)		Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
American Axle & Manufacturing Inc.		(5.00)%	Quarterly	BZWS		6/20/26		77,000		$	(5,508)	$	(3,464)	$	(2,044)
American Axle & Manufacturing Inc.		(5.00)%	Quarterly	BZWS		6/20/26		21,000			(1,502)		(876)		(626)
American Axle & Manufacturing Inc.		(5.00)%	Quarterly	GSCO		12/20/25		13,000			(1,055)		(706)		(349)
American Axle & Manufacturing Inc.		(5.00)%	Quarterly	JPHQ		12/20/25		13,000			(1,055)		(706)		(349)
American Axle & Manufacturing Inc.		(5.00)%	Quarterly	MSCO		12/20/25		22,000			(1,785)		(1,195)		(590)
American Axle & Manufacturing Inc.		(5.00)%	Quarterly	MSCO		6/20/26		69,000			(4,935)		(2,644)		(2,291)
British Telecommunications PLC		(1.00)%	Quarterly	MLCO		6/20/26		43,000	EUR		(708)		(789)		81
British Telecommunications PLC		(1.00)%	Quarterly	MLCO		6/20/26		43,000	EUR		(709)		(777)		68
Dell Inc.		(1.00)%	Quarterly	BNPP		12/20/25		12,000			(134)		713		(847)
Dell Inc.		(1.00)%	Quarterly	BNPP		12/20/25		133,000			(1,485)		6,035		(7,520)
Dell Inc.		(1.00)%	Quarterly	CITI		12/20/25		15,000			(167)		737		(904)
Dell Inc.		(1.00)%	Quarterly	CITI		12/20/25		19,000			(212)		1,073		(1,285)
Dell Inc.		(1.00)%	Quarterly	JPHQ		12/20/25		62,000			(692)		2,464		(3,156)
Diamond Sports Group LLC		(5.00)%	Quarterly	BZWS		12/20/25		11,000			6,073		4,821		1,252
Diamond Sports Group LLC		(5.00)%	Quarterly	BZWS		12/20/25		14,000			7,729		6,142		1,587
Diamond Sports Group LLC		(5.00)%	Quarterly	GSCO		6/20/25		11,000			5,815		4,999		816
Diamond Sports Group LLC		(5.00)%	Quarterly	GSCO		12/20/25		1,000			552		386		166
Diamond Sports Group LLC		(5.00)%	Quarterly	GSCO		12/20/25		6,000			3,312		2,315		997
Diamond Sports Group LLC		(5.00)%	Quarterly	GSCO		12/20/25		6,000			3,313		2,317		996
Diamond Sports Group LLC		(5.00)%	Quarterly	GSCO		12/20/25		10,000			5,521		3,207		2,314
Diamond Sports Group LLC		(5.00)%	Quarterly	GSCO		12/20/25		12,000			6,625		4,432		2,193
Dow Inc.		(1.00)%	Quarterly	GSCO		6/20/25		66,000			(1,538)		(366)		(1,172)
Dow Inc.		(1.00)%	Quarterly	GSCO		6/20/25		66,000			(1,538)		(244)		(1,294)
Dow Inc.		(1.00)%	Quarterly	GSCO		6/20/25		7,000			(163)		(36)		(127)
GE Capital Funding LLC		(1.00)%	Quarterly	JPHQ		6/20/26		338,000			(5,193)		(2,980)		(2,213)
Government of Brazil		(1.00)%	Quarterly	BZWS		6/20/25		182,000			2,660		16,125		(13,465)
Government of Italy		(1.00)%	Quarterly	BOFA		6/20/24		233,000			(3,990)		1,369		(5,359)
Government of Italy		(1.00)%	Quarterly	BOFA		6/20/24		140,000			(2,397)		1,847		(4,244)
Hovnanian Enterprises Inc.		(5.00)%	Quarterly	BZWS		6/20/26		8,000			723		820		(97)
Hovnanian Enterprises Inc.		(5.00)%	Quarterly	BZWS		6/20/26		40,000			3,615		3,911		(296)
Itochu Corp.		(1.00)%	Quarterly	GSCO		6/20/22		12,107,000	JPY		(1,077)		(565)		(512)
JFE Holdings Inc.		(1.00)%	Quarterly	GSCO		6/20/22		5,348,000	JPY		(461)		(257)		(204)
Kohl’s Corp.		(1.00)%	Quarterly	CITI		12/20/25		207,000			(1,157)		16,353		(17,510)
Kohl’s Corp.		(1.00)%	Quarterly	GSCO		12/20/25		154,000			(860)		12,002		(12,862)
Kohl’s Corp.		(1.00)%	Quarterly	MSCO		12/20/25		221,000			(1,235)		17,459		(18,694)
Lloyds Bank PLC		(1.00)%	Quarterly	GSCO		6/20/24		127,000	EUR		(3,744)		548		(4,292)
Lloyds Bank PLC		(1.00)%	Quarterly	JPHQ		12/20/24		121,000	EUR		(2,386)		2,333		(4,719)
Marubeni Corp.		(1.00)%	Quarterly	CITI		6/20/25		3,711,000	JPY		(1,013)		828		(1,841)
Marubeni Corp.		(1.00)%	Quarterly	GSCO		6/20/22		18,860,000	JPY		(1,637)		(727)		(910)
MBIA Inc.		(5.00)%	Quarterly	BZWS		6/20/22		23,000			(869)		(217)		(652)
MBIA Inc.		(5.00)%	Quarterly	CITI		6/20/22		36,000			(1,362)		(945)		(417)
MBIA Inc.		(5.00)%	Quarterly	GSCO		6/20/22		21,000			(794)		(436)		(358)
MBIA Inc.		(5.00)%	Quarterly	JPHQ		12/20/24		97,000			(7,281)		(9,034)		1,753
Mitsui O.S.K. Lines Ltd.		(1.00)%	Quarterly	JPHQ		6/20/22		3,878,000	JPY		(319)		(47)		(272)
Mitsui O.S.K. Lines Ltd.		(1.00)%	Quarterly	JPHQ		6/20/22		3,618,000	JPY		(297)		(43)		(254)
Saipem Finance International BV		(5.00)%	Quarterly	JPHQ		6/20/26		34,000	EUR		(3,528)		(2,578)		(950)

