FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Consolidated Statement of Investments, February 28, 2021 (unaudited)

Franklin K2 Alternative Strategies Fund

	Country	Shares/         Warrants/ Rights		Value
Common Stocks and Other Equity Interests 39.9%
Aerospace & Defense 0.7%
a,bAerojet Rocketdyne Holdings Inc.	United States		161,763	$	8,293,589
aBombardier Inc., B	Canada		609,589		268,246
Lockheed Martin Corp.	United States		104		34,346
					8,596,181
Air Freight & Logistics 0.3%
Expeditors International of Washington Inc.	United States		1,456		133,719
United Parcel Service Inc., B	United States		220		34,723
aXPO Logistics Inc.	United States		26,406		3,078,939
					3,247,381
Airlines 0.2%
Delta Air Lines Inc.	United States		6,877		329,683
aJapan Airlines Co. Ltd.	Japan		69,862		1,672,397
aUnited Airlines Holdings Inc.	United States		6,231		328,249
					2,330,329
Automobiles 0.0%†
General Motors Co.	United States		2,414		123,911
Banks 0.0%†
cBank of America Corp.	United States		1,023		35,508
Barclays PLC	United Kingdom		108,406		241,934
Citigroup Inc.	United States		561		36,958
Hope Bancorp Inc.	United States		8,188		107,754
JPMorgan Chase & Co.	United States		81		11,921
Truist Financial Corp.	United States		633		36,056
					470,131
Beverages 0.4%
The Coca-Cola Co.	United States		3,367		164,949
Davide Campari-Milano NV	Italy		246,410		2,784,927
Primo Water Corp.	United States		116,331		1,662,370
					4,612,246
Biotechnology 2.5%
aAcadia Pharmaceuticals Inc.	United States		12,535		613,839
a,d,eAlder Biopharmaceuticals Inc., Contingent Value, rts., 12/31/24	United States		50,624		44,549
aAlexion Pharmaceuticals Inc.	United States		37,798		5,773,644
aAmicus Therapeutics Inc.	United States		51,566		633,230
aApellis Pharmaceuticals Inc.	United States		41,833		2,015,096
a,eArgenx SE, ADR	Netherlands		4,614		1,525,757
aBiogen Inc.	United States		1,617		441,247
aBioNTech SE, ADR	Germany		6,140		669,444
aBlueprint Medicines Corp.	United States		5,772		566,926
a,eBurning Rock Biotech Ltd., ADR	China		32,867		1,182,883
a,eC4 Therapeutics Inc.	United States		6,325		271,469
a,eConstellation Pharmaceuticals Inc.	United States		13,650		343,980
aCRISPR Therapeutics AG	Switzerland		5,322		668,922
aCytoDyn Inc.	United States		2,742		12,394
a,eDenali Therapeutics Inc.	United States		7,683		551,639
aDicerna Pharmaceuticals Inc.	United States		8,470		228,521
aFate Therapeutics Inc.	United States		16,262		1,459,027
a,eGenetron Holdings Ltd., ADR	China		31,720		779,995
cGilead Sciences Inc.	United States		11,646		715,065
a,eGossamer Bio Inc.	United States		27,395		257,513
aGracell Biotechnologies Inc., ADR	China		7,748		176,112
aImmatics NV, wts., 12/31/25	Germany		10,049		26,127
a,fInnovent Biologics Inc., 144A	China		62,682		645,051
aIntellia Therapeutics Inc.	United States		8,263		499,581

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)
a,eKymera Therapeutics Inc.	United States		4,162	$	199,693
a,eLegend Biotech Corp., ADR	United States		6,589		179,089
aMirati Therapeutics Inc.	United States		1,711		343,774
a,bNatera Inc.	United States		22,622		2,626,188
a,eNovavax Inc.	United States		3,652		844,452
a,eNurix Therapeutics Inc.	United States		7,354		261,876
a,eORIC Pharmaceuticals Inc.	United States		10,440		338,256
aPMV Pharmaceuticals Inc.	United States		7,999		301,002
aPraxis Precision Medicines Inc.	United States		4,250		184,875
aProQR Therapeutics NV	Netherlands		39,814		181,950
a,eSage Therapeutics Inc.	United States		11,360		965,600
a,bSarepta Therapeutics Inc.	United States		4,193		365,043
aSeagen Inc.	United States		1,717		259,456
aTurning Point Therapeutics Inc.	United States		11,627		1,370,940
aTwist Bioscience Corp.	United States		2,251		309,828
aVeracyte Inc.	United States		8,204		476,324
a,bVertex Pharmaceuticals Inc.	United States		6,739		1,432,374
aZai Lab Ltd., ADR	China		9,498		1,401,145
					32,143,876
Building Products 0.1%
Carrier Global Corp.	United States		21,479		784,628
Masco Corp.	United States		609		32,411
					817,039
Capital Markets 0.5%
a,fAmundi SA, 144A	France		25,204		1,915,259
fAnima Holding SpA, 144A	Italy		102,616		491,576
Artisan Partners Asset Management Inc., A	United States		700		33,250
a,eCapstar Special Purpose Acquisition Corp., A	United States		13,782		141,266
aCapstar Special Purpose Acquisition Corp., wts., 7/9/27	United States		6,891		9,578
The Charles Schwab Corp.	United States		572		35,304
aCITIC Capital Acquisition Corp., A	China		6,957		73,188
a,bE.Merge Technology Acquisition Corp., A	United States		17,676		179,588
a,bE.Merge Technology Acquisition Corp., wts., 7/30/25	United States		12,853		21,722
aFoley Trasimene Acquisition Corp., wts., 5/26/25	United States		12,781		24,284
a,bGS Acquisition Holdings Corp. II, A	United States		2,923		35,134
aHudson Executive Investment Corp., A	United States		18,651		200,312
aHudson Executive Investment Corp. II	United States		7,620		79,629
aHudson Executive Investment Corp. III	United States		4,200		42,462
Moody’s Corp.	United States		9,327		2,563,899
cMorgan Stanley	United States		467		35,898
S&P Global Inc.	United States		106		34,912
a,eSCVX Corp., A	United States		6,958		73,964
a,eXP Inc., A	Brazil		9,245		408,074
					6,399,299
Chemicals 0.8%
Advanced Emissions Solutions Inc.	United States		8,549		48,729
The Sherwin-Williams Co.	United States		11,931		8,117,137
Tikkurila OYJ	Finland		21,645		882,713
WR Grace & Co.	United States		21,432		1,270,060
					10,318,639
Commercial Services & Supplies 0.6%
bCintas Corp.	United States		12,767		4,140,849
Covanta Holding Corp.	United States		17,998		252,872
Republic Services Inc., A	United States		36,014		3,208,487
					7,602,208

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)
Communications Equipment 0.1%
Accton Technology Corp.	Taiwan		169,000	$	1,591,500
Cisco Systems Inc.	United States		799		35,851
eUbiquiti Inc.	United States		103		32,849
					1,660,200
Construction & Engineering 0.5%
aAECOM	United States		20,580		1,191,376
aMastec Inc.	United States		28,710		2,490,592
Quanta Services Inc.	United States		27,276		2,287,093
					5,969,061
Construction Materials 0.8%
aCemex SAB de CV, ADR	Mexico		579,735		3,832,048
LafargeHolcim Ltd., B	Switzerland		60,292		3,326,114
Martin Marietta Materials Inc.	United States		2,358		794,340
aSummit Materials Inc., A	United States		43,768		1,212,811
Vulcan Materials Co.	United States		7,916		1,321,893
					10,487,206
Containers & Packaging 0.9%
bBall Corp.	United States		100,464		8,578,621
a,bCrown Holdings Inc.	United States		35,499		3,392,284
					11,970,905
Distributors 0.2%
Pool Corp.	United States		6,697		2,241,955
Diversified Consumer Services 0.0%†
aAmerican Public Education Inc.	United States		12,148		357,637
Diversified Financial Services 1.3%
a2MX Organic SA, wts., 11/16/25	France		3,920		2,838
a7GC & Co. Holdings Inc.	United States		9,720		105,462
a890 5th Avenue Partners Inc.	United States		76,995		793,049
aACE Convergence Acquisition Corp., wts., 7/28/27	United States		9,842		16,731
aAdit Edtech Acquisition Corp.	United States		17,700		182,399
aAEA-Bridges Impact Corp.	Cayman Islands		2,814		32,080
aAequi Acquisition Corp.	United States		23,912		257,054
aAfrican Gold Acquisition Corp.	United States		8,123		81,230
a,cAjax I	United States		1,783		22,049
a,eAltitude Acquisition Corp., A	United States		22,070		257,998
aAltitude Acquisition Corp., wts., 11/30/27, A	United States		32,489		95,518
aApollo Strategic Growth Capital, A	United States		8,654		90,780
aApollo Strategic Growth Capital II	United States		8,845		91,811
aArtius Acquisition Inc., wts., 7/13/26	United States		16,402		45,598
a,eAscendant Digital Acquisition Corp.	United States		16,080		171,895
aAthlon Acquisition Corp.	United States		22,172		228,372
a,eAtlantic Avenue Acquisition Corp.	United States		8,680		93,744
aAtlas Crest Investment Corp. II	United States		16,848		178,757
aAusterlitz Acquisition Corp. I	United States		6,880		70,864
aAusterlitz Acquisition Corp. II	United States		12,632		129,478
aAuthentic Equity Acquisition Corp.	United States		18,478		189,400
aB Riley Principal 150 Merger Corp.	United States		2,100		21,630
aBiotech Acquisition Co.	United States		8,706		90,194
aBluescape Opportunities Acquisition Corp.	United States		1,128		13,243
aBluescape Opportunities Acquisition Corp., wts., 1/31/26	United States		9,383		20,173
a,eBowX Acquisition Corp., A	United States		55,461		582,341
aBowX Acquisition Corp., wts., 8/7/27	United States		4,058		7,223
aBroadscale Acquisition Corp.	United States		6,216		64,646
aBroadstone Acquisition Corp., wts., 9/15/28	United States		25,789		31,720

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)
Diversified Financial Services (continued)
aBurgundy Technology Acquisition Corp.	United States		8,583	$	88,491
aCarney Technology Acquisition Corp. II, A	United States		12,636		128,255
aCarney Technology Acquisition Corp. II, wts., 11/30/27	United States		5,876		8,520
a,eCC Neuberger Principal Holdings II	United States		12,116		129,399
aCC Neuberger Principal Holdings II, wts., 7/29/25	United States		9,918		19,340
aCC Neuberger Principal Holdings III	United States		558		5,747
aCF Acquisition Corp. V	United States		16,015		164,794
aChargePoint Holdings Inc., wts., 12/31/24	United States		343		5,035
aChurchill Capital Corp. VI	United States		1,080		11,826
aChurchill Capital Corp. VII	United States		8,290		86,548
aClarim Acquisition Corp.	United States		51,011		519,292
aClass Acceleration Corp.	United States		13,640		141,447
aClimate Real Impact Solutions II Acquisition Corp.	United States		6,013		66,143
aCM Life Sciences II Inc.	United States		10,505		141,818
aColicity Inc.	United States		21,940		226,859
aConstellation Acquisition Corp. I	United States		705		7,360
a,eCorner Growth Acquisition Corp.	United States		37,982		395,393
aCrescent Acquisition Corp., A	United States		85,622		873,344
aCrucible Acquisition Corp.	United States		4,437		48,585
a,eDecarbonization Plus Acquisition Corp. II	United States		3,027		32,177
aDecarbonization Plus Acquisition Corp., wts., 10/2/25	United States		2,801		7,843
adMY Technology Group Inc. III	United States		34		525
aDragoneer Growth Opportunities Corp.	United States		3,294		34,785
aDragoneer Growth Opportunities Corp. II	United States		1,335		15,446
aDragoneer Growth Opportunities Corp., wts., 8/18/27	United States		5,282		12,126
aECP Environmental Growth Opportunities Corp.	United States		10,712		114,083
aEJF Acquisition Corp.	United States		4,200		42,294
aExecutive Network Partnering Corp.	United States		7,174		186,452
aFifth Wall Acquisition Corp. I, A	United States		876		9,461
aFigure Acquisition Corp. I	United States		4,707		49,894
aFlame Acquisition Corp.	United States		8,424		84,661
aFortistar Sustainable Solutions Corp.	United States		4,362		45,888
aFortress Capital Acquisition Corp.	United States		9,805		101,384
a,eFortress Value Acquisition Corp. II, A	United States		15,257		156,537
aFreedom Acquisition I Corp.	United States		1,955		20,137
aFS Development Corp. II, A	United States		7,141		75,695
aFTAC Athena Acquisition Corp.	United States		20,508		214,309
aFusion Acquisition Corp. II	United States		15,892		160,032
aG Squared Ascend I Inc.	United States		5,572		58,227
aGlobal Partner Acquisition Corp. II	United States		17,700		181,602
a,eGO Acquisition Corp., A	United States		12,171		124,266
aGO Acquisition Corp., wts., 8/31/27	United States		4,057		6,086
aGoal Acquisitions Corp.	United States		17,513		182,836
aGores Holdings V Inc., A	United States		834		8,924
aGores Holdings V Inc., wts., 8/10/27	United States		3,120		5,304
aGores Holdings VII Inc.	United States		4,454		46,099
aGores Holdings VIII Inc.	United States		6,118		64,545
aGroup Nine Acquisition Corp.	United States		22,173		230,378
aHealthcare Services Acquisition Corp.	United States		12,918		136,931
aHennessy Capital Investment Corp. V	United States		6,696		72,719
aInterprivate Acquisition Corp., wts., 10/29/24	United States		4,498		19,386
aInvestindustrial Acquisition Corp.	United Kingdom		6,450		71,483
aION Acquisition Corp. 2 Ltd.	Israel		555		6,061
aJack Creek Investment Corp.	United States		11,761		121,138
aJaws Mustang Acquisition Corp.	United States		13,995		148,347
aJoff Fintech Acquisition Corp.	United States		5,277		54,617

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)
aKairos Acquisition Corp.	United States		8,866	$	92,118
aKensington Capital Acquisition Corp. II	United States		12,806		140,226
aKINS Technology Group Inc.	United States		8,846		94,829
aLakestar SPAC I SE	Luxembourg		2,128		28,448
aLakestar SPAC I SE, wts., 12/31/25	Luxembourg		716		1,123
aLazard Growth Acquisition Corp. I	United States		4,240		43,672
aLeo Holdings III Corp.	Bahamas		1,303		13,356
aLGL Systems Acquisition Corp., wts., 11/12/26	United States		4,192		8,174
aLive Oak Acquisition Corp. II, A	United States		15,675		164,117
aLive Oak Acquisition Corp. II, wts., 12/7/27, A	United States		5,484		12,120
aMarlin Technology Corp.	United States		15,591		162,146
aMDH Acquisition Corp.	United States		4,587		46,787
aMotive Capital Corp.	United States		16,143		172,084
aMudrick Capital Acquisition Corp. II	United States		4,258		45,007
aThe Music Acquisition Corp.	United States		3,453		35,566
aNew Providence Acquisition Corp., wts., 9/1/24	United States		37		179
aNorth Atlantic Acquisition Corp.	United States		9,600		98,880
aNovus Capital Corp. II	United States		19,008		202,055
a,eOaktree Acquisition Corp. II	United States		17,512		188,604
aOne Equity Partners Open Water I Corp.	United States		8,800		90,112
aOne, wts., 8/17/25	United States		3,305		10,411
aPathfinder Acquisition Corp.	United States		27,835		291,989
a,ePeriphas Capital Partnering Corp., A	United States		10,736		268,507
aPeriphas Capital Partnering Corp., wts., 12/10/28, A	United States		2,684		7,784
aPershing Square Tontine Holdings Ltd., wts., 7/24/21	United States		1		13
aPivotal Investment Corp. III	United States		205		2,134
a,ePMV Consumer Acquisition Corp.	United States		4,933		53,029
aPoema Global Holdings Corp.	United States		8,866		94,334
aPontem Corp.	United States		16,446		169,558
aPopulation Health Investment Co. Inc.	United States		1,204		13,148
aPower & Digital Infrastructure Acquisition Corp.	United States		7,684		83,371
a,ePrimavera Capital Acquisition Corp.	Hong Kong		3,048		32,918
aPrime Impact Acquisition I	United States		15,978		165,372
aPrime Impact Acquisition I, wts., 1/10/30	United States		5,326		8,788
a,eRedBall Acquisition Corp.	United States		8,172		85,643
aRedBall Acquisition Corp., wts., 8/17/22	United States		7,582		14,178
aReinvent Technology Partners Z, wts., 12/31/27	United States		523		1,645
aRevolution Acceleration Acquisition Corp., wts., 12/10/26	United States		4,099		11,477
aRice Acquisition Corp.	United States		1		12
a,eRice Acquisition Corp., A	United States		4,770		52,088
aRMG Acquisition Corp. II	United States		18,524		214,878
aRMG Acquisition Corp. II, wts., 12/27/25	United States		4,099		9,674
aRMG Acquisition Corp. III	United States		24,341		255,581
aRosecliff Acquisition Corp. I	United States		65,919		669,738
aRoth CH Acquisition I Co., wts., 1/28/25	United States		16,475		162,279
aRotor Acquisition Corp.	United States		4,464		45,935
aScience Strategic Acquisition Corp. Alpha	United States		5,442		56,053
aScION Tech Growth I, A	United Kingdom		3,306		33,391
aScION Tech Growth I, wts., 11/1/25	United Kingdom		1,102		1,653
aScION Tech Growth II	United Kingdom		2,073		21,456
aSCP & Co. Healthcare Acquisition Co.	United States		17,062		174,032
aSilver Crest Acquisition Corp.	Hong Kong		10,530		108,564
aSilverBox Engaged Merger Corp. I	United States		2,689		28,772
aSoaring Eagle Acquisition Corp.	United States		16,395		177,886
aSocial Leverage Acquisition Corp. I	United States		13,866		147,534
aSoftware Acquisition Group Inc. II, wts., 3/17/27	United States		15,561		28,788

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)
a,eSpartan Acquisition Corp. III	United States		4,144	$	43,429
a,eSports Entertainment Acquisition Corp., A	United States		6,469		66,113
aSports Entertainment Acquisition Corp., wts., 10/30/25	United States		8,653		13,360
aSpring Valley Acquisition Corp., wts. 5/20/27	Cayman Islands		954		2,023
aStarboard Value Acquisition Corp., A	United States		1,043		10,868
aSupernova Partners Acquisition Co. Inc.	United States		2,003		22,814
a,eSupernova Partners Acquisition Co. Inc., A	United States		7,208		78,495
aSupernova Partners Acquisition Co. Inc., wts., 10/16/25	United States		5,334		11,788
aSustainable Development Acquisition I Corp.	United States		8,363		87,812
aTailwind Acquisition Corp., A	United States		16,038		168,559
aTailwind Acquisition Corp., wts., 9/7/27	United States		8,019		15,717
aTekkorp Digital Acquisition Corp.	United States		4,032		45,118
aTLG Acquisition One Corp.	United States		21,789		218,762
aTWC Tech Holdings II Corp.	United States		4,664		50,931
aTwelve Seas Investment Co. II	United States		23,063		229,477
aTZP Strategies Acquisition Corp.	United States		4,362		44,841
aUSHG Acquisition Corp.	United States		508		5,217
aVelocity Acquisition Corp.	United States		840		8,568
aVirtuoso Acquisition Corp.	United States		28,094		286,559
aViveon Health Acquisition Corp.	United States		14,756		148,445
aViveon Health Acquisition Corp., Contingent Value, rts., 12/31/27	United States		22,809		5,360
aViveon Health Acquisition Corp., wts., 12/31/27	United States		22,809		13,063
aWarrior Technologies Acquisition Co.	United States		4,632		46,366
aYucaipa Acquisition Corp., wts., 9/6/25	United States		3,720		8,052
					16,713,104
Diversified Telecommunication Services 0.1%
AT&T Inc.	United States		21,316		594,503
Telecom Italia SpA	Italy		411,734		195,497
Telecom Italia SpA, RSP	Italy		99,275		53,222
Verizon Communications Inc.	United States		619		34,231
					877,453
Electric Utilities 1.0%
Duke Energy Corp.	United States		2,117		181,194
a,bEnergy Harbor Corp.	United States		82,474		2,206,180
Exelon Corp.	United States		97,360		3,758,096
bFirstEnergy Corp.	United States		27,296		904,589
NRG Energy Inc.	United States		81,945		2,991,812
aPG&E Corp.	United States		233,016		2,448,998
					12,490,869
Electrical Equipment 0.1%
aArray Technologies Inc.	United States		23,059		855,028
Electronic Equipment, Instruments & Components 0.5%
a908 Devices Inc.	United States		1,098		58,403
aCoherent Inc.	United States		4,641		1,122,844
FLIR Systems Inc.	United States		76,395		4,079,493
Hollysys Automation Technologies Ltd.	China		85,272		1,284,196
TE Connectivity Ltd.	United States		145		18,854
					6,563,790
Entertainment 0.3%
cActivision Blizzard Inc.	United States		346		33,081
Electronic Arts Inc.	United States		10,245		1,372,522
aGlu Mobile Inc.	United States		20,383		254,380
aNetflix Inc.	United States		3,893		2,097,743
aSciplay Corp., A	United States		21,885		397,213

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)
Entertainment (continued)
aZynga Inc., A	United States		2,152	$	23,995
					4,178,934
Equity Real Estate Investment Trusts (REITs) 0.2%
American Tower Corp.	United States		155		33,500
cCrown Castle International Corp.	United States		196		30,527
EPR Properties	United States		27,269		1,232,013
VICI Properties Inc.	United States		35,949		1,024,547
					2,320,587
Food & Staples Retailing 0.4%
Costco Wholesale Corp.	United States		11,966		3,960,746
Walgreens Boots Alliance Inc.	United States		14,853		711,904
Walmart Inc.	United States		1,192		154,865
					4,827,515
Food Products 0.2%
Nestle SA	Switzerland		29,163		3,043,704
Health Care Equipment & Supplies 2.3%
bAbbott Laboratories	United States		7,942		951,292
aAlcon Inc.	Switzerland		4,340		296,856
aAlign Technology Inc.	United States		1,192		675,995
bBecton Dickinson and Co.	United States		5,467		1,318,367
aBoston Scientific Corp.	United States		19,678		763,113
bThe Cooper Cos. Inc.	United States		3,393		1,310,139
Danaher Corp., W	United States		18,308		4,021,719
aDexCom Inc.	United States		4,450		1,770,121
aEdwards Lifesciences Corp.	United States		12,681		1,053,791
aInsulet Corp.	United States		2,091		541,778
a,bIntuitive Surgical Inc.	United States		1,321		973,313
Medtronic PLC	United States		7,812		913,770
aNevro Corp.	United States		3,317		547,902
aNuVasive Inc.	United States		7,978		481,313
aOrtho Clinical Diagnostics Holdings PLC	United States		4,412		76,328
aOutset Medical Inc.	United States		4,118		205,035
a,eShockwave Medical Inc.	United States		10,832		1,264,744
aTandem Diabetes Care Inc.	United States		6,440		618,176
Teleflex Inc.	United States		876		348,753
a,bVarian Medical Systems Inc.	United States		51,559		9,036,746
Zimmer Biomet Holdings Inc.	United States		9,121		1,487,270
					28,656,521
Health Care Providers & Services 0.8%
aAccolade Inc.	United States		6,507		288,390
Anthem Inc.	United States		120		36,383
Cigna Corp.	United States		10,073		2,114,323
CVS Health Corp.	United States		2,976		202,755
a,bGuardant Health Inc.	United States		9,043		1,330,949
cHCA Healthcare Inc.	United States		205		35,266
bHumana Inc.	United States		4,345		1,649,579
aNew Frontier Health Corp.	Hong Kong		41,239		461,464
aSignify Health Inc., A	United States		3,242		107,051
bUnitedHealth Group Inc.	United States		10,587		3,517,213
					9,743,373
Health Care Technology 0.1%
aCertara Inc.	United States		1,672		57,935
aMultiPlan Corp., wts., 3/1/27	United States		17,287		23,164
aPhreesia Inc.	United States		12,944		792,820

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)
Health Care Technology (continued)
a,bTeladoc Health Inc.	United States		4,255	$	940,738
a,fYidu Tech Inc., 144A	China		6,520		40,769
					1,855,426
Hotels, Restaurants & Leisure 0.4%
Carnival PLC	United States		30,833		686,717
aChipotle Mexican Grill Inc., A	United States		338		487,396
Domino’s Pizza Inc.	United States		6,859		2,376,712
McDonald’s Corp.	United States		1,064		219,333
Starbucks Corp.	United States		1,560		168,527
aWilliam Hill PLC	United Kingdom		329,817		1,245,967
					5,184,652
Household Durables 0.0%†
cD.R. Horton Inc.	United States		457		35,130
aInstalled Building Products Inc.	United States		4,968		543,300
					578,430
Household Products 0.0%†
The Procter & Gamble Co.	United States		1,658		204,813
Independent Power & Renewable Electricity Producers 0.9%
The AES Corp.	United States		232,168		6,166,382
aAKER Horizons AS	Norway		15,070		69,870
cClearway Energy Inc., C	United States		37,978		1,042,876
NextEra Energy Partners LP	United States		31,301		2,273,705
aSunnova Energy International Inc.	United States		38,481		1,725,488
					11,278,321
Industrial Conglomerates 0.0%†
Smiths Group PLC	United Kingdom		17,888		366,328
Insurance 0.8%
The Allstate Corp.	United States		193		20,574
The Progressive Corp.	United States		406		34,896
a,eTrupanion Inc.	United States		12,824		1,240,850
aWillis Towers Watson PLC	United States		37,853		8,351,886
					9,648,206
Interactive Media & Services 2.2%
a,bAlphabet Inc., A	United States		2,881		5,825,123
a,bAlphabet Inc., C	United States		1,546		3,148,986
aBumble Inc., A	United States		1,930		129,908
a,bFacebook Inc., A	United States		15,722		4,050,301
aMatch Group Inc.	United States		15,974		2,441,626
a,bSnap Inc., A	United States		67,315		4,419,903
Tencent Holdings Ltd.	China		93,799		8,160,233
					28,176,080
Internet & Direct Marketing Retail 1.4%
a,bAlibaba Group Holding Ltd., ADR	China		26,369		6,269,494
aAmazon.com Inc.	United States		1,301		4,023,902
aBooking Holdings Inc.	United States		281		654,311
beBay Inc.	United States		33,091		1,866,994
aGrubhub Inc.	United States		74,741		4,788,656
					17,603,357
IT Services 2.9%
a21Vianet Group Inc., ADR	China		27,751		1,011,246
Accenture PLC, A	United States		131		32,868
Cognizant Technology Solutions Corp., A	United States		30,359		2,230,779
aFleetCor Technologies Inc.	United States		6,487		1,798,910

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)
IT Services (continued)
Genpact Ltd.	United States		93,424	$	3,778,067
Global Payments Inc.	United States		25,973		5,142,394
aGoDaddy Inc., A	United States		20,262		1,643,653
International Business Machines Corp.	United States		2,072		246,423
MasterCard Inc., A	United States		13,868		4,907,192
aMongoDB Inc., A	United States		4,500		1,736,685
a,bPayPal Holdings Inc.	United States		22,655		5,886,902
cPerspecta Inc.	United States		30,600		893,520
aSabre Corp.	United States		9,200		135,148
aStoneCo. Ltd.	Brazil		40,066		3,438,064
aVeriSign Inc.	United States		8,313		1,612,971
eVisa Inc., A	United States		4,995		1,060,888
aWEX Inc.	United States		6,737		1,403,654
					36,959,364
Leisure Products 0.1%
Callaway Golf Co.	United States		34,006		950,468
Life Sciences Tools & Services 1.7%
a10x Genomics Inc., A	United States		3,334		593,419
a,eAbcellera Biologics Inc.	Canada		418		15,763
aAdaptive Biotechnologies Corp.	United States		12,996		735,184
aAvantor Inc.	United States		21,309		593,882
a,eBerkeley Lights Inc.	United States		909		56,331
aEurofins Scientific SE	Luxembourg		23,368		2,074,288
Gerresheimer AG	Germany		9,835		1,015,765
aIllumina Inc.	United States		2,404		1,056,341
aIQVIA Holdings Inc.	United States		5,730		1,104,687
aMaravai Lifesciences Holdings Inc., A	United States		5,756		187,185
aMettler-Toledo International Inc.	United States		3,910		4,363,755
aPPD Inc.	United States		13,778		483,057
aPRA Health Sciences Inc.	United States		16,198		2,387,747
aRepligen Corp.	United States		4,431		941,100
Sartorius Stedim Biotech	France		3,203		1,398,977
aSeer Inc., A	United States		4,142		199,768
Thermo Fisher Scientific Inc.	United States		6,560		2,952,525
a,fWuxi Biologics Cayman Inc., 144A	China		108,141		1,339,750
					21,499,524
Machinery 0.2%
Cummins Inc.	United States		60		15,192
Deere & Co.	United States		113		39,450
Neles OYJ	Finland		3,271		40,396
Parker-Hannifin Corp.	United States		129		37,018
Stanley Black & Decker Inc.	United States		2,412		421,714
The Toro Co.	United States		14,096		1,420,454
					1,974,224
Marine 0.1%
aSEACOR Holdings Inc.	United States		35,013		1,488,403
Media 0.1%
cComcast Corp., A	United States		657		34,637
cFox Corp.	United States		434		14,456
The Interpublic Group of Cos. Inc.	United States		1,398		36,516
aITV PLC	United Kingdom		293,248		450,553
cNexstar Media Group Inc., A	United States		280		38,514
Stroeer SE & Co. KGaA	Germany		1,613		144,700
					719,376

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)
Metals & Mining 0.0%†
Newmont Corp.	United States		613	$	33,335
Multiline Retail 0.1%
Dollar General Corp.	United States		159		30,049
cTarget Corp.	United States		9,834		1,803,949
					1,833,998
Oil, Gas & Consumable Fuels 0.1%
aBattalion Oil Corp.	United States		3,790		43,964
aCalifornia Resources Corp.	United States		9,392		246,822
aChesapeake Energy Corp., wts., 2/9/26	United States		648		14,314
aChesapeake Energy Corp., wts., 2/9/26	United States		720		13,741
aChesapeake Energy Corp., wts., 2/9/26	United States		400		6,980
cChevron Corp.	United States		383		38,300
Enterprise Products Partners LP	United States		1,238		26,394
cExxon Mobil Corp.	United States		665		36,156
a,dLonestar Resources US Inc.	United States		3,072		23,654
Western Midstream Partners LP	United States		2,328		38,715
aWhiting Petroleum Corp.	United States		7,276		249,567
					738,607
Paper & Forest Products 0.0%†
a,dTopco Associates LLC	United Kingdom		144,632		—
Personal Products 0.2%
The Estee Lauder Cos. Inc., A	United States		311		88,902
aUnilever PLC	United Kingdom		38,739		2,012,413
					2,101,315
Pharmaceuticals 1.1%
aArvinas Inc.	United States		3,611		282,741
bAstraZeneca PLC, ADR	United Kingdom		9,929		480,365
aBausch Health Cos. Inc.	United States		6,809		213,939
Bristol-Myers Squibb Co.	United States		578		35,449
aCatalent Inc.	United States		3,639		413,791
bEli Lilly & Co., W	United States		12,834		2,629,558
aGW Pharmaceuticals PLC, ADR	United Kingdom		11,122		2,382,889
Hikma Pharmaceuticals PLC	Jordan		15,834		495,322
Johnson & Johnson	United States		1,380		218,675
Merck & Co. Inc.	United States		467		33,914
bNovo Nordisk AS, ADR	Denmark		12,001		855,071
cPfizer Inc.	United States		1,011		33,858
a,eRevance Therapeutics Inc.	United States		17,112		449,361
Roche Holding AG	Switzerland		11,950		3,920,305
Zoetis Inc., A	United States		13,092		2,032,402
					14,477,640
Professional Services 1.3%
b,cCoreLogic Inc.	United States		47,579		4,028,038
aCoStar Group Inc.	United States		1,927		1,587,385
aIHS Markit Ltd.	United States		21,997		1,983,250
a,fIntertrust NV, 144A	Netherlands		241,848		3,941,876
SGS SA	Switzerland		180		514,399
TransUnion	United States		18,747		1,578,685
aTriNet Group Inc.	United States		33,047		2,652,683
					16,286,316
Road & Rail 0.8%
CSX Corp.	United States		14,440		1,321,982
Kansas City Southern	United States		18,695		3,969,696
Ryder System Inc.	United States		546		37,003

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)
Road & Rail (continued)
b,cUnion Pacific Corp.	United States		23,870	$	4,916,265
					10,244,946
Semiconductors & Semiconductor Equipment 2.4%
aAdvanced Micro Devices Inc.	United States		21,861		1,847,473
cApplied Materials Inc.	United States		305		36,048
ASML Holding NV, G	Netherlands		4,298		2,437,353
aDialog Semiconductor PLC	United Kingdom		7,565		588,049
aEnphase Energy Inc.	United States		5,024		884,525
aInphi Corp.	United States		11,795		1,941,339
cIntel Corp.	United States		568		34,523
KLA Corp.	United States		386		120,135
LAM Research Corp.	United States		60		34,031
Marvell Technology Group Ltd.	Bermuda		60,834		2,937,066
Maxim Integrated Products Inc.	United States		54,721		5,098,356
MediaTek Inc.	Taiwan		70,000		2,246,762
aMicron Technology Inc.	United States		16,600		1,519,398
NVIDIA Corp.	United States		64		35,109
aQorvo Inc.	United States		8,470		1,479,963
QUALCOMM Inc.	United States		753		102,551
cSkyworks Solutions Inc.	United States		15,186		2,700,375
a,d,f,gSunEdison Inc., Contingent Distribution, 144A	United States		35,000		700
cTexas Instruments Inc.	United States		10,818		1,863,617
Xilinx Inc.	United States		31,518		4,106,795
					30,014,168
Software 4.6%
aAdobe Inc.	United States		5,566		2,558,523
aAtlassian Corp. PLC, A	United States		7,495		1,781,561
aAvalara Inc.	United States		10,421		1,635,472
aBlackberry Ltd.	Canada		54,994		552,690
aCeridian HCM Holding Inc.	United States		17,559		1,574,340
aGuidewire Software Inc.	United States		8,862		983,593
aHubSpot Inc.	United States		4,219		2,172,785
Intuit Inc.	United States		9,007		3,513,991
bMicrosoft Corp.	United States		23,554		5,473,478
cOracle Corp.	United States		545		35,158
a,cPluralsight Inc., A	United States		110,492		2,275,031
a,bRealPage Inc.	United States		127,467		11,061,587
aSalesforce.com Inc.	United States		17,584		3,806,936
SAP SE	Germany		39,020		4,826,250
aServiceNow Inc.	United States		7,282		3,884,656
aSlack Technologies Inc., A	United States		130,956		5,360,029
aVaronis Systems Inc., B	United States		7,700		1,413,258
aWorkday Inc., A	United States		16,503		4,046,205
a,bZscaler Inc.	United States		4,118		844,314
					57,799,857
Specialty Retail 1.1%
aFive Below Inc.	United States		17,142		3,190,469
aFrasers Group PLC	United Kingdom		180,900		1,185,980
The Home Depot Inc.	United States		22,566		5,829,701
cLowe’s Cos. Inc.	United States		195		31,151
Tractor Supply Co.	United States		9,598		1,525,698
a,eVroom Inc.	United States		26,889		1,189,838
a,fWatches of Switzerland Group PLC, 144A	United Kingdom		69,216		615,236
					13,568,073

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)
Technology Hardware, Storage & Peripherals 0.1%
Apple Inc.	United States		1,682	$	203,959
aDell Technologies Inc., C	United States		18,710		1,516,820
					1,720,779
Textiles, Apparel & Luxury Goods 0.7%
aAdidas AG	Germany		13,073		4,557,044
aCapri Holdings Ltd.	United States		40,575		1,893,635
LVMH Moet Hennessy Louis Vuitton SE	France		267		169,176
cNike Inc., B	United States		740		99,737
bTapestry Inc.	United States		37,765		1,591,417
					8,311,009
Tobacco 0.0%†
Altria Group Inc.	United States		785		34,226
cPhilip Morris International Inc.	United States		374		31,423
					65,649
Trading Companies & Distributors 0.3%
Brenntag SE	Germany		45,255		3,506,665
IMCD Group NV	Netherlands		2,228		274,121
					3,780,786
Transportation Infrastructure 0.1%
aAtlantia SpA	Italy		57,216		1,071,182
Macquarie Infrastructure Corp.	United States		8,172		256,111
					1,327,293
Water Utilities 0.1%
Guangdong Investment Ltd.	China		545,824		974,796
Wireless Telecommunication Services 0.2%
Orange Belgium SA	Belgium		29,892		821,103
aT-Mobile USA Inc.	United States		7,932		951,602
b,eVodafone Group PLC, ADR	United Kingdom		49,788		855,358
					2,628,063
Total Common Stocks and Other Equity Interests (Cost $356,524,573)					504,012,684
Convertible Preferred Stocks 0.1%
Banks 0.1%
Bank of America Corp., 7.25%, cvt. pfd., L	United States		190		264,235
Wells Fargo & Co., 7.50%, cvt. pfd., L	United States		256		355,328
					619,563
Electric Utilities 0.0%†
NextEra Energy Inc., 5.279%, cvt. pfd.	United States		1,607		78,245
Food Products 0.0%†
Bunge Ltd., 4.875%, cvt. pfd.	United States		4,895		554,359
Gas Utilities 0.0%†
El Paso Energy Capital Trust I, 4.75%, cvt. pfd.	United States		114		5,699
Spire Inc., 7.50%, cvt. pfd., A	United States		1,621		85,086
					90,785
Health Care Equipment & Supplies 0.0%†
Boston Scientific Corp., 5.50%, cvt. pfd., A	United States		2,051		226,881
Total Convertible Preferred Stocks (Cost $1,478,845)					1,569,833

