Franklin K2 Alternative Strategies Fund NPORTP K2 Long Short Credit Fund (Feb 2023 report)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Consolidated Schedule of Investments, February 28, 2023 (unaudited)

K2 Alternative Strategies Fund


	Country		Shares/ Warrants/ Rights		Value

Common Stocks and Other Equity Interests 27.1%
Aerospace & Defense 0.4%
^aAerojet Rocketdyne Holdings Inc.		United States		24,843	$	1,399,655
Lockheed Martin Corp.		United States		93		44,106
Maxar Technologies Inc.		United States		42,021		2,164,081
^aSatellogic Inc., 1/25/27, wts.		United States		2,058		501

						3,608,343

Air Freight & Logistics 0.3%
^aAtlas Air Worldwide Holdings Inc.		United States		28,128		2,835,584
^bUnited Parcel Service Inc., B		United States		210		38,323

						2,873,907

Auto Components 0.1%
^aAmerican Axle & Manufacturing Holdings Inc.		United States		2,920		25,696
Autoliv Inc.		Sweden		7,982		738,973
^a,cLuminar Technologies Inc.		United States		12,104		108,331

						873,000

Automobiles 0.1%
^a,cLucid Group Inc.		United States		1,930		17,621
^aTesla Inc.		United States		4,367		898,336

						915,957

Banks 0.6%
Banco Santander Mexico SA Institucion de Banca Multiple
Grupo Financiero, ADR		Mexico		62,868		249,246
Bank of America Corp.		United States		32,543		1,116,225
^dFirst Citizens Bancshares Inc., A		United States		1,261		925,271
First Horizon Corp.		United States		124,278		3,078,366

						5,369,108

Beverages 0.3%
^bThe Coca-Cola Co.		United States		616		36,658
Davide Campari-Milano NV		Italy		49,629		555,628
^a,dMonster Beverage Corp.		United States		12,476		1,269,558
^dPepsiCo Inc.		United States		7,594		1,317,787

						3,179,631

Biotechnology 1.4%
AbbVie Inc.		United States		352		54,173
^aF-Star Therapeutics Inc.		United Kingdom		15,817		84,621
^a,cGossamer Bio Inc.		United States		100		173
^aHorizon Therapeutics PLC		United States		75,621		8,279,743
^aIntercept Pharmaceuticals Inc.		United States		41,037		828,126
^aKaryopharm Therapeutics Inc.		United States		1,000		3,020
^aMyovant Sciences Ltd.		United States		143,108		3,858,192

						13,108,048

Capital Markets 0.7%
BlackRock Inc., A		United States		28		19,304
Canaccord Genuity Group Inc.		Canada		69,330		585,837
^dCowen Inc., A		United States		73,448		2,863,737
^aFocus Financial Partners Inc., A		United States		34,334		1,780,562
^dMoody's Corp.		United States		4,812		1,396,202
^bMorgan Stanley		United States		291		28,081
Raymond James Financial Inc.		United States		3,404		369,198

						7,042,921

Chemicals 0.5%
^a,cAmyris Inc.		United States		3,000		3,750
The Sherwin-Williams Co.		United States		18,811		4,163,815

Quarterly Consolidated Schedule of Investments | See Notes to the Consolidated Schedules of Investments.

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Shares/ Warrants/ Rights		Value

Common Stocks and Other Equity Interests (continued)
Chemicals (continued)
^aTronox Holdings PLC, A		United States		21,474	$	334,994

						4,502,559

Commercial Services & Supplies 0.9%
^dCintas Corp.		United States		5,448		2,388,784
^aDigital Transformation Opportunities Corp., A		United States		39,182		398,873
^aDigital Transformation Opportunities Corp., A, 3/31/28, wts.		United States		9,795		632
^aIaa Inc.		United States		37,348		1,527,907
^dRepublic Services Inc., A		United States		30,305		3,907,223
^aShapeways Holdings Inc., 10/31/26, wts.		United States		13,286		295

						8,223,714

Communications Equipment 0.0%^†
^bCisco Systems Inc.		United States		359		17,383
^aRiverbed Technology Inc.		United States		5,404		1,378

						18,761

Construction & Engineering 0.9%
^a,dMastec Inc.		United States		48,220		4,712,058
^dQuanta Services Inc.		United States		23,624		3,812,914

						8,524,972

Construction Materials 0.0%^†
^aCemex SAB de CV, ADR		Mexico		74,259		369,810

Containers & Packaging 0.4%
^cBall Corp.		United States		66,444		3,734,817
Packaging Corp. of America		United States		123		16,817

						3,751,634

Distributors 0.2%
Pool Corp.		United States		6,485		2,314,237

Diversified Financial Services 1.7%
^a7GC & Co. Holdings Inc., A, 12/31/26, wts.		United States		3,244		308
^aAequi Acquisition Corp., A		United States		4,844		48,682
^aAequi Acquisition Corp., A, 11/30/27, wts.		United States		490		49
^aAfrican Gold Acquisition Corp., A, 3/13/28, wts.		United States		4,750		—
^aAgile Growth Corp., A, 12/31/27, wts.		United States		1,303		3
^aAhren Acquisition Corp., A		Cayman Islands		51,027		529,150
^aAnthemis Digital Acquisitions I Corp.		United States		17,623		182,927
^aAnzu Special Acquisition Corp. I, A		United States		32,745		326,468
^aApollo Strategic Growth Capital II, A		United States		49,289		500,787
^aApollo Strategic Growth Capital II, A, 12/31/27, wts.		United States		5,294		995
^aAPx Acquisition Corp. I		Mexico		13,835		144,852
^aAres Acquisition Corp., A		United States		25,000		255,750
^aAres Acquisition Corp., A, 12/31/27, wts.		United States		8,774		7,721
^aAthena Consumer Acquisition Corp., A, 7/31/28, wts.		United States		13,194		796
^a,dAthena Technology Acquisition Corp. II, A		United States		61,944		631,209
^aAthena Technology Acquisition Corp. II, A, 10/17/28, wts.		United States		19,317		1,643
^aAtlantic Coastal Acquisition Corp., A		United States		23,209		236,732
^aAtlantic Coastal Acquisition Corp., A, 12/31/27, wts.		United States		5,443		435
^aB Riley Principal 250 Merger Corp., A, 12/31/27, wts.		United States		2,651		358
^aBlue Whale Acquisition Corp. I, A, 7/09/23, wts.		United Arab Emirates		1,005		185
^aCapitalworks Emerging Markets Acquisition Corp., A		United States		15,474		158,454
^aCapitalworks Emerging Markets Acquisition Corp., A, 4/27/28, wts.		United States		7,737		542
^aCarney Technology Acquisition Corp. II, A, 11/30/27, wts.		United States		5,876		2
^aCC Neuberger Principal Holdings III, 12/31/27, wts.		United States		7,027		1,054
^aChurchill Capital Corp. VI, A		United States		24,149		242,214

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Shares/ Warrants/ Rights		Value

Common Stocks and Other Equity Interests (continued)
Diversified Financial Services (continued)
^aChurchill Capital Corp. VII, A		United States		26,516	$	266,220
^a,dCIIG Capital Partners II Inc., A		United States		10,448		107,249
^aColonnade Acquisition Corp. II, 12/31/27, wts.		United States		13,654		699
^a,dConcord Acquisition Corp. II, A		United States		79,080		797,126
^aConcord Acquisition Corp. III, A		United States		9,774		100,965
^aConsilium Acquisition Corp. I Ltd.		United States		12,546		128,973
^a,dConyers Park III Acquisition Corp., A		United States		32,395		325,894
^aCorner Growth Acquisition Corp., A, 6/17/26, wts.		United States		5,737		258
^aCorner Growth Acquisition Corp., A, 12/31/27, wts.		United States		7,606		951
^aCrown PropTech Acquisitions, 12/31/27, wts.		United States		12,844		3,211
^aCrystal Peak Acquisition, A		Netherlands		6,767		67,670
^aCrystal Peak Acquisition, A, 6/22/26, wts.		Netherlands		2,725		1,363
^aDHC Acquisition Corp., A, 12/31/27, wts.		United States		241		9
^a,ddMY Technology Group Inc. VI		United States		26,930		273,070
^aDragoneer Growth Opportunities Corp. III, A		United States		82,467		814,774
^aElliott Opportunity II Corp., A		United States		56,350		572,234
^aElliott Opportunity II Corp., A, 3/02/26, wts.		United States		9,039		1,342
^aEnergy Transition Partners BV		Netherlands		3,372		34,805
^aEnergy Transition Partners BV, 7/16/26, wts.		Netherlands		1,124		279
^aEnterprise 4.0 Technology Acquisition Corp.		United States		16,406		170,786
^aEnterprise 4.0 Technology Acquisition Corp., 9/24/23, wts.		United States		8,203		349
^aESM Acquisition Corp., A		United States		8,367		85,260
^aFar Peak Acquisition Corp., A		United States		13,482		137,247
^a,dFast Acquisition Corp. II, A, 3/16/26, wts.		United States		3,606		992
^aFifth Wall Acquisition Corp. III, A		United States		5,283		53,570
^aFintech Evolution Acquisition Group, A		United States		17,597		178,961
^aFintech Evolution Acquisition Group, A, 3/31/28, wts.		United States		5,865		4
^aFirst Reserve Sustainable Growth Corp., A		United States		22,062		223,709
^aFirst Reserve Sustainable Growth Corp., A, 12/31/28, wts.		United States		8,090		145
^aFlame Acquisition Corp., A, 12/31/28, wts.		United States		10,165		7,623
^aFocus Impact Acquisition Corp., A		United States		13,236		136,728
^aFocus Impact Acquisition Corp., A, 4/23/23, wts.		United States		6,618		462
^aForest Road Acquisition Corp. II, A		United States		822		8,319
^aForum Merger IV Corp., A		United States		563		5,709
^aForum Merger IV Corp., A, 12/31/27, wts.		United States		704		141
^aFTAC Hera Acquisition Corp., A		United States		35,780		363,883
^a,dFTAC Parnassus Acquisition Corp., A		United States		49,016		496,532
^aFTAC Zeus Acquisition Corp., A		United States		6,342		64,752
^a,dFusion Acquisition Corp. II, A		United States		45,488		461,703
^a,dFusion Acquisition Corp. II, A, 12/31/27, wts.		United States		5,297		211
^aGlobal Partner Acquisition Corp. II, A, 12/31/27, wts.		United States		2,950		413
^aGoGreen Investments Corp.		United States		9,490		99,835
^aGrowth For Good Acquisition Corp., Contingent Value, rts., 6/14/23		United States		5,118		398
^aHedosophia European Growth		United Kingdom		35,835		371,447
^aHedosophia European Growth, 5/13/27, wts.		United Kingdom		11,638		246
^aInsight Acquisition Corp., A		United States		5,477		56,084
^aInvestcorp Europe Acquistion Corp. I, A		United States		40,934		425,714
^aInvestcorp Europe Acqusition Corp. I, A, 11/23/28, wts.		United States		9,717		334
^aJackson Acquisition Co., A, 12/31/28, wts.		United States		2,966		48
^aJaws Juggernaut Acquisition Corp., A		United States		6,381		64,990
^aJaws Juggernaut Acquisition Corp., A, 2/12/26, wts.		United States		4,284		707
^aJaws Mustang Acquisition Corp., A, 1/30/26, wts.		United States		8,196		738
^aJuniper II Corp., A		United States		11,402		117,555
^aKensington Capital Acquisition Corp. V, A		United States		22,622		234,138
^aKhosla Ventures Acquisition Co., A		United States		48,524		491,063
^a,dKhosla Ventures Acquisition Co. III, A		United States		23,001		231,850

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Shares/ Warrants/ Rights		Value

Common Stocks and Other Equity Interests (continued)
Diversified Financial Services (continued)
^aLandcadia Holdings IV Inc., A, 3/29/28, wts.		United States		1,171	$	217
^aLDH Growth Corp. I, A, 12/31/28, wts.		United States		97		4
^aLead Edge Growth Opportunities Ltd., A, 12/31/28, wts.		United States		1,175		29
^aLearn CW Investment Corp., A		United States		19,726		202,191
^aLearn CW Investment Corp., A, 12/31/28, wts.		United States		9,863		882
^aLF Capital Acquisition Corp. II, A		United States		13,246		137,493
^aLive Oak Crestview Climate Acquisition Corp., A, 3/12/26, wts.		United States		452		81
^aLive Oak Mobility Acquisition Corp., A		United States		1,366		13,985
^aM3-Brigade Acquisition II Corp., A, 12/31/27, wts.		United States		7,608		838
^aMotive Capital Corp. II, A		United States		17,352		180,287
^aMotive Capital Corp. II, A, 5/15/28, wts.		United States		5,384		783
^aMSD Acquisition Corp., A		United States		29,051		296,175
^aMurphy Canyon Acquisition Corp., A		United States		30,108		311,016
^aNorthern Star Investment Corp. II, A, 1/31/28, wts.		United States		3,083		—
^aObotech Acquisition SE, A		Luxembourg		4,205		44,032
^aObotech Acquisition SE, A, 4/30/26, wts.		Luxembourg		1,401		148
^aOrion Biotech Opportunities Corp., A		United States		16,960		172,822
^aOrion Biotech Opportunities Corp., A, 12/31/27, wts.		United States		3,392		653
^aPegasus Acquisition Co. Europe BV, A		Netherlands		30,999		321,319
^aPegasus Acquisition Co. Europe BV, A, 4/27/26, wts.		Netherlands		29,604		6,262
^a,ePershing Square Tontine Holdings Ltd., A		United States		42,829		—
^aPine Technology Acquisition Corp., A, 3/31/28, wts.		United States		3,876		46
^aPontem Corp., A, 12/31/27, wts.		United States		4,749		1,045
^a,dPost Holdings Partnering Corp., A		United States		12,717		127,806
^aRCF Acquisition Corp., A		United States		12,616		131,396
^aRice Acquisition Corp. II, A, 3/12/26, wts.		United States		3,294		4,612
^aRigel Resource Acquisition Corp., A		United States		8,142		84,677
^aRigel Resource Acquisition Corp., A, 4/19/23, wts.		United States		4,071		681
^aRMG Acquisition Corp. III, A		United States		2,786		27,916
^aRMG Acquisition Corp. III, A, 12/31/27, wts.		United States		557		78
^a,dRosecliff Acquisition Corp. I, A, 12/31/27, wts.		United States		19,875		1,592
^aScreaming Eagle Acquisition Corp., A		United States		96,744		975,663
^aScreaming Eagle Acquisition Corp., A, 12/15/27, wts.		United States		20,384		5,096
^aSculptor Acquisition Corp. I, A		United States		14,028		145,611
^aSculptor Acquisition Corp. I, A, 4/15/28, wts.		United States		7,014		1,116
^aSlam Corp., A, 12/31/27, wts.		United States		7,928		1,105
^a,cSocial Capital Suvretta Holdings Corp. II, A		United States		14,142		144,248
^aSocial Capital Suvretta Holdings Corp. IV, A		United States		27,104		276,190
^aSocial Leverage Acquisition Corp. I, A		United States		13,866		138,591
^aSocial Leverage Acquisition Corp. I, A, 2/17/28, wts.		United States		3,466		520
^aSouthport Acquisition Corp., 5/24/28, wts.		United States		4,946		168
^aSpree Acquisition Corp. 1 Ltd., 12/22/28, wts.		Israel		3,069		169
^aSupernova Partners Acquisition Co. III Ltd., A, 3/31/27, wts.		United States		6,587		203
^aSustainable Development Acquisition I Corp., A, 12/31/28, wts.		United States		4,181		523
^aSVF Investment Corp. 2, A		United States		9,817		100,035
^aTarget Global Acquisition I Corp., A, 12/31/27, wts.		Israel		3,516		422
^aTB SA Acquisition Corp., A		United States		22,005		224,671
^aTB SA Acquisition Corp., A, 3/25/28, wts.		United States		7,335		182
^aTech And Energy Transition Corp., A		United States		102		1,033
^aTeract SA, 11/16/25, wts.		France		3,920		248
^a,dThunder Bridge Capital Partners IV Inc., A		United States		12,385		124,593
^a,cTLG Acquisition One Corp., A		United States		9,876		101,328
^aTPG Pace Beneficial II Corp., A		United States		16,840		167,221
^a,dTwelve Seas Investment Co. II, A		United States		4,888		49,564
^aTwelve Seas Investment Co. II, A, 3/02/28, wts.		United States		1,629		98
^aTwin Ridge Capital Acquisition Corp., A		United States		7,511		76,612
^atwo, A		United States		9,851		100,677

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Shares/ Warrants/ Rights		Value

Common Stocks and Other Equity Interests (continued)
Diversified Financial Services (continued)
^aVahanna Tech Edge Acquisition I Corp., A		United States		7,916	$	82,406
^aVahanna Tech Edge Acquisition I Corp., A, 11/30/28, wts.		United States		3,958		262
^aValor Latitude Acquisition Corp., A		United States		16,723		170,408
^aValor Latitude Acquisition Corp., A, 12/31/28, wts.		United States		5,574		240
^aVector Acquisition Corp. II, A		United States		8,707		88,811
^aVMG Consumer Acquisition Corp., A		United States		2,210		22,785
^aVMG Consumer Acquisition Corp., A, 7/03/23, wts.		United States		1,105		35
^aWarburg Pincus Capital Corp. I, A, 12/31/27, wts.		Cayman Islands		249		—
^aZimmer Energy Transition Acquisition Corp., A, 5/14/23, wts.		United States		2,381		436

						16,331,390

Diversified Telecommunication Services 0.1%
Vantage Towers AG		Germany		22,979		825,573

Electric Utilities 2.2%
Constellation Energy Corp.		United States		52,557		3,935,994
Duke Energy Corp.		United States		236		22,245
^dEdison International		United States		27,645		1,830,375
^aEnergy Harbor Corp.		United States		76,083		5,858,391
^dNextEra Energy Inc.		United States		45,232		3,212,829
Origin Energy Ltd.		Australia		188,324		1,010,251
^a,dPG&E Corp.		United States		114,546		1,789,209
PNM Resources Inc.		United States		60,816		2,979,984

						20,639,278

Electrical Equipment 0.6%
^a,dArray Technologies Inc.		United States		91,194		1,708,976
Emerson Electric Co.		United States		184		15,219
^a,dEnovix Corp.		United States		45,007		414,964
^a,dFluence Energy Inc., A		United States		89,886		1,678,172
^aNextracker Inc., A		United States		6,983		212,562
^a,dShoals Technologies Group Inc., A		United States		5,209		127,829
^a,dStem Inc.		United States		46,190		376,910
^aSunrun Inc.		United States		32,692		785,916

						5,320,548

Electronic Equipment, Instruments & Components 0.2%
Hollysys Automation Technologies Ltd.		China		75,520		1,388,813
^aMovella Holdings Inc., A, 12/31/27, wts.		United States		5,567		780
National Instruments Corp.		United States		12,460		629,355

						2,018,948

Energy Equipment & Services 0.0%^†
aHelix Energy Solutions Group Inc.		United States		9,000		74,520

Entertainment 0.8%
^b,dActivision Blizzard Inc.		United States		71,135		5,424,044
^a,bManchester United PLC, A		United Kingdom		22,858		474,303
World Wrestling Entertainment Inc., A		United States		16,336		1,372,224

						7,270,571

Equity Real Estate Investment Trusts (REITs) 0.1%
American Tower Corp.		United States		134		26,533
^a,cBraemar Hotels & Resorts Inc.		United States		47		219
First Capital Real Estate Investment Trust		Canada		5,276		68,981
Indus Realty Trust Inc.		United States		12,643		841,139

						936,872

Food & Staples Retailing 0.6%
Albertsons Cos. Inc.		United States		29,645		589,343
^dCostco Wholesale Corp.		United States		10,199		4,938,152
The Kroger Co.		United States		5,437		234,552

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Shares/ Warrants/ Rights		Value

Common Stocks and Other Equity Interests (continued)
Food & Staples Retailing (continued)
Walmart Inc.		United States		226	$	32,121

						5,794,168

Food Products 0.2%
^aBenson Hill Inc., 12/24/25, wts.		United States		5,669		1,077
Chocoladefabriken Lindt & Spruengli AG		Switzerland		77		843,585
The Hershey Co.		United States		5,303		1,263,811

						2,108,473

Health Care Equipment & Supplies 0.1%
Abbott Laboratories		United States		276		28,075
^aCutera Inc.		United States		8,797		285,287
^aGlobus Medical Inc., A		United States		3,184		185,754

						499,116

Health Care Providers & Services 0.0%^†
Elevance Health Inc.		United States		63		29,589
Synlab AG		Germany		510		3,771
UnitedHealth Group Inc.		United States		60		28,557

						61,917

Health Care Technology 0.0%^†
^aHealth Catalyst Inc.		United States		1,300		18,148

Hotels, Restaurants & Leisure 0.4%
^aAutogrill SpA		Italy		412,485		2,928,687
Domino's Pizza Inc.		United States		1,481		435,429
^aF45 Training Holdings Inc.		United States		120,050		248,503
^aHomeToGo SE, 12/31/25, wts.		Luxembourg		716		1
^aSonder Holdings Inc., 1/31/28, wts.		United States		3,948		474
^bStarbucks Corp.		United States		403		41,142

						3,654,236

Household Durables 0.3%
Panasonic Holdings Corp.		Japan		20,441		178,491
^a,dSkyline Champion Corp.		United States		33,134		2,266,697

						2,445,188

Household Products 0.1%
The Procter & Gamble Co.		United States		340		46,770
Spectrum Brands Holdings Inc.		United States		14,182		907,932

						954,702

Independent Power & Renewable Electricity Producers 1.0%
The AES Corp.		United States		195,250		4,818,770
China Longyuan Power Group Corp. Ltd., H		China		122,989		150,869
China Power International Development Ltd.		China		386,483		153,261
China Resources Power Holdings Co. Ltd.		China		98,352		200,827
Clearway Energy Inc., A		United States		6,810		202,325
^aFREYR Battery SA		Norway		72,084		654,523
^aHuaneng Power International Inc., H		China		311,881		153,488
^dNextEra Energy Partners LP		United States		28,262		1,872,640
^a,dSunnova Energy International Inc.		United States		73,914		1,314,191

						9,520,894

Industrial Conglomerates 0.7%
General Electric Co.		United States		76,422		6,473,708
Toshiba Corp.		Japan		9,747		301,647

						6,775,355

Insurance 0.4%
^aAon PLC, A		United States		6,261		1,903,657
Argo Group International Holdings Ltd.		United States		28,256		820,837

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Shares/ Warrants/ Rights		Value

Common Stocks and Other Equity Interests (continued)
Insurance (continued)
^dW.R. Berkley Corp.		United States		17,781	$	1,176,924

						3,901,418

Interactive Media & Services 0.1%
^aAlphabet Inc., A		United States		12,669		1,140,970
^aMeta Platforms Inc., A		United States		583		101,990
^aWejo Group Ltd., 11/18/26, wts.		United States		3,488		297

						1,243,257

Internet & Direct Marketing Retail 0.0%^†
^aAmazon.com Inc.		United States		912		85,938
^aCazoo Group Ltd., 8/26/26, wts.		Cayman Islands		19,178		193
^aLands' End Inc.		United States		15,960		121,296

						207,427

IT Services 0.8%
Accenture PLC, A		United States		87		23,103
^aCore Scientific Inc., 1/19/27, wts.		United States		1,383		256
^aEvo Payments Inc., A		United States		83,806		2,836,833
^aGDS Holdings Ltd., ADR		China		43,141		830,464
^dMasterCard Inc., A		United States		5,283		1,876,997
^aMoneyGram International Inc.		United States		75,693		821,269
^aPushpay Holdings Ltd.		New Zealand		749,847		588,811
^aVnet Group Inc., ADR		China		40,295		159,971

						7,137,704

Leisure Products 0.0%^†
^aTonies SE, A, 4/30/26, wts.		Germany		41,605		11,001

Life Sciences Tools & Services 0.8%
Danaher Corp., W		United States		3,268		808,928
^aMettler-Toledo International Inc.		United States		3,596		5,155,621
^dThermo Fisher Scientific Inc.		United States		2,282		1,236,297

						7,200,846

Machinery 0.6%
^dAltra Industrial Motion Corp.		United States		66,913		4,117,157
^aBerkshire Grey Inc., 7/21/26, wts.		United States		23,782		4,982
Cummins Inc.		United States		71		17,259
Deere & Co.		United States		79		33,120
Fanuc Corp.		Japan		4,848		824,019
^aFast Radius Inc., 2/11/28, wts.		United States		2,678		2
Hillenbrand Inc.		United States		14,039		661,799
^a,cNikola Corp.		United States		33,653		74,710

						5,733,048

Media 1.0%
^aAltice USA Inc., A		United States		29,227		115,739
^aClear Channel Outdoor Holdings Inc., A		United States		154,479		273,428
Comcast Corp., A		United States		1,041		38,694
^aInnovid Corp., A, 12/31/27, wts.		Israel		69		14
Shaw Communications Inc., B		Canada		262,642		7,608,817
Tegna Inc.		United States		71,705		1,247,667
Telenet Group Holding NV		Belgium		4,898		75,709

						9,360,068

Metals & Mining 1.2%
^aIamgold Corp.		Burkina Faso		362,074		821,908
^aNewcrest Mining Ltd.		Australia		60,548		934,068
Newmont Corp.		United States		480		20,933
Oz Minerals Ltd.		Australia		231,218		4,347,051

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Shares/ Warrants/ Rights		Value

Common Stocks and Other Equity Interests (continued)
Metals & Mining (continued)
Yamana Gold Inc.		Canada		988,278	$	5,040,218

						11,164,178

Multi-Utilities 0.3%
Algonquin Power & Utilities Corp.		Canada		52,455		400,572
Dominion Energy Inc.		United States		48,801		2,714,312

						3,114,884

Oil, Gas & Consumable Fuels 0.4%
^aBattalion Oil Corp.		United States		3,790		34,148
California Resources Corp.		United States		3,913		165,129
Canadian Natural Resources Ltd.		Canada		2,814		159,019
Devon Energy Corp.		United States		2,799		150,922
Diamondback Energy Inc.		United States		1,778		249,951
EOG Resources Inc.		United States		1,313		148,395
^eGazprom PJSC		Russia		615,160		—
^dNew Fortress Energy Inc., A		United States		18,949		625,127
Occidental Petroleum Corp.		United States		29,876		1,749,539
Pioneer Natural Resources Co.		United States		509		102,009
Targa Resources Corp.		United States		6,090		451,269
^a,dTellurian Inc.		United States		222,065		330,877
The Williams Cos. Inc.		United States		760		22,876

						4,189,261

Personal Products 0.4%
L'Oreal SA		France		8,679		3,430,574

Pharmaceuticals 0.1%
^aAmryt Pharma PLC, ADR		United Kingdom		35,844		523,681
^bBristol-Myers Squibb Co.		United States		305		21,033
Johnson & Johnson		United States		287		43,985
^bMerck & Co. Inc.		United States		283		30,066

						618,765

Professional Services 0.1%
^aAtlas Technical Consultants Inc.		United States		79,963		977,948

Real Estate Management & Development 0.0%^†
^a,cRedfin Corp.		United States		4,100		30,381

Road & Rail 1.0%
Canadian Pacific Railway Ltd.		Canada		49,408		3,752,044
^dCSX Corp.		United States		108,045		3,294,292
^d,eHertz Corp. Escrow		United States		1,982,000		—
^dUnion Pacific Corp.		United States		11,369		2,356,566

						9,402,902

Semiconductors & Semiconductor Equipment 0.4%
Broadcom Inc.		United States		71		42,195
^bMicrochip Technology Inc.		United States		459		37,193
^bQualcomm Inc.		United States		735		90,794
^bSilicon Motion Technology Corp., ADR		Taiwan		12,712		854,501
^aSolarEdge Technologies Inc.		United States		5,684		1,807,057
^aTower Semiconductor Ltd.		Israel		13,406		543,747

						3,375,487

Software 1.7%
^a,eCoupa Software Inc.		United States		101,673		8,232,463
^aDuck Creek Technologies Inc.		United States		4,911		93,014
Infomedia Ltd.		Australia		497,543		467,875
Intuit Inc.		United States		3,049		1,241,492
^aLivevox Holdings Inc., 6/18/26, wts.		United States		23,891		4,812
^aMagnet Forensics Inc.		Canada		31,498		1,021,463

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Shares/ Warrants/ Rights		Value

Common Stocks and Other Equity Interests (continued)
Software (continued)
^dMicrosoft Corp.		United States		16,074	$	4,009,177
^aMomentive Global Inc.		United States		24,628		169,933
^aSalesforce Inc.		United States		1,698		277,810
^aSplunk Inc.		United States		954		97,785
^aSumo Logic Inc.		United States		33,391		396,351
^aWorkiva Inc., A		United States		811		72,341

						16,084,516

Specialty Retail 0.7%
^aCarvana Co., A		United States		1		10
The Home Depot Inc.		United States		15,338		4,548,330
^a,bTravelcenters of America Inc.		United States		17,157		1,447,193
^a,fWatches of Switzerland Group PLC, 144A		United Kingdom		108,921		1,089,691

						7,085,224

Technology Hardware, Storage & Peripherals 0.0%^†
^bApple Inc.		United States		847		124,856
^aWestern Digital Corp.		United States		8,489		326,657

						451,513

Textiles, Apparel & Luxury Goods 0.2%
Hermes International		France		948		1,716,008
^aLanvin Group Holdings Ltd., 12/14/27, wts.		Hong Kong		1,524		533

						1,716,541

Trading Companies & Distributors 0.3%
^dHerc Holdings Inc.		United States		15,010		2,155,286
ITOCHU Corp.		Japan		5,200		155,431
Mitsubishi Corp.		Japan		9,900		336,314
Mitsui & Co. Ltd.		Japan		5,400		151,556

						2,798,587

Transportation Infrastructure 0.3%
^aAtlas Corp.		Canada		194,952		2,994,463

Water Utilities 0.1%
Guangdong Investment Ltd.		China		1,312,087		1,325,918

Wireless Telecommunication Services 0.3%
^aT-Mobile US Inc.		United States		2,837		403,364
^dVodafone Group PLC, ADR		United Kingdom		165,741		1,983,920

						2,387,284

Total Common Stocks and Other Equity Interests (Cost $218,390,577)						255,869,694

Preferred Stocks 0.0%^†
Communications Equipment 0.0%^†
^aRiverbed Technology Inc., pfd., A		United States		3,699		943

Gas Utilities 0.0%^†
El Paso Energy Capital Trust I, 4.75%, pfd.		United States		114		5,278

Professional Services 0.0%^†
Clarivate PLC, 5.25%, pfd.		United Kingdom		3,023		133,345

Thrifts & Mortgage Finance 0.0%^†
FHLMC, 8.375%, pfd., Z		United States		8,177		17,335
FNMA, 8.25%, pfd., S		United States		15,150		33,936

						51,271

Total Preferred Stocks (Cost $397,924)						190,837

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*			Value

Convertible Bonds 13.8%
Aerospace & Defense 0.2%
Kaman Corp., senior note, 3.25%, 5/01/24		United States		1,576,000		$	1,487,744
^fVirgin Galactic Holdings Inc., senior note, 144A, 2.50%, 2/01/27		United States		192,000			116,736

							1,604,480

Airlines 0.7%
^fAir France-KLM, senior note, Reg S, 0.125%, 3/25/26		France		32,034	EUR		579,518
American Airlines Group Inc., senior note, 6.50%, 7/01/25		United States		691,000			836,455
^fCathay Pacific Finance III Ltd., senior note, Reg S, 2.75%, 2/05/26		Hong Kong		8,000,000	HKD		1,050,526
^dCopa Holdings SA, senior note, 4.50%, 4/15/25		Panama		1,519,000			2,828,953
^fGOL Equity Finance SA, senior note, 144A, 3.75%, 7/15/24		Brazil		1,248,000			677,554
Jetblue Airways Corp., senior note, 0.50%, 4/01/26		United States		691,000			535,834
Southwest Airlines Co., senior note, 1.25%, 5/01/25		United States		340,000			388,705

							6,897,545

Auto Components 0.0%^†
^fLuminar Technologies Inc., senior note, 144A, 1.25%, 12/15/26		United States		223,000			162,816

Automobiles 0.4%
^fFisker Inc., senior note, 144A, 2.50%, 9/15/26		United States		860,000			462,800
^dFord Motor Co., senior note, zero cpn., 3/15/26		United States		749,000			724,657
^dLi Auto Inc., senior note, 0.25%, 5/01/28		China		810,000			893,835
^fLucid Group Inc., senior note, 144A, 1.25%, 12/15/26		United States		817,000			494,285
NIO Inc., senior note, zero cpn., 2/01/26		China		290,000			267,543
Winnebago Industries Inc., senior note, 1.50%, 4/01/25		United States		576,000			670,680

							3,513,800

Banks 0.2%
Hope Bancorp Inc., senior bond, 2.00%, 5/15/38		United States		1,507,000			1,482,135

Biotechnology 0.8%
Apellis Pharmaceuticals Inc., senior note, 3.50%, 9/15/26		United States		519,000			964,042
^fAvid SPV LLC, senior note, 144A, 1.25%, 3/15/26		United States		579,000			604,515
^cBioMarin Pharmaceutical Inc., senior sub. note, 1.25%, 5/15/27		United States		555,000			570,609
^dCoherus Biosciences Inc., senior sub. note, 1.50%, 4/15/26		United States		1,135,000			797,337
Dynavax Technologies Corp., senior note, 2.50%, 5/15/26		United States		1,111,000			1,373,752
Exact Sciences Corp., senior note, 0.375%, 3/15/27		United States		116,000			105,633
Gossamer Bio Inc., senior note, 5.00%, 6/01/27		United States		376,000			110,261
^fHalozyme Therapeutics Inc., senior note, 144A, 1.00%, 8/15/28		United States		325,000			338,813
Insmed Inc., senior note, 0.75%, 6/01/28		United States		805,000			699,728
Intercept Pharmaceuticals Inc., senior secured note, 3.50%, 2/15/26		United States		114,000			145,074
Ionis Pharmaceuticals Inc., senior note, 0.125%, 12/15/24		United States		145,000			133,946
zero cpn., 4/01/26		United States		254,000			231,616
Karyopharm Therapeutics Inc., senior note, 3.00%, 10/15/25		United States		438,000			331,080
^fPharming Group NV, senior note, Reg S, 3.00%, 1/21/25		Netherlands		400,000	EUR		389,234
^dTravere Therapeutics Inc., senior note, 2.25%, 3/01/29		United States		633,000			612,111

							7,407,751

Building Products 0.0%^†
^fAxon Enterprise Inc., senior note, 144A, 0.50%, 12/15/27		United States		122,000			132,065

Chemicals 0.2%
Amyris Inc., senior note, 1.50%, 11/15/26		United States		870,000			271,751
^fDanimer Scientific Inc., senior note, 144A, 3.25%, 12/15/26		United States		551,000			242,785
Livent Corp., senior note, 4.125%, 7/15/25		United States		324,000			902,016

							1,416,552

Construction & Engineering 0.1%
Granite Construction Inc., senior note, 2.75%, 11/01/24		United States		475,000			670,676

Consumer Finance 0.4%
Encore Capital Europe Finance Ltd., senior note, 4.50%, 9/01/23		United States		500,000			618,687

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*			Value

Convertible Bonds (continued)
Consumer Finance (continued)
Encore Capital Group Inc., senior note, 3.25%, 10/01/25		United States		371,000		$	509,940
EZCORP Inc., senior note,
2.875%, 7/01/24		United States		618,000			667,944
^f144A, 3.75%, 12/15/29		United States		582,000			585,834
PRA Group Inc., senior note, 3.50%, 6/01/23		United States		1,100,000			1,109,350
^fZip Co. Ltd., senior note, Reg S, zero cpn., 4/23/28		Australia		800,000	AUD		131,888

							3,623,643

Diversified Consumer Services 0.2%
Chegg Inc., senior note,
0.125%, 3/15/25		United States		577,000			503,721
zero cpn., 9/01/26		United States		289,000			227,635
Marathon Digital Holdings Inc., senior note, 1.00%, 12/01/26		United States		202,000			71,682
^fNexi SpA, senior note, Reg S, zero cpn., 2/24/28		Italy		500,000	EUR		383,657
Sabre GLBL Inc., senior note, 4.00%, 4/15/25		United States		288,000			288,382

							1,475,077

Diversified Financial Services 0.2%
Lendingtree Inc., senior note, 0.50%, 7/15/25		United States		1,286,000			1,015,940
Upstart Holdings Inc., senior note, 0.25%, 8/15/26		United States		731,000			475,150
^fWisdomtree Inc., senior note, 144A, 5.75%, 8/15/28		United States		94,000			94,543

							1,585,633

Diversified Telecommunication Services 0.1%
^fMatch Group Financeco 2 Inc., senior note, 144A, 0.875%, 6/15/26		United States		874,000			773,247
^fRadius Global Infrastructure Inc., senior note, 144A, 2.50%, 9/15/26		United States		677,000			633,418

							1,406,665

Electric Utilities 0.0%^†
^fAlliant Energy Corp., senior note, 144A, 3.875%, 3/15/26		United States		66,000			65,835
^fPPL Capital Funding Inc., senior note, 144A, 2.875%, 3/15/28		United States		105,000			103,420
^fThe Southern Co., senior note, 144A, 3.875%, 12/15/25		United States		105,000			103,692

							272,947

Electrical Equipment 0.1%
Plug Power Inc., senior note, 3.75%, 6/01/25		United States		407,000			1,216,849

Electronic Equipment, Instruments & Components 0.1%
PAR Technology Corp., senior note, 1.50%, 10/15/27		United States		463,000			372,020
Vishay Intertechnology Inc., senior note, 2.25%, 6/15/25		United States		357,000			348,106

							720,126

Energy Equipment & Services 0.2%
^dHelix Energy Solutions Group Inc., senior note, 6.75%, 2/15/26		United States		978,000			1,410,243
Transocean Inc., senior note, 4.625%, 9/30/29		United States		133,000			297,512

							1,707,755

Entertainment 0.4%
Cinemark Holdings Inc., senior note, 4.50%, 8/15/25		United States		1,137,000			1,371,679
Live Nation Entertainment Inc., senior note,
2.00%, 2/15/25		United States		115,000			112,527
^c,f144A, 3.125%, 1/15/29		United States		347,000			344,398
^d,fThe Marcus Corp., senior note, 144A, 5.00%, 9/15/25		United States		473,000			755,322
^dSea Ltd., senior note,
2.375%, 12/01/25		Singapore		643,000			678,220
0.25%, 9/15/26		Singapore		588,000			447,174

							3,709,320

Equity Real Estate Investment Trusts (REITs) 0.2%
Braemar Hotels & Resorts Inc., senior note, 4.50%, 6/01/26		United States		641,000			633,473
^fHat Holdings I LLC / Hat Holdings II LLC, senior note, 144A, zero cpn., 5/01/25		United States		579,000			548,963

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*		Value

Convertible Bonds (continued)
Equity Real Estate Investment Trusts (REITs) (continued)
^dPebblebrook Hotel Trust, senior note, 1.75%, 12/15/26		United States		987,000	$	848,326
Summit Hotel Properties Inc., senior note, 1.50%, 2/15/26		United States		261,000		228,245

						2,259,007

Food & Staples Retailing 0.1%
^fThe Chefs' Warehouse Inc., senior note, 144A, 2.375%, 12/15/28		United States		606,000		605,533

Food Products 0.0%^†
^fPost Holdings Inc., senior note, 144A, 2.50%, 8/15/27		United States		116,000		120,559

Health Care Equipment & Supplies 0.4%
Alphatec Holdings Inc., senior note, 0.75%, 8/01/26		United States		144,000		149,328
^fConmed Corp., senior note, 144A, 2.25%, 6/15/27		United States		465,000		440,123
Cutera Inc., senior note,
2.25%, 3/15/26		United States		239,000		285,194
^d,f144A, 2.25%, 6/01/28		United States		787,000		693,347
^f144A, 4.00%, 6/01/29		United States		47,000		41,048
Envista Holdings Corp., senior note, 2.375%, 6/01/25		United States		115,000		218,730
^fInteger Holdings Corp., senior note, 144A, 2.125%, 2/15/28		United States		10,000		10,705
Mesa Laboratories Inc., senior note, 1.375%, 8/15/25		United States		253,000		236,302
NuVasive Inc., senior note,
1.00%, 6/01/23		United States		688,000		679,400
0.375%, 3/15/25		United States		406,000		360,731
^dVarex Imaging Corp., senior note, 4.00%, 6/01/25		United States		1,008,000		1,092,953

						4,207,861

Health Care Providers & Services 0.1%
Guardant Health Inc., senior note, zero cpn., 11/15/27		United States		110,000		75,570
Inotiv Inc., senior note, 3.25%, 10/15/27		United States		587,000		270,671
PetIQ Inc., A, senior note, 4.00%, 6/01/26		United States		641,000		532,604

						878,845

Health Care Technology 1.0%
8x8 Inc., senior note, 4.00%, 2/01/28		United States		481,000		487,313
Bandwidth Inc., senior note, 0.50%, 4/01/28		United States		966,000		627,900
Bilibili Inc., senior note, 0.50%, 12/01/26		China		115,000		97,232
Bill Holdings Inc., senior note, zero cpn., 12/01/25		United States		932,000		866,294
Blackline Inc., senior note,
0.125%, 8/01/24		United States		338,000		377,335
zero cpn., 3/15/26		United States		749,000		636,182
Cerence Inc., senior note, 3.00%, 6/01/25		United States		467,000		493,596
Cloudflare Inc., senior note, zero cpn., 8/15/26		United States		587,000		488,677
Confluent Inc., senior note, zero cpn., 1/15/27		United States		698,000		545,897
Digitalocean Holdings Inc., senior note, zero cpn., 12/01/26		United States		873,000		672,860
Evolent Health Inc., senior note, 1.50%, 10/15/25		United States		302,000		377,418
Five9 Inc., senior note, 0.50%, 6/01/25		United States		346,000		311,400
Health Catalyst Inc., senior note, 2.50%, 4/15/25		United States		691,000		651,661
Hubspot Inc., senior note, 0.375%, 6/01/25		United States		93,000		136,431
Livongo Health Inc., senior note, 0.875%, 6/01/25		United States		180,000		159,289
Model N Inc., senior note, 2.625%, 6/01/25		United States		115,000		136,390
Mongodb Inc., senior note, 0.25%, 1/15/26		United States		357,000		432,952
^fNextgen Healthcare Inc., senior note, 144A, 3.75%, 11/15/27		United States		582,000		595,677
Nutanix Inc., senior note, 0.25%, 10/01/27		United States		383,000		327,356
Pagerduty Inc., senior note, 1.25%, 7/01/25		United States		230,000		242,880
Teladoc Health Inc., senior note, 1.25%, 6/01/27		United States		550,000		432,755
Unity Software Inc., senior note, zero cpn., 11/15/26		United States		810,000		619,245

						9,716,740

Hotels, Restaurants & Leisure 0.4%
Carnival Corp., senior note,
5.75%, 10/01/24		United States		311,000		403,678

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*			Value

Convertible Bonds (continued)
Hotels, Restaurants & Leisure (continued)
Carnival Corp., senior note, (continued)
^f144A, 5.75%, 12/01/27		United States		369,000		$	409,037
Marriott Vacations Worldwide Corp., senior note,
^f144A, 3.25%, 12/15/27		United States		588,000			606,228
zero cpn., 1/15/26		United States		144,000			148,464
Penn Entertainment Inc., senior note, 2.75%, 5/15/26		United States		25,000			37,175
Royal Caribbean Cruises Ltd., senior note,
4.25%, 6/15/23		United States		231,000			248,978
2.875%, 11/15/23		United States		418,000			442,662
^f144A, 6.00%, 8/15/25		United States		867,000			1,408,008

							3,704,230

Household Durables 0.0%^†
Lci Industries, senior note, 1.125%, 5/15/26		United States		288,000			262,800

Independent Power & Renewable Electricity Producers 0.0%^†
^c,fSunnova Energy International Inc., senior note, 144A, 2.625%, 2/15/28		United States		481,000			379,175

Interactive Media & Services 0.2%
Snap Inc., senior note,
0.25%, 5/01/25		United States		230,000			215,855
0.75%, 8/01/26		United States		349,000			311,171
zero cpn., 5/01/27		United States		175,000			126,612
0.125%, 3/01/28		United States		1,105,000			776,263

							1,429,901

Internet & Direct Marketing Retail 1.1%
Airbnb Inc., senior note, zero cpn., 3/15/26		United States		587,000			506,874
^fCornwall Jersey Ltd., senior note, Reg S, 0.75%, 4/16/26		United Kingdom		300,000	GBP		243,577
^fDelivery Hero AG, senior note, Reg S,
1.50%, 1/15/28		South Korea		800,000	EUR		576,948
A, 1.00%, 4/30/26		South Korea		600,000	EUR		497,820
B, 2.125%, 3/10/29		South Korea		100,000	EUR		69,055
^fDelivery Hero SE, senior note, Reg S, 1.00%, 1/23/27		South Korea		200,000	EUR		162,990
Etsy Inc., senior note,
0.125%, 10/01/26		United States		174,000			268,047
0.25%, 6/15/28		United States		326,000			273,539
^cFiverr International Ltd., senior note, zero cpn., 11/01/25		United States		989,000			826,551
^dFubotv Inc., senior note, 3.25%, 2/15/26		United States		104,000			51,325
Groupon Inc., senior note, 1.125%, 3/15/26		United States		369,000			210,528
^fJust Eat Takeaway.com NV, senior note, Reg S,
1.25%, 4/30/26		United Kingdom		600,000	EUR		533,405
B, 0.625%, 2/09/28		United Kingdom		700,000	EUR		501,277
^dMagnite Inc., senior note, 0.25%, 3/15/26		United States		320,000			256,583
Mercadolibre Inc., senior note, 2.00%, 8/15/28		Brazil		185,000			519,480
Okta Inc., senior note, 0.125%, 9/01/25		United States		873,000			761,692
^fPorch Group Inc., senior note, 144A, 0.75%, 9/15/26		United States		1,428,000			886,647
Q2 Holdings Inc., senior note, 0.75%, 6/01/26		United States		463,000			393,550
The Realreal Inc., senior note, 1.00%, 3/01/28		United States		557,000			213,777
Spotify USA Inc., senior note, zero cpn., 3/15/26		United States		791,000			652,575
Techtarget Inc., senior note, zero cpn., 12/15/26		United States		452,000			353,690
Wayfair Inc., senior note,
1.125%, 11/01/24		United States		230,000			204,125
0.625%, 10/01/25		United States		107,000			80,477
1.00%, 8/15/26		United States		331,000			228,809
^f144A, 3.25%, 9/15/27		United States		758,000			699,634
Zillow Group Inc., senior note,
0.75%, 9/01/24		United States		575,000			656,938

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*		Value

Convertible Bonds (continued)
Internet & Direct Marketing Retail (continued)
Zillow Group Inc., senior note, (continued)
1.375%, 9/01/26		United States		15,000	$	17,362

						10,647,275

IT Services 0.5%
3d Systems Corp., senior note, zero cpn., 11/15/26		United States		174,000		128,651
^fLumentum Holdings Inc., senior note, 144A, 0.50%, 6/15/28		United States		115,000		87,126
Mitek Systems Inc., senior note, 0.75%, 2/01/26		United States		933,000		762,410
^cRapid7 Inc., senior note, 0.25%, 3/15/27		United States		406,000		359,194
^fRepay Holdings Corp., A, senior note, 144A, zero cpn., 2/01/26		United States		577,000		459,004
Shift4 Payments Inc., senior note,
0.50%, 8/01/27		United States		58,000		50,663
^dzero cpn., 12/15/25		United States		816,000		871,080
^dShopify Inc., senior note, 0.125%, 11/01/25		Canada		645,000		550,185
Zscaler Inc., senior note, 0.125%, 7/01/25		United States		872,000		971,844

						4,240,157

Leisure Products 0.3%
NCL Corp. Ltd., senior note,
6.00%, 5/15/24		United States		291,000		382,374
5.375%, 8/01/25		United States		357,000		407,337
1.125%, 2/15/27		United States		739,000		554,657
2.50%, 2/15/27		United States		599,000		472,990
Peloton Interactive Inc., senior note, zero cpn., 2/15/26		United States		333,000		261,345
Topgolf Callaway Brands Corp., senior note, 2.75%, 5/01/26		United States		581,000		848,623

						2,927,326

Machinery 0.2%
Bloom Energy Corp., senior note, 2.50%, 8/15/25		United States		961,000		1,408,826
^fDesktop Metal Inc., senior note, 144A, 6.00%, 5/15/27		United States		461,000		475,291
The Greenbrier Cos. Inc., senior note, 2.875%, 4/15/28		United States		406,000		347,942

						2,232,059

Media 0.6%
Cable One Inc., senior note, zero cpn., 3/15/26		United States		5,000		3,943
DISH Network Corp.,
senior bond, 3.375%, 8/15/26		United States		2,094,000		1,348,703
senior note, 2.375%, 3/15/24		United States		752,000		693,520
senior note, zero cpn., 12/15/25		United States		670,000		430,476
^fLiberty Broadband Corp., senior bond, 144A, 3.125%, 3/31/53		United States		670,000		658,610
Liberty Interactive LLC,
senior bond, 4.00%, 11/15/29		United States		1,448,000		514,040
senior note, 3.75%, 2/15/30		United States		1,969,000		689,150
^fLiberty Media Corp., senior bond, 144A,
2.125%, 3/31/48		United States		788,000		750,964
^d2.75%, 12/01/49		United States		766,000		692,464

						5,781,870

Metals & Mining 0.5%
ATI Inc., senior note, 3.50%, 6/15/25		United States		437,000		1,168,538
Century Aluminum Co., senior note, 2.75%, 5/01/28		United States		514,000		465,941
^d,fIvanhoe Mines Ltd., senior note, 144A, 2.50%, 4/15/26		Canada		465,000		595,353
Lithium Americas Corp., senior note, 1.75%, 1/15/27		Canada		262,000		223,776
^fMP Materials Corp., senior note, 144A, 0.25%, 4/01/26		United States		463,000		476,460
U.S. Steel Corp., senior note, 5.00%, 11/01/26		United States		698,000		1,647,629
Xometry Inc., senior note, 1.00%, 2/01/27		United States		521,000		445,455

						5,023,152

Mortgage Real Estate Investment Trusts (REITs) 0.6%
^fArbor Realty Trust Inc., senior note, 144A, 7.50%, 8/01/25		United States		529,000		546,457
KKR Real Estate Finance Trust Inc., senior note, 6.125%, 5/15/23		United States		252,000		250,582

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*			Value

Convertible Bonds (continued)
Mortgage Real Estate Investment Trusts (REITs) (continued)
PennyMac Corp., senior note,
5.50%, 11/01/24		United States		570,000		$	535,088
^d5.50%, 3/15/26		United States		1,197,000			1,074,906
Redwood Trust Inc., senior note,
4.75%, 8/15/23		United States		2,572,000			2,565,570
^f144A, 7.75%, 6/15/27		United States		522,000			474,041
Two Harbors Investment Corp., senior note, 6.25%, 1/15/26		United States		657,000			588,237

							6,034,881

Oil, Gas & Consumable Fuels 0.2%
Array Technologies Inc., senior note, 1.00%, 12/01/28		United States		644,000			647,542
Enphase Energy Inc., senior note, zero cpn.,
3/01/26		United States		407,000			413,919
3/01/28		United States		144,000			149,190
^cSolaredge Technologies Inc., senior note, zero cpn., 9/15/25		United States		311,000			412,542

							1,623,193

Personal Products 0.1%
^c,fThe Beauty Health Co., senior note, 144A, 1.25%, 10/01/26		United States		714,000			592,174

Pharmaceuticals 0.6%
Aurora Cannabis Inc., senior note, 5.50%, 2/28/24		Canada		394,000			378,240
Avadel Finance Cayman Ltd., senior note, 4.50%, 10/02/23		United States		597,000			668,123
^fCollegium Pharmaceutical Inc., senior note, 144A, 2.875%, 2/15/29		United States		635,000			614,039
^fHerbalife Nutrition Ltd., senior note, 144A, 4.25%, 6/15/28		United States		290,000			393,240
^fInnoviva Inc., senior note, 144A, 2.125%, 3/15/28		United States		866,000			693,666
Mannkind Corp., senior note, 2.50%, 3/01/26		United States		1,553,000			1,884,512
Pacira Biosciences Inc., senior note, 0.75%, 8/01/25		United States		461,000			431,323
^dRevance Therapeutics Inc., senior note, 1.75%, 2/15/27		United States		701,000			902,187

							5,965,330

Professional Services 0.1%
Upwork Inc., senior note, 0.25%, 8/15/26		United States		625,000			488,752

Real Estate Management & Development 0.4%
^fOpendoor Technologies Inc., senior note, 144A, 0.25%, 8/15/26		United States		2,572,000			1,207,393
Realogy Group LLC / Realogy Co.-Issuer Corp., senior note,
0.25%, 6/15/26		United States		1,580,000			1,108,371
Redfin Corp., senior note,
0.50%, 4/01/27		United States		962,000			588,154
zero cpn., 10/15/25		United States		424,000			305,280
^fStoragevault Canada Inc., senior note, 144A, 5.00%, 3/31/28		Canada		184,000	CAD		135,522

							3,344,720

Road & Rail 0.0%^†
Uber Technologies Inc., senior note, zero cpn., 12/15/25		United States		428,000			373,960

Semiconductors & Semiconductor Equipment 0.5%
^fAms-Osram AG, senior note, Reg S, 2.125%, 11/03/27		Austria		900,000	EUR		691,101
Microchip Technology Inc., senior sub. bond, 1.625%, 2/15/27		United States		288,000			661,138
^fOn Semiconductor Corp., senior note, 144A, 0.50%, 3/01/29		United States		52,000			52,535
^fSemtech Corp., senior note, 144A, 1.625%, 11/01/27		United States		577,000			617,089
Smart Global Holdings Inc., senior note, 2.00%, 2/01/29		United States		145,000			146,740
Veeco Instruments Inc., senior note, 3.75%, 6/01/27		United States		1,229,000			2,089,949
Wolfspeed Inc., senior note,
0.25%, 2/15/28		United States		101,000			89,132
^f144A, 1.875%, 12/01/29		United States		80,000			75,760

							4,423,444

Software 0.7%
^fAltair Engineering Inc., senior note, 144A, 1.75%, 6/15/27		United States		291,000			317,190
Alteryx Inc., senior note, 1.00%, 8/01/26		United States		185,000			158,452

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*			Value

Convertible Bonds (continued)
Software (continued)
Bentley Systems Inc., senior note, 0.375%, 7/01/27		United States		353,000		$	294,931
Datadog Inc., senior note, 0.125%, 6/15/25		United States		345,000			379,672
^fDye & Durham Ltd., senior note, 144A, 3.75%, 3/01/26		Canada		1,191,000	CAD		686,582
Envestnet Inc., senior note, 0.75%, 8/15/25		United States		461,000			422,967
Everbridge Inc., senior note,
0.125%, 12/15/24		United States		218,000			198,093
zero cpn., 3/15/26		United States		285,000			241,538
^dGuidewire Software Inc., senior note, 1.25%, 3/15/25		United States		473,000			447,931
^di3 Verticals LLC, senior note, 1.00%, 2/15/25		United States		577,000			544,183
Palo Alto Networks Inc., senior note, 0.75%, 7/01/23		United States		521,000			1,101,402
Ringcentral Inc., senior note, zero cpn.,
3/15/26		United States		612,000			499,163
A, 3/01/25		United States		749,000			661,929
Splunk Inc., senior note,
1.125%, 9/15/25		United States		588,000			578,004
1.125%, 6/15/27		United States		253,000			217,400
Workiva Inc., senior note, 1.125%, 8/15/26		United States		87,000			111,317

							6,860,754

Specialty Retail 0.4%
^cBurlington Stores Inc., senior note, 2.25%, 4/15/25		United States		869,000			1,027,049
The Cheesecake Factory Inc., senior note, 0.375%, 6/15/26		United States		233,000			198,341
^dGuess? Inc., senior note, 2.00%, 4/15/24		United States		1,216,000			1,315,104
National Vision Holdings Inc., senior note, 2.50%, 5/15/25		United States		835,000			1,103,605
^fShift Technologies Inc., senior note, 144A, 4.75%, 5/15/26		United States		1,014,000			120,463