85

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT 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		Unamortized Upfront Payments (Receipts)		Unrealized Appreciation (Depreciation)		Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
Simon Property Group LP		(1.00)%	Quarterly	JPHQ		12/20/25		434,000	$	(8,629)	$	7,942	$	(16,571)
Simon Property Group LP		(1.00)%	Quarterly	MSCO		12/20/25		340,000		(6,760)		6,222		(12,982)
Softbank Group Corp.		(1.00)%	Quarterly	BZWS		6/20/24		6,394,000JPY		1,294		1,379		(85)
Softbank Group Corp.		(1.00)%	Quarterly	BZWS		6/20/24		9,987,000JPY		2,020		1,746		274
Stena AB		(5.00)%	Quarterly	GSCO		6/20/24		92,000EUR		(4,383)		4,524		(8,907)
Stena AB		(5.00)%	Quarterly	GSCO		6/20/26		9,000EUR		(390)		395		(785)
Total OTC Swap Contracts									$	(18,028)	$	141,441	$	(159,469)
Total Credit Default Swap Contracts									$	(711,872)	$	(210,278)	$	(501,594)

^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 August 31, 2021, the Fund had the following interest rate swap contracts outstanding. See Note 3.

Interest Rate Swap Contracts

Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts
Receive Floating rate 3 Month USD-LIBOR Pay Fixed rate 1.75%		Quarterly		9/18/21		1,500,000		$	1,219
Receive Floating rate 3 Month USD-LIBOR Pay Fixed rate 1.75%		Quarterly		3/18/22		1,100,000			(8,024)
Receive Fixed 5.47%
Pay Floating Banxico Mexico 1 Month rate		Monthly		9/13/23		9,833,165	MXN		(3,404)
Receive Fixed 6.19%
Pay Floating Banxico Mexico 1 Month rate		Monthly		9/09/26		9,894,795	MXN		(5,544)
Receive Floating rate 3 Month USD-LIBOR Pay Fixed rate 2.25%		Quarterly		6/20/28		1,100,000			(161,432)
Receive Floating rate 6 Month-SORA Pay Fixed rate 1.28%		Semi-Annually		9/15/31		455,901	SGD		(3,690)
Receive Floating rate 6 Month-WIBOR Pay Fixed rate 1.86%		Annually		9/15/31		754,995	PLN		(1,129)
Receive Floating rate 6 Month-WIBOR Pay Fixed rate 1.98%		Annually		9/15/31		3,684,962	PLN		(16,280)
Total Interest Rate Swap Contracts								$	(198,284)

*In U.S. dollars unless otherwise indicated.

86

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

At August 31, 2021, the Fund had the following total return swap contracts outstanding. See Note 3.

Total Return Swap Contracts

Underlying Instrument

Financing Rate

Payment Frequency

Counter- party

Maturity Date

Notional Value

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts

Equity Contracts - Longa

Clearway Energy Inc.