12

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country	Shares			Value
Preferred Stocks 0.1%
Banks 0.0%†
Bank of Montreal, 3.852%, pfd., 27	Canada		1,605		$	28,579
Royal Bank of Canada, pfd.,
AZ, 3.70%	Canada		4,054			71,135
BB, 3.65%	Canada		3,399			60,736
BD, 3.20%	Canada		4,613			85,148
The Toronto-Dominion Bank, pfd.,
1, 3.662%	Canada		5,976			107,160
3, 3.681%	Canada		1,995			35,821
						388,579
Diversified Financial Services 0.0%†
2MX Organic SA, pfd.	France		3,908			49,038
Electric Utilities 0.1%
SCE Trust II, 5.10%, pfd.	United States		5,734			138,190
SCE Trust III, 5.75%, pfd., H	United States		10,235			251,576
SCE Trust IV, 5.375%, pfd., J	United States		3,529			84,343
SCE Trust VI, 5.00%, pfd.	United States		4,649			108,322
						582,431
Thrifts & Mortgage Finance 0.0%†
FHLMC, 8.375%, pfd., Z	United States		3,672			19,351
FNMA, 8.25%, pfd., S	United States		3,650			20,696
						40,047
Total Preferred Stocks (Cost $1,022,335)						1,060,095
		Principal Amount*
Convertible Bonds 16.2%
Aerospace & Defense 0.2%
bKaman Corp., senior note, 3.25%, 5/01/24	United States		1,533,000			1,675,862
fParsons Corp., senior note, 144A, 0.25%, 8/15/25	United States		1,279,000			1,340,971
						3,016,833
Air Freight & Logistics 0.3%
bAir Transport Services Group Inc., senior note, 1.125%, 10/15/24	United States		1,210,000			1,329,150
bAtlas Air Worldwide Holdings Inc., senior note,
2.25%, 6/01/22	United States		1,264,000			1,326,477
1.875%, 6/01/24	United States		1,119,000			1,302,364
						3,957,991
Airlines 0.4%
hAir France-KLM, senior note, Reg S, 0.125%, 3/25/26	France		9,150	EUR		164,771
bAmerican Airlines Group Inc., senior note, 6.50%, 7/01/25	United States		1,188,000			1,859,223
b,fCopa Holdings SA, senior note, 144A, 4.50%, 4/15/25	Panama		1,125,000			2,169,900
fGOL Equity Finance SA, senior note, 144A, 3.75%, 7/15/24	Brazil		807,000			679,807
Southwest Airlines Co., senior note, 1.25%, 5/01/25	United States		195,000			328,819
						5,202,520
Auto Components 0.2%
bPatrick Industries Inc., senior note, 1.00%, 2/01/23	United States		1,663,000			1,900,703
Automobiles 0.2%
fNIO Inc., senior note, 144A, zero cpn., 2/01/26	China		1,343,000			1,274,296
bWinnebago Industries Inc., senior note, 1.50%, 4/01/25	United States		880,000			1,170,304
						2,444,600
Banks 0.3%
bHope Bancorp Inc., senior bond, 2.00%, 5/15/38	United States		2,047,000			1,997,643

13

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country	Principal Amount*			Value
Convertible Bonds (continued)
Banks (continued)
b,fJPMorgan Chase Financial Co. LLC, senior note, 144A, 0.25%, 5/01/23	United States		1,717,000		$	1,901,440
						3,899,083
Biotechnology 1.2%
BioMarin Pharmaceutical Inc., senior sub. note,
0.599%, 8/01/24	United States		1,023,000			1,070,123
f144A, 1.25%, 5/15/27	United States		2,114,000			2,166,740
fBridgebio Pharma Inc., senior note, 144A, 2.25%, 2/01/29	United States		1,024,000			1,073,738
b,fCoherus Biosciences Inc., senior sub. note, 144A, 1.50%, 4/15/26	United States		941,000			1,077,921
bFlexion Therapeutics Inc., senior note, 3.375%, 5/01/24	United States		1,652,000			1,491,963
Gossamer Bio Inc., senior note, 5.00%, 6/01/27	United States		648,000			592,098
fHalozyme Therapeutics Inc., senior note, 144A, 0.25%, 3/01/27	United States		80,000			78,946
eIntercept Pharmaceuticals Inc., senior note, 2.00%, 5/15/26	United States		1,010,000			665,923
Ironwood Pharmaceuticals Inc., senior note,
2.25%, 6/15/22	United States		774,000			791,229
e1.50%, 6/15/26	United States		774,000			804,205
fKadmon Holdings Inc., senior note, 144A, 3.625%, 2/15/27	United States		420,000			425,796
bKaryopharm Therapeutics Inc., senior note, 3.00%, 10/15/25	United States		1,153,000			1,372,353
bLigand Pharmaceuticals Inc., senior note, 0.75%, 5/15/23	United States		1,982,000			2,045,226
Neurocrine Biosciences Inc., senior note, 2.25%, 5/15/24	United States		110,000			164,842
hPharming Group NV, senior note, Reg S, 3.00%, 1/21/25	Netherlands		700,000	EUR		697,204
						14,518,307
Chemicals 0.1%
hUmicore SA, senior note, Reg S, zero cpn., 6/23/25	Belgium		800,000	EUR		1,075,060
Communications Equipment 0.0%†
Lumentum Holdings Inc., senior note, 0.50%, 12/15/26	United States		55,000			65,972
Consumer Finance 0.7%
b Encore Capital Group Inc., senior note,
2.875%, 3/15/21	United States		1,703,000			1,699,811
3.25%, 3/15/22	United States		2,106,000			2,185,838
3.25%, 10/01/25	United States		1,210,000			1,331,479
EZCORP Inc., senior note, 2.875%, 7/01/24	United States		1,151,000			1,053,571
b,fLendingTree Inc., senior note, 144A, 0.50%, 7/15/25	United States		1,366,000			1,326,536
bPRA Group Inc., senior note, 3.50%, 6/01/23	United States		1,374,000			1,480,346
						9,077,581
Diversified Consumer Services 0.1%
fChegg Inc., senior note, 144A, zero cpn., 9/01/26	United States		40,000			47,510
fStride Inc., senior note, 144A, 1.125%, 9/01/27	United States		1,144,000			1,012,686
						1,060,196
Diversified Financial Services 0.1%
Element Fleet Management Corp., sub. note, 4.25%, 6/30/24	Canada		1,023,000	CAD		957,204
Electrical Equipment 0.0%†
fSunrun Inc., senior note, 144A, zero cpn., 2/01/26	United States		40,000			39,276
Electronic Equipment, Instruments & Components 0.2%
Knowles Corp., senior note, 3.25%, 11/01/21	United States		269,000			323,433
bOSI Systems Inc., senior note, 1.25%, 9/01/22	United States		1,181,000			1,272,100
bVishay Intertechnology Inc., senior note, 2.25%, 6/15/25	United States		1,346,000			1,499,290
						3,094,823
Energy Equipment & Services 0.1%
bHelix Energy Solutions Group Inc., senior note, 6.75%, 2/15/26	United States		1,192,000			1,405,070
Entertainment 0.5%
fCinemark Holdings Inc., senior note, 144A, 4.50%, 8/15/25	United States		1,551,000			2,771,349
Live Nation Entertainment Inc., senior note, 2.00%, 2/15/25	United States		1,535,000			1,769,087
fThe Marcus Corp., senior note, 144A, 5.00%, 9/15/25	United States		645,000			1,247,620

14

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country	Principal Amount*			Value
Convertible Bonds (continued)
Entertainment (continued)
fZynga Inc., senior note, 144A, zero cpn., 12/15/26	United States		235,000		$	273,528
						6,061,584
Equity Real Estate Investment Trusts (REITs) 0.5%
fGeo Corrections Holdings Inc., senior note, 144A, 6.50%, 2/23/26	United States		843,000			869,402
b,fIIP Operating Partnership LP, senior note, 144A, 3.75%, 2/21/24	United States		1,268,000			3,733,725
Pebblebrook Hotel Trust, senior note, 1.75%, 12/15/26	United States		660,000			761,924
RWT Holdings Inc., senior note, 5.75%, 10/01/25	United States		639,000			630,432
Summit Hotel Properties Inc., senior note, 1.50%, 2/15/26	United States		658,000			743,120
						6,738,603
Food & Staples Retailing 0.2%
eThe Chefs’ Warehouse Inc., senior note, 1.875%, 12/01/24	United States		1,915,000			2,029,970
Health Care Equipment & Supplies 1.1%
bCONMED Corp., senior note, 2.625%, 2/01/24	United States		1,076,000			1,613,723
b,fCryoport Inc., senior note, 144A, 3.00%, 6/01/25	United States		744,000			1,951,140
fDexCom Inc., senior note, 144A, 0.25%, 11/15/25	United States		1,277,000			1,372,881
fLivaNova USA Inc., senior note, 144A, 3.00%, 12/15/25	United States		350,000			509,687
Mesa Laboratories Inc., senior note, 1.375%, 8/15/25	United States		463,000			543,979
bNevro Corp., senior note, 2.75%, 4/01/25	United States		255,000			449,245
bNuVasive Inc., senior note,
2.25%, 3/15/21	United States		3,363,000			3,353,898
e,f144A, 1.00%, 6/01/23	United States		1,411,000			1,522,323
fSmileDirectClub Inc., senior note, 144A, zero cpn., 2/01/26	United States		1,466,000			1,407,111
fVarex Imaging Corp., senior note, 144A, 4.00%, 6/01/25	United States		895,000			1,198,317
						13,922,304
Health Care Providers & Services 0.2%
f1Life Healthcare Inc., senior note, 144A, 3.00%, 6/15/25	United States		792,000			1,062,602
fGuardant Health Inc., senior note, 144A, zero cpn., 11/15/27	United States		70,000			90,684
b,fPetIQ Inc., senior note, 144A, 4.00%, 6/01/26	United States		1,089,000			1,529,856
						2,683,142
Health Care Technology 0.2%
b,fHealth Catalyst Inc., senior note, 144A, 2.50%, 4/15/25	United States		792,000			1,389,816
bTabula Rasa Healthcare Inc., senior sub. note, 1.75%, 2/15/26	United States		966,000			928,877
fTeladoc Health Inc., senior note, 144A, 1.25%, 6/01/27	United States		275,000			357,042
						2,675,735
Hotels, Restaurants & Leisure 0.4%
b,fBloomin’ Brands Inc., senior note, 144A, 5.00%, 5/01/25	United States		768,000			1,732,973
fMarriott Vacations Worldwide Corp., senior note, 144A, zero cpn., 1/15/26	United States		1,832,000			2,174,129
b,fRoyal Caribbean Cruises Ltd., senior note, 144A, 2.875%, 11/15/23	United States		1,056,000			1,475,760
						5,382,862
Internet & Direct Marketing Retail 0.5%
hDelivery Hero AG, senior note, Reg S, 1.50%, 1/15/28	Germany		1,300,000	EUR		1,659,025
fExpedia Group Inc., senior note, 144A, zero cpn., 2/15/26	United States		1,405,000			1,499,401
fFiverr International Ltd., senior note, 144A, zero cpn., 11/01/25	Israel		518,000			772,804
fSpotify USA Inc., senior note, 144A, zero cpn., 3/15/26	United States		127,000			127,000
hTakeaway.com NV, senior note, Reg S, 1.25%, 4/30/26	Germany		300,000	EUR		386,672
b,fWayfair Inc., senior note, 144A, 0.625%, 10/01/25	United States		1,612,000			1,674,931
						6,119,833
IT Services 0.6%
Akamai Technologies Inc., senior note, 0.375%, 9/01/27	United States		1,535,000			1,665,580
CSG Systems International Inc., senior bond, 4.25%, 3/15/36	United States		1,798,000			1,916,618
b,fOkta Inc., senior note, 144A, 0.375%, 6/15/26	United States		538,000			706,457
b,fPerficient Inc., senior note, 144A, 1.25%, 8/01/25	United States		1,055,000			1,325,584

15

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country	Principal Amount*			Value
Convertible Bonds (continued)
IT Services (continued)
fShift4 Payments Inc., senior note, 144A, zero cpn., 12/15/25	United States		160,000		$	196,608
Shopify Inc., senior note, 0.125%, 11/01/25	Canada		1,022,000			1,303,689
						7,114,536
Leisure Products 0.1%
fPeloton Interactive Inc., senior note, 144A, zero cpn., 2/15/26	United States		1,309,000			1,301,656
Machinery 0.1%
The Greenbrier Cos. Inc., senior note, 2.875%, 2/01/24	United States		1,334,000			1,475,658
Marine 0.0%†
fSeaspan Corp., senior note, 144A, 3.75%, 12/15/25	Hong Kong		512,000			611,766
Media 1.2%
Dish Network Corp.,
senior bond, 3.375%, 8/15/26	United States		1,444,000			1,361,442
fsenior note, 144A, zero cpn., 12/15/25	United States		1,104,000			1,095,957
fLiberty Broadband Corp., senior bond, 144A,
b1.25%, 9/30/50	United States		2,420,000			2,422,773
2.75%, 9/30/50	United States		1,279,000			1,329,618
Liberty Interactive LLC,
senior bond, 4.00%, 11/15/29	United States		1,454,000			1,148,660
senior note, 3.75%, 2/15/30	United States		1,279,000			1,010,410
Liberty Media Corp.,
b,fsenior bond, 144A, 2.125%, 3/31/48	United States		1,188,000			1,220,895
b,fsenior bond, 144A, 2.75%, 12/01/49	United States		1,409,000			1,475,223
fsenior bond, 144A, 0.50%, 12/01/50	United States		780,000			935,571
bsenior note, 1.00%, 1/30/23	United States		1,060,000			1,374,457
b,fTechtarget Inc., senior note, 144A, 0.125%, 12/15/25	United States		1,211,000			1,652,110
						15,027,116
Metals & Mining 0.1%
Pretium Resources Inc., senior sub. note, 2.25%, 3/15/22	Canada		1,210,000			1,229,723
Mortgage Real Estate Investment Trusts (REITs) 0.6%
bArbor Realty Trust Inc., senior note, 4.75%, 11/01/22	United States		2,009,000			2,125,409
Hannon Armstrong Sustainable Infrastructure Capital Inc., senior note, zero cpn., 8/15/23	United States		660,000			836,810
bPennyMac Corp., senior note, 5.50%, 11/01/24	United States		1,722,000			1,735,991
Redwood Trust Inc., senior note, 4.75%, 8/15/23	United States		2,118,000			2,097,668
Two Harbors Investment Corp., senior note, 6.25%, 1/15/26	United States		544,000			595,027
						7,390,905
Oil, Gas & Consumable Fuels 0.2%
Green Plains Inc., senior note, 2.25%, 3/15/27	United States		527,000			548,080
bSFL Corp. Ltd., senior note, 5.75%, 10/15/21	Norway		1,452,000			1,467,030
						2,015,110
Personal Products 0.1%
bHerbalife Nutrition Ltd., senior note, 2.625%, 3/15/24	United States		1,536,000			1,622,796
Pharmaceuticals 1.1%
Aerie Pharmaceuticals Inc., senior note, 1.50%, 10/01/24	United States		951,000			1,021,089
bAurora Cannabis Inc., senior note, 5.50%, 2/28/24	Canada		2,305,000			1,965,012
b,fAvadel Finance Cayman Ltd., senior note, 144A, 4.50%, 2/01/23	United States		1,145,000			1,256,194
fCanopy Growth Corp., senior note, 144A, 4.25%, 7/15/23	Canada		1,216,000	CAD		1,138,268
Collegium Pharmaceutical Inc., senior note, 2.625%, 2/15/26	United States		953,000			1,048,966
bInnoviva Inc., sub. note, 2.125%, 1/15/23	United States		2,047,000			2,053,032
Jazz Investments I Ltd., senior note,
1.50%, 8/15/24	United States		1,209,000			1,344,875
b,f144A, 2.00%, 6/15/26	United States		639,000			853,931
Omeros Corp., senior note, 5.25%, 2/15/26	United States		774,000			1,032,361
Revance Therapeutics Inc., senior note, 1.75%, 2/15/27	United States		925,000			1,028,406

16

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country	Principal Amount*			Value
Convertible Bonds (continued)
Pharmaceuticals (continued)
fZogenix Inc., senior note, 144A, 2.75%, 10/01/27	United States		889,000		$	1,031,238
						13,773,372
Professional Services 0.2%
bFTI Consulting Inc., senior note, 2.00%, 8/15/23	United States		792,000			1,023,622
bKBR Inc., senior note, 2.50%, 11/01/23	United States		1,410,000			1,926,846
						2,950,468
Real Estate Management & Development 0.2%
b,fColliers International Group Inc., senior sub. note, 144A, 4.00%, 6/01/25	Canada		640,000			1,246,400
fTricon Residential Inc., senior sub. note, 144A, 5.75%, 3/31/22	Canada		1,141,000			1,200,902
						2,447,302
Road & Rail 0.1%
fUber Technologies Inc., senior note, 144A, zero cpn., 12/15/25	United States		1,171,000			1,233,132
Semiconductors & Semiconductor Equipment 0.6%
hams AG, senior note, Reg S, 2.125%, 11/03/27	Austria		1,200,000	EUR		1,553,006
Impinj Inc., senior note, 2.00%, 12/15/26	United States		909,000			1,805,547
bRambus Inc., senior note, 1.375%, 2/01/23	United States		791,000			997,121
bSMART Global Holdings Inc., senior note, 2.25%, 2/15/26	United States		1,237,000			1,660,620
bSynaptics Inc., senior note, 0.50%, 6/15/22	United States		1,077,000			1,982,181
						7,998,475
Software 2.7%
Alteryx Inc., senior note,
b0.50%, 8/01/24	United States		1,345,000			1,337,246
1.00%, 8/01/26	United States		1,005,000			1,000,887
bAvaya Holdings Corp., senior note, 2.25%, 6/15/23	United States		1,402,000			1,817,988
fBentley Systems Inc., senior note, 144A, 0.125%, 1/15/26	United States		1,569,000			1,637,127
fBox Inc., senior note, 144A, zero cpn., 1/15/26	United States		1,319,000			1,392,064
b,fCoupa Software Inc., senior note, 144A, 0.375%, 6/15/26	United States		807,000			1,129,574
CyberArk Software Ltd., senior note, zero cpn., 11/15/24	United States		531,000			621,589
b,fDocuSign Inc., senior note, 144A, zero cpn., 1/15/24	United States		1,535,000			1,585,470
fDropbox Inc., senior note, 144A, zero cpn., 3/01/26	United States		660,000			652,873
fDye & Durham Ltd., senior note, 144A, 3.75%, 3/01/26	Canada		511,000	CAD		410,466
b,fEnvestnet Inc., senior note, 144A, 0.75%, 8/15/25	United States		1,317,000			1,268,686
bEverbridge Inc., senior note, 0.125%, 12/15/24	United States		528,000			804,782
fFubotv Inc., senior note, 144A, 3.25%, 2/15/26	United States		640,000			657,600
fi3 Verticals LLC, senior note, 144A, 1.00%, 2/15/25	United States		1,147,000			1,231,473
bJ2 Global Inc., senior bond, 3.25%, 6/15/29	United States		2,065,000			3,361,625
LivePerson Inc., senior note,
b0.75%, 3/01/24	United States		1,037,000			1,905,848
f144A, zero cpn., 12/15/26	United States		90,000			103,091
fMicrostrategy Inc., senior note, 144A, zero cpn., 2/15/27	United States		1,366,000			1,275,852
fMitek Systems Inc., senior note, 144A, 0.75%, 2/01/26	United States		511,000			536,185
bNuance Communications Inc., senior bond, 1.00%, 12/15/35	United States		897,000			1,701,977
bNutanix Inc., senior note, zero cpn., 1/15/23	United States		1,614,000			1,651,541
fPalo Alto Networks Inc., senior note, 144A, 0.375%, 6/01/25	United States		1,291,000			1,739,148
Pluralsight Inc., senior note, 0.375%, 3/01/24	United States		46,000			44,961
PROS Holdings Inc., senior note,
1.00%, 5/15/24	United States		1,034,000			1,085,401
f144A, 2.25%, 9/15/27	United States		580,000			781,423
b,fSlack Technologies Inc., senior note, 144A, 0.50%, 4/15/25	United States		473,000			677,953
b,fSplunk Inc., senior note, 144A, 1.125%, 6/15/27	United States		1,537,000			1,536,868
bVerint Systems Inc., senior note, 1.50%, 6/01/21	United States		1,534,000			1,878,702
						33,828,400
Specialty Retail 0.3%
Guess? Inc., senior note, 2.00%, 4/15/24	United States		1,883,000			2,270,192

17

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country	Principal Amount*		Value
Convertible Bonds (continued)
Specialty Retail (continued)
fRH, senior note, 144A, zero cpn., 9/15/24	United States		897,000	$	2,129,858
					4,400,050
Technology Hardware, Storage & Peripherals 0.1%
bPure Storage Inc., senior note, 0.125%, 4/15/23	United States		1,056,000		1,208,025
Tobacco 0.2%
bTurning Point Brands Inc., senior note, 2.50%, 7/15/24	United States		1,705,000		2,033,223
Total Convertible Bonds (Cost $178,436,287)					204,990,965
Corporate Bonds and Notes 9.2%
Aerospace & Defense 0.7%
The Boeing Co.,
senior bond, 2.25%, 6/15/26	United States		115,000		116,346
senior bond, 2.95%, 2/01/30	United States		50,000		51,000
senior bond, 3.25%, 2/01/35	United States		25,000		24,623
senior bond, 3.55%, 3/01/38	United States		5,000		4,949
senior bond, 3.50%, 3/01/39	United States		5,000		4,875
senior bond, 5.705%, 5/01/40	United States		80,000		100,921
senior bond, 3.375%, 6/15/46	United States		90,000		82,375
senior bond, 3.65%, 3/01/47	United States		20,000		19,275
senior bond, 3.625%, 3/01/48	United States		25,000		23,811
senior bond, 3.90%, 5/01/49	United States		100,000		98,928
senior bond, 3.75%, 2/01/50	United States		130,000		126,955
senior bond, 5.805%, 5/01/50	United States		610,000		788,103
senior bond, 3.825%, 3/01/59	United States		25,000		23,880
senior bond, 3.95%, 8/01/59	United States		115,000		113,237
senior bond, 5.93%, 5/01/60	United States		110,000		144,711
senior note, 2.196%, 2/04/26	United States		435,000		435,988
senior note, 5.15%, 5/01/30	United States		230,000		268,206
f Bombardier Inc., 144A,
senior bond, 5.75%, 3/15/22	Canada		102,000		103,632
bsenior bond, 6.125%, 1/15/23	Canada		2,845,000		2,817,261
senior bond, 7.50%, 3/15/25	Canada		410,000		375,921
senior note, 6.00%, 10/15/22	Canada		1,241,000		1,218,978
senior note, 7.50%, 12/01/24	Canada		144,000		135,360
Embraer Netherlands Finance BV, senior bond, 5.05%, 6/15/25	Brazil		55,000		57,736
fLeonardo US Holdings Inc., senior bond, 144A, 6.25%, 1/15/40	Italy		236,000		276,120
Spirit Aerosystems Inc.,
senior bond, 4.60%, 6/15/28	United States		20,000		19,370
fsecured note, 144A, 7.50%, 4/15/25	United States		380,000		402,678
fsenior secured note, 144A, 5.50%, 1/15/25	United States		376,000		391,405
fTransDigm Inc., 144A,
senior note, 4.625%, 1/15/29	United States		150,000		147,750
senior secured note, 6.25%, 3/15/26	United States		280,000		295,441
fTriumph Group Inc., senior secured note, 144A, 8.875%, 6/01/24	United States		331,000		366,376
					9,036,211
Airlines 0.1%
American Airlines 2013-2 Class A Pass-Through Trust, 4.95%, 7/15/24	United States		43,068		42,370
fHawaiian Brand Intellectual Property Ltd. / Hawaiianmiles Loyalty Ltd., senior secured note, 144A, 5.75%, 1/20/26	United States		581,000		610,161
United Airlines 2020-1 Class B Pass-Through Trust, 4.875%, 1/15/26	United States		50,000		52,311
United Airlines Pass-Through Trust, 2019-2, B, 3.50%, 5/01/28	United States		391,954		377,192
					1,082,034

18

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country	Principal Amount*			Value
Corporate Bonds and Notes (continued)
Automobiles 0.2%
fAllison Transmission Inc., senior bond, 144A, 3.75%, 1/30/31	United States		245,000		$	234,741
fAston Martin Capital Holdings Ltd., senior secured note, 144A, 10.50%, 11/30/25	United Kingdom		175,000			191,297
Ford Motor Co.,
senior bond, 9.625%, 4/22/30	United States		55,000			77,897
senior note, 9.00%, 4/22/25	United States		260,000			314,876
General Motors Co., senior bond,
5.20%, 4/01/45	United States		30,000			35,842
5.40%, 4/01/48	United States		140,000			171,768
5.95%, 4/01/49	United States		897,000			1,174,180
iGeneral Motors Financial Co. Inc., junior sub. note, Perpetual,
A, 5.75%	United States		100,000			105,190
B, 6.50%	United States		75,000			82,078
C, 5.70%	United States		35,000			38,938
hTML Holdings Pte. Ltd., senior note, Reg S, 5.75%, 5/07/21	India		200,000			200,700
						2,627,507
Banks 0.6%
h Axis Bank Ltd., senior note, Reg S,
2.875%, 6/01/21	India		500,000			502,120
3.00%, 8/08/22	India		600,000			612,830
f,j,kBanco Hipotecario SA, senior note, 144A, FRN, 38.125%, (ARS BADLAR + 4.00%), 11/07/22	Argentina		3,160,000	ARS		22,305
f,kBanco Macro SA, senior note, 144A, 17.50%, 5/08/22	Argentina		1,740,000	ARS		10,072
hBank of Baroda, E, senior note, Reg S, 3.50%, 4/04/22	India		400,000			408,801
Barclays PLC, sub. bond, 3.564%, 9/23/35	United Kingdom		325,000			331,984
hCanara Bank, senior note, Reg S,
E, 3.25%, 8/10/22	India		200,000			204,690
E, 3.875%, 3/28/24	India		466,000			494,019
Deutsche Bank AG,
senior bond, 3.547%, 9/18/31	Germany		150,000			158,679
sub. bond, 3.729%, 1/14/32	Germany		200,000			199,142
hICICI Bank Ltd., E, senior note, Reg S, 3.25%, 9/09/22	India		300,000			308,119
hIndusind Bank Ltd., E, senior note, Reg S, 3.875%, 4/15/22	India		600,000			609,420
fSociete Generale SA, sub. bond, 144A, 3.653%, 7/08/35	France		200,000			207,275
Standard Chartered PLC,
fsub. bond, 144A, 3.265%, 2/18/36	United Kingdom		255,000			252,653
h,ijunior sub. bond, Reg S, 7.50%, Perpetual	United Kingdom		600,000			628,827
hState Bank of India, E, senior note, Reg S, 4.50%, 9/28/23	India		1,500,000			1,620,833
h,iTMB Bank PCL, E, junior sub. note, Reg S, 4.90%, Perpetual	Thailand		400,000			403,795
hVTB Bank OJSC Via VTB Capital SA, loan participation, sub. senior note, Reg S, 6.95%, 10/17/22	Russia		959,000			1,024,398
						7,999,962
Beverages 0.0%†
Fomento Economico Mexicano SAB de CV, senior bond, 3.50%, 1/16/50	Mexico		244,000			249,002
Building Products 0.0%†
fBuilders FirstSource Inc., senior secured note, 144A, 6.75%, 6/01/27	United States		205,000			220,119
Capital Markets 0.2%
Brixmor Operating Partnership LP, senior bond, 4.05%, 7/01/30	United States		415,000			460,109
eG Global Finance PLC, senior secured note,
f144A, 4.375%, 2/07/25	United Kingdom		100,000	EUR		119,035
f144A, 6.25%, 10/30/25	United Kingdom		144,000	EUR		177,945
hReg S, 6.25%, 10/30/25	United Kingdom		318,000	EUR		392,961
FS KKR Capital Corp., senior note, 3.40%, 1/15/26	United States		365,000			365,038

19

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)
hHuarong Finance 2017 Co. Ltd., senior note, Reg S,
jFRN, 2.063%, (3-Month USD LIBOR + 1.85%), 4/27/22	China		500,000		$	502,186
i4.50%, Perpetual	China		200,000			203,553
hHuarong Finance 2019 Co. Ltd., E, senior bond, Reg S, 3.625%, 9/30/30	China		200,000			202,148
Owl Rock Capital Corp., senior note, 3.40%, 7/15/26	United States		290,000			298,935
						2,721,910
Chemicals 0.0%†
f Braskem Netherlands Finance BV, senior bond, 144A, 4.50%, 1/31/30	Brazil		200,000			203,390
Communications Equipment 0.1%
f CommScope Inc., 144A,
senior note, 7.125%, 7/01/28	United States		430,000			451,530
senior secured note, 6.00%, 3/01/26	United States		190,000			199,987
fCommScope Technologies LLC, senior bond, 144A, 5.00%, 3/15/27	United States		180,000			176,662
fHTA Group Ltd., senior note, 144A, 7.00%, 12/18/25	Democratic Republic of the Congo		435,000			466,207
						1,294,386
Construction & Engineering 0.1%
h,iChina Minmetals Corp., senior note, Reg S, 4.45%, Perpetual	China		400,000			402,569
GMR Hyderabad International Airport Ltd., senior secured note,
hReg S, 5.375%, 4/10/24	India		200,000			206,856
f144A, 4.75%, 2/02/26	India		200,000			200,737
						810,162
Construction Materials 0.1%
f Cemex SAB de CV, senior secured bond, 144A,
5.45%, 11/19/29	Mexico		200,000			218,930
5.20%, 9/17/30	Mexico		245,000			266,376
3.875%, 7/11/31	Mexico		200,000			199,830
fStandard Industries Inc., senior bond, 144A, 4.375%, 7/15/30	United States		300,000			310,040
						995,176
Consumer Finance 0.1%
hMuthoot Finance Ltd., senior secured note, Reg S,
6.125%, 10/31/22	India		400,000			419,760
4.40%, 9/02/23	India		200,000			204,331
hShriram Transport Finance Co. Ltd., Reg S,
senior note, 4.40%, 3/13/24	India		100,000			100,575
senior secured note, E, 5.70%, 2/27/22	India		200,000			204,050
						928,716
Diversified Consumer Services 0.0%†
hLoxam SAS, senior secured note, Reg S, 3.25%, 1/14/25	France		100,000	EUR		119,448
fSabre GLBL Inc., senior secured note, 144A, 9.25%, 4/15/25	United States		35,000			41,563
						161,011
Diversified Financial Services 0.6%
AerCap Ireland Capital DAC / AerCap Global Aviation Trust, senior note, 6.50%, 7/15/25	Ireland		150,000			175,913
fAviation Capital Group LLC, senior note, 144A, 1.95%, 1/30/26	United States		50,000			49,229
hAzure Orbit IV International Finance Ltd., E, senior note, Reg S, 3.75%, 1/25/23	China		500,000			522,512
hBocom Leasing Management Hong Kong Co. Ltd., senior note, Reg S,
E, 4.00%, 1/22/22	China		200,000			204,722
E, 1.75%, 7/14/23	China		200,000			201,587

20

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 Financial Services (continued)
hCDBL Funding 2, senior note, Reg S,
E, 3.00%, 8/01/22	China		200,000		$	204,970
E, 1.375%, 3/04/24	China		800,000			798,248
hCICC Hong Kong Finance 2016 MTN Ltd., senior note, Reg S,
E, 1.75%, 8/10/23	China		400,000			402,896
E, 1.625%, 1/26/24	China		300,000			300,674
fFinanciera de Desarrollo Territorial SA Findeter, senior bond, 144A, 7.875%, 8/12/24	Colombia		393,000,000	COP		119,211
hHorse Gallop Finance Ltd., E, senior note, Reg S, 3.25%, 5/30/22	China		800,000			819,968
fIndian Railway Finance Corp. Ltd., senior bond, 144A, 2.80%, 2/10/31	India		200,000			194,347
fLadder Capital Finance Holdings LLLP / Ladder Capital Finance Corp., senior note, 144A,
5.25%, 10/01/25	United States		80,000			79,650
4.25%, 2/01/27	United States		60,000			58,050
hMDC-GMTN BV, senior bond, Reg S, 4.50%, 11/07/28	United Arab Emirates		261,000			307,338
fQuicken Loans Inc., senior bond, 144A, 5.25%, 1/15/28	United States		520,000			549,601
fQuicken Loans LLC / Quicken Loans Co.-Issuer Inc., 144A,
senior bond, 3.875%, 3/01/31	United States		380,000			378,100
senior note, 3.625%, 3/01/29	United States		355,000			352,116
hRec Ltd., senior note, Reg S,
4.75%, 5/19/23	India		1,000,000			1,065,300
5.25%, 11/13/23	India		400,000			436,468
						7,220,900
Diversified Telecommunication Services 0.7%
fCincinnati Bell Inc., senior note, 144A, 8.00%, 10/15/25	United States		4,421,000			4,716,654
fFrontier Communications Corp., senior secured note, 144A,
5.875%, 10/15/27	United States		465,000			498,422
5.00%, 5/01/28	United States		219,000			225,915
fKenbourne Invest SA, senior note, 144A, 6.875%, 11/26/24	Chile		200,000			216,000
f,lLigado Networks LLC, 144A, PIK,
esecured note, 17.50%, 5/01/24	United States		440,000			363,000
bsenior secured note, 15.50%, 11/01/23	United States		2,564,000			2,589,640
						8,609,631
Electric Utilities 0.4%
b,dBruce Mansfield Escrow, senior bond, zero cpn., 6/01/34	United States		6,394,000			23,977
hEskom Holdings SOC Ltd., senior bond, Reg S, 8.45%, 8/10/28	South Africa		1,134,000			1,274,559
h,iHuaneng Hong Kong Capital Ltd., senior note, Reg S, 3.60%, Perpetual	China		200,000			204,629
fIPALCO Enterprises Inc., senior secured bond, 144A, 4.25%, 5/01/30	United States		30,000			33,885
fOryx Funding Ltd., senior bond, 144A, 5.80%, 2/03/31	Oman		283,000			295,547
Pacific Gas and Electric Co.,
secured bond, 4.50%, 7/01/40	United States		1,106,000			1,184,541
secured bond, 4.95%, 7/01/50	United States		55,000			59,686
secured bond, 3.50%, 8/01/50	United States		200,000			181,324
bsenior bond, 4.75%, 2/15/44	United States		953,000			1,018,134
senior bond, 4.30%, 3/15/45	United States		95,000			97,076
secured note, 3.15%, 1/01/26	United States		874,000			929,511
Southern California Edison Co.,
secured bond, 3.65%, 2/01/50	United States		40,000			41,209
senior bond, 4.00%, 4/01/47	United States		10,000			10,840
senior bond, C, 4.125%, 3/01/48	United States		15,000			16,547
						5,371,465

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)
Energy Equipment & Services 0.0%†
fTransocean Inc., senior note, 144A, 7.50%, 1/15/26	United States		846,000		$	541,440
Entertainment 0.1%
e,fAMC Entertainment Holdings Inc., senior secured note, 144A, 10.50%, 4/15/25	United States		897,000			945,505
Netflix Inc., senior bond,
4.875%, 4/15/28	United States		55,000			62,704
5.875%, 11/15/28	United States		70,000			84,067
6.375%, 5/15/29	United States		75,000			93,281
f144A, 5.375%, 11/15/29	United States		10,000			11,827
f144A, 4.875%, 6/15/30	United States		180,000			207,225
						1,404,609
Equity Real Estate Investment Trusts (REITs) 0.1%
fIron Mountain Inc., 144A,
senior bond, 5.25%, 7/15/30	United States		210,000			216,300
senior note, 5.00%, 7/15/28	United States		130,000			135,039
National Health Investors Inc., senior bond, 3.00%, 2/01/31	United States		30,000			29,188
fSBA Communications Corp., senior note, 144A, 3.125%, 2/01/29	United States		250,000			243,495
						624,022
Food & Staples Retailing 0.1%
h,iCasino Guichard Perrachon SA, E, junior sub. note, Reg S, 3.992%, Perpetual	France		600,000	EUR		485,902
fMarb Bondco PLC, senior bond, 144A, 3.95%, 1/29/31	Brazil		225,000			218,531
hOlam International Ltd., E, senior note, Reg S, 4.50%, 4/12/21	Singapore		300,000			300,360
fSmithfield Foods Inc., senior bond, 144A, 3.00%, 10/15/30	United States		30,000			30,638
						1,035,431
Food Products 0.0%†
Kraft Heinz Foods Co., senior bond,
5.00%, 6/04/42	United States		45,000			53,076
4.375%, 6/01/46	United States		95,000			103,741
4.875%, 10/01/49	United States		150,000			175,896
fPost Holdings Inc., senior bond, 144A, 5.75%, 3/01/27	United States		80,000			83,922
						416,635
Health Care Providers & Services 0.2%
Centene Corp., senior bond, 2.50%, 3/01/31	United States		245,000			237,270
fCentene Escrow I Corp., senior note, 144A, 5.375%, 6/01/26	United States		1,000,000			1,046,140
Encompass Health Corp., senior bond, 4.625%, 4/01/31	United States		593,000			630,655
HCA Inc., senior bond, 3.50%, 9/01/30	United States		180,000			187,502
Tenet Healthcare Corp.,
secured note, 5.125%, 5/01/25	United States		20,000			20,125
fsecured note, 144A, 6.25%, 2/01/27	United States		35,000			36,991
fsenior note, 144A, 6.125%, 10/01/28	United States		45,000			47,428
fsenior secured note, 144A, 4.625%, 6/15/28	United States		130,000			135,404
fUS Acute Care Solutions LLC, senior secured note, 144A, 6.375%, 3/01/26	United States		606,000			620,393
						2,961,908
Hotels, Restaurants & Leisure 0.3%
f1011778 BC ULC / New Red Finance Inc., 144A,
secured bond, 4.00%, 10/15/30	Canada		70,000			68,351
secured note, 4.375%, 1/15/28	Canada		345,000			350,758
fCarnival Corp., senior note, 144A, 5.75%, 3/01/27	United States		295,000			299,838
b,fGolden Nugget Inc., senior note, 144A, 6.75%, 10/15/24	United States		667,000			679,093
fHilton Domestic Operating Co. Inc., senior bond, 144A, 4.00%, 5/01/31	United States		290,000			294,531
Hyatt Hotels Corp.,
senior bond, 5.75%, 4/23/30	United States		95,000			113,191
senior note, 5.375%, 4/23/25	United States		50,000			56,349