							3,764,562

Transportation Infrastructure 0.3%
^dEagle Bulk Shipping Inc., senior note, 5.00%, 8/01/24		United States		1,311,000			2,734,676


Total Convertible Bonds (Cost $136,726,168)							129,628,771


Corporate Bonds and Notes 13.3%
Aerospace & Defense 0.2%
The Boeing Co., senior bond, 3.375%, 6/15/46		United States		50,000			33,402
Embraer Netherlands Finance BV, senior bond, 5.05%, 6/15/25		Brazil		80,000			77,173
Raytheon Technologies Corp., senior note, 5.00%, 2/27/26		United States		280,000			279,651
^fST Engineering Urban Solutions USA Inc., senior note, Reg S, 3.75%, 5/05/32		Singapore		400,000			363,760
^fTransDigm Inc., senior secured note, 144A,
8.00%, 12/15/25		United States		75,000			76,720
^g6.75%, 8/15/28		United States		602,000			599,743
^f,gTriumph Group Inc., senior secured note, 144A, 9.00%, 3/15/28		United States		342,000			342,000

							1,772,449

Airlines 0.1%
^fAllegiant Travel Co., senior secured note, 144A, 7.25%, 8/15/27		United States		214,000			210,448
United Airlines Pass-Through Trust,
B, 4.875%, 1/15/26		United States		36,175			35,099
2019-2, B, 3.50%, 5/01/28		United States		293,226			265,593

							511,140

Automobiles 0.3%
Ford Motor Credit Co. LLC, senior note,
6.95%, 3/06/26		United States		200,000			200,360
E, 6.86%, 6/05/26		United States		200,000	GBP		240,624
^d,fFrontier Communications Holdings LLC, senior secured note,
144A, 8.75%, 5/15/30		United States		1,218,000			1,232,799
General Motors Co., senior bond,
^c5.60%, 10/15/32		United States		310,000			295,077

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*		Value

Corporate Bonds and Notes (continued)
Automobiles (continued)
General Motors Co., senior bond, (continued)
5.20%, 4/01/45		United States		30,000	$	24,780
5.95%, 4/01/49		United States		90,000		80,892
General Motors Financial Co. Inc., junior sub. note,
^c,hA, 5.75% to 9/30/27, FRN thereafter, Perpetual		United States		30,000		27,417
^c,hB, 6.50% to 9/30/28, FRN thereafter, Perpetual		United States		75,000		70,406
senior note, 6.00%, 1/09/28		United States		175,000		176,244
Toyota Motor Credit Corp.,
senior bond, 4.70%, 1/12/33		United States		200,000		196,342
senior note, 4.80%, 1/10/25		United States		415,000		413,002

						2,957,943

Banks 1.5%
Banco Santander SA, senior note, 5.147%, 8/18/25		Spain		200,000		197,622
^fBank Rakyat Indonesia Persero TBK PT, senior note, Reg S, 4.625%, 7/20/23		Indonesia		400,000		398,812
Barclays PLC, sub. bond, 3.564% to 9/23/30, FRN thereafter, 9/23/35		United Kingdom		525,000		418,976
^hjunior sub. note, 4.375% to 3/15/28, FRN thereafter, Perpetual		United Kingdom		210,000		165,453
^fCanara Bank, E, senior note, Reg S, 3.875%, 3/28/24		India		466,000		455,650
^fCredit Suisse Group AG, 144A,
senior bond, 9.016% to 11/15/32, FRN thereafter, 11/15/33		Switzerland		285,000		299,543
senior note, 2.193% to 6/05/25, FRN thereafter, 6/05/26		Switzerland		250,000		215,440
Deutsche Bank AG, sub. bond, 3.729% to 10/14/30, FRN thereafter, 1/14/32		Germany		400,000		313,972
^hHSBC Holdings PLC, junior sub note,
6.25% to 3/23/23, FRN thereafter, Perpetual		United Kingdom		3,300,000		3,303,690
8.00% to 3/07/28, FRN thereafter, Perpetual		United Kingdom		300,000		302,550
Keybank NA, senior note, 4.70%, 1/26/26		United States		810,000		798,588
Mizuho Financial Group Inc., senior note, 3.549%, 3/05/23		Japan		200,000		199,968
^fSociete Generale SA, 144A,
senior bond, 6.691% to 1/10/33, FRN thereafter, 1/10/34		France		200,000		204,262
sub. bond, 3.653% to 7/08/30, FRN thereafter, 7/08/35		France		200,000		161,135
^fStandard Chartered PLC,
sub. bond, 144A, 3.265% to 11/18/30, FRN thereafter, 2/18/36		United Kingdom		255,000		205,673
^hsenior bond, Reg S, 7.75% to 4/02/23, FRN thereafter, Perpetual		United Kingdom		3,300,000		3,291,527
^fState Bank of India, E, senior note, Reg S, 4.50%, 9/28/23		India		2,300,000		2,284,379
Sumitomo Mitsui Financial Group Inc., senior note, 5.464%, 1/13/26		Japan		805,000		803,552

						14,020,792

Beverages 0.0%^†
PepsiCo Inc., senior note, 4.55%, 2/13/26		United States		405,000		402,679

Biotechnology 0.1%
^gAmgen Inc., senior note, 5.25%, 3/02/25		United States		610,000		608,749

Capital Markets 0.5%
Ares Capital Corp.,
senior bond, 3.20%, 11/15/31		United States		105,000		80,188
senior note, 2.875%, 6/15/28		United States		475,000		390,530
Barings BDC Inc., senior note, 3.30%, 11/23/26		United States		125,000		110,534

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*		Value

Corporate Bonds and Notes (continued)
Capital Markets (continued)
Blackstone Private Credit Fund, senior note,
2.625%, 12/15/26		United States		298,000	$	253,319
3.25%, 3/15/27		United States		289,000		249,080
Blackstone Secured Lending Fund, senior note, 2.125%, 2/15/27		United States		190,000		160,110
FS KKR Capital Corp., senior note, 3.125%, 10/12/28		United States		150,000		123,481
^fHuarong Finance 2017 Co. Ltd., senior bond, Reg S,
4.75%, 4/27/27		China		200,000		173,712
5.50%, 4/27/47		China		200,000		145,527
^fHuarong Finance 2019 Co. Ltd., senior bond, Reg S,
E, 4.50%, 5/29/29		China		1,200,000		975,000
E, 3.875%, 11/13/29		China		500,000		387,026
E, 3.625%, 9/30/30		China		600,000		443,278
^fHuarong Finance II Co. Ltd., senior bond, Reg S,
5.00%, 11/19/25		China		500,000		460,180
EMTN, 4.875%, 11/22/26		China		200,000		176,648
Oaktree Specialty Lending Corp., senior note, 2.70%, 1/15/27		United States		45,000		39,101
Owl Rock Capital Corp., senior note, 2.875%, 6/11/28		United States		250,000		200,566

						4,368,280

Chemicals 0.0%^†
^fAshland LLC, senior bond, 144A, 3.375%, 9/01/31		United States		120,000		95,707
^fBraskem Netherlands Finance BV, senior bond, 144A, 4.50%, 1/31/30		Brazil		200,000		168,718

						264,425

Communications Equipment 0.1%
^fCommScope Inc.,144A,
senior note, 7.125%, 7/01/28		United States		250,000		197,187
senior secured note, 4.75%, 9/01/29		United States		60,000		48,962
^fCommScope Technologies LLC, senior bond, 144A, 5.00%, 3/15/27		United States		305,000		232,860
^fHTA Group Ltd., senior note, 144A, 7.00%, 12/18/25		Tanzania		325,000		309,823

						788,832

Construction & Engineering 0.0%^†
^fGMR Hyderabad International Airport Ltd., senior secured note, 144A, 4.75%, 2/02/26		India		400,000		375,683

Construction Materials 0.1%
^fCemex SAB de CV, 144A,senior secured bond, 5.20%, 9/17/30		Mexico		455,000		416,335
^hsub. note, 5.125% to 6/08/26, FRN thereafter, Perpetual		Mexico		410,000		372,690
^fJeld-Wen Inc., 144A,
senior note, 4.625%, 12/15/25		United States		22,000		19,791
senior secured note, 6.25%, 5/15/25		United States		29,000		28,233

						837,049

Consumer Finance 0.2%
^hAlly Financial Inc., C, junior sub. note, 4.70% to 5/15/28, FRN thereafter, Perpetual		United States		270,000		199,337
^fMuthoot Finance Ltd., senior secured note, Reg S, 4.40%, 9/02/23		India		1,600,000		1,576,800
^c,fNatura Cosmeticos SA, senior note, 144A, 4.125%, 5/03/28		Brazil		245,000		190,562

						1,966,699

Containers & Packaging 0.1%
^fMauser Packaging Solutions Holding Co., senior secured note, 144A, 7.875%, 8/15/26		United States		470,000		473,375

Diversified Consumer Services 0.2%
^fAllied Universal Holdco LLC / Allied Universal Finance Corp., senior secured note, 144A, 6.625%, 7/15/26		United States		117,000		111,251
^fAramark Services Inc., senior note, 144A, 6.375%, 5/01/25		United States		60,000		59,681

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*			Value

Corporate Bonds and Notes (continued)
Diversified Consumer Services (continued)
Global Payments Inc., senior note,
2.90%, 11/15/31		United States		15,000		$	11,906
^c5.40%, 8/15/32		United States		10,000			9,568
^fGLP China Holdings Ltd., E, senior note, Reg S, 2.95%, 3/29/26		China		200,000			154,000
^fThe Hertz Corp., senior note, 144A, 4.625%, 12/01/26		United States		484,000			431,545
^d,fMoneyGram International Inc., senior secured note, 144A, 5.375%, 8/01/26		United States		994,000			1,005,349
^fSabre GLBL Inc., senior secured note, 144A, 7.375%, 9/01/25		United States		416,000			389,916

							2,173,216

Diversified Financial Services 1.0%
AerCap Ireland Capital DAC / AerCap Global Aviation Trust,senior note, 3.00%, 10/29/28		Ireland		155,000			132,129
American Express Co., senior note, 4.90%, 2/13/26		United States		235,000			233,239
^fAntares Holdings LP, senior note, 144A,
2.75%, 1/15/27		Canada		250,000			206,970
3.75%, 7/15/27		Canada		250,000			211,001
^fAviation Capital Group LLC, senior note, 144A, 1.95%, 1/30/26		United States		25,000			22,097
^fCDBL Funding 1, E, senior note, Reg S, 3.00%, 4/24/23		China		500,000			498,152
^fChina Cinda 2020 I Management Ltd., E, senior note, Reg S, 2.00%, 3/18/23		China		600,000			598,956
^fFinanciera de Desarrollo Territorial SA Findeter, senior bond, 144A, 7.875%, 8/12/24		Colombia		393,000,000	COP		73,749
OneMain Finance Corp., senior note, 3.50%, 1/15/27		United States		175,000			147,158
^fRec Ltd., senior note, Reg S,
4.75%, 5/19/23		India		3,229,000			3,219,797
5.25%, 11/13/23		India		1,870,000			1,859,930
G, 3.375%, 7/25/24		India		300,000			289,152
^fRocket Mortgage LLC / Rocket Mortgage Co.-Issuer Inc., 144A,
senior bond, 3.875%, 3/01/31		United States		5,000			3,901
senior bond, 4.00%, 10/15/33		United States		1,015,000			751,300
senior note, 2.875%, 10/15/26		United States		935,000			807,789
senior note, 3.625%, 3/01/29		United States		40,000			32,196

							9,087,516

Diversified Telecommunication Services 0.2%
^fIHS Holding Ltd., senior note, 144A, 5.625%, 11/29/26		Nigeria		255,000			218,535
^fKenbourne Invest SA, senior note, 144A, 6.875%, 11/26/24		Chile		200,000			180,970
^f,iLigado Networks LLC, senior secured note, 144A, PIK, 15.50%, 11/01/23		United States		1,052,000			302,450
^fLorca Telecom Bondco SA, senior secured note, Reg S, 4.00%, 9/18/27		Spain		200,000	EUR		191,200
^fVMED O2 UK Financing I PLC, Reg S,
senior secured bond, 4.50%, 7/15/31		United Kingdom		465,000	GBP		440,469
senior secured note, 4.00%, 1/31/29		United Kingdom		210,000	GBP		206,863
^fVodafone Group PLC, junior sub. bond, Reg S, 3.00% to 5/27/30, FRN thereafter, 8/27/80		United Kingdom		100,000	EUR		85,018

							1,625,505

Electric Utilities 0.3%
^d,eBruce Mansfield Escrow, senior bond, zero cpn., 6/01/34		United States		6,394,000			23,977
^hEdison International, A, junior sub. note, 5.375% to 3/15/26, FRN thereafter, Perpetual		United States		50,000			45,642
^fEP Infrastructure AS, Reg S,
senior bond, 1.816%, 3/02/31		Czech Republic		100,000	EUR		69,283
senior note, 1.659%, 4/26/24		Czech Republic		147,000	EUR		144,155
senior note, 1.698%, 7/30/26		Czech Republic		514,000	EUR		447,838
Nextera Energy Capital Holdings Inc., senior note, 6.051%, 3/01/25		United States		205,000			206,358

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*			Value



Corporate Bonds and Notes (continued)
Electric Utilities (continued)
Pacific Gas and Electric Co.,
^dsecured bond, 4.95%, 7/01/50		United States		1,680,321		$	1,329,674
secured bond, 3.50%, 8/01/50		United States		328,000			206,466
senior bond, 4.30%, 3/15/45		United States		70,000			50,588

							2,523,981

Energy Equipment & Services 0.3%
^fShelf Drilling Holdings Ltd., senior note, 144A, 8.25%, 2/15/25		United Arab Emirates		1,040,000			973,700
^fTransocean Inc., 144A,
^dsenior note, 7.25%, 11/01/25		United States		1,656,000			1,566,460
senior note, 8.00%, 2/01/27		United States		277,000			245,493
senior secured note, 8.75%, 2/15/30		United States		76,000			77,421

							2,863,074

Entertainment 0.0%^†
Netflix Inc., senior bond,
4.875%, 4/15/28		United States		15,000			14,556
5.875%, 11/15/28		United States		290,000			294,350
6.375%, 5/15/29		United States		60,000			62,407
^f144A, 5.375%, 11/15/29		United States		30,000			29,557
^c,f144A, 4.875%, 6/15/30		United States		55,000			52,849

							453,719

Equity Real Estate Investment Trusts (REITs) 0.2%
National Health Investors Inc., senior bond, 3.00%, 2/01/31		United States		30,000			22,529
SBA Communications Corp., senior note, 3.875%, 2/15/27		United States		10,000			9,059
^fUniti Group LP / Uniti Group Finance Inc. / CSL Capital LLC,
senior secured note, 144A, 10.50%, 2/15/28		United States		791,000			791,890
^fVici Properties LP / Vici Note Co. Inc., 144A,
senior bond, 4.125%, 8/15/30		United States		593,000			512,757
senior note, 4.625%, 6/15/25		United States		100,000			96,058
senior note, 4.50%, 9/01/26		United States		570,000			532,338

							1,964,631

Food & Staples Retailing 0.1%
^fJBS USA Lux SA / JBS USA Food Co. / JBS USA Finance Inc., senior note, 144A, 3.00%, 2/02/29		United States		35,000			29,143
^fMarket Bidco Finco PLC, senior note, 144A, 5.50%, 11/04/27		United Kingdom		1,000,000			932,149

							961,292

Food Products 0.0%^†
^fPost Holdings Inc., senior bond, 144A, 5.75%, 3/01/27		United States		65,000			63,363

Gas Utilities 0.0%^†
^fEustream AS, senior note, Reg S, 1.625%, 6/25/27		Slovak Republic		356,000	EUR		272,194

Health Care Providers & Services 0.0%^†
Centene Corp., senior note, 2.45%, 7/15/28		United States		15,000			12,609
Elevance Health Inc., senior note, 4.90%, 2/08/26		United States		405,000			400,203
^fMolina Healthcare Inc., senior note, 144A, 4.375%, 6/15/28		United States		35,000			31,822

							444,634

Health Care Technology 0.1%
^fCloud Software Group Holdings Inc., senior secured note, 144A, 6.50%, 3/31/29		United States		780,000			676,467
^fOpen Text Corp., senior secured note, 144A, 6.90%, 12/01/27		Canada		90,000			90,981

							767,448

Hotels, Restaurants & Leisure 0.7%
^f1011778 BC ULC / New Red Finance Inc., secured note, 144A, 4.375%, 1/15/28		Canada		100,000			89,497
^fCaesars Entertainment Inc., senior secured note, 144A, 6.25%, 7/01/25		United States		302,000			299,810

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*		Value

Corporate Bonds and Notes (continued)
Hotels, Restaurants & Leisure (continued)
^fCarnival Corp., 144A,
^csenior note, 7.625%, 3/01/26		United States		140,000	$	125,841
senior note, 5.75%, 3/01/27		United States		95,000		78,263
senior note, 6.00%, 5/01/29		United States		847,000		660,660
senior secured note, 9.875%, 8/01/27		United States		369,000		376,040
senior secured note, 4.00%, 8/01/28		United States		326,000		275,930
^d,fCarnival Holdings Bermuda Ltd., senior note, 144A, 10.375%, 5/01/28		United States		1,270,000		1,360,043
^fGENM Capital Labuan Ltd., senior bond, 144A, 3.882%, 4/19/31		Malaysia		240,000		186,667
^fHilton Grand Vacations Borrower Escrow LLC, 144A,
senior bond, 4.875%, 7/01/31		United States		20,000		16,832
senior note, 5.00%, 6/01/29		United States		150,000		131,781
^fMarriott Ownership Resorts Inc., senior note, 144A, 4.50%, 6/15/29		United States		35,000		29,404
^fRoyal Caribbean Cruises Ltd., 144A,
senior note, 4.25%, 7/01/26		United States		290,000		253,287
senior note, 5.50%, 4/01/28		United States		125,000		109,062
senior note, 9.25%, 1/15/29		United States		379,000		402,358
senior note, 7.25%, 1/15/30		United States		285,000		286,036
senior secured note, 8.25%, 1/15/29		United States		594,000		615,575
^fScientific Games International Inc., senior note, 144A, 7.00%, 5/15/28		United States		245,000		239,678
Travel + Leisure Co.,
senior secured bond, 6.00%, 4/01/27		United States		10,000		9,626
^fsenior secured bond, 144A, 4.625%, 3/01/30		United States		45,000		37,886
^fsenior secured note, 144A, 6.625%, 7/31/26		United States		270,000		264,943
^fWarnermedia Holdings Inc., 144A,
senior bond, 4.279%, 3/15/32		United States		285,000		246,197
senior note, 4.054%, 3/15/29		United States		135,000		120,806

						6,216,222

Household Durables 0.2%
^fK. Hovnanian Enterprises Inc., senior secured note, 144A,
^d7.75%, 2/15/26		United States		1,164,000		1,134,469
10.50%, 2/15/26		United States		850,000		860,311

						1,994,780

Industrial Conglomerates 0.1%
Icahn Enterprises LP / Icahn Enterprises Finance Corp., senior note,
4.75%, 9/15/24		United States		120,000		117,124
6.375%, 12/15/25		United States		255,000		251,963
6.25%, 5/15/26		United States		105,000		101,976
5.25%, 5/15/27		United States		130,000		120,407

						591,470

Insurance 0.1%
^fGlobal Atlantic Finance Co., senior bond, 144A, 4.40%, 10/15/29		United States		165,000		142,394
^fQBE Insurance Group Ltd., sub. bond, Reg S, 7.50% to 11/24/23, FRN thereafter, 11/24/43		Australia		250,000		251,014
^f,hTongyang Life Insurance Co. Ltd., sub. note, Reg S, 5.25% to 9/22/25, FRN thereafter, Perpetual		South Korea		400,000		351,000

						744,408

Interactive Media & Services 0.1%
^fTencent Holdings Ltd., senior bond, Reg S,
3.84%, 4/22/51		China		250,000		180,303

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*			Value

Corporate Bonds and Notes (continued)
Interactive Media & Services (continued)
^fTencent Holdings Ltd., senior bond, Reg S, (continued)
3.94%, 4/22/61		China		500,000		$	351,287

							531,590

Internet & Direct Marketing Retail 0.2%
Expedia Group Inc., senior note,
3.25%, 2/15/30		United States		30,000			25,321
2.95%, 3/15/31		United States		40,000			32,160
^fProsus NV, Reg S,
senior bond, 1.985%, 7/13/33		China		300,000	EUR		220,499
senior bond, 2.778%, 1/19/34		China		821,000	EUR		638,392
senior bond, 3.832%, 2/08/51		China		110,000			66,762
senior bond, 4.987%, 1/19/52		China		100,000			72,267
senior note, 1.288%, 7/13/29		China		204,000	EUR		165,390
^fRakuten Group Inc., senior note, 144A, 10.25%, 11/30/24		Japan		339,000			340,288

							1,561,079

IT Services 0.1%
^fHurricane Finance PLC, senior secured note, Reg S, 8.00%, 10/15/25		United Kingdom		358,000	GBP		398,802
Leidos Inc., senior bond, 5.75%, 3/15/33		United States		165,000			163,044

							561,846

Leisure Products 0.0%^†
^fLife Time Inc., senior secured note, 144A, 5.75%, 1/15/26		United States		92,000			88,231
^fNCL Corp. Ltd., 144A,
senior note, 5.875%, 3/15/26		United States		240,000			207,883
senior secured note, 5.875%, 2/15/27		United States		185,000			171,765

							467,879

Life Sciences Tools & Services 0.0%^†
^gTrimble Inc., senior bond, 6.10%, 3/15/33		United States		190,000			189,470

Machinery 0.1%
^fChart Industries Inc., senior secured note, 144A, 7.50%, 1/01/30		United States		346,000			351,622
John Deere Capital Corp., senior note, 4.80%, 1/09/26		United States		395,000			393,513

							745,135

Media 1.2%
^fAdvantage Sales & Marketing Inc., senior secured note, 144A, 6.50%, 11/15/28		United States		1,311,000			1,003,099
^fCCO Holdings LLC / CCO Holdings Capital Corp., 144A,
senior bond, 5.50%, 5/01/26		United States		40,000			38,642
senior bond, 5.125%, 5/01/27		United States		1,582,000			1,465,415
senior note, 7.375%, 3/01/31		United States		588,000			570,789
Charter Communications Operating LLC / Charter
Communications Operating Capital, senior secured bond,
2.30%, 2/01/32		United States		15,000			11,047
^c4.40%, 4/01/33		United States		340,000			291,022
4.40%, 12/01/61		United States		235,000			153,290
^d3.95%, 6/30/62		United States		2,218,000			1,331,726
CSC Holdings LLC,
senior bond, 5.25%, 6/01/24		United States		186,000			180,390
^fsenior bond, 144A, 5.50%, 4/15/27		United States		534,000			465,085
^fsenior bond, 144A, 6.50%, 2/01/29		United States		545,000			462,582
^fsenior bond, 144A, 4.625%, 12/01/30		United States		1,700,000			916,938
^fsenior bond, 144A, 3.375%, 2/15/31		United States		400,000			274,680
^fsenior note, 144A, 7.50%, 4/01/28		United States		111,000			74,439
^fDIRECTV Holdings LLC / DIRECTV Financing Co. Inc., senior secured note, 144A, 5.875%, 8/15/27		United States		95,000			85,042
DISH DBS Corp.,
senior note, 5.00%, 3/15/23		United States		498,000			497,203

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*			Value

Corporate Bonds and Notes (continued)
Media (continued)
DISH DBS Corp., (continued)
senior note, 5.875%, 11/15/24		United States		570,000		$	534,569
senior note, 5.125%, 6/01/29		United States		270,000			159,806
^fsenior secured note, 144A, 5.25%, 12/01/26		United States		1,330,000			1,116,369
^fsenior secured note, 144A, 5.75%, 12/01/28		United States		381,000			305,057
iHeartCommunications Inc., senior secured note, 6.375%, 5/01/26		United States		85,000			80,218
^f144A, 5.25%, 8/15/27		United States		90,000			78,413
^f144A, 4.75%, 1/15/28		United States		947,000			797,209
^fSinclair Television Group Inc., senior secured note, 144A, 4.125%, 12/01/30		United States		75,000			58,433
^fVirgin Media Secured Finance PLC, senior secured bond, Reg S, 4.25%, 1/15/30		United Kingdom		301,000	GBP		289,726
^fWESCO Aircraft Holdings Inc., senior secured note, 144A, 8.50%, 11/15/24		United States		644,000			293,020

							11,534,209

Metals & Mining 0.4%
^fAbja Investment Co. Pte. Ltd., senior note, Reg S, 4.45%, 7/24/23		India		900,000			893,550
BHP Billiton Finance USA Ltd., senior note, 4.875%, 2/27/26		Australia		805,000			800,039
^fFirst Quantum Minerals Ltd., senior note, 144A,
6.875%, 3/01/26		Zambia		465,000			444,075
6.875%, 10/15/27		Zambia		375,000			352,163
^fFMG Resources August 2006 Pty Ltd., senior note, 144A, 4.50%, 9/15/27		Australia		130,000			119,740
Freeport-McMoRan Inc.,
^csenior bond, 4.625%, 8/01/30		United States		15,000			13,860
senior note, 4.25%, 3/01/30		United States		95,000			86,141
^fGlencore Funding LLC, senior bond, 144A, 2.85%, 4/27/31		Australia		335,000			274,294
^fVedanta Resources Finance II PLC, senior note, Reg S,
8.00%, 4/23/23		India		400,000			371,095
13.875%, 1/21/24		India		400,000			329,540
^fVedanta Resources Ltd., senior note, Reg S, 7.125%, 5/31/23		India		200,000			183,746
^fVolcan Cia Minera SAA, senior note, 144A, 4.375%, 2/11/26		Peru		30,000			23,923

							3,892,166

Mortgage Real Estate Investment Trusts (REITs) 0.1%
Service Properties Trust, senior note,
7.50%, 9/15/25		United States		650,000			644,930
5.50%, 12/15/27		United States		186,000			167,807

							812,737

Multiline Retail 0.0%^†
Kohl’s Corp., senior bond, 5.55%, 7/17/45		United States		424,000			274,008

Oil, Gas & Consumable Fuels 2.0%
^fAker BP ASA, senior bond, 144A, 3.75%, 1/15/30		Norway		265,000			234,138
^fBaytex Energy Corp., senior note, 144A, 8.75%, 4/01/27		Canada		115,000			117,136
^fCallon Petroleum Co., senior note, 144A, 8.00%, 8/01/28		United States		80,000			78,526
^fChord Energy Corp., senior note, 144A, 6.375%, 6/01/26		United States		80,000			77,240
^fContinental Resources Inc., senior bond, 144A,
5.75%, 1/15/31		United States		405,000			383,708
2.875%, 4/01/32		United States		265,000			200,532
^fEnergean Israel Finance Ltd., senior secured note, 144A, Reg S, 5.375%, 3/30/28		Israel		170,000			153,212
Energy Transfer LP, senior bond,
6.125%, 12/15/45		United States		187,000			175,344
5.00%, 5/15/50		United States		352,000			288,999

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*		Value

Corporate Bonds and Notes (continued)
Oil, Gas & Consumable Fuels (continued)
Equities Corp.,
^csenior bond, 7.00%, 2/01/30		United States		390,000	$	403,071
senior note, 3.90%, 10/01/27		United States		50,000		45,773
senior note, 5.00%, 1/15/29		United States		35,000		32,781
^c,fsenior note, 144A, 3.625%, 5/15/31		United States		135,000		113,442
^fGreensaif Pipelines Bidco SARL, senior secured bond, 144A, 6.51%, 2/23/42		Saudi Arabia		1,180,000		1,204,485
^fHess Midstream Operations LP, senior note, 144A, 5.625%, 2/15/26		United States		25,000		24,362
^fIndian Oil Corp. Ltd., senior bond, Reg S, 5.75%, 8/01/23		India		800,000		799,457
^fLeviathan Bond Ltd., senior note, 144A, Reg S, 6.50%, 6/30/27		Israel		205,000		196,185
^fMoss Creek Resources Holdings Inc., senior note, 144A,
7.50%, 1/15/26		United States		372,000		334,774
10.50%, 5/15/27		United States		843,000		793,335
^fNorthern Oil And Gas Inc., senior note, 144A, 8.125%, 3/01/28		United States		425,000		410,507
Occidental Petroleum Corp.,
senior bond, 8.875%, 7/15/30		United States		15,000		17,056
senior bond, 6.125%, 1/01/31		United States		10,000		10,085
senior bond, 7.875%, 9/15/31		United States		15,000		16,309
senior note, 5.55%, 3/15/26		United States		120,000		119,487
^fOngc Videsh Ltd., senior bond, Reg S, 3.75%, 5/07/23		India		3,863,000		3,847,826
Ovintiv Inc., senior bond,
8.125%, 9/15/30		United States		25,000		27,408
7.20%, 11/01/31		United States		5,000		5,265
7.375%, 11/01/31		United States		5,000		5,345
6.50%, 8/15/34		United States		80,000		80,212
6.50%, 2/01/38		United States		10,000		9,821
PDC Energy Inc., senior note, 5.75%, 5/15/26		United States		165,000		157,800
^fPertamina Persero PT, senior note, Reg S, 4.30%, 5/20/23		Indonesia		1,400,000		1,396,500
SM Energy Co., senior bond, 6.75%, 9/15/26		United States		120,000		115,912
Southwestern Energy Co., senior bond, 4.75%, 2/01/32		United States		15,000		12,906
^dTalos Production Inc., secured note, 12.00%, 1/15/26		United States		2,194,000		2,317,818
^fTap Rock Resources LLC, senior note, 144A, 7.00%, 10/01/26		United States		85,000		77,855
Targa Resources Corp., senior bond,
6.125%, 3/15/33		United States		55,000		55,294
6.50%, 2/15/53		United States		398,000		391,862
^fTms Issuer Sarl, senior secured note, 144A, 5.78%, 8/23/32		Saudi Arabia		960,000		977,837
^fVar Energi ASA, senior note, 144A, 7.50%, 1/15/28		Norway		200,000		206,653
Vital Energy Inc., senior note,
9.50%, 1/15/25		United States		376,000		379,397
10.125%, 1/15/28		United States		33,000		32,467
Western Midstream Operating LP, senior note, 3.35%, 2/01/25		United States		85,000		80,653
^fYPF Sociedad Anonima, Reg S,
senior bond, 8.50%, 7/28/25		Argentina		536,000		484,544
senior note, 8.75%, 4/04/24		Argentina		1,418,900		1,384,652
senior note, 8.50%, 3/23/25		Argentina		995,000		945,230

						19,223,201

Pharmaceuticals 0.4%
fBausch Health Cos. Inc., 144A,
senior note, 7.00%, 1/15/28		United States		70,000		31,453
senior note, 5.00%, 1/30/28		United States		15,000		6,484
senior secured note, 5.50%, 11/01/25		United States		912,000		794,215
senior secured note, 4.875%, 6/01/28		United States		360,000		225,000
CVS Health Corp., senior note, 5.00%, 2/20/26		United States		405,000		402,911
ELI Lilly & Co., senior note, 5.00%, 2/27/26		United States		805,000		802,980
Teva Pharmaceutical Finance Co. LLC, senior bond, 6.15%, 2/01/36		Israel		10,000		9,039

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*			Value

Corporate Bonds and Notes (continued)
Pharmaceuticals (continued)
Teva Pharmaceutical Finance Netherlands II BV, senior note, 6.00%, 1/31/25		Israel		335,000	EUR	$	360,752
Teva Pharmaceutical Finance Netherlands III BV,
senior bond, 3.15%, 10/01/26		Israel		1,235,000			1,080,403
senior bond, 4.10%, 10/01/46		Israel		100,000			65,149
senior note, 2.80%, 7/21/23		Israel		325,000			321,652

							4,100,038

Real Estate Management & Development 0.3%
^fAgile Group Holdings Ltd., Reg S,
^hsenior note, 7.875% to 7/31/24, FRN thereafter, Perpetual		China		200,000			70,625
senior secured note, 6.05%, 10/13/25		China		200,000			111,981
^fCanary Wharf Group Investment Holdings PLC, senior secured note, Reg S, 2.625%, 4/23/25		United Kingdom		100,000	GBP		104,014
^fCentral China Real Estate Ltd., senior secured note, Reg S, 7.25%, 8/13/24		China		200,000			64,001
^fCFLD Cayman Investment Ltd., Reg S,
6.90%, 1/13/23		China		200,000			25,000
senior note, 8.60%, 4/08/24		China		200,000			24,508
^fChina Aoyuan Group Ltd., senior secured note, Reg S, 5.98%, 8/18/25		China		200,000			19,899
^fChina Evergrande Group, senior note, Reg S, 8.75%, 6/28/25		China		200,000			18,063
^fChina South City Holdings Ltd., senior secured note, Reg S, 9.00%, 7/20/24		China		190,000			165,447
^fCountry Garden Holdings Co. Ltd., senior secured bond, Reg S,
5.625%, 12/15/26		China		200,000			131,545
3.30%, 1/12/31		China		1,412,000			758,360
ⁱEasy Tactic Ltd., senior secured note, PIK, 7.50%, 7/11/27		China		213,775			58,290
^fLogan Group Co. Ltd., senior note, Reg S, 5.25%, 10/19/25		China		200,000			58,006
^fNew Metro Global Ltd., senior note, Reg S, 4.625%, 10/15/25		China		200,000			153,500
^f,hNWD Finance BVI Ltd., senior note, Reg S, 6.15% to 3/16/25, FRN thereafter, Perpetual		Hong Kong		200,000			190,000
^fPerfect Point Ventures Ltd., senior note, Reg S, 5.20%, 9/20/25		Hong Kong		400,000			345,032
^fSino-Ocean Land Treasure II Ltd., senior bond, Reg S, 5.95%, 2/04/27		China		200,000			143,505
^f,hSino-Ocean Land Treasure III Ltd., senior note, Reg S, 6.876% to 9/21/27, FRN thereafter, Perpetual		China		330,000			171,567
^fTimes China Holdings Ltd., senior secured note, Reg S, 5.55%, 6/04/24		China		200,000			33,043

							2,646,386

Road & Rail 0.2%
^fUber Technologies Inc., senior note, 144A,
8.00%, 11/01/26		United States		990,000			1,006,030
7.50%, 9/15/27		United States		400,000			406,032
6.25%, 1/15/28		United States		40,000			39,414
4.50%, 8/15/29		United States		180,000			159,472

							1,610,948

Semiconductors & Semiconductor Equipment 0.1%
Broadcom Inc., senior bond,
4.15%, 11/15/30		United States		210,000			189,227
^f144A, 3.137%, 11/15/35		United States		250,000			184,456
Micron Technology Inc., senior note, 6.75%, 11/01/29		United States		385,000			398,132
^fSK Hynix Inc., senior bond, 144A, 6.50%, 1/17/33		South Korea		200,000			196,984

							968,799

Software 0.0%^†
Oracle Corp., senior bond,
3.95%, 3/25/51		United States		125,000			89,886

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*			Value

Corporate Bonds and Notes (continued)
Software (continued)
Oracle Corp., senior bond, (continued)
3.85%, 4/01/60		United States		286,000		$	190,967

							280,853

Specialty Retail 0.8%
^fCarvana Co., senior note, 144A,
^d5.625%, 10/01/25		United States		2,546,000			1,556,752
5.50%, 4/15/27		United States		277,000			141,567
5.875%, 10/01/28		United States		507,000			244,335
4.875%, 9/01/29		United States		640,000			303,545
^d10.25%, 5/01/30		United States		2,168,000			1,357,439
^fChina Grand Automotive Services Ltd., E, senior note, Reg S, 9.125%, 1/30/24		China		333,000			282,963
^fDouglas GMBH, senior secured note, Reg S, 6.00%, 4/08/26		Germany		2,093,000	EUR		1,953,085
^fGuitar Center Inc., senior secured note, 144A, 8.50%, 1/15/26		United States		650,000			566,722
^fMitchells & Butlers Finance PLC, B2, secured bond, Reg S, 6.013%, 12/15/28		United Kingdom		115,952	GBP		130,902
QVC Inc., senior secured note, 4.85%, 4/01/24		United States		366,000			344,040
Starbucks Corp., senior note, 4.75%, 2/15/26		United States		405,000			401,263

							7,282,613

Technology Hardware, Storage & Peripherals 0.1%
CDW LLC / CDW Finance Corp., senior note,
4.25%, 4/01/28		United States		40,000			36,488
3.25%, 2/15/29		United States		230,000			194,006
^fPitney Bowes Inc., senior note, 144A, 6.875%, 3/15/27		United States		766,000			640,709
Western Digital Corp., senior note,
4.75%, 2/15/26		United States		75,000			70,882
2.85%, 2/01/29		United States		150,000			118,049

							1,060,134

Telecommunications 0.1%
^fLevel 3 Financing Inc., senior secured note, 144A, 3.40%, 3/01/27		United States		1,352,000			1,135,999

Textiles, Apparel & Luxury Goods 0.0%^†
^fHanesbrands Inc., senior note, 144A, 4.625%, 5/15/24		United States		427,000			426,968

Thrifts & Mortgage Finance 0.1%
^fIIFL Finance Ltd., E, senior secured note, Reg S, 5.875%, 4/20/23		India		1,300,000			1,287,000
^fNationstar Mortgage Holdings Inc., senior bond, 144A, 5.75%, 11/15/31		United States		60,000			47,130

							1,334,130

Tobacco 0.2%
^d^,^fVector Group Ltd., senior note, 144A, 10.50%, 11/01/26		United States		1,566,000			1,572,029

Trading Companies & Distributors 0.0%^†
^f,hAircastle Ltd., junior sub. note, 144A, 5.25% to 6/15/26, FRN thereafter, Perpetual		United States		25,000			20,376

Transportation Infrastructure 0.1%
^fRand Parent LLC, senior secured note, 144A, 8.50%, 2/15/30		United States		200,000			192,875
Union Pacific Corp., senior note, 4.75%, 2/21/26		United States		720,000			717,025

							909,900

Wireless Telecommunication Services 0.0%^†
^fSoftbank Group Corp., senior bond, Reg S, 5.25%, 7/06/31		Japan		200,000			172,250

Total Corporate Bonds and Notes (Cost $130,475,551)							125,410,291

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*		Value

Corporate Bonds and Notes in Reorganization 0.6%
Electric Utilities 0.5%
^f,jTalen Energy Supply LLC, 144A,
^dsenior note, 7.25%, 5/15/27		United States		3,359,000	$	3,453,016
senior note, 6.625%, 1/15/28		United States		596,000		605,476
senior secured note, 7.625%, 6/01/28		United States		436,000		450,998

						4,509,490

Metals & Mining 0.0%^†
^f,jSamarco Mineracao SA, senior bond, Reg S,
4.125%, 11/01/22		Brazil		925,000		345,890
5.75%, 10/24/23		Brazil		184,000		70,840

						416,730

Pharmaceuticals 0.0%^†
^d,f,jPar Pharmaceutical Inc., senior note, 144A, 7.50%, 4/01/27		United States		41,000		30,904

Real Estate Management & Development 0.1%
^f,jKaisa Group Holdings Ltd., senior secured note, Reg S,
8.50%, 6/30/22		China		692,000		115,324
11.95%, 11/12/23		China		200,000		33,238
9.375%, 6/30/24		China		205,000		34,213
11.25%, 4/16/25		China		994,000		165,852
11.70%, 11/11/25		China		200,000		33,408
11.65%, 6/01/26		China		200,000		33,358
^f,jRonshine China Holdings Ltd., senior secured note, Reg S, 8.10%, 6/09/23		China		200,000		19,650
^f,jShimao Group Holdings Ltd., Reg S,
senior bond, 4.60%, 7/13/30		China		200,000		34,926
senior secured note, 4.75%, 7/03/22		China		200,000		36,544
senior secured note, 6.125%, 2/21/24		China		200,000		35,411
^f,jSunac China Holdings Ltd., Reg S,senior note, 6.80%, 10/20/24		China		300,000		80,999
senior secured note, 8.35%, 4/19/23		China		200,000		53,535
senior secured note, 6.65%, 8/03/24		China		200,000		53,409
senior secured note, 6.50%, 1/26/26		China		200,000		53,386
^f,jYuzhou Group Holdings Co. Ltd., senior secured note, Reg S,
8.375%, 10/30/24		China		200,000		26,756
7.70%, 2/20/25		China		200,000		27,347
7.85%, 8/12/26		China		205,000		28,452
6.35%, 1/13/27		China		400,000		55,208
^jZhenro Properties Group Ltd., senior note,
8.00%, 3/06/23		China		981,000		82,415
^fReg S, 6.63%, 1/07/26		China		403,000		35,053

						1,038,484


Total Corporate Bonds and Notes in Reorganization (Cost $8,568,811)						5,995,608


^kSenior Floating Rate Interests 0.3%
Communications Equipment 0.0%^†
iRiverbed Technology Inc., Exit Term Loan, PIK, 7.00% (cash), (1-Month USD LIBOR + 6.00%) 12/08/26		United States		138,130		50,331

Construction Materials 0.0%^†
^lOldcastle BuildingEnvelope Inc., Term Loan RC, 7.303%, (1- Month SOFR + 3.75%), 4/29/27		United States		40,014		35,012

Consumer Discretionary Services 0.1%
Travel Leaders Group LLC, Term Loan B, 8.635%, (1-Month USD LIBOR + 4.00%), 1/25/24		United States		475,954		442,458

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*			Value

^kSenior Floating Rate Interests (continued)
Diversified Financial Services 0.0%^†
^lZF Invest, Term Loan B, 6.209%, (3-Month EURIBOR + 3.93%), 7/12/28		United States		90,602		$	86,666
Ziggo BV, Term Loan H, 6.102%, (3-Month EURIBOR + 3.00%), 1/31/29		United States		115,000			116,928

							203,594

Entertainment 0.0%^†
Playtika Holding Corp., Term Loan B, 7.385%, (1-Month USD LIBOR + 2.75%), 3/13/28		United States		150,815			149,531

Equity Real Estate Investment Trusts (REITs) 0.0%^†
McCarthy & Stone PLC, Term Loan B, 7.00%, (1-Month USD LIBOR + 7.00%), 12/16/25		United Kingdom		170,938	GBP		177,855

Food & Staples Retailing 0.1%
^lAreas, Term Loan B1, 7.186%, (3-Month EURIBOR + 4.75%), 7/01/26		France		133,146			128,682
^lUpfield Group BV, Term Loan RC, 5.429%, (3-Month EURIBOR + 3.00%), 1/02/25		Netherlands		409,364			385,356

							514,038

Health Services 0.1%
OpenText Corp., Initial Term Loan, 8.135%, (1-Month SOFR + 3.60%), 8/27/29		United States		489,583			489,546

Hotels, Restaurants & Leisure 0.0%^†
Caesars Entertainment, Initial Term Loan, 7.968%, (1-Month SOFR + 2.71%), 1/23/30		United States		44,000			43,997

Insurance 0.0%^†
AmWINS, Initial Term Loan, 7.413%, (1-Month SOFR + 2.16%), 2/19/28		United States		45,000			44,874

Media 0.0%^†
Advantage Sales & Marketing Inc., Term Loan B1, 8.884%, (3- Month USD LIBOR + 4.50%), 10/28/27		United States		115,510			95,544
Cablevision SA, Term Loan B, 6.838%, (1-Month USD LIBOR + 2.25%), 7/17/25		United States		203,581			197,076
CSC Holdings LLC, Term Loan B, 9.063%, (1-Month USD LIBOR + 2.25%), 4/15/27		United States		35,172			33,017

							325,637

Oil, Gas & Consumable Fuels 0.0%^†
^lEuro Garage Ltd., Term Loan B1, 6.752%, (3-Month EURIBOR + 4.00%), 2/07/25		United States		188,042			179,636

Pharmaceuticals 0.0%^†
^lBausch Health Cos. Inc., Term Loan B, 9.914%, (1-Month SOFR + 5.25%), 2/01/27		United States		252,721			200,224

Software 0.0%^†
Citrix Systems Inc., Term Loan B, 9.18%, (1-Month SOFR + 4.50%), 3/30/29		United States		321,542			299,135

Specialty Retail 0.0%^†
Peloton Interactive Inc., Initial Term Loan, 11.757%, (1-Month SOFR + 6.50%), 5/25/27		United States		44,649			44,962

Textiles, Apparel & Luxury Goods 0.0%^†
^lVarsity Brands, Initial Term Loan, 8.135%, (1-Month USD LIBOR + 3.50%), 12/16/24		United States		33,892			32,865


Total Senior Floating Rate Interests (Cost $3,497,301)							3,233,695

Foreign Government and Agency Securities 6.2%
^fGovernment of Angola, senior bond, Reg S, 9.375%, 5/08/48		Angola		2,568,000			2,194,870

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*				Value

Foreign Government and Agency Securities (continued)
Government of Argentina, senior bond,
3.875%, 1/09/38		Argentina		6,234,557			$	2,196,392
3.50%, 7/09/41		Argentina		3,375,585				1,068,445
Government of Colombia, senior bond,
2.25%, 4/18/29		Colombia		6,134,397,036		COP		1,067,568
B, 7.00%, 6/30/32		Colombia		17,134,900,000		COP		2,400,454
7.50%, 2/02/34		Colombia		1,030,000				977,983
B, 7.25%, 10/26/50		Colombia		9,302,400,000		COP		1,053,186
^fGovernment of Dominican Republic,
senior bond, Reg S, 4.875%, 9/23/32		Dominican Republic		1,006,000				844,876
senior bond, 144A, 13.625%, 2/03/33		Dominican Republic		16,450,000		DOP		336,315
senior note, 144A, 7.05%, 2/03/31		Dominican Republic		1,299,000				1,300,052
^fGovernment of Egypt,
senior bond, Reg S, 7.903%, 2/21/48		Egypt		1,022,000				620,015
senior bond, Reg S, 8.875%, 5/29/50		Egypt		1,064,000				688,449
senior bond, Reg S, 7.50%, 2/16/61		Egypt		2,025,000				1,189,961
senior note, 144A, 10.875%, 2/28/26		Egypt		760,000				750,454
^fGovernment of El Salvador, senior bond, Reg S, 8.25%, 4/10/32		El Salvador		2,828,000				1,435,210
^fGovernment of Germany, senior bond, Reg S,
1.70%, 8/15/32		Germany		547,200		EUR		535,904
zero cpn., 2/15/32		Germany		388,800		EUR		327,163
^fGovernment of Ghana, senior bond, Reg S, 10.75%, 10/14/30		Ghana		3,093,000				2,199,649
^fGovernment of Hungary, senior bond,
144A, 6.75%, 9/25/52		Hungary		940,000				966,139
Reg S, 3.125%, 9/21/51		Hungary		1,016,000				621,624
Government of Italy, senior note, 2.375%, 10/17/24		Italy		350,000				331,061
Government of Mexico, senior bond,
M, 7.75%, 5/29/31		Mexico		48,290,000	^m	MXN		2,416,704
M, 7.75%, 11/13/42		Mexico		30,080,000	^m	MXN		1,410,479
^fGovernment of Nigeria, senior bond, Reg S,
7.875%, 2/16/32		Nigeria		785,000				606,059
7.625%, 11/28/47		Nigeria		2,590,000				1,743,135
^fGovernment of Pakistan, senior bond, Reg S, 8.875%, 4/08/51		Pakistan		1,320,000				547,784
^fGovernment of Peru, senior note, Reg S, 8.20%, 8/12/26		Peru		4,332,000		PEN		1,184,984
Government of Romania, senior bond,
^f144A, 7.625%, 1/17/53		Romania		2,406,000				2,605,638
4.25%, 4/28/36		Romania		9,870,000		RON		1,495,938
^fGovernment of Serbia, 144A,
senior bond, 6.50%, 9/26/33		Serbia		1,200,000				1,169,777
senior note, 6.25%, 5/26/28		Serbia		630,000				630,072
Government of South Africa, senior bond,
8.25%, 3/31/32		South Africa		95,537,419		ZAR		4,483,990
8.50%, 1/31/37		South Africa		70,666,496		ZAR		3,074,849
^fGovernment of Tunisian Republic, senior note, Reg S,
6.75%, 10/31/23		Tunisia		669,000		EUR		627,282
5.625%, 2/17/24		Tunisia		1,806,000		EUR		1,521,193
Government of Turkey,
senior bond, 4.875%, 4/16/43		Turkey		2,533,000				1,616,257
senior bond, 5.75%, 5/11/47		Turkey		1,931,000				1,300,179
senior note, 9.875%, 1/15/28		Turkey		2,049,000				2,083,464
^fGovernment of Ukraine, Reg S,
senior bond, 7.75%, 9/01/26		Ukraine		1,198,000				228,602

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*			Value

Foreign Government and Agency Securities (continued)
^fGovernment of Ukraine, Reg S, (continued)
senior bond, zero cpn., 8/01/41		Ukraine		11,807,000		$	3,287,777
senior note, 8.994%, 2/01/26		Ukraine		200,000			38,650
^fProvincia de Buenos Aires, Reg S,
ⁿ144A, FRN, 73.394%, (ARS BADLAR + 3.75%), 4/12/25		Argentina		3,670,000	ARS		9,057
senior bond, 5.25%, 9/01/37		Argentina		7,295,775			2,817,993


Total Foreign Government and Agency Securities (Cost $60,923,658)							58,005,633


U.S. Government and Agency Securities 2.4%
U.S. Treasury Bond, 2.875%, 5/15/52		United States		1,325,700			1,085,883
U.S. Treasury Note,
1.375%, 8/31/23		United States		1,095,000			1,075,282
2.75%, 8/31/23		United States		4,000,000			3,954,627
0.125%, 9/15/23		United States		480,000			467,581
1.375%, 9/30/23		United States		705,000			689,992
3.25%, 8/31/24		United States		1,860,000			1,812,301
4.25%, 9/30/24		United States		1,830,000			1,809,555
4.375%, 10/31/24		United States		1,830,000			1,813,022
4.50%, 11/30/24		United States		2,415,000			2,397,784
4.25%, 12/31/24		United States		1,615,000			1,597,021
3.875%, 1/15/26		United States		347,000			341,063
4.125%, 10/31/27		United States		4,170,000			4,149,557
3.50%, 1/31/28		United States		1,296,000			1,256,715
4.00%, 10/31/29		United States		57,000			56,673


Total U.S. Government and Agency Securities (Cost $22,716,675)							22,507,056


Asset-Backed Securities and Commercial Mortgage-Backed Securities 1.5%
Diversified Financial Services 0.9%
^fAASET Trust, 144A,
2021-1A, A, 2.95%, 11/16/41		United States		200,583			176,332
2022-1A, A, 6.00%, 5/16/47		United States		471,593			453,650
^fAccelerated Assets LLC, 2018-1, B, 144A, 4.51%, 12/02/33		United States		30,761			29,372
^fACHV ABS Trust, 2023-1PL, D, 144A, 8.47%, 3/18/30		United States		100,000			100,451
^fAdams Outdoor Advertising LP, 2018-1, A, 144A, 4.81%, 11/15/48		United States		163,350			154,414
^fAffirm Asset Securitization Trust, 2023-A, C, 144A, 8.12%, 1/18/28		United States		100,000			98,627
^f,kAGL CLO 3 Ltd., 2020-3A, C, 144A, FRN, 6.942%, (3-Month USD LIBOR + 2.15%), 1/15/33		United States		285,000			274,625
^fAIM Aviation Finance Ltd., 2015-1A, B1, 144A, 7.072%, 2/15/40		United States		170,624			55,219
^fAvis Budget Rental Car Funding AESOP LLC, 2020-2A, C, 144A, 4.25%, 2/20/27		United States		100,000			92,726
^f,oBinom Securitization Trust, 2022-RPL1, M1, 144A, FRN, 3.00%, 2/25/61		United States		160,000			119,674
^fBlackbird Capital Aircraft Lease Securitization Ltd., 2016-1A, A, 144A, 4.213%, 12/16/41		United States		162,481			135,961
Carmax Auto Owner Trust, 2023-1, D, 6.27%, 11/15/29		United States		120,000			118,484
^f,kConnecticut Avenue Securities Trust, 2021-R01, 1B1, 144A, FRN, 7.584%, (SOFR + 3.10%), 10/25/41		United States		100,000			95,490
^fCoreVest American Finance Trust, 2019-2, B, 144A, 3.424%, 6/15/52		United States		100,000			89,318
^fDiamond Resorts Owner Trust, 2019-1A, B, 144A, 3.53%, 2/20/32		United States		20,229			19,484

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*		Value

Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)
Diversified Financial Services (continued)
^fDT Auto Owner Trust, 2023-1A, D, 144A, 6.44%, 11/15/28		United States		100,000	$	98,829
^fEducation Funding Trust, 2020-A, A, 144A, 2.79%, 7/25/41		United States		67,928		62,366
^fEWC Master Issuer LLC, 2022-1A, A2, 144A, 5.50%, 3/15/52		United States		308,450		278,249
^fExeter Automobile Receivables Trust, 2020-2A, D, 144A, 4.73%, 4/15/26		United States		90,000		89,318
^fFirstkey Homes Trust, 2020-SFR2, E, 144A, 2.668%, 10/19/37		United States		100,000		90,616
^fFlagship Credit Auto Trust, 2019-4, D, 144A, 3.12%, 1/15/26		United States		90,000		86,577
^fHertz Vehicle Financing III LLC, 2022-3A, D, 144A, 6.31%, 3/25/25		United States		250,000		244,948
^fHorizon Aircraft Finance I Ltd., 2018-1, A, 144A, 4.458%, 12/15/38		United States		196,770		169,712
^fHorizon Aircraft Finance III Ltd., 2019-2, A, 144A, 3.425%, 11/15/39		United States		222,449		179,028
^fKestrel Aircraft Funding Ltd., 2018-1A, A, 144A, 4.25%, 12/15/38		United States		196,441		162,124
^fMaps Trust, 2021-1A, A, 144A, 2.521%, 6/15/46		United States		282,493		245,677
^fMercury Financial Credit Card Master Trust, 2023-1A, B, 144A, 9.59%, 9/20/27		United States		100,000		99,861
^f,oMill City Mortgage Loan Trust, 2021-NMR1, M3, 144A, FRN, 2.50%, 11/25/60		United States		100,000		79,734
^fMVW Owner Trust, 2019-1A, C, 144A, 3.33%, 11/20/36		United States		33,605		31,274
^f,kNeuberger Berman Loan Advisers CLO Ltd., 2018-27A, E, 144A, FRN, 9.992%, (3-Month USD LIBOR + 5.20%), 1/15/30		United States		350,000		313,527
^f,kOCP CLO Ltd., 2021-21A, D, 144A, FRN, 7.758%, (3-Month USD LIBOR + 2.95%), 7/20/34		United States		330,000		311,385
^f,kOHA Credit Funding 4 Ltd., 2021-4A, ER, 144A, FRN, 11.215%, (3-Month USD LIBOR + 6.40%), 10/22/36		United States		310,000		282,300
^fOneMain Financial Issuance Trust, 2020-2A, C, 144A, 2.76%, 9/14/35		United States		100,000		86,162
^f,g,kPost CLO Ltd., 2023-1A, A, 144A, FRN, 6.476%, (3-Month SOFR + 1.95%), 4/20/36		United States		250,000		250,187
^fPrestige Auto Receivables Trust, 144A, 2019-1A, E, 3.90%, 5/15/26		United States		100,000		98,656
2020-1A, E, 3.67%, 2/15/28		United States		100,000		97,739
^fProgress Residential Trust, 144A, 2020-SFR3, D, 1.896%, 10/17/27		United States		325,000		292,391
2021-SFR4, F, 3.407%, 5/17/38		United States		230,000		202,341
2021-SFR7, F, 3.834%, 8/17/40		United States		260,000		217,120
2023-SFR1, C, 4.65%, 3/17/40		United States		120,000		112,733
2023-SFR1, D, 4.65%, 3/17/40		United States		120,000		109,941
^fSCF Equipment Leasing LLC, 2021-1A, E, 144A, 3.56%, 8/20/32		United States		100,000		91,500
^fSierra Timeshare Receivables Funding LLC, 2021-1A, C, 144A, 1.79%, 11/20/37		United States		97,678		89,611
^kSLM Private Credit Student Loan Trust, 2003-B, A3, FRN, 2.806%, (28-Day T-Bill + 1.00%), 3/15/33		United States		150,000		146,971
^fStack Infrastructure Issuer LLC, 2019-1A, A2, 144A, 4.54%, 2/25/44		United States		120,000		117,766
^f,kStarwood Retail Property Trust, 2014-STAR, E, 144A, FRN, 8.988%, (1-Month USD LIBOR + 4.40%), 11/15/27		United States		200,000		875
^f,oTowd Point Mortgage Trust, 2018-5, M1, 144A, FRN, 3.25%, 7/25/58		United States		100,000		80,128
^fVCAT LLC, 144A, 2021-NPL1, A1, 2.289%, 12/26/50		United States		39,066		37,169
2021-NPL5, A1, 1.868%, 8/25/51		United States		73,578		67,297
2021-NPL6, A1, 1.917%, 9/25/51		United States		80,411		73,999
^fVOLT XCII LLC, 2021-NPL1, A1, 144A, 1.893%, 2/27/51		United States		84,395		76,562