1-Month LIBOR + 0.35%

Monthly

JPHQ

1/20/22

$

57,201

$

11,937

Clearway Energy Inc.

1-Month LIBOR + 0.40%

Monthly

GSCO

4/20/22

106,444

22,205

Clearway Energy Inc.

1-Month LIBOR + 0.40%

Monthly

GSCO

4/20/22

112,641

23,574

Clearway Energy Inc.

1-Month LIBOR + 0.40%

Monthly

BZWS

5/16/22

6,495

1,320

Enterprise Products Partners LP

1-Month LIBOR + 0.90%

Monthly

BOFA

3/04/22

29,781

(2,114

)

Enterprise Products Partners LP

1-Month LIBOR + 0.90%

Monthly

GSCO

4/20/22

32,008

(2,288

)

54,634

Equity Contracts - Shortb

Carnival Corp.

1-Month LIBOR - 0.40%

Monthly

MSCO

11/08/22

21,423

(2,148

)

Interest Rate Contracts - Longa

Government of Egypt

1-Day FEDEF

Monthly

CITI

1/11/22

86,712

1,547

Government of Indonesia

3-Month LIBOR + 0.70%

Monthly

BOFA

2/17/22

114,441

(2,774

)

Government of Indonesia

3-Month LIBOR + 0.70%

Monthly

BOFA

5/18/22

431,215

(5,010

)

Government of Indonesia

3-Month LIBOR + 0.60%

Monthly

DBAB

6/15/32

103,643

8,349

2,112

Total - Total Return Swap Contracts

$

54,598

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

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

Abbreviations

Counterparty		Currency		Selected Portfolio
BNPP	BNP Paribas	EGP	Egyptian Pound	ARM	Adjustable Rate Mortgage
BOFA	Bank of America Corp.	EUR	Euro	CLO	Collateralized Loan Obligation
BZWS	Barclays Bank PLC	GBP	British Pound	DIP	Debtor-In-Possession
CITI	Citigroup, Inc.	JPY	Japanese Yen	ETF	Exchange Traded Fund
DBAB	Deutsche Bank AG	MXN	Mexican Peso	FEDEF	Federal Funds Effective Rate
FBCO	Credit Suisse Group AG	PLN	Polish Zloty	FHLMC	Federal Home Loan Mortgage Corp.
GSCO	The Goldman Sachs Group, Inc.	RUB	Russian Ruble	FNMA	Federal National Mortgage Association
JPHQ	JP Morgan Chase & Co.	SGD	Singapore Dollar	FRN	Floating Rate Note
MLCO	Merrill Lynch & Co., Inc.	USD	United States Dollar	LIBOR	London InterBank Offered Rate
MSCO	Morgan Stanley & Co. LLC	ZAR	South African Rand	PIK	Payment In-Kind
				REIT	Real Estate Investment Trust
				SPAC	Special Purpose Acquisition Company
				SPDR	Standard & Poor’s Depositary Receipt
				WIBOR	Warsaw Interbank Offered Rate
				SORA	Singapore Overnight Rate Average

Index
CDX.NA.HY	CDX North America High Yield Index

87

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Notes to (Consolidated) Statements of Investments (unaudited)

1. Organization

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 (Funds) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP).

2. Financial Instrument Valuation

The Funds’ 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 Funds calculate 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 Funds’ administrator has responsibility for oversight of valuation, including leading the cross-functional Valuation Committee (VC). The Funds 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 Funds’ 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 Funds’ 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 Funds’ net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.

The Funds have procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Funds primarily employ 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 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 Funds’ 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 Funds. As a result, differences may arise between the value of the Funds’ 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 August 31, 2021, 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 Funds’ NAV is not calculated, which could result in differences between the value of the Funds’ 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 Funds for financial reporting purposes.

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3. Derivative Financial Instruments

Certain or all Funds 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.

Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. Certain or all Funds attempt to reduce their 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 Funds include failure of the Funds 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. Early termination by the counterparty may result in an immediate payment by the Funds 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 the 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 Funds’ 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.

Certain or all Funds entered into exchange traded futures contracts primarily to manage and/or gain exposure to commodity price, interest rate, certain foreign currencies 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.

Certain or all Funds 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.

Certain or all Funds 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. 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 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.

Certain or all Funds entered into interest rate swap contracts primarily to manage 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. Over the term of the contract, contractually required payments to be paid and to be received are accrued daily and recorded as unrealized depreciation and appreciation until the payments are made, at which time they are realized.