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)
Hotels, Restaurants & Leisure (continued)
Marriott International Inc.,
senior bond, FF, 4.625%, 6/15/30	United States		75,000	$	85,512
senior note, EE, 5.75%, 5/01/25	United States		45,000		51,989
fRoyal Caribbean Cruises Ltd., 144A,
senior note, 9.125%, 6/15/23	United States		547,000		601,016
senior secured note, 11.50%, 6/01/25	United States		484,000		566,885
fScientific Games International Inc., senior note, 144A, 7.00%, 5/15/28	United States		20,000		21,228
Travel + Leisure Co.,
senior secured bond, 6.00%, 4/01/27	United States		10,000		11,156
fsenior secured bond, 144A, 4.625%, 3/01/30	United States		35,000		36,340
fsenior secured note, 144A, 6.625%, 7/31/26	United States		125,000		141,256
Yum! Brands Inc., senior bond, 3.625%, 3/15/31	United States		155,000		149,188
					3,526,681
Household Durables 0.1%
fK. Hovnanian Enterprises Inc., senior secured note, 144A, 7.75%, 2/15/26	United States		1,628,000		1,741,960
Independent Power & Renewable Electricity Producers 0.0%†
fThe AES Corp., senior bond, 144A, 3.95%, 7/15/30	United States		75,000		82,078
fCalpine Corp., 144A,
senior secured bond, 3.75%, 3/01/31	United States		365,000		352,849
senior note, 5.125%, 3/15/28	United States		85,000		85,545
					520,472
Industrial Conglomerates 0.1%
General Electric Co., senior bond,
3.625%, 5/01/30	United States		110,000		120,166
4.35%, 5/01/50	United States		50,000		55,701
Icahn Enterprises LP / Icahn Enterprises Finance Corp., senior note,
6.25%, 5/15/26	United States		85,000		89,530
5.25%, 5/15/27	United States		265,000		278,913
f144A, 4.375%, 2/01/29	United States		235,000		235,223
					779,533
Insurance 0.2%
Athene Holding Ltd., senior bond, 3.50%, 1/15/31	United States		110,000		114,749
b,jGenworth Holdings Inc., senior bond, FRN, 2.196%, (3-Month USD LIBOR + 2.00%), 11/15/66	United States		1,717,000		862,792
fGlobal Atlantic Finance Co., senior bond, 144A, 4.40%, 10/15/29	United States		165,000		179,835
h,iKDB Life Insurance Co. Ltd., sub. note, Reg S, 7.50%, Perpetual	South Korea		400,000		405,112
h,iTongyang Life Insurance Co. Ltd., sub. note, Reg S, 5.25%, Perpetual	South Korea		400,000		417,196
					1,979,684
Internet & Direct Marketing Retail 0.1%
Expedia Group Inc.,
senior bond, 3.80%, 2/15/28	United States		95,000		101,965
f,msenior bond, 144A, 2.95%, 3/15/31	United States		80,000		79,268
fsenior note, 144A, 6.25%, 5/01/25	United States		315,000		369,120
fsenior note, 144A, 7.00%, 5/01/25	United States		160,000		176,989
fsenior note, 144A, 4.625%, 8/01/27	United States		115,000		128,119
senior note, 3.25%, 2/15/30	United States		505,000		518,360
fGo Daddy Operating Co. LLC / Gd Finance Co. Inc., senior note, 144A, 3.50%, 3/01/29	United States		170,000		169,363
					1,543,184
Marine 0.0%†
fStena International SA, senior secured bond, 144A, 5.75%, 3/01/24	Sweden		299,000		300,837

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)
Media 0.3%
AMC Networks Inc., senior note, 4.25%, 2/15/29	United States		85,000	$	83,305
fCCO Holdings LLC / CCO Holdings Capital Corp., senior bond, 144A,
4.50%, 8/15/30	United States		130,000		134,778
4.25%, 2/01/31	United States		850,000		861,687
fClear Channel Worldwide Holdings Inc., senior secured note, 144A, 5.125%, 8/15/27	United States		195,000		198,364
fCSC Holdings LLC, senior bond, 144A,
4.125%, 12/01/30	United States		305,000		306,525
4.625%, 12/01/30	United States		610,000		609,155
fDiamond Sports Group LLC / Diamond Sports Finance Co., senior note, 144A, 6.625%, 8/15/27	United States		200,000		103,250
iHeartCommunications Inc.,
senior note, 8.375%, 5/01/27	United States		760,000		806,839
senior secured note, 6.375%, 5/01/26	United States		40,000		42,399
fsenior secured note, 144A, 5.25%, 8/15/27	United States		90,000		92,402
fsenior secured note, 144A, 4.75%, 1/15/28	United States		175,000		179,015
fOutfront Media Capital LLC / Outfront Media Capital Corp., senior bond, 144A, 4.625%, 3/15/30	United States		65,000		64,412
fSirius XM Radio Inc., senior bond, 144A, 5.50%, 7/01/29	United States		15,000		16,261
					3,498,392
Metals & Mining 0.3%
hAbja Investment Co. Pte Ltd., senior note, Reg S, 4.45%, 7/24/23	India		400,000		408,311
fCSN Inova Ventures, senior note, 144A, 6.75%, 1/28/28	Brazil		414,000		447,638
fFirst Quantum Minerals Ltd., senior note, 144A,
6.875%, 3/01/26	Zambia		200,000		209,125
6.875%, 10/15/27	Zambia		620,000		673,475
Freeport-McMoRan Inc.,
senior bond, 4.625%, 8/01/30	United States		95,000		105,168
senior bond, 5.40%, 11/14/34	United States		130,000		161,281
senior bond, 5.45%, 3/15/43	United States		20,000		24,887
senior note, 4.375%, 8/01/28	United States		135,000		144,148
hIndonesia Asahan Aluminium Persero PT, senior bond, Reg S, 5.80%, 5/15/50	Indonesia		400,000		465,000
hJSW Steel Ltd., senior note, Reg S, 5.25%, 4/13/22	India		200,000		206,218
h,iMCC Holding Hong Kong Corp. Ltd., senior note, Reg S, 3.50%, Perpetual	China		200,000		201,006
fNovelis Corp., senior bond, 144A, 4.75%, 1/30/30 U.S. Steel Corp.,	United States		90,000		93,967
senior note, 6.875%, 3/01/29	United States		224,000		219,940
fsenior secured note, 144A, 12.00%, 6/01/25	United States		251,000		301,627
fVolcan Cia Minera SAA, senior note, 144A, 4.375%, 2/11/26	Peru		30,000		30,900
					3,692,691
Mortgage Real Estate Investment Trusts (REITs) 0.0%†
fMGM Growth Properties Operating Partnership LP / MGP Finance Co-Issuer Inc., senior note, 144A, 3.875%, 2/15/29	United States		135,000		136,941
Multiline Retail 0.1%
Kohl’s Corp.,
senior bond, 5.55%, 7/17/45	United States		338,000		384,868
senior note, 9.50%, 5/15/25	United States		271,000		350,240
					735,108
Oil, Gas & Consumable Fuels 1.7%
fAker BP ASA, senior bond, 144A,
3.75%, 1/15/30	Norway		350,000		370,201
4.00%, 1/15/31	Norway		150,000		160,429

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)
Oil, Gas & Consumable Fuels (continued)
Cheniere Corpus Christi Holdings LLC, senior secured note, 3.70%, 11/15/29	United States		335,000			$	363,077
Energy Transfer Operating LP, senior bond,
5.30%, 4/15/47	United States		128,000				139,321
6.25%, 4/15/49	United States		256,000				306,562
Equities Corp., senior note, 5.00%, 1/15/29	United States		10,000				10,975
fGray Oak Pipeline LLC, senior note, 144A, 3.45%, 10/15/27	United States		20,000				20,665
fHurricane Finance PLC, senior note, 144A, 8.00%, 10/15/25	United Kingdom		158,000				238,892
hIndian Oil Corp. Ltd., senior bond, Reg S, 5.75%, 8/01/23	India		200,000				219,584
Kinder Morgan Inc., senior bond, 5.05%, 2/15/46	United States		40,000				46,530
f,h Leviathan Bond Ltd., senior note, 144A, Reg S,
6.125%, 6/30/25	Israel		135,000				148,505
6.50%, 6/30/27	Israel		100,000				111,362
f Moss Creek Resources Holdings Inc., senior note, 144A,
7.50%, 1/15/26	United States		84,000				69,878
10.50%, 5/15/27	United States		455,000				403,676
Nabors Industries Inc., senior note, 5.75%, 2/01/25	United States		864,000				687,420
hONGC Videsh Vankorneft Pte Ltd., senior note, Reg S, 2.875%, 1/27/22	India		2,100,000				2,129,615
Petrobras Global Finance BV, senior bond,
6.90%, 3/19/49	Brazil		797,000				893,756
6.75%, 6/03/50	Brazil		793,000				866,749
6.85%, 6/05/15	Brazil		1,730,000				1,886,565
Petroleos Mexicanos,
hsenior bond, Reg S, 7.19%, 9/12/24	Mexico		8,080,000	n	MXN		362,355
senior bond, 7.47%, 11/12/26	Mexico		26,230,000	n	MXN		1,103,589
senior bond, 5.95%, 1/28/31	Mexico		1,204,000				1,164,419
senior bond, 6.625%, 6/15/35	Mexico		380,000				361,402
senior bond, 6.375%, 1/23/45	Mexico		1,018,000				872,935
senior bond, 6.75%, 9/21/47	Mexico		1,858,000				1,638,291
senior bond, 6.35%, 2/12/48	Mexico		1,509,000				1,286,422
senior bond, 6.95%, 1/28/60	Mexico		415,000				367,752
senior note, 3.50%, 1/30/23	Mexico		959,000				970,868
fsenior note, 144A, 6.875%, 10/16/25	Mexico		297,000				322,953
senior note, 4.50%, 1/23/26	Mexico		288,000				283,752
Sabine Pass Liquefaction LLC, senior secured note, 4.50%, 5/15/30	United States		270,000				309,386
fSaudi Arabian Oil Co., senior bond, 144A, 3.25%, 11/24/50	Saudi Arabia		285,000				268,157
Sunoco Logistics Partners Operations LP, senior bond,
5.30%, 4/01/44	United States		119,000				129,404
5.35%, 5/15/45	United States		96,000				103,580
fTalos Production Inc., secured note, 144A, 12.00%, 1/15/26	United States		518,000				490,481
fTarga Resources Partners LP / Targa Resources Partners Finance Corp., senior bond, 144A, 4.00%, 1/15/32	United States		55,000				53,980
hThai Oil PCL, senior bond, Reg S, 3.625%, 1/23/23	Thailand		200,000				208,100
YPF Sociedad Anonima,
fsenior bond, 144A, 6.95%, 7/21/27	Argentina		105,000				66,806
hsenior note, Reg S, 8.75%, 4/04/24	Argentina		1,107,000				924,068
hsenior note, Reg S, 8.50%, 3/23/25	Argentina		487,000				407,984
							20,770,446
Paper & Forest Products 0.0%†
fPaper Industries Intermediate Financing SARL, senior secured note, 144A, 6.00%, 3/01/25	Luxembourg		76,000				62,813
Suzano Austria GMBH, senior bond, 3.75%, 1/15/31	Brazil		160,000				169,192
							232,005
Personal Products 0.0%†
f,mEdgewell Personal Care Co., senior note, 144A, 4.125%, 4/01/29	United States		71,000				70,911

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)
Pharmaceuticals 0.2%
Teva Pharmaceutical Finance Netherlands II BV, senior note, 6.00%, 1/31/25	Israel		335,000	EUR	$	442,592
Teva Pharmaceutical Finance Netherlands III BV,
senior bond, 3.15%, 10/01/26	Israel		220,000			206,582
senior bond, 4.10%, 10/01/46	Israel		1,145,000			970,388
senior note, 7.125%, 1/31/25	Israel		200,000			216,874
fViatris Inc., senior bond, 144A, 4.00%, 6/22/50	United States		180,000			187,387
						2,023,823
Pipelines 0.0%†
fGalaxy Pipeline Assets Bidco Ltd., senior secured bond, 144A, 2.94%, 9/30/40	United Arab Emirates		200,000			198,135
Professional Services 0.0%†
fTrinet Group Inc., senior note, 144A, 3.50%, 3/01/29	United States		155,000			153,838
Real Estate Management & Development 0.6%
h China Evergrande Group, Reg S,
senior note, 8.25%, 3/23/22	China		430,000			413,875
senior secured note, 9.50%, 4/11/22	China		1,070,000			1,037,903
hChina Overseas Grand Oceans Finance IV Cayman Ltd., senior note, Reg S, 4.875%, 6/01/21	China		400,000			403,314
h CIFI Holdings Group Co. Ltd., senior note, Reg S,
6.875%, 4/23/21	China		200,000			201,321
5.50%, 1/23/22	China		200,000			203,400
h Country Garden Holdings Co. Ltd., senior secured note, Reg S,
4.75%, 1/17/23	China		400,000			410,400
4.75%, 9/28/23	China		200,000			205,193
h Kaisa Group Holdings Ltd., senior secured note, Reg S,
9.375%, 6/30/24	China		830,000			794,731
11.25%, 4/16/25	China		640,000			638,400
h Logan Group Co. Ltd., senior note, Reg S,
6.375%, 3/07/21	China		300,000			300,129
5.75%, 1/03/22	China		400,000			406,200
hNew Metro Global Ltd., senior note, Reg S, 6.50%, 4/23/21	China		400,000			402,624
h,iOverseas Chinese Town Asia Holdings Ltd., senior note, Reg S, 4.50%, Perpetual	China		200,000			205,360
h Shimao Group Holdings Ltd., senior secured note, Reg S,
6.375%, 10/15/21	China		400,000			411,930
4.75%, 7/03/22	China		900,000			918,440
hSunac China Holdings Ltd., senior secured note, Reg S, 5.95%, 4/26/24	China		200,000			199,501
h,jVanke Real Estate Hong Kong Co. Ltd., E, senior note, FRN, Reg S, 1.738%, (3-Month USD LIBOR + 1.55%), 5/25/23	China		200,000			200,741
hWestwood Group Holdings Ltd., E, senior note, Reg S, 4.875%, 4/19/21	China		200,000			200,830
fWeWork Cos. Inc., senior note, 144A, 7.875%, 5/01/25	United States		210,000			190,575
						7,744,867
Road & Rail 0.2%
f Uber Technologies Inc., senior note, 144A,
7.50%, 5/15/25	United States		295,000			317,509
8.00%, 11/01/26	United States		1,085,000			1,174,214
7.50%, 9/15/27	United States		450,000			492,750
6.25%, 1/15/28	United States		185,000			197,996
						2,182,469
Semiconductors & Semiconductor Equipment 0.1%
Broadcom Inc.,
senior bond, 4.15%, 11/15/30	United States		10,000			11,067
senior bond, 4.30%, 11/15/32	United States		490,000			551,960

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)
Semiconductors & Semiconductor Equipment (continued)
Broadcom Inc., (continued)
senior note, 4.75%, 4/15/29	United States		115,000		$	131,882
senior note, 5.00%, 4/15/30	United States		135,000			157,089
Micron Technology Inc., senior bond,
5.327%, 2/06/29	United States		385,000			466,029
4.663%, 2/15/30	United States		140,000			164,652
						1,482,679
Software 0.1%
fVeritas U.S. Inc. / Veritas Bermuda Ltd., senior secured note, 144A, 7.50%, 9/01/25	United States		576,000			598,435
Specialty Retail 0.2%
AutoNation Inc., senior bond, 4.75%, 6/01/30	United States		40,000			47,215
h,iBaoxin Auto Finance I Ltd., senior note, Reg S, 9.109%, Perpetual	China		200,000			144,182
fCarvana Co., senior note, 144A,
5.625%, 10/01/25	United States		407,000			424,806
5.875%, 10/01/28	United States		518,000			545,843
fGuitar Center Inc., senior secured note, 144A, 8.50%, 1/15/26	United States		754,000			794,060
bL Brands Inc., senior note, 7.50%, 6/15/29	United States		336,000			379,952
fLithia Motors Inc., senior bond, 144A, 4.375%, 1/15/31	United States		30,000			31,556
fMurphy Oil USA Inc., senior bond, 144A, 3.75%, 2/15/31	United States		40,000			40,025
						2,407,639
Thrifts & Mortgage Finance 0.1%
hIIFL Finance Ltd., E, senior secured note, Reg S, 5.875%, 4/20/23	India		200,000			199,939
hIndiabulls Housing Finance Ltd., E, senior secured note, Reg S, 6.375%, 5/28/22	India		400,000			387,991
						587,930
Trading Companies & Distributors 0.1%
Air Lease Corp.,
senior bond, 3.125%, 12/01/30	United States		360,000			361,999
ijunior sub. note, B, 4.65%, Perpetual	United States		170,000			166,175
Aircastle Ltd., senior note, 4.25%, 6/15/26	United States		310,000			329,617
hBOC Aviation Ltd., senior note, Reg S,
G, 3.00%, 5/23/22	Singapore		200,000			203,619
G, 2.75%, 12/02/23	Singapore		500,000			518,725
						1,580,135
Transportation Infrastructure 0.0%†
fAdani Ports & Special Economic Zone Ltd., senior note, 144A, 4.20%, 8/04/27	India		200,000			216,133
Wireless Telecommunication Services 0.0%†
fBharti Airtel Ltd., senior bond, 144A, 3.25%, 6/03/31	India		200,000			199,186
Total Corporate Bonds and Notes (Cost $110,424,677)						115,419,741
Corporate Bonds and Notes in Reorganization 0.5%
Auto Components 0.1%
f,oGarrett LX I Sarl / Garrett Borrowing LLC, senior note, 144A, 5.125%, 10/15/26	Switzerland		1,200,000	EUR		1,550,150
Diversified Telecommunication Services 0.2%
oFrontier Communications Corp.,
senior bond, 7.125%, 1/15/23	United States		396,000			211,612
senior bond, 7.625%, 4/15/24	United States		108,000			58,523
senior bond, 6.875%, 1/15/25	United States		217,000			115,146
senior bond, 7.875%, 1/15/27	United States		18,000			9,514

27

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country	Principal Amount*		Value
Corporate Bonds and Notes in Reorganization (continued)
Diversified Telecommunication Services (continued)
oFrontier Communications Corp., (continued)
senior bond, 9.00%, 8/15/31	United States		276,000	$	145,590
senior bond, 7.45%, 7/01/35	United States		27,000		14,426
senior note, 10.50%, 9/15/22	United States		452,000		257,923
senior note, 11.00%, 9/15/25	United States		165,000		94,359
f,oIntelsat Jackson Holdings SA, senior secured note, first lien, 144A, 9.50%, 9/30/22	Luxembourg		1,297,000		1,532,386
					2,439,479
Metals & Mining 0.0%†
h,oSamarco Mineracao SA, senior bond, Reg S, 4.125%, 11/01/22	Brazil		535,000		446,061
Road & Rail 0.2%
oThe Hertz Corp., senior note,
6.25%, 10/15/22	United States		514,000		389,355
b,f144A, 5.50%, 10/15/24	United States		1,124,000		846,512
f144A, 6.00%, 1/15/28	United States		1,340,000		1,010,863
					2,246,730
Total Corporate Bonds and Notes in Reorganization (Cost $5,316,043)					6,682,420
jSenior Floating Rate Interests 0.4%
Communications Equipment 0.1%
Riverbed Technology Inc., Term Loan B, 7.50%, (3-Month USD LIBOR + 4.50%), 12/31/26	United States		851,002		692,715
Diversified Financial Services 0.0%†
Ziggo BV, Term Loan H, 3.00%, (3-Month EURIBOR + 3.00%), 1/31/29	United States		115,000		138,786
Diversified Telecommunication Services 0.2%
Frontier Communications Corp., Term Loan DIP, 5.75%, (1- Month USD LIBOR + 4.75%), 10/08/21	United States		260,381		263,312
pIntelsat Jackson Holdings SA,
Term Loan B4, 8.75%, (1-Month USD LIBOR + 4.50%), 1/02/24	United States		2,000,000		2,040,270
Term Loan DIP, 6.50%, (1-Month USD LIBOR + 5.50%), 7/13/22	United States		91,150		92,887
					2,396,469
Hotels, Restaurants & Leisure 0.1%
Golden Nugget Inc., Term Loan B, 3.25%, (1-Month USD LIBOR + 2.50%), 10/04/23	United States		224,367		222,906
Playa Hotels & Resorts NV, Term Loan B1, 3.75%, (1-Month USD LIBOR + 2.75%), 4/29/24	United States		916,093		884,602
					1,107,508
Household Durables 0.0%†
Weber-Stephen Products LLC, Term Loan B, 4.00%, (1-Month USD LIBOR + 3.25%), 10/30/27	United States		85,000		85,467
Insurance 0.0%†
AmWINS Group Inc., Term Loan B, 3.00%, (1-Month USD LIBOR + 2.25%), 2/17/28	United States		43,027		43,096
Personal Products 0.0%†
Creed, Term Loan BE, 5.00%, (6-Month EURIBOR + 5.00%), 5/28/27	United Kingdom		341,625		410,986
Total Senior Floating Rate Interests (Cost $4,683,564)					4,875,027

28

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country	Principal Amount*			Value
Credit-Linked Notes 0.6%
fHSBC Bank PLC, (Ghana), 144A, 17.60%, 2/23/23	Ghana		2,875,000	GHS	$	500,000
fJPMorgan Chase Bank NA, (Egypt), 144A, zero cpn., 9/16/21	Egypt		11,801,000	EGP		702,731
fJPMorgan Structured Products BV, (Egypt), senior note, 144A, 13.765%, 1/08/24	Egypt		8,250,000	EGP		522,477
fStandard Chartered Bank, (Uganda), senior bond, 144A, 17.00%, 4/07/31	Uganda		2,011,700,000	UGX		582,311
d,fCitigroup Global Markets Holdings Inc., (Egypt), G, senior note, 144A, zero cpn., 4/22/21	Egypt		14,772,000	EGP		923,401
fHSBC Bank PLC, (Egypt), 144A, zero cpn., 7/15/21	Egypt		7,550,000	EGP		458,771
f,hHSBC Bank PLC, (Egypt), 144A, Reg S, zero cpn., 5/20/21	Egypt		2,375,000	EGP		147,174
d,fICBC Standard Bank PLC, (Egypt), EmTN, 144A, zero cpn., 3/04/21	Egypt		30,564,152	EGP		1,946,176
fICBC Standard Bank PLC, (Egypt), EmTN, 144A, zero cpn., 7/01/21	Egypt		31,527,794	EGP		1,929,581
Total Credit-Linked Notes (Cost $7,738,360)						7,712,622
Foreign Government and Agency Securities 3.4%
hExport-Import Bank of Korea, senior note, Reg S, 6.75%, 8/09/22	South Korea		7,100,000	INR		98,049
hGovernment of Angola, senior bond, Reg S,
8.00%, 11/26/29	Angola		454,000			443,649
9.375%, 5/08/48	Angola		380,000			374,342
9.125%, 11/26/49	Angola		1,090,000			1,053,801
Government of Argentina,
senior bond, 0.125%, 7/09/35	Argentina		1,633,480			523,530
senior bond, 0.125%, 1/09/38	Argentina		3,350,000			1,246,200
senior bond, 0.125%, 7/09/41	Argentina		2,130,000			732,720
senior bond, 0.125%, 7/09/46	Argentina		1,089,478			350,267
senior note, 1.00%, 7/09/29	Argentina		133,787			52,980
fGovernment of Bahamas, senior bond, 144A, 8.95%, 10/15/32	Bahamas		721,000			770,605
hGovernment of Bahrain, senior bond, Reg S,
7.00%, 1/26/26	Bahrain		467,000			540,553
6.25%, 1/25/51	Bahrain		935,000			900,620
Government of Colombia, B, senior bond, 7.00%, 6/30/32	Colombia		2,450,000,000	COP		706,550
Government of Egypt,
182D, zero cpn., 6/22/21	Egypt		22,500,000	EGP		1,381,774
hsenior bond, Reg S, 5.875%, 2/16/31	Egypt		580,000			560,841
fsenior bond, 144A, 5.875%, 2/16/31	Egypt		487,000			470,913
hsenior bond, Reg S, 8.70%, 3/01/49	Egypt		822,000			869,865
fsenior bond, 144A, 8.875%, 5/29/50	Egypt		1,426,000			1,526,547
hsenior bond, Reg S, 8.875%, 5/29/50	Egypt		489,000			523,479
fsenior bond, 144A, 8.15%, 11/20/59	Egypt		215,000			214,489
hsenior bond, Reg S, 7.50%, 2/16/61	Egypt		3,010,000			2,838,159
hGovernment of Gabon, senior bond, Reg S, 6.625%, 2/06/31	Gabon		767,000			752,900
Government of Indonesia, senior bond, 8.375%, 3/15/34	Indonesia		42,300,000,000	IDR		3,289,063
Government of Italy, senior note, 2.375%, 10/17/24	Italy		350,000			366,684
fGovernment of Jordan, 144A,
senior bond, 5.85%, 7/07/30	Jordan		386,000			412,283
senior note, 4.95%, 7/07/25	Jordan		578,000			611,070
Government of Mexico, senior bond, 3.771%, 5/24/61	Mexico		455,000			401,144
hGovernment of Nigeria, senior note, Reg S, 7.625%, 11/21/25	Nigeria		1,508,000			1,730,813
fGovernment of Oman, senior bond, 144A, 7.00%, 1/25/51	Oman		286,000			283,688
hGovernment of Paraguay, senior bond, Reg S, 4.625%, 1/25/23	Paraguay		2,414,000			2,555,243
Government of Russia,
hsenior bond, Reg S, 5.25%, 6/23/47	Russia		800,000			997,456

29

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, (continued)
senior note, 6227, 7.40%, 7/17/24	Russia		143,905,000	RUB	$	2,022,494
senior note, 6229, 7.15%, 11/12/25	Russia		101,696,000	RUB		1,418,058
senior note, 6232, 6.00%, 10/06/27	Russia		155,262,000	RUB		2,032,723
Government of Saudi Arabia, senior bond,
f144A, 2.75%, 2/03/32	Saudi Arabia		910,000			928,860
f144A, 3.75%, 1/21/55	Saudi Arabia		354,000			350,518
hReg S, 2.75%, 2/03/32	Saudi Arabia		302,000			308,259
Government of South Africa, senior bond,
8.00%, 1/31/30	South Africa		23,992,423	ZAR		1,483,451
8.25%, 3/31/32	South Africa		20,977,596	ZAR		1,246,183
8.50%, 1/31/37	South Africa		27,525,000	ZAR		1,520,091
Government of Turkey, senior note, 6.375%, 10/14/25	Turkey		875,000			939,531
hGovernment of Ukraine, senior bond, Reg S 5/31/40	Ukraine		2,670,000			2,936,111
International Finance Corp., senior note, 5.85%, 11/25/22	Supranationalq		8,120,000	INR		111,360
j,k Provincia de Buenos Aires, FRN,
f,h144A, Reg S, 37.865%, (ARS BADLAR + 3.75%), 4/12/25	Argentina		3,670,000	ARS		20,049
37.932%, (ARS BADLAR + 3.83%), 5/31/22	Argentina		18,295,000	ARS		99,312
Total Foreign Government and Agency Securities (Cost $44,717,874)						42,997,277
Foreign Government and Agency Securities in Reorganization 0.1%
oGovernment of Lebanon, G, senior bond, 6.375%, 3/09/20	Lebanon		1,100,000			153,472
h,oGovernment of Zambia, Reg S, 5.375%, 9/20/22	Zambia		1,260,000			712,495
Total Foreign Government and Agency Securities in Reorganization (Cost $817,447)						865,967
U.S. Government and Agency Securities (Cost $12,933) 0.0%†
U.S. Treasury Note,
0.25%, 10/31/25	United States		7,000			6,870
0.625%, 11/30/27	United States		5,000			4,852
1.125%, 2/15/31	United States		1,000			975
Total U.S. Government and Agency Securities (Cost $12,933)						12,697
Asset-Backed Securities and Commercial Mortgage-Backed Securities 7.6%
Diversified Financial Services 5.7%
fAccelerated Assets LLC, 2018-1, B, 144A, 4.51%, 12/02/33	United States		55,629			57,644
rAccredited Mortgage Loan Trust, 2006-2, M2, FRN, 0.408%, (1-Month USD LIBOR + 0.29%), 9/25/36	United States		2,790,000			2,291,184
rACE Securities Corp. Home Equity Loan Trust, 2003-FM1, M1, FRN, 1.408%, (1-Month USD LIBOR + 1.29%), 11/25/32	United States		1,512,367			1,529,931
fAdams Outdoor Advertising LP, 2018-1, A, 144A, 4.81%, 11/15/48	United States		180,760			195,021
f,rAGL CLO 3 Ltd., 2020-3A, C, 144A, FRN, 2.391%, (3-Month USD LIBOR + 2.15%), 1/15/33	United States		285,000			280,995
fAIM Aviation Finance Ltd., 2015-1A, B1, 144A, 5.072%, 2/15/40	United States		170,624			63,555
f,rAllegro CLO VI Ltd., 2018-2A, D, 144A, FRN, 2.973%, (3-Month USD LIBOR + 2.75%), 1/17/31	United States		250,000			241,400
fAmerican Credit Acceptance Receivables Trust, 144A, 2020-3, D, 2.40%, 6/15/26	United States		200,000			207,473

30

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)
fAmerican Credit Acceptance Receivables Trust, 144A, (continued)
2020-4, D, 1.77%, 12/14/26	United States		185,000	$	188,303
AmeriCredit Automobile Receivables Trust,
2020-2, D, 2.13%, 3/18/26	United States		110,000		113,792
2020-3, D, 1.49%, 9/18/26	United States		305,000		310,167
f,rAnchorage Capital CLO 9 Ltd., 2019-9A, DR, 144A, FRN, 4.241%, (3-Month USD LIBOR + 4.00%), 7/15/32	United States		450,000		451,112
fArbys Funding LLC, 2020-1A, A2, 144A, 3.237%, 7/30/50	United States		99,500		101,864
rArgent Securities Inc., 2004-W3, M4, FRN, 3.703%, (1-Month USD LIBOR + 4.58%), 2/25/34	United States		258,604		269,937
fAscentium Equipment Receivables Trust, 2017-2A, C, 144A, 2.87%, 8/10/22	United States		25,000		25,353
fAvis Budget Rental Car Funding AESOP LLC, 144A,
2020-2A, B, 2.96%, 2/20/27	United States		100,000		106,270
2020-2A, C, 4.25%, 2/20/27	United States		100,000		109,569
f,s,tBANK, 2019-BN21, XF, 144A, IO, FRN, 0.931%, 10/17/52	United States		11,400,000		540,884
f,rBarings CLO Ltd., 2019-4A, C, 144A, FRN, 3.041%, (3-Month USD LIBOR + 2.80%), 1/15/33	United States		400,000		402,214
fBarings Euro CLO BV, 2014-1, 144A, 1.90%, 7/15/31	Netherlands		500,000		596,433
f,rBattalion CLO XIV Ltd., 2019-14A, E, 144A, FRN, 6.904%, (3- Month USD LIBOR + 6.68%), 4/20/32	United States		250,000		250,904
fBayview Opportunity Master Fund V Trust, 2020-RN3, A1, 144A, 3.228%, 9/25/35	United States		102,178		103,588
sBear Stearns ALT-A Trust, 2006-3, 21A1, FRN, 3.087%, 5/25/36	United States		1,263,066		1,087,404
fBlackbird Capital Aircraft Lease Securitization Ltd., 2016-1A, A, 144A, 4.213%, 12/16/41	United States		189,938		191,038
f,rBX Commercial Mortgage Trust, 2019-XL, E, 144A, FRN, 1.912%, (1-Month USD LIBOR + 1.80%), 10/15/36	United States		1,234,087		1,237,587
California Republic Auto Receivables Trust, 2018-1, D, 4.33%, 4/15/25	United States		115,000		119,622
f,rCanyon Capital CLO, 2019-2A, E, 144A, FRN, 7.391%, (3-Month USD LIBOR + 7.15%), 10/15/32	United States		250,000		250,905
f,rCarlyle US CLO Ltd., 2017-4A, C, 144A, FRN, 3.041%, (3-Month USD LIBOR + 2.80%), 1/15/30	United States		250,000		241,837
Carmax Auto Owner Trust, 2018-4, D, 4.15%, 4/15/25	United States		60,000		63,530
fCastlelake Aircraft Structured Trust, 2021-1A, A, 144A, 3.474%, 1/15/46	United States		447,503		455,532
f,rCatamaran CLO Ltd., 144A, FRN,
2014-2, C, 3.723%, (3-Month USD LIBOR + 3.50%), 10/18/26	United States		2,030,000		2,022,423
2017-1A, CR, 2.013%, (3-Month USD LIBOR + 1.80%), 1/27/28	United States		250,000		245,905
f,m,rCHCP Ltd., 2021-FL1, C, 144A, FRN, 2.25%, (1-Month USD LIBOR + 2.10%), 2/15/38	United States		1,000,000		1,003,500
fChesapeake Funding II LLC, 144A,
r2017-4A, A2, FRN, 0.417%, (1-Month USD LIBOR + 0.31%), 11/15/29	Canada		26,124		26,161
2018-1A, D, 3.92%, 4/15/30	Canada		115,000		116,784
CHL Mortgage Pass-Through Trust,
r2003-15, 1A1, FRN, 0.618%, (1-Month USD LIBOR + 0.50%), 6/25/42	United States		99,553		98,043
2004-4, M, 5.50%, 5/25/34	United States		1,068,478		744,824
2006-21, A8, 5.75%, 2/25/37	United States		399,838		295,194
s2006-HYB4, 3B, FRN, 3.934%, 6/20/36	United States		1,868,086		1,616,475
fCLI Funding VIII LLC, 2021-1A, A, 144A, 1.64%, 2/18/46	United States		400,000		397,043

31

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)
f,rConnecticut Avenue Securities Trust, 2020-R01, 1M2, 144A, FRN, 2.168%, (1-Month USD LIBOR + 2.05%), 1/25/40	United States		85,000		$	85,450
fCoreVest American Finance Trust, 144A,
2019-2, B, 3.424%, 6/15/52	United States		100,000			107,142
2020-4, C, 2.25%, 12/15/52	United States		100,000			98,094
f,sCSMC Trust, 144A, FRN,
2019-RP10, A1, 3.072%, 12/26/59	United States		154,786			156,049
2020-RPL3, A1, 2.691%, 3/25/60	United States		128,223			130,148
fDB Master Finance LLC, 2019-1A, A23, 144A, 4.352%, 5/20/49	United States		49,250			53,301
f,sDBUBS Mortgage Trust, 2017-BRBK, D, 144A, FRN, 3.53%, 10/10/34	United States		100,000			105,269
fDomino’s Pizza Master Issuer LLC, 144A,
2017-1A, A23, 4.118%, 7/25/47	United States		164,900			178,115
2018-1A, A2II, 4.328%, 7/25/48	United States		78,200			84,321
2019-1A, A2, 3.668%, 10/25/49	United States		168,300			176,358
Drive Auto Receivables Trust, 2018-3, D, 4.30%, 9/16/24	United States		25,000			25,780
fDT Auto Owner Trust, 2020-3A, D, 144A, 1.84%, 6/15/26	United States		80,000			81,548
fEducation Funding Trust Trust, 2020-A, A, 144A, 2.79%, 7/25/41	United States		147,458			152,006
Exeter Automobile Receivables Trust,
f2020-2A, D, 144A, 4.73%, 4/15/26	United States		90,000			97,114
2020-3A, C, 1.32%, 7/15/25	United States		145,000			147,070
fFairstone Financial Issuance Trust I, 2019-1A, A, 144A, 3.948%, 3/21/33	Canada		150,000	CAD		118,039
sFannie Mae Grantor Trust, 2004-T5, AB7, FRN, 0.648%, 5/28/35	United States		345,572			334,249
fFirst Investors Auto Owner Trust, 2019-2A, D, 144A, 2.80%, 12/15/25	United States		40,000			41,315
fFirstKey Homes Trust, 144A,
2020-SFR1, F1, 3.638%, 9/17/25	United States		225,000			232,892
2020-SFR2, F1, 3.017%, 10/19/37	United States		320,000			326,046
fFlagship Credit Auto Trust, 2019-4, D, 144A, 3.12%, 1/15/26	United States		90,000			95,031
f,rGalaxy XXVI CLO Ltd., 2018-26A, E, 144A, FRN, 6.032%, (3- Month USD LIBOR + 5.85%), 11/22/31	United States		260,000			254,671
fGLS Auto Receivables Trust, 144A,
2018-3A, B, 3.78%, 8/15/23	United States		51,971			52,697
2020-1A, C, 2.72%, 11/17/25	United States		150,000			155,295
2020-3A, C, 1.92%, 5/15/25	United States		330,000			338,695
f,rGPMT Ltd., 144A, FRN,
2018-FL1, C, 2.261%, (1-Month USD LIBOR + 2.15%), 11/19/35	United States		1,400,000			1,381,324
2019-FL2, D, 3.061%, (1-Month USD LIBOR + 2.95%), 2/22/36	United States		800,000			783,887
f,rGrand Avenue CRE, 2019-FL1, B, 144A, FRN, 1.962%, (1- Month USD LIBOR + 1.85%), 6/15/37	United States		1,200,000			1,200,734
f,rGrand Avenue CRE Ltd., 2020-FL2, C, 144A, FRN, 3.732%, (1- Month USD LIBOR + 3.62%), 3/15/35	United States		1,310,000			1,317,856
h,rGreat Hall Mortgages No 1 PLC, 2006-1, DA, FRN, Reg S, 0.857%, (3-Month GBP LIBOR + 0.82%), 6/18/38	United Kingdom		1,330,000	GBP		1,712,779
rGSAMP Trust, 2006-NC1, M2, FRN, 0.688%, (1-Month USD LIBOR + 0.57%), 2/25/36	United States		2,500,957			2,671,172
f,rGSRPM Mortgage Loan Trust, 2002-1A, M1, 144A, FRN, 2.068%, (1-Month USD LIBOR + 1.95%), 11/25/31	United States		972,302			979,342
f,rHalcyon Loan Advisors Funding Ltd., 2014-1A, D, 144A, FRN, 3.723%, (3-Month USD LIBOR + 3.50%), 4/18/26	United States		1,490,000			1,426,534
fHardee’s Funding LLC, 2020-1A, A2, 144A, 3.981%, 12/20/50	United States		100,000			104,356
f,rHayfin US XII Ltd., 2019-2A, E, 144A, FRN, 7.124%, (3-Month USD LIBOR + 6.90%), 7/20/32	United States		70,000			69,934