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*		Value

Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)
Diversified Financial Services (continued)
^fVOLT XCIV LLC, 144A,
2021-NPL3, A1, 2.24%, 2/27/51		United States		214,687	$	198,598
2021-NPL3, A2, 4.949%, 2/27/51		United States		215,000		194,214
^fWave Trust, 2017-1A, A, 144A, 3.844%, 11/15/42		United States		138,697		108,542
^fWestlake Automobile Receivables Trust, 2023-1A, D, 144A, 6.79%, 11/15/28		United States		100,000		99,930
^fWillis Engine Structured Trust IV, 2018-A, B, 144A, 5.438%, 9/15/43		United States		207,424		156,766
^fWillis Engine Structured Trust VI, 2021-A, B, 144A, 5.438%, 5/15/46		United States		356,311		242,319

						8,088,869

Mortgage Real Estate Investment Trusts (REITs) 0.6%
^f510 Asset Backed Trust, 2021-NPL1, A1, 144A, 2.24%, 6/25/61		United States		98,645		90,879
^kAmerican Home Mortgage Investment Trust, 2006-1, 11A1, FRN, 4.897%, (1-Month USD LIBOR + 0.28%), 3/25/46		United States		118,332		100,188
Banc of America Alternative Loan Trust, 2003-8, 1CB1, 5.50%, 10/25/33		United States		2,773		2,658
Banc of America Funding Trust, 2007-4, 5A1, 5.50%, 11/25/34		United States		28,195		25,117
^oBanc of America Mortgage Trust, 2005-A, 2A1, FRN, 3.902%, 2/25/35		United States		2,035		1,947
^oBear Stearns ALT-A Trust, 2006-3, 21A1, FRN, 3.379%, 5/25/36		United States		1,005,070		774,222
^f,kBPR Trust, 2021-NRD, F, 144A, FRN, 11.432%, (SOFR + 6.87%), 12/15/38		United States		140,000		126,116
^oCHL Mortgage Pass-Through Trust, 2006-HYB4, 3B, FRN, 3.685%, 6/20/36		United States		1,537,986		1,162,685
^fCIM Trust, 2021-NR2, A1, 144A, 2.568%, 7/25/59		United States		117,370		111,657
^f,oCitigroup Commercial Mortgage Trust, 2014-GC21, D, 144A, FRN, 4.941%, 5/10/47		United States		330,000		254,381
^f,oCitigroup Mortgage Loan Trust, 2009-10, 6A2, 144A, FRN, 4.015%, 9/25/34		United States		18,203		17,842
Countrywide Alternative Loan Trust, 2003-22CB, 1A1, 5.75%, 12/25/33		United States		22,587		22,218
2004-16CB, 1A1, 5.50%, 7/25/34		United States		10,571		10,148
2004-16CB, 3A1, 5.50%, 8/25/34		United States		10,011		9,660
2004-J10, 2CB1, 6.00%, 9/25/34		United States		28,182		27,185
2005-J1, 2A1, 5.50%, 2/25/25		United States		870		845
^oCountrywide Home Loans Mortgage Pass-Through Trust, 2004-HYB4, 2A1, FRN, 4.153%, 9/20/34		United States		33,363		29,920
Credit Suisse First Boston Mortgage Securities Corp., 2003-27, 4A4, 5.75%, 11/25/33		United States		11,003		10,772
^fCSMC OA LLC, 2014-USA, E, 144A, 4.373%, 9/15/37		United States		400,000		233,621
^fCSMC Trust, 144A,^o2020-RPL3, A1, FRN, 2.691%, 3/25/60		United States		86,774		84,322
2021-RPL1, A2, 3.937%, 9/27/60		United States		155,000		147,871
^kDSLA Mortgage Loan Trust, 2005-AR5, 2A1A, FRN, 5.251%, (1-Month USD LIBOR + 0.66%), 9/19/45		United States		27,369		17,387
^f,kExtended Stay America Trust, 2021-ESH, F, 144A, FRN, 8.288%, (1-Month USD LIBOR + 3.70%), 7/15/38		United States		97,619		94,391
^fGS Mortgage Securities Corp. Trust, 144A, 2012-BWTR, A, 2.954%, 11/05/34		United States		135,000		98,495
^o2013-PEMB, A, FRN, 3.55%, 3/05/33		United States		135,000		117,111
^oGS Mortgage Securities Trust, FRN,^f2011-GC5, C, 144A, 5.154%, 8/10/44		United States		100,000		73,627
^f2011-GC5, D, 144A, 5.154%, 8/10/44		United States		195,000		83,804

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

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)
^oGS Mortgage Securities Trust, FRN, (continued)
2014-GC18, B, 4.885%, 1/10/47		United States		100,000	$	85,754
GSR Mortgage Loan Trust,
2005-4F, 6A1, 6.50%, 2/25/35		United States		6,922		6,514
^o2005-AR6, 4A5, FRN, 4.159%, 9/25/35		United States		19,727		18,152
^kHarborview Mortgage Loan Trust, 2004-11, 2A2A, FRN, 5.231%, (1-Month USD LIBOR + 0.64%), 1/19/35		United States		56,000		46,574
IndyMac INDX Mortgage Loan Trust, FRN,^k2004-AR7, A5, 5.837%, (1-Month USD LIBOR + 1.22%), 9/25/34		United States		29,046		25,222
^o2005-AR11, A3, 3.466%, 8/25/35		United States		32,992		26,476
^k2006-AR2, 2A1, 5.037%, (1-Month USD LIBOR + 0.42%), 2/25/46		United States		145,669		103,347
JPMorgan Mortgage Trust, 2004-S1, 2A1, 6.00%, 9/25/34		United States		46,292		44,857
^o2007-A1, 4A2, FRN, 3.939%, 7/25/35		United States		822		801
^kLehman XS Trust, 2006-2N, 1A1, FRN, 5.137%, (1-Month USD LIBOR + 0.52%), 2/25/46		United States		24,465		21,314
MASTR Alternative Loan Trust, 2004-2, 8A4, 5.50%, 3/25/34		United States		98,514		86,633
2004-8, 2A1, 6.00%, 9/25/34		United States		20,974		20,106
^f,kMed Trust, 144A, FRN, 2021-MDLN, C, 6.388%, (1-Month USD LIBOR + 1.80%), 11/15/38		United States		124,630		121,482
2021-MDLN, D, 6.588%, (1-Month USD LIBOR + 2.00%), 11/15/38		United States		99,704		96,622
^oMerrill Lynch Mortgage Investors MLCC, 2006-2, 2A, FRN, 3.958%, 5/25/36		United States		1,036		1,007
^oMorgan Stanley Bank of America Merrill Lynch Trust, 2013-C11, B, FRN, 4.357%, 8/15/46		United States		200,000		150,085
^f,oMorgan Stanley Capital I Trust, 2011-C2, E, 144A, FRN, 5.211%, 6/15/44		United States		150,000		114,398
^f,oMSBAM Commercial Mortgage Securities Trust, 2012-CKSV, C, 144A, FRN, 4.281%, 10/15/30		United States		340,000		249,964
^f,oPRPM LLC, 2021-2, A2, 144A, FRN, 3.77%, 3/25/26		United States		130,000		114,097
^oRFMSI Trust, 2005-SA1, 1A1, FRN, 4.414%, 3/25/35		United States		77,014		41,675
^kStructured ARM Loan Trust, 2005-14, A1, FRN, 4.927%, (1-Month USD LIBOR + 0.31%), 7/25/35		United States		147,585		94,525
^fToorak Mortgage Corp. Ltd., 2021-1, A1, 144A, 2.24%, 6/25/24		United States		190,000		175,614
Wells Fargo Commercial Mortgage Trust,^o2013-LC12, B, FRN, 4.283%, 7/15/46		United States		190,000		182,952
2014-LC16, C, 4.458%, 8/15/50		United States		215,000		133,594
^o2016-C36, B, FRN, 3.671%, 11/15/59		United States		100,000		85,638
^o2016-C36, C, FRN, 4.133%, 11/15/59		United States		100,000		75,887
^oWFRBS Commercial Mortgage Trust, FRN,^f2011-C3, D, 144A, 5.378%, 3/15/44		United States		199,819		78,929
^f2011-C4, E, 144A, 4.845%, 6/15/44		United States		120,000		97,274
2014-C24, B, 4.204%, 11/15/47		United States		100,000		92,346

						6,120,908

Total Asset-Backed Securities and Commercial Mortgage-Backed Securities (Cost $15,845,113)						14,209,777

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Number of Contracts		Notional Amount^#		Value

Options Purchased 0.3%
Calls - Exchange-Traded 0.0%^†
3 Month EURIBOR, March Strike Price 98.50 EUR, Expires 3/10/23		80		19,428,000	$	—
3 Month EURIBOR, March Strike Price 97.13 EUR, Expires 3/13/23		40		9,709,500		1,851
3 Month SOFR, March Strike Price $95.19, Expires 3/10/23		60		14,250,750		375
3 Month SOFR, March Strike Price $95.44, Expires 3/10/23		40		9,500,500		250
3 Month SOFR, December Strike Price $97.00, Expires 12/15/23		60		14,212,500		2,625
Activision Blizzard Inc., March Strike Price $80.00, Expires 3/17/23		106		808,250		4,452
Activision Blizzard Inc., April Strike Price $80.00, Expires 4/21/23		107		815,875		17,227
AMC Entertainment Holdings Inc., March Strike Price $10.00, Expires 3/17/23		274		195,636		12,878
Amyris Inc., March Strike Price $2.50, Expires 3/17/23		200		25,000		1,000
Amyris Inc., March Strike Price $3.00, Expires 3/17/23		250		31,250		1,250
Amyris Inc., June Strike Price $3.00, Expires 6/16/23		35		4,375		262
Bausch Health Cos. Inc., March Strike Price $9.00, Expires 3/17/23		379		352,849		21,982
BILL Holdings Inc., March Strike Price $110.00, Expires 3/17/23		4		33,852		68
California Resources Corp., March Strike Price $45.00, Expires 3/17/23		1,003		4,232,660		55,165
CBOE Volatility Index, March Strike Price $21.00, Expires 3/22/23		129		267,030		19,866
CBOE Volatility Index, March Strike Price $22.00, Expires 3/22/23		61		126,270		7,015
CBOE Volatility Index, April Strike Price $22.00, Expires 4/19/23		57		117,990		12,825
CBOE Volatility Index, April Strike Price $23.00, Expires 4/19/23		181		374,670		35,114
CBOE Volatility Index, May Strike Price $23.00, Expires 5/17/23		52		107,640		13,156
Crown Holdings Inc., April Strike Price $75.00, Expires 4/21/23		37		304,177		46,065
E-mini S&P 500, March Strike Price $4,000.00, Expires 3/17/23		1		205,763		2,575
E-mini S&P 500, March Strike Price $4,200.00, Expires 3/17/23		4		823,050		560
E-mini S&P 500, March Strike Price $4,400.00, Expires 3/17/23		2		397,550		15
E-mini S&P 500, June Strike Price $4,500.00, Expires 6/16/23		1		200,588		513
E-mini S&P 500, June Strike Price $5,100.00, Expires 6/16/23		2		401,175		35
Gol Linhas Aereas Inteligentes SA, April Strike Price $4.00, Expires 4/21/23		23		4,968		115
iShares 20+ Year Treasury Bond ETF, July Strike Price $115.00, Expires 7/21/23		204		2,074,884		16,116
iShares 20+ Year Treasury Bond ETF, July Strike Price $120.00, Expires 7/21/23		309		3,142,839		12,669
Manchester United PLC, April Strike Price $26.00, Expires 4/21/23		204		423,300		20,400
Opendoor Technologies Inc., May Strike Price $2.00, Expires 5/19/23		63		9,072		1,008
Porch Group Inc., June Strike Price $5.00, Expires 6/16/23		45		11,250		1,012
Qurate Retail Inc., April Strike Price $3.00, Expires 4/21/23		123		25,953		861
RingCentral Inc., June Strike Price $50.00, Expires 6/16/23		4		13,216		250
Silicon Motion Technology Corp., September Strike Price $70.00, Expires 9/15/23		52		349,544		58,240
SPDR S&P Oil & Gas Exploration & Production ETF, June Strike Price $150.00, Expires 6/16/23		129		1,715,313		61,920
TEGNA Inc., March Strike Price $23.00, Expires 3/17/23		118		205,320		590
TEGNA Inc., April Strike Price $23.00, Expires 4/21/23		149		259,260		2,980
U.S. Treasury 10 Year Note, March Strike Price $116.00, Expires 3/24/23		100		11,165,600		3,125
U.S. Treasury 10 Year Note, April Strike Price $120.00, Expires 4/21/23		30		3,349,680		469
Vnet Group Inc., March Strike Price $6.00, Expires 3/17/23		205		81,385		1,025
Vodafone Group PLC, July Strike Price $13.00, Expires 7/21/23		109		130,473		2,398

						440,302

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Number of Contracts		Notional Amount^#			Value

Options Purchased (continued)

Calls - Over-the-Counter 0.0%^†
DJ EURO STOXX 50 Index, Counterparty GSCO, March Strike Price 4,290.00 EUR, Expires 3/20/23		372		1,576,677		$	16,656
DJ EURO STOXX 50 Index, Counterparty JPHQ, March Strike Price 4,240.00 EUR, Expires 3/30/23		174		737,478			15,809
SGX Nifty 50 Index, Counterparty JPHQ, March Strike Price $17,940.00, Expires 3/13/23		130		317,213			2,074

							34,539


Currency Options 0.0%^†
EUR/USD, Counterparty JPHQ, July Strike Price $1.15, Expires 7/19/23		1		66,000	EUR		3,734
JPY/KRW, Counterparty JPHQ, August Strike Price 10.75 KRW, Expires 8/11/23		1		4,000,000	JPY		4,302
USD/HKD, Counterparty JPHQ, December Strike Price 7.80 HKD, Expires 12/20/23		1		4,600,000			16,941
USD/INR, Counterparty JPHQ, March Strike Price 84.00 INR, Expires 3/15/23		1		600,000			264
USD/INR, Counterparty JPHQ, March Strike Price 86.00 INR, Expires 3/15/23		1		2,400,000			83
USD/KRW, Counterparty JPHQ, March Strike Price 1,270.00 KRW, Expires 3/08/23		1		1,000,000			38,617
USD/PHP, Counterparty JPHQ, March Strike Price 60.00 PHP, Expires 3/15/23		1		1,300,000			15
USD/SGD, Counterparty JPHQ, March Strike Price 1.35 SGD, Expires 3/27/23		1		1,000,000			6,994
USD/TWD, Counterparty JPHQ, September Strike Price 32.00 TWD, Expires 9/20/23		1		120,000			—

							70,950

Puts - Exchange-Traded 0.3%
1 Year SOFR, March Strike Price $95.50, Expires 3/10/23		10		2,376,750			11,000
3 Month EURIBOR, March Strike Price 96.88 EUR, Expires 3/13/23		40		9,709,500			529
3 Month EURIBOR, December Strike Price 96.50 EUR, Expires 12/18/23		60		14,415,750			90,037
3 Month SOFR, July Strike Price $94.50, Expires 7/14/23		70		16,554,125			24,938
3 Month SOFR, September Strike Price $94.50, Expires 9/15/23		20		4,729,750			9,000
3 Month SOFR, December Strike Price $94.75, Expires 12/15/23		1		236,875			869
Activision Blizzard Inc., May Strike Price $70.00, Expires 5/19/23		290		2,211,250			45,820
Activision Blizzard Inc., January Strike Price $70.00, Expires 1/19/24		448		3,312,960			196,000
Activision Blizzard Inc., January Strike Price $75.00, Expires 1/19/24		53		391,935			32,595
American Axle & Manufacturing Holdings Inc., March Strike Price $9.00, Expires 3/17/23		146		128,480			5,840
Amyris Inc., June Strike Price $1.00, Expires 6/16/23		384		48,000			11,520
Amyris Inc., January Strike Price $1.00, Expires 1/19/24		301		37,625			15,050
Amyris Inc., January Strike Price $1.50, Expires 1/19/24		23		2,875			1,955
B Riley Financial Inc., March Strike Price $35.00, Expires 3/17/23		402		1,599,156			14,070
BioMarin Pharmaceutical Inc., June Strike Price $85.00, Expires 6/21/24		3		29,877			1,800
BioMarin Pharmaceutical Inc., June Strike Price $100.00, Expires 6/21/24		1		9,959			1,150
Blackstone Inc., March Strike Price $85.00, Expires 3/17/23		43		390,440			4,472

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Number of Contracts		Notional Amount^#		Value

Options Purchased (continued)

Puts - Exchange-Traded (continued)
Burlington Stores Inc., June Strike Price $200.00, Expires 6/16/23		8		171,400	$	10,720
Caterpillar Inc., March Strike Price $240.00, Expires 3/17/23		114		2,730,870		60,420
CBOE Volatility Index, March Strike Price $21.00, Expires 3/22/23		263		544,410		40,765
CBOE Volatility Index, March Strike Price $22.00, Expires 3/22/23		111		229,770		25,530
CBOE Volatility Index, April Strike Price $23.00, Expires 4/19/23		106		219,420		33,390
Deere & Co., March Strike Price $300.00, Expires 3/17/23		18		754,632		36
Dick's Sporting Good Inc., March Strike Price $70.00, Expires 3/17/23		50		643,150		250
Dick's Sporting Good Inc., June Strike Price $110.00, Expires 6/16/23		28		360,164		14,000
DISH Network Corp., January Strike Price $7.50, Expires 1/19/24		321		366,261		35,952
DISH Network Corp., January Strike Price $7.50, Expires 1/17/25		78		88,998		14,274
DISH Network Corp., December Strike Price $7.50, Expires 12/19/25		65		74,165		15,470
DJ EURO STOXX 50 Index, March Strike Price 4,000.00 EUR, Expires 3/17/23		48		2,034,422		5,788
DJ EURO STOXX 50 Index, April Strike Price 4,100.00 EUR, Expires 4/21/23		55		2,331,109		34,497
E-mini S&P 500, March Strike Price $2,600.00, Expires 3/17/23		7		1,440,338		35
E-mini S&P 500, March Strike Price $2,800.00, Expires 3/17/23		1		205,763		7
E-mini S&P 500, March Strike Price $3,600.00, Expires 3/17/23		7		1,440,338		962
E-mini S&P 500, March Strike Price $3,700.00, Expires 3/17/23		4		795,100		1,200
E-mini S&P 500, March Strike Price $4,000.00, Expires 3/17/23		2		397,550		7,600
E-mini S&P 500, July Strike Price $2,700.00, Expires 7/31/23		12		2,431,200		6,150
E-mini S&P 500, July Strike Price $3,800.00, Expires 7/31/23		6		1,215,600		32,925
Etsy Inc., June Strike Price $90.00, Expires 6/16/23		5		60,705		1,585
Eurodollar 1 Yr., June Strike Price $95.50, Expires 6/16/23		40		9,612,500		48,250
The GEO Group Inc., January Strike Price $5.00, Expires 1/19/24		252		220,752		10,080
The GEO Group Inc., January Strike Price $7.00, Expires 1/19/24		9		7,884		585
GlycoMimetics Inc., April Strike Price $2.50, Expires 4/21/23		302		46,508		30,955
Herbalife Nutrition Ltd., January Strike Price $7.50, Expires 1/19/24		150		290,250		6,750
The Home Depot Inc., June Strike Price $285.00, Expires 6/16/23		42		1,245,468		52,458
IMAX Corp., June Strike Price $11.00, Expires 6/16/23		50		92,200		750
IMAX Corp., January Strike Price $10.00, Expires 1/19/24		38		70,072		1,615
Invesco QQQ Trust Series 1, March Strike Price $287.00, Expires 3/17/23		121		3,552,076		48,521
Invesco QQQ Trust Series 1, March Strike Price $288.00, Expires 3/31/23		65		1,908,140		39,650
Invesco QQQ Trust Series 1, April Strike Price $282.00, Expires 4/21/23		33		968,748		20,559
Lowe's Cos. Inc., June Strike Price $180.00, Expires 6/16/23		64		1,316,800		28,480
Lumentum Holdings Inc., June Strike Price $35.00, Expires 6/16/23		9		48,429		517
NASDAQ 100 Index, March Strike Price $11,500.00, Expires 3/31/23		1		1,204,212		16,430
Norwegian Cruise Line Holdings Ltd., March Strike Price $13.50, Expires 3/17/23		21		31,122		462
Ross Stores Inc., May Strike Price $105.00, Expires 5/19/23		27		298,458		11,610

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Number of Contracts		Notional Amount^#		Value

Options Purchased (continued)

Puts - Exchange-Traded (continued)
Russell 2000 Index, March Strike Price $1,850.00, Expires 3/31/23		3		569,097	$	9,081
S&P 500 Index, March Strike Price $3,900.00, Expires 3/31/23		4		1,588,060		24,440
S&P 500 Index, April Strike Price $3,875.00, Expires 4/21/23		2		794,030		14,300
SPDR S&P 500 ETF Trust, March Strike Price $370.00, Expires 3/17/23		210		8,321,460		17,640
SPDR S&P 500 ETF Trust, April Strike Price $395.00, Expires 4/21/23		169		6,696,794		174,915
SPDR S&P 500 ETF Trust, April Strike Price $398.00, Expires 4/21/23		168		6,657,168		194,040
SPDR S&P 500 ETF Trust, June Strike Price $385.00, Expires 6/16/23		122		4,834,372		132,126
SPDR S&P Regional Banking ETF, March Strike Price $52.00, Expires 3/17/23		207		1,274,292		1,449
SPDR S&P Regional Banking ETF, March Strike Price $57.00, Expires 3/31/23		253		1,557,468		10,626
Transocean Ltd., January Strike Price $1.50, Expires 1/19/24		561		392,139		1,683
Tyler Technologies Inc., June Strike Price $280.00, Expires 6/16/23		3		96,375		2,250
U.S. Treasury 10 Year Note, March Strike Price $110.00, Expires 3/24/23		15		1,674,840		5,156
U.S. Treasury 10 Year Note, March Strike Price $110.50, Expires 3/24/23		10		1,116,560		4,844
U.S. Treasury 5 Year Note, March Strike Price $107.00, Expires 3/03/23		20		2,141,100		4,531
U.S. Treasury 5 Year Note, March Strike Price $104.00, Expires 3/24/23		40		4,282,200		1,250
U.S. Treasury 5 Year Note, March Strike Price $107.00, Expires 3/24/23		52		5,566,860		32,094
U.S. Treasury 5 Year Note, March Strike Price $107.50, Expires 3/24/23		12		1,284,660		10,594
Vistra Corp., March Strike Price $21.00, Expires 3/17/23		139		305,661		4,170
Vivint Smart Home Inc., March Strike Price $10.00, Expires 3/17/23		16		17,984		400
Vnet Group Inc., March Strike Price $5.00, Expires 3/17/23		192		76,224		20,640
Vodafone Group PLC, March Strike Price 0.86 GBP, Expires 3/17/23		1,439		1,726,800		—
Vodafone Group PLC, April Strike Price 0.80 GBP, Expires 4/21/23		400		480,000		—
Vodafone Group PLC, April Strike Price 0.85 GBP, Expires 4/21/23		766		919,200		2,303
Wolfspeed Inc., June Strike Price $55.00, Expires 6/16/23		7		51,786		1,610
World Wrestling Entertainment Inc., July Strike Price $85.00, Expires 7/21/23		149		5,006,400		101,618

						1,897,633

Puts - Over-the-Counter 0.0%^†
3M Co., Counterparty GSCO, January Strike Price $100.00, Expires 1/19/24		150		1,616,100		111,000
DJ EURO STOXX 50 Index, Counterparty GSCO, March Strike Price 4,290.00 EUR, Expires 3/20/23		372		1,576,677		36,215
DJ EURO STOXX 50 Index, Counterparty JPHQ, March Strike Price 4,240.00 EUR, Expires 3/30/23		174		737,478		14,863
DJ EURO STOXX 50 Index, Counterparty BZWS, May Strike Price 4,050.00 EUR, Expires 5/19/23		35		1,483,433		30,985
H & M Hennes & Mauritz AB, Counterparty CITI, March Strike Price 100.00 SEK, Expires 3/17/23		109		1,439,236		79

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Number of Contracts		Notional Amount^#			Value

Options Purchased (continued)

Puts - Over-the-Counter (continued)
SGX Nifty 50 Index, Counterparty JPHQ, March Strike Price $17,940.00, Expires 3/13/23		130		317,213		$	67,026
Softbank Group, Counterparty GSCO, March Strike Price 4,540.00 JPY, Expires 3/09/23		5,531		30,514,527			38
STOXX Europe 600 Automobiles & Parts Index, Counterparty GSCO, March Strike Price 585.00 EUR, Expires 3/17/23		17		531,191			2,886

							263,092


Currency Options 0.0%^†
AUD/JPY, Counterparty JPHQ, March Strike Price 89.00 JPY, Expires 3/15/23		1		3,200,000	AUD		5,704
AUD/USD, Counterparty JPHQ, March Strike Price $0.64, Expires 3/15/23		1		4,000,000	AUD		825
EUR/SGD, Counterparty JPHQ, March Strike Price 1.35 SGD, Expires 3/15/23		1		2,400,000	EUR		1
USD/HKD, Counterparty JPHQ, May Strike Price 7.80 HKD, Expires 5/22/23		1		4,000,000			4,465
USD/JPY, Counterparty JPHQ, July Strike Price 115.00 JPY, Expires 7/17/23		1		200,000			6,302
USD/JPY, Counterparty JPHQ, August Strike Price 115.00 JPY, Expires 8/17/23		1		120,000			8,662
USD/JPY, Counterparty MSCS, August Strike Price 125.00 JPY, Expires 8/29/23		1		4,416,000			52,783

							78,742

Total Options Purchased (Cost $3,797,096)							2,785,258


Total Investments before Short Term Investments (Cost $601,338,874)							617,836,620

	Country		Shares

Short Term Investments 28.3%

Money Market Funds 27.4%
^p,qDreyfus Government Cash Management, Institutional, 4.48%		United States		98,975,359			98,975,359
^pFidelity Investments Money Market Government Portfolio, Institutional, 4.46%		United States		159,771,902			159,771,902


Total Money Market Funds (Cost $258,747,261)							258,747,261


Investments from Cash Collateral Received for Loaned Securities (Cost $3,565,000) 0.4%

Money Market Funds 0.4%
^p,rInstitutional Fiduciary Trust Money Market Portfolio, 4.17%		United States		3,565,000			3,565,000

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*		Value

Short Term Investments (continued)

U.S. Government and Agency Securities 0.5%
^sU.S. Treasury Bill,
5/11/23		United States		1,635,000	$	1,619,998
6/13/23		United States		1,645,000		1,622,403
8/10/23		United States		1,660,000		1,624,116

Total U.S. Government and Agency Securities (Cost $4,866,849)						4,866,517


Total Investments (Cost $868,517,984) 93.8%						885,015,398

Options Written (0.1)%						(818,206	)

Securities Sold Short (16.2)%						(152,844,691	)

Other Assets, less Liabilities 22.5%						211,767,981


Net Assets 100.0%					$	943,120,482


	Number of Contracts		Notional Amount^#

Options Written (0.1)%

Calls - Exchange-Traded (0.0)%^†
3 Month EURIBOR, March Strike Price 99.00 EUR, Expires 3/10/23		80		19,428,000		—
3 Month EURIBOR, March Strike Price 97.25 EUR, Expires 3/13/23		40		9,709,500		(264	)
3 Month SOFR, March Strike Price $95.31, Expires 3/10/23		80		19,001,000		(500	)
3 Month SOFR, December Strike Price $98.00, Expires 12/15/23		60		14,212,500		(1,125	)
Activision Blizzard Inc., March Strike Price $80.00, Expires 3/17/23		198		1,509,750		(8,316	)
Activision Blizzard Inc., June Strike Price $90.00, Expires 6/16/23		585		4,326,075		(64,935	)
AMC Entertainment Holdings Inc., March Strike Price $20.00, Expires 3/17/23		274		195,636		(3,288	)
Apple Inc., April Strike Price $165.00, Expires 4/21/23		2		29,482		(166	)
Bristol-Myers Squibb Co., April Strike Price $75.00, Expires 4/21/23		1		6,896		(24	)
Charter Communications Inc., June Strike Price $420.00, Expires 6/16/23		1		36,761		(1,120	)
Cisco Systems Inc., April Strike Price $52.50, Expires 4/21/23		2		9,684		(52	)
The Coca-Cola Co., April Strike Price $62.50, Expires 4/21/23		4		23,804		(116	)
Crown Holdings Inc., April Strike Price $95.00, Expires 4/21/23		37		304,177		(3,515	)
E-mini S&P 500, June Strike Price $4,700.00, Expires 6/16/23		3		601,763		(405	)
Manchester United PLC, April Strike Price $31.00, Expires 4/21/23		204		423,300		(5,610	)
Merck & Co. Inc., April Strike Price $115.00, Expires 4/21/23		2		21,248		(128	)
Microchip Technology Inc., April Strike Price $90.00, Expires 4/21/23		3		24,309		(375	)
Morgan Stanley, April Strike Price $105.00, Expires 4/21/23		2		19,300		(186	)
Qualcomm Inc., April Strike Price $140.00, Expires 4/21/23		2		24,706		(264	)
Russell 2000 Index, March Strike Price $1,980.00, Expires 3/31/23		4		758,796		(8,056	)
Silicon Motion Technology Corp., September Strike Price $80.00, Expires 9/15/23		52		349,544		(39,520	)
Starbucks Corp., April Strike Price $115.00, Expires 4/21/23		3		30,627		(141	)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Number of Contracts		Notional Amount^#			Value

Options Written (continued)

Calls - Exchange-Traded (continued)
Travelcenters of America Inc., June Strike Price $85.00, Expires 6/16/23		86		725,410		$	(9,030	)
U.S. Treasury 10 Year Note, March Strike Price $118.00, Expires 3/24/23		100		11,165,600			(1,563	)
U.S. Treasury 10 Year Note, April Strike Price $121.00, Expires 4/21/23		10		1,116,560			(156	)
United Parcel Service Inc., April Strike Price $195.00, Expires 4/21/23		1		18,249			(208	)
Vodafone Group PLC, April Strike Price 1.15 GBP, Expires 4/21/23		766		919,200			(6,910	)

							(155,973	)

Calls - Over-the-Counter (0.0)%^†

Currency Options (0.0)%^†
JPY/KRW, Counterparty JPHQ, August Strike Price 11.25 KRW, Expires 8/11/23		1		4,000,000	JPY		(2,235	)
USD/HKD, Counterparty JPHQ, December Strike Price 7.85 HKD, Expires 12/20/23		1		4,600,000			(9,379	)
USD/INR, Counterparty JPHQ, March Strike Price 90.00 INR, Expires 3/15/23		1		600,000			(1	)
USD/INR, Counterparty JPHQ, March Strike Price 95.00 INR, Expires 3/15/23		1		2,400,000			—
USD/KRW, Counterparty JPHQ, March Strike Price 1,300.00 KRW, Expires 3/08/23		1		1,000,000			(17,025	)
USD/SGD, Counterparty JPHQ, March Strike Price 1.37 SGD, Expires 3/27/23		1		1,500,000			(2,157	)

							(30,797	)

Puts - Exchange-Traded (0.1)%
1 Year SOFR, March Strike Price $95.00, Expires 3/10/23		60		14,260,500			(12,000	)
3 Month EURIBOR, December Strike Price 96.00 EUR, Expires 12/18/23		120		28,831,500			(92,813	)
3 Month SOFR, July Strike Price $94.25, Expires 7/14/23		70		16,554,125			(10,500	)
3 Month SOFR, September Strike Price $93.75, Expires 9/15/23		30		7,094,625			(1,500	)
3 Month SOFR, September Strike Price $94.00, Expires 9/15/23		20		4,729,750			(2,000	)
3 Month SOFR, December Strike Price $94.25, Expires 12/15/23		1		236,875			(363	)
Activision Blizzard Inc., March Strike Price $70.00, Expires 3/17/23		46		350,750			(1,012	)
Activision Blizzard Inc., May Strike Price $55.00, Expires 5/19/23		290		2,211,250			(8,120	)
Activision Blizzard Inc., January Strike Price $55.00, Expires 1/19/24		53		391,935			(5,247	)
Activision Blizzard Inc., January Strike Price $60.00, Expires 1/19/24		448		3,312,960			(100,352	)
BILL Holdings Inc., March Strike Price $90.00, Expires 3/17/23		4		33,852			(2,880	)
DJ EURO STOXX 50 Index, March Strike Price 3,700.00 EUR, Expires 3/17/23		48		2,034,422			(1,218	)
DJ EURO STOXX 50 Index, March Strike Price 4,100.00 EUR, Expires 3/17/23		37		1,568,201			(8,805	)
E-mini S&P 500, March Strike Price $3,000.00, Expires 3/17/23		8		1,646,100			(80	)
E-mini S&P 500, March Strike Price $3,200.00, Expires 3/17/23		8		1,646,100			(180	)
E-mini S&P 500, March Strike Price $3,850.00, Expires 3/17/23		6		1,192,650			(7,350	)
E-mini S&P 500, July Strike Price $3,550.00, Expires 7/31/23		12		2,431,200			(36,150	)
Eurodollar 1 Yr., June Strike Price $95.00, Expires 6/16/23		20		4,806,250			(11,500	)
Eurodollar 1 Yr., June Strike Price $96.00, Expires 6/16/23		20		4,806,250			(42,500	)
Focus Financial Partners Inc., March Strike Price $50.00, Expires 3/17/23		61		316,346			(305	)
GlycoMimetics Inc., March Strike Price $2.50, Expires 3/17/23		302		46,508			(27,180	)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Number of Contracts		Notional Amount^#			Value

Options Written (continued)

Puts - Exchange-Traded (continued)
The Home Depot Inc., June Strike Price $245.00, Expires 6/16/23		42		1,245,468		$	(14,490	)
Invesco QQQ Trust Series 1, March Strike Price $277.00, Expires 3/17/23		60		1,761,360			(9,900	)
Lowe's Cos. Inc., June Strike Price $155.00, Expires 6/16/23		64		1,316,800			(9,664	)
Manchester United PLC, March Strike Price $18.00, Expires 3/17/23		59		122,425			(4,897	)
Manchester United PLC, March Strike Price $23.00, Expires 3/17/23		31		64,325			(10,618	)
National Instruments Corp., March Strike Price $50.00, Expires 3/17/23		39		196,989			(3,900	)
Qualtrics International Inc., March Strike Price $15.00, Expires 3/17/23		192		324,864			(2,880	)
Russell 2000 Index, March Strike Price $1,750.00, Expires 3/31/23		3		569,097			(3,060	)
S&P 500 Index, March Strike Price $3,800.00, Expires 3/17/23		9		3,573,135			(15,408	)
Silicon Motion Technology Corp., September Strike Price $60.00, Expires 9/15/23		52		349,544			(33,800	)
SPDR S&P 500 ETF Trust, April Strike Price $365.00, Expires 4/21/23		168		6,657,168			(46,704	)
U.S. Treasury 10 Year Note, March Strike Price $109.00, Expires 3/24/23		15		1,674,840			(2,344	)
U.S. Treasury 10 Year Note, March Strike Price $109.50, Expires 3/24/23		10		1,116,560			(2,344	)
U.S. Treasury 5 Year Note, March Strike Price $105.00, Expires 3/24/23		40		4,282,200			(3,750	)
U.S. Treasury 5 Year Note, March Strike Price $106.00, Expires 3/24/23		15		1,605,825			(3,984	)
U.S. Treasury 5 Year Note, March Strike Price $106.25, Expires 3/24/23		51		5,459,805			(17,133	)
Vodafone Group PLC, March Strike Price 0.80 GBP, Expires 3/17/23		1,439		1,726,800			—
Vodafone Group PLC, April Strike Price 0.70 GBP, Expires 4/21/23		400		480,000			—
Vodafone Group PLC, April Strike Price 0.75 GBP, Expires 4/21/23		766		919,200			—
Vodafone Group PLC, July Strike Price $10.00, Expires 7/21/23		109		130,473			(4,960	)
World Wrestling Entertainment Inc., July Strike Price $75.00, Expires 7/21/23		149		5,006,400			(50,660	)


							(612,551	)


Puts - Over-the-Counter (0.0)%^†
DJ EURO STOXX 50 Index, Counterparty BZWS, May Strike Price 3,750.00 EUR, Expires 5/19/23		35		1,483,433			(12,365	)
STOXX Europe 600 Automobiles & Parts Index, Counterparty GSCO, March Strike Price 525.00 EUR, Expires 3/17/23		17		531,191			(473	)


							(12,838	)


Currency Options (0.0)%^†
AUD/JPY, Counterparty JPHQ, March Strike Price 84.00 JPY, Expires 3/15/23		1		3,200,000	AUD		(345	)
AUD/USD, Counterparty JPHQ, March Strike Price $0.60, Expires 3/15/23		1		4,000,000	AUD		(22	)
EUR/SGD, Counterparty JPHQ, March Strike Price 1.29 SGD, Expires 3/15/23		1		2,400,000	EUR		—
USD/HKD, Counterparty JPHQ, May Strike Price 7.75 HKD, Expires 5/22/23		1		8,000,000			(3,073	)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Number of Contracts		Notional Amount^#		Value

Options Written (continued)

Puts - Over-the-Counter (continued)

Currency Options (continued)
USD/INR, Counterparty JPHQ, March Strike Price 15,000.00 INR, Expires 3/29/23		1		1,000,000	$	(2,607	)

						(6,047	)


Total Options Written (Premiums Received $955,801)						(818,206	)


	Country		Shares

Securities Sold Short (16.2)%

Common Stocks (8.6)%

Aerospace & Defense (0.0)%^†
Axon Enterprise Inc.		United States		402		(80,524	)
Virgin Galactic Holdings Inc.		United States		14,439		(82,880	)


						(163,404	)

Airlines (0.4)%
American Airlines Group Inc.		United States		33,134		(529,481	)
Cathay Pacific Airways Ltd.		Hong Kong		633,100		(622,871	)
Copa Holdings SA, A		Panama		27,461		(2,536,023	)
Jetblue Airways Corp.		United States		5,848		(48,538	)


						(3,736,913	)

Auto Components (0.0)%^†
LCI Industries		United States		864		(97,468	)
Luminar Technologies Inc.		United States		20,885		(186,921	)


						(284,389	)

Automobiles (0.2)%
Fisker Inc.		United States		18,896		(140,397	)
Ford Motor Co.		United States		25,653		(309,632	)
Li Auto Inc., ADR		China		20,005		(472,318	)
Lucid Group Inc.		United States		23,028		(210,246	)
Winnebago Industries Inc.		United States		6,461		(410,661	)


						(1,543,254	)

Biotechnology (0.6)%
Apellis Pharmaceuticals Inc.		United States		11,510		(753,675	)
Avid Bioservices Inc.		United States		18,684		(307,539	)
Coherus Biosciences Inc.		United States		32,169		(217,784	)
Dynavax Technologies Corp.		United States		80,095		(824,978	)
Exact Sciences Corp.		United States		605		(37,710	)
Gossamer Bio Inc.		United States		23,266		(40,250	)
Halozyme Therapeutics Inc.		United States		4,426		(212,404	)
Insmed Inc.		United States		17,996		(366,758	)
Intercept Pharmaceuticals Inc.		United States		44,947		(907,030	)
Ionis Pharmaceuticals Inc.		United States		1,922		(69,000	)
Karyopharm Therapeutics Inc.		United States		13,430		(40,559	)
Mannkind Corp.		United States		232,339		(1,226,750	)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Shares		Value

Securities Sold Short (continued)

Common Stocks (continued)

Biotechnology (continued)
Pharming Group NV		Netherlands		66,557	$	(80,566	)
Travere Therapeutics Inc.		United States		15,196		(336,743	)


						(5,421,746	)

Capital Markets (0.6)%
Ares Capital Corp.		United States		132,155		(2,558,521	)
Owl Rock Capital Corp.		United States		243,488		(3,335,786	)
Wisdomtree Inc.		United States		5,760		(34,387	)


						(5,928,694	)

Chemicals (0.3)%
Albemarle Corp.		United States		4,811		(1,223,485	)
Amyris Inc.		United States		33,301		(41,626	)
Danimer Scientific Inc.		United States		30,649		(79,074	)
Livent Corp.		United States		41,423		(971,370	)
The Sherwin-Williams Co.		United States		4,005		(886,507	)


						(3,202,062	)

Commercial Services & Supplies (0.1)%
Ritchie Bros Auctioneers Inc.		Canada		19,614		(1,199,788	)

Communications Equipment (0.0)%^†
Lumentum Holdings Inc.		United States		335		(18,026	)

Construction & Engineering (0.1)%
Granite Construction Inc.		United States		12,979		(560,693	)

Consumer Finance (0.2)%
Encore Capital Group Inc.		United States		14,908		(770,445	)
EZCORP Inc., A		United States		75,235		(663,573	)
LendingTree Inc.		United States		168		(5,532	)
PRA Group Inc.		United States		3,296		(140,278	)


						(1,579,828	)

Diversified Consumer Services (0.0)%^†
Chegg Inc.		United States		246		(3,909	)

Diversified Telecommunication Services (0.0)%^†
Bandwidth Inc., A		United States		1,761		(28,000	)
Radius Global Infrastructure Inc., A		United States		14,962		(203,932	)


						(231,932	)

Electric Utilities (0.0)%^†
Alliant Energy Corp.		United States		233		(11,946	)
PNM Resources Inc.		United States		4,124		(202,076	)
PPL Corp.		United States		1,391		(37,654	)
The Southern Co.		United States		225		(14,189	)


						(265,865	)

Electrical Equipment (0.4)%
Array Technologies Inc.		United States		23,154		(433,906	)
Bloom Energy Corp., A		United States		48,487		(1,051,683	)
Plug Power Inc.		United States		130,053		(1,933,888	)
Tpi Composites Inc.		United States		3,453		(39,917	)


						(3,459,394	)

Electronic Equipment, Instruments & Components (0.0)%^†
PAR Technology Corp.		United States		3,509		(119,832	)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Shares		Value

Securities Sold Short (continued)

Common Stocks (continued)

Electronic Equipment, Instruments & Components (continued)
Vishay Intertechnology Inc.		United States		1,141	$	(24,224	)


						(144,056	)

Energy Equipment & Services (0.1)%
Helix Energy Solutions Group Inc.		United States		125,441		(1,038,651	)
Transocean Ltd.		United States		36,539		(255,408	)


						(1,294,059	)

Entertainment (0.2)%
Cinemark Holdings Inc.		United States		59,911		(815,389	)
Live Nation Entertainment Inc.		United States		2,403		(173,160	)
The Marcus Corp.		United States		39,383		(633,672	)
Sea Ltd., ADR		Singapore		4,365		(272,769	)
Spotify Technology SA		United States		174		(20,236	)


						(1,915,226	)

Equity Real Estate Investment Trusts (REITs) (0.4)%
Braemar Hotels & Resorts Inc.		United States		68,633		(319,830	)
Pebblebrook Hotel Trust		United States		20,961		(299,114	)
Public Storage		United States		10,082		(3,014,014	)
Summit Hotel Properties Inc.		United States		12,766		(94,468	)


						(3,727,426	)

Food & Staples Retailing (0.0)%^†
The Chefs' Warehouse Inc.		United States		10,270		(334,288	)

Food Products (0.0)%^†
Post Holdings Inc.		United States		744		(66,930	)

Health Care Equipment & Supplies (0.2)%
Alphatec Holdings Inc.		United States		5,667		(83,928	)
CONMED Corp.		United States		1,677		(161,311	)
Cutera Inc.		United States		25,769		(835,689	)
Envista Holdings Corp.		United States		5,095		(196,973	)
Integer Holdings Corp.		United States		53		(3,974	)
Mesa Laboratories Inc.		United States		397		(70,078	)
NuVasive Inc.		United States		614		(26,543	)
Varex Imaging Corp.		United States		29,811		(527,356	)


						(1,905,852	)

Health Care Providers & Services (0.1)%
Oak Street Health Inc.		United States		5,718		(202,417	)
PetIQ Inc., A		United States		8,431		(78,577	)
Signify Health Inc., A		United States		29,722		(855,697	)


						(1,136,691	)

Health Care Technology (0.1)%
Evolent Health Inc., A		United States		6,457		(226,060	)
Health Catalyst Inc.		United States		7,842		(109,474	)
Nextgen Healthcare Inc.		United States		14,981		(271,306	)


						(606,840	)

Hotels, Restaurants & Leisure (0.3)%
Airbnb Inc., A		United States		641		(79,022	)
Carnival Corp.		United States		48,428		(514,305	)
The Cheesecake Factory Inc.		United States		1,196		(44,778	)
Marriott Vacations Worldwide Corp.		United States		2,514		(384,617	)
Norwegian Cruise Line Holdings Ltd.		United States		49,375		(731,738	)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Shares		Value

Securities Sold Short (continued)

Common Stocks (continued)

Hotels, Restaurants & Leisure (continued)
Royal Caribbean Cruises Ltd.		United States		18,817	$	(1,329,233	)


						(3,083,693	)

Independent Power & Renewable Electricity Producers (0.0)%^†
Sunnova Energy International Inc.		United States		10,942		(194,549	)

Interactive Media & Services (0.0)%
^†fuboTV Inc.		United States		265		(506	)
Match Group Inc.		United States		3,138		(129,976	)
Snap Inc., A		United States		18,007		(182,771	)


						(313,253	)

Internet & Direct Marketing Retail (0.2)%
^fDelivery Hero SE, 144A		South Korea		631		(25,357	)
Etsy Inc.		United States		2,507		(304,375	)
Groupon Inc., A		United States		2,925		(21,967	)
^fJust Eat Takeaway.com NV, 144A		United Kingdom		1,089		(23,686	)
MercadoLibre Inc.		Brazil		401		(489,220	)
Wayfair Inc., A		United States		11,674		(472,680	)
Xometry Inc., A		United States		6,079		(184,863	)


						(1,522,148	)

IT Services (0.1)%
Cloudflare Inc., A		United States		856		(51,369	)
Digitalocean Holdings Inc.		United States		584		(18,676	)
i3 Verticals Inc., A		United States		6,910		(170,055	)
MongoDB Inc., A		United States		1,178		(246,815	)
Okta Inc., A		United States		925		(65,943	)
Repay Holdings Corp., A		United States		4,591		(38,932	)
Sabre Corp.		United States		21,662		(109,610	)
Shift4 Payments Inc., A		United States		7,100		(457,950	)
Shopify Inc., A		Canada		482		(19,829	)


						(1,179,179	)

Leisure Products (0.1)%
Topgolf Callaway Brands Corp.		United States		28,228		(654,325	)

Life Sciences Tools & Services (0.0)%^†
Inotiv Inc.		United States		6,791		(50,932	)

Machinery (0.1)%
3d Systems Corp.		United States		1,852		(18,131	)
Desktop Metal Inc., A		United States		246,732		(375,033	)
The Greenbrier Cos. Inc.		United States		4,112		(132,036	)


						(525,200	)

Marine (0.4)%
A.P. Moller-Maersk AS, B		Denmark		296		(689,487	)
Eagle Bulk Shipping Inc.		United States		39,471		(2,576,272	)


						(3,265,759	)

Media (0.0)%^†
Charter Communications Inc., A		United States		413		(151,823	)
Dish Network Corp., A		United States		5,023		(57,312	)
Magnite Inc.		United States		938		(10,440	)
Techtarget Inc.		United States		787		(29,694	)


						(249,269	)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Shares		Value

Securities Sold Short (continued)

Common Stocks (continued)

Metals & Mining (1.0)%
Agnico Eagle Mines Ltd.		Canada		37,157	$	(1,710,337	)
ATI Inc.		United States		27,257		(1,107,997	)
Century Aluminum Co.		United States		22,300		(269,161	)
Ivanhoe Mines Ltd., A		Canada		51,266		(428,313	)
Lithium Americas Corp.		Canada		17,664		(416,693	)
MP Materials Corp.		United States		7,196		(251,860	)
Newmont Corp.		United States		23,006		(1,003,292	)
Pan American Silver Corp.		Canada		157,924		(2,346,751	)
Piedmont Lithium Inc.		United States		3,350		(217,415	)
United States Steel Corp.		United States		48,564		(1,487,515	)


						(9,239,334	)

Mortgage Real Estate Investment Trusts (REITs) (0.1)%
Arbor Realty Trust Inc.		United States		17,192		(259,255	)
Hannon Armstrong Sustainable Infrastructure Capital Inc.		United States		2,812		(88,325	)
PennyMac Mortgage Investment Trust		United States		17,396		(226,670	)
Redwood Trust Inc.		United States		24,787		(188,629	)
Two Harbors Investment Corp.		United States		3,338		(55,311	)


						(818,190	)

Multi-Utilities (0.1)%
WEC Energy Group Inc.		United States		9,619		(852,821	)

Oil, Gas & Consumable Fuels (0.1)%
California Resources Corp.		United States		29,190		(1,231,818	)

Personal Products (0.0)%^†
The Beauty Health Co.		United States		9,703		(122,355	)
Herbalife Nutrition Ltd.		United States		14,666		(283,787	)


						(406,142	)

Pharmaceuticals (0.2)%
Avadel Pharmaceuticals PLC, ADR		United States		33,047		(328,818	)
Collegium Pharmaceutical Inc.		United States		12,507		(331,811	)
Innoviva Inc.		United States		11,225		(135,486	)
Pacira Biosciences Inc.		United States		2,583		(109,958	)
Revance Therapeutics Inc.		United States		17,318		(600,934	)


						(1,507,007	)

Professional Services (0.0)%^†
Fiverr International Ltd.		Israel		299		(11,843	)
Upwork Inc.		United States		1,697		(19,244	)


						(31,087	)

Real Estate Management & Development (0.1)%
Anywhere Real Estate Inc.		United States		7,765		(44,959	)
Opendoor Technologies Inc.		United States		26,865		(38,686	)
Redfin Corp.		United States		8,268		(61,266	)
Storagevault Canada Inc.		Canada		12,427		(56,192	)
Zillow Group Inc., C		United States		7,471		(313,782	)


						(514,885	)

Road & Rail (0.2)%
Canadian Pacific Railway Ltd.		Canada		10,427		(791,826	)
Old Dominion Freight Line Inc.		United States		2,417		(819,992	)
Uber Technologies Inc.		United States		635		(21,120	)


						(1,632,938	)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Shares		Value

Securities Sold Short (continued)

Common Stocks (continued)

Semiconductors & Semiconductor Equipment (0.6)%
Ams-Osram AG		Austria		10,186	$	(78,971	)
Enphase Energy Inc.		United States		9,284		(1,954,560	)
First Solar Inc.		United States		5,323		(900,332	)
Microchip Technology Inc.		United States		8,020		(649,861	)
ON Semiconductor Corp.		United States		352		(27,248	)
Semtech Corp.		United States		11,195		(344,918	)
SMART Global Holdings Inc.		United States		5,026		(83,934	)
SolarEdge Technologies Inc.		United States		882		(280,406	)
Veeco Instruments Inc.		United States		79,084		(1,682,117	)
Wolfspeed Inc.		United States		474		(35,067	)


						(6,037,414	)

Software (0.5)%
8x8 Inc.		United States		55,896		(297,367	)
Altair Engineering Inc., A		United States		3,078		(197,177	)
Alteryx Inc., A		United States		317		(20,703	)
Bentley Systems Inc., B		United States		1,755		(71,007	)
Bill Holdings Inc.		United States		2,362		(199,896	)
Blackline Inc.		United States		3,967		(271,184	)
Cerence Inc.		United States		6,265		(171,536	)
Confluent Inc., A		United States		2,046		(49,902	)
^eCoupa Software Inc.		United States		500		(40,485	)
Datadog Inc., A		United States		2,299		(175,919	)
Dye & Durham Ltd.		Canada		3,783		(52,898	)
Envestnet Inc.		United States		1,361		(85,076	)
Everbridge Inc.		United States		172		(5,621	)
Five9 Inc.		United States		572		(37,752	)
Guidewire Software Inc.		United States		841		(59,047	)
HubSpot Inc.		United States		260		(100,584	)
Marathon Digital Holdings Inc.		United States		1,062		(7,540	)
Mitek Systems Inc.		United States		16,743		(155,710	)
Model N Inc.		United States		2,505		(83,166	)
Nutanix Inc., A		United States		1,842		(52,037	)
Pagerduty Inc.		United States		3,278		(97,881	)
Palo Alto Networks Inc.		United States		5,863		(1,104,413	)
Porch Group Inc.		United States		11,274		(28,185	)
Q2 Holdings Inc.		United States		1,667		(53,811	)
Rapid7 Inc.		United States		1,668		(78,896	)
Splunk Inc.		United States		908		(93,070	)
Unity Software Inc.		United States		313		(9,528	)
Workiva Inc., A		United States		847		(75,552	)
Zscaler Inc.		United States		3,835		(502,960	)


						(4,178,903	)

Specialty Retail (0.3)%
Burlington Stores Inc.		United States		2,499		(535,411	)
Guess? Inc.		United States		24,630		(518,215	)
The Home Depot Inc.		United States		2,709		(803,327	)
National Vision Holdings Inc.		United States		22,381		(836,154	)


						(2,693,107	)

Trading Companies & Distributors (0.1)%
United Rentals Inc.		United States		2,421		(1,134,311	)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Shares		Value

Securities Sold Short (continued)

Common Stocks (continued)
Water Utilities (0.1)%
American Water Works Co. Inc.		United States		6,376	$	(895,063	)


Total Common Stocks (Proceeds $89,928,764)						(80,942,592	)


Exchange Traded Funds (5.8)%
Industrial Select Sector SPDR Fund		United States		21,846		(2,205,791	)
Invesco QQQ Series 1 ETF		United States		3,069		(900,936	)
iShares iBoxx High Yield Corporate Bond ETF		United States		64,543		(4,810,390	)
iShares Russell 1000 ETF		United States		198,096		(43,412,738	)
SPDR Bloomberg High Yield Bond ETF		United States		27,581		(2,520,627	)
Utilities Select Sector SPDR Fund		United States		16,508		(1,073,020	)


Total Exchange Traded Funds (Proceeds $60,667,106)						(54,923,502	)


Preferred Stocks (Proceeds $379,016) (0.0)%^†
Automobiles (0.0)%^†
Dr ING HC F Porsche AG, pfd., zero cpn.		Germany		3,306		(398,420	)


			Principal Amount^*


Corporate Bonds and Notes (1.4)%
Automobiles (0.1)%
Ford Motor Credit Co. LLC, senior note, 4.95%, 5/28/27		United States		550,000		(513,026	)
^f,nRivian Holdings LLC/Rivian LLC/Rivian Automotive LLC, senior secured note, 144A, FRN, 10.164%, (6-Month USD LIBOR + 5.63%), 10/15/26		United States		149,000		(146,020	)


						(659,046	)

Banks (0.1)%
^f,hIndustrial & Commercial Bank of China Ltd., junior sub. note, Reg S, 3.20% to 9/24/26, FRN thereafter, Perpetual		China		761,000		(706,875	)
SVB Financial Group, senior note,
1.80%, 10/28/26		United States		308,000		(268,676	)
2.10%, 5/15/28		United States		295,000		(248,057	)


						(1,223,608	)

Building Products (0.1)%
3M Co.,
senior bond, 2.875%, 10/15/27		United States		494,000		(449,835	)
senior bond, 2.375%, 8/26/29		United States		278,000		(233,570	)
senior note, 2.65%, 4/15/25		United States		277,000		(262,512	)


						(945,917	)

Chemicals (0.0)%^†
Celanese US Holdings LLC, senior note, 6.33%, 7/15/29		United States		157,000		(154,081	)

Construction & Engineering (0.1)%
Fluor Corp., senior bond, 4.25%, 9/15/28		United States		951,000		(859,003	)

Consumer Finance (0.2)%
Ally Financial Inc., junior sub. bond, 5.75%, 11/20/25		United States		536,000		(525,115	)
Onemain Finance Corp., senior note,
6.875%, 3/15/25		United States		220,000		(214,987	)
7.125%, 3/15/26		United States		1,171,000		(1,139,489	)


						(1,879,591	)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*			Value

Securities Sold Short (continued)

Corporate Bonds and Notes (continued)
Diversified Financial Services (0.1)%
^fKronos Acquisition Holdings Inc. / KIK Custom Products Inc., senior note, 144A, 7.00%, 12/31/27		Canada		664,000		$	(570,140	)
^fMPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28		United States		568,000			(369,910	)


							(940,050	)

Electric Utilities (0.1)%
^fVistra Operations Co. LLC, senior note, 144A,
5.00%, 7/31/27		United States		308,000			(286,440	)
4.375%, 5/01/29		United States		257,000			(222,315	)


							(508,755	)

Health Care Providers & Services (0.1)%
^fRadiology Partners Inc., senior note, 144A, 9.25%, 2/01/28		United States		104,000			(62,306	)
^fSelect Medical Corp., senior note, 144A, 6.25%, 8/15/26		United States		90,000			(86,053	)
Tenet Healthcare Corp., senior secured note, 6.25%, 2/01/27		United States		881,000			(858,823	)


							(1,007,182	)

Hotels, Restaurants & Leisure (0.0)%^†
^fMohegan Tribal Gaming Authority, senior secured note, 144A, 8.00%, 2/01/26		United States		275,000			(257,884	)

Media (0.3)%
DISH DBS Corp., senior note, 5.875%, 11/15/24		United States		298,000			(279,476	)
7.75%, 7/01/26		United States		381,000			(296,134	)
Grupo Televisa Sab, senior bond, 6.125%, 1/31/46		Mexico		471,000			(471,791	)
iHeartCommunications Inc., senior note, 8.375%, 5/01/27		United States		1,039,411			(915,721	)
^fScripps Escrow II Inc., senior bond, 144A, 5.375%, 1/15/31		United States		744,000			(527,544	)
^fScripps Escrow Inc., senior note, 144A, 5.875%, 7/15/27		United States		29,000			(23,252	)
^fSinclair Television Group Inc., senior bond, 144A, 5.50%, 3/01/30		United States		120,000			(88,648	)


							(2,602,566	)

Oil, Gas & Consumable Fuels (0.1)%
^fTallgrass Energy Partners LP / Tallgrass Energy Finance Corp.,senior bond, 144A, 6.00%, 12/31/30		United States		482,000			(416,289	)

Pharmaceuticals (0.0)%^†
^fOwens & Minor Inc., senior note, 144A, 6.625%, 4/01/30		United States		131,000			(107,930	)

Semiconductors & Semiconductor Equipment (0.1)%
Intel Corp., senior bond, 4.75%, 3/25/50		United States		743,000			(644,362	)
4.90%, 8/05/52		United States		474,000			(420,682	)


							(1,065,044	)

Specialty Retail (0.0)%^†
QVC Inc., senior secured bond, 4.45%, 2/15/25		United States		118,000			(95,436	)


Total Corporate Bonds and Notes (Proceeds $13,349,204)							(12,722,382	)


Foreign Government and Agency Securities (0.2)%
^fGovernment of Italy, senior bond, Reg S, 0.95%, 6/01/32		Italy		467,000	EUR		(370,008	)
2.50%, 12/01/32		Italy		833,000	EUR		(754,248	)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


	Country		Principal Amount^*		Value

Securities Sold Short (continued)

Foreign Government and Agency Securities (continued)
Government of Turkey, senior bond,
5.75%, 3/22/24		Turkey		573,000	$	(560,595	)
7.375%, 2/05/25		Turkey		590,000		(582,270	)


Total Foreign Government and Agency Securities (Proceeds $2,362,850)						(2,267,121	)


U.S. Government and Agency Securities (0.2)%
U.S. Treasury Bond,
3.00%, 8/15/52		United States		686,700		(577,472	)
4.00%, 11/15/52		United States		147,000		(149,664	)
U.S. Treasury Note,
4.00%, 2/29/28		United States		640,000		(635,300	)
3.50%, 2/15/33		United States		236,000		(228,238	)

Total U.S. Government and Agency Securities (Proceeds $1,630,081)						(1,590,674	)


Total Securities Sold Short (Proceeds $168,317,021)					$	(152,844,691	)

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

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

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

^a Non-income producing.