Certain or all Funds entered into OTC total return swap contracts primarily to manage and/or gain exposure to interest rate, equity price and commodity 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

89

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.

Certain or all Funds purchased or wrote exchange traded and/or OTC option contracts primarily to manage and/or gain exposure to interest rate, equity price 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.

The following Funds have invested in derivatives during the period.

Franklin K2 Alternative Strategies Fund – Futures, forwards, swaps and options

Franklin K2 Long Short Credit Fund – Futures, forwards, swaps and options

4. 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 Funds, their ability to buy and sell fund investments at appropriate valuations and their ability to achieve their investment objectives.

5. Restricted Securities

The Funds invest 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 Funds may have registration rights for restricted securities. The issuer generally incurs all registration costs.

At August 31, 2021, investments in restricted securities, excluding securities exempt from registration under the 1933 Act, were as follows:

Shares	Issuer	Acquisition Date		Cost		Value
Franklin K2 Long Short Credit Fund
923	Acosta Inc.		12/31/19	$	8,144	$	7,042
925	Acosta Inc., cvt. pfd.		12/31/19-6/30/21		50,262		46,601
	Total Restricted Securities (Value is 0.1% of Net Assets)			$	58,406	$	53,643

6. Unfunded Loan Commitments

Certain or all Funds entered into certain credit agreements, all or a portion of which may be unfunded. The Funds are obligated to fund these loan commitments at the borrowers’ discretion. Unfunded loan commitments and funded portions of credit agreements are marked to market daily. Funded portions of credit agreements are presented in the (Consolidated) Statements of Investments.

At August 31, 2021, unfunded commitments were as follows:

Borrower	Unfunded Commitment
Franklin K2 Alternative Strategies Fund
Advantage Sales & Marketing Inc., Initial Term Loan	$	673,794
Constellation Inc., Term Loan B		110,024
Hilton Grand Vacations Inc., Term Loan B		105,000
Intelsat Jackson Holdings SA, Term Loan B4		467,032
Intelsat Jackson Holdings SA, Term Loan DIP		45,851
Lecta, Super Senior Term Loan		32,441
Lecta, Super Senior Term Loan RC		31,344
Motel 6, Term Loan B		40,000
Riverbed Technology Inc., Term Loan B		171,081
The GEO Group Inc., Term Loan B		74,343
Travel Leaders Group LLC, Term Loan B		483,429
Upfield Group BV, Term Loan RC		726,041
	$	2,960,380
Franklin K2 Long Short Credit Fund
Advantage Sales & Marketing Inc., Initial Term Loan	$	198,300
Constellation Inc., Term Loan B		32,436
Intelsat Jackson Holdings SA, Term Loan B4		3,965
Intelsat Jackson Holdings SA, Term Loan DIP		14,769
Lecta, Super Senior Term Loan		22,483
Lecta, Super Senior Term Loan RC		21,722

90

Riverbed Technology Inc., Term Loan B		110,143
Travel Leaders Group LLC, Term Loan B		142,622
Upfield Group BV, Term Loan RC		214,532
	$	760,972

7. Investments in Affiliated Management Investment Companies

Certain or all Funds invest in one or more affiliated management investment companies for purposes other than exercising a controlling influence over the management or policies. During the period ended August 31, 2021, investments in affiliated management investment companies were 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
Franklin K2 Alternative Strategies Fund
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio, 0.01%		$3,305,000		$8,494,000		$(8,299,000	)		$-		$-		$3,500,000		3,500,000		$74

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

Certain or all Funds invest in certain financial instruments and commodity-linked derivative investments through its investments 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 August 31, 2021, the K2 Subsidiary’s investments, as well as any other assets and liabilities of the K2 Subsidiary, are reflected in the Fund’s Consolidated Statements of Investments. At August 31, 2021, the Fund’s investments in the K2 Subsidiary were as follows:

Fund Name	Subsidiary Namea	Consolidated Net Assets		Subsidiary Net Assets		% of Consolidated Net Assets
Franklin K2 Alternative Strategies Fund	K2 Holdings Investment Corp.		$1,386,018,860		$22,520,549		1.6%

^a The Fund’s investments in the K2 Subsidiary is limited to 25% of consolidated assets.