32

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)
fHorizon Aircraft Finance I Ltd., 2018-1, A, 144A, 4.458%, 12/15/38	United States		231,428	$	234,420
fHPEFS Equipment Trust, 2020-2A, D, 144A, 2.79%, 7/22/30	United States		325,000		337,909
f,rJFIN CLO Ltd., 2017-1A, DR, 144A, FRN, 2.867%, (3-Month USD LIBOR + 2.65%), 3/15/26	United States		1,530,000		1,480,378
fKestrel Aircraft Funding Ltd., 2018-1A, A, 144A, 4.25%, 12/15/38	United States		210,238		210,123
fLegacy Mortgage Asset Trust,
2018-GS2, A1, 144A, 4.00%, 4/25/58	United States		200,036		201,272
2019-GS3, A1, 144A, 3.75%, 4/25/59	United States		104,652		105,787
s2019-GS4, A1, 144A, FRN, 3.438%, 5/25/59	United States		166,019		167,420
2020-GS1, A1, 144A, 2.882%, 10/25/59	United States		249,675		252,853
f,rLoanCore Issuer Ltd., 2018-CRE1, D, 144A, FRN, 3.062%, (1- Month USD LIBOR + 2.95%), 5/15/28	United States		1,600,000		1,604,469
fMarlette Funding Trust, 2019-4A, B, 144A, 2.95%, 12/17/29	United States		290,000		296,988
rMerrill Lynch Mortgage Investors Trust Series, 2007-MLN1, A2D, FRN, 0.438%, (1-Month USD LIBOR + 0.32%), 3/25/37	United States		1,019,846		951,098
f,sMill City Mortgage Loan Trust, 2021-NMR1, M3, 144A, FRN, 2.50%, 11/25/60	United States		100,000		96,875
Morgan Stanley Mortgage Loan Trust,
s2004-11AR, 2A, FRN, 2.63%, 1/25/35	United States		371,756		368,985
2006-15XS, A3, 5.988%, 11/25/36	United States		2,262,011		839,419
rMortgageIT Mortgage Loan Trust, 2006-1, 2A1B, FRN, 0.678%, (1-Month USD LIBOR + 0.56%), 4/25/36	United States		740,589		254,386
f,rMountain Hawk III CLO Ltd., 2014-3A, D, 144A, FRN, 3.723%, (3-Month USD LIBOR + 3.50%), 4/18/25	United States		2,013,500		1,993,686
f,rMountain View CLO Ltd., 2018-1A, DRR, 144A, FRN, 3.891%, (3-Month USD LIBOR + 3.65%), 10/15/26	United States		2,000,000		1,985,232
fMVW LLC, 2020-1A, C, 144A, 4.21%, 10/20/37	United States		266,591		280,911
fMVW Owner Trust, 2019-1A, C, 144A, 3.33%, 11/20/36	United States		76,955		78,153
fNavient Private Education Refi Loan Trust, 144A,
2019-FA, B, 3.12%, 8/15/68	United States		210,000		215,438
2019-GA, B, 3.08%, 10/15/68	United States		140,000		143,582
f,rNeuberger Berman CLO XIV Ltd., 2020-14A, CR2, 144A, FRN, 2.119%, (3-Month USD LIBOR + 1.90%), 1/28/30	United States		410,000		408,493
f,rNeuberger Berman Loan Advisers CLO 30 Ltd., 2019-30A, E, 144A, FRN, 6.974%, (3-Month USD LIBOR + 6.75%), 1/20/31	United States		565,000		566,409
rNomura Home Equity Loan Inc. Home Equity Loan Trust Series, 2006-WF1, M4, FRN, 0.673%, (1-Month USD LIBOR + 0.56%), 3/25/36	United States		1,308,803		1,276,559
f,rOctagon Investment Partners XXII Ltd., 2018-1A, CRR, 144A, FRN, 2.122%, (3-Month USD LIBOR + 1.90%), 1/22/30	United States		250,000		246,547
f,rOHA Credit Funding 4 Ltd., 2019-4A, E, 144A, FRN, 6.322%, (3- Month USD LIBOR + 6.10%), 10/22/32	United States		320,000		314,119
fOneMain Financial Issuance Trust, 144A,
2015-3A, B, 4.16%, 11/20/28	United States		155,000		155,424
2020-2A, C, 2.76%, 9/14/35	United States		100,000		104,987
f,rOZLM XXIII Ltd., 2019-23A, E, 144A, FRN, 7.041%, (3-Month USD LIBOR + 6.80%), 4/15/32	United States		250,000		251,902
f,rPikes Peak CLO 3, 2019-3A, E, 144A, FRN, 7.078%, (3-Month USD LIBOR + 6.86%), 4/25/30	United States		250,000		248,910
f,rPikes Peak CLO 4, 2019-4A, E, 144A, FRN, 7.011%, (3-Month USD LIBOR + 6.77%), 7/15/32	United States		250,000		251,342
fPlanet Fitness Master Issuer LLC, 2019-1A, A2, 144A, 3.858%, 12/05/49	United States		148,500		142,042
fPrestige Auto Receivables Trust, 2019-1A, E, 144A, 3.90%, 5/15/26	United States		100,000		103,454

33

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)
fProgress Residential Trust, 144A,
2018-SFR3, E, 4.873%, 10/17/35	United States		100,000	$	102,370
2019-SFR1, E, 4.466%, 8/17/35	United States		115,000		118,409
2019-SFR2, E, 4.142%, 5/17/36	United States		175,000		180,142
2020-SFR3, F, 2.796%, 10/17/27	United States		100,000		101,014
RALI Series Trust, 2007-QS2, AP, 1/25/37	United States		180,788		122,492
f,sRBSSP Resecuritization Trust, 2009-12, 17A2, 144A, FRN, 2.491%, 10/25/35	United States		385,098		380,280
fRepublic Finance Issuance Trust, 2019-A, A, 144A, 3.43%, 11/22/27	United States		240,000		244,059
Santander Drive Auto Receivables Trust,
2020-1, D, 5.35%, 3/15/28	United States		240,000		266,332
2020-2, D, 2.22%, 9/15/26	United States		100,000		103,011
2020-4, D, 1.48%, 1/15/27	United States		305,000		309,673
rSaxon Asset Securities Trust, 2005-4, M4, FRN, 1.048%, (1- Month USD LIBOR + 0.93%), 11/25/37	United States		2,547,599		1,909,012
fSCF Equipment Leasing LLC, 2021-1A, E, 144A, 3.56%, 8/20/32	United States		100,000		99,200
f,sSecurity National Mortgage Loan Trust, 2004-1A, AF3, 144A, FRN, 6.42%, 6/25/32	United States		1,866,134		1,634,598
f,rSilvermore CLO Ltd., 2014-1A, C, 144A, FRN, 3.644%, (3-Month USD LIBOR + 3.45%), 5/15/26	United States		1,250,000		1,231,376
fS-Jets Ltd., 2017-1, A, 144A, 3.967%, 8/15/42	Bermuda		410,580		415,103
rSLM Private Credit Student Loan Trust, FRN,
2003-B, A3, 2.806%, (28-Day T-Bill + 1.00%), 3/15/33	United States		200,000		191,972
2003-B, A4, 1.609%, (28-Day T-Bill + 1.00%), 3/15/33	United States		50,000		47,899
f,rSMB Private Education Loan Trust, 2017-B, A2B, 144A, FRN, 0.862%, (1-Month USD LIBOR + 0.75%), 10/15/35	United States		65,476		65,813
fSoFi Consumer Loan Program Trust, 144A,
2018-1, B, 3.65%, 2/25/27	United States		100,000		102,086
2019-4, C, 2.84%, 8/25/28	United States		130,000		133,564
fSoFi Professional Loan Program LLC, 2016-A, B, 144A, 3.57%, 1/26/38	United States		39,120		39,869
rSoundview Home Loan Trust, 2006-WF2, M3, FRN, 0.793%, (1- Month USD LIBOR + 0.68%), 12/25/36	United States		1,745,376		1,933,023
fSpringCastle America Funding LLC, 2020-AA, A, 144A, 1.97%, 9/25/37	United States		261,099		264,412
fSprite Ltd., 2017-1, B, 144A, 5.75%, 12/15/37	United States		164,302		152,508
fStack Infrastructure Issuer LLC, 2019-1A, A2, 144A, 4.54%, 2/25/44	United States		122,500		130,662
f,rStaniford Street CLO Ltd., 2014-1A, D, 144A, FRN, 3.717%, (3- Month USD LIBOR + 3.50%), 6/15/25	United States		1,650,000		1,642,342
f,rStarwood Retail Property Trust, 2014-STAR, E, 144A, FRN, 4.512%, (1-Month USD LIBOR + 4.40%), 11/15/27	United States		200,000		4,375
fTextainer Marine Containers VII Ltd., 2021-1A, A, 144A, 1.68%, 2/20/46	Bermuda		190,000		189,291
f,rTICP CLO II-2 Ltd., 2018-IIA, C, 144A, FRN, 3.174%, (3-Month USD LIBOR + 2.95%), 4/20/28	United States		1,020,000		1,014,946
fTIF Funding II LLC, 2021-1A, A, 144A, 1.65%, 2/20/46	United States		293,095		291,855
fTowd Point Mortgage Trust, 144A, FRN,s2015-2, 1A13, 2.50%, 11/25/60	United States		20,397		20,440
s2018-5, M1, 3.25%, 7/25/58	United States		100,000		105,207
s2019-2, M1, 3.75%, 12/25/58	United States		200,000		214,767
r2019-HE1, M2, 1.868%, (1-Month USD LIBOR + 1.75%), 4/25/48	United States		1,481,000		1,493,377
f,rTPG Real Estate Finance Issuer Ltd., 2018-FL2, C, 144A, FRN, 2.408%, (1-Month USD LIBOR + 2.30%), 11/15/37	United States		1,500,000		1,502,854

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)
fTricon American Homes Trust, 2020-SFR2, E1, 144A, 2.73%, 11/17/39	United States		100,000	$	100,369
f,rTRTX Issuer Ltd., 2019-FL3, B, 144A, FRN, 1.858%, (1-Month USD LIBOR + 1.75%), 10/15/34	United States		1,300,000		1,303,249
f,rVERDE CLO Ltd., 2019-1A, E, 144A, FRN, 7.141%, (3-Month USD LIBOR + 6.90%), 4/15/32	United States		340,000		340,007
f,sWaMu Commercial Mortgage Securities Trust, 2007-SL2, G, 144A, FRN, 2.766%, 12/27/49	United States		2,866,082		2,335,778
sWells Fargo Mortgage Backed Securities Trust, 2007-AR6, A2, FRN, 3.015%, 10/25/37	United States		193,504		190,467
fWendy’s Funding LLC, 2018-1A, A2II, 144A, 3.884%, 3/15/48	United States		213,400		223,142
fWestlake Automobile Receivables Trust, 2020-3A, D, 144A, 1.65%, 2/17/26	United States		120,000		122,003
f,rYork CLO-6 Ltd., 2019-1A, D, 144A, FRN, 4.222%, (3-Month USD LIBOR + 4.00%), 7/22/32	United States		455,000		458,148
					71,927,081
Equity Real Estate Investment Trusts (REITs) 0.1%
fAmerican Homes 4 Rent, 144A,
2014-SFR2, E, 6.231%, 10/17/36	United States		250,000		276,100
2014-SFR3, E, 6.418%, 12/17/36	United States		100,000		111,431
2015-SFR1, E, 5.639%, 4/17/52	United States		210,000		229,251
fDiamond Resorts Owner Trust, 144A,
2017-1A, C, 6.07%, 10/22/29	United States		23,053		23,580
2018-1, C, 4.53%, 1/21/31	United States		59,862		61,853
2019-1A, B, 3.53%, 2/20/32	United States		59,730		61,523
					763,738
Mortgage Real Estate Investment Trusts (REITs) 1.8%
rAmerican Home Mortgage Investment Trust, 2006-1, 11A1, FRN, 0.398%, (1-Month USD LIBOR + 0.28%), 3/25/46	United States		175,891		164,300
Banc of America Alternative Loan Trust, 2003-8, 1CB1, 5.50%, 10/25/33	United States		4,787		4,816
Banc of America Funding Trust,
2003-1, B2, 6.00%, 5/20/33	United States		205,405		148,354
2007-4, 5A1, 5.50%, 11/25/34	United States		52,367		52,541
sBanc of America Mortgage Trust, 2005-A, 2A1, FRN, 3.117%, 2/25/35	United States		3,922		4,065
f,rBBCMS Mortgage Trust, 2020-BID, B, 144A, FRN, 2.652%, (1- Month USD LIBOR + 2.54%), 10/15/37	United States		210,000		212,266
f,rBCAP LLC Trust, 2012-RR4, 9A7, 144A, FRN, 0.21%, (1-Month USD LIBOR + 0.08%), 11/26/36	United States		473,313		468,617
sBear Stearns ARM Trust, FRN,
2007-1, 4A1, 2.988%, 2/25/47	United States		1,141,334		1,011,573
2007-4, 12A1, 3.925%, 5/25/37	United States		1,656,549		1,634,877
f,rBXMT Ltd., 2017-FL1, C, 144A, FRN, 2.058%, (1-Month USD LIBOR + 1.95%), 6/15/35	United States		2,700,000		2,702,962
fCitigroup Mortgage Loan Trust, 144A,s2009-10, 6A2, FRN, 2.699%, 9/25/34	United States		27,771		28,994
s2018-A, A1, FRN, 4.00%, 1/25/68	United States		84,889		85,363
s2019-B, A1, FRN, 3.258%, 4/25/66	United States		97,738		98,779
2019-E, A1, 3.228%, 11/25/70	United States		230,552		232,127
Countrywide Alternative Loan Trust,
2003-22CB, 1A1, 5.75%, 12/25/33	United States		33,230		34,648
2004-16CB, 1A1, 5.50%, 7/25/34	United States		18,550		19,190
2004-16CB, 3A1, 5.50%, 8/25/34	United States		19,845		20,555
2004-3T1, M, 6.00%, 5/25/34	United States		230,318		180,281

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)
Mortgage Real Estate Investment Trusts (REITs) (continued)
Countrywide Alternative Loan Trust, (continued)
2004-J10, 2CB1, 6.00%, 9/25/34	United States		56,892		$	59,796
2005-J1, 2A1, 5.50%, 2/25/25	United States		2,645			2,685
2005-J14, A3, 5.50%, 12/25/35	United States		336,550			288,038
2006-6CB, 2A11, 5.50%, 5/25/36	United States		304,116			184,666
rCountrywide Asset-Backed Certificates, 2005-15, M3, FRN, 0.638%, (1-Month USD LIBOR + 0.52%), 4/25/36	United States		2,340,000			2,194,068
sCountrywide Home Loans Mortgage Pass-Through Trust, 2004- HYB4, 2A1, FRN, 2.852%, 9/20/34	United States		44,239			44,575
f,rCredit Suisse Commercial Mortgage Securities Corp., 2019- SKLZ, D, 144A, FRN, 3.712%, (1-Month USD LIBOR + 3.60%), 1/15/34	United States		105,000			103,783
Credit Suisse First Boston Mortgage Securities Corp.,
2002-10, 1B, 7.50%, 5/25/32	United States		151,481			137,065
2003-27, 4A4, 5.75%, 11/25/33	United States		16,307			16,810
2005-8, 1A3, 5.25%, 9/25/35	United States		105,389			103,113
fCSMC OA LLC, 144A,
2014-USA, A2, 3.953%, 9/15/37	United States		150,000			159,018
2014-USA, E, 4.373%, 9/15/37	United States		400,000			338,254
fCSMC Trust, 2021-RPL1, A2, 144A, 3.937%, 9/27/60	United States		155,000			154,751
rDSLA Mortgage Loan Trust, 2005-AR5, 2A1A, FRN, 0.441%, (1- Month USD LIBOR + 0.33%), 9/19/45	United States		35,829			27,816
h,rDukinfield II PLC, 2016-2, A, FRN, Reg S, 1.284%, (3-Month GBP LIBOR + 1.25%), 12/20/52	United Kingdom		139,305	GBP		194,595
rFHLMC Structured Agency Credit Risk Debt Notes, 2015-DNA1, M3, FRN, 3.418%, (1-Month USD LIBOR + 3.30%), 10/25/27	United States		190,482			194,950
fGcat LLC, 2020-4, A1, 144A, 2.611%, 12/25/25	United States		295,101			297,380
sGS Mortgage Securities Trust, FRN,
f2011-GC5, C, 144A, 5.347%, 8/10/44	United States		100,000			84,832
f2011-GC5, D, 144A, 5.347%, 8/10/44	United States		195,000			122,063
2014-GC18, B, 4.885%, 1/10/47	United States		100,000			100,523
GSR Mortgage Loan Trust,
2005-4F, 6A1, 6.50%, 2/25/35	United States		8,255			8,430
s2005-AR6, 4A5, FRN, 2.975%, 9/25/35	United States		34,111			34,807
rHarborview Mortgage Loan Trust, 2004-11, 2A2A, FRN, 0.751%, (1-Month USD LIBOR + 0.64%), 1/19/35	United States		83,838			80,450
IndyMac INDX Mortgage Loan Trust, FRN,
r2004-AR7, A5, 1.338%, (1-Month USD LIBOR + 1.22%), 9/25/34	United States		41,090			39,655
s2005-AR11, A3, 2.995%, 8/25/35	United States		44,705			40,761
r2006-AR2, 2A1, 0.538%, (1-Month USD LIBOR + 0.42%), 2/25/46	United States		197,387			162,825
s2006-AR3, 3A1A, 3.212%, 4/25/36	United States		2,106,208			2,201,965
sJPMorgan Alternative Loan Trust, 2006-A2, 2A2, FRN, 3.318%, 5/25/36	United States		1,584,255			1,268,722
f,sJPMorgan Chase Commercial Mortgage Securities Trust, 144A, FRN,
2012-C8, C, 4.622%, 10/15/45	United States		100,000			92,453
2012-LC9, C, 4.419%, 12/15/47	United States		100,000			102,550
2012-LC9, D, 4.419%, 12/15/47	United States		120,000			117,543
JPMorgan Mortgage Trust,
2004-S1, 2A1, 6.00%, 9/25/34	United States		78,903			83,695
s2007-A1, 4A2, FRN, 2.964%, 7/25/35	United States		1,741			1,759
rLehman XS Trust Series, 2006-2N, 1A1, FRN, 0.638%, (1-Month USD LIBOR + 0.52%), 2/25/46	United States		34,155			31,510

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)
Mortgage Real Estate Investment Trusts (REITs) (continued)
MASTR Alternative Loan Trust,
2004-2, 8A4, 5.50%, 3/25/34	United States		134,630	$	138,437
2004-8, 2A1, 6.00%, 9/25/34	United States		33,603		34,846
sMerrill Lynch Mortgage Investors MLCC, 2006-2, 2A, FRN, 2.44%, 5/25/36	United States		2,145		2,187
sMorgan Stanley Bank of America Merrill Lynch Trust, 2013-C11, B, FRN, 4.352%, 8/15/46	United States		155,000		111,730
f,sMorgan Stanley Capital I Trust, 144A, FRN,
2011-C2, B, 5.20%, 6/15/44	United States		100,000		101,263
2011-C2, E, 5.398%, 6/15/44	United States		150,000		97,461
f,sMSBAM Commercial Mortgage Securities Trust, 2012-CKSV, C, 144A, FRN, 4.283%, 10/15/30	United States		340,000		241,942
fPRPM LLC, 144A,
2019-4A, A1, 3.351%, 11/25/24	United States		93,844		94,402
2020-3, A2, 5.071%, 9/25/25	United States		100,000		100,701
2020-5, A2, 5.437%, 11/25/25	United States		305,000		306,671
fRCO V Mortgage LLC, 2020-1, A1, 144A, 3.105%, 9/25/25	United States		102,262		103,281
sRFMSI Trust, 2005-SA1, 1A1, FRN, 4.054%, 3/25/35	United States		99,544		66,679
rSecuritized Asset Backed Receivables LLC Trust, 2006-WM4, A2C, FRN, 0.278%, (1-Month USD LIBOR + 0.16%), 11/25/36	United States		3,636,015		1,499,640
hStratton Mortgage Funding PLC, 2019-1, Reg S, 3.554%, 5/25/51	United Kingdom		1,360,000		1,898,009
rStructured ARM Loan Trust, 2005-14, A1, FRN, 0.428%, (1- Month USD LIBOR + 0.31%), 7/25/35	United States		219,925		164,614
fVOLT LXXXVII LLC, 2020-NPL3, A1A, 144A, 2.981%, 2/25/50	United States		131,784		132,442
fVOLT XCII LLC, 144A,
2021-NPL1, A1, 1.893%, 2/27/51	United States		113,163		113,403
2021-NPL2, A1, 1.893%, 3/27/51	United States		290,629		290,903
fVOLT XCIV LLC, 2021-NPL3, A2, 144A, 4.949%, 2/27/51	United States		215,000		214,768
Wells Fargo Commercial Mortgage Trust,
2014-LC16, C, 4.458%, 8/15/50	United States		215,000		172,263
s2016-C36, B, FRN, 3.671%, 11/15/59	United States		100,000		99,098
s2016-C36, C, FRN, 4.183%, 11/15/59	United States		100,000		87,793
f,s2019-JWDR, C, 144A, FRN, 3.038%, 9/15/31	United States		290,000		292,414
WFRBS Commercial Mortgage Trust,
f,s2011-C3, D, 144A, FRN, 5.575%, 3/15/44	United States		260,000		140,103
f,s2011-C4, E, 144A, FRN, 5.193%, 6/15/44	United States		120,000		74,528
s2012-C10, C, FRN, 4.362%, 12/15/45	United States		320,000		286,505
f,s2012-C6, D, 144A, FRN, 5.579%, 4/15/45	United States		150,000		152,505
s2012-C7, C, FRN, 4.804%, 6/15/45	United States		25,000		19,772
d,f,s2012-C7, D, 144A, FRN, 4.804%, 6/15/45	United States		130,000		29,372
f,s2012-C7, E, 144A, FRN, 4.804%, 6/15/45	United States		75,000		13,789
2014-C20, B, 4.378%, 5/15/47	United States		100,000		104,101
s2014-C24, B, FRN, 4.204%, 11/15/47	United States		100,000		100,795
					23,466,631
Total Asset-Backed Securities and Commercial Mortgage- Backed Securities (Cost $94,790,047)					96,157,450
Municipal Bonds in Reorganization 0.6%
Puerto Rico 0.6%
oPuerto Rico Commonwealth GO, Public Improvement, Refunding, Series A,
5.50%, 7/01/39	United States		715,000		586,300
5.00%, 7/01/41	United States		1,000,000		781,250

37

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country	Principal Amount*		Value
Municipal Bonds in Reorganization (continued)
Puerto Rico (continued)
oPuerto Rico Commonwealth GO, Refunding, Series A, 8.00%, 7/01/35	United States		8,405,000	$	6,545,394
Total Municipal Bonds in Reorganization (Cost $5,605,966)					7,912,944
	Number of Contracts	Notional Amount#
Options Purchased 0.1%
Calls - Exchange-Traded 0.0%†
Ajax I, August Strike Price $15.00, Expires 8/20/21	163		16,300		22,820
Alexion Pharmaceuticals Inc., May Strike Price $170.00, Expires 5/21/21	71		7,100		16,259
Atlas Air Worldwide Holdings Inc., March Strike Price $57.50, Expires 3/19/21	13		1,300		2,626
FTI Consulting Inc., March Strike Price $130.00, Expires 3/19/21	27		2,700		2,902
General Motors Co., June Strike Price $50.00, Expires 6/18/21	132		13,200		73,920
KBR Inc., March Strike Price $33.00, Expires 3/19/21	58		5,800		2,175
Lumentum Holdings Inc., March Strike Price $95.00, Expires 3/19/21	20		2,000		5,060
Lumentum Holdings Inc., April Strike Price $95.00, Expires 4/16/21	20		2,000		7,800
Nikola Corp., April Strike Price $30.00, Expires 4/16/21	105		10,500		7,875
Pershing Square Tontine Holdings Ltd., April Strike Price $35.00, Expires 4/16/21	244		24,400		90,524
Perspecta Inc., April Strike Price $30.00, Expires 4/16/21	49		4,900		1,960
Perspecta Inc., June Strike Price $30.00, Expires 6/18/21	2		200		70
Pluralsight Inc., April Strike Price $20.00, Expires 4/16/21	2		200		280
S&P 500 Index, March Strike Price $3,900.00, Expires 3/19/21	9		900		29,160
Sabre Corp., March Strike Price $14.00, Expires 3/19/21	38		3,800		5,054
Social Capital Hedosophia Holdings Corp. IV, July Strike Price $15.00, Expires 7/16/21	102		10,200		29,070
Social Capital Hedosophia Holdings Corp. VI, July Strike Price $17.50, Expires 7/16/21	102		10,200		22,746
U.S. Treasury 10 Yr. Note Futures, May Strike Price $142.00, Expires 5/21/21	35		35,000		1,094
					321,395
Puts - Exchange-Traded 0.1%
B&G Foods Inc., May Strike Price $25.00, Expires 5/21/21	36		3,600		3,996
B&G Foods Inc., May Strike Price $30.00, Expires 5/21/21	52		5,200		15,080
GameStop Corp., March Strike Price $100.00, Expires 3/19/21	14		1,400		56,280
GameStop Corp., July Strike Price $100.00, Expires 7/16/21	22		2,200		117,920
Iron Mountain Inc., April Strike Price $30.00, Expires 4/16/21	145		14,500		5,075
iShares Russell 2000 ETF, March Strike Price $180.00, Expires 3/19/21	153		15,300		7,344
Kohl’s Corp., April Strike Price $32.50, Expires 4/16/21	44		4,400		1,892
Marvell Technology Group Ltd., March Strike Price $50.00, Expires 3/19/21	412		41,200		148,320
S&P 500 Index, March Strike Price $3,550.00, Expires 3/19/21	38		3,800		93,480
S&P 500 Index, May Strike Price $3,700.00, Expires 5/21/21	2		200		26,752
Salesforce.com Inc., March Strike Price $230.00, Expires 3/19/21	17		1,700		24,837
SPDR S&P 500 ETF Trust, March Strike Price $365.00, Expires 3/19/21	83		8,300		39,342
					540,318

38

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 - Over-the-Counter 0.0%†
Air France-KLM, Counterparty BOFA, March Strike Price 4.20 EUR, Expires 3/19/21	116		11,600	$	280
Air France-KLM, Counterparty BOFA, June Strike Price 4.00 EUR, Expires 6/18/21	51		5,100		1,231
American Airlines Group Inc., Counterparty JPHQ, May Strike Price $13.00, Expires 5/21/21	579		57,900		30,108
B&G Foods Inc., Counterparty GSCO, May Strike Price $25.00, Expires 5/21/21	37		3,700		4,107
The Kroger Co., Counterparty JPHQ, April Strike Price $30.00, Expires 4/16/21	219		21,900		15,330
NRG Energy Inc., Counterparty GSCO, March Strike Price $36.00, Expires 3/19/21	63		6,300		13,230
NRG Energy Inc., Counterparty GSCO, June Strike Price $36.00, Expires 6/18/21	63		6,300		24,570
					88,856
Total Options Purchased (Cost $1,582,919)					950,569
Total Investments before Short Term Investments (Cost  $813,151,870)					995,220,291
	Country	Shares
Short Term Investments 19.6%
Money Market Funds 15.6%
u,vDreyfus Government Cash Management, Institutional, 0.03%	United States		28,219,800		28,219,800
uFidelity Investments Money Market Government Portfolio, Institutional, 0.01%	United States		168,995,291		168,995,291
Total Money Market Funds (Cost $197,215,091)					197,215,091
		Principal Amount*
Repurchase Agreements (Cost $32,050,922) 2.5%
wJoint Repurchase Agreement, 0.009%, 3/01/21 (Maturity Value $32,050,947)	United States		32,050,922		32,050,922
BNP Paribas Securities Corp. (Maturity Value $24,393,975)
Deutsche Bank Securities Inc. (Maturity Value $3,591,309)
HSBC Securities (USA) Inc. (Maturity Value $4,065,663)
Collateralized by U.S. Government Agency Securities, 2.50% - 5.00%, 4/20/35 - 2/20/51; xU.S. Treasury Bills, 7/13/21; and U.S. Treasury Notes, 1.63%, 11/15/22, (valued at $32,697,971)
		Shares
Investments from Cash Collateral Received for Loaned Securities 0.4%
Money Market Funds 0.3%
u,yInstitutional Fiduciary Trust Money Market Portfolio, 0.00%	United States		2,939,000		2,939,000

39

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Country	Principal Amount*		Value
Short Term Investments (continued)
Investments from Cash Collateral Received for Loaned Securities (continued)
Repurchase Agreements 0.1%
wJoint Repurchase Agreement, 0.01%, 3/01/21 (Maturity Value $790,552)	United States		790,551	$	790,551
J.P. Morgan Securities LLC
Collateralized by U.S. Government Agency Obligations, 0.00% - 1.875%, 7/06/21 - 9/30/25 (valued at $806,362)
Total Investments from Cash Collateral Received for Loaned Securities (Cost $3,729,551)					3,729,551
U.S. Government and Agency Securities 1.1%
xU.S. Treasury Bill, zero cpn.,
b4/22/21	United States		8,000,000		7,999,740
7/15/21	United States		1,790,000		1,789,763
9/09/21	United States		910,000		909,788
10/07/21	United States		405,000		404,901
11/04/21	United States		435,000		434,858
12/02/21	United States		1,800,000		1,799,196
12/30/21	United States		900,000		899,509
Total U.S. Government and Agency Securities (Cost $14,235,144)					14,237,755
Total Investments (Cost $1,060,382,578) 98.4%					1,242,453,610
Options Written (0.0)%†					(626,609	)
Securities Sold Short (20.7)%					(261,361,089	)
Other Assets, less Liabilities 22.3%					282,351,231
Net Assets 100.0%				$	1,262,817,143
	Number of Contracts	Notional Amount#
Options Written (0.0)%†
Calls - Exchange-Traded (0.0)%†
Activision Blizzard Inc., April Strike Price $110.00, Expires 4/16/21	2		200		(118	)
Ajax I, August Strike Price $25.00, Expires 8/20/21	163		16,300		(11,410	)
Alexion Pharmaceuticals Inc., May Strike Price $190.00, Expires 5/21/21	35		3,500		(1,120	)
Applied Materials Inc., April Strike Price $135.00, Expires 4/16/21	2		200		(618	)
Bank of America Corp., April Strike Price $37.00, Expires 4/16/21	8		800		(720	)
Chevron Corp., April Strike Price $105.00, Expires 4/16/21	2		200		(640	)
Clearway Energy Inc., May Strike Price $30.00, Expires 5/21/21	15		1,500		(1,500	)
Clearway Energy Inc., August Strike Price $30.00, Expires 8/20/21	11		1,100		(2,420	)

40

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)
Comcast Corp., April Strike Price $55.00, Expires 4/16/21	3		300	$	(327	)
CoreLogic Inc., March Strike Price $80.00, Expires 3/19/21	20		2,000		(11,800	)
Crown Castle International Corp., April Strike Price $175.00, Expires 4/16/21	1		100		(60	)
D.R. Horton Inc., April Strike Price $90.00, Expires 4/16/21	3		300		(258	)
Exxon Mobil Corp., April Strike Price $60.00, Expires 4/16/21	4		400		(516	)
Fox Corp., April Strike Price $37.00, Expires 4/16/21	3		300		(203	)
General Motors Co., June Strike Price $60.00, Expires 6/18/21	74		7,400		(16,280	)
Gilead Sciences Inc., April Strike Price $70.00, Expires 4/16/21	3		300		(105	)
HCA Healthcare Inc., April Strike Price $190.00, Expires 4/16/21	1		100		(306	)
Intel Corp., April Strike Price $70.00, Expires 4/16/21	4		400		(236	)
Lowe’s Cos. Inc., April Strike Price $195.00, Expires 4/16/21	1		100		(34	)
Lumentum Holdings Inc., March Strike Price $105.00, Expires 3/19/21	20		2,000		(1,500	)
Lumentum Holdings Inc., April Strike Price $105.00, Expires 4/16/21	20		2,000		(3,100	)
Morgan Stanley, April Strike Price $85.00, Expires 4/16/21	3		300		(378	)
MultiPlan Corp., April Strike Price $12.50, Expires 4/16/21	75		7,500		(562	)
Nexstar Media Group Inc., April Strike Price $140.00, Expires 4/16/21	1		100		(785	)
Nike Inc., April Strike Price $155.00, Expires 4/16/21	1		100		(140	)
Nikola Corp., April Strike Price $50.00, Expires 4/16/21	105		10,500		(2,520	)
Oracle Corp., April Strike Price $67.50, Expires 4/16/21	3		300		(471	)
Pershing Square Tontine Holdings Ltd., April Strike Price $45.00, Expires 4/16/21	244		24,400		(56,608	)
Perspecta Inc., March Strike Price $30.00, Expires 3/19/21	306		30,600		(4,590	)
Pfizer Inc., April Strike Price $37.00, Expires 4/16/21	4		400		(112	)
Philip Morris International Inc., April Strike Price $90.00, Expires 4/16/21	2		200		(166	)
Pluralsight Inc., April Strike Price $22.50, Expires 4/16/21	95		9,500		(5,700	)
Skyworks Solutions Inc., April Strike Price $210.00, Expires 4/16/21	1		100		(250	)
Social Capital Hedosophia Holdings Corp. IV, July Strike Price $25.00, Expires 7/16/21	102		10,200		(15,300	)
Social Capital Hedosophia Holdings Corp. VI, July Strike Price $30.00, Expires 7/16/21	102		10,200		(8,772	)
Target Corp., April Strike Price $210.00, Expires 4/16/21	1		100		(199	)
Texas Instruments Inc., April Strike Price $190.00, Expires 4/16/21	1		100		(224	)
Union Pacific Corp., April Strike Price $220.00, Expires 4/16/21	1		100		(331	)
					(150,379	)
Calls - Over-the-Counter (0.0)%†
Clearway Energy Inc., Counterparty JPHQ, May Strike Price $30.00, Expires 5/21/21	67		6,700		(6,700	)
Clearway Energy Inc., Counterparty CITI, August Strike Price $30.00, Expires 8/20/21	29		2,900		(6,380	)
					(13,080	)
Puts - Exchange-Traded (0.0)%†
Ajax I, August Strike Price $12.50, Expires 8/20/21	163		16,300		(44,417	)
FTI Consulting Inc., March Strike Price $105.00, Expires 3/19/21	41		4,100		(6,355	)
GameStop Corp., March Strike Price $50.00, Expires 3/19/21	28		2,800		(21,476	)
GameStop Corp., July Strike Price $50.00, Expires 7/16/21	44		4,400		(78,320	)
iShares Russell 2000 ETF, March Strike Price $160.00, Expires 3/19/21	153		15,300		(2,295	)
KBR Inc., March Strike Price $30.00, Expires 3/19/21	58		5,800		(3,190	)