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

^c A portion or all of the security is on loan at February 28, 2023.

^d 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, 2023, the aggregate value of these securities and/or cash pledged amounted to $211,192,116, representing 22.4% of net assets.

^e Fair valued using significant unobservable inputs. See Note 7 regarding fair value measurements.

^f Security was purchased pursuant to Rule 144A or Regulation S under the Securities Act of 1933. 144A securities may be sold in transactions exempt from registration only to qualified institutional buyers or in public offering registered under the Securities Act of 1933. Regulation S securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At February 28, 2023, the net value of these securities was $167,258,655, representing 17.7% of net assets.

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

^h Perpetual security with no stated maturity date.

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

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

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

^l See Note 4 regarding unfunded loan commitments.

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

ⁿ The coupon rate shown represents the rate at period end.

^o 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.

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

^q A portion or all of the security is owned by K2 Holdings Investment Corp., a wholly-owned subsidiary of the Fund. See Note 6.

^r See Note 5 regarding investment in affiliated management investment companies.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

At February 28, 2023, the Fund had the following futures contracts outstanding.

Futures Contracts


Description	Type		Number of Contracts		Notional Amount^*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Commodity Contracts^a
Aluminum		Long		20	$	1,168,565		3/13/23	$	(129,996	)
Aluminum		Short		20		1,168,565		3/13/23		27,843
Aluminum		Short		16		953,600		6/19/23		34,629
Brent Crude Oil		Long		10		834,500		3/31/23		(8,735	)
Cocoa		Long		17		435,348		5/15/23		24,305
Coffee		Short		10		698,625		5/18/23		(43,436	)
Copper		Long		21		4,703,475		3/13/23		112,498
Copper		Short		21		4,703,475		3/13/23		(163,546	)
Copper		Long		14		3,137,050		6/19/23		15,505
Copper		Short		2		448,150		6/19/23		(1,669	)
Corn		Long		82		2,584,025		5/12/23		(197,656	)
Cotton		Short		16		672,240		5/08/23		10,409
Gasoline		Long		17		1,886,388		3/31/23		(14,528	)
Gold 100 Oz		Short		4		734,680		4/26/23		(7,929	)
Hard Red Winter Wheat		Short		30		1,209,750		7/14/23		105,465
Low Sulphur Gas Oil		Long		8		660,000		4/12/23		6,813
Natural Gas		Short		27		741,690		3/29/23		(58,080	)
NY Harbor		Long		4		471,341		3/31/23		(2,004	)
Silver		Long		7		737,485		5/26/23		(23,241	)
Soybean Meal		Long		25		1,167,750		5/12/23		(33,381	)
Soybean Oil		Short		19		684,456		5/12/23		12,119
Soybeans		Long		51		3,771,450		5/12/23		(126,856	)
Sugar		Long		51		1,146,398		4/28/23		16,163
Wheat		Short		44		1,552,100		5/12/23		181,511
WTI Crude Oil		Short		5		385,250		3/21/23		5,746
Zinc		Long		19		1,431,412		3/13/23		(112,946	)
Zinc		Short		19		1,431,412		3/13/23		(6,675	)
Zinc		Long		10		749,625		6/19/23		(24,797	)
Zinc		Short		9		674,663		6/19/23		4,907

										(397,562	)

Currency Contracts^a
U.S. Dollar Index		Long		16		1,677,200		3/13/23		24,325

Equity Contracts
CAC 40 10 Euro Index^a		Long		46		3,540,567		3/17/23		(783	)
CBOE Volatility Index		Long		8		166,206		3/22/23		(13,772	)
CBOE Volatility Index		Long		8		174,014		4/19/23		(9,950	)
CBOE Volatility Index		Long		1		22,151		5/17/23		(13	)
CBOE Volatility Index		Long		13		292,731		6/21/23		(7,268	)
CBOE Volatility Index		Long		23		529,377		7/19/23		(2,933	)
CBOE Volatility Index		Long		10		230,020		8/16/23		(2,571	)
DAX Index^a		Long		19		7,740,091		3/17/23		328,921
DJ EURO STOXX 50 Index^a		Long		157		7,052,523		3/17/23		359,799
DJ EURO STOXX 50 Index		Short		4		179,682		3/17/23		(14,021	)
DJIA Mini E-CBOT Index^a		Short		11		1,797,510		3/17/23		32,677
E-Mini Russell 2000^a		Short		4		379,820		3/17/23		1,577
FTSE 100 Index^a		Long		118		11,158,327		3/17/23		341,036
FTSE China A50 Index		Long		24		320,160		3/30/23		(9,371	)
Hang Seng China Enterprises Index		Long		53		2,227,183		3/30/23		(346,877	)
Hang Seng Index^a		Short		5		628,774		3/30/23		16,104
Hang Seng Tech Index		Long		15		375,602		3/30/23		(24,360	)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Futures Contracts (continued)


Description	Type		Number of Contracts		Notional Amount^*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Equity Contracts (continued)
NASDAQ 100 E-Mini Index^a		Short		6	$	1,448,670		3/17/23	$	(15,729	)
NASDAQ 100 E-Mini Index		Short		2		488,240		6/16/23		12,723
S&P 500 E-Mini Index		Long		2		397,550		3/17/23		13,199
S&P 500 E-Mini Index^a		Short		101		20,076,275		3/17/23		111,508
SGX Nifty 50		Short		48		1,670,304		3/29/23		46,185
TOPIX Index		Short		1		146,524		3/09/23		(1,489	)
VSTOXX		Long		15		32,604		4/19/23		(21	)
VSTOXX		Long		14		30,726		5/17/23		(133	)

										814,438

Interest Rate Contracts
3 Month EURIBOR		Long		37		9,428,088		6/19/23		(6,123	)
3 Month EURIBOR		Short		46		11,694,647		9/18/23		19,178
3 Month EURIBOR^a		Short		259		65,818,554		12/18/23		338,171
3 Month EURIBOR		Short		96		24,408,759		3/18/24		219,079
3 Month EURIBOR		Long		144		36,664,542		6/17/24		(284,785	)
3 Month EURIBOR^a		Short		122		31,063,015		6/17/24		95,316
3 Month EURIBOR		Long		74		18,873,787		9/16/24		(165,513	)
3 Month EURIBOR		Short		3		766,423		12/16/24		2,974
3 Month SOFR		Short		12		2,838,750		9/19/23		128
3 Month SOFR		Short		60		14,189,250		12/19/23		8,888
3 Month SOFR^a		Short		374		88,591,250		3/19/24		411,254
3 Month SOFR		Short		129		30,660,075		6/18/24		7,178
3 Month SOFR		Long		80		19,097,000		9/17/24		(87,077	)
3 Month SOFR^a		Short		153		36,523,013		9/17/24		100,153
3 Month SOFR		Short		40		9,588,500		12/17/24		37,813
3 Month SOFR		Long		33		7,949,700		6/17/25		(16,064	)
3 Month SOFR		Short		27		6,527,925		6/15/27		2,906
10 Yr. Mini JGB^a		Short		6		646,425		3/10/23		(763	)
30 Day Federal Funds		Long		6		2,378,315		4/28/23		116
30 Day Federal Funds		Short		36		14,234,639		5/31/23		15,305
30 Day Federal Funds		Short		93		36,687,560		7/31/23		56,003
30 Day Federal Funds		Short		30		11,825,321		8/31/23		13,183
30 Day Federal Funds		Short		42		16,555,449		10/31/23		28,258
30 Day Federal Funds		Short		10		3,947,191		1/31/24		9,108
90 Day Sterling^a		Short		31		8,907,724		9/17/24		38,344
ASX 90 Day Bank Accepted Bill		Short		25		16,641,139		9/07/23		1,193
ASX 90 Day Bank Accepted Bill		Long		25		16,643,981		3/07/24		(681	)
Australian 10 Yr. Bond^a		Short		74		5,858,846		3/15/23		89,068
Canadian 10 Yr. Bond^a		Short		68		6,053,969		6/21/23		(14,084	)
Euro-BOBL^a		Short		92		11,207,984		3/08/23		255,556
Euro-Bund^a		Short		49		6,888,368		3/08/23		218,351
Euro-Bund		Short		13		1,814,326		6/08/23		(7,914	)
Euro-Buxl		Long		3		426,084		3/08/23		2,196
Euro-SCHATZ^a		Short		309		34,310,546		3/08/23		247,259
Japanese 10 Yr. Bond		Short		16		17,233,300		3/13/23		(169,867	)
Japanese 10 Yr. Bond		Long		1		1,067,313		6/13/23		1,024
Korean 3 Yr. Bond		Long		219		17,061,561		3/21/23		(144,286	)
Korean 10 Yr. Bond		Long		51		4,231,853		3/21/23		(95,946	)
Long Gilt^a		Short		24		2,885,687		6/28/23		25,740
Long-Term Euro-BTP		Short		43		5,125,266		3/08/23		4,571
U.S. Treasury 2 Yr. Note		Long		10		2,037,266		6/30/23		(4,465	)
U.S. Treasury 2 Yr. Note^a		Short		197		40,134,133		6/30/23		36,203
U.S. Treasury 5 Yr. Note		Long		17		1,819,930		6/30/23		(4,276	)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Futures Contracts (continued)


Description	Type		Number of Contracts		Notional Amount^*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Interest Rate Contracts (continued)
U.S. Treasury 5 Yr. Note^a		Short		165	$	17,664,023		6/30/23	$	2,827
U.S. Treasury 10 Yr. Note^a		Short		97		10,830,656		6/21/23		(10,338	)
U.S. Treasury 10 Yr. Ultra		Short		113		13,242,187		6/21/23		(25,245	)
U.S. Treasury Long Bond^a		Short		39		4,883,531		6/21/23		15,162
U.S. Treasury Ultra Bond		Short		11		1,485,688		6/21/23		11,177

										1,276,255

Total Futures Contracts									$	1,717,456

*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 6.

At February 28, 2023, the Fund had the following forward exchange contracts outstanding.

Forward Exchange Contracts


Currency	Counterparty^a	Type	Quantity		Contract Amount^*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts
Singapore Dollar	JPHQ	Buy		68,790		52,473			3/01/23	$	–	$	(1,459	)
Indian Rupee	JPHQ	Buy		27,939,500		340,000			3/02/23		–		(2,026	)
Indian Rupee	JPHQ	Sell		27,935,666		340,000			3/02/23		2,071		–
South Korean Won	JPHQ	Buy		324,966,400		260,000			3/03/23		–		(14,388	)
South Korean Won	JPHQ	Sell		325,593,000		260,000			3/03/23		13,915		–
Taiwan Dollar	JPHQ	Buy		9,069,600		300,000			3/07/23		–		(2,094	)
Taiwan Dollar	JPHQ	Sell		8,940,780		300,000			3/07/23		6,325		–
Philippine Peso	JPHQ	Buy		22,579,600		410,000			3/08/23		–		(2,288	)
Philippine Peso	JPHQ	Sell		33,585,126		610,000			3/08/23		3,566		–
Brazilian Real	MSCO	Buy		7,058,370		1,296,946			3/09/23		48,754		–
Brazilian Real	MSCO	Sell		7,058,370		1,331,266			3/09/23		–		(14,434	)
Euro	JPHQ	Buy		200,000		212,288			3/09/23		–		(626	)
Indonesian Rupiah	JPHQ	Buy		3,045,446,000		200,000			3/09/23		–		(362	)
Indonesian Rupiah	JPHQ	Sell		3,031,740,000		200,000			3/09/23		1,260		–
South Korean Won	JPHQ	Buy		658,523,740		520,000			3/10/23		–		(22,143	)
South Korean Won	JPHQ	Sell		671,690,100		520,000			3/10/23		12,190		–
South Korean Won	JPHQ	Buy		462,168,000		374,543			3/13/23		–		(25,093	)
South Korean Won	JPHQ	Sell		462,168,000		360,000			3/13/23		10,550		–
Singapore Dollar	JPHQ	Sell		660,269		720,000	AUD		3/15/23		5,059		(10,132	)
Japanese Yen	JPHQ	Sell		38,621,309		440,000	AUD		3/15/23		11,955		–
New Zealand Dollar	JPHQ	Sell		212,284		200,000	AUD		3/15/23		4,252		(852	)
Norwegian Krone	JPHQ	Sell		1,396,695		200,000	AUD		3/15/23		52		–
Australian Dollar	JPHQ	Buy		4,633,067		3,024,453			3/15/23		100,976		(6,006	)
Australian Dollar	JPHQ	Sell		4,956,252		3,260,171			3/15/23		11,567		(88,415	)
British Pound	BNYM	Buy		614,581		745,184			3/15/23		19		(5,739	)
British Pound	BNYM	Sell		1,511,001		1,844,892			3/15/23		26,853		–
British Pound	JPHQ	Buy		1,115,787		1,321,433			3/15/23		28,435		(7,351	)
British Pound	JPHQ	Sell		948,038		1,118,444			3/15/23		1,519		(23,754	)
Euro	JPHQ	Sell		100,000		736,131	CNY		3/15/23		155		–
Chinese Yuan	JPHQ	Buy		37,049,210		5,350,440			3/15/23		4,251		(18,393	)
Chinese Yuan	JPHQ	Sell		35,581,143		5,219,424			3/15/23		96,018		(1,442	)
Chinese Yuan	MSCO	Buy		35,711,640		5,215,000			3/15/23		256		(63,468	)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Forward Exchange Contracts (continued)


Currency	Counterparty^a	Type	Quantity		Contract Amount^*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Chinese Yuan	MSCO	Sell		66,784,465		9,672,821			3/15/23	$	44,256	$	(5,813	)
Euro	BNYM	Buy		2,290,281		2,460,395			3/15/23		517		(36,161	)
Euro	BNYM	Sell		7,638,489		8,160,922			3/15/23		74,558		(607	)
Chinese Yuan	JPHQ	Sell		744,753		100,000	EUR		3/15/23		1,756		(3,154	)
Euro	JPHQ	Buy		844,060		907,955			3/15/23		–		(14,338	)
Euro	JPHQ	Sell		1,844,074		1,986,438			3/15/23		34,607		(516	)
Euro	MSCO	Buy		2,200,000		2,387,590			3/15/23		–		(58,420	)
Euro	MSCO	Sell		2,252,764		2,403,775			3/15/23		18,743		–
Hong Kong Dollar	JPHQ	Buy		5,813,892		743,108			3/15/23		–		(1,852	)
Hong Kong Dollar	JPHQ	Sell		118,619,581		15,201,685			3/15/23		79,232		(1,224	)
Indian Rupee	JPHQ	Buy		26,325,782		319,220			3/15/23		912		(1,976	)
Indian Rupee	JPHQ	Sell		195,990,640		2,368,420			3/15/23		2,358		(2,549	)
Indonesian Rupiah	JPHQ	Buy		15,090,339,463		974,000			3/15/23		15,716		(710	)
Indonesian Rupiah	JPHQ	Sell		16,022,495,960		1,052,429			3/15/23		6,395		(4,065	)
Japanese Yen	BNYM	Sell		86,002,276		669,890			3/15/23		36,821		–
South Korean Won	JPHQ	Sell		576,614,800		60,000,000	JPY		3/15/23		15,742		(10,098	)
Australian Dollar	JPHQ	Sell		960,000		88,289,999	JPY		3/15/23		10,593		(7,048	)
Japanese Yen	JPHQ	Buy		447,273,794		3,397,260			3/15/23		–		(104,848	)
Japanese Yen	JPHQ	Sell		537,529,454		4,078,199			3/15/23		121,890		(483	)
Australian Dollar	JPHQ	Sell		200,000		210,795	NZD		3/15/23		–		(4,321	)
New Zealand Dollar	JPHQ	Buy		3,193,230		2,014,397			3/15/23		–		(39,970	)
New Zealand Dollar	JPHQ	Sell		3,020,000		1,907,581			3/15/23		40,640		(375	)
Australian Dollar	JPHQ	Sell		200,000		1,406,827	NOK		3/15/23		2,031		(1,107	)
Norwegian Krone	JPHQ	Buy		5,238,358		520,000			3/15/23		–		(40,980	)
Norwegian Krone	JPHQ	Sell		8,942,056		900,000			3/15/23		38,211		–
Philippine Peso	JPHQ	Buy		19,129,765		354,120			3/15/23		575		(9,447	)
Philippine Peso	JPHQ	Sell		24,087,060		422,120			3/15/23		317		(12,914	)
Australian Dollar	JPHQ	Sell		620,000		571,496	SGD		3/15/23		14,974		(8,432	)
Singapore Dollar	JPHQ	Buy		27,262,564		20,467,579			3/15/23		9,630		(251,477	)
Singapore Dollar	JPHQ	Sell		2,095,325		1,557,703			3/15/23		4,025		(816	)
Japanese Yen	JPHQ	Sell		38,000,000		364,576,800	KRW		3/15/23		10,928		(14,966	)
South Korean Won	JPHQ	Buy		12,944,980,663		10,009,691			3/15/23		430		(221,476	)
South Korean Won	JPHQ	Sell		23,563,465,296		19,013,222			3/15/23		1,195,167		–
Swedish Krona	JPHQ	Buy		160,000		15,315			3/15/23		–		(18	)
Swedish Krona	JPHQ	Sell		160,000		15,714			3/15/23		417		–
Swiss Franc	BNYM	Buy		431,164		470,755			3/15/23		–		(12,164	)
Swiss Franc	BNYM	Sell		1,181,829		1,282,973			3/15/23		25,965		–
Swiss Franc	JPHQ	Buy		920,000		999,305			3/15/23		–		(20,782	)
Taiwan Dollar	JPHQ	Buy		12,045,534		397,540			3/15/23		–		(1,513	)
Taiwan Dollar	JPHQ	Sell		20,938,961		691,540			3/15/23		4,210		(1,093	)
Thai Baht	JPHQ	Buy		13,532,962		396,084			3/15/23		–		(12,564	)
Thai Baht	JPHQ	Sell		8,662,743		249,600			3/15/23		5,817		(1,718	)
Philippine Peso	JPHQ	Buy		31,070,000		520,000			3/16/23		40,703		–
Philippine Peso	JPHQ	Sell		1,248,000		22,870			3/16/23		348		–
Australian Dollar^b	MSCO	Buy		17,189,000		11,981,427			3/17/23		975		(408,218	)
Australian Dollar^b	MSCO	Sell		18,039,000		12,399,157			3/17/23		255,951		(3,323	)
British Pound^b	MSCO	Buy		5,577,000		6,808,294			3/17/23		2,396		(100,176	)
British Pound^b	MSCO	Sell		9,232,000		11,345,045			3/17/23		237,651		(991	)
Canadian Dollar^b	MSCO	Buy		1,980,000		1,468,006			3/17/23		–		(16,691	)
Canadian Dollar^b	MSCO	Sell		18,336,000		13,559,263			3/17/23		119,214		–
Singapore Dollar	JPHQ	Sell		620,900		440,000	EUR		3/17/23		24,674		(19,443	)
Euro^b	MSCO	Buy		9,710,000		10,450,240			3/17/23		252		(169,072	)
Euro^b	MSCO	Sell		9,858,000		10,582,210			3/17/23		144,724		(642	)
Indian Rupee	JPHQ	Buy		61,309,000		740,000			3/17/23		847		–

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Forward Exchange Contracts (continued)


Currency	Counterparty^a	Type	Quantity		Contract Amount^*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Indian Rupee	JPHQ	Sell		54,953,600		660,000			3/17/23	$	2,117	$	(6,167	)
Japanese Yen^b	MSCO	Buy		1,121,760,000		8,671,432			3/17/23		–		(411,612	)
Japanese Yen^b	MSCO	Sell		1,121,760,000		8,583,106			3/17/23		323,287		–
Mexican Peso^b	MSCO	Buy		78,231,000		3,951,565			3/17/23		309,612		–
Mexican Peso^b	MSCO	Sell		937,000		49,043			3/17/23		–		(1,995	)
New Zealand Dollar^b	MSCO	Buy		8,332,000		5,295,346			3/17/23		–		(143,511	)
New Zealand Dollar^b	MSCO	Sell		10,890,000		6,926,202			3/17/23		194,864		(2,156	)
Euro	JPHQ	Sell		440,000		617,758	SGD		3/17/23		22,892		(30,454	)
Singapore Dollar	JPHQ	Buy		3,143		2,393			3/17/23		–		(61	)
Swiss Franc^b	MSCO	Buy		4,274,000		4,665,658			3/17/23		–		(118,711	)
Swiss Franc^b	MSCO	Sell		10,912,000		11,887,220			3/17/23		278,361		(4	)
Taiwan Dollar	JPHQ	Sell		6,060,380		200,000			3/17/23		703		–
Australian Dollar	BZWS	Buy		4,206,000		2,859,868			3/20/23		512		(27,946	)
Australian Dollar	BZWS	Sell		12,299,000		8,398,470			3/20/23		128,453		(12,461	)
British Pound	BZWS	Buy		6,765,000		8,263,281			3/20/23		–		(122,832	)
British Pound	BZWS	Sell		6,768,000		8,265,199			3/20/23		121,216		(76	)
Canadian Dollar	BZWS	Buy		3,546,000		2,613,152			3/20/23		–		(13,907	)
Canadian Dollar	BZWS	Sell		11,357,000		8,360,113			3/20/23		53,013		(17,666	)
Euro	BZWS	Buy		2,322,000		2,495,004			3/20/23		615		(36,506	)
Euro	BZWS	Sell		5,874,000		6,316,621			3/20/23		95,775		(18	)
New Zealand Dollar	BZWS	Sell		1,005,000		636,344			3/20/23		15,112		(180	)
Swiss Franc	BZWS	Buy		303,000		327,970			3/20/23		–		(5,508	)
Swiss Franc	BZWS	Sell		303,000		328,795			3/20/23		6,331		–
Indonesian Rupiah	JPHQ	Buy		1,526,100,000		100,000			3/21/23		–		(2	)
Indonesian Rupiah	JPHQ	Sell		6,081,170,000		400,000			3/21/23		1,531		–
Mexican Peso	BZWS	Sell		4,603,000		241,882			3/21/23		–		(8,639	)
Australian Dollar	BNYM	Sell		180,000		120,998			3/29/23		–		(262	)
Canadian Dollar	BNYM	Buy		655,000		485,746			3/29/23		–		(5,585	)
Canadian Dollar	BNYM	Sell		1,764,000		1,293,217			3/29/23		81		–
Euro	BNYM	Buy		1,610,000		1,723,658			3/29/23		–		(17,607	)
Euro	BNYM	Sell		3,686,000		3,940,341			3/29/23		34,438		–
Hong Kong Dollar	BNYM	Sell		9,897,000		1,271,468			3/29/23		8,712		–
Singapore Dollar	JPHQ	Buy		183,706		138,000			3/29/23		–		(1,660	)
Singapore Dollar	JPHQ	Sell		183,537		138,000			3/29/23		1,786		–
Canadian Dollar	BNYM	Sell		5,080,000		3,733,218			3/31/23		9,142		–
Euro	BNYM	Sell		665,000		710,486			3/31/23		5,729		–
Euro	JPHQ	Buy		1,620,000		1,695,002			3/31/23		23,367		(1,516	)
Euro	JPHQ	Sell		2,700,000		3,016,296			3/31/23		154,876		–
Indonesian Rupiah	JPHQ	Buy		3,502,900,000		230,000			3/31/23		–		(553	)
Japanese Yen	BNYM	Sell		42,000,000		322,081			3/31/23		12,180		–
Taiwan Dollar	JPHQ	Buy		13,994,272		460,000			3/31/23		948		–
Indian Rupee	JPHQ	Sell		16,583,340		200,000			4/03/23		–		(153	)
Taiwan Dollar	JPHQ	Sell		7,330,152		240,000			4/06/23		–		(1,572	)
Colombian Peso	MSCS	Sell		424,857,000		84,734			4/11/23		–		(1,942	)
Hong Kong Dollar	JPHQ	Buy		18,981,837		2,425,298			4/11/23		–		(2,210	)
Hong Kong Dollar	JPHQ	Sell		18,981,837		2,424,702			4/11/23		1,614		–
Kazakhstan Tenge	HSBC	Buy		359,670,000		760,000			4/17/23		37,530		–
Kazakhstan Tenge	JPHQ	Sell		359,670,000		792,225			4/17/23		–		(5,305	)
Taiwan Dollar	JPHQ	Sell		24,071,798		800,000			4/17/23		5,914		–
Philippine Peso	JPHQ	Buy		55,330,000		1,000,000			4/18/23		–		(2,906	)
Philippine Peso	JPHQ	Sell		54,919,000		1,000,000			4/18/23		10,312		–
Singapore Dollar	JPHQ	Buy		24,002,171		17,564,758			4/18/23		273,088		(15,008	)
Singapore Dollar	JPHQ	Sell		24,002,170		16,805,587			4/18/23		2,133		(1,019,387	)
Chilean Peso	JPHQ	Buy		3,346,696,158		3,964,059			4/19/23		52,743		–
Chilean Peso	JPHQ	Sell		5,146,091,040		6,250,000			4/19/23		77,169		(3,657	)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Forward Exchange Contracts (continued)


Currency	Counterparty^a		Type		Quantity		Contract Amount^*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Colombian Peso		JPHQ		Buy		14,600,938,332		2,966,675			4/19/23	$	37,013	$	(29,595	)
Colombian Peso		JPHQ		Sell		29,433,664,556		6,100,637			4/19/23		105,235		–
Czech Koruna		JPHQ		Sell		20,385,847		840,155	EUR		4/19/23		–		(23,669	)
Polish Zloty		JPHQ		Sell		23,726,997		5,003,162	EUR		4/19/23		100,691		(107,575	)
Hungarian Forint		JPHQ		Sell		2,144,913,424		5,410,000	EUR		4/19/23		–		(157,158	)
Euro		JPHQ		Buy		5,819,523		6,359,919			4/19/23		–		(186,015	)
Euro		JPHQ		Sell		1,880,589		2,045,885			4/19/23		50,778		–
Euro		JPHQ		Sell		5,130,325		2,116,156,640	HUF		4/19/23		374,808		–
Indian Rupee		JPHQ		Buy		314,338,810		3,790,000			4/19/23		–		(1,752	)
Indonesian Rupiah		JPHQ		Buy		147,049,472,180		9,675,776			4/19/23		64,329		(113,806	)
Indonesian Rupiah		JPHQ		Sell		147,996,710,000		9,730,000			4/19/23		41,692		–
Malaysian Ringgit		BNPP		Buy		13,150,585		2,990,000			4/19/23		–		(50,247	)
Malaysian Ringgit		HSBC		Buy		6,517,350		1,500,000			4/19/23		–		(43,076	)
Malaysian Ringgit		JPHQ		Sell		9,756,285		2,310,000			4/19/23		129,027		–
Mexican Peso		JPHQ		Buy		126,585,693		6,636,778			4/19/23		214,764		–
Mexican Peso		JPHQ		Sell		186,914,705		9,900,000			4/19/23		–		(216,893	)
New Israeli Shekel		JPHQ		Buy		8,079,637		2,240,000			4/19/23		–		(24,530	)
Euro		JPHQ		Sell		5,219,023		56,142,264	NOK		4/19/23		125,361		(241,739	)
Peruvian Nuevo Sol		JPHQ		Buy		9,047,897		2,350,000			4/19/23		25,839		–
Peruvian Nuevo Sol		JPHQ		Sell		14,058,509		3,635,353			4/19/23		–		(56,195	)
Philippine Peso		JPHQ		Sell		204,740,410		3,684,635			4/19/23		–		(4,880	)
Euro		JPHQ		Sell		5,260,000		24,975,705	PLN		4/19/23		205,221		(191,111	)
Polish Zloty		JPHQ		Sell		2,071,115		471,433			4/19/23		7,515		–
Romanian Leu		JPHQ		Buy		596,447		128,773			4/19/23		–		(957	)
Romanian Leu		JPHQ		Sell		7,674,331		1,662,674			4/19/23		18,094		–
South African Rand		JPHQ		Buy		114,290,902		6,642,151			4/19/23		–		(445,852	)
South African Rand		JPHQ		Sell		193,263,441		11,324,235			4/19/23		846,427		–
South Korean Won		JPHQ		Sell		139,642,500		112,547			4/19/23		6,788		–
Euro		JPHQ		Sell		2,160,000		24,124,392	SEK		4/19/23		53,877		(34,517	)
Thai Baht		JPHQ		Buy		161,945,563		4,929,941			4/19/23		–		(324,683	)
Thai Baht		JPHQ		Sell		163,070,064		4,980,001			4/19/23		342,765		–
Taiwan Dollar		JPHQ		Sell		10,883,292		360,000			4/21/23		853		–
Euro		BOFA		Sell		370,000		405,341			4/28/23		12,615		–
Euro		BZWS		Sell		115,000		125,880			4/28/23		3,817		–
Brazilian Real		JPHQ		Buy		22,569,395		4,429,119			5/03/23		–		(167,817	)
Euro		BZWS		Sell		760,878		8,451,000	NOK		5/08/23		12,925		(4,305	)
South Korean Won		MSCO		Buy		835,469,420		650,255			5/10/23		–		(16,834	)
South Korean Won		MSCO		Sell		1,256,150,406		1,008,340			5/10/23		55,975		–
Philippine Peso		JPHQ		Buy		82,952,000		1,500,000			5/16/23		–		(6,114	)
Philippine Peso		JPHQ		Sell		27,650,000		500,000			5/16/23		2,050		–
Singapore Dollar		JPHQ		Buy		3,989,290		3,000,000			5/17/23		–		(34,949	)
Indian Rupee		JPHQ		Buy		161,092,500		2,001,516			5/22/23		–		(64,564	)
Indian Rupee		JPHQ		Sell		161,092,500		2,000,000			5/22/23		63,048		–
Singapore Dollar		JPHQ		Buy		4,008,785		3,000,000			5/22/23		–		(19,917	)
Australian Dollar		JPHQ		Buy		3,941,622		2,835,044			5/31/23		–		(174,108	)
Australian Dollar		JPHQ		Sell		3,941,622		2,833,749			5/31/23		172,813		–
British Pound		MSCO		Sell		500,000		601,818			5/31/23		–		(717	)
Danish Krone		MSCO		Sell		300,000		43,045			5/31/23		141		–
Euro		MSCO		Sell		2,050,000		2,195,427			5/31/23		15,372		–
Polish Zloty		MSCO		Sell		800,000		176,664			5/31/23		–		(2,054	)
Singapore Dollar		JPHQ		Buy		2,680,150		2,000,000			5/31/23		–		(6,938	)
Swedish Krona		MSCO		Buy		800,000		78,043			5/31/23		–		(1,249	)
British Pound		MSCO		Sell		715,000		887,421			6/16/23		25,474		–
Australian Dollar		JPHQ		Buy		50,000		34,051			6/21/23		–		(272	)
Hong Kong Dollar		JPHQ		Sell		15,602,860		2,000,000			6/21/23		4,058		–

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Forward Exchange Contracts (continued)


Currency	Counterparty^a		Type		Quantity		Contract Amount^*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Indian Rupee		JPHQ		Buy		1,030,423,626		12,360,000			6/21/23	$	11,618	$	(3,459	)
Indian Rupee		JPHQ		Sell		29,848,672		360,000			6/21/23		1,755		(28	)
Indonesian Rupiah		JPHQ		Buy		51,177,830,000		3,300,000			6/21/23		45,342		–
Indonesian Rupiah		JPHQ		Sell		51,177,830,000		3,307,481			6/21/23		146		(38,006	)
Japanese Yen		JPHQ		Buy		48,266,521		360,000			6/21/23		580		–
Philippine Peso		JPHQ		Sell		28,992,600		520,000			6/21/23		–		(1,631	)
South Korean Won		JPHQ		Sell		13,398,000,000		10,400,000			6/21/23		217,815		–
Singapore Dollar		JPHQ		Sell		19,472,424		14,400,000			7/10/23		–		(104,216	)
Japanese Yen		JPHQ		Buy		63,707,282		504,000			7/19/23		–		(25,883	)
Japanese Yen		JPHQ		Sell		63,661,750		504,000			7/19/23		26,225		–
Singapore Dollar		JPHQ		Buy		15,284,385		11,600,000			7/20/23		–		(210,619	)
Indian Rupee		JPHQ		Buy		16,552,400		200,000			8/01/23		–		(1,790	)
South Korean Won		JPHQ		Sell		35,226,000		3,600,000	JPY		8/16/23		706		(426	)
Philippine Peso		JPHQ		Buy		27,723,250		500,000			8/16/23		–		(1,988	)
Philippine Peso		JPHQ		Sell		83,167,000		1,500,000			8/16/23		6,013		–
Japanese Yen		JPHQ		Sell		3,600,000		35,215,200	KRW		8/16/23		839		(1,127	)
Singapore Dollar		JPHQ		Sell		3,975,690		3,000,000			8/17/23		34,058		–
Chinese Yuan		JPHQ		Buy		62,728,446		9,340,000			8/21/23		11,614		(209,365	)
Chinese Yuan		JPHQ		Sell		63,980,954		9,367,929			8/21/23		110,551		(67,414	)
Singapore Dollar		JPHQ		Sell		3,994,235		3,000,000			8/21/23		19,736		–
Singapore Dollar		JPHQ		Sell		2,671,000		2,000,000			8/31/23		6,245		–
Indian Rupee		JPHQ		Buy		8,370,750		100,000			9/20/23		–		(40	)
Indian Rupee		JPHQ		Sell		846,498,490		10,100,000			9/20/23		–		(8,495	)
Philippine Peso		JPHQ		Buy		114,810,000		2,000,000			9/20/23		60,643		–
Philippine Peso		JPHQ		Sell		83,580,000		1,500,000			9/20/23		–		(118	)
Taiwan Dollar		JPHQ		Buy		9,600,000		320,000			9/22/23		2,216		–
Singapore Dollar		JPHQ		Buy		19,360,000		14,334,001			9/25/23		187,678		(55,867	)
Singapore Dollar		JPHQ		Sell		19,360,001		13,763,575			9/25/23		2,210		(704,450	)
Indian Rupee		JPHQ		Buy		42,700,000		500,000			10/16/23		9,202		–
Indian Rupee		JPHQ		Sell		42,700,000		503,085			10/16/23		–		(6,116	)
Hong Kong Dollar		JPHQ		Buy		104,904,303		13,500,000			12/15/23		–		(40,169	)
Hong Kong Dollar		JPHQ		Sell		4,661,772		600,000			12/20/23		1,827		–
Chinese Yuan		JPHQ		Buy		40,875,298		6,000,000			12/21/23		9,503		–
Chinese Yuan		JPHQ		Sell		41,233,800		6,000,000			12/21/23		–		(62,209	)
Hong Kong Dollar		JPHQ		Buy		4,662,600		600,000			12/22/23		–		(1,704	)
Singapore Dollar		JPHQ		Buy		4,735,476		3,600,000			1/10/24		–		(46,327	)
Singapore Dollar		JPHQ		Sell		7,899,000		6,000,000			1/10/24		72,303		–
Singapore Dollar		JPHQ		Sell		15,197,979		11,600,000			1/22/24		189,371		–
Chinese Yuan		JPHQ		Sell		3,208,013		480,000			2/07/24		6,845		–
Chinese Yuan		JPHQ		Buy		19,856,510		3,000,000			3/15/24		–		(65,784	)
Chinese Yuan		JPHQ		Sell		20,367,298		3,000,000			3/15/24		–		(9,696	)
South Korean Won		JPHQ		Buy		21,128,562,000		17,400,000			3/15/24		–		(1,105,270	)
South Korean Won		JPHQ		Sell		10,172,000,000		8,000,000			3/15/24		155,169		–
South Korean Won		JPHQ		Buy		13,136,320,000		10,400,000			6/21/24		–		(269,032	)
Indian Rupee		JPHQ		Sell		16,941,400		200,000			8/01/24		–		(621	)
Philippine Peso		JPHQ		Buy		84,355,050		1,500,000			9/20/24		8,225		–
Philippine Peso		JPHQ		Sell		116,630,000		2,000,000			9/20/24		–		(85,285	)
Euro		JPHQ		Sell		2,900,000		3,396,074			3/31/25		232,000		–


Total Forward Exchange Contracts												$	9,851,122	$	(9,859,974)

Net unrealized appreciation (depreciation)														$	(8,852	)

*In U.S. dollars unless otherwise indicated.

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

^bA portion or all of the contracts are owned by K2 Holdings Investment Corp., a wholly-owned subsidiary of the Fund. See Note 6.

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

At February 28, 2023, the Fund had the following credit default swap contracts outstanding.

Credit Default Swap Contracts


Description	Annual Payment Rate Received (Paid)		Payment Frequency		Maturity Date		Notional Amount^a		Value		Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)		Rating^b
Centrally Cleared Swap Contracts
Contracts to Buy Protection^c
Single Name
Government of Indonesia		(1.00)%	Quarterly			12/20/27		300,000	$	(997)	$	8,400		$	(9,397)
Traded Index
CDX.NA.HY.39		(5.00)%	Quarterly			12/20/27		1,750,000		(25,576)		(23,151	)		(2,425)
CDX.NA.HY.CDSI		(1.00)%	Quarterly			12/20/27		600,000		(6,087)		2,257			(8,344)

Total Centrally Cleared Swap Contracts									$	(32,660)	$	(12,494	)	$	(20,166)

OTC Swap Contracts
Contracts to Buy Protectionc

Single Name				Counterparty

Air France-KLM		(5.00)%	Quarterly	CITI		12/20/27		27,000 EUR		(841)		2,775			(3,616)
Air France-KLM		(5.00)%	Quarterly	CITI		12/20/27		38,000 EUR		(1,183)		3,820			(5,003)
Air France-KLM		(5.00)%	Quarterly	CITI		12/20/27		70,000 EUR		(2,179)		5,082			(7,261)
Air France-KLM		(5.00)%	Quarterly	CITI		12/20/27		80,000 EUR		(19,177)		7,626			(26,803)
Air France-KLM		(5.00)%	Quarterly	CITI		12/20/27		132,0000 EUR		(4,110)		10,106			(14,216)
Air France-KLM		(5.00)%	Quarterly	JPHQ		6/20/24		200,000 EUR		(9,250)		3,394			(12,644)
Air France-KLM		(5.00)%	Quarterly	MSCO		6/20/24		100,000 EUR		(4,625)		2,187			(6,812)
Ally Financial Inc.		(5.00)%	Quarterly	BNPP		12/20/27		671,000		(77,664)		(48,657)			(29,007)
Ally Financial Inc.		(5.00)%	Quarterly	BNPP		12/20/27		213,000		(24,653)		(16,292)			(8,361)
Ally Financial Inc.		(5.00)%	Quarterly	BNPP		12/20/27		104,000		(12,037)		(8,614)			(3,423)
Ally Financial Inc.		(5.00)%	Quarterly	CITI		12/20/24		224,000		(16,491)		(9,896)			(6,595)
Ally Financial Inc.		(5.00)%	Quarterly	GSCO		12/20/27		274,000		(31,714)		(21,303)			(10,411)
Ally Financial Inc.		(5.00)%	Quarterly	GSCO		12/20/27		76,000		(8,796)		(6,467)			(2,329)
Ally Financial Inc.		(5.00)%	Quarterly	GSCO		12/20/27		81,000		(9,375)		(6,084)			(3,291)
Ally Financial Inc.		(5.00)%	Quarterly	GSCO		12/20/27		63,000		(7,292)		(5,717)			(1,575)
Ally Financial Inc.		(5.00)%	Quarterly	GSCO		12/20/27		66,000		(7,639)		(5,568)			(2,071)
Ally Financial Inc.		(5.00)%	Quarterly	MSCO		12/20/24		190,000		(13,988)		(8,349)			(5,639)
Altice France Holding SA		(5.00)%	Quarterly	BNPP		12/20/27		10,000 EUR		573		741			(168)
Altice France Holding SA		(5.00)%	Quarterly	JPHQ		12/20/27		7,000 EUR		401		642			(241)
Altice France Holding SA		(5.00)%	Quarterly	JPHQ		12/20/27		17,000 EUR		974		1,348			(374)
Altice France Holding SA		(5.00)%	Quarterly	JPHQ		12/20/27		17,000 EUR		974		1,464			(490)
Altice France Holding SA		(5.00)%	Quarterly	JPHQ		12/20/27		45,000 EUR		2,578		3,902			(1,324)
American Airlines Inc.		(5.00)%	Quarterly	BZWS		12/20/23		111,000		(2,675)		2,293			(4,968)
American Airlines Inc.		(5.00)%	Quarterly	BZWS		12/20/23		154,000		(3,711)		2,717			(6,428)
American Airlines Inc.		(5.00)%	Quarterly	BZWS		6/20/24		143,000		(1,730)		3,898			(5,628)
American Airlines Inc.		(5.00)%	Quarterly	BZWS		6/20/24		286,000		(3,460)		15,645			(19,105)
American Airlines Inc.		(5.00)%	Quarterly	BZWS		6/20/24		178,000		(2,153)		16,597			(18,750)
American Airlines Inc.		(5.00)%	Quarterly	BZWS		12/20/24		78,000		(88)		9,557			(9,645)
American Airlines Inc.		(5.00)%	Quarterly	BZWS		6/20/25		72,000		939		7,998			(7,059)
American Airlines Inc.		(5.00)%	Quarterly	BZWS		6/20/25		288,000		3,757		30,366			(26,609)
American Airlines Inc.		(5.00)%	Quarterly	GSCO		12/20/23		216,000		(5,206)		2,948			(8,154)
American Airlines Inc.		(5.00)%	Quarterly	GSCO		12/20/23		66,000		(1,591)		3,135			(4,726)
American Airlines Inc.		(5.00)%	Quarterly	GSCO		12/20/23		155,000		(3,736)		5,392			(9,128)
American Airlines Inc.		(5.00)%	Quarterly	GSCO		12/20/23		483,000		(11,640)		5,845			(17,485)
American Airlines Inc.		(5.00)%	Quarterly	GSCO		6/20/24		41,000		(496)		2,809			(3,305)
American Airlines Inc.		(5.00)%	Quarterly	GSCO		6/20/24		189,000		(2,286)		14,214			(16,500)
American Airlines Inc.		(5.00)%	Quarterly	GSCO		12/20/24		70,000		(79)		9,006			(9,085)
American Airlines Inc.		(5.00)%	Quarterly	GSCO		12/20/24		339,000		(383)		24,090			(24,473)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Credit Default Swap Contracts (continued)


Description	Annual Payment Rate Received (Paid)		Payment Frequency	Counterparty	Maturity Date		Notional Amount^a		Value		Upfront Payments (Receipts)		Unrealized Appreciation (Depreciation)		Rating^b
OTC Swap Contracts (continued)
Contracts to Buy Protection^c(continued)
Single Name (continued)
American Axle &
Manufacturing Inc.		(5.00)%	Quarterly	JPHQ		6/20/25		66,000	$	(3,126)	$	(2,713)	$	(413)
American Axle &
Manufacturing Inc.		(5.00)%	Quarterly	JPHQ		6/20/27		134,000		(1,274)		(1,587)		313
American Axle &
Manufacturing Inc.		(5.00)%	Quarterly	MSCO		6/20/27		134,000		(1,274)		(2,052)		778
American Axle &
Manufacturing Inc.		(5.00)%	Quarterly	MSCO		6/20/27		62,000		(589)		613		(1,202)
American Axle &
Manufacturing Inc.		(5.00)%	Quarterly	MSCO		12/20/27		40,000		146		1,303		(1,157)
ArcelorMittal SA		(5.00)%	Quarterly	BOFA		12/20/27		127,000 EUR		(18,101)		(7,592)		(10,509)
ArcelorMittal SA		(5.00)%	Quarterly	JPHQ		12/20/27		254,000 EUR		(36,203)		(15,285)		(20,918)
ArcelorMittal SA		(5.00)%	Quarterly	JPHQ		12/20/27		63,000 EUR		(8,979)		(5,177)		(3,802)
ArcelorMittal SA		(5.00)%	Quarterly	JPHQ		12/20/27		63,000 EUR		(8,979)		(4,802)		(4,177)
ArcelorMittal SA		(5.00)%	Quarterly	JPHQ		12/20/27		63,000 EUR		(8,979)		(4,706)		(4,273)
BMW AG		(1.00)%	Quarterly	BZWS		12/20/27		286,000 EUR		(5,720)		3,512		(9,232)
BMW AG		(1.00)%	Quarterly	MSCO		12/20/27		281,000 EUR		(5,620)		2,748		(8,368)
Carnival Corp.		(1.00)%	Quarterly	BZWS		12/20/26		66,000		14,016		24,660		(10,644)
Carnival Corp.		(1.00)%	Quarterly	BZWS		12/20/26		66,000		14,016		24,962		(10,946)
Carnival Corp.		(1.00)%	Quarterly	BZWS		12/20/26		66,000		14,016		25,097		(11,081)
Carnival Corp.		(1.00)%	Quarterly	BZWS		12/20/26		132,000		28,031		43,466		(15,435)
Carnival Corp.		(1.00)%	Quarterly	BZWS		12/20/26		132,000		28,031		49,474		(21,443)
Carnival Corp.		(1.00)%	Quarterly	CITI		6/20/26		40,000		7,379		8,112		(733)
Carnival Corp.		(1.00)%	Quarterly	CITI		6/20/26		66,000		12,176		11,953		223
Carnival Corp.		(1.00)%	Quarterly	CITI		6/20/26		66,000		12,176		13,984		(1,808)
Carnival Corp.		(1.00)%	Quarterly	CITI		6/20/26		66,000		12,176		14,018		(1,842)
Carnival Corp.		(1.00)%	Quarterly	CITI		12/20/26		66,000		14,016		21,216		(7,200)
Carnival Corp.		(1.00)%	Quarterly	CITI		12/20/26		66,000		14,016		22,062		(8,046)
Ceconomy AG		(1.00)%	Quarterly	MSCO		6/20/23		12,000 EUR		81		589		(508)
Ceconomy AG		(1.00)%	Quarterly	MSCO		12/20/23		28,000 EUR		1,326		1,914		(588)
Ceconomy AG		(1.00)%	Quarterly	MSCO		12/20/23		26,000 EUR		1,231		2,276		(1,045)
Ceconomy AG		(1.00)%	Quarterly	MSCO		12/20/23		26,000 EUR		1,231		2,334		(1,103)
Ceconomy AG		(1.00)%	Quarterly	MSCO		12/20/23		26,000 EUR		1,231		2,414		(1,183)
Ceconomy AG		(1.00)%	Quarterly	MSCO		12/20/23		52,000 EUR		2,462		4,394		(1,932)
Ceconomy AG		(1.00)%	Quarterly	MSCO		6/20/24		75,000 EUR		7,085		8,377		(1,292)
Compagnie de Saint-Gobain SA		(1.00)%	Quarterly	CITI		12/20/27		511,000 EUR		(5,600)		11,354		(16,954)
Compagnie de Saint-Gobain SA		(1.00)%	Quarterly	MSCO		12/20/27		306,000 EUR		(3,353)		6,808		(10,161)
Daimler Truck Holding AG		(1.00)%	Quarterly	GSCO		12/20/27		287,000 EUR		(4,906)		4,129		(9,035)
Ford Motor Credit Co. LLC		(5.00)%	Quarterly	CITI		12/20/27		408,000		(40,215)		(22,490)		(17,725)
Ford Motor Credit Co. LLC		(5.00)%	Quarterly	GSCO		12/20/27		4,000		(394)		(237)		(157)
Ford Motor Credit Co. LLC		(5.00)%	Quarterly	MSCO		12/20/27		143,000		(14,095)		(10,682)		(3,413)
Ford Motor Credit Co. LLC		(5.00)%	Quarterly	MSCO		12/20/27		57,000		(5,618)		(2,237)		(3,381)
Government of Argentina		(5.00)%	Quarterly	BZWS		12/20/26		696,000		393,946		293,777		100,169
Government of Argentina		(5.00)%	Quarterly	CITI		12/20/26		200,000		113,203		120,584		(7,381)
Government of Argentina		(5.00)%	Quarterly	CITI		12/20/26		800,000		452,812		540,052		(87,240)
Government of Argentina		(5.00)%	Quarterly	GSCO		12/20/26		253,000		143,202		105,087		38,115
Government of Argentina		(5.00)%	Quarterly	GSCO		12/20/26		842,000		476,584		349,406		127,178
Government of Argentina		(5.00)%	Quarterly	GSCO		12/20/27		1,525,000		911,349		899,907		11,442
Government of Argentina		(5.00)%	Quarterly	JPHQ		12/20/26		253,000		143,202		104,988		38,214
Government of Egypt		(1.00)%	Quarterly	BZWS		6/20/24		695,000		73,350		37,223		36,127
Government of Egypt		(1.00)%	Quarterly	BZWS		6/20/24		520,000		54,880		42,147		12,733
Government of Egypt		(1.00)%	Quarterly	BZWS		6/20/24		610,000		64,379		79,654		(15,275)
Government of Egypt		(1.00)%	Quarterly	BZWS		12/20/24		1,120,000		164,803		119,898		44,905

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Credit Default Swap Contracts (continued)