9. Fair Value Measurements

The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Funds’ own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds’ 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 Funds’ 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 August 31, 2021, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:

		Level 1			Level 2				Level 3				Total
Franklin K2 Alternative Strategies Fund
Assets:
Investments in Securities:a
Equity Investmentsb	$		511,680,078	$		74,336,067		$		10,362,043	c	$		596,378,188
Convertible Bonds			–			173,942,803				–				173,942,803
Corporate Bonds and Notes			–			115,540,616				51,360				115,591,976
Corporate Bonds and Notes in Reorganization			–			2,062,852				–	c			2,062,852
Senior Floating Rate Interests			–			4,952,962				–				4,952,962
Credit-Linked Notes			–			5,889,442				–				5,889,442
Foreign Government and Agency Securities			–			64,470,736				274,543				64,745,279
Foreign Government and Agency Securities in Reorganization			–			231,920				–				231,920
U.S. Government and Agency Securities			–			1,642,955				–				1,642,955
Asset-Backed Securities and Commercial Mortgage-Backed Securities			–			92,953,457				14,962				92,968,419
Municipal Bonds in Reorganization			–			7,443,975				–				7,443,975
Options Purchased			1,823,781			81,454				–				1,905,235
Short Term Investments			244,475,262			2,065,334				–				246,540,596
Total Investments in Securities	$		757,979,121	$		545,614,573	d	$		10,702,908		$		1,314,296,602
Other Financial Instruments:
Futures Contracts	$		1,897,120	$		–		$		–		$		1,897,120
Forward Exchange Contracts			–			2,846,085				–				2,846,085

91

Swap Contracts		–		6,364,847			96,602			6,461,449
Total Other Financial Instruments	$	1,897,120	$	9,210,932		$	96,602		$	11,204,654
Liabilities:
Other Financial Instruments:
Options Written	$	359,067	$	–		$	–		$	359,067
Securities Sold Shorta		214,605,059		17,740,464	e		–			232,345,523
Futures Contracts		1,911,469		–			–			1,911,469
Forward Exchange Contracts		–		3,074,422			–			3,074,422
Swap Contracts		–		5,191,060			–			5,191,060
Unfunded Loan Commitments		–		23,321			39			23,360
Total Other Financial Instruments	$	216,875,595	$	26,029,267		$	39		$	242,904,901
	Level 1		Level 2			Level 3			Total
Franklin K2 Long Short Credit Fund
Assets:
Investments in Securities:a
Equity Investmentsb	$	3,239,368	$	250,930		$	65,443	c	$	3,555,741
Convertible Bonds		–		657,993			–			657,993
Corporate Bonds and Notes		–		27,116,474			–			27,116,474
Corporate Bonds and Notes in Reorganization		–		76,240			–			76,240
Senior Floating Rate Interests		–		2,003,187			–			2,003,187
Credit-Linked Notes		–		966,551			–			966,551
Foreign Government and Agency Securities		–		6,832,746			–			6,832,746
U.S. Government and Agency Securities		–		494,023			–			494,023
Asset-Backed Securities and Commercial Mortgage-Backed Securities		–		37,729,258			–			37,729,258
Municipal Bonds in Reorganization		–		1,669,181			–			1,669,181
Options Purchased		27,899		–			–			27,899
Short Term Investments		20,294,436		4,102,161			–			24,396,597
Total Investments in Securities	$	23,561,703	$	81,898,744	f	$	65,443		$	105,525,890
Other Financial Instruments:
Forward Exchange Contracts	$	–	$	94,804		$	–		$	94,804
Swap Contracts		–		138,081			–			138,081
Total Other Financial Instruments	$	–	$	232,885		$	–		$	232,885
Liabilities:
Other Financial Instruments:
Options Written	$	6,755	$	–		$	–		$	6,755
Securities Sold Shorta		401,123		4,465,394			–			4,866,517
Futures Contracts		152,378		–			–			152,378
Forward Exchange Contracts		–		35,247			–			35,247
Swap Contracts		–		783,361			–			783,361
Unfunded Loan Commitments		–		8,294			27			8,321
Total Other Financial Instruments	$	560,256	$	5,292,296		$	27		$	5,852,579

^a  For detailed categories, see the accompanying (Consolidated) Statements of Investments.

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

^c Includes securities determined to have no value at August 31, 2021.

^d Includes foreign securities valued at $74,304,779, 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.

^e Includes foreign securities valued at $3,591,679, 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.

^f Includes foreign securities valued at $250,930, which were categorized as Level 2 as a result of the application of market level fair value procedures. See the Financial Instrument Valuation note for more information.

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

10. Subsequent Events

The Funds have evaluated subsequent events through the issuance of the (Consolidated) Statements of Investments and determined that no events have occurred that require disclosure.

For additional information on the Funds’ significant accounting policies, please refer to the Funds’ most recent semiannual or annual shareholder report.

92