41

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

	Number of Contracts	Notional Amount#		Value
Options Written (continued)
Puts - Exchange-Traded (continued)
Marvell Technology Group Ltd., March Strike Price $45.00, Expires 3/19/21	412		41,200	$	(51,912	)
Nikola Corp., April Strike Price $12.50, Expires 4/16/21	64		6,400		(4,800	)
Pershing Square Tontine Holdings Ltd., April Strike Price $22.50, Expires 4/16/21	44		4,400		(3,212	)
Pershing Square Tontine Holdings Ltd., April Strike Price $25.00, Expires 4/16/21	244		24,400		(43,432	)
S&P 500 Index, May Strike Price $3,100.00, Expires 5/21/21	38		3,800		(141,322	)
S&P 500 Index, May Strike Price $3,400.00, Expires 5/21/21	2		200		(13,234	)
Social Capital Hedosophia Holdings Corp. IV, July Strike Price $12.50, Expires 7/16/21	102		10,200		(19,584	)
Social Capital Hedosophia Holdings Corp. VI, July Strike Price $12.50, Expires 7/16/21	102		10,200		(19,890	)
SPDR S&P 500 ETF Trust, March Strike Price $335.00, Expires 3/19/21	83		8,300		(9,711	)
					(463,150	)
Total Options Written (Premiums Received $943,136)					(626,609	)
	Country	Shares
Securities Sold Short (20.7)%
Common Stocks (10.1)%
Aerospace & Defense (0.2)%
Kaman Corp.	United States		8,531		(415,118	)
Parsons Corp.	United States		13,559		(484,599	)
Teledyne Technologies Inc.	United States		5,484		(2,034,564	)
					(2,934,281	)
Air Freight & Logistics (0.1)%
Air Transport Services Group Inc.	United States		19,880		(527,615	)
Atlas Air Worldwide Holdings Inc.	United States		17,554		(967,752	)
					(1,495,367	)
Airlines (0.3)%
American Airlines Group Inc.	United States		63,734		(1,334,590	)
Copa Holdings SA, A	Panama		19,385		(1,777,023	)
GOL Linhas Aereas Inteligentes SA, ADR	Brazil		15,469		(120,039	)
					(3,231,652	)
Auto Components (0.1)%
Patrick Industries Inc.	United States		9,492		(749,204	)
Automobiles (0.1)%
NIO Inc., ADR	China		5,499		(251,744	)
Winnebago Industries Inc.	United States		10,748		(748,061	)
					(999,805	)
Biotechnology (0.3)%
BioMarin Pharmaceutical Inc.	United States		5,053		(391,254	)
Bridgebio Pharma Inc.	United States		3,237		(228,791	)
Coherus Biosciences Inc.	United States		35,134		(570,576	)
Flexion Therapeutics Inc.	United States		25,477		(280,757	)
Gossamer Bio Inc.	United States		33,651		(316,319	)
Intercept Pharmaceuticals Inc.	United States		6,509		(140,985	)
Ironwood Pharmaceuticals Inc., A	United States		45,151		(416,744	)
Kadmon Holdings Inc.	United States		44,571		(204,581	)
Karyopharm Therapeutics Inc.	United States		52,006		(718,723	)

42

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)
Biotechnology (continued)
Ligand Pharmaceuticals Inc.	United States		3,259	$	(483,049	)
Pharming Group NV	Netherlands		87,500		(116,130	)
					(3,867,909	)
Capital Markets (0.2)%
S&P Global Inc.	United States		6,243		(2,056,194	)
Chemicals (0.0)%†
Umicore SA	Belgium		5,754		(338,040	)
Consumer Finance (0.2)%
Encore Capital Group Inc.	United States		37,459		(1,251,880	)
EZCORP Inc., A	United States		54,879		(263,419	)
LendingTree Inc.	United States		1,066		(286,616	)
PRA Group Inc.	United States		13,706		(505,203	)
					(2,307,118	)
Diversified Consumer Services (0.0)%†
Stride Inc.	United States		10,832		(260,510	)
Diversified Financial Services (0.1)%
Element Fleet Management Corp.	Canada		38,202		(374,635	)
Voya Financial Inc.	United States		3,413		(205,736	)
					(580,371	)
Electric Utilities (0.3)%
American Electric Power Co. Inc.	United States		13,026		(974,996	)
The Southern Co.	United States		18,114		(1,027,426	)
Terna Rete Elettrica Nazionale SpA	Italy		165,621		(1,148,929	)
Xcel Energy Inc.	United States		15,940		(933,924	)
					(4,085,275	)
Electronic Equipment, Instruments & Components (0.1)%
Knowles Corp.	United States		9,490		(197,297	)
OSI Systems Inc.	United States		4,378		(414,246	)
Vishay Intertechnology Inc.	United States		11,666		(278,468	)
					(890,011	)
Energy Equipment & Services (0.1)%
Helix Energy Solutions Group Inc.	United States		138,120		(676,788	)
Entertainment (0.4)%
Cinemark Holdings Inc.	United States		96,717		(2,171,297	)
Liberty Media Corp., C	United States		21,772		(955,791	)
Live Nation Entertainment Inc.	United States		12,591		(1,118,836	)
The Marcus Corp.	United States		51,497		(1,011,401	)
					(5,257,325	)
Equity Real Estate Investment Trusts (REITs) (0.4)%
The GEO Group Inc.	United States		73,310		(527,832	)
Innovative Industrial Properties Inc., A	United States		18,092		(3,527,940	)
Pebblebrook Hotel Trust	United States		16,974		(384,631	)
Summit Hotel Properties Inc.	United States		31,683		(327,919	)
					(4,768,322	)
Food & Staples Retailing (0.0)%†
The Chefs’ Warehouse Inc.	United States		16,036		(499,361	)
Health Care Equipment & Supplies (0.5)%
CONMED Corp.	United States		9,843		(1,211,279	)
Cryoport Inc.	United States		28,757		(1,709,316	)

43

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)
Health Care Equipment & Supplies (continued)
DexCom Inc.	United States		736	$	(292,766	)
LivaNova PLC	United States		4,665		(361,724	)
Mesa Laboratories Inc.	United States		1,195		(324,932	)
Nevro Corp.	United States		2,120		(350,182	)
NuVasive Inc.	United States		6,890		(415,674	)
SmileDirectClub Inc., A	United States		39,845		(462,202	)
Varex Imaging Corp.	United States		35,588		(816,033	)
					(5,944,108	)
Health Care Providers & Services (0.1)%
1Life Healthcare Inc.	United States		13,652		(648,607	)
PetIQ Inc., A	United States		30,467		(1,050,197	)
					(1,698,804	)
Health Care Technology (0.1)%
Health Catalyst Inc.	United States		21,203		(1,028,134	)
Tabula Rasa HealthCare Inc.	United States		9,151		(371,073	)
					(1,399,207	)
Hotels, Restaurants & Leisure (0.3)%
Bloomin’ Brands Inc.	United States		57,921		(1,438,758	)
Marriott Vacations Worldwide Corp.	United States		6,526		(1,107,527	)
Royal Caribbean Cruises Ltd.	United States		8,934		(833,274	)
					(3,379,559	)
Industrial Conglomerates (0.1)%
3M Co.	United States		6,325		(1,107,254	)
Insurance (0.7)%
Aon PLC, A	United States		40,881		(9,309,013	)
Internet & Direct Marketing Retail (0.5)%
fDelivery Hero SE, 144A	Germany		4,285		(547,535	)
Expedia Group Inc.	United States		845		(136,045	)
Fiverr International Ltd.	Israel		1,993		(538,050	)
fTakeaway.com NV, 144A	Netherlands		50,804		(4,888,698	)
Wayfair Inc., A	United States		2,088		(603,390	)
					(6,713,718	)
IT Services (0.3)%
Akamai Technologies Inc.	United States		3,558		(336,231	)
CSG Systems International Inc.	United States		3,463		(159,817	)
i3 Verticals Inc., A	United States		21,793		(723,528	)
Okta Inc., A	United States		1,460		(381,717	)
Perficient Inc.	United States		14,932		(831,563	)
Sabre Corp.	United States		9,200		(135,148	)
Shopify Inc., A	Canada		416		(532,884	)
					(3,100,888	)
Leisure Products (0.0)%†
Peloton Interactive Inc., A	United States		1,161		(139,866	)
Life Sciences Tools & Services (0.1)%
ICON PLC	Ireland		6,682		(1,207,304	)
Machinery (0.0)%†
The Greenbrier Cos. Inc.	United States		11,903		(560,036	)
Marine (0.0)%†
Atlas Corp.	Canada		23,385		(314,061	)

44

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)
Media (0.2)%
Charter Communications Inc., A	United States		32	$	(19,629)
Dish Network Corp., A	United States		17,875		(563,241)
Sirius XM Holdings Inc.	United States		54,483		(318,726)
Techtarget Inc.	United States		13,476		(1,126,998)
					(2,028,594)
Metals & Mining (0.0)%†
Pretium Resources Inc.	Canada		8,786		(85,312)
Mortgage Real Estate Investment Trusts (REITs) (0.1)%
Arbor Realty Trust Inc.	United States		28,232		(470,627)
Hannon Armstrong Sustainable Infrastructure Capital Inc.	United States		9,855		(554,147)
PennyMac Mortgage Investment Trust	United States		16,475		(312,531)
Redwood Trust Inc.	United States		12,211		(120,156)
Two Harbors Investment Corp.	United States		14,742		(106,437)
					(1,563,898)
Oil, Gas & Consumable Fuels (0.0)%†
Green Plains Inc.	United States		11,736		(297,156)
SFL Corp. Ltd.	Norway		8,417		(63,464)
					(360,620)
Personal Products (0.0)%†
Herbalife Nutrition Ltd.	United States		7,301		(328,399)
Pharmaceuticals (0.7)%
Aerie Pharmaceuticals Inc.	United States		24,423		(449,139)
AstraZeneca PLC, ADR	United Kingdom		80,291		(3,884,479)
Avadel Pharmaceuticals PLC, ADR	United States		47,625		(382,905	)
Canopy Growth Corp.	Canada		12,323		(405,731)
Collegium Pharmaceutical Inc.	United States		23,747		(560,192)
Innoviva Inc.	United States		19,640		(224,485)
Jazz Pharmaceuticals PLC	United States		5,876		(987,403)
Omeros Corp.	United States		34,697		(691,858)
Revance Therapeutics Inc.	United States		23,464		(616,165)
Zogenix Inc.	United States		29,185		(619,014)
					(8,821,371)
Professional Services (0.2)%
CoStar Group Inc.	United States		773		(636,767)
FTI Consulting Inc.	United States		5,202		(595,889)
KBR Inc.	United States		43,929		(1,361,799)
					(2,594,455)
Real Estate Management & Development (0.1)%
Colliers International Group Inc.	Canada		9,491		(982,508)
Road & Rail (0.0)%†
Uber Technologies Inc.	United States		1,750		(90,562)
Semiconductors & Semiconductor Equipment (1.3)%
Advanced Micro Devices Inc.	United States		54,315		(4,590,161)
ams AG	Austria		20,669		(484,990)
Analog Devices Inc.	United States		34,471		(5,371,271)
First Solar Inc.	United States		10,293		(833,939)
Impinj Inc.	United States		25,365		(1,622,599)
Rambus Inc.	United States		28,700		(602,126)
SMART Global Holdings Inc.	United States		23,369		(1,091,098)
Synaptics Inc.	United States		14,454		(1,937,270)
					(16,533,454	)

45

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)
Software (1.5)%
Alteryx Inc., A	United States		2,725	$	(260,510	)
Avaya Holdings Corp.	United States		36,089		(1,070,761	)
Bentley Systems Inc., B	United States		3,269		(145,013	)
Box Inc., A	United States		22,179		(406,985	)
Coupa Software Inc.	United States		1,985		(687,326	)
CyberArk Software Ltd.	United States		2,271		(333,451	)
DocuSign Inc., A	United States		361		(81,824	)
Dye & Durham Ltd.	Canada		2,266		(69,978	)
Envestnet Inc.	United States		4,217		(269,972	)
Everbridge Inc.	United States		3,774		(578,290	)
Fubotv Inc.	United States		8,307		(293,237	)
J2 Global Inc.	United States		29,891		(3,329,259	)
Kaleyra Inc.	Italy		1,256		(23,588	)
LivePerson Inc.	United States		23,539		(1,544,629	)
Microstrategy Inc., A	United States		625		(469,006	)
Mitek Systems Inc.	United States		15,929		(243,395	)
Nuance Communications Inc.	United States		34,786		(1,551,456	)
Nutanix Inc., A	United States		8,046		(243,673	)
Palo Alto Networks Inc.	United States		3,082		(1,104,311	)
PROS Holdings Inc.	United States		20,587		(975,824	)
Salesforce.com Inc.	United States		8,408		(1,820,332	)
Slack Technologies Inc., A	United States		8,909		(364,645	)
Splunk Inc.	United States		599		(85,663	)
Verint Systems Inc.	United States		36,609		(1,804,458	)
VMware Inc., A	United States		8,600		(1,188,606	)
					(18,946,192	)
Specialty Retail (0.3)%
Guess? Inc.	United States		51,049		(1,286,945	)
RH	United States		3,970		(1,946,769	)
					(3,233,714	)
Technology Hardware, Storage & Peripherals (0.0)%†
Pure Storage Inc., A	United States		20,312		(474,895	)
Tobacco (0.1)%
Turning Point Brands Inc.	United States		21,830		(1,074,036	)
Total Common Stocks (Proceeds $116,222,728)					(126,989,361	)
Exchange Traded Funds (9.2)%
Health Care Select Sector SPDR Fund	United States		202,659		(22,821,430	)
Invesco QQQ Series 1 ETF	United States		2,970		(932,996	)
iShares Nasdaq Biotechnology ETF	United States		92,188		(14,467,063	)
iShares North American Tech-Software ETF	United States		52,109		(18,477,852	)
iShares Russell 2000 Growth ETF	United States		70,666		(21,890,207	)
iShares Russell Mid-Cap Growth ETF	United States		57,039		(5,932,626	)
SPDR S&P 500 ETF Trust	United States		84,511		(32,144,604	)
Total Exchange Traded Funds (Proceeds $110,855,948)					(116,666,778	)
		Principal Amount*
Corporate Bonds and Notes (1.2)%
Aerospace & Defense (0.1)%
fSpirit Aerosystems Inc., secured note, 144A, 7.50%, 4/15/25	United States		273,000		(289,293	)

46

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)
Aerospace & Defense (continued)
Triumph Group Inc., senior note, 5.25%, 6/01/22	United States		400,000		$	(398,000	)
						(687,293	)
Airlines (0.1)%
fAmerican Airlines Inc., senior secured note, 144A, 11.75%, 7/15/25	United States		994,000			(1,185,345	)
Auto Components (0.1)%
American Axle & Manufacturing Inc., senior note,
6.50%, 4/01/27	United States		150,000			(156,808	)
6.875%, 7/01/28	United States		300,000			(318,000	)
hZF Europe Finance BV, senior bond, Reg S, 3.00%, 10/23/29	Germany		200,000	EUR		(248,283	)
						(723,091	)
Communications Equipment (0.0)%†
fEntercom Media Corp., secured note, 144A, 6.50%, 5/01/27	United States		248,000			(253,967	)
Construction & Engineering (0.1)%
fTutor Perini Corp., senior note, 144A, 6.875%, 5/01/25	United States		646,000			(654,882	)
Diversified Consumer Services (0.1)%
fMPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28	United States		1,314,000			(1,305,787	)
Diversified Financial Services (0.2)%
AerCap Ireland Capital DAC / AerCap Global Aviation Trust, senior bond, 3.65%, 7/21/27	Ireland		2,000,000			(2,127,929	)
Diversified Telecommunication Services (0.0)%†
hDKT Finance ApS, senior secured note, Reg S, 7.00%, 6/17/23	Denmark		358,000	EUR		(443,642	)
Electric Utilities (0.1)%
fNRG Energy Inc., 144A,
senior bond, 5.25%, 6/15/29	United States		100,000			(105,769	)
senior bond, 3.625%, 2/15/31	United States		567,000			(559,558	)
senior note, 3.375%, 2/15/29	United States		63,000			(62,481	)
Southern California Edison Co., secured bond, 3.65%, 2/01/50	United States		46,000			(47,390	)
						(775,198	)
Energy Equipment & Services (0.0)%†
hSaipem Finance International BV, E, senior note, Reg S, 3.375%, 7/15/26	Italy		300,000	EUR		(379,312	)
Equity Real Estate Investment Trusts (REITs) (0.1)%
The GEO Group Inc., senior bond, 5.875%, 10/15/24	United States		144,000			(112,770	)
fIron Mountain Inc., senior bond, 144A, 5.25%, 3/15/28	United States		408,000			(427,125	)
Service Properties Trust, senior bond,
4.95%, 10/01/29	United States		223,000			(215,613	)
4.375%, 2/15/30	United States		150,000			(139,781	)
Simon Property Group LP, senior bond, 2.65%, 7/15/30	United States		350,000			(356,110	)
						(1,251,399	)
Food & Staples Retailing (0.2)%
Koninklijke Ahold Delhaize NV, senior bond, 5.70%, 10/01/40	Netherlands		603,000			(821,495	)
The Kroger Co., senior bond,
5.40%, 1/15/49	United States		241,000			(321,648	)
3.95%, 1/15/50	United States		15,000			(16,693	)
fSEG Holding LLC / SEG Finance Corp., senior secured note, 144A, 5.625%, 10/15/28	United States		473,000			(502,563	)
fSigma Holdco BV, senior note, 144A, 7.875%, 5/15/26	Netherlands		163,000			(167,126	)

47

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)
The Kroger Co., senior bond, (continued)
fUnited Natural Foods Inc., senior note, 144A, 6.75%, 10/15/28		United States		371,000		$	(389,086	)
							(2,218,611	)
Food Products (0.0)%†
B&G Foods Inc., senior note, 5.25%, 9/15/27		United States		361,000			(379,126	)
Hotels, Restaurants & Leisure (0.0)%†
fGolden Nugget Inc., senior note, 144A, 8.75%, 10/01/25		United States		326,000			(347,353	)
RHP Hotel Properties LP / RHP Finance Corp., senior note, 4.75%, 10/15/27		United States		221,000			(224,494	)
							(571,847	)
Oil, Gas & Consumable Fuels (0.0)%†
PDC Energy Inc., senior note, 5.75%, 5/15/26		United States		170,000			(174,480	)
fSM Energy Co., secured note, 144A, 10.00%, 1/15/25		United States		172,000			(193,823	)
							(368,303	)
Personal Products (0.0)%†
Sally Holdings LLC / Sally Capital Inc., senior note, 5.625%, 12/01/25		United States		83,000			(84,992	)
Software (0.0)%†
fVeritas U.S. Inc. / Veritas Bermuda Ltd., senior note, 144A, 10.50%, 2/01/24		United States		404,000			(408,634	)
Specialty Retail (0.1)%
fDave & Buster’s Inc., senior secured note, 144A, 7.625%, 11/01/25		United States		318,000			(337,875	)
hStonegate Pub Co. Financing 2019 PLC, senior secured note, Reg S, 8.25%, 7/31/25		United Kingdom		400,000	GBP		(584,460	)
							(922,335	)
Textiles, Apparel & Luxury Goods (0.0)%†
fHanesbrands Inc., senior bond, 144A, 4.875%, 5/15/26		United States		169,000			(182,261	)
Trading Companies & Distributors (0.0)%†
Fly Leasing Ltd., senior note, 5.25%, 10/15/24		Ireland		376,000			(362,652	)
Total Corporate Bonds and Notes (Proceeds $14,348,985)							(15,286,606	)
Foreign Government and Agency Securities (Proceeds $50,357) (0.0)%†		Italy		36,000	EUR		(52,124	)
f,hGovernment of Italy, senior bond, 144A, Reg S, 5.00%, 3/01/25
U.S. Government and Agency Securities (0.2)%
U.S. Treasury Bond, 1.375%, 8/15/50		United States		1,049,000			(876,079	)
U.S. Treasury Note,
0.375%, 11/30/25		United States		809,000			(797,718	)
0.875%, 11/15/30		United States		726,000			(692,423	)
Total U.S. Government and Agency Securities (Proceeds $2,514,927)							(2,366,220	)
Total Securities Sold Short (Proceeds $243,992,945)						$	(261,361,089	)

48

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.

^a  Non-income producing.

^b  A portion or all of the security has been segregated as collateral for securities sold short, open swap contracts, open forward exchange contracts, open futures contracts and/or open written option contracts. At February 28, 2021, the aggregate value of these securities and/or cash pledged amounted to $413,615,597, representing 32.8% of net assets.

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

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

^e  A portion or all of the security is on loan at February 28, 2021.

^f  Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in public offering registered under the Securities Act of 1933. At February 28, 2021, the net value of these securities was $205,700,729, representing 16.3% of net assets.

^g  Contingent distributions represent the right to receive additional distributions, if any, during the reorganization of the underlying company.

^h  Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security 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 February 28, 2021, the net value of these securities was $59,573,505, representing 4.7% of net assets.

ⁱ  Perpetual security with no stated maturity date.

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

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

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

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

ⁿ  Principal amount is stated in 100 Mexican Peso Units.

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

^p  See Note 6 regarding unfunded loan commitments.

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

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

^s  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.

^t  Investment in an interest-only security entitles holders to receive only the interest payment on the underlying instruments. The principal amount shown is the notional amount of the underlying instruments.

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

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

^w  Investment is through participation in a joint account with other funds managed by the investment manager or an affiliate of the investment manager. At February 26, 2021, all repurchase agreements had been entered into on that date.

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

^y  See Note 7 regarding investments in affiliated management investment companies.

49

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

At February 28, 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		22	$	1,172,462		3/15/21	$	69,451
Aluminum		Short		22		1,172,462		3/15/21		(81,788)
Aluminum		Long		18		971,662		6/14/21		70,245
Aluminum		Short		3		161,944		6/14/21		(12,609)
Brent Crude Oil		Long		47		3,027,740		3/31/21		135,568
Cocoa		Long		8		197,055		5/13/21		12,109
Coffee		Long		10		515,625		5/18/21		39,177
Copper		Long		20		4,546,625		3/15/21		1,065,906
Copper		Short		20		4,546,625		3/15/21		(610,935)
Copper		Long		8		1,814,800		6/14/21		232,397
Copper		Short		4		907,400		6/14/21		(82,625)
Corn		Long		48		1,314,000		5/14/21		5,381
Cotton		Long		9		399,735		5/06/21		4,520
Crude Oil		Long		34		2,091,000		3/22/21		81,904
Gasoline		Long		35		2,867,235		3/31/21		101,134
Gold 100 Oz		Long		3		518,640		4/28/21		(24,267)
Hard Red Winter Wheat		Long		19		605,862		7/14/21		(914)
Low Sulphur Gas Oil		Long		20		1,065,500		4/12/21		17,095
Natural Gas		Long		18		498,780		3/29/21		(18,791)
NY Harbor		Long		26		2,012,665		3/31/21		28,333
Silver		Long		16		2,115,200		5/26/21		(105,621)
Soybean Meal		Long		12		505,680		5/14/21		(7,943)
Soybean Oil		Long		10		299,640		5/14/21		24,879
Soybeans		Long		25		1,755,313		5/14/21		35,119
Sugar		Long		25		460,600		4/30/21		18,387
Wheat		Long		21		693,263		5/14/21		13,769
Zinc		Long		21		1,459,237		3/15/21		67,209
Zinc		Short		21		1,459,238		3/15/21		(56,021)
Zinc		Long		10		698,875		6/14/21		44,367
Zinc		Short		1		69,888		6/14/21		(3,578)
										1,061,858
Currency Contractsa
Dollar Index		Short		12		1,090,584		3/15/21		3,025
Equity Contracts
CAC 40 10 Euro Indexa		Long		3		206,284		3/19/21		(2,259)
DAX Indexa		Short		1		415,023		3/19/21		4,648
DJ EURO STOXX 50 Indexa		Long		13		568,900		3/19/21		20,570
DJ EURO STOXX 50 Index		Short		562		24,593,984		3/19/21		(643,740)
DJIA Mini E-CBOT Indexa		Short		2		309,120		3/19/21		4,026
E-Mini Russell 2000a		Long		11		1,209,560		3/19/21		123,661
FTSE 100 Indexa		Short		69		6,190,360		3/19/21		81,491
FTSE/MIB Index		Short		3		413,165		3/19/21		(15,506)
Hang Seng Indexa		Long		18		3,360,184		3/30/21		(150,377)
Mini TOPIX Index		Long		42		738,975		3/11/21		48,723
NASDAQ 100 E-Mini Indexa		Long		11		2,840,420		3/19/21		(47,437)
NASDAQ 100 E-Mini Index		Short		1		258,220		3/19/21		(8,957)
Nikkei 225 Indexa		Long		5		1,372,016		3/11/21		135,647
S&P 500 E-Mini Indexa		Long		3		571,380		3/19/21		(14,289)
S&P 500 E-Mini Index		Short		97		18,474,620		3/19/21		(163,117)
STOXX 600 Banks Index		Short		106		771,202		3/19/21		(63,571)

50

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)
TOPIX Indexa		Long		16	$	2,815,141		3/11/21	$	159,571
										(530,916)
Interest Rate Contracts
3 Month EURIBORa		Long		131		39,706,130		6/13/22		(21,492)
10 Yr. Mini JGBa		Long		9		1,273,230		3/12/21		(2,309)
90 Day Eurodollara		Long		262		65,332,975		6/13/22		(9,729)
90 Day Sterlinga		Long		196		34,094,243		12/15/21		(3,384)
Australian 10 Yr. Bonda		Long		19		2,005,084		3/15/21		(113,830)
Canadian 10 Yr. Bonda		Long		50		5,491,906		6/21/21		(102,344)
Euro-BOBLa		Long		9		1,457,379		3/08/21		(8,304)
Euro-Bunda		Long		29		6,067,253		3/08/21		(105,506)
Euro-SCHATZa		Long		96		12,992,507		3/08/21		(11,109)
Long Gilta		Long		32		5,696,309		6/28/21		(55,477)
U.S. Treasury 2 Yr. Notea		Long		153		33,777,141		6/30/21		(27,655)
U.S. Treasury 5 Yr. Notea		Long		262		32,479,813		6/30/21		(246,869)
U.S. Treasury 10 Yr. Notea		Long		10		1,327,188		6/21/21		(14,359)
U.S. Treasury 10 Yr. Ultra		Short		21		3,094,219		6/21/21		16,378
U.S. Treasury Long Bonda		Short		61		9,712,344		6/21/21		87,457
U.S. Treasury Ultra Bond		Short		58		10,965,624		6/21/21		43,718
										(574,814)
Total Futures Contracts									$	(40,847)

^*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 February 28, 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		JPHQ		Buy		4,768,126	$	886,763		3/02/21	$	–	$	(35,950	)
Brazilian Real		JPHQ		Sell		4,768,126		881,354		3/02/21		30,541		–
British Pound		MSCO		Sell		655,000		866,871		3/15/21		–		(45,779	)
Chinese Yuan		MSCO		Sell		21,152,430		3,250,000		3/15/21		–		(20,325	)
British Pound		BNYM		Sell		434,116		608,109		3/17/21		3,680		(460	)
British Pound		MSCO		Sell		2,633,766		3,491,570		3/17/21		–		(178,267	)
Chinese Yuan		JPHQ		Buy		6,347,251		967,452		3/17/21		10,073		(139	)
Euro		BNYM		Buy		477,013		585,683		3/17/21		–		(9,872	)
Euro		BNYM		Sell		2,859,304		3,482,024		3/17/21		30,944		(440	)
Euro		MSCO		Sell		665,705		808,983		3/17/21		5,398		–
Indonesian Rupiah		JPHQ		Sell		49,111,703,712		3,443,053		3/17/21		–		(316	)
Norwegian Krone		CITI		Buy		1,701,698		200,000		3/17/21		–		(3,740	)
Russian Ruble		JPHQ		Buy		328,053,480		4,432,877		3/17/21		–		(40,447	)
Russian Ruble		JPHQ		Sell		619,452,404		8,384,235		3/17/21		90,156		–
South African Rand		JPHQ		Buy		13,230,201		895,378		3/17/21		–		(23,219	)
South African Rand		JPHQ		Sell		25,952,648		1,728,599		3/17/21		24,962		(7,209	)
South Korean Won		UBSW		Buy		673,377,300		600,000		3/17/21		–		(643	)
Taiwan Dollar		UBSW		Sell		16,694,934		600,000		3/17/21		522		–
Turkish Lira		JPHQ		Buy		14,163,523		1,978,615		3/17/21		–		(86,131	)
South Korean Won		GSCO		Buy		1,120,908,000		1,000,000		3/18/21		–		(2,307	)

51

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)
Australian Dollarb		MSCO		Buy		14,310,000	$	10,793,479		3/19/21	$	253,723	$	(35,356	)
Australian Dollarb		MSCO		Sell		14,195,000		10,893,242		3/19/21		33,375		(63,484	)
British Pound		BNYM		Buy		94,058		131,577		3/19/21		–		(517	)
British Pound		BNYM		Sell		2,008,312		2,780,649		3/19/21		–		(17,735	)
British Pound		BZWS		Buy		4,614,000		6,374,019		3/19/21		66,497		(11,362	)
British Pound		BZWS		Sell		4,920,000		6,702,765		3/19/21		2,963		(155,727	)
British Poundb		MSCO		Buy		14,071,000		19,170,867		3/19/21		461,504		(25,829	)
British Poundb		MSCO		Sell		7,528,000		10,177,814		3/19/21		108		(311,813	)
Canadian Dollarb		MSCO		Buy		11,805,000		9,312,774		3/19/21		10,509		(46,529	)
Canadian Dollarb		MSCO		Sell		2,679,000		2,094,269		3/19/21		1,226		(12,199	)
Euro		BNYM		Sell		21,498,354		25,881,440		3/19/21		88		(71,157	)
Euro		BZWS		Buy		9,978,000		12,087,258		3/19/21		241		(42,199	)
Euro		BZWS		Sell		13,118,000		15,991,822		3/19/21		157,416		(1,457	)
Eurob		MSCO		Buy		13,442,000		16,310,416		3/19/21		2,346		(85,768	)
Eurob		MSCO		Sell		9,660,000		11,729,132		3/19/21		80,989		(13,273	)
Hong Kong Dollar		BNYM		Buy		4,624,030		596,136		3/19/21		43		–
Hong Kong Dollar		BNYM		Sell		36,910,555		4,761,147		3/19/21		2,245		–
Japanese Yenb		MSCO		Buy		3,613,761,000		34,766,451		3/19/21		–		(856,746	)
Japanese Yenb		MSCO		Sell		3,507,558,000		33,738,457		3/19/21		825,306		–
Mexican Pesob		MSCO		Buy		64,689,000		3,219,575		3/19/21		–		(134,594	)
Mexican Pesob		MSCO		Sell		15,606,000		776,874		3/19/21		32,634		–
New Zealand Dollarb		MSCO		Buy		8,110,000		5,756,311		3/19/21		104,157		(600	)
New Zealand Dollarb		MSCO		Sell		3,202,000		2,283,875		3/19/21		1,137		(30,864	)
Swedish Krona		BZWS		Buy		25,741,000		3,098,519		3/19/21		–		(49,261	)
Swedish Krona		BZWS		Sell		25,742,000		3,122,035		3/19/21		72,659		–
Swiss Franc		BNYM		Buy		196,893		217,709		3/19/21		–		(1,125	)
Swiss Franc		BNYM		Sell		10,144,428		11,319,317		3/19/21		160,387		–
Swiss Francb		MSCO		Buy		9,946,000		11,196,298		3/19/21		–		(255,645	)
Swiss Francb		MSCO		Sell		7,073,000		7,915,840		3/19/21		135,501		–
Canadian Dollar		BNYM		Buy		1,033,000		813,693		3/25/21		–		(1,916	)
Canadian Dollar		BNYM		Sell		3,556,000		2,794,763		3/25/21		301		–
Euro		BNYM		Buy		946,000		1,153,789		3/25/21		–		(11,601	)
Euro		BNYM		Sell		5,583,000		6,786,885		3/25/21		50,536		(4,492	)
British Pound		BNYM		Sell		1,089,000		1,483,393		3/31/21		–		(34,148	)
British Pound		JPHQ		Sell		1,050,000		1,449,505		3/31/21		4,974		(18,662	)
Canadian Dollar		BNYM		Sell		375,000		291,873		3/31/21		–		(2,822	)
Canadian Dollar		JPHQ		Sell		860,000		676,765		3/31/21		930		–
Euro		BNYM		Sell		1,725,000		2,103,608		3/31/21		20,538		–
Euro		JPHQ		Sell		1,800,000		2,194,299		3/31/21		20,660		–
Brazilian Real		JPHQ		Buy		4,768,126		880,402		4/05/21		–		(30,756	)
Euro		HSBC		Buy		108,000		130,022		4/06/21		411		–
Euro		HSBC		Sell		108,000		133,076		4/06/21		2,643		–
Colombian Peso		MSCS		Sell		424,857,000		122,827		4/08/21		6,492		–
Canadian Dollar		BOFA		Sell		145,000		114,979		4/26/21		1,031		–
Euro		BOFA		Sell		370,000		450,950		4/26/21		3,926		–
Euro		BZWS		Sell		115,000		140,144		4/26/21		1,204		–
British Pound		DBAB		Sell		166,000		227,462		4/30/21		–		(3,878	)
Euro		MSCS		Buy		90,000		108,434		4/30/21		310		–
Euro		MSCS		Sell		90,000		108,971		4/30/21		227		–
Indonesian Rupiah		JPHQ		Sell		33,471,750,000		2,361,194		5/11/21		25,535		–
Colombian Peso		JPHQ		Buy		3,652,059,000		1,010,000		5/12/21		–		(11,403	)
Colombian Peso		JPHQ		Sell		6,000,477,200		1,665,160		5/12/21		24,426		–
Euro		JPHQ		Buy		1,583,179		1,920,000		5/12/21		–		(6,599	)
Euro		JPHQ		Sell		1,569,808		1,910,000		5/12/21		12,758		–
Indian Rupee		JPHQ		Buy		263,710,500		3,565,298		5/12/21		–		(18,231	)

52

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)

Indian Rupee

JPHQ

Sell

263,009,542

$

3,580,001

5/12/21

$

42,363

$

–

Mexican Peso

JPHQ

Buy

24,696,415

1,213,424

5/12/21

–

(42,208)

Mexican Peso

JPHQ

Sell

32,225,615

1,570,000

5/12/21

41,715

–

Peruvian Nuevo Sol

JPHQ

Buy

4,152,336

1,140,908

5/12/21

–

(2,783)

Peruvian Nuevo Sol

JPHQ

Sell

4,209,460

1,150,000

5/12/21

–

(3,782)

Philippine Peso

JPHQ

Buy

36,411,055

740,000

5/12/21

9,136

–

Philippine Peso

JPHQ

Sell

91,405,200

1,898,934

5/12/21

18,326

–

Russian Ruble

JPHQ

Buy

83,013,247

1,079,103

5/12/21

25,169

–

Russian Ruble

JPHQ

Sell

26,719,139

360,000

5/12/21

4,572

–

South African Rand

JPHQ

Sell

52,477,602

3,460,490

5/12/21

24,642

–

Turkish Lira

JPHQ

Buy

5,602,730

755,950

5/12/21

–

(26,502)

Turkish Lira

JPHQ

Sell

5,656,950

780,000

5/12/21

43,493

–

Euro

HSBC

Sell

125,000

151,896

5/17/21

807

–

Total Forward Exchange Contracts

$

2,988,455

$

(2,898,267)

Net unrealized appreciation (depreciation)

$

90,188

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

^b  A portion or all of the contracts are owned by K2 Holdings Investment Corp., a wholly-owned subsidiary of the Fund. See Note 8.