Description	Annual Payment Rate Received (Paid)		Payment Frequency		Counterparty		Maturity Date		Notional Amount^a		Value		Upfront Payments (Receipts)		Unrealized Appreciation (Depreciation)		Rating^b
OTC Swap Contracts (continued)
Contracts to Buy Protection^c(continued)
Single Name (continued)
Government of Italy		(1.00)%		Quarterly		BOFA		6/20/24		132,000	$	(1,305)	$	812	$	(2,117)
Government of Italy		(1.00)%		Quarterly		JPHQ		6/20/24		218,000		(2,155)		624		(2,779)
Government of Japan		(1.00)%		Quarterly		BZWS		12/20/27		395,000		(13,555)		(12,423)		(1,132)
Government of Japan		(1.00)%		Quarterly		MSCO		12/20/27		264,000		(9,060)		(8,409)		(651)
Government of Japan		(1.00)%		Quarterly		BZWS		12/20/27		328,000		(11,256)		(9,708)		(1,548)
Government of Japan		(1.00)%		Quarterly		BZWS		12/20/27		264,000		(9,060)		(8,548)		(512)
Government of Japan		(1.00)%		Quarterly		BZWS		12/20/27		264,000		(9,060)		(8,351)		(709)
Government of Japan		(1.00)%		Quarterly		BZWS		12/20/27		263,000		(9,025)		(7,755)		(1,270)
Government of Japan		(1.00)%		Quarterly		BZWS		12/20/27		134,000		(4,599)		(3,943)		(656)
Government of Japan		(1.00)%		Quarterly		GSCO		12/20/27		460,000		(15,786)		(13,427)		(2,359)
Government of Japan		(1.00)%		Quarterly		GSCO		12/20/27		263,000		(9,025)		(7,762)		(1,263)
Government of Japan		(1.00)%		Quarterly		GSCO		12/20/27		198,000		(6,795)		(6,482)		(313)
Government of Japan		(1.00)%		Quarterly		GSCO		12/20/27		133,000		(4,564)		(3,887)		(677)
Government of Turkey		(1.00)%		Quarterly		BZWS		6/20/24		1,830,000		75,158		78,427		(3,269)
Government of Turkey		(1.00)%		Quarterly		BZWS		6/20/24		1,175,000		48,257		83,655		(35,398)
Government of Turkey		(1.00)%		Quarterly		BZWS		12/20/27		725,000		122,668		126,005		(3,337)
Government of Turkey		(1.00)%		Quarterly		CITI		6/20/24		500,000		20,535		35,737		(15,202)
Government of Turkey		(1.00)%		Quarterly		GSCO		6/20/24		1,300,000		53,391		98,573		(45,182)
Government of Turkey		(1.00)%		Quarterly		GSCO		6/20/24		1,570,000		64,480		125,158		(60,678)
Government of Turkey		(1.00)%		Quarterly		MLCO		12/20/27		604,000		102,195		102,566		(371)
Government of Turkey		(1.00)%		Quarterly		MLCO		12/20/27		846,000		143,141		143,661		(520)
HP Inc.		(1.00)%		Quarterly		GSCO		12/20/27		308,000		1,902		11,898		(9,996)
HP Inc		(1.00)%		Quarterly		JPHQ		12/20/27		335,000		2,069		11,172		(9,103)
Iceland Bondco		(5.00)%		Quarterly		GSCO		6/20/25		36,000 EUR		3,626		4,683		(1,057)
Iceland Bondco		(5.00)%		Quarterly		JPHQ		6/20/25		24,000 EUR		2,417		768		1,649
JFE Holdings Inc.		(1.00)%		Quarterly		BZWS		12/20/27		26,519,000 JPY		(3,965)		(1,775)		(2,190)
JFE Holdings Inc.		(1.00)%		Quarterly		CITI		12/20/27		29,389,000 JPY		(4,394)		(4,154)		(240)
JFE Holdings Inc.		(1.00)%		Quarterly		CITI		12/20/27		26,519,000 JPY		(3,965)		(3,786)		(179)
JFE Holdings Inc.		(1.00)%		Quarterly		CITI		12/20/27		14,729,000 JPY		(2,202)		(1,999)		(203)
JFE Holdings Inc.		(1.00)%		Quarterly		CITI		12/20/27		14,695,000 JPY		(2,197)		(1,988)		(209)
JFE Holdings Inc.		(1.00)%		Quarterly		GSCO		12/20/27		26,173,000 JPY		(3,913)		(3,533)		(380)
JFE Holdings Inc.		(1.00)%		Quarterly		GSCO		12/20/27		26,520,000 JPY		(3,965)		(3,398)		(567)
JFE Holdings Inc.		(1.00)%		Quarterly		GSCO		12/20/27		13,260,000 JPY		(1,983)		(1,238)		(745)
JFE Holdings Inc.		(1.00)%		Quarterly		GSCO		12/20/27		13,260,000 JPY		(1,983)		(973)		(1,010)
Kawasaki Heavy Industries Ltd.		(1.00)%		Quarterly		BZWS		12/20/27		26,354,000 JPY		(4,717)		(5,535)		818
Kawasaki Heavy Industries Ltd.		(1.00)%		Quarterly		BZWS		12/20/27		26,354,000 JPY		(4,717)		(3,844)		(873)
Kawasaki Heavy Industries Ltd.		(1.00)%		Quarterly		BZWS		12/20/27		13,177,000 JPY		(2,359)		(2,440)		81
Kawasaki Heavy Industries Ltd.		(1.00)%		Quarterly		BZWS		12/20/27		12,807,000 JPY		(2,292)		(2,314)		22
Kawasaki Heavy Industries Ltd.		(1.00)%		Quarterly		BZWS		12/20/27		13,177,000 JPY		(2,359)		(1,944)		(415)
Kawasaki Heavy Industries Ltd.		(1.00)%		Quarterly		BZWS		12/20/27		13,177,000 JPY		(2,359)		(1,524)		(835)
Kawasaki Heavy Industries Ltd.		(1.00)%		Quarterly		CITI		12/20/27		13,177,000 JPY		(2,359)		(2,791)		432
Kawasaki Heavy Industries Ltd.		(1.00)%		Quarterly		CITI		12/20/27		9,203,000 JPY		(1,647)		(1,984)		337
Kawasaki Heavy Industries Ltd.		(1.00)%		Quarterly		GSCO		12/20/27		13,177,000 JPY		(2,359)		(2,460)		101
Kawasaki Heavy Industries Ltd.		(1.00)%		Quarterly		GSCO		12/20/27		6,403,000 JPY		(1,146)		(1,330)		184
Kobe Steel Ltd.		(1.00)%		Quarterly		BZWS		12/20/27		7,114,000 JPY		221		95		126

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Credit Default Swap Contracts (continued)


Description	Annual Payment Rate Received (Paid)			Payment Frequency		Counterparty		Maturity Date		Notional Amount^a		Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Rating^b

OTC Swap Contracts (continued)

Contracts to Buy Protection^c(continued)

Single Name (continued)

Kobe Steel Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		6,980,000 JPY	$	217		$	384		$	(167	)
Kobe Steel Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		6,828,000 JPY		212			615			(403	)
Kobe Steel Ltd.		(1.00	)%		Quarterly		CITI		12/20/27		13,806,000JPY		430			737			(307	)
Kobe Steel Ltd.		(1.00	)%		Quarterly		CITI		12/20/27		13,623,000 JPY		424			949			(525	)
Kobe Steel Ltd.		(1.00	)%		Quarterly		CITI		12/20/27		13,656,000 JPY		425			972			(547	)
Kobe Steel Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		13,656,000 JPY		425			704			(279	)
Kobe Steel Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		13,623,000 JPY		424			853			(429	)
Kobe Steel Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		13,656,000 JPY		425			976			(551	)
Kobe Steel Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		13,822,000 JPY		1,080			1,080			–
Kobe Steel Ltd.		(1.00	)%		Quarterly		JPHQ		12/20/27		13,320,000 JPY		414			220			194
Kobe Steel Ltd.		(1.00	)%		Quarterly		JPHQ		12/20/27		13,854,000 JPY		431			336			95
Kohl's Corp.		(1.00	)%		Quarterly		GSCO		6/20/26		139,000		11,830			1,876			9,954
Lanxess AG		(1.00	)%		Quarterly		GSCO		12/20/27		149,000 EUR		1,494			9,909			(8,415	)
Lanxess AG		(1.00	)%		Quarterly		JPHQ		12/20/27		746,000 EUR		7,479			54,377			(46,898	)
Lloyds Bank		(1.00	)%		Quarterly		BZWS		12/20/27		207,000 EUR		2,470			11,676			(9,206	)
Lloyds Bank		(1.00	)%		Quarterly		CITI		12/20/27		72,000 EUR		859			3,236			(2,377	)
Lloyds Bank		(1.00	)%		Quarterly		CITI		12/20/27		490,000 EUR		5,846			21,343			(15,497	)
Lloyds Bank		(1.00	)%		Quarterly		JPHQ		12/20/27		69,000 EUR		823			4,930			(4,107	)
Macy's Retail Holdings LLC.		(1.00	)%		Quarterly		GSCO		12/20/27		66,000		6,969			8,719			(1,750	)
Macy's Retail Holdings LLC.		(1.00	)%		Quarterly		GSCO		12/20/27		132,000		13,937			15,536			(1,599	)
Macy's Retail Holdings LLC.		(1.00	)%		Quarterly		JPHQ		12/20/27		40,000		4,223			3,959			264
Macy's Retail Holdings LLC.		(1.00	)%		Quarterly		JPHQ		12/20/27		93,000		9,819			9,221			598
Macy's Retail Holdings LLC.		(1.00	)%		Quarterly		JPHQ		12/20/27		132,000		13,937			11,746			2,191
Marubeni Corp.		(1.00	)%		Quarterly		BZWS		6/20/28		70,000,000 JPY		(16,875	)		(17,676	)		801
MetLife Inc.		(1.00	)%		Quarterly		BZWS		12/20/27		364,000		(4,289	)		(2,775	)		(1,514	)
Mitsui O.S.K. Lines Ltd		(1.00	)%		Quarterly		BZWS		12/20/27		14,060,000 JPY		(1,155	)		(711	)		(444	)
Mitsui O.S.K. Lines Ltd		(1.00	)%		Quarterly		GSCO		12/20/27		13,257,000 JPY		(1,089	)		(923	)		(166	)
Mitsui O.S.K. Lines Ltd		(1.00	)%		Quarterly		GSCO		12/20/27		13,318,000 JPY		(1,094	)		(468	)		(626	)
Mitsui O.S.K. Lines Ltd		(1.00	)%		Quarterly		GSCO		12/20/27		6,585,000 JPY		(541	)		(352	)		(189	)
Mitsui O.S.K. Lines Ltd		(1.00	)%		Quarterly		GSCO		12/20/27		13,170,000 JPY		(1,082	)		(126	)		(956	)
Mitsui O.S.K. Lines Ltd		(1.00	)%		Quarterly		GSCO		12/20/27		13,170,000 JPY		(1,082	)		–			(1,082	)
Mitsui O.S.K. Lines Ltd		(1.00	)%		Quarterly		GSCO		12/20/27		6,585,000 JPY		(541	)		103			(644	)
Mitsui O.S.K. Lines Ltd		(1.00	)%		Quarterly		GSCO		12/20/27		13,170,000 JPY		(1,082	)		208			(1,290	)
Mitsui O.S.K. Lines Ltd		(1.00	)%		Quarterly		JPHQ		12/20/27		13,170,000 JPY		(1,082	)		(793	)		(289	)
Mitsui O.S.K. Lines Ltd		(1.00	)%		Quarterly		JPHQ		12/20/27		12,515,000 JPY		(1,028	)		(407	)		(621	)
Mitsui O.S.K. Lines Ltd		(1.00	)%		Quarterly		JPHQ		12/20/27		13,350,000 JPY		(1,097	)		(243	)		(854	)
Mitsui O.S.K. Lines Ltd		(1.00	)%		Quarterly		JPHQ		12/20/27		6,629,000 JPY		(545	)		(228	)		(317	)
Next PLC		(1.00	)%		Quarterly		BZWS		12/20/27		43,000 EUR		870			2,876			(2,006	)
Next PLC		(1.00	)%		Quarterly		CITI		12/20/27		362,000 EUR		7,321			24,209			(16,888	)
Next PLC		(1.00	)%		Quarterly		GSCO		12/20/27		144,000 EUR		2,912			9,682			(6,770	)
Nippon Paper Industries Co. Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		3,565,000 JPY		2,161			1,556			605
Nippon Paper Industries Co. Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		28,523,000 JPY		17,290			10,124			7,166
Nippon Paper Industries Co. Ltd.		(1.00	)%		Quarterly		CITI		12/20/27		14,262,000 JPY		8,645			5,288			3,357
Nippon Paper Industries Co. Ltd.		(1.00	)%		Quarterly		JPHQ		12/20/27		14,262,000 JPY		8,645			6,503			2,142
Nippon Steel Corp.		(1.00	)%		Quarterly		BZWS		12/20/27		27,932,000 JPY		(4,396	)		(3,981	)		(415	)
Nippon Steel Corp.		(1.00	)%		Quarterly		BZWS		12/20/27		33,149,000 JPY		(5,217	)		(3,289	)		(1,928	)
Nippon Steel Corp.		(1.00	)%		Quarterly		BZWS		12/20/27		13,260,000 JPY		(2,087	)		(1,542	)		(545	)
Nippon Steel Corp.		(1.00	)%		Quarterly		BZWS		12/20/27		8,016,000 JPY		(1,261	)		(1,232	)		(29	)
Nippon Steel Corp.		(1.00	)%		Quarterly		BZWS		12/20/27		6,265,000 JPY		(986	)		(976	)		(10	)
Nippon Steel Corp.		(1.00	)%		Quarterly		CITI		12/20/27		11,820,000 JPY		(1,860	)		(1,728	)		(132	)
Nippon Steel Corp.		(1.00	)%		Quarterly		GSCO		12/20/27		13,260,000 JPY		(2,087	)		(2,155	)		68

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Credit Default Swap Contracts (continued)


Description	Annual Payment Rate Received (Paid)			Payment Frequency		Counterparty		Maturity Date		Notional Amount^a		Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Rating^b


OTC Swap Contracts (continued)

Contracts to Buy Protection^c(continued)

Single Name (continued)
Nippon Steel Corp.		(1.00	)%		Quarterly		GSCO		12/20/27		6,983,000 JPY	$	(1,099	)	$	(1,030	)	$	(69	)
Nippon Steel Corp.		(1.00	)%		Quarterly		JPHQ		12/20/27		27,112,000 JPY		(4,267	)		(4,004	)		(263	)
Nippon Steel Corp.		(1.00	)%		Quarterly		JPHQ		12/20/27		10,243,000 JPY		(1,612	)		(1,574	)		(38	)
Nippon Steel Corp.		(1.00	)%		Quarterly		MSCO		12/20/27		26,520,000 JPY		(4,173	)		(3,866	)		(307	)
Rakuten Group Inc.		(1.00	)%		Quarterly		BZWS		12/20/24		12,659,000 JPY		5,430			1,764			3,666
Rakuten Group Inc.		(1.00	)%		Quarterly		JPHQ		12/20/24		14,292,000 JPY		6,131			3,231			2,900
Rakuten Group Inc.		(1.00	)%		Quarterly		JPHQ		6/20/27		473,000 JPY		492			250			242
Rakuten Group Inc.		(1.00	)%		Quarterly		JPHQ		6/20/27		3,263,000 JPY		3,397			2,241			1,156
Rakuten Group Inc.		(1.00	)%		Quarterly		JPHQ		6/20/27		7,070,000 JPY		7,360			4,994			2,366
Rakuten Group Inc.		(1.00	)%		Quarterly		JPHQ		12/20/27		7,202,000 JPY		8,292			5,707			2,585
Simon Property Group LP		(1.00	)%		Quarterly		BNPP		12/20/27		271,000		(2,096	)		3,989			(6,085	)
Simon Property Group LP		(1.00	)%		Quarterly		BZWS		12/20/27		478,000		(3,697	)		7,820			(11,517	)
Societe Generale SA		(1.00	)%		Quarterly		BZWS		12/20/23		700,000 EUR		(5,337	)		2,563			(7,900	)
Softbank Group Corp.		(1.00	)%		Quarterly		BZWS		6/20/27		3,561,000 JPY		1,850			3,324			(1,474	)
Softbank Group Corp.		(1.00	)%		Quarterly		BZWS		6/20/27		6,111,000 JPY		3,175			5,410			(2,235	)
Softbank Group Corp.		(1.00	)%		Quarterly		BZWS		6/20/27		30,569,000 JPY		15,883			27,209			(11,326	)
Stellantis NV		(5.00	)%		Quarterly		BZWS		12/20/27		73,000 EUR		(12,466	)		(7,313	)		(5,153	)
Stellantis NV		(5.00	)%		Quarterly		CITI		12/20/27		292,000 EUR		(49,863	)		(29,188	)		(20,675	)
Stellantis NV		(5.00	)%		Quarterly		CITI		12/20/27		72,000 EUR		(12,295	)		(7,990	)		(4,305	)
Stena AB		(5.00	)%		Quarterly		BZWS		6/20/24		71,000 EUR		(3,274	)		(1,400	)		(1,874	)
Stena AB		(5.00	)%		Quarterly		GSCO		6/20/24		15,000 EUR		(692	)		104			(796	)
Stena AB		(5.00	)%		Quarterly		GSCO		6/20/24		22,000 EUR		(1,015	)		153			(1,168	)
Stena AB		(5.00	)%		Quarterly		GSCO		12/20/24		273,000 EUR		(15,009	)		(10,117	)		(4,892	)
Stena AB		(5.00	)%		Quarterly		GSCO		6/20/27		14,000 EUR		(513	)		(26	)		(487	)
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		29,000 EUR		(1,062	)		263			(1,325	)
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		29,000 EUR		(1,062	)		316			(1,378	)
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		28,000 EUR		(1,025	)		590			(1,615	)
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		142,000 EUR		(5,200	)		796			(5,996	)
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		157,000 EUR		(5,749	)		1,141			(6,890	)
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		71,000 EUR		(2,600	)		4,213			(6,813	)
TDC A/S		(1.00	)%		Quarterly		BNPP		6/20/27		212,000 EUR		(1,199	)		10,402			(11,601	)
U.S. Steel Corp.		(5.00	)%		Quarterly		BZWS		12/20/27		132,000		(7,591	)		(3,716	)		(3,875	)
U.S. Steel Corp.		(5.00	)%		Quarterly		BZWS		12/20/27		53,000		(3,048	)		(291	)		(2,757	)
U.S. Steel Corp.		(5.00	)%		Quarterly		BZWS		12/20/27		26,000		(1,495	)		38			(1,533	)
U.S. Steel Corp.		(5.00	)%		Quarterly		BZWS		12/20/27		26,000		(1,495	)		1,061			(2,556	)
U.S. Steel Corp.		(5.00	)%		Quarterly		BZWS		12/20/27		66,000		(3,795	)		3,100			(6,895	)
U.S. Steel Corp.		(5.00	)%		Quarterly		GSCO		12/20/27		66,000		(3,795	)		1,281			(5,076	)
U.S. Steel Corp.		(5.00	)%		Quarterly		MSCO		12/20/27		39,000		(2,243	)		558			(2,801	)
U.S. Steel Corp.		(5.00	)%		Quarterly		MSCO		12/20/27		66,000		(3,795	)		828			(4,623	)
U.S. Steel Corp.		(5.00	)%		Quarterly		MSCO		12/20/27		66,000		(3,795	)		934			(4,729	)
U.S. Steel Corp.		(5.00	)%		Quarterly		MSCO		12/20/27		66,000		(3,795	)		3,089			(6,884	)
U.S. Steel Corp.		(5.00	)%		Quarterly		MSCO		12/20/27		66,000		(3,795	)		3,336			(7,131	)
U.S. Steel Corp.		(5.00	)%		Quarterly		MSCO		12/20/27		131,000		(7,533	)		3,950			(11,483	)
Unibail-Rodamco-Westfield SE		(1.00	)%		Quarterly		BNPP		12/20/27		152,000 EUR		5,635			5,532			103
Unibail-Rodamco-Westfield SE		(1.00	)%		Quarterly		GSCO		12/20/27		284,000 EUR		10,528			15,028			(4,500	)
UniCredit SpA		(1.00	)%		Quarterly		JPHQ		12/20/27		112,000 EUR		5,772			7,517			(1,745	)
UniCredit SpA		(1.00	)%		Quarterly		JPHQ		12/20/27		157,000 EUR		8,091			10,117			(2,026	)
UniCredit SpA		(1.00	)%		Quarterly		JPHQ		12/20/27		329,000 EUR		16,955			33,718			(16,763	)

Contracts to Sell Protection^c,d

Single Name

American Axle & Manufacturing Inc.		5.00	%		Quarterly		CITI		6/20/25		66,000		3,126			2,708			418 BB-

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Credit Default Swap Contracts (continued)


Description	Annual Payment Rate Received (Paid)			Payment Frequency		Counterparty		Maturity Date		Notional Amount^a		Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Rating^b

OTC Swap Contracts (continued)

Contracts to Sell Protection^c,d(continued)

Single Name (continued)
Calpine Corp.		5.00	%		Quarterly		JPHQ		12/20/27		12,000	$	536		$	(110	)	$	646			BB-
Calpine Corp.		5.00	%		Quarterly		JPHQ		12/20/27		240,000		10,721			866			9,855			BB-
Kohl's Corp.		1.00	%		Quarterly		BOFA		6/20/26		141,000		(12,000	)		(8,418	)		(3,582	)		BB+
Nordstrom Inc.		1.00	%		Quarterly		GSCO		12/20/27		132,000		(19,191	)		(23,308	)		4,117			BB+
Nordstrom Inc.		1.00	%		Quarterly		GSCO		12/20/27		66,000		(9,595	)		(11,992	)		2,397			BB+

Total OTC Swap Contracts												$	3,176,478		$	3,922,807		$	(746,329)

Total Credit Default Swap Contracts												$	3,143,818		$	3,910,313		$	(766,495	)

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.

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

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.

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

At February 28, 2023, the Fund had the following cross-currency swap contracts outstanding.

Cross-Currency Swap Contracts

Description

Payment

Frequency

Counterparty

Maturity
Date

Notional
Amount^a

Value/Unrealized
Appreciation
(Depreciation)

OTC Swap Contracts

Receive Floating rate Overnight SOFR

Semi-Annually

GSCO

12/06/23

4,134,480

4,671

Pay Floating rate Overnight SIBCSORA - 0.18%

5,600,000

SGD

Receive Floating rate MUTSCALM + 0.74%

Quarterly

JPHQ

6/21/28

130,000,000

JPY

(632)

Pay Floating rate Overnight SOFR

984,848

Receive Floating rate 3-Month-KDR - 0.25%

Semi-Annually

BNPP

7/17/28

1,113,867,000

KRW

5,223

Pay Floating rate Overnight SOFR

900,000

Receive Fixed 2.85%

Quarterly

BNPP

7/19/26

886,060,000

KRW

(5,958)

Pay Floating rate Overnight SOFR

720,000

Receive Fixed 2.85%

Quarterly

BNPP

7/20/26

886,900,000

KRW

(5,955)

Pay Floating rate Overnight SOFR

720,000

Receive Fixed 2.64%

Quarterly

BNPP

7/17/28

820,000,000

KRW

(16,578)

Pay Floating rate Overnight SOFR

670,647

Total Cross-Currency Swap Contracts

(19,229)

^aIn U.S. dollars unless otherwise indicated.

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

At February 28, 2023, the Fund had the following interest rate swap contracts outstanding.

Interest Rate Swap Contracts

Description

Payment
Frequency

Maturity
Date

Notional

Amount^*

Value/Unrealized
Appreciation
(Depreciation)

Centrally Cleared Swap Contracts

Receive Fixed 5.88%

Pay Floating MIBOR

Annually

3/13/23

340,000,000

INR

(2,138)

Receive Floating MIBOR

Pay Fixed rate 5.88%

Annually

3/13/23

340,000,000

INR

(2,258)

Receive Fixed 6.03%

Pay Floating MIBOR

Annually

3/14/23

340,000,000

INR

1,996

Receive Floating MIBOR

Pay Fixed rate 6.03%

Annually

3/14/23

204,000,000

INR

(1,387)

Receive Floating MIBOR

Pay Fixed rate 6.64%

Annually

3/14/23

136,000,000

INR

(1,599)

Receive Fixed 1.81%

Pay Floating rate China 7-Day Repo

Quarterly

3/15/23

60,000,000

CNY

(12,799)

Receive Fixed 3.51%

Pay Floating 3-Month-KDR

Quarterly

3/21/23

10,200,000,000

KRW

(2,507)

Receive Federal Funds Rate

Pay Fixed rate 4.61%

Annually

3/22/23

37,200,000

(1,002)

Receive Fixed 3.54%

Pay Floating AONIA

Annually

4/05/23

95,000,000

AUD

533

Receive Floating AONIA

Pay Fixed rate 3.57%

Annually

4/05/23

230,400,000

AUD

(4,849)

Receive Fixed 2.86%

Pay Floating rate Euro STR

Annually

5/10/23

22,418,000

EUR

(1,828)

Receive Fixed 4.92%

Pay Floating MIBOR

Annually

5/10/23

384,000,000

INR

4,705

Receive Fixed 6.10%

Pay Floating MIBOR

Annually

5/10/23

372,000,000

INR

3,688

Receive Floating MIBOR

Pay Fixed rate 6.60%

Annually

5/10/23

581,800,000

INR

547

Receive Fixed 1.82%

Pay Floating rate China 7-Day Repo

Quarterly

6/15/23

60,000,000

CNY

(24,741)

Receive Fixed 1.91%

Pay Floating rate China 7-Day Repo

Quarterly

6/15/23

46,000,000

CNY

(9,285)

Receive Fixed 1.91%

Pay Floating rate China 7-Day Repo

Quarterly

6/15/23

29,000,000

CNY

(6,093)

Receive Fixed 1.96%

Pay Floating CNRR007 Index

Quarterly

6/15/23

54,000,000

CNY

(16,906)

Receive Fixed 2.06%

Pay Floating rate China 7-Day Repo

Quarterly

6/15/23

46,000,000

CNY

(9,023)

Receive Fixed 2.06%

Pay Floating rate China 7-Day Repo

Quarterly

6/15/23

29,200,000

CNY

(6,254)

Receive Fixed 2.11%

Pay Floating rate China 7-Day Repo

Quarterly

6/15/23

50,000,000

CNY

(10,190)

Receive Fixed 2.19%

Pay Floating CNRR007 Index

Quarterly

6/15/23

88,000,000

CNY

(13,221)

Receive Fixed 2.20%

Pay Floating rate China 7-Day Repo

Quarterly

6/15/23

31,000,000

CNY

(4,270)

Receive Floating rate China 7-Day Repo

Pay Fixed rate 2.19%

Quarterly

6/15/23

38,220,000

CNY

16,579

Receive Fixed 2.15%

Pay Floating rate China 7-Day Repo

Quarterly

6/21/23

48,000,000

CNY

(8,883)

Receive Fixed 3.11%

Pay Floating rate Euro STR

Annually

6/21/23

40,000,000

EUR

(8,191)

Receive Floating rate Euro STR

Pay Fixed rate 3.14%

Annually

6/21/23

26,688,000

EUR

4,405

Receive Floating rate Euro STR

Pay Fixed rate 3.14%

Annually

6/21/23

40,000,000

EUR

6,553

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Description

Payment
Frequency

Maturity
Date

Notional

Amount^*

Value/Unrealized
Appreciation
(Depreciation)

Centrally Cleared Swap Contracts (continued)

Receive Fixed 4.06%

Pay Floating AONIA

Annually

7/05/23

95,400,000

AUD

(462)

Receive Fixed 4.08%

Pay Floating AONIA

Annually

7/05/23

57,000,000

AUD

377

Receive Fixed 3.71%

Pay Floating 3-Month-KDR

Quarterly

9/15/23

5,214,000,000

KRW

(3,406)

Receive Fixed 4.16%

Pay Floating 3-Month-KDR

Quarterly

10/26/23

8,210,000,000

KRW

8,925

Receive Floating 3-Month-KDR

Pay Fixed rate 3.84%

Quarterly

10/26/23

8,210,000,000

KRW

3,611

Receive Fixed 4.86%

Pay Floating rate Overnight SOFR

Annually

12/15/23

9,600,000

(31,649)

Receive Fixed 4.90%

Pay Floating rate Overnight SOFR

Annually

12/15/23

4,100,000

(12,613)

Receive Floating rate 3-Month-HIBOR

Pay Fixed rate 4.41%

Quarterly

12/15/23

32,000,000

HKD

4,123

Receive Floating rate 3-Month-HIBOR

Pay Fixed rate 4.50%

Quarterly

12/15/23

75,000,000

HKD

4,829

Receive Fixed 2.96%

Pay Floating rate 3-Month-BKBM

Quarterly

12/21/23

10,802,700

NZD

2,658

Receive Fixed 3.88%

Pay Floating 3-Month-KDR

Quarterly

12/21/23

4,000,000,000

KRW

(2,755)

Receive Fixed 3.76%

Pay Floating rate Overnight SIBCSORA

Semi-Annually

2/15/24

5,480,000

SGD

(4,641)

Receive Floating rate 1 Year-SOFR

Pay Fixed rate 1.36%

Annually

3/08/24

4,000,000

198,498

Receive Fixed 2.31%

Pay Floating rate China 7-Day Repo

Quarterly

3/15/24

14,200,000

CNY

(2,631)

Receive Fixed 2.38%

Pay Floating rate China 7-Day Repo

Quarterly

3/15/24

14,000,000

CNY

(1,258)

Receive Fixed 4.77%

Pay Floating rate Overnight SOFR

Annually

3/15/24

2,000,000

(11,263)

Receive Fixed 4.78%

Pay Floating rate Overnight SOFR

Annually

3/15/24

1,660,000

(9,285)

Receive Fixed 4.78%

Pay Floating rate Overnight SOFR

Annually

3/15/24

6,200,000

(35,171)

Receive Fixed 6.66%

Pay Floating MIBOR

Annually

3/15/24

270,000,000

INR

(11,338)

Receive Fixed 6.67%

Pay Floating MIBOR

Annually

3/15/24

450,000,000

INR

(18,745)

Receive Fixed 6.78%

Pay Floating MIBOR

Annually

3/15/24

267,000,000

INR

(7,676)

Receive Fixed 6.85%

Pay Floating MIBOR

Annually

3/15/24

174,800,000

INR

(3,652)

Receive Fixed 6.93%

Pay Floating MIBOR

Annually

3/15/24

440,000,000

INR

(5,192)

Receive Fixed 6.93%

Pay Floating MIBOR

Annually

3/15/24

180,000,000

INR

(2,093)

Receive Fixed 6.96%

Pay Floating MIBOR

Annually

3/15/24

175,000,000

INR

(1,436)

Receive Fixed 7.08%

Pay Floating MIBOR

Annually

3/15/24

350,000,000

INR

1,527

Receive Fixed 7.36%

Pay Floating MIBOR

Annually

3/15/24

624,000,000

INR

21,567

Receive Floating 3-Month-KDR

Pay Fixed rate 3.61%

Quarterly

3/15/24

5,600,000,000

KRW

17,013

Receive Floating 3-Month-KDR

Pay Fixed rate 3.62%

Quarterly

3/15/24

5,800,000,000

KRW

17,062

Receive Floating 3-Month-KDR

Pay Fixed rate 3.76%

Quarterly

3/15/24

6,600,000,000

KRW

12,721

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Description

Payment
Frequency

Maturity
Date

Notional

Amount^*

Value/Unrealized
Appreciation
(Depreciation)

Centrally Cleared Swap Contracts (continued)

Receive Floating 3-Month-KDR

Pay Fixed rate 3.78%

Quarterly

3/15/24

6,600,000,000

KRW

11,744

Receive Floating MIBOR

Pay Fixed rate 6.58%

Annually

3/15/24

364,000,000

INR

18,594

Receive Fixed 5.50%

Pay Floating MIBOR

Semi-Annually

4/11/24

228,480,000

INR

(10,186)

Receive Floating MIBOR

Pay Fixed rate 6.51%

Semi-Annually

4/11/24

391,680,000

INR

16,604

Receive Fixed 5.09%

Pay Floating rate Overnight SOFR

Annually

6/21/24

2,400,000

(5,691)

Receive Fixed 5.15%

Pay Floating rate Overnight SOFR

Annually

6/21/24

8,000,000

(14,146)

Receive Fixed 6.84%

Pay Floating MIBOR

Annually

6/21/24

360,000,000

INR

(5,937)

Receive Floating 3-Month-KDR

Pay Fixed rate 3.74%

Quarterly

6/21/24

3,066,000,000

KRW

8,108

Receive Floating 3-Month-KDR

Pay Fixed rate 3.83%

Quarterly

6/21/24

5,400,000,000

KRW

10,439

Receive Floating 3-Month-KDR

Pay Fixed rate 3.84%

Quarterly

6/21/24

5,400,000,000

KRW

10,122

Receive Floating 3-Month-KDR

Pay Fixed rate 3.51%

Quarterly

8/25/24

5,560,000,000

KRW

21,281

Receive Fixed 6.22%

Pay Floating MIBOR

Annually

9/20/24

200,000,000

INR

(15,241)

Receive Fixed 6.30%

Pay Floating MIBOR

Annually

9/20/24

210,000,000

INR

(14,090)

Receive Floating 3-Month-KDR

Pay Fixed rate 3.82%

Quarterly

9/20/24

5,720,000,000

KRW

7,656

Receive Fixed 9.47%

Pay Floating Banxico Mexico 1 Month Rate

Monthly

10/22/24

82,400,000

MXN

(113,545)

Receive Fixed 7.74%

Pay Floating rate 3-Month-JIBAR

Quarterly

10/25/24

49,768,689

ZAR

5,195

Receive Fixed 2.58%

Pay Floating rate China 7-Day Repo

Quarterly

12/20/24

14,000,000

CNY

(2,210)

Receive Floating rate Overnight SOFR

Pay Fixed rate 3.64%

Annually

12/20/24

2,150,000

22,390

Receive Floating rate Overnight SOFR

Pay Fixed rate 3.75%

Annually

12/20/24

2,140,000

20,078

Receive Floating rate Overnight SOFR

Pay Fixed rate 3.78%

Annually

12/20/24

2,300,000

20,981

Receive Floating rate Overnight SOFR

Pay Fixed rate 3.97%

Annually

12/20/24

2,160,000

15,789

Receive Fixed 8.44%

Pay Floating BRLCDI

Annually

1/02/25

12,000,000

BRL

(209,832)

Receive Floating rate 1 Year-SOFR

Pay Fixed rate 4.17%

Annually

1/24/25

3,500,000

(51,593)

Receive Fixed 1.20%

Pay Floating rate 3-Month-TAIBOR

Quarterly

3/15/25

60,000,000

TWD

(8,123)

Receive Fixed 1.20%

Pay Floating rate 3-Month-TAIBOR

Quarterly

3/15/25

60,000,000

TWD

(8,065)

Receive Fixed 1.22%

Pay Floating rate 3-Month-TAIBOR

Quarterly

3/15/25

90,000,000

TWD

(11,074)

Receive Fixed 1.22%

Pay Floating rate 3-Month-TAIBOR

Quarterly

3/15/25

90,000,000

TWD

(10,987)

Receive Fixed 1.23%

Pay Floating rate 3-Month-TAIBOR

Quarterly

3/15/25

90,000,000

TWD

(10,782)

Receive Fixed 2.06%

Pay Floating rate THOR

Quarterly

3/15/25

88,000,000

THB

(3,172)

Receive Fixed 4.37%

Pay Floating rate Overnight SOFR

Annually

3/15/25

3,180,000

(31,339)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Description

Payment
Frequency

Maturity
Date

Notional

Amount^*

Value/Unrealized
Appreciation
(Depreciation)

Centrally Cleared Swap Contracts (continued)

Receive Fixed 4.65%

Pay Floating rate 3-Month-BKBM

Quarterly

3/15/25

2,200,000

NZD

(18,522)

Receive Fixed 5.12%

Pay Floating rate 3-Month-BKBM

Quarterly

3/15/25

1,680,000

NZD

(4,933)

Receive Fixed 5.13%

Pay Floating rate 3-Month-BKBM

Quarterly

3/15/25

5,088,000

NZD

(14,262)

Receive Fixed 5.14%

Pay Floating rate 3-Month-BKBM

Quarterly

3/15/25

1,686,000

NZD

(4,707)

Receive Fixed 5.35%

Pay Floating rate 3-Month-BKBM

Quarterly

3/15/25

4,700,000

NZD

(1,614)

Receive Floating 3-Month-KLIBOR

Pay Fixed rate 3.55%

Quarterly

3/15/25

11,400,000

MYR

3,151

Receive Floating rate 3-Month-HIBOR

Pay Fixed rate 4.39%

Quarterly

3/15/25

24,760,000

HKD

16,238

Receive Fixed 2.69%

Pay Floating rate China 7-Day Repo

Quarterly

3/20/25

14,200,000

CNY

(1,632)

Receive Fixed 2.73%

Pay Floating rate China 7-Day Repo

Quarterly

3/20/25

21,000,000

CNY

(1,383)

Receive Fixed 5.40%

Pay Floating rate 6-Month-CZEONIA

Semi-Annually

4/22/25

222,789,596

CZK

(141,472)

Receive Fixed 3.87%

Pay Floating 3-Month-KLIBOR

Quarterly

6/15/25

11,600,000

MYR

12,522

Receive Floating rate Overnight SOFR

Pay Fixed rate 3.39%

Annually

6/20/25

2,180,000

12,912

Receive Fixed 3.24%

Pay Floating 3-Month-KDR

Quarterly

6/21/25

1,300,000,000

KRW

(12,010)

Receive Fixed 3.25%

Pay Floating 3-Month-KDR

Quarterly

6/21/25

5,200,000,000

KRW

(47,289)

Receive Fixed 3.42%

Pay Floating 3-Month-KLIBOR

Quarterly

6/21/25

6,800,000

MYR

(5,426)

Receive Fixed 3.53%

Pay Floating 3-Month-KLIBOR

Quarterly

6/21/25

13,900,000

MYR

(4,760)

Receive Fixed 3.59%

Pay Floating 3-Month-KLIBOR

Quarterly

6/21/25

4,600,000

MYR

(422)

Receive Fixed 6.30%

Pay Floating rate 3-Month-JIBAR

Quarterly

7/31/25

53,795,745

ZAR

(87,368)

Receive Fixed 7.57%

Pay Floating rate 3-Month-JIBAR

Quarterly

11/04/25

39,000,000

ZAR

(15,719)

Receive Floating rate Overnight SOFR

Pay Fixed rate 2.95%

Annually

12/18/25

2,220,000

12,852

Receive Fixed 3.31%

Pay Floating 3-Month-KDR

Quarterly

12/20/25

15,136,000,000

KRW

(84,791)

Receive Fixed 3.57%

Pay Floating rate Overnight SOFR

Annually

12/20/25

762,000

(8,672)

Receive Floating 3-Month-KDR

Pay Fixed rate 4.14%

Quarterly

12/20/25

9,636,000,000

KRW

(60,260)

Receive Fixed 3.51%

Pay Floating 3-Month-KDR

Quarterly

3/15/26

2,280,000,000

KRW

(12,165)

Receive Fixed 3.53%

Pay Floating 3-Month-KDR

Quarterly

3/15/26

2,200,000,000

KRW

(10,793)

Receive Floating 3-Month-KDR

Pay Fixed rate 3.55%

Quarterly

3/15/26

920,000,000

KRW

4,217

Receive Floating 3-Month-KDR

Pay Fixed rate 3.58%

Quarterly

3/15/26

920,000,000

KRW

3,624

Receive Floating 3-Month-KDR

Pay Fixed rate 3.64%

Quarterly

3/15/26

910,000,000

KRW

2,313

Receive Floating 3-Month-KDR

Pay Fixed rate 3.64%

Quarterly

3/15/26

910,000,000

KRW

2,353

Receive Fixed 2.69%

Pay Floating rate Overnight SOFR

Annually

3/19/26

6,624,000

(47,980)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Description

Payment
Frequency

Maturity
Date

Notional

Amount^*

Value/Unrealized
Appreciation
(Depreciation)

Centrally Cleared Swap Contracts (continued)

Receive Fixed 3.74%

Pay Floating rate Overnight SOFR

Annually

3/20/26

6,534,000

(24,800)

Receive Fixed 4.06%

Pay Floating 3-Month-KDR

Quarterly

6/11/26

1,320,000,000

KRW

9,182

Receive Floating 3-Month-KDR

Pay Fixed rate 3.25%

Quarterly

6/11/26

3,520,000,000

KRW

15,367

Receive Floating rate 3-Month USD LIBOR

Pay Fixed rate 0.50%

Quarterly

6/16/26

1,150,000

116,387

Receive Floating rate 3-Month USD LIBOR

Pay Fixed rate 0.50%

Quarterly

6/16/26

1,400,000

139,968

Receive Floating 3-Month-KDR

Pay Fixed rate 3.24%

Quarterly

7/19/26

886,060,000

KRW

9,129

Receive Floating 3-Month-KDR

Pay Fixed rate 3.24%

Quarterly

7/20/26

886,900,000

KRW

9,120

Receive Fixed 4.02%

Pay Floating 3-Month-KDR

Quarterly

9/27/26

1,200,000,000

KRW

8,504

Receive Fixed 1.25%

Pay Floating 3-Month-USD LIBOR

Semi-Annually

12/15/26

1,300,000

(140,920)

Receive Fixed 11.07%

Pay Floating BRLCDI

Annually

1/04/27

9,430,255

BRL

(83,602)

Receive Fixed 11.22%

Pay Floating BRLCDI

Annually

1/04/27

10,436,876

BRL

(84,117)

Receive Fixed 11.22%

Pay Floating BRLCDI

Annually

1/04/27

8,000,000

BRL

(64,769)

Receive Fixed 11.26%

Pay Floating BRLCDI

Annually

1/04/27

9,695,993

BRL

(76,522)

Receive Fixed 11.48%

Pay Floating BRLCDI

Annually

1/04/27

10,436,876

BRL

(70,601)

Receive Fixed 12.34%

Pay Floating BRLCDI

Annually

1/04/27

5,028,240

BRL

(14,941)

Receive Fixed 12.72%

Pay Floating BRLCDI

Annually

1/04/27

10,721,816

BRL

(7,244)

Receive Fixed 12.79%

Pay Floating BRLCDI

Annually

1/04/27

10,721,816

BRL

(4,057)

Receive Fixed 13.29%

Pay Floating BRLCDI

Annually

1/04/27

2,980,054

BRL

9,429

Receive Fixed 13.41%

Pay Floating BRLCDI

Annually

1/04/27

5,875,629

BRL

23,786

Receive Fixed 13.47%

Pay Floating BRLCDI

Annually

1/04/27

4,395,970

BRL

19,911

Receive Fixed 13.51%

Pay Floating BRLCDI

Annually

1/04/27

8,748,347

BRL

41,891

Receive Floating rate 1 Year-SOFR

Pay Fixed rate 1.42%

Annually

3/08/27

4,000,000

441,558

Receive Fixed 8.78%

Pay Floating Banxico Mexico 1 Month Rate

Monthly

10/19/27

72,800,000

MXN

85,725

Receive Fixed 3.89%

Pay Floating 3-Month-KDR

Quarterly

12/17/27

9,832,000,000

KRW

58,621

Receive Floating 3-Month-KDR

Pay Fixed rate 3.04%

Quarterly

12/17/27

15,452,400,000

KRW

83,699

Receive Floating 3-Month-KDR

Pay Fixed rate 3.28%

Quarterly

12/17/27

1,472,000,000

KRW

3,228

Receive Floating 3-Month-KDR

Pay Fixed rate 3.32%

Quarterly

12/17/27

1,500,000,000

KRW

2,410

Receive Fixed 4.23%

Pay Floating 3-Month-KDR

Quarterly

1/19/28

1,492,100,000

KRW

29,893

Receive Fixed 6.98%

Pay Floating rate 6-Month-WIBOR

Semi-Annually

1/19/28

7,000,000

PLN

(62,089)

Receive Fixed 7.24%

Pay Floating rate CLP TNA

Semi-Annually

1/19/28

1,000,000,000

CLP

(49,869)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Description

Payment
Frequency

Maturity
Date

Notional

Amount^*

Value/Unrealized
Appreciation
(Depreciation)

Centrally Cleared Swap Contracts (continued)

Receive Floating rate 1 Year-SOFR

Pay Fixed rate 3.33%

Annually

1/24/28

2,500,000

(76,160)

Receive Fixed 0.46%

Pay Floating rate Overnight MUTSCALM

Annually

3/15/28

318,000,000

JPY

242

Receive Fixed 3.32%

Pay Floating rate Overnight SOFR

Annually

3/15/28

1,340,000

(38,820)

Receive Fixed 3.34%

Pay Floating rate Overnight SOFR

Annually

3/15/28

2,840,000

(79,741)

Receive Fixed 3.34%

Pay Floating rate Overnight SOFR

Annually

3/15/28

2,218,000

(62,772)

Receive Fixed 3.41%

Pay Floating rate Overnight SOFR

Annually

3/15/28

1,426,000

(35,585)

Receive Fixed 3.43%

Pay Floating rate Overnight SOFR

Annually

3/15/28

1,340,000

(32,423)

Receive Fixed 3.54%

Pay Floating rate Overnight SOFR

Annually

3/15/28

1,110,000

(21,113)

Receive Fixed 3.55%

Pay Floating rate Overnight SOFR

Annually

3/15/28

1,110,000

(20,766)

Receive Fixed 3.66%

Pay Floating rate Overnight SOFR

Annually

3/15/28

1,112,000

(15,594)

Receive Fixed 4.36%

Pay Floating rate 3-Month-BKBM

Quarterly

3/15/28

2,300,000

NZD

(29,876)

Receive Fixed 4.50%

Pay Floating rate 3-Month-BKBM

Quarterly

3/15/28

1,200,000

NZD

(11,063)

Receive Fixed 6.21%

Pay Floating MIBOR

Semi-Annually

3/15/28

99,000,000

INR

35,320

Receive Fixed 6.43%

Pay Floating MIBOR

Semi-Annually

3/15/28

80,000,000

INR

(10,981)

Receive Floating 3-Month-KDR

Pay Fixed rate 3.27%

Quarterly

3/15/28

570,000,000

KRW

7,249

Receive Floating 3-Month-KDR

Pay Fixed rate 3.33%

Quarterly

3/15/28

1,380,000,000

KRW

14,915

Receive Floating MIBOR

Pay Fixed rate 6.25%

Semi-Annually

3/15/28

60,000,000

INR

13,778

Receive Floating MIBOR

Pay Fixed rate 6.25%

Semi-Annually

3/15/28

20,000,000

INR

4,666

Receive Floating MIBOR

Pay Fixed rate 6.25%

Semi-Annually

3/15/28

100,000,000

INR

23,068

Receive Floating MIBOR

Pay Fixed rate 6.44%

Semi-Annually

3/15/28

80,000,000

INR

10,519

Receive Floating rate 3-Month-HIBOR

Pay Fixed rate 3.50%

Quarterly

3/15/28

10,400,000

HKD

43,093

Receive Floating rate 3-Month-TAIBOR

Pay Fixed rate 1.16%

Quarterly

3/15/28

73,200,000

TWD

29,755

Receive Floating rate 3-Month-TAIBOR

Pay Fixed rate 1.17%

Quarterly

3/15/28

36,600,000

TWD

14,144

Receive Floating rate China 7-Day Repo

Pay Fixed rate 2.83%

Quarterly

3/15/28

4,600,000

CNY

3,950

Receive Floating rate China 7-Day Repo

Pay Fixed rate 2.83%

Quarterly

3/15/28

35,240,000

CNY

29,333

Receive Floating rate China 7-Day Repo

Pay Fixed rate 2.93%

Quarterly

3/15/28

1,800,000

CNY

308

Receive Floating rate China 7-Day Repo

Pay Fixed rate 2.99%

Quarterly

3/15/28

9,000,000

CNY

(1,729)

Receive Fixed 3.28%

Pay Floating 3-Month-KDR

Quarterly

4/19/28

3,103,190,226

KRW

(38,563)

Receive Fixed 3.49%

Pay Floating 3-Month-KDR

Quarterly

4/19/28

2,346,809,774

KRW

(11,994)

Receive Fixed 4.95%

Pay Floating rate 6-Month-WIBOR

Semi-Annually

4/19/28

14,800,000

PLN

136,279

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Description

Payment
Frequency

Maturity
Date

Notional

Amount^*

Value/Unrealized
Appreciation
(Depreciation)

Centrally Cleared Swap Contracts (continued)

Receive Fixed 5.00%

Pay Floating rate CLP TNA

Semi-Annually

4/19/28

2,785,289,141

CLP

146,445

Receive Floating 3-Month-KLIBOR

Pay Fixed rate 3.98%

Quarterly

6/15/28

4,700,000

MYR

(10,479)

Receive Fixed 3.42%

Pay Floating rate Overnight SOFR

Annually

6/21/28

270,000

(5,293)

Receive Fixed 3.43%

Pay Floating rate Overnight SOFR

Annually

6/21/28

1,360,000

(26,028)

Receive Fixed 3.46%

Pay Floating rate Overnight SIBCSORA

Semi-Annually

6/21/28

600,000

SGD

1,153

Receive Fixed 3.66%

Pay Floating rate Overnight SOFR

Annually

6/21/28

1,128,000

(9,951)

Receive Fixed 4.57%

Pay Floating rate 3-Month-BKBM

Quarterly

6/21/28

1,100,000

NZD

(6,547)

Receive Floating 3-Month-KLIBOR

Pay Fixed rate 3.54%

Quarterly

6/21/28

2,860,000

MYR

5,974

Receive Floating 3-Month-KLIBOR

Pay Fixed rate 3.60%

Quarterly

6/21/28

5,800,000

MYR

8,760

Receive Floating 3-Month-KLIBOR

Pay Fixed rate 3.67%

Quarterly

6/21/28

1,920,000

MYR

1,583

Receive Floating MIBOR

Pay Fixed rate 6.41%

Semi-Annually

6/21/28

81,000,000

INR

11,729

Receive Floating MIBOR

Pay Fixed rate 6.41%

Semi-Annually

6/21/28

81,000,000

INR

11,812

Receive Floating MIBOR

Pay Fixed rate 6.47%

Semi-Annually

6/21/28

82,000,000

INR

9,390

Receive Floating 3-Month-KDR

Pay Fixed rate 2.98%

Quarterly

7/17/28

820,000,000

KRW

17,890

Receive Floating 3-Month-KDR

Pay Fixed rate 3.81%

Quarterly

9/28/28

1,220,000,000

KRW

(6,007)

Receive Fixed 3.80%

Pay Floating 3-Month-KDR

Quarterly

12/16/28

3,046,000,000

KRW

14,205

Receive Fixed 3.85%

Pay Floating 3-Month-KDR

Quarterly

12/16/28

2,537,600,000

KRW

13,591

Receive Floating 3-Month-KDR

Pay Fixed rate 2.91%

Quarterly

12/16/28

5,583,600,000

KRW

38,043

Receive Floating Overnight MUTSCALM

Pay Fixed rate 0.71%

Annually

12/20/28

8,000,000

JPY

(327)

Receive Floating Overnight MUTSCALM

Pay Fixed rate 0.75%

Annually

6/20/30

134,000,000

JPY

(3,718)

Receive Fixed 1.17%

Pay Floating 3-Month-KDR

Quarterly

12/16/30

340,500,000

KRW

7,654

Receive Fixed 1.53%

Pay Floating 3-Month-KDR

Quarterly

6/16/31

207,200,000

KRW

4,881

Receive Floating rate 1 Year-SOFR

Pay Fixed rate 1.52%

Annually

3/08/32

4,000,000

687,232

Receive Fixed 0.77%

Pay Floating rate 6 Month-EURIBOR

Annually

3/17/32

2,308,338

EUR

(203,865)

Receive Fixed 0.98%

Pay Floating rate 6 Month-EURIBOR

Annually

3/17/32

1,042,890

EUR

(91,608)

Receive Floating rate 6 Month-EURIBOR

Pay Fixed rate 2.78%

Semi-Annually

3/17/32

1,454,000

EUR

15,800

Receive Fixed 2.60%

Pay Floating rate 6 Month-EURIBOR

Semi-Annually

9/15/32

2,236,000

EUR

(42,803)

Receive Fixed 2.71%

Pay Floating rate 6 Month-EURIBOR

Semi-Annually

9/15/32

1,190,000

EUR

(17,457)

Receive Fixed 2.88%

Pay Floating rate 6 Month-EURIBOR

Semi-Annually

9/15/32

1,276,000

EUR

(9,511)

Receive Fixed 8.47%

Pay Floating Banxico Mexico 1 Month Rate

Monthly

10/12/32

37,000,000

MXN

(65,728)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Description

Payment
Frequency

Maturity
Date

Notional

Amount^*

Value/Unrealized
Appreciation
(Depreciation)

Centrally Cleared Swap Contracts (continued)

Receive Fixed 8.72%

Pay Floating Banxico Mexico 1 Month Rate

Monthly

10/12/32

21,700,000

MXN

(19,039)

Receive Fixed 9.07%

Pay Floating JIBAR

Quarterly

10/25/32

19,017,434

ZAR

(8,361)

Receive Floating rate Overnight SIBCSORA

Pay Fixed rate 2.72%

Semi-Annually

12/15/32

700,000

SGD

7,744

Receive Floating rate Overnight SIBCSORA

Pay Fixed rate 2.84%

Semi-Annually

12/15/32

700,000

SGD

5,313

Receive Floating rate 6 Month-EURIBOR

Pay Fixed rate 2.70%

Semi-Annually

12/20/32

700,000

EUR

10,732

Receive Floating rate 1 Year-SOFR

Pay Fixed rate 3.17%

Annually

1/24/33

2,900,000

(118,911)

Receive Fixed 2.70%

Pay Floating rate 6 Month-EURIBOR

Semi-Annually

3/15/33

1,344,000

EUR

(20,915)

Receive Fixed 2.75%

Pay Floating rate 6 Month-EURIBOR

Semi-Annually

3/15/33

270,000

EUR

(3,663)

Receive Floating MIBOR

Pay Fixed rate 6.31%

Semi-Annually

3/15/33

115,000,000

INR

52,128

Receive Floating MIBOR

Pay Fixed rate 6.54%

Semi-Annually

3/15/33

46,000,000

INR

11,073

Receive Floating Overnight MUTSCALM

Pay Fixed rate 1.23%

Annually

3/15/33

66,000,000

JPY

587

Receive Floating rate Overnight SOFR

Pay Fixed rate 3.16%

Annually

3/15/33

1,192,000

47,128

Receive Floating rate Overnight SOFR

Pay Fixed rate 3.30%

Annually

3/15/33

596,000

16,805

Receive Floating rate Overnight SOFR

Pay Fixed rate 3.32%

Annually

3/15/33

596,000

16,068

Receive Floating rate Overnight SOFR

Pay Fixed rate 3.39%

Annually

3/15/33

598,000

12,275

Receive Fixed 8.05%

Pay Floating Banxico Mexico 1 Month Rate

Monthly

4/06/33

26,200,000

MXN

(81,734)

Receive Fixed 8.07%

Pay Floating Banxico Mexico 1 Month Rate

Monthly

4/06/33

26,200,000

MXN

(79,409)

Receive Fixed 4.00%

Pay Floating rate 6-Month-CZEONIA

Semi-Annually

4/19/33

52,000,000

CZK

146,049

Receive Fixed 0.98%

Pay Floating rate Overnight MUTSCALM

Annually

4/20/33

34,000,000

JPY

2,818

Receive Floating Overnight MUTSCALM

Pay Fixed rate 0.94%

Annually

4/20/33

52,200,000

JPY

(2,805)

Receive Fixed 3.29%

Pay Floating rate Overnight SOFR

Annually

6/21/33

482,000

(12,005)

Receive Fixed 3.32%

Pay Floating rate Overnight SOFR

Annually

6/21/33

1,630,000

3,271

Receive Fixed 4.42%

Pay Floating 6-Month-BBSW

Semi-Annually

6/21/33

360,000

AUD

(1,841)

Receive Fixed 4.42%

Pay Floating 6-Month-BBSW

Semi-Annually

6/21/33

350,000

AUD

(1,723)

Receive Fixed 4.44%

Pay Floating 6-Month-BBSW

Semi-Annually

6/21/33

358,000

AUD

(1,354)

Receive Fixed 4.53%

Pay Floating 6-Month-BBSW

Semi-Annually

6/21/33

360,000

AUD

381

Receive Floating Overnight MUTSCALM

Pay Fixed rate 0.89%

Annually

6/21/33

66,800,000

JPY

(134)

Receive Floating Overnight MUTSCALM

Pay Fixed rate 0.92%

Annually

6/21/33

68,600,000

JPY

(1,596)

Receive Floating Overnight MUTSCALM

Pay Fixed rate 0.92%

Annually

6/21/33

42,000,000

JPY

(1,067)

Receive Floating rate Overnight SOFR

Pay Fixed rate 3.41%

Annually

6/21/33

608,000

9,133

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Description

Payment
Frequency

Maturity
Date

Notional

Amount^*

Value/Unrealized
Appreciation
(Depreciation)

Centrally Cleared Swap Contracts (continued)

Receive Floating rate Overnight SOFR

Pay Fixed rate 3.31%

Annually

12/20/33

172,000

2,274

Receive Floating rate Overnight SOFR

Pay Fixed rate 3.33%

Annually

3/20/34

734,000

4,727

Receive Floating rate Overnight SOFR

Pay Fixed rate 3.33%

Annually

3/20/34

740,000

4,795

Receive Floating Overnight MUTSCALM

Pay Fixed rate 1.09%

Annually

3/15/38

111,500,000

JPY

(4,123)

Receive Floating 3-Month-KDR

Pay Fixed rate 1.15%

Quarterly

12/16/40

177,000,000

KRW

(5,258)

Receive Floating 3-Month-KDR

Pay Fixed rate 1.57%

Quarterly

6/16/41

108,000,000

KRW

(3,505)

Receive Fixed 2.61%

Pay Floating rate 6 Month-EURIBOR

Semi-Annually

3/17/42

888,000

EUR

(17,484)

Receive Floating rate 6 Month-EURIBOR

Pay Fixed rate 0.74%

Semi-Annually

3/17/42

1,098,871

EUR

162,617

Receive Floating rate 6 Month-EURIBOR

Pay Fixed rate 0.94%

Semi-Annually

3/17/42

558,230

EUR

75,008

Receive Fixed 2.88%

Pay Floating rate 6 Month-EURIBOR

Annually

9/15/42

1,570,000

EUR

62,000

Receive Fixed 3.21%

Pay Floating rate Overnight SOFR

Annually

9/15/42

1,628,000

(10,486)

Receive Floating rate 6 Month-EURIBOR

Pay Fixed rate 2.21%

Semi-Annually

9/15/42

764,000

EUR

33,207

Receive Floating rate 6 Month-EURIBOR

Pay Fixed rate 2.23%

Semi-Annually

9/15/42

274,000

EUR

11,547

Receive Floating rate 6 Month-EURIBOR

Pay Fixed rate 2.43%

Semi-Annually

9/15/42

720,000

EUR

20,465

Receive Floating rate Overnight SOFR

Pay Fixed rate 3.08%

Annually

9/15/42

1,628,000

23,004

Receive Fixed 1.30%

Pay Floating rate Overnight MUTSCALM

Annually

3/15/43

36,000,000

JPY

5,957

Receive Floating rate 6 Month-EURIBOR

Pay Fixed rate 2.37%

Semi-Annually

3/16/43

810,000

EUR

23,134

Receive Floating rate 6 Month-EURIBOR

Pay Fixed rate 2.42%

Semi-Annually

3/16/43

164,000

EUR

4,085

Receive Floating rate Overnight SOFR

Pay Fixed rate 3.28%

Annually

6/15/43

1,048,000

(228)

Receive Floating rate 6 Month-EURIBOR

Pay Fixed rate 0.44%

Semi-Annually

10/27/51

430,000

EUR

14,227

Receive Fixed 1.51%

Pay Floating rate 6 Month-EURIBOR

Semi-Annually

9/16/52

558,000

EUR

(24,859)

Receive Floating rate 6 Month-EURIBOR

Pay Fixed rate 1.15%

Semi-Annually

9/16/52

200,000

EUR

15,095

Receive Floating rate 6 Month-EURIBOR

Pay Fixed rate 1.25%

Semi-Annually

9/16/52

204,000

EUR

13,685

Receive Floating rate 6 Month-EURIBOR

Pay Fixed rate 1.27%

Semi-Annually

9/16/52

542,000

EUR

35,661

Receive Floating rate Overnight SOFR

Pay Fixed rate 2.85%

Annually

3/15/53

660,000

48,684

Receive Floating rate Overnight SOFR

Pay Fixed rate 2.89%

Annually

3/15/53

320,000

21,520

Receive Floating rate Overnight SOFR

Pay Fixed rate 2.96%

Annually

3/15/53

334,000

17,800

Receive Fixed 1.51%

Pay Floating rate Overnight MUTSCALM

Annually

6/16/53

56,000,000

JPY

7,377

Receive Fixed 1.52%

Pay Floating rate Overnight MUTSCALM

Annually

6/16/53

36,400,000

JPY

4,966

Receive Fixed 1.57%

Pay Floating rate Overnight MUTSCALM

Annually

6/16/53

59,800,000

JPY

10,752

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Value/Unrealized

Payment

Maturity

Notional

Appreciation

Description

Frequency

Date

Amount^*

(Depreciation)

Centrally Cleared Swap Contracts (continued)

Receive Floating rate Overnight SOFR

Pay Fixed rate 2.97%

Annually

6/21/53

64,000

2,850

Receive Floating rate Overnight SOFR

Pay Fixed rate 2.98%

Annually

6/21/53

320,000

14,072

Receive Floating rate Overnight SOFR

Pay Fixed rate 3.01%

Annually

6/21/53

210,000

7,724

Receive Floating rate Overnight SOFR

Pay Fixed rate 2.83%

Annually

9/20/53

104,000

6,709

Receive Floating rate Overnight SOFR

Pay Fixed rate 2.91%

Annually

9/20/53

158,000

7,806

Total Interest Rate Swap Contracts

549,486

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

At February 28, 2023, the Fund had the following total return swap contracts outstanding.

Total Return Swap Contracts

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts

Equity Contracts - Long^a

1+1 AG INH ON

1-Month EURIBOR + 0.25%

Monthly

JPHQ

1/30/24

132,761

EUR

$ (15,689)

3i Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

203,601

GBP

95,876

7C Solarparken AG

Euro STR + 0.35%

Monthly

JPHQ

11/06/23

64,761

EUR

(8,022)

A.P. Moller - Maersk

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

522,266

DKK

2,694

A1 Telekom Austria AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

154,535

EUR

31,686

Aalberts NV

1-Month EURIBOR + 0.25%

Monthly

JPHQ

2/28/24

52,895

EUR

(433)

AcadeMedia AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,079,258

SEK

6,669

Activision Blizzard

1-Day FEDEF + 0.30%

Monthly

BOFA

1/26/24

777,750

(2,027)

AddLife AB

1-Week STIBOR + 0.28%

Monthly

SEBA

8/02/23

2,617,705

SEK

(19,548)

ADvTECH Ltd.

1-Day SABOR + 0.30%

Monthly

MSCS

7/17/23

910,076

ZAR

7,196

Aegon NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

34,058

EUR

1,125

African Rainbow Minerals Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

8/30/23

848,238

ZAR

1,036

AIB Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

28,343

GBP

24,913

Air France-KLM

1-Day EONIA + 0.30%

Monthly

MSCS

10/02/23

158,667

EUR

60,312

Airtel Africa PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

255,935

GBP

(61,795)

Aker Solutions ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

1,593,281

NOK

27,116

Albemarle Corp.

OBFR + 0.25%

Monthly

MSCS

2/26/24

21,135

EUR

Albertsons Cos. Inc.

1-Day FEDEF + 0.30%

Monthly

BOFA

1/30/24

286,272

(938)

Allfunds Group PLC

Euro STR + 0.30%

Monthly

BOFA

3/01/24

79,665

EUR

(288)

Altra

1-Day FEDEF + 0.30%

Monthly

BOFA

1/30/24

1,046,010

(3,837)

Altra

1-Day FEDEF + 0.30%

Monthly

BOFA

2/24/24

246,120

–

Amadeus Fire AG

Euro STR + 0.35%

Monthly

JPHQ

1/31/24

60,491

EUR

(2,094)

Ambea AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

2,176,192

SEK

(49,619)

AMC Entertainment Holdings

1-Day FEDEF + 0.30%

Monthly

BOFA

1/30/24

62,100

(220)

American Equity Investments

1-Day FEDEF + 0.30%

Monthly

BOFA

2/01/24

299,880

(914)

Amyris

1-Day FEDEF + 0.70%

Monthly

BOFA

2/01/24

149,847

2,914

Anadolu Efes

1-Day FEDEF + 1.25%

Monthly

MSCS

1/22/24

89,078

(2,218)

Anadolu Grubu

1-Day FEDEF + 0.30%

Monthly

MSCS

11/27/23

109,937

(14,777)

Andritz AG

Euro STR + 0.35%

Monthly

JPHQ

7/14/23

231,357

EUR

26,779

AO World PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/30/23

105,358

GBP

14,685

Aperam SA

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

34,337

EUR

4,793

Arcadis

Euro STR + 0.35%

Monthly

JPHQ

9/22/23

93,828

EUR

10,498

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts - Long^a(continued)

Arcelormittal

Euro STR + 0.25%

Monthly

JPHQ

2/28/24

71,296

EUR

$ 317

Arctic

1-Day FEDEF + 0.30%

Monthly

MSCS

11/27/23

47,855

1,058

Arise AB

1-Day SABOR + 0.70%

Monthly

SEBA

8/03/23

898,063

SEK

(18,871)

Ariston Holding NV

Euro STR + 0.35%

Monthly

JPHQ

11/29/23

76,830

EUR

(2,535)

ASBIS Kypros Ltd.

1-Day FEDEF + 0.30%

Monthly

MSCS

7/12/23

57,517

52,326

Ascencio

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

41,951

EUR

(1,059)

ASML Holding NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

126,862

EUR

19,537

ASR Nederland NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

48,487

EUR

(1,353)

Asseco Poland SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

220,820

33,250

Astral Foods Ltd.

1-Day SABOR + 0.30%

Monthly

MSCS

7/17/23

4,630,564

ZAR

(28,657)

AT&S Austria Technologie & Systemtechnik AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

243,185

EUR

(17,410)

Atlas Air Worldwide Holdings

1-Day FEDEF + 0.30%

Monthly

BOFA

2/17/24

2,056,524

(2,115)

Atlas Copco

1-Day FEDEF + 0.30%

Monthly

BOFA

1/31/24

617,472

(1,720)

Atoss Software AG

Euro STR + 0.35%

Monthly

JPHQ

8/01/23

102,403

EUR

10,826

Atresmedia Corporacion de Medios de Comunicacion SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

77,376

EUR

3,627

Attendo AB

1-Week STIBOR + 0.28%

Monthly

SEBA

1/08/24

886,697

SEK

320

Austevoll Seafood ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/12/23

1,863,450

NOK

6,127

AVI Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

10/03/23

3,253,619

ZAR

3,911

Axa SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

108,207

EUR

48,358

Axfood AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

392,110

SEK

(3,747)

Azimut Holding SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

166,803

EUR

10,694

B2Holding ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

1,181,078

NOK

(14,317)

Balfour Beatty

1-Day SONIA + 0.35%

Monthly

MSCS

9/18/23

193,178

GBP

31,252

Banca de Sabadell SA

1-Day EONIA + 0.35%

Monthly

MSCS

10/10/23

81,074

EUR

43,672

Banca Ifis SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

185,084

EUR

35,967

Banco Bilbao Vizcaya Argentaria SA

1-Day EONIA + 0.35%

Monthly

MSCS

9/29/23

97,242

EUR

42,248

Banco BPM SpA

Euro STR + 0.35%

Monthly

JPHQ

7/26/23

107,799

EUR

37,414

Bank Handlowy w Warszawie SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/14/23

62,448

35,518

Bank of Georgia Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/31/23

133,515

GBP

112,987

Barclays PLC

1-Day SONIA + 0.44%

Monthly

MSCS

7/17/23

107,037

GBP

25,850

Barco

Euro STR + 0.35%

Monthly

JPHQ

10/09/23

156,579

EUR

33,677

Bayerische Motoren Werke AG

Euro STR + 0.35%

Monthly

JPHQ

7/03/23

36,870

EUR

1,816

BE Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

885,617

SEK

19,216

Bell Food Group AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

149,634

CHF

19,122

Beneteau

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

117,517

EUR

78,263

Betsson AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,500,563

SEK

58,148

Bidvest Group Ltd.

1-Day SABOR + 0.35%

Monthly

MSCS

7/17/23

363,755

ZAR

1,253

Bilfinger SE

Euro STR + 0.35%

Monthly

JPHQ

12/06/23

134,213

EUR

40,512

Bilia AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,556,310

SEK

(10,727)

BioGaia AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,417,010

SEK

(10,233)

BioMarin Pharmaceutical Inc.

SOFR + 0.35%

Monthly

GSCO

2/23/24

119,405

(4,578)

Biotage AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,741,887

SEK

(40,418)

Black Knight Inc.

1-Day FEDEF + 0.40%

Monthly

MSCS

2/19/24

420,821

(30,665)

Block Inc.

1-Day FEDEF + 0.70%

Monthly

BOFA

5/15/23

165,922

(2,157)

Bloomsbury Publishing PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

62,400

GBP

2,855

BNP Paribas SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

80,770

EUR

48,073

Bogdanka SA

1-Day FEDEF + 0.30%

Monthly

MSCS

8/18/23

92,335

34,277

Bonheur ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

8/28/23

559,388

NOK

(13,522)

BPER Banca SpA

Euro STR + 0.35%

Monthly

JPHQ

9/25/23

157,463

EUR

55,041

Bravida Holding AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/01/23

2,170,895

SEK

18,415

Brederode

Euro STR + 0.35%

Monthly

JPHQ

11/21/23

51,956

EUR

3,179

Breedon Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

180,225

GBP

15,078

Brunel International NV

1-Week STIBOR + 0.28%

Monthly

JPHQ

7/17/23

88,975

EUR

20,080

Budimex SA

1-Day FEDEF + 0.30%

Monthly

MSCS

11/20/23

41,875

4,011

Burckhardt

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

84,669

CHF

11,673

C&C Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/24/23

67,432

GBP

(11,599)

Cairn Homes PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

54,347

GBP

(6,258)

Cairo Communication SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

67,427

EUR

5,781

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts - Long^a(continued)

CapMan OYJ

Euro STR + 0.28%

Monthly

SEBA

7/17/23

55,063

EUR

$ 5,024

Card Factory PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

51,079

GBP

57,744

Cargotec OYJ

Euro STR + 0.28%

Monthly

SEBA

8/23/23

183,964

EUR

38,463

Carlsberg Group

1-Week CIBOR + 0.28%

Monthly

SEBA

9/12/23

756,183

DKK

8,230

Catena AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/17/23

732,167

SEK

2,060

Catena Media PLC

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,051,681

SEK

25,288

Cementir Holding NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

74,364

EUR

27,464

Central Asia Metals PLC

1-Day SONIA + 0.35%

Monthly

MSCS

9/25/23

54,937

GBP

12,949

CentralNic Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

113,122

GBP

9,317

Centrica PLC ORD

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

220,065

GBP

62,493

Cerillion

1-Day SONIA + 0.35%

Monthly

MSCS

11/29/23

13,373

GBP

(1,157)

Chemometec

1-Week CIBOR + 0.28%

Monthly

SEBA

11/15/23

1,572,406

DKK

(91,700)

Chemring Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

8/22/23

144,491

GBP

747

China Jushi Co. Ltd.

1-Day FEDEF + 0.30%

Monthly

MSCS

9/28/23

786,948

(22,287)

Ciech SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

55,148

34,208

Citycon OYJ

Euro STR + 0.28%

Monthly

SEBA

8/23/23

140,371

EUR

(1,015)

Clas Ohlson AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

3,041,567

SEK

(98,087)

CLIQ Digital AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

120,480

EUR

26,902

Cloetta AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

2,208,689

SEK

19,737

Coca-Cola Europacific Partners PLC

1-Day SONIA + 0.30%

Monthly

JPHQ

10/11/23

152,757

EUR

8,975

COFACE

1-Day EONIA + 0.30%

Monthly

MSCS

7/14/23

162,402

EUR

77,285

Coltene Holding AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

29,031

CHF

(1,980)

Commerzbank AG

Euro STR + 0.35%

Monthly

JPHQ

12/18/23

119,637

EUR

39,441

Compagnie des Alpes

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

117,351

EUR

(7,782)

Computacenter PLC ORD

1-Day SONIA + 0.35%

Monthly

MSCS

7/13/23

117,907

GBP

(827)

Construcciones y Auxiliar de Ferrocarriles

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

157,711

EUR

2,853

Coor Service Management Holding AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

2,910,991

SEK

(53,425)

Coupa Software

1-Day FEDEF + 0.30%

Monthly

BOFA

1/30/24

2,053,561

(6,380)

Crest Nicholson Holdings PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

89,165

GBP

2,918

CRH PLC ORD

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

105,448

GBP

44,547

CropEnergies AG

Euro STR + 0.35%

Monthly

JPHQ

10/18/23

165,263

EUR

(30,641)

CVS Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

10/30/23

32,391

GBP

(1,675)

Dampskibsselskabet Norden A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

374,881

DKK

15,543

Danieli & C Officine Meccaniche SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

189,605

EUR

42,626

Darktrace PLC

1-Day SONIA + 0.35%

Monthly

MSCS

12/04/23

114,142

GBP

(3,690)

DCC PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

244,601

GBP

(22,128)

DCP Midstream Partners LP

1-Day FEDEF + 1.00%

Monthly

MSCO

9/21/23

7,832,749

(13,443)

Derichebourg SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

196,189

EUR

20,301

Deutsche Bank AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

194,930

EUR

35,521

Deutsche Lufthansa AG

Euro STR + 0.35%

Monthly

JPHQ

9/06/23

90,244

EUR

33,187

DISH Network Corp.

1-Day FEDEF + 0.70%

Monthly

BOFA

2/24/24

288,951

198

DNO ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/14/23

2,751,978

NOK

(11,434)

Dogus Otomotiv

1-Day FEDEF + 1.25%

Monthly

MSCS

1/22/24

107,427

2,784

Drax Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

277,736

GBP

(18,372)

Duerr AG

Euro STR + 0.35%

Monthly

JPHQ

2/15/24

247,922

EUR

155

Dufry AG

Euro STR + 0.35%

Monthly

JPHQ

8/16/23

124,815

CHF

18,255

E.ON SE

1-Day EONIA + 0.40%

Monthly

MSCS

1/25/24

961,805

EUR

30,530

Econocom Group SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

33,967

EUR

4,383

Edenred

1-Day EONIA + 0.30%

Monthly

MSCS

10/02/23

126,320

EUR

15,138

EFG International AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

185,214

CHF

13,957

Eiffage SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

133,182

EUR

28,885

El.En. SpA

Euro STR + 0.35%

Monthly

JPHQ

7/13/23

121,346

EUR

27,187

Elecnor SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

30,487

EUR

1,120

Elementis PLC

1-Day SONIA + 0.35%

Monthly

MSCS

9/29/23

67,342

GBP

24,179

Elia Group SA

Euro STR + 0.35%

Monthly

JPHQ

7/28/23

116,831

EUR

(6,296)

Elis SA

1-Day EONIA + 0.30%

Monthly

MSCS

2/26/24

84,488

EUR

575

Elkem ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/13/23

3,251,229

NOK

82,046

Elmos Semiconductor SE

Euro STR + 0.35%

Monthly

JPHQ

7/18/23

114,923

EUR

55,335

Endesa SA

1-Day EONIA + 0.35%

Monthly

MSCS

1/12/24

132,339

EUR

Enea AB

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

272,167

(68,978)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts - Long^a(continued)

Energy Transfer LP

1-Month LIBOR + 0.50%

Monthly

CITI

10/18/23

90,194

$ 6,592

Energy Transfer LP

1-Month LIBOR + 0.90%

Monthly

GSCO

1/26/24

42,870

(138)

Energy Transfer LP

1-Month LIBOR + 0.90%

Monthly

GSCO

2/14/24

174,175

(2,770)

Engie SA

1-Day EONIA + 0.30%

Monthly

MSCS

8/30/23

206,173

EUR

19,675

Engie SA

1-Day EONIA + 0.40%

Monthly

MSCO

9/25/23

2,755,393

EUR

116,908

EnQuest PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

102,577

GBP

(7,586)

Entain PLC

1-Day SONIA + 0.65%

Monthly

MSCO

2/08/24

377,081

GBP

(1,478)

Equinor ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

1,303,921

NOK

(9,913)

Eramet

1-Day EONIA + 0.30%

Monthly

MSCS

11/27/23

76,336

EUR

8,040

Ercros SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

82,176

EUR

11,342

Ergomed PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

46,304

GBP

7,264

Ericsson

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

2,078,727

SEK

(38,616)

ESG Core Investments BV

1-Day EONIA + 0.65%

Monthly

MSCO

9/06/23

41,835

EUR

(1,655)

Etsy Inc.

1-Day FEDEF + 0.70%

Monthly

BOFA

2/24/24

230,361

722

Eurobio Scientific SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

48,413

EUR

(8,453)

Eurocommercial Properties NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

249,609

EUR

7,022

Europris ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

1,394,694

NOK

39,138

EVS Broadcast Equipment SA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

33,566

EUR

881

Exor NV

Euro STR

Monthly

JPHQ

2/28/24

35,463

EUR

174

Exxaro Resources Ltd.

1-Day SABOR + 0.36%

Monthly

MSCS

7/17/23

741,354

ZAR

(1,648)

Fagron NV

Euro STR

Monthly

JPHQ

8/18/23

77,653

EUR

2,713

FD Technologies PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

45,203

GBP

3,831

First Horizon

1-Day FEDEF + 0.30%

Monthly

BOFA

1/26/24

2,372,743

(7,296)

FirstGroup PLC

1-Day SONIA + 0.35%

Monthly

MSCS

8/24/23

180,739

GBP

(17,487)

FLSmidth & Co. A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

10/19/23

516,077

DKK

29,924

Focus Financial Partners

1-Day FEDEF + 0.30%

Monthly

BOFA

2/05/24

373,392

(973)

ForFarmers

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

29,356

EUR

2,191

Forgerock

1-Day FEDEF + 0.30%

Monthly

BOFA

1/29/24

784,794

(2,523)

Foxtons Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

9/18/23

43,299

GBP

10,490

Galenica AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

111,158

CHF

1,677

Galliford Try Holdings PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

45,210

GBP

1,100

Gaslog Partners

1-Day FEDEF + 0.30%

Monthly

BOFA

1/31/24

72,880

(240)

^bGazprom PJSC ADR

1-Day FEDEF

Monthly

MSCS

1/31/24

–

Genfit

1-Day EONIA + 0.30%

Monthly

MSCS

11/01/23

50,734

EUR

3,295

Genmab A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

1,233,345

DKK

3,375

GEO Corrections Holdings Inc.

1-Day FEDEF + 0.70%

Monthly

BOFA

2/01/24

616,816

17,688

Gestamp Automocion SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

105,075

EUR

32,969

Getinge AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

717,255

SEK

3,456

GK Software SE

Euro STR + 0.35%

Monthly

JPHQ

8/07/23

38,440

EUR

6,857

Glanbia PLC

1-Day EONIA + 0.35%

Monthly

MSCS

10/27/23

1,176

EUR

Global Dominion Access SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/18/23

56,477

EUR

(9,507)

Greencore Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

9/12/23

117,553

GBP

16,731

Greggs PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

55,825

GBP

30,095

Grieg Seafood ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

3,164,313

NOK

(64,940)

Groupe Renault

1-Day EONIA + 0.30%

Monthly

MSCS

10/03/23

155,084

EUR

65,002

Grupa Azoty SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

86,781

14,887

Grupo Catalana Occidente

1-Day EONIA + 0.35%

Monthly

MSCS

11/10/23

69,572

EUR

2,739

GSK PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

116,427

GBP

12,158

Guerbet

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

42,231

EUR

(1,513)

Gulf Keystone Petroleum Ltd.

1-Day SONIA + 0.25%

Monthly

MSCS

7/17/23

98,930

GBP

9,673

H. Lundbeck A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

11/27/23

1,055,379

DKK

15,661

H+H International A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

671,480

DKK

(19,587)

Harbour Energy

1-Day SONIA + 0.35%

Monthly

MSCS

10/27/23

113,330

GBP

(21,956)

HeidelbergCement AG

1-Month EURIBOR + 0.40%

Monthly

JPHQ

7/17/23

113,178

EUR

39,026

Heijmans NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

176,494

EUR

33,349

Hemnet Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

8/02/23

1,392,632

SEK

13,238

Hensoldt AG

Euro STR + 0.35%

Monthly

JPHQ

8/23/23

105,447

EUR

45,923

Herbalife Nutrition Ltd.

1-Day FEDEF + 0.70%

Monthly

BOFA

2/16/24

406,043

757

HEXPOL AB

1-Week STIBOR + 0.28%

Monthly

SEBA

8/03/23

1,006,143

SEK

7,245

Hilton Food Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

10/18/23

21,400

GBP

4,326

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts - Long^a(continued)

Hochschild Mining PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

72,942

GBP

$ (7,158)

Hollywood Bowl Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

56,216

GBP

13,632

Home Capital

1-Day CORRA + 0.30%

Monthly

BOFA

2/01/24

553,476

CAD

151

Horizon Therapeutics PLC

1-Day FEDEF + 0.30%

Monthly

BOFA

1/26/24

2,642,651

(7,722)

HORNBACH Holding AG & Co. KGaA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

213,859

EUR

3,280

Huber + Suhner AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

181,764

CHF

(6,768)

Hugo Boss AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

104,751

EUR

40,376

IAA US

1-Day FEDEF + 0.30%

Monthly

BOFA

1/26/24

1,873,023

(5,185)

Illimity Bank

Euro STR + 0.35%

Monthly

JPHQ

11/13/23

112,830

EUR

(11,988)

IMAX

1-Day FEDEF + 0.70%

Monthly

BOFA

2/02/24

392,719

(1,352)

IMAX

1-Day FEDEF + 0.70%

Monthly

JPHQ

2/08/24

222,192

CHF

4,421

Immofinanz

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

25,009

EUR

Inchcape PLC

1-Day SONIA + 0.35%

Monthly

MSCS

9/28/23

217,516

GBP

56,101

Indivior PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

189,981

GBP

(7,349)

Indra Sistemas SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

110,411

EUR

33,654

Industria de Diseno Textil Inditex SA

1-Day EONIA + 0.35%

Monthly

MSCS

8/22/23

43,678

EUR

8,294

Indutrade AB

1-Week STIBOR + 0.28%

Monthly

SEBA

3/01/24

270,920

SEK

(40)

Innovatec SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

126,837

EUR

(19,632)

Integra Corp.

1-Day FEDEF + 0.20%

Monthly

BOFA

2/16/24

241,207

(57)

Intervest Offices & Warehouses NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

67,610

EUR

(3,816)

Inwido AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

2,933,867

SEK

5,326

Ion Beam Applications SA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

40,794

EUR

13,149

IP Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

30,480

GBP

(9)

Ipsos Group SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

70,726

EUR

21,379

ISS A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

11/27/23

1,605,183

DKK

663

Iveco

Euro STR + 0.35%

Monthly

JPHQ

11/28/23

164,095

EUR

72,389

Jacquet Metals SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

30,160

EUR

8,031

Jet2 PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/18/23

233,818

GBP

102,412

Julius Baer

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

238,561

CHF

47,814

Just Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

179,312

GBP

23,660

Kap Industrial Holdings Ltd.

1-Day SABOR + 0.30%

Monthly

MSCS

7/17/23

2,767,052

ZAR

(23,297)

Keller Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

75,542

GBP

4,014

Kenmare Resources PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

52,268

GBP

8,120

Kernel Holding SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

69,839

(4,422)

Kesko Corp.

Euro STR + 0.28%

Monthly

SEBA

7/14/23

145,339

EUR

(14,257)

Kinepolis

Euro STR + 0.35%

Monthly

JPHQ

2/26/24

70,548

EUR

929

Klepierre SA

1-Day EONIA + 0.30%

Monthly

MSCS

8/08/23

100,114

EUR

9,658

Koc Holding

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

175,787

118,812

Koenig & Bauer AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

53,876

EUR

16,058

Konecranes OYJ

Euro STR + 0.28%

Monthly

SEBA

11/22/23

80,404

EUR

8,819

Kongsberg Gruppen ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

465,300

NOK

15,415

Koninklijke Ahold Delhaize NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

231,783

EUR

8,056

Koninklijke BAM Groep NV

Euro STR + 0.35%

Monthly

JPHQ

8/14/23

75,246

EUR

14,568

Koninklijke KPN NV

Euro STR + 0.35%

Monthly

JPHQ

10/11/23

89,782

EUR

14,694

Krones AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

295,431

EUR

37,018

Kuehne + Nagel AG

Euro STR + 0.35%

Monthly

JPHQ

8/11/23

75,508

CHF

7,828

Lancashire Holdings Ltd.

1-Day SONIA + 0.35%

Monthly

MSCS

2/19/24

157,151

GBP

624

Lar Espana Real Estate SOCIMI SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

57,088

EUR

9,787

Lastminute.com Group

1-Day SARON + 0.35%

Monthly

JPHQ

11/27/23

23,650

CHF

(346)

Legal & General Group PLC

1-Day SONIA + 0.30%

Monthly

MSCS

2/19/24

107,917

GBP

(1,294)

Leonardo SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

29,950

EUR

14,742

Leonteq AG

Euro STR + 0.35%

Monthly

JPHQ

7/14/23

176,934

CHF

38,505

LG Chem Ltd.

1-Day FEDEF + 0.30%

Monthly

MSCO

8/10/23

1,155,655

(26,001)

Liberty Media Corp.

1-Day FEDEF + 0.70%

Monthly

BOFA

10/15/23

1,736,351

(40,498)

Livent Corp.

1-Day FEDEF + 0.70%

Monthly

BOFA

2/05/24

1,385,468

3,842

Logista

1-Day EONIA + 0.35%

Monthly

MSCS

9/14/23

124,414

EUR

16,024

Lookers PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

46,033

GBP

11,605

Loomis AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/14/23

2,719,917

SEK

81,553

Lumentum Holdings

1-Day FEDEF + 0.70%

Monthly

BOFA

2/08/24

522,372

556

M.P. Evans Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

33,840

GBP

(555)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts - Long^a(continued)

Maire Tecnimont SpA

Euro STR + 0.35%

Monthly

JPHQ

8/14/23

160,870

EUR

$ 34,250

Maisons du Monde France SAS

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

94,914

EUR

25,564

Man Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/14/23

232,878

GBP

22,609

Map Aktif Adiperkasa PT

1-Day EONIA + 0.35%

Monthly

MSCS

2/26/24

64,102

EUR

517

Marks & Spencer Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

77,307

GBP

24,758

MAS PLC

1-Day SABOR + 0.30%

Monthly

MSCS

7/17/23

2,857,421

ZAR

8,055

Mavi Giyim Sanayi Ve Ticaret AS

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

105,942

13,208

Maxar Technologies Inc.

1-Day FEDEF + 0.30%

Monthly

BOFA

1/30/24

741,600

(2,336)

Media and Games Invest SE

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,139,754

SEK

(23,194)

Mediaset Espana Comunicacion SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

71,901

EUR

(1,968)

Melexis NV

Euro STR + 0.35%

Monthly

JPHQ

8/18/23

91,468

EUR

30,224

Mensch und Maschine Software SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

69,150

EUR

218

Mercedes-Benz Group AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

149,230

EUR

30,153

Mercialys SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

107,189

EUR

24,056

Merck KGaA

Euro STR + 0.35%

Monthly

JPHQ

7/14/23

205,067

EUR

370

Mercury Systems

1-Day FEDEF + 0.30%

Monthly

BOFA

2/05/24

131,897

(312)

MERLIN Properties SOCIMI SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

149,831

EUR

(4,963)

Mersen

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

98,244

EUR

50,403

Metall Zug AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

33,390

CHF

3,715

Migros Ticaret

1-Day FEDEF + 0.30%

Monthly

MSCS

9/08/23

86,605

19,839

Ming Yang

1-Day FEDEF + 0.30%

Monthly

MSCS

1/22/24

669,963

(39,189)

Mitchells & Butlers PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/23

4,917

GBP

743

Mitie Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

226,839

GBP

51,094

MLP SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

22,609

EUR

224

Moneysupermarket.com

1-Day SONIA + 0.35%

Monthly

MSCS

2/27/24

43,639

GBP

458

Morgan Advanced Materials

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

160,299

GBP

26,363

Morgan Sindall Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

198,366

GBP

(3,892)

Motus Holdings Ltd.

1-Day SABOR + 0.34%

Monthly

MSCS

7/17/23

2,606,448

ZAR

(7,987)

MPC Container Ships ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

749,604

NOK

(10,378)

MTN Group Ltd.

1-Day SABOR + 0.32%

Monthly

MSCS

7/13/23

3,179,148

ZAR

12,040

MTU Aero Engines AG

Euro STR + 0.35%

Monthly

JPHQ

8/01/23

89,224

EUR

25,188

Muenchener Rueckversicherungs Gesellschaft AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

63,672

EUR

1,251

National Express Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

8/25/23

155,218

GBP

(53,081)

National Grid PLC

1-Day SONIA + 0.40%

Monthly

MSCS

1/23/24

1,176,839

GBP

(14,562)

National Instruments

1-Day FEDEF + 0.30%

Monthly

BOFA

2/23/24

151,530

192

NatWest Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

122,423

GBP

32,211

NCC AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,866,021

SEK

(10,741)

Neinor Homes SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/23

116,548

EUR

(24,837)

NEPI Rockcastle NV

1-Day SABOR + 0.70%

Monthly

MSCS

11/17/23

2,186,289

ZAR

11,300

Netcare Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

10/02/23

2,123,494

ZAR

8,636

New Wave Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,052,822

SEK

21,200

New Work SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

64,490

EUR

14,191

Newriver Reit PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

121,206

GBP

1,999

Nexans

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

140,416

EUR

14,106

Next Fifteen Communications Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

110,498

GBP

9,077

Nilfisk Holding A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/12/23

379,154

DKK

(9,970)

NKT A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

11/27/23

934,224

DKK

(21,048)

NN Group NV

Euro STR + 0.35%

Monthly

JPHQ

7/14/23

222,752

EUR

(27,958)

Nokia Corp.

Euro STR + 0.28%

Monthly

SEBA

7/17/23

242,684

EUR

(6,401)

Nordea Bank ABP

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

829,510

SEK

7,973

Nordea Bank ABP

1-Week STIBOR + 0.28%

Monthly

SEBA

12/21/23

93,097

EUR

17,158

Norske Skog ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

1,120,131

NOK

5,951

Novo Nordisk AS

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

1,460,058

DKK

31,625

NSI NV

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

68,818

EUR

(3,754)

Nuvasive

1-Day FEDEF + 0.30%

Monthly

BOFA

2/10/24

103,752

(191)

OC Oerlikon

1-Day SARON + 0.35%

Monthly

JPHQ

10/19/23

62,256

CHF

(5,693)

OCI NV

Euro STR + 0.35%

Monthly

JPHQ

7/12/23

147,424

EUR

(22,599)

ODAS Elektrik Uretim ve Sanayi Ticaret AS

1-Day FEDEF + 0.30%

Monthly

MSCS

8/24/23

130,746

(11,247)

Okea ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

1,927,765

NOK

(28,945)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts - Long^a(continued)

Omnia Holdings Ltd.

1-Day SABOR + 0.31%

Monthly

MSCS

7/17/23

3,006,232

ZAR

$ (16,138)

OMV AG

Euro STR + 0.35%

Monthly

JPHQ

7/13/23

39,732

EUR

(3,130)

On The Beach Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

189,805

GBP

92,792

Ontex Group NV

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

20,582

EUR

3,852

Ordina NV

Euro STR + 0.35%

Monthly

JPHQ

7/13/23

167,617

EUR

12,129

Oriola Corp.

Euro STR + 0.28%

Monthly

SEBA

7/17/23

52,323

EUR

(14,554)

ORIOR AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

75,186

CHF

3,583

ORSERO

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

63,946

EUR

1,248

OSB Group

1-Day SONIA + 0.35%

Monthly

MSCS

9/12/23

182,060

GBP

36,906

Osram Licht AG

1-Day SARON + 0.35%

Monthly

JPHQ

11/27/23

131,123

CHF

5,823

Outokumpu OYJ

Euro STR + 0.28%

Monthly

SEBA

7/25/23

134,284

EUR

52,073

OVS SpA

Euro STR + 0.35%

Monthly

JPHQ

7/26/23

201,638

EUR

30,593

OZAK GMYO

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

158,401

24,316

Pagegroup PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

109,094

GBP

2,125

Palo Alto Networks Inc.

1-Day FEDEF + 0.70%

Monthly

BOFA

7/01/23

2,116,847

(8,420)

Pan African Resources PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

189,540

GBP

(63,400)

Pandox AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/01/23

1,909,245

SEK

3,081

Paragon Banking Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

2/01/24

186,373

GBP

2,504

Parsons Corp.

1-Day FEDEF + 0.70%

Monthly

BOFA

2/09/24

1,094,848

3,110

Patrizia

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

89,666

EUR

6,291

Per Aarsleff Holding A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

718,751

DKK

47,221

Peugeot Invest SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

110,625

EUR

23,506

PGE Polska Grupa Energetyczna SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/14/23

213,093

(26,892)

PORR AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

76,633

EUR

17,313

Poste Italiane SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

184,287

EUR

15,741

PPC Ltd.

1-Day SABOR + 0.32%

Monthly

MSCS

7/17/23

1,185,162

ZAR

8,828

Premier Foods PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

37,576

GBP

2,064

Progress Software Corp.

1-Day FEDEF + 0.70%

Monthly

BOFA

2/05/24

545,612

684

Proximus

Euro STR + 0.35%

Monthly

JPHQ

1/05/24

71,924

EUR

(6,150)

Prysmian SpA

Euro STR + 0.35%

Monthly

JPHQ

8/22/23

91,115

EUR

12,043

PSI Software AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

61,295

EUR

5,594

PSP

1-Day SARON + 0.35%

Monthly

JPHQ

11/29/23

16,140

CHF

PVA TePla AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

115,401

EUR

12,558

QIAGEN NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

153,454

EUR

(4,052)

QinetiQ Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/10/23

140,601

GBP

(4,817)

Quadient

1-Day EONIA + 0.30%

Monthly

MSCS

11/27/23

45,698

EUR

3,816

Qualtrics International

1-Day FEDEF + 0.30%

Monthly

BOFA

2/02/24

223,344

(573)

Ramsay Health Care Ltd.

1-Month BBSW + 0.40%

Monthly

BZWS

4/21/23

383,092

AUD

(2,020)

Rana Gruber ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

341,973

NOK

14,694

Randstad NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

89,188

EUR

8,782

Redefine Properties Ltd.

1-Day SABOR + 0.31%

Monthly

MSCS

7/12/23

345,890

ZAR

(32)

Renew Holdings PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

60,490

GBP

582

Renewi PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

104,061

GBP

5,497

Repsol SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/12/23

100,735

EUR

24,142

Resilient REIT

1-Day SABOR + 0.70%

Monthly

MSCS

11/28/23

2,289,215

ZAR

(2,716)

Retail Estates NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

125,684

EUR

19,432

Rexel

1-Day EONIA + 0.30%

Monthly

MSCS

7/13/23

148,388

EUR

82,495

Richemont

1-Day SARON + 0.35%

Monthly

JPHQ

7/31/23

130,834

CHF

52,020

Rightmove PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

138,662

GBP

(4,850)

Roche

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

258,091

CHF

(63,536)

Rockwool A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

1,183,311

DKK

(10,192)

Rothschild & Co.

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

46,509

EUR

22,210

RWE AG

1-Day EONIA + 0.40%

Monthly

MSCS

1/25/24

603,884

EUR

16,885

SA Corporate Real Estate Ltd.

1-Day SABOR + 0.34%

Monthly

MSCS

7/17/23

981,653

ZAR

663

Saab AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

811,051

SEK

39,360

Sagax AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/24/23

1,942,161

SEK

16,010

Saint Gobain

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

134,555

EUR

51,524

Sanlorenzo

Euro STR + 0.35%

Monthly

JPHQ

8/25/23

120,783

EUR

33,217

Sappi Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

11/27/23

2,980,761

ZAR

(9,385)

Saras

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

26,122

EUR

5,068

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts - Long^a(continued)

Sartorius AG

1-Day EONIA + 0.30%

Monthly

JPHQ

7/19/23

151,196

EUR

$ 4,037

Sasol Ltd.

1-Day SABOR + 0.33%

Monthly

MSCS

7/17/23

3,901,808

ZAR

(42,328)

SAVILLS PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

223,454

GBP

(1,597)

Scandi Standard AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

818,597

SEK

32,210

Schindler

1-Day SARON + 0.35%

Monthly

JPHQ

11/29/23

83,887

CHF

16,040

Scout24 SE

Euro STR + 0.35%

Monthly

JPHQ

12/06/23

176,948

EUR

6,357

SESA

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

156,156

EUR

13,590

SFS Group AG

1-Day SARON + 0.35%

Monthly

JPHQ

2/08/24

211,042

CHF

578

Shaw Communications

1-Day CORRA + 0.30%

Monthly

BOFA

1/31/24

3,225,648

CAD

(6,855)

Sibanye Stillwater Ltd.

1-Day SABOR + 0.31%

Monthly

MSCS

7/14/23

3,307,773

ZAR

(10,318)

Siegfried

1-Day SARON + 0.35%

Monthly

JPHQ

11/09/23

131,560

CHF

4,301

Siemens Energy AG

Euro STR + 0.35%

Monthly

JPHQ

12/06/23

117,185

EUR

5,198

Siemens Energy AG

Euro STR + 0.35%

Monthly

MSCS

3/01/24

74,719

EUR

(176)

Signify NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

146,700

EUR

14,074

SII

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

69,525

EUR

8,708

Silicon Motion Technology

1-Day FEDEF + 0.30%

Monthly

BOFA

1/29/24

806,640

(2,366)

Sinoma Science

1-Day FEDEF + 0.30%

Monthly

MSCS

2/05/24

339,212

(23,261)

SIPEF

Euro STR + 0.35%

Monthly

JPHQ

7/13/23

41,075

EUR

928

Sixt SE

Euro STR + 0.35%

Monthly

JPHQ

2/15/24

69,588

EUR

4,673

SMCP SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

104,052

EUR

42,569

Snam SpA

Euro STR + 0.35%

Monthly

JPHQ

10/13/23

85,903

EUR

(507)

Societe Generale SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

154,145

EUR

56,671

Solar A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/13/23

1,151,423

DKK

(5,784)

Solvay

Euro STR + 0.35%

Monthly

JPHQ

10/09/23

201,541

EUR

18,204

Sonova

Euro STR + 0.35%

Monthly

JPHQ

7/31/23

161,361

CHF

(6,670)

Sopra Steria Group SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

208,422

EUR

66,757

Southern Co.

1-Day FEDEF + 0.70%

Monthly

BOFA

2/28/24

830,361

2,230

Speedy Hire PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

97,556

GBP

(14,952)

Spirit Airlines

1-Day FEDEF + 0.30%

Monthly

BOFA

2/02/24

252,816

(757)

SSAB AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

692,188

SEK

30,828

SSE PLC

1-Day SONIA + 0.40%

Monthly

MSCS

9/26/23

890,205

GBP

4,479

SSP Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

12/04/23

128,796

GBP

16,643

Stadler Rail AG

Euro STR + 0.35%

Monthly

JPHQ

7/31/23

181,221

CHF

25,865

Standard Chartered PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

56,826

GBP

23,778

STEF

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

54,544

EUR

6,663

Stellantis NV

Euro STR + 0.35%

Monthly

JPHQ

7/12/23

172,266

EUR

37,664

SThree PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/12/23

141,846

GBP

35,329

STMicroelectronic NV

Euro STR

Monthly

JPHQ

2/28/24

35,656

EUR

(114)

Stockmann PLC

Euro STR + 0.28%

Monthly

SEBA

7/12/23

144,921

EUR

(36,848)

Stolt-Nielsen Ltd.

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

620,980

NOK

33,797

Stora Enso Oyj

Euro STR + 0.28%

Monthly

SEBA

10/23/23

125,887

EUR

(3,944)

Storskogen Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/23

1,066,392

SEK

2,194

STRABAG SE

Euro STR + 0.35%

Monthly

JPHQ

7/12/23

166,110

EUR

(8,798)

Sulzer Ltd.

1-Day SARON + 0.35%

Monthly

JPHQ

11/10/23

213,176

CHF

24,620

Sungrow Power

1-Day FEDEF + 0.30%

Monthly

MSCS

7/10/23

725,344

3,433

Sureserve Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

28,625

GBP

SUSE SA

Euro STR + 0.35%

Monthly

JPHQ

1/31/24

133,757

EUR

4,389

SUSS MicroTec SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

78,825

EUR

54,441

Swatch Group Ltd.

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

152,334

CHF

40,393

Swedish Orphan Biovitrum AB

1-Week STIBOR + 0.65%

Monthly

SEBA

7/13/23

2,944,268

SEK

21,784

Swiss Life Holding AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

124,248

CHF

20,130

Swissquote Group Holding SA

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

73,272

CHF

17,119

Sydbank A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/23

746,096

DKK

67,037

Sylvania Platinum Ltd.

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

86,149

GBP

29,453

Synlab AB

1-Month EURIBOR + 0.25%

Monthly

JPHQ

12/06/23

73,500

EUR

(29,791)

Talanx AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

243,668

EUR

29,743

Tauron Polska Energia SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

75,582

(11,230)

TBC Bank Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

54,253

GBP

65,751

TeamViewer AG

Euro STR + 0.35%

Monthly

JPHQ

8/01/23

216,129

EUR

82,349

Technip Energies NV

1-Day EONIA + 0.30%

Monthly

MSCS

8/07/23

162,467

EUR

80,808

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts - Long^a(continued)

Tegna Inc.

1-Day FEDEF + 0.30%

Monthly

BOFA

1/29/24

834,869

$ –

Telecom Plus PLC

1-Day SONIA + 0.35%

Monthly

MSCS

9/06/23

150,247

GBP

(5,279)

Telephone & Data Systems Inc.

1-Day FEDEF + 0.30%

Monthly

BOFA

2/10/24

304,560

(460)

Ten Square Games

1-Day FEDEF + 1.25%

Monthly

MSCS

1/05/24

94,514

(9,759)

Tessenderlo Group

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

95,475

EUR

1,783

TF1 Group

1-Day EONIA + 0.30%

Monthly

MSCS

7/12/23

271,549

EUR

29,944

Thales

1-Day EONIA + 0.30%

Monthly

MSCS

8/23/23

46,726

EUR

7,876

Tharisa PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

32,680

GBP

1,765

Thungela Resources Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

8/23/23

2,503,010

ZAR

(48,605)

ThyssenKrupp AG

Euro STR + 0.35%

Monthly

JPHQ

11/27/23

77,997

EUR

13,337

Tiger Brands Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

1/25/24

4,408,586

ZAR

13,841

Toshiba Corp.

1-Day MUTSCALM + 0.55%

Monthly

MSCO

8/25/23

62,733,227

JPY

(74,133)

TotalEnergies SE

1-Day EONIA + 0.30%

Monthly

MSCS

12/18/23

50,148

EUR

1,318

Trainline PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

184,433

GBP

(50,394)

Transocean Ltd.

1-Day FEDEF + 0.70%

Monthly

BOFA

2/10/24

1,348,122

35,030

Transtema Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

536,595

SEK

12,299

Trelleborg AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

725,151

SEK

17,354

TUI AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

89,046

EUR

12,742

Tullow Oil PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

73,726

GBP

(20,019)

Turkiye Hava Yollari

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/23

42,369

44,158

Tyler Technologies Inc.

SOFR + 0.35%

Monthly

GSCO

2/23/24

134,069

2,646

U.S. Steel

SOFR + 0.35%

Monthly

GSCO

2/23/24

1,665,182

117,694

u-blox AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

224,979

CHF

(23,710)

UBS Group AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/23

262,299

CHF

53,719

Umicore

Euro STR + 0.35%

Monthly

JPHQ

11/21/23

107,861

EUR

(8,364)

UniCredit SpA

Euro STR + 0.35%

Monthly

JPHQ

9/25/23

78,945

EUR

41,956

Unipol Gruppo SpA

Euro STR + 0.35%

Monthly

JPHQ

7/14/23

261,476

EUR

21,977

United Internet AG

Euro STR + 0.35%

Monthly

JPHQ

1/31/24

184,620

EUR

(4,220)

Univar Solutions

1-Day FEDEF + 0.30%

Monthly

BOFA

2/10/24

139,695

(251)

Universal Music Group NV

Euro STR + 0.35%

Monthly

JPHQ

10/12/23

73,341

EUR

6,958

Uponor OYJ

Euro STR + 0.28%

Monthly

SEBA

7/17/23

23,289

EUR

7,198

Valiant

Euro STR + 0.35%

Monthly

JPHQ

7/12/23

136,663

CHF

9,803

Var Energi

1-Week NIBOR + 0.28%

Monthly

SEBA

10/23/23

1,108,251

NOK

(11,232)

Veidekke

1-Week NIBOR + 0.28%

Monthly

SEBA

8/24/23

712,773

NOK

11,725

Veradigm Inc.

1-Day FEDEF + 0.70%

Monthly

BOFA

2/08/24

676,111

981

Verallia

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

105,587

EUR

80,166

Vertu Motors PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

102,097

GBP

11,784

VIB Vermoegen AG

Euro STR + 0.35%

Monthly

JPHQ

7/12/23

62,427

EUR

(3,401)

Vilmorin & Cie SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/23

36,884

EUR

6,689

Virgin Money PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

61,224

GBP

31,382

Vitesco Technologies

Euro STR + 0.35%

Monthly

JPHQ

9/04/23

158,727

EUR

23,303

Vodafone Group PLC

1-Day SONIA + 0.65%

Monthly

MSCO

2/08/24

1,853,842

GBP

(419,540)

Voestalpine AG

Euro STR + 0.35%

Monthly

JPHQ

12/18/23

67,215

EUR

30,004

Volkswagen AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

196,614

EUR

1,700

Vontobel

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

111,778

CHF

(440)

Vukile Property Fund Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

8/24/23

2,788,084

ZAR

826

Wacker Chemie AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

105,459

EUR

27,908

Watkin Jones PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

297,550

GBP

(163,008)

Webuild SpA

Euro STR

Monthly

JPHQ

7/17/23

121,251

EUR

12,304

Wereldhave NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

89,785

EUR

15,658

Wickes Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

199,007

GBP

(14,893)

Wienerberger AG

Euro STR + 0.35%

Monthly

JPHQ

10/09/23

138,992

EUR

34,008

Wihlborgs Fastigheter AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/23

1,719,572

SEK

25,953

Wolfspeed Inc.

SOFR + 0.35%

Monthly

GSCO

3/01/24

89,897

WPP PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/23

90,680

GBP

32,259

Wuestenrot & Wuerttembergische AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

75,610

EUR

8,959

XJ Goldwind

1-Day FEDEF + 0.30%

Monthly

MSCS

1/22/24

687,031

(25,078)

XTB

1-Day FEDEF + 1.25%

Monthly

MSCS

12/15/23

34,289

(622)

Yara International ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/23

1,453,132

NOK

26,149

YouGov

1-Day SONIA + 0.35%

Monthly

MSCS

10/27/23

42,618

GBP

(409)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts - Long^a(continued)

Zalando SE

Euro STR

Monthly

JPHQ

3/01/24

35,248

EUR

Zehnder

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

201,000

CHF

78,746

Zug Estates Holding AG

1-Day SARON + 0.35%

Monthly

JPHQ

11/27/23

18,162

CHF

916

Zumtobel Group AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/23

23,221

EUR

3,426

4,292,381

Equity Contracts – Short^c

AAK AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

1,989,334

SEK

(18,175)

AB Dynamics PLC

1-Day SONIA - 1.25%

Monthly

MSCS

7/18/23

45,395

GBP

(30,854)

Abrdn European Logistics Income PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

84,060

GBP

21,988

Acciones Fomento De Construcciones

1-Day EONIA - 1.75%

Monthly

MSCS

1/12/24

48,613

EUR

(1,463)

Accor SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

165,987

EUR

(44,776)

ACEA

Euro STR - 0.30%

Monthly

JPHQ

10/13/23

48,915

EUR

(4,143)

Acomo NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

52,721

EUR

(5,797)

adesso SE

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

66,971

EUR

(30,617)

Adevinta ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/17/23

611,508

NOK

(12,197)

Admiral Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

147,383

GBP

(27,098)

Adva Optical Networking SE

Euro STR - 7.30%

Monthly

JPHQ

1/30/24

53,183

EUR

(1,579)

AECI Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

9/20/23

2,500,456

ZAR

(10,680)

Agilyx

1-Week NIBOR - 4.25%

Monthly

SEBA

8/07/23

325,240

NOK

(3,447)

Aker BP ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/17/23

1,508,124

NOK

(4,279)

Aker Horizons

1-Week NIBOR - 4.25%

Monthly

SEBA

11/22/23

379,129

NOK

3,173

AkzoNobel NV

Euro STR - 0.30%

Monthly

JPHQ

8/28/23

171,954

EUR

(8,666)

Alcadon Group AB

1-Week STIBOR - 6.00%

Monthly

SEBA

7/17/23

155,375

SEK

2,023

Allegro

1-Day FEDEF - 2.13%

Monthly

MSCS

7/12/23

121,405

(3,606)

Allreal Holding AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

187,685

CHF

(14,681)

Ally Financial Inc.

1-Day FEDEF - 0.35%

Monthly

MSCS

12/29/23

214,571

6,108

Alm. Brand A/S

1-Week CIBOR - 0.75%

Monthly

SEBA

7/26/23

1,239,459

DKK

(41,013)

Almirall SA

1-Day EONIA - 0.35%

Monthly

MSCS

10/11/23

160,205

EUR

3,199

Alpha FX Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

86,798

GBP

(10,533)

Alstom SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/13/23

86,137

EUR

(23,502)

Aluflexpack AG

Euro STR - 0.85%

Monthly

JPHQ

7/17/23

32,878

CHF

(5,112)

Ambu A/S

1-Week CIBOR - 1.50%

Monthly

SEBA

7/17/23

809,423

DKK

(26,011)

Amplifon

Euro STR - 0.30%

Monthly

JPHQ

11/27/23

56,474

EUR

Amyris

1-Day FEDEF - 10.67%

Monthly

BOFA

2/01/24

32,030

(172)

AngloGold Ashanti Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

10/06/23

2,370,575

ZAR

(29,923)

Anheuser-Busch InBev SA/NV

Euro STR - 0.30%

Monthly

JPHQ

7/13/23

218,067

EUR

(17,297)

Anora Group PLC

Euro STR - 0.28%

Monthly

SEBA

7/17/23

81,104

EUR

16,767

Antares Vision

Euro STR - 2.65%

Monthly

JPHQ

8/07/23

19,249

EUR

1,914

Antin Infrastructure Partners

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

122,281

EUR

12,659

Antofagasta PLC

1-Day SONIA - 0.30%

Monthly

MSCS

2/15/24

127,693

GBP

11,608

Arbonia AG

1-Day SARON - 0.35%

Monthly

JPHQ

11/08/23

158,440

CHF

16,289

Arcelik

1-Day FEDEF - 5.00%

Monthly

MSCS

7/17/23

133,760

(90,925)

Argan SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

80,116

EUR

6,947

Aroundtown SA

Euro STR - 0.30%

Monthly

JPHQ

7/12/23

154,538

EUR

7,630

Ascential PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

91,444

GBP

(36,545)

Ascopiave SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

35,724

EUR

(5,219)

Aselsan AS

1-Day FEDEF - 7.50%

Monthly

MSCS

7/17/23

93,090

(123,723)

Ashmore Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/18/23

78,926

GBP

(30,068)

ASOS PLC

1-Day SONIA - 0.88%

Monthly

MSCS

9/29/23

35,793

GBP

(19,277)

Aspen Pharmacare Holdings Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/17/23

2,848,394

ZAR

4,358

AUTO1 Group SE

Euro STR - 0.75%

Monthly

JPHQ

7/14/23

179,368

EUR

26,562

Avanza Bank Holding AB

1-Week STIBOR - 0.75%

Monthly

SEBA

7/17/23

969,539

SEK

(1,544)

Azelis Holding SA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

49,003

EUR

736

B&M European Value Retail SA

1-Day SONIA - 0.30%

Monthly

MSCS

10/31/23

142,158

GBP

(75,034)

Bachem AG

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

167,249

CHF

(37,859)

Banca Generali SpA

Euro STR - 0.30%

Monthly

JPHQ

9/21/23

158,599

EUR

(3,980)

Bank OZK

1-Day FEDEF - 0.35%

Monthly

MSCS

12/29/23

48,277

(5,611)

Banque Cantonale Vaudoise

Euro STR - 0.35%

Monthly

JPHQ

7/12/23

183,832

CHF

16,227

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Short^c(continued)

Basic-Fit

Euro STR - 1.75%

Monthly

JPHQ

7/14/23

31,504

EUR

$ (11,974)

Basler AG

Euro STR - 1.30%

Monthly

JPHQ

7/17/23

47,528

EUR

2,911

BAWAG Group AG

Euro STR - 0.30%

Monthly

JPHQ

10/23/23

135,643

EUR

(24,429)

BayWa AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

159,906

EUR

11,499

BE Semiconductor Industries

Euro STR

Monthly

JPHQ

2/28/24

35,797

EUR

(236)

Befesa SA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

210,563

EUR

(65,657)

Beiersdorf AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

96,694

EUR

(12,173)

Beijer Alma AB

1-Week STIBOR - 0.28%

Monthly

SEBA

1/24/24

296,506

SEK

(1,216)

Beijer Ref AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

1,065,338

SEK

(8,999)

Belimo Holding AG

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

231,956

CHF

(45,391)

Berkeley Group Holdings PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/17/23

148,220

GBP

(16,595)

BFF Bank SpA

Euro STR - 0.30%

Monthly

JPHQ

10/16/23

38,806

EUR

(12,422)

BioMarin Pharmaceutical Inc.

SOFR - 0.35%

Monthly

GSCO

2/23/24

274,478

4,441

Block Inc.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/22/24

73,752

BMW

1-Day EONIA - 0.40%

Monthly

MSCS

12/13/23

515,240

EUR

8,205

Bollore SE

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

102,398

EUR

(15,598)

Bonava AB

1-Week STIBOR - 0.28%

Monthly

SEBA

1/24/24

417,208

SEK

10,005

Boohoo Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

9/01/23

84,420

GBP

(11,188)

Borussia Dortmund

Euro STR - 0.95%

Monthly

JPHQ

7/17/23

75,871

EUR

(11,473)

Bossard AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

208,530

CHF

(68,413)

Bufab AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

851,065

SEK

(4,318)

Burkhalter

1-Day SARON - 0.35%

Monthly

JPHQ

9/20/23

69,749

CHF

(2,131)

BW Energy Ltd.