53

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

At February 28, 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 Malaysia	(1.00	)%	Quarterly			12/20/24	1,730,000		$	(45,207	)	$	(45,836	)	$	629
Government of Mexico	(1.00	)%	Quarterly			6/20/23	1,763,000			(20,128	)		(441	)		(19,687	)
Government of Mexico	(1.00	)%	Quarterly			12/20/23	4,066,000			(49,122	)		(11,463	)		(37,659	)
Government of Mexico	(1.00	)%	Quarterly			12/20/23	61,000			(737	)		(945	)		208
Government of Mexico	(1.00	)%	Quarterly			6/20/25	142,000			(247	)		(1,790	)		1,543
Government of South Africa	(1.00	)%	Quarterly			12/20/24	716,000			28,171			67,154			(38,983	)
Government of South Africa	(1.00	)%	Quarterly			12/20/24	3,065,000			120,593			90,737			29,856
Government of South Africa	(1.00	)%	Quarterly			12/20/24	4,478,000			176,188			132,619			43,569
Government of Turkey	(1.00	)%	Quarterly			6/20/24	141,000			8,078			14,153			(6,075	)
Government of Turkey	(1.00	)%	Quarterly			6/20/25	909,000			74,744			206,196			(131,452	)
Simon Property Group LP	(1.00	)%	Quarterly			6/20/25	270,000			(3,712	)		23,201			(26,913	)
Traded Index
CDX.NA.HY.35	(5.00	)%	Quarterly			12/20/25	3,200,000			(265,691	)		(279,680	)		13,989
CDX.NA.HY.35	(5.00	)%	Quarterly			12/20/25	1,500,000			(124,542	)		(135,170	)		10,628
CDX.NA.IG.34	(1.00	)%	Quarterly			6/20/25	854,000			(13,367	)		3,466			(16,833	)
Contracts to Sell Protectionc,d
Single Name
Government of South Africa	1.00	%	Quarterly			12/20/24	2,847,000			(112,016	)		(221,735	)		109,719	BB-
Government of South Africa	1.00	%	Quarterly			12/20/24	874,000			(34,388	)		(25,494	)		(8,894)	BB-
Government of Turkey	1.00	%	Quarterly			12/20/22	826,000			(20,766	)		(37,352	)		16,586	B+
Traded Index
CDX.NA.HY.35	5.00	%	Quarterly			12/20/25	3,010,000			249,915			124,915			125,000	Non-  Investment Grade
Total Centrally Cleared Swap Contracts									$	(32,234	)	$	(97,465	)	$	65,231
OTC Swap Contracts
Contracts to Buy Protectionc
Single Name				Counterparty
Air France-KLM	(5.00	)%	Quarterly		JPHQ	12/20/21	32,000	EUR		(212	)		745			(957	)
Air France-KLM	(5.00	)%	Quarterly		JPHQ	12/20/21	48,000	EUR		(317	)		836			(1,153	)
Air France-KLM	(5.00	)%	Quarterly		JPHQ	12/20/21	64,000	EUR		(423	)		1,490			(1,913	)
American Airlines Inc.	(5.00	)%	Quarterly		BZWS	12/20/21	44,000			397			3,556			(3,159	)
American Airlines Inc.	(5.00	)%	Quarterly		BZWS	12/20/21	73,000			659			4,804			(4,145	)
American Airlines Inc.	(5.00	)%	Quarterly		BZWS	12/20/21	73,000			659			8,479			(7,820	)
American Airlines Inc.	(5.00	)%	Quarterly		BZWS	12/20/21	147,000			1,327			10,209			(8,882	)
American Airlines Inc.	(5.00	)%	Quarterly		CITI	12/20/21	44,000			397			4,312			(3,915	)
American Airlines Inc.	(5.00	)%	Quarterly		CITI	12/20/21	147,000			1,327			9,075			(7,748	)
American Airlines Inc.	(5.00	)%	Quarterly		FBCO	12/20/21	29,000			262			1,798			(1,536	)
American Airlines Inc.	(5.00	)%	Quarterly		FBCO	12/20/21	44,000			397			3,151			(2,754	)
American Airlines Inc.	(5.00	)%	Quarterly		GSCO	12/20/21	29,000			262			1,806			(1,544	)
American Airlines Inc.	(5.00	)%	Quarterly		GSCO	12/20/21	73,000			659			9,476			(8,817	)
American Airlines Inc.	(5.00	)%	Quarterly		JPHQ	12/20/21	29,000			262			2,959			(2,697	)
American Airlines Inc.	(5.00	)%	Quarterly		JPHQ	12/20/21	73,000			659			4,878			(4,219	)
American Airlines Inc.	(5.00	)%	Quarterly		JPHQ	12/20/25	241,000			31,429			47,225			(15,796	)

54

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	MSCS	12/20/25	73,000		$	(3,459)	$	(4,429)	$	970
American Axle & Manufacturing Inc.	(5.00)%	Quarterly	BZWS	12/20/25	281,000			(13,315)		(12,791)		(524)
American Axle & Manufacturing Inc.	(5.00)%	Quarterly	GSCO	12/20/25	44,000			(2,085)		(2,669)		584
American Axle & Manufacturing Inc.	(5.00)%	Quarterly	JPHQ	12/20/25	44,000			(2,085)		(2,669)		584
Carnival Corp.	(1.00)%	Quarterly	BZWS	6/20/23	41,000			1,625		8,439		(6,814)
Carnival Corp.	(1.00)%	Quarterly	BZWS	6/20/23	41,000			1,625		8,613		(6,988)
Carnival Corp.	(1.00)%	Quarterly	CITI	6/20/23	20,000			792		4,190		(3,398)
Carnival Corp.	(1.00)%	Quarterly	CITI	6/20/25	5,000			515		1,285		(770)
Carnival Corp.	(1.00)%	Quarterly	FBCO	6/20/23	20,000			792		4,135		(3,343)
Carnival Corp.	(1.00)%	Quarterly	GSCO	6/20/23	41,000			1,625		8,063		(6,438)
Carnival Corp.	(1.00)%	Quarterly	GSCO	6/20/23	41,000			1,625		8,476		(6,851)
Dell Technologies Inc.	(1.00)%	Quarterly	BNPP	12/20/25	29,000			246		1,925		(1,679)
Dell Technologies Inc.	(1.00)%	Quarterly	BNPP	12/20/25	316,000			2,684		16,017		(13,333)
Dell Technologies Inc.	(1.00)%	Quarterly	CITI	12/20/25	37,000			314		2,030		(1,716)
Dell Technologies Inc.	(1.00)%	Quarterly	CITI	12/20/25	59,000			501		3,722		(3,221)
Dell Technologies Inc.	(1.00)%	Quarterly	JPHQ	12/20/25	190,000			1,614		8,434		(6,820)
Diamond Sports Group LLC	(5.00)%	Quarterly	BZWS	12/20/25	31,000			13,276		15,177		(1,901)
Diamond Sports Group LLC	(5.00)%	Quarterly	BZWS	12/20/25	44,000			18,844		21,564		(2,720)
Diamond Sports Group LLC	(5.00)%	Quarterly	GSCO	6/20/25	31,000			12,669		15,956		(3,287)
Diamond Sports Group LLC	(5.00)%	Quarterly	GSCO	12/20/25	1,000			428		431		(3)
Diamond Sports Group LLC	(5.00)%	Quarterly	GSCO	12/20/25	17,000			7,280		7,329		(49)
Diamond Sports Group LLC	(5.00)%	Quarterly	GSCO	12/20/25	17,000			7,280		7,333		(53)
Diamond Sports Group LLC	(5.00)%	Quarterly	GSCO	12/20/25	29,000			12,420		10,391		2,029
Diamond Sports Group LLC	(5.00)%	Quarterly	GSCO	12/20/25	33,000			14,133		13,614		519
Dow Inc.	(1.00)%	Quarterly	GSCO	6/20/25	78,000			(1,502)		(490)		(1,012)
Dow Inc.	(1.00)%	Quarterly	GSCO	6/20/25	78,000			(1,502)		(457)		(1,045)
Dow Inc.	(1.00)%	Quarterly	GSCO	6/20/25	78,000			(1,502)		(326)		(1,176)
Dow Inc.	(1.00)%	Quarterly	JPHQ	6/20/25	625,000			(12,034)		(7,381)		(4,653)
Dow Inc.	(1.00)%	Quarterly	JPHQ	6/20/25	39,000			(751)		(163)		(588)
GE Capital Funding LLC	(1.00)%	Quarterly	GSCO	12/20/25	147,000			(872)		4,943		(5,815)
GE Capital Funding LLC	(1.00)%	Quarterly	GSCO	12/20/25	221,000			(1,310)		8,384		(9,694)
GE Capital Funding LLC	(1.00)%	Quarterly	JPHQ	12/20/25	148,000			(878)		4,654		(5,532)
GE Capital Funding LLC	(1.00)%	Quarterly	JPHQ	12/20/25	221,000			(1,310)		8,669		(9,979)
Government of Brazil	(1.00)%	Quarterly	BZWS	6/20/25	201,000			6,522		20,169		(13,647)
Government of China	(1.00)%	Quarterly	BZWS	12/20/25	1,510,000			2,656		23,778		(21,122)
Government of Italy	(1.00)%	Quarterly	BOFA	6/20/24	132,000			(2,178)		2,055		(4,233)
Government of Italy	(1.00)%	Quarterly	JPHQ	6/20/24	218,000			(3,596)		1,579		(5,175)
Kimco Realty Corp.	(1.00)%	Quarterly	JPHQ	6/20/24	122,000			(2,282)		–		(2,282)
Kimco Realty Corp.	(1.00)%	Quarterly	JPHQ	6/20/25	40,000			(644)		568		(1,212)
Kohl’s Corp.	(1.00)%	Quarterly	GSCO	12/20/25	899,000			19,077		78,269		(59,192)
Kohl’s Corp.	(1.00)%	Quarterly	MSCO	12/20/25	455,000			9,655		40,156		(30,501)
Lloyds Bank PLC	(1.00)%	Quarterly	JPHQ	12/20/24	540,000	EUR		(8,851)		1,763		(10,614)
Loxam SAS	(5.00)%	Quarterly	GSCO	12/20/25	100,000	EUR		(362)		(256)		(106)
MBIA Inc.	(5.00)%	Quarterly	BZWS	6/20/22	24,000			(564)		(370)		(194)
MBIA Inc.	(5.00)%	Quarterly	CITI	6/20/21	340,000			(5,651)		(4,727)		(924)
MBIA Inc.	(5.00)%	Quarterly	CITI	6/20/22	40,000			(939)		(1,711)		772
MBIA Inc.	(5.00)%	Quarterly	CITI	12/20/24	112,000			(875)		(14,997)		14,122
MBIA Inc.	(5.00)%	Quarterly	GSCO	6/20/22	25,000			(587)		(846)		259
MBIA Inc.	(5.00)%	Quarterly	GSCO	12/20/24	244,000			(1,906)		(30,739)		28,833
NRG Energy Inc.	(5.00)%	Quarterly	MSCS	12/20/25	126,000			(17,035)		(20,229)		3,194
NRG Energy Inc.	(5.00)%	Quarterly	MSCS	12/20/25	63,000			(8,517)		(10,344)		1,827

55

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)
NRG Energy Inc.	(5.00)%	Quarterly	CITI	12/20/25	63,000		$	(8,517	)	$	(9,631	)	$	1,114
NRG Energy Inc.	(5.00)%	Quarterly	GSCO	12/20/25	63,000			(8,517	)		(9,535	)		1,018
Simon Property Group LP	(1.00)%	Quarterly	BZWS	12/20/25	625,000			(8,516	)		11,382			(19,898)
Simon Property Group LP	(1.00)%	Quarterly	JPHQ	12/20/25	291,000			(3,965	)		5,949			(9,914)
Simon Property Group LP	(1.00)%	Quarterly	MSCO	12/20/25	531,000			(7,236	)		10,856			(18,092)
Stena AB	(5.00)%	Quarterly	GSCO	6/20/24	113,000	EUR		6,585			6,716			(131)
Stena AB	(5.00)%	Quarterly	GSCO	6/20/24	186,000	EUR		10,839			10,819			20
Transocean Inc.	(5.00)%	Quarterly	BZWS	12/20/25	75,000			29,866			60,074			(30,208)
Transocean Inc.	(5.00)%	Quarterly	FBCO	12/20/24	281,000			101,616			137,809			(36,193)
Transocean Inc.	(5.00)%	Quarterly	FBCO	6/20/25	52,000			19,794			28,546			(8,752)
Transocean Inc.	(5.00)%	Quarterly	GSCO	12/20/24	84,000			30,376			2,900			27,476
Transocean Inc.	(5.00)%	Quarterly	GSCO	12/20/24	125,000			45,203			8,339			36,864
Transocean Inc.	(5.00)%	Quarterly	GSCO	12/20/24	185,000			66,900			21,290			45,610
Transocean Inc.	(5.00)%	Quarterly	GSCO	12/20/25	504,000			200,696			379,146			(178,450)
Transocean Inc.	(5.00)%	Quarterly	JPHQ	12/20/24	100,000			36,162			46,400			(10,238)
Transocean Inc.	(5.00)%	Quarterly	JPHQ	12/20/24	434,000			156,944			55,405			101,539
US Steel Corp.	(5.00)%	Quarterly	JPHQ	6/20/25	16,000			(570)			3,499			(4,069)
US Steel Corp.	(5.00)%	Quarterly	JPHQ	6/20/25	16,000			(570)			4,351			(4,921)
US Steel Corp.	(5.00)%	Quarterly	JPHQ	6/20/25	42,000			(1,497)			8,293			(9,790)
US Steel Corp.	(5.00)%	Quarterly	JPHQ	6/20/25	68,000			(2,424)			15,992			(18,416)
Contracts to Sell Protectionc,d
Single Name
Transocean Inc.	1.00%	Quarterly	BZWS	12/20/24	180,000			(87,123)			(117,750	)		30,627	CCC-
Transocean Inc.	1.00%	Quarterly	BZWS	12/20/24	73,000			(35,333)			(48,777	)		13,444	CCC-
Transocean Inc.	1.00%	Quarterly	BZWS	12/20/24	37,000			(17,909)			(25,422	)		7,513	CCC-
Transocean Inc.	1.00%	Quarterly	JPHQ	6/20/25	52,000			(26,588)			(38,435	)		11,847	CCC-
Transocean Inc.	1.00%	Quarterly	MSCO	12/20/24	270,000			(130,684)			(187,413	)		56,729	CCC-
Transocean Inc.	1.00%	Quarterly	MSCO	12/20/24	180,000			(87,123)			(124,942	)		37,819	CCC-
Transocean Inc.	1.00%	Quarterly	MSCO	12/20/24	90,000			(43,561)			(58,801	)		15,240	CCC-
Transocean Inc.	1.00%	Quarterly	MSCS	12/20/24	270,000			(130,684)			(191,014	)		60,330	CCC-
Total OTC Swap Contracts							$	183,514		$	367,362		$	(183,848)
Total Credit Default Swap Contracts							$	151,280		$	269,897		$	(118,617)

^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.

56

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

At February 28, 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 4.40%
Pay Floating Banxico Mexico 1 Month rate		Monthly		3/15/23		43,522,450	MXN	$	(5,172)
Receive Fixed 4.21%
Pay Floating rate 1-Day-MIBOR		Semi-Annually		5/12/23		289,469,086	INR		(19,538)
Receive Fixed 4.24%
Pay Floating rate 1-Day-MIBOR		Semi-Annually		5/12/23		225,530,914	INR		(13,505)
Receive Fixed 4.73%
Pay Floating Banxico Mexico 1 Month rate		Monthly		3/11/26		3,720,121	MXN		(5,593)
Receive Fixed 4.91%
Pay Floating Banxico Mexico 1 Month rate		Monthly		3/11/26		39,826,881	MXN		(44,131)
Receive Fixed 2.84%
Pay Floating CFETS China Fixing Repo 7 Day rate		Quarterly		3/17/26		16,966,997	CNY		(12,226)
Receive Fixed 2.92%
Pay Floating rate China 7-Day Repo		Quarterly		5/12/26		7,500,182,367	COP		(62,673)
Receive Fixed 3.40%
Pay Floating rate 1-Day-COPIBR		Quarterly		5/12/26		37,000,000	CNY		(11,088)
Receive Fixed 3.41%
Pay Floating rate 1-Day-COPIBR		Quarterly		5/12/26		7,049,817,633	COP		(59,619)
Receive Floating rate 6 Month-PRIBOR
Pay Fixed rate 0.98%		Annually		5/12/26		42,198,627	CZK		8,350
Receive Fixed 1.44%
Pay Floating Banxico Mexico 1 Month rate		Monthly		3/05/31		44,493,781	MXN		(119,770)
Receive Floating rate 6 Month-SOFR
Pay Fixed rate 0.98%		Semi-Annually		3/17/31		1,290,292	SGD		54,786
Receive Floating rate 6 Month-SOFR
Pay Fixed rate 1.13%		Semi-Annually		3/17/31		131,273	SGD		4,157
Receive Floating rate 6 Month-WIBOR
Pay Fixed rate 1.16%		Semi-Annually		3/17/31		3,191,119	PLN		46,761
Receive Floating rate 6 Month-WIBOR
Pay Fixed rate 1.18%		Semi-Annually		3/17/31		3,182,079	PLN		45,629
Receive Floating rate 6 Month-WIBOR
Pay Fixed rate 1.21%		Semi-Annually		3/17/31		3,183,559	PLN		42,851
Receive Floating rate 6 Month-WIBOR
Pay Fixed rate 1.23%		Semi-Annually		3/17/31		78,004	PLN		1,016
Receive Floating rate 6 Month-WIBOR
Pay Fixed rate 1.29%		Semi-Annually		3/17/31		6,463,207	PLN		73,601
Receive Fixed 5.65%
Pay Floating rate 3-Month-JIBAR		Monthly		4/30/31		37,105,000	MXN		(98,242)
Receive Fixed 6.87%
Pay Floating rate 3-Month-JIBAR		Quarterly		5/12/31		12,134,831	ZAR		(49,574)
Total Interest Rate Swap Contracts								$	(223,980)

57

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Alternative Strategies Fund (continued)

At February 28, 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

Advanced Emissions Solutions Inc.

1-Month LIBOR + 0.50

%

Monthly

GSCO

11/01/21

430

$

156

Advanced Emissions Solutions Inc.

1-Month LIBOR + 0.50

%

Monthly

GSCO

11/02/21

4,907

1,587

Advanced Emissions Solutions Inc.

1-Month LIBOR + 0.50

%

Monthly

GSCO

11/03/21

2,468

697

Advanced Emissions Solutions Inc.

1-Month LIBOR + 0.50

%

Monthly

GSCO

11/04/21

1,243

321

Advanced Emissions Solutions Inc.

1-Month LIBOR + 0.40

%

Monthly

GSCO

11/08/21

974

250

Advanced Emissions Solutions Inc.

1-Month LIBOR + 0.50

%

Monthly

GSCO

11/09/21

41

10

Advanced Emissions Solutions Inc.

1-Month LIBOR + 0.50

%

Monthly

GSCO

11/10/21

27

7

Advanced Emissions Solutions Inc.

1-Month LIBOR + 0.50

%

Monthly

GSCO

11/24/21

903

36

Alexion Pharmaceuticals Inc.

1-Day FEDEF + 0.40

%

Monthly

MSCS

11/22/22

5,149,399

(75,655)

Amundi SA

1-Day EONIA + 0.40

%

Monthly

MSCS

3/14/25

266,038

EUR

101,718

Anima Holding SpA

1-Month EURIBOR + 0.40

%

Monthly

MSCS

12/21/21

1,022,388

EUR

(66,227)

Barclays PLC

1-Month LIBOR + 0.40

%

Monthly

MSCS

4/16/21

678,467

GBP

82,506

BHP Group PLC

1-Day FEDEF + 0.40

%

Monthly

MSCS

11/22/22

523,119

(6,403)

BMF IBOV

1-Day FEDEF + 1.00

%

Monthly

MSCS

12/23/22

1,803,114

(211,269)

BNP Paribas SA

1-Month LIBOR + 0.40

%

Monthly

MSCS

3/14/25

1,067,115

EUR

733,150

Brookfield Property Partners

1-Month LIBOR + 0.65

%

Monthly

BZWS

1/05/22

1,238,536

(68,734)

Brookfield Property Partners

1-Day FEDEF + 1.00

%

Monthly

MSCS

11/22/22

2,784,586

295

Bureau Veritas SA

1-Month EURIBOR + 0.40

%

Monthly

GSCO

12/21/21

162,339

EUR

2,674

Bureau Veritas SA

1-Month EURIBOR + 0.40

%

Monthly

MSCS

3/14/25

758,186

EUR

249,301

Carrefour SA

1-Month EURIBOR + 0.40

%

Monthly

BZWS

1/14/22

427,089

EUR

(4,239)

China Jushi Co. Ltd.

1-Day FEDEF + 0.30

%

Monthly

MSCS

9/28/22

1,030,615

(197,943)

Clearway Energy Inc.

1-Month LIBOR + 0.35

%

Monthly

JPHQ

3/04/21

27,591

8,172

Clearway Energy Inc.

1-Month LIBOR + 0.35

%

Monthly

JPHQ

1/20/22

270,991

(46,212)

Croda International PLC

1-Month LIBOR + 0.40

%

Monthly

MSCS

4/16/21

772,774

GBP

(43,764)

Danone SA

1-Month EURIBOR + 0.40

%

Monthly

MSCO

12/21/21

1,851,325

EUR

129,928

Danone SA

1-Month LIBOR + 0.40

%

Monthly

MSCS

3/14/25

3,053,835

EUR

211,771

Dialog Semiconductor PLC

1-Day EONIA + 0.65

%

Monthly

MSCS

9/06/21

417,043

EUR

(5,192)

Electricite de France SA

1-Day EONIA + 0.40

%

Monthly

MSCS

9/23/22

1,250,621

EUR

(106,407)

Elisa OYJ

1-Month EURIBOR + 0.40

%

Monthly

MSCO

12/21/21

212,989

EUR

25,421

Elisa OYJ

1-Month EURIBOR + 0.40

%

Monthly

MSCS

3/14/25

282,271

EUR

103,411

Energy Transfer Operating LP

1-Month LIBOR + 0.90

%

Monthly

GSCO

11/05/21

107,568

43,535

Energy Transfer Operating LP

1-Month LIBOR + 0.40

%

Monthly

BOFA

11/09/21

107,996

9,627

Energy Transfer Operating LP

1-Month LIBOR + 0.65

%

Monthly

GSCO

1/20/22

193,154

17,216

Engie SA

1-Day EONIA + 0.40

%

Monthly

MSCS

9/23/22

2,950,080

EUR

(276,947)

Entain PLC

1-Month GBP LIBOR + 0.40

%

Monthly

BZWS

2/28/22

1,716,290

GBP

11,905

Enterprise Products Partners LP

1-Month LIBOR + 0.90

%

Monthly

GSCO

11/16/21

124,171

22,882

ESG Core Investments BV

1-Day EONIA + 0.65

%

Monthly

MSCS

9/06/21

41,835

EUR

(301)

Evolution Gaming Group

1-Week STIBOR + 0.65

%

Monthly

MSCS

2/06/23

4,198,514

SEK

6,116

Ferguson PLC

1-Day EONIA + 0.65

%

Monthly

MSCO

9/23/22

825,839

171,758

Frasers Group PLC

1-Month LIBOR + 0.40

%

Monthly

MSCS

4/16/21

655,664

GBP

38,792

G4S PLC

1-Month LIBOR + 0.40

%

Monthly

BZWS

10/14/21

4,408,231

GBP

(226)

G4S PLC

1-Day SONIA + 0.65

%

Monthly

GSCO

2/08/22

780,888

GBP

124,329

GrandVision NV

1-Month LIBOR + 0.05

%

Monthly

BZWS

5/11/21

5,209,632

EUR

2,681

GrandVision NV

1-Day EONIA + 0.65

%

Monthly

MSCS

9/06/21

1,417,546

EUR

(48,612)

HeidelbergCement AG

1-Month EURIBOR + 0.40

%

Monthly

MSCS

12/21/21

1,813,014

EUR

86,265

Hermes International

1-Month EURIBOR + 0.40

%

Monthly

MSCO

12/21/21

377,062

EUR

8,465

Hikma Pharmaceuticals PLC

1-Month LIBOR + 0.40

%

Monthly

MSCS

4/16/21

106,739

GBP

(3,726)

Iliad SA

1-Month LIBOR + 0.40

%

Monthly

MSCS

3/14/25

120,001

EUR

47,128

ITV PLC

1-Month LIBOR + 0.40

%

Monthly

MSCS

4/16/21

1,268,757

GBP

(4,368)

KAZ Minerals PLC

1-Month LIBOR + 0.40

%

Monthly

BZWS

1/21/22

1,803,128

GBP

(35,115)

Kering SA

1-Month EURIBOR + 0.40

%

Monthly

MSCO

12/21/21

695,913

EUR

(39,714)

Kering SA

1-Month EURIBOR + 0.40

%

Monthly

MSCS

3/14/25

1,035,973

EUR

334,610

LVMH Moet Hennessy Louis Vuitton SE .

1-Day EONIA + 0.40

%

Monthly

MSCS

3/14/25

264,546

EUR

216,700

Maxim Integrated Products Inc.

1-Day FEDEF + 0.40

%

Monthly

MSCO

11/22/22

990,723

153,311

58

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)

McKesson Europe AG

1-Day EONIA + 0.65

%

Monthly

MSCS

11/03/21

1,424,560

EUR

$

(21,030)

Monmouth Real Estate Investment Corp.

1-Month LIBOR + 0.35

%

Monthly

BZWS

1/19/22

594,309

(9,601)

Natixis SA

1-Month EURIBOR + 0.40

%

Monthly

BZWS

2/11/22

721,252

EUR

(2,355)

Nestle SA

1-Month LIBOR + 0.40

%

Monthly

MSCS

1/20/22

541,481

CHF

(30,779)

Rolls-Royce Holdings PLC

1-Day SONIA + 0.40

%

Monthly

MSCS

9/26/22

764,892

GBP

113,514

RSA Insurance Group PLC

1-Month LIBOR + 0.40

%

Monthly

BZWS

9/07/21

2,677,184

GBP

(137)

RSA Insurance Group PLC

1-Day SONIA + 0.65

%

Monthly

MSCO

2/08/22

1,032,507

GBP

(2,404)

Ryanair Holdings PLC

1-Month EURIBOR + 0.40

%

Monthly

MSCS

12/21/21

607,454

EUR

79,069

Signature Aviation PLC

1-Month LIBOR + 0.75

%

Monthly

BZWS

12/20/21

4,303,073

(13,142)

Siltronic AG

1-Day EONIA + 0.65

%

Monthly

MSCS

11/03/21

351,209

EUR

(2,430)

Siltronic AG

1-Month EUR LIBOR + 0.40

%

Monthly

BZWS

2/28/22

2,520,318

EUR

(7,673)

Smith & Nephew PLC

1-Month LIBOR + 0.40

%

Monthly

MSCO

4/16/21

2,431,960

GBP

(346,850)

Smiths Group PLC

1-Month LIBOR + 0.40

%

Monthly

MSCS

4/16/21

820,062

GBP

1,725

Societe Generale SA

1-Month LIBOR + 0.40

%

Monthly

MSCS

3/14/25

673,759

EUR

277,912

Stroeer SE & Co. KGaA

1-Month EURIBOR + 0.40

%

Monthly

MSCS

12/21/21

1,029,175

EUR

4,278

Suez SA

1-Month EURIBOR + 0.40

%

Monthly

BZWS

9/02/21

695,671

EUR

2,450

Suez SA

1-Day EONIA + 0.65

%

Monthly

MSCO

9/06/21

672,694

EUR

44,129

TGOOD

1-Day FEDEF + 0.30

%

Monthly

MSCS

9/28/22

1,806,643

(307,086)

Tianqi Lithium Corp.

1-Day FEDEF + 0.55

%

Monthly

MSCS

1/12/23

355,538

(46,846)

Vodafone Group PLC

1-Day SONIA + 0.65

%

Monthly

MSCS

2/08/22

951,494

GBP

117,110

William Hill PLC

1-Month LIBOR + 0.40

%

Monthly

BZWS

9/28/21

4,623,120

GBP

(12,116)

William Hill PLC

1-Day SONIA + 0.65

%

Monthly

MSCO

2/08/22

962,369

GBP

(6,593)

Willis Towers Watson PLC

1-Day FEDEF + 0.40

%

Monthly

MSCS

11/22/22

2,527,961

189,441

1,726,263

Equity Contracts - Shortb

AGL Energy Ltd.

1-Day RBACR - 0.50

%

Monthly

MSCS

9/26/22

1,268,733

AUD

77,898

Analog Devices Inc.

1-Day FEDEF - 0.35

%

Monthly

MSCO

2/04/22

1,047,065

(163,696)

Aon PLC

1-Day FEDEF - 0.35

%

Monthly

MSCS

2/04/22

2,732,722

(296,276)

AstraZeneca PLC

1-Day FEDEF - 0.35

%

Monthly

MSCS

2/04/22

3,563,026

83,614

BHP Group PLC

1-Day FEDEF - 2.02

%

Monthly

MSCS

2/04/22

624,865

4,528

Brookfield Asset Management

1-Month LIBOR - 0.35

%

Monthly

BZWS

2/02/22

364,202

30,721

Brookfield Asset Management

1-Day FEDEF - 0.35

%

Monthly

BZWS

2/04/22

879,878

(24,081)

Carnival Corp.

1-Month LIBOR - 0.40

%

Monthly

MSCS

9/20/22

639,772

(185,198)

Colruyt SA

1-Day EONIA - 0.40

%

Monthly

MSCS

3/14/25

1,373,519

EUR

(350,742)

DJ EURO STOXX 50 Index

1-Day EONIA - 0.45

%

Monthly

MSCO

3/22/22

307,887

EUR

(181,351)

Elisa OYJ

1-Day EONIA - 0.40

%

Monthly

MSCS

3/14/25

333,205

EUR

(41,817)

Hannover Rueck SE

1-Day EONIA - 0.35

%

Monthly

MSCS

3/14/25

466,090

EUR

(110,030)

Hennes & Mauritz AB

1-Week STIBOR - 0.40

%

Monthly

MSCS

3/14/25

4,638,427

SEK

(263,665)

JD Sports Fashion PLC

1-Day SONIA - 0.30

%

Monthly

MSCS

4/16/21

159,081

GBP

(9,026)

L’Oreal SA

1-Day EONIA - 0.35

%

Monthly

MSCS

3/14/25

455,260

EUR

(209,904)

Marks & Spencer Group PLC

1-Day SONIA - 0.30

%

Monthly

MSCS

4/16/21

167,092

GBP

(18,727)

Morgan Stanley MSPSCCK2 Index

1-Day FEDEF - 0.32

%

Monthly

MSCO

9/21/22

1,534,874

(164,230)

Morgan Stanley MSPSFERL Index

1-Day FEDEF - 0.35

%

Monthly

MSCO

9/21/22

279,045

(24,399)

Morgan Stanley MSPSIYR Index

1-Day FEDEF - 0.35

%

Monthly

MSCS

9/21/22

248,043

513

Morgan Stanley MSPSPRMW Index

1-Day FEDEF - 0.55

%

Monthly

MSCO

9/21/22

574,402

(733)

Morgan Stanley MSPSVOD Index

1-Day FEDEF - 0.39

%

Monthly

MSCO

9/21/22

655,308

75,147

Morgan Stanley MSPSXLU Index

1-Day FEDEF - 0.35

%

Monthly

MSCO

9/21/22

922,020

54,671

Morgan Stanley MSPSXOP Index

1-Day FEDEF - 0.35

%

Monthly

MSCS

9/21/22

15,886

(3,673)

Morgan Stanley MSPSXPOH Index

1-Day FEDEF - 0.35

%

Monthly

MSCO

9/21/22

902,016

(5,474)

MSCI World Utilities Sector Gross Index .

1-Day FEDEF - 0.55

%

Monthly

MSCS

9/28/22

5,942,854

188,539

Next PLC

1-Day SONIA - 0.30

%

Monthly

MSCS

4/16/21

554,554

GBP

12,371

Nike Inc.

1-Day FEDEF - 0.35

%

Monthly

MSCO

3/15/21

954,482

49,481

Severn Trent PLC

1-Day SONIA - 0.35

%

Monthly

MSCS

9/26/22

858,781

GBP

93,543

Swisscom AG

1-Day SARON - 0.35

%

Monthly

MSCS

3/14/25

639,878

CHF

19,401

Tesla Inc.

1-Day FEDEF - 0.35

%

Monthly

MSCS

3/15/21

964,979

154,921

Tesla Inc.

1-Month LIBOR - 0.35

%

Monthly

GSCO

12/31/25

448,177

(9,815)

United Utilities Group PLC

1-Day SONIA - 0.35

%

Monthly

MSCS

9/26/22

972,362

GBP

134,995

Valmet OYJ

1-Day EONIA - 0.30

%

Monthly

BZWS

3/08/21

31,645

EUR

216

(1,082,278)

59

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)

Interest Rate Contracts - Longa

Government of Egypt

1-Day FEDEF

Monthly

CITI

7/13/21

454,284

$

4,504

Government of Indonesia

3-Month LIBOR + 1.00%

Monthly

BOFA

5/18/21

2,047,666

166,440

Government of Indonesia

3-Month LIBOR + 0.60%

Monthly

DBAB

6/15/32

1,044,850

67,202

238,146

Total Return Swap Contracts

$

882,131

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

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

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

  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.	CAD	Canadian Dollar	BADLAR	Argentina Deposit Rates BADLAR Private Banks ARS
BZWS	Barclays Bank PLC	CHF	Swiss Franc	CAC	Cotation Assistee en Continu
CITI	Citigroup, Inc.	CNY	Chinese Yuan	CFETS	China Foreign Exchange Trade System
DBAB	Deutsche Bank, AG	COP	Colombian Peso	CLO	Collateralized Loan Obligation
FBCO	Credit Suisse Group AG	CZK	Czech Koruna	COPIBR	Colombia Overnight Interbank Rate
GSCO	The Goldman Sachs Group, Inc.	EGP	Egyptian Pound	DAX	Deutscher Aktienindex
HSBC	HSBC Bank USA, N.A	EUR	Euro	DIP	Debtor-In-Possession
JPHQ	JP Morgan Chase & Co.	GBP	British Pound	DJIA	Dow Jones Industrial Average
MSCO	Morgan Stanley & Co. LLC	GHS	Ghanaian Cedi	DR	Discount Rate
MSCS	Morgan Stanley Capital Services LLC	IDR	Indonesian Rupiah	EONIA	Euro OverNight Index Average
UBSW	UBS AG	INR	Indian Rupee	ETF	Exchange Traded Fund
		MXN	Mexican Peso	EURIBOR	Euro Interbank Offered Rate
		PLN	Polish Zloty	FEDEF	Federal Funds Effective Rate
		RUB	Russian Ruble	FHLMC	Federal Home Loan Mortgage Corp.
		SEK	Singapore Dollar	FNMA	Federal National Mortgage Association
		SGD	Swedish Krona	FRN	Floating Rate Note
		UGX	Ugandan Shilling	FTSE	Financial Times Stock Exchange
		USD	United States Dollar	GO	General Obligation
		ZAR	South African Rand	IO	Interest Only
				JIBAR	Johannesburg Interbank Agreed Rate
Index				LIBOR	London InterBank Offered Rate
CDX.NA.HY	CDX North America High Yield Index			MIB	Milano Italia Borsa
CDX.NA.IG	CDX North America Investment Grade Index			MIBOR	Mumbai Interbank Offered Rate
				MSCI	Morgan Stanley Capital International
				MTN	Medium Term Note
				PIK	Payment In-Kind
				PRIBOR	Prague Interbank Offered Rate
				RBACR	Reserve Bank of Australia Cash Rate
				REIT	Real Estate Investment Trust
				SARON	Swiss Average Rate Overnight
				SOFR	Secured Overnight Financing Rate
				SONIA	Sterling Overnight Index Average
				SPDR	Standard & Poor’s Depositary Receipt
				STIBOR	Stockholm Interbank Offered Rate
				TOPIX	Tokyo Price Index
				WIBOR	Warsaw Interbank Offered Rate

60

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Statement of Investments, February 28, 2021 (unaudited)

Franklin K2 Long Short Credit Fund

	Country	Shares/         Warrants		Value
Common Stocks and Other Equity Interests 2.5%
Biotechnology 0.0%†
aCytoDyn Inc.	United States		2,389	$	10,798
Chemicals 0.0%†
Advanced Emissions Solutions Inc.	United States		3,319		18,918
Commercial Services & Supplies 0.1%
Covanta Holding Corp.	United States		5,389		75,715
Diversified Financial Services 0.4%
a2MX Organic SA, wts., 11/16/25	France		1,165		843
aAequi Acquisition Corp.	United States		7,149		76,852
aAfrican Gold Acquisition Corp.	United States		1,147		11,470
aAjax I	United States		547		6,788
Bluescape Opportunities Acquisition Corp., wts., 1/31/26	United States		3,078		6,618
a,bExecutive Network Partnering Corp.	United States		2,290		59,517
aFigure Acquisition Corp. I	United States		1,381		14,639
aFreedom Acquisition I Corp.	United States		573		5,902
aFusion Acquisition Corp. II	United States		956		9,627
aGoal Acquisitions Corp.	United States		2,708		28,272
aInvestindustrial Acquisition Corp.	United Kingdom		1,741		19,295
aJoff Fintech Acquisition Corp.	United States		1,575		16,301
aLakestar SPAC I SE	Luxembourg		624		8,342
aLakestar SPAC I SE, wts., 12/31/25	Luxembourg		210		329
aLeo Holdings III Corp.	Bahamas		382		3,916
aMDH Acquisition Corp.	United States		1,367		13,943
aThe Music Acquisition Corp.	United States		1,030		10,609
aPopulation Health Investment Co. Inc.	United States		360		3,931
aSilverBox Engaged Merger Corp I	United States		789		8,442
aStarboard Value Acquisition Corp., A	United States		265		2,761
aSupernova Partners Acquisition Co. Inc.	United States		654		7,449
aTekkorp Digital Acquisition Corp.	United States		1,314		14,704
aTWC Tech Holdings II Corp.	United States		1,807		19,732
aTwelve Seas Investment Co. II	United States		3,059		30,437
					380,719
Diversified Telecommunication Services 0.2%
aLiberty Global PLC, C	United Kingdom		5,067		123,128
Telecom Italia SpA	Italy		266,225		126,407
Telecom Italia SpA, RSP	Italy		32,273		17,302
					266,837
Electric Utilities 0.0%†
a,bPG&E Corp.	United States		4,010		42,145
Equity Real Estate Investment Trusts (REITs) 0.3%
EPR Properties	United States		1,193		53,900
bVICI Properties Inc.	United States		10,652		303,582
					357,482
Hotels, Restaurants & Leisure 0.3%
Carnival PLC	United States		12,183		271,342
Independent Power & Renewable Electricity Producers 0.4%
Clearway Energy Inc., A	United States		12,246		320,233
cClearway Energy Inc., C	United States		2,304		63,268
					383,501
Oil, Gas & Consumable Fuels 0.0%†
a,dBighorn Permian Resource LLC, wts., 2/01/24	United States		1,439		—
Paper & Forest Products 0.0%†
a,dTopco Associates LLC	United Kingdom		100,439		—

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

61

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)
Professional Services 0.0%†
a,d,eAcosta Inc.	United States		923		$	6,120
Software 0.3%
aPluralsight Inc., A	United States		13,371			275,309
Technology Hardware, Storage & Peripherals 0.5%
a,bDell Technologies Inc., C	United States		5,933			480,988
Total Common Stocks and Other Equity Interests (Cost $2,064,186)						2,569,874
Convertible Preferred Stocks 0.1%
Gas Utilities 0.0%†
Spire Inc., 7.50%, cvt. pfd., A	United States		476			24,985
Professional Services 0.1%
a,d,eAcosta Inc., cvt. pfd.	United States		861			43,412
Total Convertible Preferred Stocks (Cost $74,181)						68,397
Preferred Stocks 0.7%
Banks 0.1%
Bank of Montreal, 3.852%, pfd., 27	Canada		478			8,511
Royal Bank of Canada, pfd.,
AZ, 3.70%	Canada		1,203			21,109
BB, 3.65%	Canada		1,015			18,137
BD, 3.20%	Canada		1,372			25,325
The Toronto-Dominion Bank, pfd.,
1, 3.662%	Canada		1,774			31,811
3, 3.681%	Canada		597			10,719
						115,612
Diversified Financial Services 0.0%†
a2MX Organic SA, pfd.	France		1,161			14,568
Electric Utilities 0.3%
SCE Trust II, 5.10%, pfd.	United States		1,490			35,909
SCE Trust III, 5.75%, pfd., H	United States		1,342			32,987
SCE Trust IV, 5.375%, pfd., J	United States		3,837			91,704
SCE Trust V, 5.45%, pfd., K	United States		1,605			40,045
bSCE Trust VI, 5.00%, pfd.	United States		3,404			79,313
						279,958
Internet & Direct Marketing Retail 0.3%
Qurate Retail Inc., 8.00%, pfd.	United States		3,445			339,746
Thrifts & Mortgage Finance 0.0%†
FHLMC, 8.375%, pfd., Z	United States		1,093			5,760
FNMA, 8.25%, pfd., S	United States		1,075			6,095
						11,855
Total Preferred Stocks (Cost $714,974)						761,739
		Principal Amount*
Convertible Bonds 0.8%
Airlines 0.1%
fAir France-KLM, senior note, Reg S, 0.125%, 3/25/26	France		2,683	EUR		48,315