1-Week NIBOR - 0.45%

Monthly

SEBA

7/17/23

358,326

NOK

(8,025)

Bystronic AG

Euro STR - 0.35%

Monthly

JPHQ

8/03/23

218,050

CHF

(53,474)

CA Immobilien Anlagen AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

227,120

EUR

41,710

Cadeler AS

1-Week NIBOR - 6.50%

Monthly

SEBA

7/17/23

1,195,442

NOK

(43,679)

CaixaBank SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/23

99,889

EUR

(40,836)

Campari

Euro STR - 0.30%

Monthly

JPHQ

7/31/23

114,335

EUR

(12,462)

Cancom SE

1-Month EURIBOR - 0.25%

Monthly

JPHQ

7/17/23

104,289

EUR

1,379

Capital One Financial Corp.

1-Day FEDEF - 0.35%

Monthly

MSCS

1/15/24

88,244

(3,106)

Capitec Bank Holdings Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/14/23

5,959,252

ZAR

27,443

Capricorn Energy PLC

1-Day SONIA - 0.30%

Monthly

MSCS

12/21/23

229,847

GBP

(574)

Carel Industries

Euro STR - 0.30%

Monthly

JPHQ

9/21/23

65,707

EUR

(13,443)

Carnival Corp.

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

192,845

GBP

(31,199)

Castellum AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

1,030,875

SEK

(214)

CCC SA

1-Day FEDEF - 12.75%

Monthly

MSCS

8/02/23

48,426

5,799

CD Projekt SA

1-Day FEDEF - 1.25%

Monthly

MSCS

7/17/23

109,757

(36,299)

Ceres Power Holdings PLC

1-Day SONIA - 1.38%

Monthly

MSCS

7/17/23

90,424

GBP

(14,924)

CGG SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

82,674

EUR

(12,585)

Chargeurs

1-Day EONIA - 0.75%

Monthly

MSCS

2/19/24

67,289

EUR

395

Chesnara PLC

1-Day SONIA - 0.30%

Monthly

MSCS

12/25/23

46,031

GBP

237

Chr. Hansen A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/17/23

900,971

DKK

1,440

Clicks Group Ltd.

1-Day SABOR - 1.25%

Monthly

MSCS

10/06/23

3,860,501

ZAR

10,342

Close Brothers Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/31/23

119,684

GBP

(99)

Cloudberry Clean Energy ASA

1-Week NIBOR - 1.00%

Monthly

SEBA

7/17/23

336,786

NOK

9,818

Cofinimmo

Euro STR - 0.30%

Monthly

JPHQ

10/13/23

129,029

EUR

(634)

Coloplast A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/17/23

1,096,923

DKK

(1,833)

Colruyt SA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

195,602

EUR

(3,537)

Concentric AB

1-Week STIBOR - 0.75%

Monthly

SEBA

7/17/23

431,994

SEK

(5,363)

Corbion NV

Euro STR - 0.30%

Monthly

JPHQ

7/12/23

178,576

EUR

(50,034)

COSMO Pharmaceuticals NV

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

90,374

CHF

(4,661)

Covestro AG

Euro STR - 0.30%

Monthly

JPHQ

11/06/23

136,326

EUR

(18,467)

Covivio SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

58,004

EUR

(5,455)

Credem

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

69,637

EUR

(21,619)

Credit Agricole SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

114,439

EUR

(35,410)

CTP NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

123,829

EUR

(29,884)

Curro Holdings

1-Day SABOR - 1.50%

Monthly

MSCS

1/08/24

1,150,402

ZAR

1,200

Cyfrowy Polsat SA

1-Day FEDEF - 0.50%

Monthly

MSCS

7/17/23

133,517

5,143

Daetwyler

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

232,016

CHF

(13,507)

Danone SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

130,202

EUR

(1,749)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Short^c(continued)

De La Rue PLC

1-Day SONIA - 0.66%

Monthly

MSCS

7/17/23

37,014

GBP

$ 4,295

Deliveroo PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

59,052

GBP

749

Delivery Hero SE

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

103,612

EUR

(3,055)

De'Longhi SpA

Euro STR - 0.30%

Monthly

JPHQ

7/25/23

232,887

EUR

(62,588)

Deutsche Beteiligungs AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

35,080

EUR

(6,367)

Deutsche Wohnen SE

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

54,554

EUR

(1,055)

DIC Asset AG

Euro STR - 0.75%

Monthly

JPHQ

2/09/24

106,483

EUR

542

D'Ieteren SA

Euro STR - 0.30%

Monthly

JPHQ

7/14/23

48,051

EUR

(2,332)

Digital Value SpA

Euro STR - 0.30%

Monthly

JPHQ

11/27/23

51,110

EUR

(823)

Dino Polska SA

1-Day FEDEF - 0.50%

Monthly

MSCS

7/14/23

172,383

(26,008)

Dis-Chem Pharmacies

1-Day SABOR - 0.50%

Monthly

MSCS

12/25/23

2,941,941

ZAR

11,001

Discovery Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/17/23

4,763,459

ZAR

(53,128)

DISH Network Corp.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/24/24

58,750

(180)

DLG Exhibitions & Events

1-Day SONIA - 0.25%

Monthly

MSCS

2/26/24

78,151

GBP

(1,120)

Dometic Group AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

1,962,719

SEK

(4,816)

Dottikon ES Holding AG

1-Day SARON - 1.40%

Monthly

JPHQ

7/17/23

222,865

CHF

447

DRDGOLD Ltd.

1-Day SABOR - 1.00%

Monthly

MSCS

7/17/23

554,783

ZAR

(12,143)

DSV A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/14/23

352,538

DKK

(12,495)

DT Capital Ltd.

1-Month HIBOR - 0.30%

Monthly

JPHQ

1/30/24

115,805

EUR

(12,134)

Dufry AG

1-Day SARON - 0.35%

Monthly

BZWS

11/17/23

2,134,547

CHF

(79,697)

Ebro Foods SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/13/23

148,310

EUR

(7,907)

Eckert & Ziegler AG

Euro STR - 0.30%

Monthly

JPHQ

8/21/23

188,900

EUR

(60,087)

Emmi

1-Day SARON - 0.35%

Monthly

JPHQ

9/04/23

147,969

CHF

(19,724)

Ems-chemie AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

158,694

CHF

(13,926)

ENAV SpA

Euro STR - 0.30%

Monthly

JPHQ

9/21/23

94,392

EUR

(7,862)

Encore Capital Group

1-Day FEDEF - 0.20%

Monthly

BOFA

2/02/24

489,410

1,576

ENEL SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

119,780

EUR

(13,490)

Energean PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

101,322

GBP

5,487

Entra ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/13/23

1,577,048

NOK

1,895

Epiroc AB

1-Week STIBOR - 0.28%

Monthly

SEBA

11/27/23

756,765

SEK

(811)

EQT AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

1,606,192

SEK

(8,192)

Equites Property Fund Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/17/23

1,101,573

ZAR

3,284

Eregli Demir ve Celik Fabrikalari TAS

1-Day FEDEF - 5.00%

Monthly

MSCS

7/14/23

100,949

(54,340)

Erste Group Bank AG

Euro STR - 0.30%

Monthly

JPHQ

10/12/23

82,815

EUR

(23,569)

Esprinet

Euro STR - 0.30%

Monthly

JPHQ

11/27/23

93,271

EUR

(3,699)

Essentra PLC

1-Day SONIA - 0.30%

Monthly

MSCS

9/01/23

142,559

GBP

(25,841)

Etsy Inc.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/24/24

174,830

Eurazeo SE

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

51,339

EUR

(4,044)

EuroAPI

1-Day EONIA - 0.30%

Monthly

MSCS

12/22/23

34,779

EUR

(4,675)

Euronav NV

Euro STR - 0.30%

Monthly

JPHQ

12/22/23

209,648

EUR

(31,171)

Euronext

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

103,273

EUR

2,954

Eurotech

Euro STR - 10.60%

Monthly

JPHQ

8/04/23

69,247

EUR

(3,862)

EXMAR

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

186,352

EUR

(3,235)

Faurecia SE

1-Day EONIA - 0.30%

Monthly

MSCS

8/09/23

58,150

EUR

(46,367)

Ferrari SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

132,064

EUR

(25,770)

Ferrovial SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/23

263,974

EUR

(17,525)

Fevertree Drinks PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/25/23

187,594

GBP

(30,587)

Fielmann AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

172,992

EUR

2,136

FinecoBank SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

184,041

EUR

(29,584)

flatexDEGIRO AG

1-Month EURIBOR - 0.70%

Monthly

JPHQ

12/06/23

101,572

EUR

(11,542)

Fluidra SA

1-Day EONIA - 0.35%

Monthly

MSCS

9/29/23

182,131

EUR

(20,151)

Flutter Entertainment PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/31/23

140,234

GBP

(49,173)

Fnac Darty SA

1-Day EONIA - 0.30%

Monthly

MSCS

1/29/24

163,268

EUR

(7,169)

Fortress REIT Ltd.

1-Day SABOR - 0.56%

Monthly

MSCS

7/12/23

4,456,242

ZAR

(1,844)

Foschini Group Ltd. (The)

1-Day SABOR - 0.50%

Monthly

MSCS

8/30/23

2,376,210

ZAR

2,054

Francaise Energie

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

90,320

EUR

14,948

Fresenius Medical Care AG & Co.

1-Day FEDEF - 0.50%

Monthly

JPHQ

11/20/23

96,561

EUR

(5,236)

Fresnillo PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

150,122

GBP

(19,031)

Friedrich Vorwerk Group SE

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

53,502

EUR

30,557

Galapagos NV

Euro STR - 0.30%

Monthly

JPHQ

1/09/24

75,142

EUR

15,841

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Short^c(continued)

Generali Group

Euro STR - 0.30%

Monthly

JPHQ

10/13/23

93,344

EUR

$ (12,001)

Genuit Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

168,678

GBP

17,500

Geo Group Inc. (The)

1-Day FEDEF - 0.20%

Monthly

BOFA

2/01/24

367,026

1,567

Getlink SE

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

257,864

EUR

33,345

GIMV NV

Euro STR - 0.30%

Monthly

JPHQ

12/15/23

101,678

EUR

1,922

Givaudan SA

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

89,100

CHF

4,121

Gjensidige Forsikring ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/17/23

903,786

NOK

3,818

Golden Ocean Group Ltd

1-Week NIBOR - 0.28%

Monthly

SEBA

1/10/24

637,792

NOK

(13,224)

GPW

1-Day FEDEF - 1.125%

Monthly

MSCS

12/22/23

33,044

(842)

Grand City Properties

Euro STR - 0.30%

Monthly

JPHQ

1/30/24

83,996

EUR

2,910

Granges AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

695,776

SEK

(5,747)

Great Portland Estates PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

261,824

GBP

(9,412)

Greatland Gold PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

162,697

GBP

21,574

Grenergy Renovables SA

1-Day EONIA - 1.75%

Monthly

MSCS

12/01/23

92,680

EUR

2,676

Grifols SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/23

140,631

EUR

10,741

Groupe SEB

1-Day EONIA - 0.30%

Monthly

MSCS

8/30/23

182,026

EUR

(126,404)

Groupe Bruxelles Lambert NV

Euro STR - 0.30%

Monthly

JPHQ

7/12/23

175,973

EUR

(8,326)

Gruppo MutuiOnline SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

70,409

EUR

(15,102)

Gurit

Euro STR - 1.20%

Monthly

JPHQ

7/17/23

33,253

CHF

(1,423)

GVS

Euro STR - 0.30%

Monthly

JPHQ

7/13/23

133,727

EUR

(14,117)

Gym Group PLC (The)

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

79,310

GBP

21,344

Halfords Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

10/11/23

148,205

GBP

(26,289)

Halma PLC

1-Day SONIA - 0.30%

Monthly

MSCS

10/27/23

68,746

GBP

894

Hamborner REIT AG

Euro STR - 0.30%

Monthly

JPHQ

9/27/23

75,734

EUR

(609)

Hansa Biopharma AB

1-Week STIBOR - 1.00%

Monthly

SEBA

7/17/23

367,769

SEK

2,167

Hektas

1-Day FEDEF - 15.00%

Monthly

MSCS

7/17/23

5,591

(190,812)

Helios Towers PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

127,431

GBP

15,967

Henry Boot PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

25,828

GBP

3,745

Hera

Euro STR - 0.30%

Monthly

JPHQ

11/27/23

152,036

EUR

9,233

Herbalife Nutrition Ltd.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/16/24

90,661

–

Hexagon Composites ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/17/23

939,694

NOK

(34,323)

Hexagon Purus ASA

1-Week NIBOR - 3.00%

Monthly

SEBA

8/28/23

419,902

NOK

(20,870)

HIAG Immobilien Holding AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

39,511

CHF

109

Hill & Smith Holdings PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/17/23

134,749

GBP

(44,752)

Hiscox Ltd. ORD

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

148,954

GBP

(45,644)

Horizonte Minerals PLC

1-Day SONIA - 11.00%

Monthly

MSCS

8/10/23

15,764

GBP

(6,337)

Hufvudstaden AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/12/23

588,157

SEK

(10,226)

Huhtamaki OYJ

Euro STR - 0.28%

Monthly

SEBA

7/13/23

99,536

EUR

7,674

Husqvarna AB

1-Week STIBOR - 0.28%

Monthly

SEBA

11/01/23

1,341,364

SEK

(44,053)

Hypoport SE

1-Day SABOR - 0.75%

Monthly

JPHQ

9/27/23

138,896

EUR

(31,578)

Icade SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

145,262

EUR

(25,610)

Idorsia

Euro STR - 6.50%

Monthly

JPHQ

7/17/23

106,836

CHF

15,735

IMAX

1-Day FEDEF - 0.20%

Monthly

BOFA

2/02/24

153,218

519

IMCD Group NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

40,289

EUR

(5,086)

IMI PLC

1-Day SONIA - 0.30%

Monthly

MSCS

10/26/23

58,918

GBP

(11,947)

Infrastrutture Wireless Italiane SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

136,246

EUR

(15,936)

InPost SA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

211,835

EUR

(35,992)

Instone Real Estate Group SE

Euro STR - 0.70%

Monthly

JPHQ

8/21/23

55,976

EUR

(5,509)

Integra LifeSciences Holdings Corp.

1-Day FEDEF - 0.70%

Monthly

BOFA

2/16/24

286,380

(862)

IntegraFin Holdings PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

115,661

GBP

(17,995)

Intercontinental Exchange Inc.

1-Day FEDEF - 0.35%

Monthly

MSCS

2/19/24

100,240

4,222

International Distributions SE

1-Day SONIA - 0.30%

Monthly

MSCS

1/17/24

72,520

GBP

(4,292)

Interparfums SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

95,960

EUR

(36,990)

Interroll Group

1-Day SARON - 0.35%

Monthly

JPHQ

10/26/23

121,843

CHF

(44,524)

Intertek Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/31/23

127,288

GBP

(6,479)

Investor AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/14/23

2,484,075

SEK

(42,432)

INVISIO AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

559,023

SEK

(29,079)

IQE PLC

1-Day SONIA - 1.25%

Monthly

MSCS

7/17/23

119,583

GBP

(28,617)

Italian Wine Brands SpA

Euro STR - 1.30%

Monthly

JPHQ

7/17/23

27,779

EUR

(103)

Italtile Ltd.

1-Day SABOR - 0.63%

Monthly

MSCS

8/08/23

248,472

ZAR

822

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Short^c(continued)

ITV PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

83,856

GBP

$ (34,478)

James Halstead PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

33,773

GBP

1,668

JCDecaux SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

149,201

EUR

(58,323)

Jenoptik AG NA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

187,821

EUR

(70,464)

JM AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

2,598,815

SEK

(64,782)

John Wood Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

116,048

GBP

(65,830)

Johnson Service Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

33,313

GBP

(6,654)

JTC PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

208,382

GBP

(46,994)

Jupiter Fund Management PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

151,450

GBP

(36,720)

Just Eat Takeaway.com NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

120,617

EUR

4,650

Juventus FC SpA

Euro STR - 3.20%

Monthly

JPHQ

9/01/23

17,160

EUR

(1,627)

Kahoot! ASA

1-Week NIBOR - 3.50%

Monthly

SEBA

7/17/23

669,350

NOK

3,232

Kambi Group PLC

1-Week STIBOR - 0.75%

Monthly

SEBA

10/11/23

1,471,722

SEK

(14,199)

Kardex

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

72,018

CHF

(4,536)

Karnov Group AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

570,682

SEK

5,200

KBC Groep NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

169,673

EUR

(56,880)

Kempower OYJ

Euro STR - 3.75%

Monthly

SEBA

7/17/23

29,546

EUR

(31,287)

Kerry Group PLC

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

128,832

EUR

5,327

Kety SA

1-Day FEDEF - 1.00%

Monthly

MSCS

7/17/23

64,028

(720)

KGHM Polska Miedz SA

1-Day FEDEF - 0.50%

Monthly

MSCS

8/18/23

145,088

(51,476)

Kingspan Group PLC

1-Day EONIA - 0.30%

Monthly

MSCS

12/07/23

91,268

EUR

(12,304)

Kinnevik AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

710,053

SEK

(4,246)

Kloeckner + Co SE NA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

280,338

EUR

(50,274)

Koninklijke DSM NV

Euro STR - 0.30%

Monthly

JPHQ

8/28/23

118,798

EUR

3,768

Koninklijke Philips NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

129,386

EUR

(18,024)

Landis+Gyr Group AG

1-Day SARON - 0.35%

Monthly

JPHQ

1/23/24

199,372

CHF

(6,581)

Lanxess AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

259,589

EUR

(51,652)

LEG Immobilien AG

Euro STR - 0.30%

Monthly

JPHQ

8/21/23

154,151

EUR

(1,162)

Legrand France SA

1-Day EONIA - 0.30%

Monthly

MSCS

8/09/23

52,491

EUR

(5,791)

Lenzing AG

Euro STR - 0.30%

Monthly

JPHQ

7/14/23

222,163

EUR

(7,833)

Liberty Media Corp.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/01/24

387,223

991

Liberty Media Corp.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/01/24

838,933

2,525

Liberty Media Corp.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/01/24

95,112

242

Life Healthcare Group Holdings Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

1/29/24

2,495,139

ZAR

(19,066)

Linea Directa Aseguradora SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/23

163,074

EUR

23,938

LISI

1-Day EONIA - 0.42%

Monthly

MSCS

2/19/24

32,656

EUR

(2,966)

Livent Corp.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/05/24

1,316,600

4,189

London Stock Exchange Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

170,444

GBP

9,226

L'Oreal SA

1-Day EONIA - 0.30%

Monthly

MSCS

8/09/23

65,934

EUR

(4,022)

Lotus Bakeries NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

189,090

EUR

(14,560)

Luceco PLC

1-Day SONIA - 0.35%

Monthly

MSCS

2/19/24

8,136

GBP

(102)

Lumentum Holdings

1-Day FEDEF - 0.20%

Monthly

BOFA

2/08/24

228,531

537

LU-VE SpA

Euro STR - 0.30%

Monthly

JPHQ

8/07/23

31,081

EUR

(13,542)

Luzerner Kantonalbank AG

1-Day SARON - 0.35%

Monthly

JPHQ

12/22/23

51,244

CHF

(289)

M&T Bank Corp.

1-Day FEDEF - 0.35%

Monthly

MSCS

12/29/23

48,926

(2,166)

Magnora ASA

1-Week NIBOR - 7.00%

Monthly

SEBA

7/17/23

292,810

NOK

(4,489)

Marel

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

14,422

EUR

(2,573)

Marlowe PLC

1-Day SONIA - 0.30%

Monthly

MSCS

9/01/23

112,463

GBP

19,755

MaxLinear

1-Day FEDEF - 0.20%

Monthly

BOFA

1/29/24

159,282

527

mBank SA

1-Day FEDEF - 0.50%

Monthly

MSCS

7/14/23

184,274

(135,201)

Medacta Group SA

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

111,815

CHF

(9,231)

Medartis AG

1-Day SARON - 0.85%

Monthly

JPHQ

7/17/23

40,205

CHF

7,054

Medicover AB

1-Week STIBOR - 0.28%

Monthly

SEBA

9/08/23

843,164

SEK

(27,814)

Melia Hotels International

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/23

109,375

EUR

(10,216)

Mercedes-Benz Group AG

1-Day EONIA - 0.40%

Monthly

MSCS

12/13/23

492,627

EUR

(1,757)

Meyer Burger AG

1-Day SARON - 0.95%

Monthly

JPHQ

7/14/23

182,858

CHF

(162,527)

Michelin

1-Day EONIA - 0.30%

Monthly

MSCS

12/11/23

33,540

EUR

(4,639)

Millennium

1-Day FEDEF - 0.50%

Monthly

MSCS

7/17/23

144,090

(65,197)

Mips AB

1-Week STIBOR - 0.28%

Monthly

SEBA

9/20/23

2,034,806

SEK

(75,972)

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Short^c(continued)

Mobimo Holdings AG

1-Day SARON - 0.35%

Monthly

JPHQ

1/23/24

179,324

CHF

$ 1,089

MoneyGram International Inc.

1-Day FEDEF - 0.35%

Monthly

MSCO

2/06/24

557,663

(43,147)

Montana

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

79,640

CHF

(1,612)

Morgan Stanley MSPSARKK Index

1-Day FEDEF - 0.46%

Monthly

MSCO

9/21/23

900,498

(6,195)

Morgan Stanley MSPSEGRL Index

1-Day SONIA - 1.50%

Monthly

MSCO

11/01/23

203,207

GBP

(27,011)

Morgan Stanley MSPSENTH Index

1-Day SONIA - 0.45%

Monthly

MSCO

11/01/23

197,048

GBP

(31,395)

Morgan Stanley MSPSGDXJ Index

1-Day FEDEF - 2.05%

Monthly

MSCO

6/19/23

773,886

40,545

Morgan Stanley MSPSIWM Index

1-Day FEDEF - 0.45%

Monthly

MSCS

9/21/23

2,288,058

(20,863)

Morgan Stanley MSPSKRE Index

1-Day FEDEF - 0.35%

Monthly

MSCO

9/21/23

423,787

5,726

Mr Price Group Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

8/30/23

3,728,952

ZAR

26,056

National Grid PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

98,088

GBP

1,210

NCC Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/13/23

27,416

GBP

3,244

Nel ASA

1-Week NIBOR - 7.00%

Monthly

SEBA

7/17/23

761,821

NOK

(458)

Neoen

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

121,838

EUR

16,601

Neste Corp.

Euro STR - 0.28%

Monthly

SEBA

7/17/23

150,426

EUR

(8,171)

Nestle SA

1-Day SARON - 0.35%

Monthly

JPHQ

11/27/23

51,484

CHF

3,197

New York Community Bancorp

1-Day FEDEF - 0.35%

Monthly

MSCS

12/29/23

48,206

441

Nexi SpA

Euro STR - 0.30%

Monthly

JPHQ

10/13/23

112,320

EUR

17,849

Nibe Industrier AB

1-Week STIBOR - 0.28%

Monthly

SEBA

8/11/23

809,180

SEK

(11,150)

Nokian Tyres PLC

Euro STR - 0.28%

Monthly

SEBA

8/23/23

46,951

EUR

10,038

Nolato AB

1-Week STIBOR - 0.28%

Monthly

SEBA

9/26/23

332,977

SEK

2,914

Nordex SE

Euro STR - 0.95%

Monthly

JPHQ

8/21/23

183,433

EUR

(64,630)

Nordnet AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

777,165

SEK

(41,103)

NP3 Fastigheter AB

1-Week STIBOR - 0.28%

Monthly

SEBA

1/24/24

331,655

SEK

2,798

NX Filtration NV

Euro STR - 2.65%

Monthly

JPHQ

8/07/23

19,952

EUR

(2,569)

Obrascon Huarte Lain SA

1-Day EONIA - 0.35%

Monthly

MSCS

9/01/23

120,250

EUR

5,299

Ocado Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

132,655

GBP

17,414

Oesterreichische Post AG

Euro STR - 3.80%

Monthly

JPHQ

8/23/23

117,727

EUR

(11,628)

Orange

1-Day EONIA - 0.30%

Monthly

MSCS

11/27/23

52,107

EUR

(5,894)

Oxford BioMedica PLC

1-Day SONIA - 0.30%

Monthly

MSCS

9/26/23

80,969

GBP

(52,801)

Palfinger AG

Euro STR - 0.30%

Monthly

JPHQ

7/12/23

104,052

EUR

(31,381)

Palo Alto Networks Inc.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/02/24

2,109,744

5,618

Parsons Corp.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/09/24

706,826

1,762

Peab AB

1-Week STIBOR - 0.28%

Monthly

SEBA

2/22/24

847,223

SEK

(1,097)

Pennon Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

109,507

GBP

9,905

Pepkor

1-Day SABOR - 0.50%

Monthly

MSCS

10/10/23

2,701,611

ZAR

11,766

Pernod Ricard

1-Day EONIA - 0.30%

Monthly

MSCS

11/27/23

51,895

EUR

(2,616)

Persimmon PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/18/23

212,115

GBP

(4,035)

Petrofac Ltd.

1-Day SONIA - 0.30%

Monthly

MSCS

9/01/23

161,649

GBP

56,118

Pharmanutra SpA

Euro STR - 0.30%

Monthly

JPHQ

1/10/24

19,646

EUR

990

Phoenix Group Holdings PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

209,299

GBP

(21,418)

Pick n Pay Group (The)

1-Day SABOR - 0.50%

Monthly

MSCS

12/22/23

650,955

ZAR

7,596

Picton Property Income Ltd.

1-Day SONIA - 0.30%

Monthly

MSCS

8/24/23

96,639

GBP

11,575

PNE AG

Euro STR - 0.70%

Monthly

JPHQ

7/13/23

105,040

EUR

23,141

Polar Capital Holdings PLC

1-Day SONIA - 0.77%

Monthly

MSCS

7/17/23

116,315

GBP

(29,367)

Polypeptide

1-Day SARON - 0.35%

Monthly

JPHQ

9/18/23

118,054

CHF

8,460

PostNL

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

115,451

EUR

6,015

PowerCell Sweden AB

1-Week STIBOR - 1.00%

Monthly

SEBA

7/17/23

246,164

SEK

1,462

Progress Software Corp.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/05/24

312,761

(105)

PRS REIT PLC (The)

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

83,000

GBP

(107)

Prudential PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/14/23

164,676

GBP

(63,389)

Rathbones Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/31/23

211,287

GBP

(36,178)

Ratos AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

764,526

SEK

(1,097)

Re:NewCell AB

1-Week STIBOR - 1.75%

Monthly

SEBA

7/17/23

841,740

SEK

2,465

Reckitt Benckiser Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

145,534

GBP

5,303

Recticel

Euro STR - 0.30%

Monthly

JPHQ

11/21/23

80,548

EUR

(12,439)

RELX PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

90,418

GBP

(9,085)

Remy Cointreau

1-Day EONIA - 0.30%

Monthly

MSCS

12/11/23

238,029

EUR

(5,610)

Renishaw PLC

1-Day SONIA - 0.30%

Monthly

MSCS

2/13/24

114,476

GBP

(2,097)

Restore PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/18/23

79,882

GBP

26,154

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Short^c(continued)

RHI Magnesita NV

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

181,926

GBP

$ (84,297)

Rieter

Euro STR - 0.35%

Monthly

JPHQ

7/24/23

64,165

CHF

(6,643)

Ringkjoebing Landbobank A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/17/23

1,017,697

DKK

(70,507)

Ritchie Bros Auctioneers

1-Day FEDEF - 0.20%

Monthly

BOFA

2/14/24

1,470,955

(418)

Robertet

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

32,685

EUR

(1,196)

Rotork PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

86,821

GBP

(38,465)

Royal Unibrew

1-Week CIBOR - 0.28%

Monthly

SEBA

11/27/23

1,963,470

DKK

1,773

RTL Group

Euro STR - 0.30%

Monthly

JPHQ

1/30/24

120,015

EUR

(2,590)

RVRC Holding

1-Week STIBOR - 0.28%

Monthly

SEBA

10/11/23

1,048,569

SEK

(21,287)

S4 Capital PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/24/23

100,328

GBP

(63,182)

Sabaf SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

34,608

EUR

3,664

Sabre Insurance Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

54,626

GBP

1,018

Sacyr SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/23

230,883

EUR

(104,777)

Saga PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

107,547

GBP

(22,827)

Saipem SpA

1-Month EURIBOR - 6.65%

Monthly

JPHQ

2/26/24

70,915

EUR

(2,241)

Salcef Group SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

141,462

EUR

(8,759)

Salmon Evolution ASA

1-Week NIBOR - 8.50%

Monthly

SEBA

7/12/23

1,386,274

NOK

6,739

Salvatore Ferragamo SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

94,189

EUR

(2,547)

Salzgitter AG

Euro STR - 0.30%

Monthly

JPHQ

11/01/23

20,655

EUR

(12,218)

Samsung SDI Co. Ltd.

1-Day FEDEF - 0.50%

Monthly

MSCO

7/11/23

841,565

59,769

Sandvik AB

1-Week STIBOR - 0.28%

Monthly

SEBA

11/27/23

431,510

SEK

(4,858)

Sanlam Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/17/23

1,063,866

ZAR

(5,964)

Sanoma Corp.

Euro STR - 0.28%

Monthly

SEBA

7/17/23

91,441

EUR

33,236

Santam Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/17/23

1,550,455

ZAR

(15,918)

Santander Bank Polska SA

1-Day FEDEF - 0.50%

Monthly

MSCS

7/17/23

91,315

(41,934)

SBM Offshore NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

180,894

EUR

5,916

Schibsted ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/17/23

1,410,190

NOK

(48,241)

Schoeller-Bleckmann Oilfield Equipment AG

Euro STR - 0.30%

Monthly

JPHQ

7/13/23

100,389

EUR

(11,572)

Schouw & Co. A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/17/23

582,855

DKK

(13,420)

Schweiter Technologies AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

141,303

CHF

(19,825)

Sdiptech AB

1-Week STIBOR - 1.00%

Monthly

SEBA

7/17/23

1,191,392

SEK

(20,308)

secunet Security Networks AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

81,430

EUR

(12,331)

Seeing Machines Ltd.

1-Day SONIA - 5.75%

Monthly

MSCS

8/04/23

38,098

GBP

(15,627)

Segro PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

53,777

GBP

11,295

SFC Energy AG

Euro STR - 7.00%

Monthly

JPHQ

7/17/23

18,854

EUR

(2,747)

Shoprite Holdings Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/17/23

2,223,319

ZAR

(11,946)

Shurgard

Euro STR - 0.30%

Monthly

JPHQ

2/13/24

110,404

EUR

2,430

Siemens Healthineers AG

Euro STR - 0.30%

Monthly

JPHQ

8/21/23

78,823

EUR

(1,775)

SIG Group AG

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

238,284

CHF

(27,556)

Signify Health

1-Day FEDEF - 0.35%

Monthly

MSCO

10/25/23

295,495

4,058

Signify Health

1-Day FEDEF - 0.35%

Monthly

BOFA

1/31/24

293,658

780

Sika

1-Day SARON - 0.35%

Monthly

JPHQ

11/08/23

118,442

CHF

(5,358)

SKAN AG

Euro STR - 0.35%

Monthly

JPHQ

7/17/23

156,074

CHF

(27,410)

Smart Metering Systems PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/12/23

228,837

GBP

1,335

Smith & Nephew PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

69,385

GBP

(6,534)

Software AG

Euro STR - 0.30%

Monthly

JPHQ

9/22/23

71,409

EUR

17,688

SoftwareONE

Euro STR - 0.35%

Monthly

JPHQ

7/13/23

18,618

CHF

(6,932)

Solaria Energia y Medio Ambiente SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/23

87,952

EUR

12,775

SolGold PLC

1-Day SONIA - 0.56%

Monthly

MSCS

7/17/23

84,118

GBP

17,655

Soltec Power Holdings SA

1-Day EONIA - 0.73%

Monthly

MSCS

7/17/23

136,199

EUR

(39,545)

Southern Co.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/24/24

63,060

Sparebank 1 Oestlandet

1-Week NIBOR - 0.28%

Monthly

SEBA

12/22/23

126,990

NOK

(658)

Sparebank Nord-Norge

1-Week NIBOR - 1.50%

Monthly

SEBA

9/20/23

353,696

NOK

(7,972)

Sparebank Nord-Norge

1-Week NIBOR - 1.50%

Monthly

SEBA

10/23/23

1,576,865

NOK

(21,061)

Spectris PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/17/23

122,030

GBP

(33,953)

Spinnova OYJ

Euro STR - 10.50%

Monthly

SEBA

8/08/23

31,719

EUR

3,799

St Galler Kantonalbank AG

1-Day SARON - 0.35%

Monthly

JPHQ

11/06/23

71,845

CHF

(4,769)

Steico SE

Euro STR - 0.95%

Monthly

JPHQ

2/09/24

80,742

EUR

(382)

Storytel AB

1-Week STIBOR - 7.50%

Monthly

SEBA

7/17/23

291,148

SEK

1,970

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Short^c(continued)

STOXX Europe 600 Utilities Index

1-Day EONIA - 0.45%

Monthly

MSCS

9/13/23

828,770

EUR

$ (4,116)

Straumann Group

1-Day SARON - 0.35%

Monthly

JPHQ

10/18/23

166,268

CHF

(35,664)

Strix Group PLC

1-Day SONIA - 2.00%

Monthly

MSCS

7/17/23

41,242

GBP

14,627

Stroeer SE & Co. KGaA

Euro STR

Monthly

JPHQ

7/17/23

97,506

EUR

(4,148)

Super Group Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/19/23

1,696,000

ZAR

(25,551)

Supermarket Income REIT

1-Day SONIA - 0.28%

Monthly

MSCS

9/15/23

165,811

GBP

23,540

Svenska Cellulosa AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

1,846,158

SEK

(496)

Swedencare AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/13/23

1,068,605

SEK

48,584

Sword Group SE

1-Day EONIA - 4.00%

Monthly

MSCS

7/17/23

36,938

EUR

(6,032)

Symrise AG

Euro STR - 0.30%

Monthly

JPHQ

9/27/23

67,944

EUR

6,368

TAG Immobilien AG

Euro STR - 0.30%

Monthly

JPHQ

8/16/23

127,773

EUR

9,254

Talenom OYJ

Euro STR - 2.50%

Monthly

SEBA

7/17/23

46,849

EUR

10,297

Talgo SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/23

117,967

EUR

(20,776)

Tamburi

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

209,583

EUR

(11,128)

Tate & Lyle PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

66,035

GBP

(2,614)

Technogym SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

171,009

EUR

(27,097)

Technoprobe

Euro STR - 0.30%

Monthly

JPHQ

10/16/23

45,136

EUR

6,160

Tecnicas Reunidas SA

1-Day EONIA - 3.13%

Monthly

MSCS

7/12/23

50,785

EUR

(28,679)

Telecom Italia

Euro STR - 0.75%

Monthly

JPHQ

7/14/23

159,851

EUR

(32,377)

Telefonica SA

1-Day EONIA - 0.35%

Monthly

MSCS

1/12/24

103,664

EUR

(3,259)

Tenaris SA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

147,211

EUR

7,358

Thermador Groupe SA

1-Day EONIA - 2.25%

Monthly

MSCS

8/16/23

33,742

EUR

(8,929)

Thule Group AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

2,532,559

SEK

(3,355)

Tinexta SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

238,610

EUR

(28,036)

Tomra Systems ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

1/08/24

461,510

NOK

3,890

Topdanmark A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/26/23

1,666,789

DKK

(12,285)

Tower Semiconductor Ltd.

1-Day FEDEF - 0.35%

Monthly

MSCO

7/07/23

385,210

42,873

Transaction Capital Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/17/23

5,622,798

ZAR

25,857

Transocean Ltd.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/01/24

1,171,000

3,125

Traton SE

Euro STR - 0.80%

Monthly

JPHQ

7/17/23

69,908

EUR

(4,759)

Treatt PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

154,942

GBP

40,850

Trigano

1-Day EONIA - 0.30%

Monthly

MSCS

8/09/23

49,771

EUR

(660)

Tritax EuroBox PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

88,196

GBP

21,511

Trustpilot Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

114,610

GBP

(59,619)

Tryg A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/13/23

2,170,197

DKK

5,878

Tubacex SA

1-Day EONIA - 1.63%

Monthly

MSCS

7/17/23

79,848

EUR

(17,251)

Turkiye Sinai Kalkinma Bankasi AS

1-Day FEDEF - 2.00%

Monthly

MSCS

1/23/24

49,373

7,997

Tyler Technologies Inc.

SOFR - 0.35%

Monthly

GSCO

3/01/24

279,049

(1,601)

U.S. Cellular

1-Day FEDEF - 0.20%

Monthly

BOFA

2/10/24

361,950

484

U.S. Steel

SOFR - 0.35%

Monthly

GSCO

2/23/24

1,490,691

(108,777)

Unilever

1-Day SONIA - 0.30%

Monthly

MSCS

10/16/23

131,446

GBP

(8,206)

UnipolSai

Euro STR - 0.30%

Monthly

JPHQ

11/27/23

88,015

EUR

(520)

United Utilities

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/23

36,336

GBP

1,202

UPM Kymmene Corp.

Euro STR - 0.28%

Monthly

SEBA

7/17/23

231,980

EUR

(36,801)

Urban Logistics REIT PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

137,358

GBP

10,852

Valley National Bancorp

1-Day FEDEF - 0.35%

Monthly

MSCS

12/29/23

47,405

(1,338)

Vallourec

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

144,369

EUR

(71,941)

Valmet OYJ

Euro STR - 0.28%

Monthly

SEBA

11/22/23

84,804

EUR

(22,372)

Veolia Environnement SA

1-Day EONIA - 0.30%

Monthly

MSCS

8/30/23

33,313

EUR

(10,532)

Veradigm Inc.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/08/24

548,130

1,398

Vestas Wind Systems A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/12/23

1,328,311

DKK

(40,152)

Vestel

1-Day FEDEF - 7.63%

Monthly

MSCS

9/08/23

88,881

(54,606)

VGP NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

148,184

EUR

(16,198)

Viaplay Group AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

2,975,245

SEK

(52,656)

Vicat SA

1-Day EONIA - 0.30%

Monthly

MSCS

8/08/23

134,464

EUR

(32,032)

Victrex PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/23

24,907

GBP

(43)

Vidrala SA

1-Day EONIA - 0.35%

Monthly

MSCS

9/29/23

153,839

EUR

(121,459)

Vienna Insurance Group AG

Euro STR - 0.30%

Monthly

JPHQ

12/18/23

77,887

EUR

(16,889)

Vivendi

1-Day EONIA - 0.30%

Monthly

MSCS

12/11/23

167,732

EUR

(7,919)

Vodacom Group Ltd.

1-Day SABOR - 0.75%

Monthly

MSCS

7/13/23

643,996

ZAR

2,214

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Value/Unrealized

Payment

Counter-

Maturity

Notional

Appreciation

Underlying Instrument

Financing Rate

Frequency

party

Date

Value^*

(Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Short^c(continued)

Volex PLC

1-Day SONIA - 0.30%

Monthly

MSCS

9/01/23

77,339

GBP

14,331

Volkswagen AG

1-Day EONIA - 0.40%

Monthly

MSCS

12/13/23

310,423

EUR

4,771

Voltalia SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/23

112,866

EUR

(10,854)

Vonovia SE

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

73,456

EUR

(3,647)

Waga Energy SA

1-Day EONIA - 0.75%

Monthly

MSCS

7/17/23

39,543

EUR

5,786

Warehouse REIT PLC

1-Day SONIA - 1.38%

Monthly

MSCS

7/17/23

73,549

GBP

21,067

Weir Group PLC

1-Day SONIA - 0.76%

Monthly

MSCS

2/19/24

88,895

GBP

(1,576)

Westwing Group SE

Euro STR - 2.55%

Monthly

JPHQ

7/17/23

28,133

EUR

(5,387)

Wiit SpA

Euro STR - 0.70%

Monthly

JPHQ

7/31/23

107,747

EUR

(30,307)

Wizz Air Holdings PLC

1-Day SONIA - 0.30%

Monthly

MSCS

12/19/23

154,796

GBP

(24,056)

Wolfspeed Inc.

SOFR - 0.35%

Monthly

GSCO

2/23/24

308,977

(820)

XP Power Ltd.

1-Day SONIA - 0.30%

Monthly

MSCS

8/31/23

129,037

GBP

(37,420)

Xvivo Perfusion AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/23

505,387

SEK

(2,158)

Ypsomed Holding AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/23

113,378

CHF

(12,164)

Zignago Vetro SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/23

96,823

EUR

(33,613)

(5,611,413)

Total - Total Return Swap Contracts

(1,319,032)

^* 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 Fair valued using significant unobservable inputs. See Note 7 regarding fair value investments.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)


Counterparty		Currency		Selected Portfolio
BNPP	BNP Paribas	ARS	Argentine Peso	ADR	American Depositary Receipt

BNYM	The Bank of New York Mellon Corp.	AUD	Australian Dollar	AONIA	Australian Interbank Offered Rate

BOFA	Bank of America, NA	BRL	Brazilian Real	ARM	Adjustable Rate Mortgage

BZWS	Barclays Bank PLC	CAD	Canadian Dollar	BADLAR	Argentina Deposit Rates BADLAR Private Banks ARS

CITI	Citigroup, NA	CHF	Swiss Franc	BBSW	Bank Bill Swap Rate

GSCO	Goldman Sachs International	CLP	Chilean Peso	BKBM	Bank Bill Benchmark Rate

HSBC	HSBC Bank PLC	CNY	Chinese Yuan	BRLCDI	Brazil Cetip Di Interbank Deposit Rate

JPHQ	JP Morgan Chase Bank, NA	COP	Colombian Peso	CAC	Cotation Assistee en Continu

MLCO	Merrill Lynch & Co., Inc.	CZK	Czech Koruna	CBOE	Chicago Board Options Exchange

MSCO	Morgan Stanley & Co. LLC	DKK	Danish Krone	CIBOR	Copenhagen Interbank Offered Rate

MSCS	Morgan Stanley Capital Services LLC	DOP	Dominican Peso	CLO	Collateralized Loan Obligation

SEBA	Skandinaviska Enskilda Banken AB	EUR	Euro	CLP TNA	Chilean Peso Floating Rate Index

		GBP	British Pound	CNRR007	China 7-Day Reverse Repo Rate

		HKD	Hong Kong Dollar	CORRA	Canadian Overnight Repo Rate Average

Index		HUF	Hungarian Forint	CZEONIA	Czech Overnight Index Average

CDX.NA.HY	CDX North America High Yield Index	INR	Indian Rupee	DAX	Deutscher Aktienindex

		JPY	Japanese Yen	DJIA	Dow Jones Industrial Average

		KRW	South Korean Won	EONIA	Euro OverNight Index Average

		MXN	Mexican Peso	ETF	Exchange Traded Fund

		MYR	Malaysian Ringgit	EURIBOR	Euro Interbank Offered Rate

		NOK	Norwegian Krone	FEDEF	Federal Funds Effective Rate

		NZD	New Zealand Dollar	FHLMC	Federal Home Loan Mortgage Corp.

		PEN	Peruvian Nuevo Sol	FNMA	Federal National Mortgage Association

		PHP	Philippine Peso	FRN	Floating Rate Note

		PLN	Polish Zloty	FTSE	Financial Times Stock Exchange

		RON	Romanian Leu	HIBOR	Hong Kong Interbank Offered Rate

		SEK	Swedish Krona	JGB	Japanese Government Bond

		SGD	Singapore Dollar	JIBAR	Johannesburg Interbank Agreed Rate

		THB	Thai Baht	KDR	Korean Depositary Receipt

		TWD	Taiwan Dollar	KLIBOR	Kuala Lumpur Interbank Offered Rate

		USD	United States Dollar	LIBOR	London InterBank Offered Rate

		ZAR	South African Rand	MIBOR	Mumbai Interbank Offered Rate

				MUTSCALM	Japan Unsecured Overnight Call Rate

				NIBOR	Norwegian Interbank Offered Rate

				OBFR	Overnight Bank Funding Rate

				PIK	Payment In-Kind

				RC	Revolving Loan Commitment

				REIT	Real Estate Investment Trust

				SABOR	South African Benchmark Overnight Rate

				SARON	Swiss Average Rate Overnight

				SIBCSORA	Singapore Overnight Rate Average

				SOFR	Secured Overnight Financing Rate

				SONIA	Sterling Overnight Index Average

				SPDR	Standard & Poor’s Depositary Receipt

				STIBOR	Stockholm Interbank Offered Rate

				STR	Short Term Rate

				TAIBOR	Taiwan Interbank Offered Rate

				THOR	Thai Overnight Repurchase Rate

				TOPIX	Tokyo Price Index

				WIBOR	Warsaw Interbank Offered Rate

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Schedule of Investments, February 28, 2023 (unaudited)

K2 Long Short Credit Fund


	Country		Shares/ Warrants/ Rights		Value

Common Stocks and Other Equity Interests 1.0%
Aerospace & Defense 0.0%^†
^aSatellogic Inc., 1/25/27, wts.		United States		603	$	147

Communications Equipment 0.0%^†
aRiverbed Technology Inc.		United States		3,479		887

Diversified Financial Services 0.2%
^aAequi Acquisition Corp., A, 11/30/27, wts.		United States		146		15
^aAfrican Gold Acquisition Corp., A, 3/13/28, wts.		United States		1,393		—
^aAgile Growth Corp., A, 12/31/27, wts.		United States		382		1
^aBlue Whale Acquisition Corp. I, A, 7/09/23, wts.		United Arab Emirates		297		55
^aCrystal Peak Acquisition, A		Netherlands		1,993		19,930
^aCrystal Peak Acquisition, A, 6/22/26, wts.		Netherlands		802		401
^aDHC Acquisition Corp., A, 12/31/27, wts.		United States		71		3
^aElliott Opportunity II Corp., A, 3/02/26, wts.		United States		333		49
^aFast Acquisition Corp. II, A, 3/16/26, wts.		United States		53		15
^aForum Merger IV Corp., A, 12/31/27, wts.		United States		206		41
^aFusion Acquisition Corp. II, A, 12/31/27, wts.		United States		318		13
^aGrowth For Good Acquisition Corp., Contingent Value, rts., 6/14/23		United States		1,518		118
^aHedosophia European Growth		United Kingdom		1,142		11,837
^aJackson Acquisition Co., A, 12/31/28, wts.		United States		880		14
^aLandcadia Holdings IV Inc., A, 3/29/28, wts.		United States		343		63
^aLDH Growth Corp. I, A, 12/31/28, wts.		United States		28		1
^aLead Edge Growth Opportunities Ltd., A, 12/31/28, wts.		United States		344		8
^aObotech Acquisition SE, A		Luxembourg		1,240		12,984
^aObotech Acquisition SE, A, 4/30/26, wts.		Luxembourg		413		44
^aPegasus Acquisition Co. Europe BV, A		Netherlands		1,768		18,326
^aSouthport Acquisition Corp., 5/24/28, wts.		United States		1,466		50
^aSpree Acquisition Corp. 1 Ltd., 12/22/28, wts.		Israel		909		50
^aTarget Global Acquisition I Corp., A, 12/31/27, wts.		Israel		1,043		125
^aTeract SA, 11/16/25, wts.		France		1,165		74
^aTwin Ridge Capital Acquisition Corp., A		United States		2,202		22,460
^aZimmer Energy Transition Acquisition Corp., A, 5/14/23, wts.		United States		703		129

						86,806

Hotels, Restaurants & Leisure 0.0%^†
^aHomeToGo SE, 12/31/25, wts.		Luxembourg		210		—

Independent Power & Renewable Electricity Producers 0.4%
Clearway Energy Inc., A		United States		6,911		205,326

Oil, Gas & Consumable Fuels 0.4%
^aBighorn Permian Resources LLC		United States		1,346		34,996
Targa Resources Corp.		United States		2,078		153,980

						188,976

Professional Services 0.0%^†
^a,b,cAcosta Inc.		United States		923		7,569

Specialty Retail 0.0%^†
^aCarvana Co., A		United States		1		9

Total Common Stocks and Other Equity Interests
(Cost $514,303)						489,720

Quarterly Schedule of Investments | See Notes to Consolidated Schedules of Investments.