62

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country	Principal         Amount*			Value
Convertible Bonds (continued)
Mortgage Real Estate Investment Trusts (REITs) 0.7%
Apollo Commercial Real Estate Finance Inc., senior note, 4.75%, 8/23/22	United States		360,000		$	353,700
Blackstone Mortgage Trust Inc., senior note, 4.375%, 5/05/22	United States		360,000			367,403
						721,103
Software 0.0%†
Pluralsight Inc., senior note, 0.375%, 3/01/24	United States		15,000			14,661
Total Convertible Bonds (Cost $757,528)						784,079
Corporate Bonds and Notes 25.6%
Aerospace & Defense 1.0%
The Boeing Co., senior bond, 5.805%, 5/01/50	United States		300,000			387,591
Spirit Aerosystems Inc.,
senior note, 3.95%, 6/15/23	United States		400,000			393,750
gsenior secured note, 144A, 5.50%, 1/15/25	United States		118,000			122,835
gTriumph Group Inc., senior secured note, 144A, 8.875%, 6/01/24	United States		109,000			120,649
						1,024,825
Airlines 0.2%
American Airlines 2013-2 Class A Pass-Through Trust, 4.95%, 7/15/24	United States		12,667			12,462
gHawaiian Brand Intellectual Property Ltd. / Hawaiianmiles Loyalty Ltd., senior secured note, 144A, 5.75%, 1/20/26	United States		173,000			181,683
						194,145
Automobiles 0.2%
gAston Martin Capital Holdings Ltd., senior secured note, 144A, 10.50%, 11/30/25	United Kingdom		58,000			63,401
General Motors Co., senior bond, 5.95%, 4/01/49	United States		111,000			145,300
						208,701
Banks 0.6%
h,iJPMorgan Chase & Co., II, junior sub. bond, FRN, 4.00%, (SOFR + 2.75%), Perpetual	United States		360,000			358,245
fVTB Bank OJSC Via VTB Capital SA, loan participation, sub. senior note, Reg S, 6.95%, 10/17/22	Russia		200,000			213,639
						571,884
Capital Markets 0.8%
geG Global Finance PLC, senior secured note, 144A,
4.375%, 2/07/25	United Kingdom		192,000	EUR		228,547
6.25%, 10/30/25	United Kingdom		161,000	EUR		198,952
gStonex Group Inc., senior secured note, 144A, 8.625%, 6/15/25	United States		400,000			425,750
						853,249
Communications Equipment 0.4%
gEntercom Media Corp., senior note, 144A, 7.25%, 11/01/24	United States		400,000			405,310
Construction & Engineering 0.4%
Fluor Corp.,
senior bond, 4.25%, 9/15/28	United States		28,000			28,630
senior note, 1.75%, 3/21/23	United States		100,000	EUR		119,073
gPowerteam Services LLC, senior secured note, 144A, 9.033%, 12/04/25	United States		273,000			303,030
						450,733
Construction Materials 0.2%
gCP Atlas Buyer Inc., senior note, 144A, 7.00%, 12/01/28	United States		182,000			189,394

63

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country	Principal         Amount*			Value
Corporate Bonds and Notes (continued)
Diversified Consumer Services 0.7%
gAMN Healthcare Inc., senior note, 144A, 4.00%, 4/15/29	United States		360,000		$	367,092
gMPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28	United States		400,000			397,500
						764,592
Diversified Financial Services 0.5%
gAdvisor Group Holdings Inc., senior note, 144A, 10.75%, 8/01/27	United States		360,000			404,257
gLBM Acquisition LLC, senior note, 144A, 6.25%, 1/15/29	United States		136,000			138,068
						542,325
Diversified Telecommunication Services 0.6%
g Frontier Communications Corp., 144A,
secured note, 6.75%, 5/01/29	United States		156,000			163,656
senior secured note, 5.875%, 10/15/27	United States		125,000			133,984
senior secured note, 5.00%, 5/01/28	United States		282,000			290,904
						588,544
Electric Utilities 0.9%
fEskom Holdings SOC Ltd., senior bond, Reg S, 8.45%, 8/10/28	South Africa		200,000			224,790
Pacific Gas and Electric Co.,
secured bond, 4.55%, 7/01/30	United States		30,000			33,490
secured bond, 4.50%, 7/01/40	United States		320,617			343,385
bsecured bond, 4.95%, 7/01/50	United States		60,000			65,111
secured note, 3.15%, 1/01/26	United States		200,720			213,469
						880,245
Energy Equipment & Services 0.3%
gTransocean Inc., senior note, 144A, 7.50%, 1/15/26	United States		507,000			324,480
Equity Real Estate Investment Trusts (REITs) 0.9%
iStar Inc., senior note, 5.50%, 2/15/26	United States		375,000			384,141
g Uniti Group LP / Uniti Group Finance Inc. / CSL Capital LLC, 144A,
senior note, 6.50%, 2/15/29	United States		62,000			62,543
senior secured note, 6.00%, 4/15/23	United States		500,000			508,437
						955,121
Food & Staples Retailing 0.8%
f,iCasino Guichard Perrachon SA, E, junior sub. note, Reg S, 3.992%, Perpetual	France		600,000	EUR		485,901
gThe Fresh Market Inc., senior note, first lien, 144A, 9.75%, 5/01/23	United States		360,000			372,375
						858,276
Health Care Providers & Services 1.8%
gCHS/Community Health Systems Inc., secured note, 144A, 6.875%, 4/15/29	United States		218,000			224,039
Encompass Health Corp., senior bond, 4.625%, 4/01/31	United States		171,000			181,858
gEnvision Healthcare Corp., senior note, 144A, 8.75%, 10/15/26	United States		500,000			359,280
gLifePoint Health Inc., senior note, 144A, 5.375%, 1/15/29	United States		187,000			188,169
gTeam Health Holdings Inc., senior note, 144A, 6.375%, 2/01/25	United States		500,000			452,500
gUS Acute Care Solutions LLC, senior secured note, 144A, 6.375%, 3/01/26	United States		407,000			416,666
						1,822,512
Hotels, Restaurants & Leisure 0.9%
Carnival PLC, senior bond, 1.00%, 10/28/29	United States		100,000	EUR		91,403
b,gGolden Nugget Inc., senior note, 144A, 6.75%, 10/15/24	United States		127,000			129,302
gRoyal Caribbean Cruises Ltd., 144A,
bsenior note, 9.125%, 6/15/23	United States		151,000			165,911

64

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country	Principal Amount*		Value
Corporate Bonds and Notes (continued)
Hotels, Restaurants & Leisure (continued)
g Royal Caribbean Cruises Ltd., 144A, (continued)
senior secured note, 11.50%, 6/01/25	United States		127,000	$	148,749
gScientific Games International Inc., senior note, 144A, 7.00%, 5/15/28	United States		400,000		424,556
					959,921
Household Durables 0.7%
gK. Hovnanian Enterprises Inc., senior secured note, 144A, 7.75%, 2/15/26	United States		626,000		669,820
Household Products 0.4%
Central Garden & Pet Co., senior note, 4.125%, 10/15/30	United States		360,000		374,494
Insurance 0.4%
g,hAmbac LSNI LLC, senior secured note, 144A, FRN, 6.00%, (3- Month USD LIBOR + 5.00%), 2/12/23	Cayman Islands		7		7
Genworth Holdings Inc., senior note, 4.90%, 8/15/23	United States		400,000		381,250
					381,257
Internet & Direct Marketing Retail 0.5%
gArches Buyer Inc., senior note, 144A, 6.125%, 12/01/28	United States		502,000		519,876
IT Services 0.3%
gAustin Bidco Inc., senior note, 144A, 7.125%, 12/15/28	United States		286,000		294,044
Marine 0.1%
b,gStena International SA, senior secured bond, 144A, 5.75%, 3/01/24	Sweden		100,000		100,614
Media 3.9%
gClear Channel Outdoor Holdings Inc., senior note, 144A, 7.75%, 4/15/28	United States		364,000		370,143
Clear Channel Worldwide Holdings Inc., senior note, 9.25%, 2/15/24	United States		360,000		375,525
gCumulus Media New Holdings Inc., senior secured note, 144A, 6.75%, 7/01/26	United States		360,000		368,267
gDiamond Sports Group LLC / Diamond Sports Finance Co., 144A,
senior note, 6.625%, 8/15/27	United States		68,000		35,105
senior secured note, 5.375%, 8/15/26	United States		595,000		421,528
gGray Television Inc., senior note, 144A, 4.75%, 10/15/30	United States		360,000		360,675
iHeartCommunications Inc., senior note, 8.375%, 5/01/27	United States		400,000		424,652
Liberty Interactive LLC, senior bond, 8.25%, 2/01/30	United States		360,000		420,525
gRadiate Holdco LLC / Radiate Finance Inc., senior note, 144A, 6.50%, 9/15/28	United States		360,000		378,675
gTerrier Media Buyer Inc., senior note, 144A, 8.875%, 12/15/27	United States		360,000		386,325
gUnivision Communications Inc., senior secured note, 144A, 6.625%, 6/01/27	United States		187,000		195,298
gUrban One Inc., senior secured note, 144A, 7.375%, 2/01/28	United States		306,000		308,567
					4,045,285
Metals & Mining 1.4%
gCSN Inova Ventures, senior note, 144A, 6.75%, 1/28/28	Brazil		200,000		216,250
gFirst Quantum Minerals Ltd., senior note, 144A, 6.875%, 10/15/27	Zambia		187,000		203,129
gTaseko Mines Ltd., senior secured note, 144A, 7.00%, 2/15/26	Canada		387,000		395,305
U.S. Steel Corp.,
senior note, 6.875%, 8/15/25	United States		400,000		395,000
senior note, 6.875%, 3/01/29	United States		67,000		65,786
b,gsenior secured note, 144A, 12.00%, 6/01/25	United States		139,000		167,036
					1,442,506

65

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country	Principal Amount*		Value
Corporate Bonds and Notes (continued)
Mortgage Real Estate Investment Trusts (REITs) 1.1%
gBrookfield Property REIT Inc. / BPR Cumulus LLC / BPR Nimbus LLC / GGSI Sellco LLC, senior secured note, 144A, 5.75%, 5/15/26	United States		425,000	$	438,016
gNew Residential Investment Corp., senior note, 144A, 6.25%, 10/15/25	United States		720,000		724,590
					1,162,606
Multiline Retail 0.3%
Kohl’s Corp.,
bsenior bond, 5.55%, 7/17/45	United States		123,000		140,056
senior note, 9.50%, 5/15/25	United States		136,000		175,766
					315,822
Oil, Gas & Consumable Fuels 3.4%
Energy Transfer Operating LP, senior bond,
5.30%, 4/15/47	United States		32,000		34,830
6.25%, 4/15/49	United States		69,000		82,628
gHurricane Finance PLC, senior note, 144A, 8.00%, 10/15/25	United Kingdom		134,000		202,605
g Moss Creek Resources Holdings Inc., senior note, 144A,
7.50%, 1/15/26	United States		34,000		28,284
10.50%, 5/15/27	United States		551,000		488,847
gNorthern Oil And Gas Inc., senior note, 144A, 8.125%, 3/01/28	United States		400,000		395,130
Occidental Petroleum Corp.,
senior bond, 6.125%, 1/01/31	United States		125,000		139,884
senior note, 5.50%, 12/01/25	United States		398,000		422,135
Petrobras Global Finance BV, senior bond,
6.90%, 3/19/49	Brazil		153,000		171,574
6.75%, 6/03/50	Brazil		154,000		168,322
Petroleos Mexicanos,
senior bond, 5.95%, 1/28/31	Mexico		87,000		84,140
senior bond, 6.375%, 1/23/45	Mexico		152,000		130,340
senior bond, 6.75%, 9/21/47	Mexico		165,000		145,489
senior bond, 6.35%, 2/12/48	Mexico		283,000		241,257
senior bond, 6.95%, 1/28/60	Mexico		101,000		89,501
senior note, 3.50%, 1/30/23	Mexico		135,000		136,671
gsenior note, 144A, 6.875%, 10/16/25	Mexico		47,000		51,107
senior note, 4.50%, 1/23/26	Mexico		53,000		52,218
Sunoco Logistics Partners Operations LP, senior bond,
5.30%, 4/01/44	United States		39,000		42,409
5.35%, 5/15/45	United States		31,000		33,448
gVine Oil & Gas LP / Vine Oil & Gas Finance Corp., senior note, 144A, 8.75%, 4/15/23	United States		400,000		401,000
					3,541,819
Paper & Forest Products 0.0%†
gPaper Industries Intermediate Financing SARL, senior secured note, 144A, 6.00%, 3/01/25	Luxembourg		52,666		43,528
Personal Products 0.2%
g,jEdgewell Personal Care Co., senior note, 144A, 4.125%, 4/01/29	United States		207,000		206,741
Real Estate Management & Development 0.4%
gRealogy Group LLC / Realogy Co.-Issuer Corp., senior note, 144A, 9.375%, 4/01/27	United States		344,000		379,045
Software 0.2%
b,gVeritas U.S. Inc. / Veritas Bermuda Ltd., senior secured note, 144A, 7.50%, 9/01/25	United States		163,000		169,349

66

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country	Principal Amount*		Value
Corporate Bonds and Notes (continued)
Specialty Retail 0.8%
gCarvana Co., senior note, 144A,
5.625%, 10/01/25	United States		73,000	$	76,193
5.875%, 10/01/28	United States		81,000		85,354
gGuitar Center Inc., senior secured note, 144A, 8.50%, 1/15/26	United States		222,000		233,795
gStaples Inc., senior note, 144A, 10.75%, 4/15/27	United States		400,000		382,500
					777,842
Thrifts & Mortgage Finance 0.3%
gHome Point Capital Inc., senior note, 144A, 5.00%, 2/01/26	United States		273,000		271,976
Total Corporate Bonds and Notes (Cost $25,074,981)					26,290,881
Corporate Bonds and Notes in Reorganization 0.6%
Diversified Telecommunication Services 0.6%
k Frontier Communications Corp.,
senior bond, 7.125%, 1/15/23	United States		124,000		66,263
senior bond, 7.625%, 4/15/24	United States		24,000		13,005
senior bond, 6.875%, 1/15/25	United States		65,000		34,491
senior bond, 7.875%, 1/15/27	United States		4,000		2,114
senior bond, 9.00%, 8/15/31	United States		141,000		74,377
senior bond, 7.45%, 7/01/35	United States		7,000		3,740
senior note, 10.50%, 9/15/22	United States		105,000		59,916
senior note, 11.00%, 9/15/25	United States		37,000		21,159
g,kIntelsat Jackson Holdings SA, senior secured note, first lien, 144A, 9.50%, 9/30/22	Luxembourg		274,000		323,727
Total Corporate Bonds and Notes in Reorganization (Cost $535,924)					598,792
hSenior Floating Rate Interests 3.1%
Communications Equipment 0.7%
Riverbed Technology Inc.,
Term Loan B, 7.50%, (3-Month USD LIBOR + 4.50%), 12/31/26	United States		547,881		445,975
lTerm Loan B, 7.00%, (3-Month USD LIBOR + 6.00%), 12/30/25	United States		289,053		281,646
					727,621
Diversified Telecommunication Services 1.1%
Frontier Communications Corp., Term Loan DIP, 5.75%, (1-Month USD LIBOR + 4.75%), 10/08/21	United States		84,122		85,069
Intelsat Jackson Holdings SA,
Term Loan B3, 8.00%, (6-Month USD LIBOR + 3.75%), 11/27/23	United States		281,120		286,273
lTerm Loan B4, 8.75%, (1-Month USD LIBOR + 4.50%), 1/02/24	United States		16,979		17,321
Term Loan B5, 8.625%, (6-Month USD LIBOR + 6.63%), 1/02/24	United States		329,824		337,328
lTerm Loan DIP, 6.50%, (1-Month USD LIBOR + 5.50%), 7/13/22	United States		348,477		355,121
					1,081,112

67

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country	Principal Amount*			Value
hSenior Floating Rate Interests (continued)
Hotels, Restaurants & Leisure 0.4%
Golden Nugget Inc., Term Loan B, 3.25%, (1-Month USD LIBOR + 2.50%), 10/04/23	United States		73,264		$	72,787
Playa Hotels & Resorts NV, Term Loan B1, 3.75%, (1-Month USD LIBOR + 2.75%), 4/29/24	United States		296,242			286,059
						358,846
Personal Products 0.1%
Creed, Term Loan BE, 5.00%, (6-Month EURIBOR + 5.00%), 5/28/27	United Kingdom		111,326			133,929
Speciality Retail 0.1%
lGroupe Casino, Term Loan B, 5.50%, (3-Month EURIBOR + 5.50%), 1/31/24	United States		64,879			78,923
Specialty Retail 0.7%
Douglas Holding AG, Term Loan B1, 3.50%, (3-Month EURIBOR + 3.50%), 8/12/22	Germany		373,007			443,582
PETCO Animal Supplies Inc., Term Loan B1, 4.25%, (3-Month USD LIBOR + 3.25%), 1/26/23	United States		315,082			315,328
						758,910
Total Senior Floating Rate Interests (Cost $2,929,895)						3,139,341
Credit-Linked Notes 1.1%
d,gCitigroup Global Markets Holdings Inc., (Egypt), G, senior note, 144A, zero cpn., 4/22/21	Egypt		2,684,000	EGP		167,777
gHSBC Bank PLC, (Egypt), 144A, zero cpn., 7/15/21	Egypt		1,375,000	EGP		83,551
f,gHSBC Bank PLC, (Egypt), 144A, Reg S, zero cpn., 5/20/21	Egypt		4,100,000	EGP		254,070
d,gICBC Standard Bank PLC, (Egypt), EmTN, 144A, zero cpn., 3/04/21	Egypt		4,800,000	EGP		305,641
gICBC Standard Bank PLC, (Egypt), EmTN, 144A, zero cpn., 7/01/21	Egypt		4,951,337	EGP		303,034
Total Credit-Linked Notes (Cost $1,113,697)						1,114,073
Foreign Government and Agency Securities 4.4%
Government of Argentina,
senior bond, 0.125%, 7/09/35	Argentina		298,760			95,752
senior bond, 0.125%, 7/09/46	Argentina		173,271			55,707
senior note, 1.00%, 7/09/29	Argentina		24,417			9,669
gGovernment of Bahamas, senior bond, 144A, 8.95%, 10/15/32	Bahamas		200,000			213,760
fGovernment of Bahrain, senior bond, Reg S, 7.00%, 1/26/26	Bahrain		200,000			231,500
Government of Egypt, senior bond,
g144A, 8.875%, 5/29/50	Egypt		200,000			214,102
fReg S, 8.70%, 3/01/49	Egypt		200,000			211,646
fReg S, 8.875%, 5/29/50	Egypt		200,000			214,102
fGovernment of Germany, senior bond, Reg S, 0.50%, 2/15/25	Germany		94,000	EUR		118,576
Government of Italy, senior note, 2.375%, 10/17/24	Italy		373,000			390,781
gGovernment of Jordan, senior note, 144A, 4.95%, 7/07/25	Jordan		200,000			211,443
fGovernment of Nigeria, senior note, Reg S, 7.625%, 11/21/25	Nigeria		200,000			229,551
fGovernment of Paraguay, senior bond, Reg S, 4.625%, 1/25/23	Paraguay		421,000			445,633
Government of Russia,
fsenior bond, Reg S, 5.25%, 6/23/47	Russia		200,000			249,364
senior note, 6227, 7.40%, 7/17/24	Russia		13,568,000	RUB		190,690
senior note, 6229, 7.15%, 11/12/25	Russia		34,066,000	RUB		475,019

68

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)
Government of Russia, (continued)
senior note, 6232, 6.00%, 10/06/27	Russia		29,540,000	RUB	$	386,744
gGovernment of Saudi Arabia, senior bond, 144A, 2.75%, 2/03/32	Saudi Arabia		221,000			225,580
Government of South Africa, senior bond, 8.25%, 3/31/32	South Africa		2,581,000	ZAR		153,325
Government of Turkey, senior note, 6.375%, 10/14/25	Turkey		200,000			214,750
Total Foreign Government and Agency Securities (Cost $4,475,491)						4,537,694
Asset-Backed Securities and Commercial Mortgage-Backed Securities 35.2%
Diversified Financial Services 20.4%
g,mACIS CLO Ltd., 2014-5A, D, 144A, FRN, 4.545%, (3-Month USD LIBOR + 4.34%), 11/01/26	United States		1,120,000			1,122,531
g AMSR Trust, 144A,
2019-SFR1, H, 6.04%, 1/19/39	United States		750,000			794,100
2019-SFR1, I, 8.976%, 1/19/39	United States		750,000			766,906
g,mBlue Ridge CLO Ltd. II, 2014-2A, C, 144A, FRN, 4.023%, (3- Month USD LIBOR + 3.80%), 7/18/26	United States		700,000			699,433
nCD Mortgage Trust, 2019-CD8, C, FRN, 3.719%, 8/15/57	United States		384,000			390,005
g,mCIFC Funding 2015-IV Ltd., 2019-4A, CR, 144A, FRN, 4.224%, (3-Month USD LIBOR + 4.00%), 10/20/27	United States		1,500,000			1,500,742
CitiMortgage Alternative Loan Trust, 2007-A1, 2A1, 5.50%, 1/25/22	United States		21,971			22,143
g,mCutwater 2014-II Ltd., 2017-2A, CR, 144A, FRN, 3.991%, (3- Month USD LIBOR + 3.75%), 1/15/27	United States		1,000,000			991,002
Delta Funding Home Equity Loan Trust, 2000-2, M2, 8.86%, 8/15/30	United States		279,289			252,823
g,mGoldentree Loan Management US CLO 6 Ltd., 2019-6A, C, 144A, FRN, 2.824%, (3-Month USD LIBOR + 2.60%), 1/20/33	United States		1,000,000			1,008,270
g,mGPMT Ltd., 2019-FL2, D, 144A, FRN, 3.061%, (1-Month USD LIBOR + 2.95%), 2/22/36	United States		800,000			783,887
GSAA Trust, 2006-7, AF3, 6.22%, 3/25/46	United States		236,517			140,094
g,mGSMSC Pass-Through Trust, 2009-4R, 2A3, 144A, FRN, 0.58%, (1-Month USD LIBOR + 0.45%), 12/26/36	United States		731,989			457,874
g,mHull Street CLO Ltd., 2014-1A, D, 144A, FRN, 3.826%, (3-Month USD LIBOR + 3.60%), 10/18/26	United States		1,130,000			971,586
g,mJFIN CLO Ltd., 2017-1A, DR, 144A, FRN, 2.867%, (3-Month USD LIBOR + 2.65%), 3/15/26	United States		650,000			628,919
g,mKREF Ltd., 2018-FL1, D, 144A, FRN, 2.658%, (1-Month USD LIBOR + 2.55%), 6/15/36	United States		300,000			300,465
g,mMadison Park Funding XV Ltd., 2017-15A, B1R, 144A, FRN, 2.413%, (3-Month USD LIBOR + 2.20%), 1/27/26	United States		1,500,000			1,500,712
MASTR Adjustable Rate Mortgages Trust, FRN,
n2004-10, B1, 3.139%, 10/25/34	United States		525,227			485,041
m2006-OA1, 1A1, 0.328%, (1-Month USD LIBOR + 0.21%), 4/25/46	United States		254,929			235,218
g,mMountain View CLO Ltd., 2018-1A, DRR, 144A, FRN, 3.891%, (3- Month USD LIBOR + 3.65%), 10/15/26	United States		1,290,000			1,280,475
g,mOHA Credit Funding 4 Ltd., 2019-4A, C, 144A, FRN, 2.872%, (3- Month USD LIBOR + 2.65%), 10/22/32	United States		1,000,000			1,006,186
gS-Jets Ltd., 2017-1, A, 144A, 3.967%, 8/15/42	Bermuda		767,440			775,893
g,mStaniford Street CLO Ltd., 2014-1A, D, 144A, FRN, 3.717%, (3- Month USD LIBOR + 3.50%), 6/15/25	United States		1,160,000			1,154,616

69

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)
nSTARM Mortgage Loan Trust, 2007-2, 4A1, FRN, 3.703%, 4/25/37	United States		73,309	$	56,269
mSuntrust Alternative Loan Trust, 2005-1F, 1A1, FRN, 0.768%, (1- Month USD LIBOR + 0.65%), 12/25/35	United States		194,539		165,261
mTerwin Mortgage Trust, 2003-6HE, M2, FRN, 2.743%, (1-Month USD LIBOR + 2.63%), 11/25/33	United States		144,756		145,083
gThunderbolt II Aircraft Lease Ltd., 2018-A, A, 144A, 4.147%, 9/15/38	United States		2,657,400		2,659,667
Wells Fargo Alternative Loan Trust, 2007-PA3, 2A2, 6.00%, 7/25/37	United States		130,755		131,278
g,mZAIS CLO 1 Ltd., 2018-1A, CR, 144A, FRN, 3.651%, (3-Month USD LIBOR + 3.41%), 4/15/28	United States		517,379		488,208
					20,914,687
Mortgage Real Estate Investment Trusts (REITs) 14.8%
nAmerican Home Mortgage Assets Trust, 2005-1, 1A1, FRN, 3.597%, 11/25/35	United States		115,726		101,763
nBanc of America Mortgage Trust, FRN,
2005-K, 2A1, 2.631%, 12/25/35	United States		184,580		179,961
2005-L, 1A1, 2.919%, 1/25/36	United States		120,109		115,904
2005-L, 3A1, 2.779%, 1/25/36	United States		233,957		225,845
g,nBCAP LLC Trust, 2010-RR1, 1A4, 144A, FRN, 3.713%, 3/26/37	United States		246,372		217,037
nBear Stearns ARM Trust, FRN,
2002-11, 1A2, 2.824%, 2/25/33	United States		2,928		2,731
2006-2, 4A1, 3.642%, 7/25/36	United States		41,783		39,379
nCitigroup Mortgage Loan Trust, 2007-AR5, 2A1A, FRN, 3.321%, 4/25/37	United States		100,809		99,544
Countrywide Alternative Loan Trust,
2005-73CB, 1A2, 6.25%, 1/25/36	United States		152,583		157,591
m2005-IM1, A1, FRN, 0.718%, (1-Month USD LIBOR + 0.60%), 1/25/36	United States		131,651		126,995
2005-J10, 2A4, 6.00%, 10/25/35	United States		431,371		303,853
2006-4CB, 2A3, 5.50%, 4/25/36	United States		68,924		65,733
nCredit Suisse First Boston Mortgage Securities Corp., 2004-AR3, CB2, FRN, 3.25%, 4/25/34	United States		123,656		111,806
CSMC Mortgage-Backed Trust, 2006-4, 9A1, 6.50%, 5/25/36	United States		779,242		407,474
g,mFHLMC, 2021-MN1, M2, 144A, FRN, 3.795%, (SOFR + 3.75%), 1/25/51	United States		2,000,000		2,125,611
gFHLMC Structured Agency Credit Risk Debt Notes, 144A, FRN,
n2017-SPI1, M2, 4.022%, 9/25/47	United States		419,659		421,491
m2018-HRP1, B2, 11.868%, (1-Month USD LIBOR + 11.75%), 5/25/43	United States		3,006,284		3,354,786
n2018-SPI2, M2, 3.809%, 5/25/48	United States		353,380		354,790
m2020-DNA4, M2, 3.868%, (1-Month USD LIBOR + 3.75%), 8/25/50	United States		1,000,000		1,014,362
nFirst Horizon Alternative Mortgage Securities Trust, 2004-AA2, 2A1, FRN, 2.315%, 8/25/34	United States		203,586		210,887
GSR Mortgage Loan Trust, 2004-6F, 2A4, 5.50%, 5/25/34	United States		157,524		164,242
Impac CMB Trust,
2004-4, 2A2, 5.12%, 9/25/34	United States		152,023		157,515
m2004-8, 3B, FRN, 2.743%, (1-Month USD LIBOR + 2.63%), 8/25/34	United States		125,288		127,186
m2005-2, 2B, FRN, 2.593%, (1-Month USD LIBOR + 2.48%), 4/25/35	United States		92,556		90,791

70

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)
Impac CMB Trust, (continued)
m2005-4, 2B1, FRN, 2.593%, (1-Month USD LIBOR + 1.65%), 5/25/35	United States		129,008	$	130,808
m2005-4, 2M1, FRN, 0.868%, (1-Month USD LIBOR + 0.50%), 5/25/35	United States		150,509		146,025
m2005-8, 2B, FRN, 2.368%, (1-Month USD LIBOR + 2.25%), 2/25/36	United States		104,192		104,832
mIndyMac INDX Mortgage Loan Trust, FRN,
2006-AR12, A1, 0.308%, (1-Month USD LIBOR + 0.19%), 9/25/46	United States		101,449		95,172
2006-AR29, A2, 0.198%, (1-Month USD LIBOR + 0.08%), 11/25/36	United States		346,863		339,108
nJPMBB Commercial Mortgage Securities Trust, 2015-C28, C, FRN, 4.151%, 10/15/48	United States		496,426		492,143
nJPMorgan Mortgage Trust, FRN,
2006-A5, 6A1, 3.363%, 8/25/36	United States		237,959		214,835
2006-A7, 2A3, 3.093%, 1/25/37	United States		106,619		100,587
2007-A2, 2A1, 3.399%, 4/25/37	United States		158,880		142,449
Lehman Mortgage Trust, 2005-3, 2A3, 5.50%, 1/25/36	United States		66,886		70,151
nMASTR Alternative Loan Trust, 2007-HF1, 3A1, FRN, 2.57%, 10/25/47	United States		599,010		444,588
nMASTR Seasoned Securitization Trust, 2004-1, 4A1, FRN, 2.692%, 10/25/32	United States		97,788		101,448
m New Century Home Equity Loan Trust, 2003-4, M1, FRN, 1.243%, (1-Month USD LIBOR + 1.13%), 10/25/33	United States		471,686		471,810
gPRPM LLC, 2020-3, A2, 144A, 5.071%, 9/25/25	United States		500,000		503,506
nRFMSI Trust, 2007-SA2, 3A, FRN, 4.931%, 4/25/37	United States		962,793		392,795
mSecuritized Asset Backed Receivables LLC Trust, 2004-OP2, A2, FRN, 0.818%, (1-Month USD LIBOR + 0.70%), 8/25/34	United States		199,024		189,747
nStructured ARM Loan Trust, 2004-4, B1, FRN, 2.808%, 4/25/34	United States		431,496		415,423
nWachovia Mortgage Loan Trust LLC, 2005-B, 1A1, FRN, 2.543%, 10/20/35	United States		205,361		199,140
mWashington Mutual Mortgage Pass-Through Certificates, 2006-4, 3A2B, FRN, 0.198%, (1-Month USD LIBOR + 0.08%), 5/25/36	United States		250,627		198,635
nWashington Mutual MSC Mortgage Pass-Through Certificates Series Trust, 2003-AR3, B1, FRN, 3.10%, 6/25/33	United States		241,062		235,086
					15,165,565
Total Asset-Backed Securities and Commercial Mortgage- Backed Securities (Cost $35,591,260)					36,080,252
Municipal Bonds in Reorganization 1.5%
Puerto Rico 1.5%
kPuerto Rico Commonwealth GO, Public Improvement, Refunding, Series A,
5.50%, 7/01/39	United States		155,000		127,100
5.00%, 7/01/41	United States		225,000		175,781
kPuerto Rico Commonwealth GO, Refunding, Series A, 8.00%, 7/01/35	United States		1,570,000		1,222,638
Total Municipal Bonds in Reorganization (Cost $1,058,050)					1,525,519

71

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Number of Contracts	Notional Amount#		Value
Options Purchased 0.1%
Calls - Exchange-Traded 0.0%†
General Motors Co., June Strike Price $50.00, Expires 6/18/21	40		4,000	$	22,400
Pluralsight Inc., April Strike Price $20.00, Expires 4/16/21	1		100		140
					22,540
Puts - Exchange-Traded 0.1%
B&G Foods Inc., May Strike Price $25.00, Expires 5/21/21	10		1,000		1,110
B&G Foods Inc., May Strike Price $30.00, Expires 5/21/21	33		3,300		9,570
GameStop Corp., March Strike Price $100.00, Expires 3/19/21	4		400		16,080
GameStop Corp., July Strike Price $100.00, Expires 7/16/21	6		600		32,160
Iron Mountain Inc., April Strike Price $30.00, Expires 4/16/21	43		4,300		1,505
Kohl’s Corp., April Strike Price $32.50, Expires 4/16/21	12		1,200		516
SPDR S&P 500 ETF Trust, March Strike Price $365.00, Expires 3/19/21	24		2,400		11,376
					72,317
Puts - Over-the-Counter 0.0%†
Air France-KLM, Counterparty BOFA, March Strike Price 4.20 EUR, Expires 3/19/21	34		3,400		82
Air France-KLM, Counterparty BOFA, June Strike Price 4.00 EUR, Expires 6/18/21	15		1,500		362
American Airlines Group Inc., Counterparty JPHQ, May Strike Price $13.00, Expires 5/21/21	173		17,300		8,996
B&G Foods Inc., Counterparty GSCO, May Strike Price $25.00, Expires 5/21/21	37		3,700		4,107
The Kroger Co., Counterparty JPHQ, April Strike Price $30.00, Expires 4/16/21	71		7,100		4,970
NRG Energy Inc., Counterparty GSCO, March Strike Price $36.00, Expires 3/19/21	18		1,800		3,780
NRG Energy Inc., Counterparty GSCO, June Strike Price $36.00, Expires 6/18/21	18		1,800		7,020
					29,317
Total Options Purchased (Cost $160,308)					124,174
Total Investments before Short Term Investments (Cost $74,550,475)					77,594,815
	Country	Shares
Short Term Investments 21.7%
Money Market Funds (Cost $19,455,085) 18.9%
oFidelity Investments Money Market Government Portfolio, Institutional, 0.01%	United States		19,455,085		19,455,085

72

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country	Principal Amount*		Value
Short Term Investments (continued)
Repurchase Agreements (Cost $2,854,570) 2.8%
pJoint Repurchase Agreement, 0.009%, 3/01/21 (Maturity Value $2,854,573)	United States		2,854,570	$	2,854,570
BNP Paribas Securities Corp. (Maturity Value $2,172,615)
Deutsche Bank Securities Inc. (Maturity Value $319,855)
HSBC Securities (USA) Inc. (Maturity Value $362,103)
Collateralized by U.S. Government Agency Securities, 2.50% - 5.00%, 4/02/35 - 2/20/51; qU.S. Treasury Bills, 7/13/21; and U.S. Treasury Notes, 1.63%, 11/15/22 (valued at $2,912,199)
Total Investments (Cost $96,860,130) 97.4%					99,904,470
Options Written (0.0)%†					(43,424)
Securities Sold Short (6.4)%					(6,573,280)
Other Assets, less Liabilities 9.0%					9,289,830
Net Assets 100.0%				$	102,577,596
	Number of Contracts	Notional Amount#
Options Written (0.0)%†
Calls - Exchange-Traded (0.0)%†
Clearway Energy Inc., May Strike Price $30.00, Expires 5/21/21	9		900		(900)
Clearway Energy Inc., August Strike Price $30.00, Expires 8/20/21	6		600		(1,320)
General Motors Co., June Strike Price $60.00, Expires 6/18/21	22		2,200		(4,840)
					(7,060)
Calls - Over-the-Counter (0.0)%†
Clearway Energy Inc., Counterparty JPHQ, May Strike Price $30.00, Expires 5/21/21	43		4,300		(4,300)
Clearway Energy Inc., Counterparty CITI, August Strike Price $30.00, Expires 8/20/21	8		800		(1,760)
					(6,060)
Puts - Exchange-Traded (0.0)%†
GameStop Corp., March Strike Price $50.00, Expires 3/19/21	8		800		(6,136)
GameStop Corp., July Strike Price $50.00, Expires 7/16/21	12		1,200		(21,360)
SPDR S&P 500 ETF Trust, March Strike Price $335.00, Expires 3/19/21	24		2,400		(2,808)
					(30,304)
Total Options Written (Premiums Received $67,026)					(43,424)

73

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

	Country	Shares			Value
Securities Sold Short (6.4)%
Common Stocks (0.6)%
Hotels, Restaurants & Leisure (0.2)%
Carnival Corp.	United States		8,470		$	(226,572	)
Software (0.4)%
VMware Inc., A	United States		2,727			(376,899	)
Total Common Stocks (Proceeds $506,230)						(603,471	)
		Principal Amount*
Corporate Bonds and Notes (5.0)%
Aerospace & Defense (0.2)%
gSpirit Aerosystems Inc., secured note, 144A, 7.50%, 4/15/25	United States		87,000			(92,192	)
Triumph Group Inc., senior note, 5.25%, 6/01/22	United States		138,000			(137,310	)
						(229,502	)
Airlines (0.4)%
gAmerican Airlines Inc., senior secured note, 144A, 11.75%, 7/15/25	United States		310,000			(369,675)
Auto Components (0.1)%
American Axle & Manufacturing Inc., senior note,
6.50%, 4/01/27	United States		45,000			(47,043	)
6.875%, 7/01/28	United States		89,000			(94,340	)
						(141,383	)
Banks (0.1)%
f,h,iChina Zheshang Bank Co. Ltd., junior sub. note, FRN, Reg S, 5.45%, (US 5 Year CMT T-Note + 3.52%), Perpetual	China		72,000			(72,981	)
Chemicals (0.2)%
The Dow Chemical Co.,
senior bond, 4.80%, 5/15/49	United States		79,000			(99,031	)
senior note, 4.80%, 11/30/28	United States		68,000			(81,424	)
						(180,455	)
Communications Equipment (0.1)%
gEntercom Media Corp., secured note, 144A, 6.50%, 5/01/27	United States		72,000			(73,732	)
Construction & Engineering (0.4)%
Fluor Corp., senior bond, 3.50%, 12/15/24	United States		191,000			(193,730	)
gTutor Perini Corp., senior note, 144A, 6.875%, 5/01/25	United States		199,000			(201,736	)
						(395,466	)
Diversified Consumer Services (0.4)%
gMPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28	United States		393,000			(390,544	)
Diversified Financial Services (0.6)%
AerCap Ireland Capital DAC / AerCap Global Aviation Trust,
senior bond, 3.875%, 1/23/28	Ireland		138,000			(148,725	)
senior note, 4.875%, 1/16/24	Ireland		174,000			(190,008	)
senior note, 6.50%, 7/15/25	Ireland		171,000			(200,540	)
senior note, 4.625%, 10/15/27	Ireland		69,000			(77,408	)
						(616,681	)
Diversified Telecommunication Services (0.2)%
fDKT Finance ApS, senior secured note, Reg S, 7.00%, 6/17/23	Denmark		156,000	EUR		(193,319	)

74

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)
Electric Utilities (0.2)%
gNRG Energy Inc., 144A,
senior bond, 5.25%, 6/15/29	United States		29,000		$	(30,673)
senior bond, 3.625%, 2/15/31	United States		163,000			(160,860)
senior note, 3.375%, 2/15/29	United States		18,000			(17,852)
						(209,385)
Energy Equipment & Services (0.1)%
fSaipem Finance International BV, E, senior note, Reg S, 2.625%, 1/07/25	Italy		89,000	EUR		(110,801)
Equity Real Estate Investment Trusts (REITs) (0.4)%
The GEO Group Inc., senior bond, 5.875%, 10/15/24	United States		44,000			(34,457)
gIron Mountain Inc., senior bond, 144A, 5.25%, 3/15/28	United States		122,000			(127,719)
Service Properties Trust, senior bond,
4.95%, 10/01/29	United States		67,000			(64,781)
4.375%, 2/15/30	United States		44,000			(41,003)
Simon Property Group LP, senior bond, 2.65%, 7/15/30	United States		115,000			(117,007)
						(384,967)
Food & Staples Retailing (0.7)%
Koninklijke Ahold Delhaize NV, senior bond, 5.70%, 10/01/40	Netherlands		196,000			(267,020)
The Kroger Co., senior bond,
5.40%, 1/15/49	United States		78,000			(104,102)
3.95%, 1/15/50	United States		4,000			(4,451)
gSEG Holding LLC / SEG Finance Corp., senior secured note, 144A, 5.625%, 10/15/28	United States		149,000			(158,313)
gSigma Holdco BV, senior note, 144A, 7.875%, 5/15/26	Netherlands		48,000			(49,215)
gUnited Natural Foods Inc., senior note, 144A, 6.75%, 10/15/28	United States		111,000			(116,411)
						(699,512)
Food Products (0.1)%
B&G Foods Inc., senior note, 5.25%, 9/15/27	United States		115,000			(120,774)
Hotels, Restaurants & Leisure (0.2)%
gGolden Nugget Inc., senior note, 144A, 8.75%, 10/01/25	United States		122,000			(129,991)
RHP Hotel Properties LP / RHP Finance Corp., senior note, 4.75%, 10/15/27	United States		71,000			(72,123)
						(202,114)
Multiline Retail (0.1)%
gMacy’s Inc., senior secured note, 144A, 8.375%, 6/15/25	United States		92,000			(101,792)
Oil, Gas & Consumable Fuels (0.1)%
PDC Energy Inc., senior note, 5.75%, 5/15/26	United States		50,000			(51,317)
gSM Energy Co., secured note, 144A, 10.00%, 1/15/25	United States		54,000			(60,852)
						(112,169)
Professional Services (0.1)%
fTeleperformance, senior note, Reg S, 1.875%, 7/02/25	France		100,000	EUR		(128,902)
Software (0.1)%
gVeritas U.S. Inc. / Veritas Bermuda Ltd., senior note, 144A, 10.50%, 2/01/24	United States		129,000			(130,480)
Specialty Retail (0.1)%
gDave & Buster’s Inc., senior secured note, 144A, 7.625%, 11/01/25	United States		105,000			(111,562)

75

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)
Trading Companies & Distributors (0.1)%
Fly Leasing Ltd., senior note, 5.25%, 10/15/24	Ireland		112,000		$	(108,024)
Total Corporate Bonds and Notes (Proceeds $4,769,547)						(5,084,220)
Foreign Government and Agency Securities (0.1)%
Government of Italy, senior bond,
f,g144A, Reg S, 5.00%, 3/01/25	Italy		30,000	EUR		(43,437)
fReg S, 5.25%, 11/01/29	Italy		44,000	EUR		(73,993)
Total Foreign Government and Agency Securities (Proceeds $107,141)						(117,430)
U.S. Government and Agency Securities (0.7)%
U.S. Treasury Bond,
1.375%, 11/15/40	United States		2,000			(1,790)
1.375%, 8/15/50	United States		266,700			(222,736)
U.S. Treasury Note,
0.25%, 10/31/25	United States		200,000			(196,281)
0.375%, 11/30/25	United States		95,000			(93,675)
0.625%, 12/31/27	United States		60,000			(58,158)
0.875%, 11/15/30	United States		205,000			(195,519)
Total U.S. Government and Agency Securities (Proceeds $809,131)						(768,159)
Total Securities Sold Short (Proceeds $6,192,049)					$	(6,573,280)

^† 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 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 February 28, 2021, the aggregate value of these securities and/or cash pledged amounted to $8,169,212, representing 8.0% of net assets.

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

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

^e See Note 5 regarding restricted securities.

^f Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United Stateswithout either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At February 28, 2021, the net value of these securities was $2,303,654, representing 2.2% of net assets.

^g Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in public offering registered under the Securities Act of 1933. At February 28, 2021, the net value of these securities was $44,699,447, representing 43.6% of net assets.

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

ⁱ Perpetual security with no stated maturity date.

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

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

^l See Note 6 regarding unfunded loan commitments.

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

ⁿ 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.

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

76

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

^p Investment is through participation in a joint account with other funds managed by the investment manager or an affiliate of the investment manager. At February 26, 2021, all repurchase agreements had been entered into on that date.

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

77

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

At February 28, 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
S&P 500 E-Mini Index		Short		2	$	380,920		3/19/21	$	(15,554)
Interest Rate Contracts
U.S. Treasury Long Bond		Short		3		477,656		6/21/21		4,144
Total Futures Contracts									$	(11,410)

 ^*As of period end.

At February 28, 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		JPHQ		Buy		919,974	$	171,094		3/02/21	$	–	$	(6,936)
Brazilian Real		JPHQ		Sell		919,974		170,051		3/02/21		5,893		–
Chinese Yuan		JPHQ		Buy		1,010,184		153,974		3/17/21		1,602		(22)
Indonesian Rupiah		JPHQ		Sell		9,389,872,441		660,618		3/17/21		2,316		(50)
Russian Ruble		JPHQ		Buy		41,692,867		563,770		3/17/21		–		(5,529)
Russian Ruble		JPHQ		Sell		98,269,879		1,330,074		3/17/21		14,302		–
South African Rand		JPHQ		Buy		2,105,361		142,484		3/17/21		–		(3,695)
South African Rand		JPHQ		Sell		4,472,507		298,713		3/17/21		5,024		(1,147)
Turkish Lira		JPHQ		Buy		2,253,177		314,764		3/17/21		–		(13,702)
British Pound		JPHQ		Sell		260,000		355,845		3/31/21		–		(6,470)
Canadian Dollar		JPHQ		Sell		350,000		275,427		3/31/21		378		–
Euro		JPHQ		Sell		1,890,000		2,304,014		3/31/21		21,693		–
Brazilian Real		JPHQ		Buy		919,974		169,867		4/05/21		–		(5,934)
Total Forward Exchange Contracts											$	51,208	$	(43,485)
Net unrealized appreciation (depreciation)											$	7,723

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

78

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

At February 28, 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 Malaysia		(1.00)%		Quarterly				12/20/24		275,000		$	(7,186)	$	(7,286)	$	100
Government of Mexico		(1.00)%		Quarterly				6/20/23		186,000			(2,123)		(26)		(2,097)
Government of Mexico		(1.00)%		Quarterly				12/20/23		792,000			(9,568)		(5,925)		(3,643)
Government of Mexico		(1.00)%		Quarterly				12/20/23		15,000			(181)		(232)		51
Government of Mexico		(1.00)%		Quarterly				6/20/25		105,000			(183)		(1,324)		1,141
Government of South Africa		(1.00)%		Quarterly				12/20/24		792,000			31,161		23,305		7,856
Government of South Africa		(1.00)%		Quarterly				12/20/24		900,000			35,411		26,654		8,757
Government of Turkey		(1.00)%		Quarterly				6/20/22		6,000			98		316		(218)
Government of Turkey		(1.00)%		Quarterly				6/20/24		462,000			26,468		46,375		(19,907)
Traded Index
CDX.NA.HY.34		(5.00)%		Quarterly				6/20/25		3,450,000			(288,139)		17,346		(305,485)
CDX.NA.HY.35		(5.00)%		Quarterly				12/22/25		3,930,000			(326,301)		(371,211)		44,910
Contracts to Sell Protectionc,d
Single Name
Government of South Africa		1.00%		Quarterly				12/20/24		646,000			(25,417)		(50,313)		24,896	BB-
Government of South Africa		1.00%		Quarterly				12/20/24		184,000			(7,239)		(5,367)		(1,872)	BB-
Government of Turkey		1.00%		Quarterly				12/20/22		136,000			(3,419)		(6,150)		2,731	B+
Total Centrally Cleared Swap Contracts												$	(576,618)	$	(333,838)	$	(242,780)
OTC Swap Contracts
Contracts to Buy Protectionc
Single Name					Counterparty
Air France-KLM		(5.00)%		Quarterly		JPHQ		12/20/21		9,000	EUR		(59)		210		(269)
Air France-KLM		(5.00)%		Quarterly		JPHQ		12/20/21		14,000	EUR		(93)		244		(337)
Air France-KLM		(5.00)%		Quarterly		JPHQ		12/20/21		19,000	EUR		(126)		442		(568)
American Airlines Group Inc.		(5.00)%		Quarterly		BZWS		12/20/21		13,000			117		1,051		(934)
American Airlines Group Inc.		(5.00)%		Quarterly		BZWS		12/20/21		23,000			208		1,514		(1,306)
American Airlines Group Inc.		(5.00)%		Quarterly		BZWS		12/20/21		23,000			208		1,537		(1,329)
American Airlines Group Inc.		(5.00)%		Quarterly		BZWS		12/20/21		24,000			217		2,788		(2,571)
American Airlines Group Inc.		(5.00)%		Quarterly		BZWS		12/20/21		43,000			388		2,986		(2,598)
American Airlines Group Inc.		(5.00)%		Quarterly		CITI		12/20/21		14,000			126		1,372		(1,246)
American Airlines Group Inc.		(5.00)%		Quarterly		CITI		12/20/21		43,000			388		2,654		(2,266)
American Airlines Group Inc.		(5.00)%		Quarterly		FBCO		12/20/21		9,000			81		558		(477)
American Airlines Group Inc.		(5.00)%		Quarterly		FBCO		12/20/21		14,000			126		1,002		(876)
American Airlines Group Inc.		(5.00)%		Quarterly		GSCO		12/20/21		9,000			81		561		(480)
American Airlines Group Inc.		(5.00)%		Quarterly		GSCO		12/20/21		24,000			217		3,116		(2,899)
American Airlines Group Inc.		(5.00)%		Quarterly		JPHQ		12/20/21		10,000			90		1,020		(930)
American Airlines Group Inc.		(5.00)%		Quarterly		JPHQ		12/20/25		75,000			9,781		14,697		(4,916)
American Axle &
Manufacturing Inc.		(5.00)%		Quarterly		BZWS		12/20/25		84,000			(3,980)		(3,824)		(156)
American Axle &
Manufacturing Inc.		(5.00)%		Quarterly		GSCO		12/20/25		13,000			(616)		(789)		173
American Axle &
Manufacturing Inc.		(5.00)%		Quarterly		JPHQ		12/20/25		13,000			(616)		(789)		173
American Axle &
Manufacturing Inc.		(5.00)%		Quarterly		MSCO		12/20/25		22,000			(1,042)		(1,335)		293
Carnival Corp.		(1.00)%		Quarterly		BZWS		6/20/23		35,000			1,387		7,352		(5,965)

79

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)
Carnival Corp.		(1.00)%		Quarterly		BZWS		6/20/23		36,000		$	1,426	$	7,410	$	(5,984)
Carnival Corp.		(1.00)%		Quarterly		BZWS		6/20/25		35,000			3,605		8,612		(5,007)
Carnival Corp.		(1.00)%		Quarterly		CITI		6/20/23		18,000			713		3,771		(3,058)
Carnival Corp.		(1.00)%		Quarterly		FBCO		6/20/23		18,000			713		3,721		(3,008)
Carnival Corp.		(1.00)%		Quarterly		GSCO		6/20/23		36,000			1,426		7,079		(5,653)
Carnival Corp.		(1.00)%		Quarterly		GSCO		6/20/23		36,000			1,426		7,443		(6,017)
Dell Inc.		(1.00)%		Quarterly		BNPP		12/20/25		12,000			102		797		(695)
Dell Inc.		(1.00)%		Quarterly		BNPP		12/20/25		133,000			1,130		6,741		(5,611)
Dell Inc.		(1.00)%		Quarterly		CITI		12/20/25		15,000			127		823		(696)
Dell Inc.		(1.00)%		Quarterly		CITI		12/20/25		19,000			161		1,199		(1,038)
Dell Inc.		(1.00)%		Quarterly		JPHQ		12/20/25		62,000			527		2,752		(2,225)
Diamond Sports Group LLC		(5.00)%		Quarterly		BZWS		12/20/25		11,000			4,711		5,385		(674)
Diamond Sports Group LLC		(5.00)%		Quarterly		BZWS		12/20/25		14,000			5,996		6,861		(865)
Diamond Sports Group LLC		(5.00)%		Quarterly		GSCO		6/20/25		11,000			4,496		5,662		(1,166)
Diamond Sports Group LLC		(5.00)%		Quarterly		GSCO		12/20/25		1,000			428		431		(3)
Diamond Sports Group LLC		(5.00)%		Quarterly		GSCO		12/20/25		6,000			2,570		2,587		(17)
Diamond Sports Group LLC		(5.00)%		Quarterly		GSCO		12/20/25		6,000			2,570		2,588		(18)
Diamond Sports Group LLC		(5.00)%		Quarterly		GSCO		12/20/25		10,000			4,283		3,583		700
Diamond Sports Group LLC		(5.00)%		Quarterly		GSCO		12/20/25		12,000			5,139		4,951		188
Dow Inc.		(1.00)%		Quarterly		GSCO		6/20/25		66,000			(1,271)		(415)		(856)
Dow Inc.		(1.00)%		Quarterly		GSCO		6/20/25		66,000			(1,271)		(387)		(884)
Dow Inc.		(1.00)%		Quarterly		GSCO		6/20/25		66,000			(1,271)		(276)		(995)
Dow Inc.		(1.00)%		Quarterly		JPHQ		6/20/25		33,000			(635)		(138)		(497)
GE Capital Funding LLC		(1.00)%		Quarterly		GSCO		12/20/25		48,000			(285)		1,614		(1,899)
GE Capital Funding LLC		(1.00)%		Quarterly		GSCO		12/20/25		72,000			(427)		2,731		(3,158)
GE Capital Funding LLC		(1.00)%		Quarterly		JPHQ		12/20/25		48,000			(285)		1,509		(1,794)
GE Capital Funding LLC		(1.00)%		Quarterly		JPHQ		12/20/25		72,000			(427)		2,824		(3,251)
Government of Brazil		(1.00)%		Quarterly		BZWS		6/20/25		182,000			5,905		18,263		(12,358)
Government of Italy		(1.00)%		Quarterly		BOFA		6/20/24		233,000			(3,844)		1,616		(5,460)
Government of Italy		(1.00)%		Quarterly		BOFA		6/20/24		140,000			(2,310)		2,179		(4,489)
Itochu Corp.		(1.00)%		Quarterly		GSCO		6/20/22		12,107,000	JPY		(1,606)		(927)		(679)
JFE Holdings Inc.		(1.00)%		Quarterly		GSCO		6/20/22		5,348,000	JPY		(667)		(422)		(245)
Kimco Realty Corp.		(1.00)%		Quarterly		JPHQ		6/20/24		121,000			(2,264)		183		(2,447)
Kimco Realty Corp.		(1.00)%		Quarterly		JPHQ		6/20/25		36,000			(579)		512		(1,091)
Kohl’s Corp.		(1.00)%		Quarterly		CITI		12/20/25		207,000			4,393		18,269		(13,876)
Kohl’s Corp.		(1.00)%		Quarterly		GSCO		12/20/25		154,000			3,268		13,408		(10,140)
Kohl’s Corp.		(1.00)%		Quarterly		MSCO		12/20/25		221,000			4,690		19,504		(14,814)
Lloyds Bank PLC		(1.00)%		Quarterly		GSCO		6/20/24		127,000	EUR		(4,235)		653		(4,888)
Lloyds Bank PLC		(1.00)%		Quarterly		JPHQ		12/20/24		121,000	EUR		(1,983)		2,730		(4,713)
Marubeni Corp.		(1.00)%		Quarterly		CITI		6/20/25		3,711,000	JPY		(1,094)		941		(2,035)
Marubeni Corp.		(1.00)%		Quarterly		GSCO		6/20/22		18,860,000	JPY		(2,373)		(1,194)		(1,179)
MBIA Inc.		(5.00)%		Quarterly		BZWS		6/20/22		23,000			(540)		(354)		(186)
MBIA Inc.		(5.00)%		Quarterly		CITI		6/20/22		36,000			(845)		(1,540)		695
MBIA Inc.		(5.00)%		Quarterly		GSCO		6/20/22		21,000			(493)		(710)		217
MBIA Inc.		(5.00)%		Quarterly		JPHQ		6/20/21		269,000			(4,471)		(2,602)		(1,869)
MBIA Inc.		(5.00)%		Quarterly		JPHQ		12/20/24		97,000			(758)		(10,413)		9,655
Mitsui O.S.K. Lines Ltd.		(1.00)%		Quarterly		JPHQ		6/20/22		3,878,000	JPY		(430)		(77)		(353)
Mitsui O.S.K. Lines Ltd.		(1.00)%		Quarterly		JPHQ		6/20/22		3,618,000	JPY		(401)		(71)		(330)
NRG Energy Inc.		(5.00)%		Quarterly		CITI		12/20/25		19,000			(2,569)		(2,905)		336
NRG Energy Inc.		(5.00)%		Quarterly		GSCO		12/20/25		19,000			(2,569)		(2,876)		307
NRG Energy Inc.		(5.00)%		Quarterly		MSCO		12/20/25		38,000			(5,137)		(6,101)		964
NRG Energy Inc.		(5.00)%		Quarterly		MSCO		12/20/25		19,000			(2,569)		(3,120)		551
Simon Property Group LP		(1.00)%		Quarterly		JPHQ		12/20/25		434,000			(5,914)		8,873		(14,787)
Simon Property Group LP		(1.00)%		Quarterly		MSCO		12/20/25		340,000			(4,633)		6,951		(11,584)
Softbank Group Corp.		(1.00)%		Quarterly		BZWS		6/20/24		6,394,000	JPY		424		1,631		(1,207)

80

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)
Softbank Group Corp.		(1.00)%		Quarterly		BZWS		6/20/24		9,987,000	JPY	$	662	$	2,077	$	(1,415)
Stena AB		(5.00)%		Quarterly		GSCO		6/20/24		100,000	EUR		5,827		5,829		(2)
Transocean Inc.		(5.00)%		Quarterly		BZWS		12/20/25		25,000			9,955		20,025		(10,070)
Transocean Inc.		(5.00)%		Quarterly		FBCO		12/20/24		121,000			43,756		59,341		(15,585)
Transocean Inc.		(5.00)%		Quarterly		GSCO		12/20/24		71,000			25,675		4,624		21,051
Transocean Inc.		(5.00)%		Quarterly		GSCO		12/20/24		48,000			17,358		5,524		11,834
Transocean Inc.		(5.00)%		Quarterly		GSCO		12/20/25		455,000			181,184		342,285		(161,101)
Transocean Inc.		(5.00)%		Quarterly		JPHQ		12/20/24		4,000			1,447		510		937
Transocean Inc.		(5.00)%		Quarterly		JPHQ		12/20/24		138,000			49,904		17,617		32,287
Transocean Inc.		(5.00)%		Quarterly		JPHQ		12/20/24		100,000			36,162		46,400		(10,238)
Transocean Inc.		(5.00)%		Quarterly		JPHQ		6/20/25		155,000			59,001		93,557		(34,556)
Transocean Inc.		(5.00)%		Quarterly		MSCO		12/20/24		20,000			7,232		2,405		4,827
US Steel Corp.		(5.00)%		Quarterly		JPHQ		6/20/25		23,000			(820)		4,542		(5,362)
US Steel Corp.		(5.00)%		Quarterly		JPHQ		6/20/25		25,000			(891)		5,467		(6,358)
Contracts to Sell Protectionc,d
Single Name
Transocean Inc.		1.00%		Quarterly		BZWS		12/20/24		74,000			(35,817)		(48,409)		12,592	CCC-
Transocean Inc.		1.00%		Quarterly		BZWS		12/20/24		65,000			(31,461)		(43,432)		11,971	CCC-
Transocean Inc.		1.00%		Quarterly		BZWS		12/20/24		33,000			(15,972)		(22,673)		6,701	CCC-
Transocean Inc.		1.00%		Quarterly		JPHQ		6/20/25		155,000			(79,253)		(114,565)		35,312	CCC-
Transocean Inc.		1.00%		Quarterly		MSCO		12/20/24		111,000			(53,726)		(77,047)		23,321	CCC-
Transocean Inc.		1.00%		Quarterly		MSCO		12/20/24		74,000			(35,817)		(51,365)		15,548	CCC-
Transocean Inc.		1.00%		Quarterly		MSCO		12/20/24		37,000			(17,909)		(24,174)		6,265	CCC-
Transocean Inc.		1.00%		Quarterly		MSCS		12/20/24		482,000			(233,295)		(340,995)		107,700	CCC-
Total OTC Swap Contracts												$	(57,842)	$	76,169	$	(134,011)
Total Credit Default Swap Contracts												$	(634,460)	$	(257,669)	$	(376,791)

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

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

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

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

81

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

At February 28, 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		$	(10,805)
Receive Floating rate 3 Month USD-LIBOR
Pay Fixed rate 1.75%	Quarterly	3/18/22	1,100,000			(16,522)
Receive Fixed 4.40%
Pay Floating Banxico Mexico 1 Month rate	Monthly	3/15/23	8,343,421	MXN		(1,201)
Receive Fixed 4.91%
Pay Floating Banxico Mexico 1 Month rate	Monthly	3/11/26	8,405,513	MXN		(8,920)
Receive Fixed 2.84%
Pay Floating CFETS China Fixing Repo 7 Day rate	Quarterly	3/17/26	2,700,067	CNY		(1,946)
Receive Floating rate 3 Month USD-LIBOR
Pay Fixed rate 2.25%	Quarterly	6/20/28	1,100,000			(153,802)
Receive Fixed 5.58%
Pay Floating Banxico Mexico 1 Month rate	Monthly	3/05/31	8,588,262	MXN		(21,162)
Receive Floating rate 6 Month-SOFR
Pay Fixed rate 0.98%	Semi-Annually	3/17/31	205,158	SGD		8,711
Receive Floating rate 6 Month-SOFR
Pay Fixed rate 1.13%	Semi-Annually	3/17/31	21,088	SGD		667
Receive Floating rate 6 Month-WIBOR
Pay Fixed rate 1.16%	Semi-Annually	3/17/31	506,907	PLN		7,427
Receive Floating rate 6 Month-WIBOR
Pay Fixed rate 1.18%	Semi-Annually	3/17/31	506,032	PLN		7,256
Receive Floating rate 6 Month-WIBOR
Pay Fixed rate 1.21%	Semi-Annually	3/17/31	506,177	PLN		6,814
Receive Floating rate 6 Month-WIBOR
Pay Fixed rate 1.23%	Semi-Annually	3/17/31	14,933	PLN		195
Receive Floating rate 6 Month-WIBOR
Pay Fixed rate 1.29%	Semi-Annually	3/17/31	1,027,986	PLN		11,706
Receive Floating rate 6 Month-WIBOR
Pay Fixed rate 1.53%	Semi-Annually	3/17/31	542,168	PLN		3,008
Total Interest Rate Swap Contracts					$	(168,574)

* In U.S. dollars unless otherwise indicated.

At February 28, 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
Advanced Emissions Solutions Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		11/01/21		$       167		$            61
Advanced Emissions Solutions Inc.	1-Month LIBOR + 0.50%		Monthly		GSCO		11/02/21		1,600		517
Advanced Emissions Solutions Inc.	1-Month LIBOR + 0.50%		Monthly		GSCO		11/03/21		941		265
Advanced Emissions Solutions Inc.	1-Month LIBOR + 0.50%		Monthly		GSCO		11/04/21		479		124

82

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit 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)
Advanced Emissions Solutions Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		11/08/21	$	313	$        80
Advanced Emissions Solutions Inc.	1-Month LIBOR + 0.50%		Monthly		GSCO		11/09/21		18	5
Advanced Emissions Solutions Inc.	1-Month LIBOR + 0.50%		Monthly		GSCO		11/10/21		9	2
Advanced Emissions Solutions Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		11/24/21		345	14
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		3/04/21		7,036	2,071
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		3/05/21		15,291	4,518
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		3/10/21		8,467	2,451
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		3/11/21		27,315	8,046
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		3/11/21		13,131	3,763
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		3/12/21		14,066	3,937
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		3/12/21		33,991	9,576
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		10/07/21		9,101	16
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		10/12/21		1,205	(47)
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		10/14/21		2,734	(183)
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		10/14/21		536	(35)
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		10/14/21		3,749	(247)
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		10/19/21		2,135	(80)
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		10/20/21		19,742	(777)
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		10/21/21		5,095	(144)
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		10/25/21		1,418	(47)
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		10/26/21		522	(19)
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		10/27/21		2,234	(127)
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		10/28/21		2,680	(99)
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		GSCO		11/03/21		28,490	147
Clearway Energy Inc.	1-Month LIBOR + 0.35%		Monthly		JPHQ		1/20/22		73,370	(12,507)
Clearway Energy Inc.	1-Month LIBOR + 0.40%		Monthly		BZWS		5/16/22		7,966	(1,084)
Energy Transfer Operating LP	1-Month LIBOR + 0.90%		Monthly		GSCO		11/05/21		34,965	14,151
Energy Transfer Operating LP	1-Month LIBOR + 0.40%		Monthly		BOFA		11/09/21		35,197	3,137
Energy Transfer Operating LP	1-Month LIBOR + 0.65%		Monthly		GSCO		1/20/22		51,860	4,622
Enterprise Products Partners LP	1-Month LIBOR + 0.90%		Monthly		GSCO		11/16/21		40,564	7,475
										49,582
Equity Contracts - Shortb
Carnival Corp.	1-Month LIBOR - 0.40%		Monthly		MSCO		11/08/22		76,666	(22,677)
Interest Rate Contracts - Longa
Government of Egypt	1-Day FEDEF		Monthly		CITI		7/13/21		82,753	821
Government of Indonesia	3-Month LIBOR + 1.00%		Monthly		BOFA		5/18/21		384,829	31,280
Government of Indonesia	3-Month LIBOR + 0.70%		Monthly		BOFA		2/17/22		114,441	(5,419)
Government of Indonesia	3-Month LIBOR + 0.60%		Monthly		DBAB		6/15/32		103,643	6,666
										33,348
Total - Total Return Swap Contracts										$60,253

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

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

83

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

STATEMENT OF INVESTMENTS (UNAUDITED)

Franklin K2 Long Short Credit Fund (continued)

Abbreviations

Counterparty		Currency		Selected Portfolio
BNPP	BNP Paribas	CNY	Chinese Yuan	ARM	Adjustable Rate Mortgage
BOFA	Bank of America Corp.	EGP	Egyptian Pound	CFETS	China Foreign Exchange Trade System
BZWS	Barclays Bank PLC	EUR	Euro	CLO	Collateralized Loan Obligation
CITI	Citigroup, Inc.	JPY	Japanese Yen	CMT	Constant Maturity Treasury Index
DBAB	Deutsche Bank, AG	MXN	Mexican Peso	DIP	Debtor-In-Possession
FBCO	Credit Suisse Group AG	PLN	Polish Zloty	DR	Discount Rate
GSCO	The Goldman Sachs Group, Inc.	RUB	Russian Ruble	ETF	Exchange Traded Fund
JPHQ	JP Morgan Chase Bank & Co.	SGD	Singapore Dollar	EURIBOR	Euro Interbank Offered Rate
MSCO	Morgan Stanley & Co. LLC	USD	United States Dollar	FEDEF	Federal Funds Effective Rate
MSCS	Morgan Stanley Capital Services LLC	ZAR	South African Rand	FHLMC	Federal Home Loan Mortgage Corp.
				FNMA	Federal National Mortgage Association
Index				FRN	Floating Rate Note
CDX.NA.HY	CDX North America High Yield Index			GO	General Obligation
				LIBOR	London InterBank Offered Rate
				REIT	Real Estate Investment Trust
				SFR	Single Family Revenue
				SOFR	Secured Overnight Financing Rate
				SPDR	Standard & Poor’s Depositary Receipt
				WIBOR	Warsaw Interbank Offered Rate

84

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 February 28, 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.

85

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 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.

86

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 February 28, 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	$	6,120
861	Acosta Inc., cvt. pfd.		12/31/19		50,262		43,412
Total Restricted Securities (Value is 0.05% of Net Assets)				$	58,406	$	49,532

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 February 28, 2021, unfunded commitments were as follows:

Borrower	Unfunded     Commitment
Franklin K2 Alternative Strategies Fund
Douglas Holding AG, Term Loan B1	$	296,678
Douglas Holding AG, Term Loan B1		111,124
Douglas Holding AG, Term Loan B1		296,473
Douglas Holding AG, Term Loan B1		183,397
Douglas Holding AG, Term Loan B1		39,737
Douglas Holding AG, Term Loan B1		160,659
Douglas Holding AG, Term Loan B4		124,782
Intelsat Jackson Holdings SA, Term Loan B4		467,032
Intelsat Jackson Holdings SA, Term Loan DIP		45,851
Lecta, Senior Term Loan		63,785
McCarthy & Stone, Term Loan B		170,938
Riverbed Technology Inc., Term Loan B		974,634
	$	2,935,090
Franklin K2 Long Short Credit Fund
Douglas Holding AG, Term Loan B1	$	8,247
Groupe Casino, Term Loan B		28,547
Intelsat Jackson Holdings SA, Term Loan B4		3,965
Intelsat Jackson Holdings SA, Term Loan DIP		348,722
Lecta, Senior Term Loan		44,205
McCarthy & Stone, Term Loan B		50,969
Riverbed Technology Inc., Term Loan B		25,283
	$	509,938

87

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 February 28, 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, 0.00%	$	1,731,000	$	51,259,000	$	(50,051,000	)		$ -		$ -	$	2,939,000		2,939,000		$ -

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 February 28, 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 February 28, 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.		$1,262,817,143		$21,896,004		1.7%

^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 February 28, 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	$	447,010,565	$	59,563,144		$	68,903	c	$	506,642,612
Convertible Bonds		–		204,990,965			–			204,990,965
Corporate Bonds and Notes		–		115,363,387			56,354			115,419,741
Corporate Bonds and Notes in Reorganization		–		6,682,420			–			6,682,420
Senior Floating Rate Interests		–		4,875,027			–			4,875,027
Credit-Linked Notes		–		4,843,045			2,869,577			7,712,622
Foreign Government and Agency Securities		–		42,877,916			119,361			42,997,277
Foreign Government and Agency Securities in Reorganization		–		865,967			–			865,967
U.S. Government and Agency Securities		–		12,697			–			12,697
Asset-Backed Securities and Commercial Mortgage-Backed Securities		–		96,128,078			29,372			96,157,450
Municipal Bonds in Reorganization		–		7,912,944			–			7,912,944
Options Purchased		950,569		–			–			950,569
Short Term Investments		214,391,846		32,841,473			–			247,233,319
Total Investments in Securities	$	662,352,980	$	576,957,063	d	$	3,143,567		$	1,242,453,610
Other Financial Instruments:
Futures Contracts	$	2,795,865	$	–		$	–		$	2,795,865
Forward Exchange Contracts		–		2,988,455			–			2,988,455
Swap Contracts		–		6,124,825			–			6,124,825
Unfunded Loan Commitments		–		148,702			8,256			156,958
Total Other Financial Instruments	$	2,795,865	$	9,261,982		$	8,256		$	12,066,103
Liabilities:
Other Financial Instruments:

88

Options Written	$	626,609	$	–		$	–		$	626,609
Securities Sold Shorta		236,247,946		25,113,143	e		–			261,361,089
Futures Contracts		2,836,712		–			–			2,836,712
Forward Exchange Contracts		–		2,898,267			–			2,898,267
Swap Contracts		–		5,585,291			–			5,585,291
Total Other Financial Instruments	$	239,711,267	$	33,596,701		$	–		$	273,307,968
	Level 1		Level 2			Level 3			Total
Franklin K2 Long Short Credit Fund
Assets:
Investments in Securities:a
Equity Investmentsb	$	2,935,427	$	415,051		$	49,532	c	$	3,400,010
Convertible Bonds		–		784,079			–			784,079
Corporate Bonds and Notes		–		26,290,881			–			26,290,881
Corporate Bonds and Notes in Reorganization		–		598,792			–			598,792
Senior Floating Rate Interests		–		3,139,341			–			3,139,341
Credit-Linked Notes		–		640,655			473,418			1,114,073
Foreign Government and Agency Securities		–		4,537,694			–			4,537,694
Asset-Backed Securities and Commercial Mortgage-Backed Securities		–		36,080,252			–			36,080,252
Municipal Bonds in Reorganization		–		1,525,519			–			1,525,519
Options Purchased		124,174		–			–			124,174
Short Term Investments		19,455,085		2,854,570			–			22,309,655
Total Investments in Securities	$	22,514,686	$	76,866,834	f	$	522,950		$	99,904,470
Other Financial Instruments:
Futures Contracts	$	4,144	$	–		$	–		$	4,144
Forward Exchange Contracts		–		51,208			–			51,208
Swap Contracts		–		544,569			–			544,569
Unfunded Loan Commitments		–		14,527			2,748			17,275
Total Other Financial Instruments	$	4,144	$	610,304		$	2,748		$	617,196
Liabilities:
Other Financial Instruments:
Options Written	$	43,424	$	–		$	–		$	43,424
Securities Sold Shorta		603,471		5,969,809			–			6,573,280
Futures Contracts		15,554		–			–			15,554
Forward Exchange Contracts		–		43,485			–			43,485
Swap Contracts		–		1,029,681			–			1,029,681
Total Other Financial Instruments	$	662,449	$	7,042,975		$	–		$	7,705,424

^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 February 28, 2021.

^d  Includes foreign securities valued at $59,563,144, 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 $7,458,191, 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 $415,051, 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. At February 28, 2021, the reconciliation is as follows:

	Balance at Beginning of Period			Purchases		Sales		Transfer Into (Out of) Level 3			Cost Basis Adjustments		Net Realized Gain (Loss)		Net Unrealized Appreciation (Depreciation)		Balance at End of Period			Net Change in Unrealized Appreciation (Depreciation) on Assets Held at Period End
Franklin K2 Long Short Credit Fund
Assets:
Investments in Securities:
Equity Investmentsa	$	592,344	b	$	10,274	$	(496,992)	$	-		$	-	$	(74,893)	$	18,799	$	49,532	b	$	(56,094)
Asset-Backed Securities and Commercial Mortgage-Backed Securities		462,124			-		(10,995)		(487,123)	c		-		5,326		30,668		-			-
Short Term Investments		-			446,402		-		-			-		-		27,016		473,418			27,016
Unfunded Loan Commitments		-			-		-		2,748	d		-		-		-		2,748			-
Total Investments in Securities	$	1,054,468		$	456,676	$	(507,987)	$	(484,375)		$	-	$	(69,567)	$	76,483	$	525,698		$	(29,078)

^a  Includes common and convertible preferred stocks.

^b  Includes securities determined to have no value at February 28, 2021.

^c  The investment was transferred out of Level 3 as a result of the availability of other significant observable valuation inputs.

^d  The investment was transferred into Level 3 as a result of the unavailability of a quoted market price in an active market for identical securities and other significant observable valuation inputs.

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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.

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