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)


	Country		Shares/ Warrants			Value

Convertible Preferred Stocks (Cost $50,262) 0.1%
Professional Services 0.1%
^b,cAcosta Inc., cvt. pfd.		United States		1,145		$	50,266


Preferred Stocks 0.0%^†
Communications Equipment 0.0%^†
^aRiverbed Technology Inc., pfd., A		United States		2,381			607

Thrifts & Mortgage Finance 0.0%^†
FHLMC, 8.375%, pfd., Z		United States		2,420			5,131
FNMA, 8.25%, pfd., S		United States		4,475			10,024

							15,155

Total Preferred Stocks (Cost $87,500)							15,762

				Principal Amount^*

Convertible Bonds 1.1%
Airlines 0.3%
^dAir France-KLM, senior note, Reg S, 0.125%, 3/25/26		France		9,222	EUR		166,833

Diversified Financial Services 0.1%
Lendingtree Inc., senior note, 0.50%, 7/15/25		United States		62,000			48,980

Internet & Direct Marketing Retail 0.1%
The Realreal Inc., senior note, 1.00%, 3/01/28		United States		55,000			21,109

Leisure Products 0.1%
Peloton Interactive Inc., senior note, zero cpn., 2/15/26		United States		52,000			40,811

Real Estate Management & Development 0.5%
^dOpendoor Technologies Inc., senior note, 144A, 0.25%, 8/15/26		United States		233,000			109,379
Realogy Group LLC / Realogy Co.-Issuer Corp., senior note,
0.25%, 6/15/26		United States		122,000			85,583
Redfin Corp., senior note,
0.50%, 4/01/27		United States		76,000			46,465
zero cpn., 10/15/25		United States		18,000			12,960

							254,387

Total Convertible Bonds (Cost $564,485)							532,120


Corporate Bonds and Notes 23.9%
Airlines 0.1%
^dAllegiant Travel Co., senior secured note, 144A, 7.25%, 8/15/27		United States		42,000			41,303

Automobiles 1.6%
^dAston Martin Capital Holdings Ltd., senior secured note, 144A,
10.50%, 11/30/25		United Kingdom		400,000			399,474
Ford Motor Credit Co. LLC, senior note, 5.125%, 6/16/25		United States		348,000			336,342
^dFrontier Communications Holdings LLC, senior secured note,
144A, 8.75%, 5/15/30		United States		66,000			66,802

							802,618

Capital Markets 0.2%
Blackstone Private Credit Fund, senior note,
2.625%, 12/15/26		United States		58,000			49,304
3.25%, 3/15/27		United States		57,000			49,126

							98,430

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

Country

Principal
Amount^*

Value

Corporate Bonds and Notes (continued)

Chemicals 0.5%

^dPolar US Borrower LLC / Schenectady International Group Inc.,

senior note, 144A, 6.75%, 5/15/26

United States

500,000

234,872

Construction Materials 0.6%

^dSRM Escrow Issuer LLC, senior secured note, 144A, 6.00%,

11/01/28

United States

354,000

314,587

Diversified Consumer Services 0.1%

^dThe Hertz Corp., senior note, 144A, 4.625%, 12/01/26

United States

80,000

71,330

Diversified Financial Services 2.1%

^dAthenahealth Group Inc., senior note, 144A, 6.50%, 2/15/30

United States

402,000

318,466

^dJane Street Group / JSG Finance Inc., senior secured note, 144A,

4.50%, 11/15/29

United States

463,000

406,894

^dVistajet Malta Finance PLC / XO Management Holding Inc.,

senior note, 144A, 6.375%, 2/01/30

Switzerland

355,000

311,207

1,036,567

Diversified Telecommunication Services 1.5%

^dAltice France Holding SA, senior secured note, 144A, 10.50%,

5/15/27

Luxembourg

200,000

165,366

^dLevel 3 Financing Inc., senior note, 144A, 4.625%, 9/15/27

United States

332,000

248,475

^dLorca Telecom Bondco SA, senior secured note, Reg S, 4.00%,

9/18/27

Spain

100,000

EUR

95,600

^dVMED O2 UK Financing I PLC, senior secured bond, Reg S,

4.50%, 7/15/31

United Kingdom

248,000

GBP

234,917

744,358

Electric Utilities 0.9%

^dEP Infrastructure AS, senior note, Reg S, 1.698%, 7/30/26

Czech Republic

100,000

EUR

87,128

^dEskom Holdings SOC Ltd., senior bond, Reg S, 6.75%, 8/06/23

South Africa

252,000

251,055

Pacific Gas and Electric Co., secured bond,

4.95%, 7/01/50

United States

84,557

66,912

3.50%, 8/01/50

United States

63,000

39,656

444,751

Energy Equipment & Services 0.5%

^dSolaris Midstream Holdings LLC, senior note, 144A, 7.625%,

4/01/26

United States

264,000

260,987

Equity Real Estate Investment Trusts (REITs) 0.1%

^dVici Properties LP / Vici Note Co. Inc., senior bond, 144A,

4.125%, 8/15/30

United States

83,000

71,769

Food & Staples Retailing 0.7%

^dChobani LLC / Chobani Finance Corp. Inc., senior note, 144A,

7.50%, 4/15/25

United States

383,000

373,502

Gas Utilities 0.2%

^dEustream AS, senior note, Reg S, 1.625%, 6/25/27

Slovak Republic

100,000

EUR

76,459

Health Care Providers & Services 0.4%

^dRP Escrow Issuer LLC, senior secured note, 144A, 5.25%,

12/15/25

United States

283,000

221,477

Health Care Technology 0.2%

^d,eCloud Software Group Holdings Inc., senior secured note, 144A,

6.50%, 3/31/29

United States

138,000

119,683

Hotels, Restaurants & Leisure 1.2%

^dCarnival Corp., 144A,

senior note, 6.00%, 5/01/29

United States

108,000

84,240

senior secured note, 9.875%, 8/01/27

United States

68,000

69,297

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)


	Country		Principal Amount^*			Value

Corporate Bonds and Notes (continued)
Hotels, Restaurants & Leisure (continued)
^dCarnival Corp., 144A, (continued) senior secured note, 4.00%, 8/01/28		United States		63,000		$	53,324
^dCarnival Holdings Bermuda Ltd., senior note, 144A, 10.375%, 5/01/28		United States		191,000			204,542
^dRoyal Caribbean Cruises Ltd., 144A, senior secured note, 8.25%, 1/15/29		United States		108,000			111,923
senior note, 9.25%, 1/15/29		United States		70,000			74,314

							597,640

Household Durables 1.4%
^dK. Hovnanian Enterprises Inc., senior secured note, 144A,
^e7.75%, 2/15/26		United States		446,000			434,685
10.50%, 2/15/26		United States		250,000			253,032

							687,717

Industrial Conglomerates 0.0%^†
^dApi Group de Inc., senior note, 144A, 4.75%, 10/15/29		United States		25,000			22,343

Internet & Direct Marketing Retail 0.6%
^dProsus NV, Reg S,
senior bond, 1.985%, 7/13/33		China		127,000	EUR		93,344
senior bond, 2.778%, 1/19/34		China		100,000	EUR		77,758
senior note, 3.257%, 1/19/27		China		100,000			88,996
^dRakuten Group Inc., senior note, 144A, 10.25%, 11/30/24		Japan		27,000			27,103

							287,201

IT Services 1.0%
^dHurricane Finance PLC, senior secured note, Reg S, 8.00%, 10/15/25		United Kingdom		234,000	GBP		260,669
^dVirtusa Corp., senior note, 144A, 7.125%, 12/15/28		United States		286,000			237,845

							498,514

Leisure Products 0.5%
^dMattel Inc., senior note, 144A, 3.375%, 4/01/26		United States		280,000			257,240

Machinery 0.6%
^dChart Industries Inc., senior secured note, 144A, 7.50%, 1/01/30		United States		61,000			61,991
^dTK Elevator US Newco Inc., senior secured note, 144A, 5.25%, 7/15/27		Germany		264,000			239,446

							301,437

Media 1.1%
^dAdvantage Sales & Marketing Inc., senior secured note, 144A, 6.50%, 11/15/28		United States		201,000			153,793
Charter Communications Operating LLC / Charter
Communications Operating Capital, senior secured bond, 3.95%, 6/30/62		United States		178,000			106,875
^dCSC Holdings LLC, senior bond, 144A, 5.50%, 4/15/27		United States		87,000			75,772
^dDISH DBS Corp., senior secured note, 144A, 5.75%, 12/01/28		United States		67,000			53,645
TEGNA Inc., senior note, 4.625%, 3/15/28		United States		185,000			165,344

							555,429

Multiline Retail 0.2%
Kohl’s Corp., senior bond, 5.55%, 7/17/45		United States		156,000			100,814

Oil, Gas & Consumable Fuels 3.8%
Energy Transfer LP, senior bond,
6.125%, 12/15/45		United States		25,000			23,442
5.00%, 5/15/50		United States		64,000			52,545

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)


	Country		Principal Amount^*			Value

Corporate Bonds and Notes (continued)
Oil, Gas & Consumable Fuels (continued)
^dGreensaif Pipelines Bidco SARL, senior secured bond, 144A,
6.129%, 2/23/38		Saudi Arabia		207,000		$	206,788
6.51%, 2/23/42		Saudi Arabia		200,000			204,150
^dMoss Creek Resources Holdings Inc., senior note, 144A,
7.50%, 1/15/26		United States		49,000			44,096
10.50%, 5/15/27		United States		107,000			100,696
^dNew Fortress Energy Inc., senior secured note, 144A, 6.75%,
9/15/25		United States		373,000			350,184
^dNorthern Oil And Gas Inc., senior note, 144A, 8.125%, 3/01/28		United States		34,000			32,841
Petroleos Mexicanos,
senior bond, 6.75%, 9/21/47		Mexico		200,000			130,243
senior note, 6.50%, 3/13/27		Mexico		206,000			187,715
Southwestern Energy Co., senior bond, 4.75%, 2/01/32		United States		278,000			239,191
Targa Resources Corp., senior bond, 6.50%, 2/15/53		United States		18,000			17,722
^dVenture Global Calcasieu Pass LLC, senior secured bond, 144A,
3.875%, 11/01/33		United States		381,000			311,067
Vital Energy Inc., senior note, 9.50%, 1/15/25		United States		22,000			22,199

							1,922,879

Pharmaceuticals 1.3%
^d1375209 Bc Ltd., senior secured note, 144A, 9.00%, 1/30/28		Canada		171,000			170,894
^dBausch Health Cos. Inc., senior secured note, 144A, 5.50%,
11/01/25		United States		183,000			159,366
^dOrganon & Co. / Organon Foreign Debt Co.-Issuer BV, senior
bond, 144A, 5.125%, 4/30/31		United States		355,000			301,734

							631,994

Road & Rail 0.5%
^dTransnet SOC Ltd., senior note, 144A, 8.25%, 2/06/28		South Africa		262,000			263,241

Software 0.1%
Oracle Corp., senior bond, 3.85%, 4/01/60		United States		61,000			40,731

Specialty Retail 1.7%
^dCarvana Co., senior note, 144A,
5.625%, 10/01/25		United States		319,000			195,053
5.50%, 4/15/27		United States		63,000			32,198
5.875%, 10/01/28		United States		65,000			31,325
4.875%, 9/01/29		United States		122,000			57,863
10.25%, 5/01/30		United States		323,000			202,238
^dDouglas GMBH, senior secured note, Reg S, 6.00%, 4/08/26		Germany		231,000	EUR		215,558
^dGuitar Center Inc., senior secured note, 144A, 8.50%, 1/15/26		United States		140,000			122,063

							856,298

Textiles, Apparel & Luxury Goods 0.2%
^dHanesbrands Inc., senior note, 144A, 4.625%, 5/15/24		United States		75,000			74,994

Total Corporate Bonds and Notes (Cost $13,032,689)							12,011,165

^fSenior Floating Rate Interests 1.3%
Communications Equipment 0.1%
^gRiverbed Technology Inc., Exit Term Loan, PIK, 7.00% (cash), (1-
Month USD LIBOR + 6.00%), 12/08/26		United States		88,929			32,404

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)


	Country		Principal Amount^*			Value

^fSenior Floating Rate Interests (continued)
Construction Materials 0.0%^†
^h Oldcastle BuildingEnvelope Inc., Term Loan RC, 7.303%, (1- Month SOFR + 3.75%), 4/29/27		United States		8,362		$	7,317

Consumer Discretionary Services 0.3%
Travel Leaders Group LLC, Term Loan B, 8.635%, (1-Month USD LIBOR + 4.00%), 1/25/24		United States		140,417			130,535

Equity Real Estate Investment Trusts (REITs) 0.1%
McCarthy & Stone PLC, Term Loan B, 7.00%, (1-Month USD LIBOR + 7.00%), 12/16/25		United Kingdom		50,969	GBP		53,031

Food & Staples Retailing 0.2%
^hUpfield Group BV, Term Loan RC, 5.429%, (3-Month EURIBOR + 3.00%), 1/02/25		Netherlands		120,960			113,866

Health Services 0.0%^†
OpenText Corp., Initial Term Loan, 8.135%, (1-Month SOFR + 3.60%), 8/27/29		United States		11,942			11,941

Media 0.1%
Advantage Sales & Marketing Inc., Term Loan B1, 8.884%, (3- Month USD LIBOR + 4.50%), 10/28/27		United States		34,054			28,167
Cablevision SA, Term Loan B, 6.838%, (1-Month USD LIBOR + 2.25%), 7/17/25		United States		36,715			35,542
CSC Holdings LLC, Term Loan B, 9.063%, (1-Month USD LIBOR + 2.25%), 4/15/27		United States		7,032			6,601

							70,310

Oil, Gas & Consumable Fuels 0.1%
Euro Garage Ltd., Term Loan B1, 6.752%, (3-Month EURIBOR + 4.00%), 2/07/25		United States		33,515			32,017

Pharmaceuticals 0.2%
^hBausch Health Cos. Inc., Term Loan B, 9.914%, (1-Month SOFR + 5.25%), 2/01/27		United States		153,131			121,322

Software 0.2%
^hCitrix Systems Inc., Term Loan B, 9.18%, (1-Month SOFR + 4.50%), 3/30/29		United States		85,883			79,898

Textiles, Apparel & Luxury Goods 0.0%^†
^hVarsity Brands, Initial Term Loan, 8.135%, (1-Month USD LIBOR + 3.50%), 12/16/24		United States		6,040			5,857

Total Senior Floating Rate Interests (Cost $760,252)							658,498

Foreign Government and Agency Securities 5.5%
^dGovernment of Angola, senior bond, Reg S,
8.00%, 11/26/29		Angola		274,000			247,082
9.375%, 5/08/48		Angola		200,000			170,940
Government of Argentina, senior bond, 1.50%, 7/09/35		Argentina		1,070,495			307,016
^dGovernment of Dominican Republic,
senior bond, Reg S, 5.875%, 1/30/60		Dominican Republic		300,000			226,348
senior note, 144A, 7.05%, 2/03/31		Dominican Republic		150,000			150,122
^dGovernment of Germany, senior bond, Reg S, zero cpn., 2/15/32		Germany		76,500	EUR		64,372
^dGovernment of Iraq, senior bond, Reg S, 5.80%, 1/15/28		Iraq		156,250			143,943

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)


	Country		Principal Amount^*			Value

Foreign Government and Agency Securities (continued)
^eGovernment of Italy, senior note, 2.375%, 10/17/24		Italy		373,000		$	352,816
^dGovernment of Ivory Coast, senior bond, Reg S, 4.875%, 1/30/32		Ivory Coast		100,000	EUR		81,245
Government of Mexico, senior bond, 6.35%, 2/09/35		Mexico		200,000			205,697
^dGovernment of Nigeria, senior note, Reg S, 8.375%, 3/24/29		Nigeria		224,000			189,140
Government of South Africa, senior bond,
8.875%, 2/28/35		South Africa		2,162,269	ZAR		100,148
8.75%, 2/28/48		South Africa		5,616,233	ZAR		238,625
Government of Turkey, senior note, 9.875%, 1/15/28		Turkey		200,000			203,364
^dGovernment of Ukraine, senior bond, Reg S,
7.75%, 9/01/26		Ukraine		200,000			38,164
zero cpn., 8/01/41		Ukraine		208,000			57,920

Total Foreign Government and Agency Securities (Cost $3,053,926)							2,776,942

U.S. Government and Agency Securities 0.3%
U.S. Treasury Bond,
2.875%, 5/15/52		United States		193,500			158,496
3.00%, 8/15/52		United States		1,700			1,430
U.S. Treasury Note, 4.00%, 10/31/29		United States		11,000			10,937

Total U.S. Government and Agency Securities (Cost $177,931)							170,863

Asset-Backed Securities and Commercial Mortgage-Backed
Securities 21.8%
Diversified Financial Services 8.6%
CitiMortgage Alternative Loan Trust, 2007-A1, 2A1, 5.50%, 1/25/22		United States		12,624			11,421
^dFRTKL, 2021-SFR1, G, 144A, 4.105%, 9/17/38		United States		990,000			850,736
^d,fGSMSC Pass-Through Trust, 2009-4R, 2A3, 144A, FRN, 4.956%, (1-Month USD LIBOR + 0.45%), 12/26/36		United States		568,491			405,434
^d,fMountain View CLO Ltd., 2018-1A, DRR, 144A, FRN, 8.442%, (3- Month USD LIBOR + 3.65%), 10/15/26		United States		1,290,000			1,287,941
ⁱSTARM Mortgage Loan Trust, 2007-2, 4A1, FRN, 2.753%, 4/25/37		United States		35,978			18,638
^dStellar Jay Ireland DAC, 2021-1, B, 144A, 5.926%, 10/15/41		Ireland		946,940			788,301
^fSuntrust Alternative Loan Trust, 2005-1F, 1A1, FRN, 5.267%, (1- Month USD LIBOR + 0.65%), 12/25/35		United States		73,775			62,037
^d,fVMC Finance LLC, 2019-FL3, C, 144A, FRN, 6.651%, (1-Month USD LIBOR + 2.05%), 9/15/36		United States		880,961			830,082
Wells Fargo Alternative Loan Trust, 2007-PA3, 2A2, 6.00%, 7/25/37		United States		87,579			74,607

							4,329,197

Mortgage Real Estate Investment Trusts (REITs) 13.2%
ⁱAmerican Home Mortgage Assets Trust, 2005-1, 1A1, FRN, 3.209%, 11/25/35		United States		69,935			52,248
ⁱBanc of America Mortgage Trust, FRN,
2005-K, 2A1, 3.934%, 12/25/35		United States		105,153			92,521
2005-L, 1A1, 3.695%, 1/25/36		United States		86,164			72,792
2005-L, 3A1, 4.164%, 1/25/36		United States		62,433			57,378
^d,fBBCMS Mortgage Trust, 2019-BWAY, E, 144A, FRN, 7.527%, (1- Month USD LIBOR + 2.96%), 11/15/34		United States		2,000,000			1,329,653
^d,iBCAP LLC Trust, 2010-RR1, 1A4, 144A, FRN, 3.224%, 3/26/37		United States		177,277			140,489

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

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)
ⁱBear Stearns ARM Trust, FRN ,
2002-11, 1A2, 3.25%, 2/25/33		United States		1,455	$	1,144
2006-2, 4A1, 3.328%, 7/25/36		United States		30,858		26,107
ⁱCitigroup Mortgage Loan Trust, 2007-AR5, 2A1A, FRN, 4.393%, 4/25/37		United States		71,439		61,789
Countrywide Alternative Loan Trust,
2005-73CB, 1A2, 6.25%, 1/25/36		United States		108,090		103,397
2005-J10, 2A4, 6.00%, 10/25/35		United States		388,679		200,426
ⁱCredit Suisse First Boston Mortgage Securities Corp., 2004-AR3, CB2, FRN, 3.309%, 4/25/34		Switzerland		102,255		86,749
CSMC Mortgage-Backed Trust, 2006-4, 9A1, 6.50%, 5/25/36		United States		718,269		294,546
^d,iFARM Mortgage Trust, 2021-1, B, 144A, FRN, 3.24%, 7/25/51		United States		875,761		546,678
GSR Mortgage Loan Trust, 2004-6F, 2A4, 5.50%, 5/25/34		United States		70,657		68,723
Impac CMB Trust,
2004-4, 2A2, 5.341%, 9/25/34		United States		111,391		113,891
^f2004-8, 3B, FRN, 7.242%, (1-Month USD LIBOR + 2.63%), 8/25/34		United States		89,617		78,668
^f2005-2, 2B, FRN, 7.092%, (1-Month USD LIBOR + 2.48%), 4/25/35		United States		51,676		47,027
^f2005-4, 2M1, FRN, 5.367%, (1-Month USD LIBOR + 0.50%), 5/25/35		United States		125,980		111,137
^f2005-8, 2B, FRN, 6.867%, (1-Month USD LIBOR + 2.25%), 2/25/36		United States		66,096		58,641
^fIndyMac INDX Mortgage Loan Trust, FRN,
2006-AR12, A1, 4.997%, (1-Month USD LIBOR + 0.38%), 9/25/46		United States		135,741		119,054
2006-AR29, A2, 4.777%, (1-Month USD LIBOR + 0.16%), 11/25/36		United States		228,353		215,335
ⁱJPMorgan Mortgage Trust, FRN,
2006-A5, 6A1, 3.724%, 8/25/36		United States		161,263		127,923
2006-A7, 2A3, 3.846%, 1/25/37		United States		64,364		49,593
Lehman Mortgage Trust, 2005-3, 2A3, 5.50%, 1/25/36		United States		53,574		41,057
ⁱMASTR Adjustable Rate Mortgages Trust, 2004-10, B1, FRN, 3.632%, 10/25/34		United States		412,629		360,818
ⁱMASTR Alternative Loan Trust, 2007-HF1, 3A1, FRN, 3.275%, 10/25/47		United States		468,426		312,269
^d,fMorgan Stanley Capital I Trust, 2018-BOP, E, 144A, FRN, 6.538%, (1-Month USD LIBOR + 1.95%), 6/15/35		United States		1,200,000		962,326
ⁱRFMSI Trust, 2007-SA2, 3A, FRN, 5.855%, 4/25/37		United States		703,512		192,728
ⁱStructured ARM Loan Trust, 2004-4, B1, FRN, 4.366%, 4/25/34		United States		440,637		371,489
WaMu Mortgage Pass-Through Certificates Series Trust, FRN,
ⁱ2003-AR3, B1, 3.871%, 6/25/33		United States		192,088		171,002
^f2006-4, 3A2B, 4.777%, (1-Month USD LIBOR + 0.16%), 5/25/36		United States		180,499		153,444

						6,621,042

Total Asset-Backed Securities and Commercial Mortgage- Backed Securities (Cost $12,496,255)						10,950,239

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)



	Number of Contracts		Notional Amount^#		Value

Options Purchased 0.0%^†

Puts - Exchange-Traded 0.0%^†
Deere & Co., March Strike Price $300.00, Expires 3/17/23		2		83,848	$	4
Dick's Sporting Good Inc., March Strike Price $70.00, Expires 3/17/23		8		102,904		40
S&P 500 Index, March Strike Price $3,445.00, Expires 3/31/23		4		1,588,060		1,800
SPDR S&P Regional Banking ETF, March Strike Price $52.00, Expires 3/17/23		28		172,368		196

						2,040


Puts - Over-the-Counter 0.0%^†
H & M Hennes & Mauritz AB, Counterparty CITI, March Strike Price 100.00 SEK, Expires 3/17/23		21		277,284		15
Softbank Group, Counterparty GSCO, March Strike Price 4,540.00 JPY, Expires 3/09/23		1,180		6,510,060		8

						23


Total Options Purchased (Cost $64,825)						2,063


Total Investments before Short Term Investments

(Cost $30,802,428)						27,657,638


	Country		Shares

Short Term Investments 42.8%

Money Market Funds (Cost $21,506,085) 42.8%
^jFidelity Investments Money Market Government Portfolio, Institutional, 4.46%		United States		21,506,085		21,506,085


Total Investments (Cost $52,308,513) 97.8%						49,163,723

Options Written (0.0)%^†						(12,400)

Securities Sold Short (7.0)%						(3,534,134)

Other Assets, less Liabilities 9.2%						4,636,642


Net Assets 100.0%					$	50,253,831


	Number of Contracts		Notional Amount^#

Options Written (Proceeds $53,104) (0.0)%^†

Calls - Exchange-Traded (0.0)%^†
S&P 500 Index, March Strike Price $4,100.00, Expires 3/31/23		4		1,632,044		(12,400)

100

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)



	Country		Shares		Value

Securities Sold Short (7.0)%

Common Stocks (2.5)%
Capital Markets (2.5)%
Ares Capital Corp.		United States		29,109	$	(563,550)
Owl Rock Capital Corp.		United States		51,114		(700,262)


Total Common Stocks (Proceeds $1,210,847)						(1,263,812)


			Principal Amount^*

Corporate Bonds and Notes (3.8)%
Automobiles (0.2)%
Ford Motor Credit Co. LLC, senior note, 4.95%, 5/28/27		United States		123,000		(114,731)

Banks (0.0)%^†
SVB Financial Group, senior note, 1.80%, 10/28/26		United States		21,000		(18,319)

Chemicals (0.1)%
Celanese US Holdings LLC, senior note, 6.33%, 7/15/29		United States		30,000		(29,442)

Construction & Engineering (0.6)%
Fluor Corp., senior bond, 4.25%, 9/15/28		United States		312,000		(281,818)

Consumer Finance (0.8)%
Ally Financial Inc., junior sub. bond, 5.75%, 11/20/25		United States		96,000		(94,050)
Onemain Finance Corp., senior note,
6.875%, 3/15/25		United States		40,000		(39,089)
7.125%, 3/15/26		United States		257,000		(250,084)

						(383,223)

Diversified Financial Services (0.6)%
^dKronos Acquisition Holdings Inc. / KIK Custom Products Inc., senior note, 144A, 7.00%, 12/31/27		Canada		200,000		(171,729)
^dMPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28		United States		169,000		(110,061)

						(281,790)

Health Care Providers & Services (0.2)%
Tenet Healthcare Corp., senior secured note, 6.25%, 2/01/27		United States		119,000		(116,005)

Hotels, Restaurants & Leisure (0.1)%
^dMohegan Tribal Gaming Authority, senior secured note, 144A, 8.00%, 2/01/26		United States		34,000		(31,884)

Media (0.7)%
DISH DBS Corp., senior note, 7.75%, 7/01/26		United States		67,000		(52,076)
iHeartCommunications Inc., senior note, 8.375%, 5/01/27		United States		228,886		(201,649)
^dScripps Escrow II Inc., senior bond, 144A, 5.375%, 1/15/31		United States		154,000		(109,196)

						(362,921)

Oil, Gas & Consumable Fuels (0.1)%
^dTallgrass Energy Partners LP / Tallgrass Energy Finance Corp., senior bond, 144A, 6.00%, 12/31/30		United States		87,000		(75,139)

Semiconductors & Semiconductor Equipment (0.4)%
Intel Corp., senior bond, 4.75%, 3/25/50		United States		143,000		(124,016)

101

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)



	Country		Principal Amount^*			Value

Securities Sold Short (continued)

Corporate Bonds and Notes (continued)
Intel Corp., senior bond, (continued) 4.90%, 8/05/52		United States		93,000		$	(82,539)

							(206,555)


Total Corporate Bonds and Notes (Proceeds $2,042,284)							(1,901,827)


Foreign Government and Agency Securities (0.7)%
^dGovernment of Italy, senior bond, Reg S, 0.95%, 6/01/32 Government of Turkey, senior bond, 5.75%, 3/22/24		Italy Turkey		92,000 170,000	EUR		(72,892) (166,319)
7.375%, 2/05/25		Turkey		131,000			(129,284)


Total Foreign Government and Agency Securities (Proceeds $389,442)							(368,495)


Total Securities Sold Short (Proceeds $3,642,573)						$	(3,534,134)

^†

Rounds to less than 0.1% of net assets.

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

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

Non-income producing.

Fair valued using significant unobservable inputs. See Note 7 regarding fair value measurements.

See Note 3 regarding restricted securities.

Security was purchased pursuant to Rule 144A or Regulation S under the Securities Act of 1933. 144A securities may be sold in transactions exempt from registration only to qualified institutional buyers or in public offering registered under the Securities Act of 1933. Regulation S securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At February 28, 2023, the net value of these securities was $18,599,231, representing 37.0% of net assets.

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, 2023, the aggregate value of these securities and/or cash pledged amounted to $4,943,292, representing 9.8% of net assets.

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

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

See Note 4 regarding unfunded loan commitments.

ⁱ

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.

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

102

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

At February 28, 2023, the Fund had the following futures contracts outstanding.

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount^*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

S&P 500 E-Mini Index

Short

198,775

3/17/23

3,697

Total Futures Contracts

3,697

*As of period end.

At February 28, 2023, the Fund had the following forward exchange contracts outstanding.

Forward Exchange Contracts


Currency	Counterparty^a		Type		Quantity		Contract Amount^*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation

OTC Forward Exchange Contracts
Brazilian Real		JPHQ		Buy		2,778,328		537,250			3/02/23	$	–	$	(6,574	)
Brazilian Real		JPHQ		Sell		2,778,328		536,463			3/02/23		5,787		–
British Pound		JPHQ		Sell		560,000		690,422			3/15/23		16,629		–
Czech Koruna		JPHQ		Buy		22,695,789		1,001,582			3/15/23		19,975		(868	)
Czech Koruna		JPHQ		Sell		22,695,789		1,007,246			3/15/23		1,301		(14,742	)
Polish Zloty		JPHQ		Sell		926,818		194,987	EUR		3/15/23		2,306		(3,978	)
Czech Koruna		JPHQ		Sell		1,019,051		42,834	EUR		3/15/23		237		(717	)
Euro		JPHQ		Buy		163,225		178,062			3/15/23		–		(5,253	)
Euro		JPHQ		Sell		240,349		258,182			3/15/23		3,722		–
Indonesian Rupiah		JPHQ		Buy		2,767,084,779		177,925			3/15/23		3,427		–
Indonesian Rupiah		JPHQ		Sell		4,636,980,450		296,710			3/15/23		–		(7,193	)
Mexican Peso		JPHQ		Buy		2,189,411		109,243			3/15/23		10,060		–
Mexican Peso		JPHQ		Sell		2,189,411		117,646			3/15/23		–		(1,657	)
Euro		JPHQ		Sell		195,769		926,818	PLN		3/15/23		2,880		(2,034	)
Polish Zloty		JPHQ		Buy		193,768		43,546			3/15/23		–		(37	)
Polish Zloty		JPHQ		Sell		680,766		152,326			3/15/23		–		(534	)
South African Rand		JPHQ		Buy		15,227,857		888,024			3/15/23		–		(59,977	)
South African Rand		JPHQ		Sell		19,182,534		1,098,745			3/15/23		55,654		–
South Korean Won		JPHQ		Buy		385,572,346		305,682			3/15/23		–		(14,122	)
South Korean Won		JPHQ		Sell		332,438,742		255,694			3/15/23		4,312		–
Swedish Krona		JPHQ		Buy		20,000		1,914			3/15/23		–		(2	)
Swedish Krona		JPHQ		Sell		20,000		1,964			3/15/23		52		–
Hungarian Forint		JPHQ		Sell		72,827,058		178,192	EUR		3/16/23		330		(14,071	)
Euro		JPHQ		Buy		4,754		5,198			3/16/23		–		(165	)
Euro		JPHQ		Sell		366,817		144,523,198	HUF		3/16/23		13,560		(271	)
Hungarian Forint		JPHQ		Buy		50,751,936		140,849			3/16/23		675		(472	)
Hungarian Forint		JPHQ		Sell		50,751,936		140,587			3/16/23		538		(1,004	)
Euro		JPHQ		Buy		200,000		213,979			3/31/23		–		(2,022	)
Euro		JPHQ		Sell		870,000		973,246			3/31/23		51,232		–
Brazilian Real		JPHQ		Buy		838,585		161,660			4/04/23		–		(2,590	)
Euro		JPHQ		Buy		250,000		277,258			3/31/25		–		(4,493	)
Euro		JPHQ		Sell		970,000		1,135,928			3/31/25		77,600		–


Total Forward Exchange Contracts												$	270,277	$	(142,776	)


Net unrealized appreciation (depreciation)												$	127,501

*In U.S. dollars unless otherwise indicated.

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

103

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

At February 28, 2023, the Fund had the following credit default swap contracts outstanding.

Credit Default Swap Contracts


Description	Annual Payment Rate Received (Paid)			Payment Frequency			Maturity Date		Notional Amount^a		Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Rating^b


Centrally Cleared Swap Contracts

Contracts to Buy Protection^c

Traded Index

CDX.EM.38		(1.00	)%		Quarterly			12/20/27		325,269	$	18,449		$	19,176		$	(727	)


OTC Swap Contracts

Contracts to Buy Protection^c

Single Name						Counterparty
Air France-KLM		(5.00	)%		Quarterly	CITI		12/20/27		5,000EUR		(156	)		514			(670	)
Air France-KLM		(5.00	)%		Quarterly	CITI		12/20/27		6,000EUR		(187	)		603			(790	)
Air France-KLM		(5.00	)%		Quarterly	CITI		12/20/27		12,000EUR		(374	)		871			(1,245	)
Air France-KLM		(5.00	)%		Quarterly	CITI		12/20/27		14,000EUR		(3,356	)		1,335			(4,691	)
Air France-KLM		(5.00	)%		Quarterly	CITI		12/20/27		23,000EUR		(716	)		1,761			(2,477	)
Ally Financial Inc.		(5.00	)%		Quarterly	BNPP		12/20/27		138,000		(15,973	)		(10,007	)		(5,966	)
Ally Financial Inc.		(5.00	)%		Quarterly	BNPP		12/20/27		37,000		(4,282	)		(2,830	)		(1,452	)
Ally Financial Inc.		(5.00	)%		Quarterly	BNPP		12/20/27		24,000		(2,778	)		(1,988	)		(790	)
Ally Financial Inc.		(5.00	)%		Quarterly	CITI		12/20/24		40,000		(2,945	)		(1,767	)		(1,178	)
Ally Financial Inc.		(5.00	)%		Quarterly	GSCO		12/20/27		119,000		(13,773	)		(9,252	)		(4,521	)
Ally Financial Inc.		(5.00	)%		Quarterly	GSCO		12/20/27		15,000		(1,736	)		(1,276	)		(460	)
Ally Financial Inc.		(5.00	)%		Quarterly	GSCO		12/20/27		7,000		(810	)		(590	)		(220	)
Ally Financial Inc.		(5.00	)%		Quarterly	GSCO		12/20/27		5,000		(579	)		(454	)		(125	)
Ally Financial Inc.		(5.00	)%		Quarterly	MSCS		12/20/24		34,000		(2,503	)		(1,494	)		(1,009	)
Altice France Holding SA		(5.00	)%		Quarterly	JPHQ		12/20/27		1,000EUR		57			92			(35	)
Altice France Holding SA		(5.00	)%		Quarterly	JPHQ		12/20/27		2,000EUR		115			172			(57	)
Altice France Holding SA		(5.00	)%		Quarterly	JPHQ		12/20/27		6,000EUR		344			520			(176	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		12/20/23		15,000		(362	)		167			(529	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		12/20/23		14,000		(337	)		289			(626	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		12/20/23		41,000		(988	)		723			(1,711	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		6/20/24		42,000		(508	)		1,145			(1,653	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		6/20/24		25,000		(302	)		2,331			(2,633	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		6/20/24		84,000		(1,016	)		4,595			(5,611	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		12/20/24		20,000		(23	)		2,451			(2,474	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		6/20/25		16,000		209			1,777			(1,568	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		6/20/25		64,000		835			6,748			(5,913	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		12/20/23		12,000		(289	)		145			(434	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		12/20/23		17,000		(410	)		204			(614	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		12/20/23		48,000		(1,157	)		655			(1,812	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		12/20/23		20,000		(482	)		696			(1,178	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		12/20/23		33,000		(795	)		1,567			(2,362	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		6/20/24		10,000		(121	)		685			(806	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		6/20/24		37,000		(448	)		2,783			(3,231	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		12/20/24		9,000		(10	)		1,158			(1,168	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		12/20/24		78,000		(88	)		5,543			(5,631	)
American Axle &
Manufacturing Inc.		(5.00	)%		Quarterly	JPHQ		6/20/25		11,000		(521	)		(452	)		(69	)
American Axle &
Manufacturing Inc.		(5.00	)%		Quarterly	JPHQ		6/20/27		26,000		(247	)		(308	)		61
American Axle &
Manufacturing Inc.		(5.00	)%		Quarterly	MSCS		6/20/27		26,000		(247	)		(398	)		151
American Axle &
Manufacturing Inc.		(5.00	)%		Quarterly	MSCS		6/20/27		12,000		(114	)		119			(233	)
American Axle &
Manufacturing Inc.		(5.00	)%		Quarterly	MSCS		12/20/27		6,000		22			196			(174	)

104

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

Credit Default Swap Contracts (continued)


Description	Annual Payment Rate Received (Paid)			Payment Frequency		Counterparty		Maturity Date		Notional Amount^a		Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Rating^b

OTC Swap Contracts (continued)

Contracts to Buy Protection^c(continued)

Single Name (continued)

Arcelormittal SA		(5.00	)%		Quarterly		BOFA		12/20/27		25,000EUR	$	(3,563	)	$	(1,494	)	$	(2,069	)

Arcelormittal SA		(5.00	)%		Quarterly		JPHQ		12/20/27		51,000EUR		(7,269	)		(3,069	)		(4,200	)

Arcelormittal SA		(5.00	)%		Quarterly		JPHQ		12/20/27		12,000EUR		(1,710	)		(986	)		(724	)

Arcelormittal SA		(5.00	)%		Quarterly		JPHQ		12/20/27		12,000EUR		(1,710	)		(915	)		(795	)

Arcelormittal SA		(5.00	)%		Quarterly		JPHQ		12/20/27		12,000EUR		(1,710	)		(896	)		(814	)

BMW AG		(1.00	)%		Quarterly		BZWS		12/20/27		54,000EUR		(1,080	)		663			(1,743	)

BMW AG		(1.00	)%		Quarterly		MSCS		12/20/27		54,000EUR		(1,080	)		528			(1,608	)

Carnival Corp.		(1.00	)%		Quarterly		BZWS		12/20/26		12,000		2,548			4,484			(1,936	)

Carnival Corp.		(1.00	)%		Quarterly		BZWS		12/20/26		12,000		2,548			4,539			(1,991	)

Carnival Corp.		(1.00	)%		Quarterly		BZWS		12/20/26		12,000		2,548			4,563			(2,015	)

Carnival Corp.		(1.00	)%		Quarterly		BZWS		12/20/26		24,000		5,097			7,903			(2,806	)

Carnival Corp.		(1.00	)%		Quarterly		BZWS		12/20/26		24,000		5,097			8,995			(3,898	)

Carnival Corp.		(1.00	)%		Quarterly		CITI		12/20/26		12,000		2,548			3,857			(1,309	)

Carnival Corp.		(1.00	)%		Quarterly		CITI		12/20/26		12,000		2,548			4,011			(1,463	)

Ceconomy AG		(1.00	)%		Quarterly		MSCS		6/20/23		2,000EUR		14			98			(84	)

Ceconomy AG		(1.00	)%		Quarterly		MSCS		12/20/23		4,000EUR		189			273			(84	)

Ceconomy AG		(1.00	)%		Quarterly		MSCS		12/20/23		4,000EUR		189			350			(161	)

Ceconomy AG		(1.00	)%		Quarterly		MSCS		12/20/23		4,000EUR		189			359			(170	)

Ceconomy AG		(1.00	)%		Quarterly		MSCS		12/20/23		4,000EUR		189			371			(182	)

Ceconomy AG		(1.00	)%		Quarterly		MSCS		12/20/23		8,000EUR		379			676			(297	)

Ceconomy AG		(1.00	)%		Quarterly		MSCS		6/20/24		10,000EUR		945			1,117			(172	)

Compagnie de Saint-Gobain SA		(1.00	)%		Quarterly		CITI		12/20/27		67,000EUR		(734	)		1,491			(2,225	)

Compagnie de Saint-Gobain SA		(1.00	)%		Quarterly		CITI		12/20/27		112,000EUR		(1,227	)		2,488			(3,715	)

Daimler Truck Holding AG		(1.00	)%		Quarterly		GSCO		12/20/27		56,000EUR		(957	)		806			(1,763	)

Ford Motor Credit Co. LLC		(5.00	)%		Quarterly		CITI		12/20/27		86,000		(8,477	)		(4,740	)		(3,737	)

Ford Motor Credit Co. LLC		(5.00	)%		Quarterly		GSCO		12/20/27		1,000		(99	)		(59	)		(40	)

Ford Motor Credit Co. LLC		(5.00	)%		Quarterly		MSCS		12/20/27		29,000		(2,858	)		(2,166	)		(692	)

Ford Motor Credit Co. LLC		(5.00	)%		Quarterly		MSCS		12/20/27		12,000		(1,183	)		(471	)		(712	)

Government of Italy		(1.00	)%		Quarterly		BOFA		6/20/24		233,000		(2,304	)		639			(2,943	)

Government of Italy		(1.00	)%		Quarterly		BOFA		6/20/24		140,000		(1,384	)		861			(2,245	)

Government of Japan		(1.00	)%		Quarterly		BZWS		12/20/27		58,000		(1,990	)		(1,717	)		(273	)

Government of Japan		(1.00	)%		Quarterly		BZWS		12/20/27		47,000		(1,613	)		(1,522	)		(91	)

Government of Japan		(1.00	)%		Quarterly		BZWS		12/20/27		47,000		(1,613	)		(1,497	)		(116	)

Government of Japan		(1.00	)%		Quarterly		BZWS		12/20/27		47,000		(1,613	)		(1,487	)		(126	)

Government of Japan		(1.00	)%		Quarterly		BZWS		12/20/27		47,000		(1,613	)		(1,386	)		(227	)

Government of Japan		(1.00	)%		Quarterly		BZWS		12/20/27		24,000		(824	)		(706	)		(118	)

Government of Japan		(1.00	)%		Quarterly		GSCO		12/20/27		82,000		(2,814	)		(2,393	)		(421	)

Government of Japan		(1.00	)%		Quarterly		GSCO		12/20/27		47,000		(1,613	)		(1,387	)		(226	)

Government of Japan		(1.00	)%		Quarterly		GSCO		12/20/27		35,000		(1,201	)		(1,146	)		(55	)

Government of Japan		(1.00	)%		Quarterly		GSCO		12/20/27		24,000		(824	)		(701	)		(123	)

Government of Japan		(1.00	)%		Quarterly		MSCS		12/20/27		70,000		(2,402	)		(2,202	)		(200	)

HP Inc.		(1.00	)%		Quarterly		GSCO		12/20/27		60,000		371			2,318			(1,947	)

HP Inc.		(1.00	)%		Quarterly		MSCS		12/20/27		65,000		401			2,168			(1,767	)

ICE Ltd.		(5.00	)%		Quarterly		JPHQ		6/20/25		10,000EUR		1,007			320			687

Iceland Bondco		(5.00	)%		Quarterly		GSCO		6/20/25		15,000EUR		1,511			1,951			(440	)

JFE Holdings Inc.		(1.00	)%		Quarterly		BZWS		12/20/27		4,732,000JPY		(708	)		(317	)		(391	)

JFE Holdings Inc.		(1.00	)%		Quarterly		CITI		12/20/27		4,732,000JPY		(708	)		(676	)		(32	)

JFE Holdings Inc.		(1.00	)%		Quarterly		CITI		12/20/27		4,725,000JPY		(706	)		(668	)		(38	)

JFE Holdings Inc.		(1.00	)%		Quarterly		CITI		12/20/27		2,363,000JPY		(353	)		(320	)		(33	)

JFE Holdings Inc.		(1.00	)%		Quarterly		GSCO		12/20/27		4,732,000JPY		(708	)		(606	)		(102	)

JFE Holdings Inc.		(1.00	)%		Quarterly		GSCO		12/20/27		2,335,000JPY		(349	)		(315	)		(34	)

JFE Holdings Inc.		(1.00	)%		Quarterly		GSCO		12/20/27		2,366,000JPY		(354	)		(221	)		(133	)

JFE Holdings Inc.		(1.00	)%		Quarterly		GSCO		12/20/27		2,366,000JPY		(354	)		(174	)		(180	)

105

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

Credit Default Swap Contracts (continued)


Description	Annual Payment Rate Received (Paid)			Payment Frequency		Counterparty		Maturity Date		Notional Amount^a		Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Rating^b

OTC Swap Contracts (continued)
Contracts to Buy Protection^c(continued)
Single Name (continued)

Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		4,706,000JPY	$	(842	)	$	(988	)	$	146

Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		4,706,000JPY		(842	)		(686	)		(156	)

Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		2,353,000JPY		(421	)		(436	)		15

Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		2,353,000JPY		(421	)		(347	)		(74	)

Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		2,353,000JPY		(421	)		(272	)		(149	)

Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		CITI		12/20/27		2,353,000JPY		(421	)		(498	)		77

Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		2,353,000JPY		(421	)		(439	)		18

Kobe Steel Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		1,273,000JPY		40			17			23

Kobe Steel Ltd.		(1.00	)%		Quarterly		CITI		12/20/27		2,437,000JPY		76			170			(94)

Kobe Steel Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		2,437,000JPY		76			153			(77)

Kobe Steel Ltd.		(1.00	)%		Quarterly		JPHQ		12/20/27		2,383,000JPY		74			40			34

Kohl’s Corp.		(1.00	)%		Quarterly		GSCO		6/20/26		41,000		3,489			553			2,936

Lanxess AG		(1.00	)%		Quarterly		GSCO		12/20/27		36,000EUR		361			2,394			(2,033	)

Lanxess AG		(1.00	)%		Quarterly		JPHQ		12/20/27		181,000EUR		1,815			13,193			(11,378	)

Lloyds Bank PLC		(1.00	)%		Quarterly		BZWS		12/20/27		40,000EUR		477			2,256			(1,779	)

Lloyds Bank PLC		(1.00	)%		Quarterly		CITI		12/20/27		12,000EUR		143			539			(396	)

Lloyds Bank PLC		(1.00	)%		Quarterly		CITI		12/20/27		107,000EUR		1,277			4,661			(3,384	)

Lloyds Bank PLC		(1.00	)%		Quarterly		JPHQ		12/20/27		14,000EUR		167			1,000			(833	)

Macy's Retail Holdings LLC.		(1.00	)%		Quarterly		GSCO		12/20/27		10,000		1,056			1,227			(171	)

Macy's Retail Holdings LLC.		(1.00	)%		Quarterly		GSCO		12/20/27		20,000		2,112			2,354			(242	)

Macy's Retail Holdings LLC.		(1.00	)%		Quarterly		JPHQ		12/20/27		20,000		2,112			1,780			332

Marubeni Corp.		(1.00	)%		Quarterly		CITI		6/20/25		3,711,000JPY		(570	)		536			(1,106	)

Mitsui O.S.K. Lines Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		2,509,000JPY		(206	)		(127	)		(79	)

Mitsui O.S.K. Lines Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		2,377,000JPY		(195	)		(84	)		(111	)

Mitsui O.S.K. Lines Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		1,175,000JPY		(97	)		(63	)		(34	)

Mitsui O.S.K. Lines Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		2,350,000JPY		(193	)		(22	)		(171	)

Mitsui O.S.K. Lines Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		2,350,000JPY		(193	)		–			(193	)

Mitsui O.S.K. Lines Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		1,175,000JPY		(97	)		18			(115	)

Mitsui O.S.K. Lines Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		2,350,000JPY		(193	)		37			(230	)

Mitsui O.S.K. Lines Ltd.		(1.00	)%		Quarterly		JPHQ		12/20/27		2,350,000JPY		(193	)		(142	)		(51	)

Next PLC		(1.00	)%		Quarterly		BZWS		12/20/27		9,000EUR		182			602			(420	)

Next PLC		(1.00	)%		Quarterly		CITI		12/20/27		80,000EUR		1,618			5,350			(3,732	)

Next PLC		(1.00	)%		Quarterly		GSCO		12/20/27		32,000EUR		647			2,152			(1,505	)

Nippon Paper Industries Co. Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		718,000JPY		435			314			121

Nippon Paper Industries Co. Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		5,744,000JPY		3,482			2,039			1,443

Nippon Paper Industries Co. Ltd.		(1.00	)%		Quarterly		CITI		12/20/27		2,872,000JPY		1,741			1,065			676

Nippon Paper Industries Co. Ltd.		(1.00	)%		Quarterly		JPHQ		12/20/27		2,872,000JPY		1,741			1,310			431

Nippon Steel Corp.		(1.00	)%		Quarterly		BZWS		12/20/27		5,915,000JPY		(931	)		(587	)		(344	)

Nippon Steel Corp.		(1.00	)%		Quarterly		BZWS		12/20/27		2,366,000JPY		(372	)		(275	)		(97	)

Nippon Steel Corp.		(1.00	)%		Quarterly		BZWS		12/20/27		715,000JPY		(113	)		(110	)		(3	)

Nippon Steel Corp.		(1.00	)%		Quarterly		BZWS		12/20/27		559,000JPY		(88	)		(87	)		(1	)

Nippon Steel Corp.		(1.00	)%		Quarterly		CITI		12/20/27		1,959,000JPY		(308	)		(286	)		(22	)

Nippon Steel Corp.		(1.00	)%		Quarterly		GSCO		12/20/27		2,366,000JPY		(372	)		(384	)		12

Nippon Steel Corp.		(1.00	)%		Quarterly		MSCS		12/20/27		4,732,000JPY		(745	)		(690	)		(55	)

106

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

Credit Default Swap Contracts (continued)


Description	Annual Payment Rate Received (Paid)		Payment Frequency	Counterparty	Maturity Date		Notional Amount^a		Value			Upfront Payments (Receipts)		Unrealized Appreciation (Depreciation)		Rating^b


OTC Swap Contracts (continued)

Contracts to Buy Protection^c(continued)

Single Name (continued)
Rakuten Group Inc.		(1.00)%	Quarterly	BZWS		12/20/24		2,261,000JPY	$	970		$	315	$	655
Rakuten Group Inc.		(1.00)%	Quarterly	JPHQ		12/20/24		2,867,000JPY		1,230			648		582
Rakuten Group Inc.		(1.00)%	Quarterly	JPHQ		6/20/27		158,000JPY		164			109		55
Rakuten Group Inc.		(1.00)%	Quarterly	JPHQ		6/20/27		481,000JPY		501			335		166
Rakuten Group Inc.		(1.00)%	Quarterly	JPHQ		6/20/27		1,491,000JPY		1,552			787		765
Rakuten Group Inc.		(1.00)%	Quarterly	JPHQ		12/20/27		1,420,000JPY		1,635			1,125		510
Simon Property Group LP		(1.00)%	Quarterly	BNPP		12/20/27		52,000		(402	)		765		(1,167)
Simon Property Group LP		(1.00)%	Quarterly	BZWS		12/20/27		84,000		(650	)		1,374		(2,024)
Societe Generale SA		(1.00)%	Quarterly	BZWS		12/20/23		200,000EUR		(1,525	)		732		(2,257)
Softbank Group Corp.		(1.00)%	Quarterly	BZWS		6/20/27		777,000JPY		404			725		(321)
Softbank Group Corp.		(1.00)%	Quarterly	BZWS		6/20/27		1,331,000JPY		692			1,178		(486)
Softbank Group Corp.		(1.00)%	Quarterly	BZWS		6/20/27		1,503,000JPY		781			1,338		(557)
Softbank Group Corp.		(1.00)%	Quarterly	BZWS		6/20/27		4,972,000JPY		2,583			4,484		(1,901)
Stellantis NV		(5.00)%	Quarterly	BZWS		12/20/27		14,000EUR		(2,391	)		(1,402)		(989)
Stellantis NV		(5.00)%	Quarterly	CITI		12/20/27		55,000EUR		(9,392	)		(5,498)		(3,894)
Stellantis NV		(5.00)%	Quarterly	CITI		12/20/27		12,000EUR		(2,049	)		(1,332)		(717)
Stena AB		(5.00)%	Quarterly	BZWS		6/20/24		15,000EUR		(692	)		(296)		(396)
Stena AB		(5.00)%	Quarterly	GSCO		6/20/24		3,000EUR		(138	)		21		(159)
Stena AB		(5.00)%	Quarterly	GSCO		6/20/24		5,000EUR		(231	)		35		(266)
Stena AB		(5.00)%	Quarterly	GSCO		12/20/24		92,000EUR		(5,058	)		(3,410)		(1,648)
Stena AB		(5.00)%	Quarterly	GSCO		6/20/27		3,000EUR		(110	)		(5)		(105)
Stena AB		(5.00)%	Quarterly	JPHQ		6/20/27		2,000EUR		(73	)		18		(91)
Stena AB		(5.00)%	Quarterly	JPHQ		6/20/27		6,000EUR		(220	)		66		(286)
Stena AB		(5.00)%	Quarterly	JPHQ		6/20/27		28,000EUR		(1,025	)		157		(1,182)
Stena AB		(5.00)%	Quarterly	JPHQ		6/20/27		10,000EUR		(366	)		210		(576)
Stena AB		(5.00)%	Quarterly	JPHQ		6/20/27		35,000EUR		(1,282	)		254		(1,536)
Stena AB		(5.00)%	Quarterly	JPHQ		6/20/27		15,000EUR		(549	)		890		(1,439)
TDC Holding		(1.00)%	Quarterly	BNPP		6/20/27		60,000EUR		(339	)		2,944		(3,283)
U.S. Steel Corp.		(5.00)%	Quarterly	BZWS		12/20/27		9,000		(518	)		(49)		(469)
U.S. Steel Corp.		(5.00)%	Quarterly	BZWS		12/20/27		5,000		(288	)		7		(295)
U.S. Steel Corp.		(5.00)%	Quarterly	BZWS		12/20/27		5,000		(288	)		204		(492)
U.S. Steel Corp.		(5.00)%	Quarterly	BZWS		12/20/27		11,000		(633	)		517		(1,150)
U.S. Steel Corp.		(5.00)%	Quarterly	GSCO		12/20/27		11,000		(633	)		214		(847)
U.S. Steel Corp.		(5.00)%	Quarterly	MSCS		12/20/27		7,000		(403	)		100		(503)
U.S. Steel Corp.		(5.00)%	Quarterly	MSCS		12/20/27		12,000		(690	)		150		(840)
U.S. Steel Corp.		(5.00)%	Quarterly	MSCS		12/20/27		12,000		(690	)		170		(860)
U.S. Steel Corp.		(5.00)%	Quarterly	MSCS		12/20/27		12,000		(690	)		562		(1,252)
U.S. Steel Corp.		(5.00)%	Quarterly	MSCS		12/20/27		12,000		(690	)		607		(1,297)
U.S. Steel Corp.		(5.00)%	Quarterly	MSCS		12/20/27		23,000		(1,323	)		694		(2,017)
Unibail-Rodamco-Westfield SE		(1.00)%	Quarterly	GSCO		12/20/27		43,000EUR		1,594			2,275		(681)

Contracts to Sell Protection^c,d

Single Name
American Axle &
Manufacturing Inc.		5.00%	Quarterly	CITI		6/20/25		11,000		521			451		70	BB-
Calpine Corp.		5.00%	Quarterly	JPHQ		12/20/27		1,000		45			(9)		54	BB-
Calpine Corp.		5.00%	Quarterly	JPHQ		12/20/27		48,000		2,144			173		1,971	BB-
Kohl’s Corp.		1.00%	Quarterly	JPHQ		6/20/26		41,000		(3,489)			(2,448)		(1,041)	BB+
Nordstrom Inc.		1.00%	Quarterly	GSCO		12/20/27		20,000		(2,908)			(3,532)		624	BB+
Nordstrom Inc.		1.00%	Quarterly	GSCO		12/20/27		10,000		(1,454)			(1,721)		267	BB+

Total OTC Swap Contracts									$	(100,345)		$	72,790	$	(173,135)

Total Credit Default Swap Contracts									$	(81,896)		$	91,966	$	(173,862)

107

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

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

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

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

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

At February 28, 2023, the Fund had the following interest rate swap contracts outstanding.

Interest Rate Swap Contracts

Description

Payment
Frequency

Maturity
Date

Notional
Amount^*

Value/
Unrealized
Appreciation
(Depreciation)

Centrally Cleared Swap Contracts

Receive Floating rate 1 Year-SOFR
Pay Fixed rate 1.36%

Annually

3/08/24

1,000,000

49,625

Receive Fixed 12.865%
Pay Floating BZDIOVRA Index

Annually

1/02/25

3,855,637

BRL

2,044

Receive Floating rate 3 Month USD-LIBOR
Pay Fixed rate 2.25%

Quarterly

6/20/28

1,100,000

26,100

Receive Floating rate 1 Year-SOFR
Pay Fixed rate 1.52%

Annually

3/08/32

1,000,000

171,808

Total Interest Rate Swap Contracts

249,577

*In U.S. dollars unless otherwise indicated.

At February 28, 2023, the Fund had the following total return swap contracts outstanding.

Total Return Swap Contracts

Underlying Instrument

Financing Rate

Payment
Frequency

Counterparty

Maturity
Date

Notional
Value

Value/Unrealized
Appreciation
(Depreciation)

OTC Swap Contracts

Equity Contracts - Long^a

Energy Transfer LP

1-Month LIBOR + 0.50%

Monthly

CITI

10/18/23

24,712

1,806

Energy Transfer LP

1-Month LIBOR + 0.90%

Monthly

GSCO

1/26/24

33,014

(106)

Energy Transfer LP

1-Month LIBOR + 0.90%

Monthly

GSCO

2/14/24

47,495

(756)

944

Interest Rate Contracts - Long^a

Government of Indonesia

SOFR + 0.55%

Monthly

JPHQ

2/17/33

117,102

413

Total - Total Return Swap Contracts

1,357

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

108

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

Abbreviations

Counterparty

Currency

Selected Portfolio

BNPP

BNP Paribas

EUR

Euro

ARM

Adjustable Rate Mortgage

BOFA

Bank of America, NA

BRL

Brazilian Real

BZDIOVRA

Brazil Interbank Deposit Rate

BZWS

Barclays Bank PLC

GBP

British Pound

CLO

Collateralized Loan Obligation

CITI

Citigroup, NA

HUF

Hungarian Forint

ETF

Exchange Traded Fund

GSCO

Goldman Sachs International

JPY

Japanese Yen

EURIBOR

Euro Interbank Offered Rate

JPHQ

JP Morgan Chase Bank, NA

PLN

Polish Zloty

FHLMC

Federal Home Loan Mortgage Corp.

MSCS

Morgan Stanley Capital Services LLC

SEK

Swedish Krona

FNMA

Federal National Mortgage Association

USD

United States Dollar

FRN

Floating Rate Note

ZAR

South African Rand

LIBOR

London InterBank Offered Rate

PIK

Payment In-Kind

Index

Revolving Loan Commitment

CDX.EM

CDX Emerging Markets Index

REIT

Real Estate Investment Trust

SFR

Single Family Revenue

SOFR

Secured Overnight Financing Rate

SPDR

Standard & Poor's Depositary Receipt

109

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Notes to (Consolidated) Schedules 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. The Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (ASC 946) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946.

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

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 Board has designated the Funds’ investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Funds' administrator in performing this responsibility, 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 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 Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the value of the Funds’ portfolio securities to the latest indications of fair value at 4 p.m. Eastern time. At February 28, 2023, certain securities may have been

110

fair valued using these procedures, in which case the securities were categorized as Level 2 within the fair value hierarchy (referred to as “market level fair value”). See the Fair Value Measurements note for more information.

When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the 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.

3. 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, 2023, investments in restricted securities, excluding securities exempt from registration under the 1933 Act, were as follows:


Shares	Issuer	Acquisition Date		Cost		Value
K2 Long Short Credit Fund
923	Acosta Inc.		12/31/19	$	8,144	$	7,569
1,145	Acosta Inc., cvt. pfd.		12/31/19 – 1/17/23		50,262		50,266


	Total Restricted Securities (Value is 0.1% of Net Assets)			$	58,406	$	57,835

4. Unfunded Loan Commitments

Certain or all Funds enter 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) Schedules of Investments.

At February 28, 2023, unfunded commitments were as follows:


Borrower	Unfunded Commitment
K2 Alternative Strategies Fund
Areas, Term Loan B1	$	44,382
Atlas AI, Initial Term Loan		215,000
Bausch Health Cos. Inc., Term Loan B		655,217
Carnival Corp., Term Loan B		200,000
Carnival Corp., Term Loan B		155,000
Citrix Systems Inc., Term Loan B		153,718
CSC Holdings LLC, Term Loan B		214,158
Euro Garage Ltd., Term Loan B1		125,991
Inspire Brands, Initial Term Loan		1,027,800
K. Hovnanian Enterprises Inc., Term Loan RC		1,000,000
Oldcastle BuildingEnvelope Inc., Term Loan RC		234,831
Solera Holdings, Initial Term Loan		1,027,800
Uber Technologies, Initial Term Loan		100,000
Upfield Group BV, Term Loan RC		316,677
Varsity Brands, Initial Term Loan		13,045
ZF Invest, Term Loan B		149,429

	$	5,633,048

K2 Long Short Credit Fund
Bausch Health Cos. Inc., Term Loan B	$	66,205
K. Hovanian Enterprises Inc., Term Loan RC		1,000,000
Oldcastle BuildingEnvelope Inc., Term Loan RC		49,073
Upfield Group BV, Term Loan RC		93,572
Varsity Brands, Initial Term Loan		2,325

	$	1,211,175

5. Investments in Affiliated Management Investment Companies

Certain or all Funds invest in one or more affiliated management investment companies. As defined in the 1940 Act, an investment is deemed to be a “Controlled Affiliate” of a fund when a fund owns, either directly or indirectly, 25% or more of the affiliated fund’s outstanding shares or has the power to exercise control over management or policies of such fund. The Funds do not invest for purposes of exercising a controlling influence over the management or policies. During the period ended February 28, 2023, investments in affiliated management investment companies as follows:

111


	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

K2 Alternative Strategies Fund

Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio, 4.17%	$	4,937,000	$	55,709,000	$	(57,081,000)		$-		$-	$	3,565,000		3,565,000	$	69,116

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

Certain or all Funds invest in certain financial instruments and commodity-linked derivative investments through its investment in the K2 Subsidiary. The K2 Subsidiary is a Cayman Islands exempted company with limited liability, is a wholly-owned subsidiary of the Fund, and is able to invest in certain financial instruments and commodity-linked derivative investments consistent with the investment objective of the Fund. At February 28, 2023, the K2 Subsidiary’s investments, as well as any other assets and liabilities of the K2 Subsidiary, are reflected in the Fund’s Consolidated Schedule of Investments. At February 28, 2023, the Fund’s investments in the K2 Subsidiary were as follows:


Fund Name	Subsidiary Name^a	Consolidated Net Assets		Subsidiary Net Assets		% of Consolidated Net Assets

K2 Alternative Strategies Fund	K2 Holdings Investment Corp.	$	943,120,482	$	28,256,064		3.0%

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

7. Fair Value Measurements

The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the 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, 2023, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:


		Level 1			Level 2				Level 3				Total
K2 Alternative Strategies Fund
Assets:

Investments in Securities:^a
Equity Investments^b	$		225,649,758	$		22,178,310		$		8,232,463		$		256,060,531
Convertible Bonds			–			129,628,771				–				129,628,771
Corporate Bonds and Notes			–			125,386,314				23,977				125,410,291
Corporate Bonds and Notes in Reorganization			–			5,995,608				–				5,995,608
Senior Floating Rate Interests			–			3,233,695				–				3,233,695
Foreign Government and Agency Securities			–			58,005,633				–				58,005,633
U.S. Government and Agency Securities			–			22,507,056				–				22,507,056
Asset-Backed Securities and Commercial Mortgage-Backed Securities			–			14,209,777				–				14,209,777
Options Purchased			2,479,920			305,338				–				2,785,258
Short Term Investments			262,312,261			4,866,517				–				267,178,778

Total Investments in Securities	$		490,441,939	$		386,317,019	^d	$		8,256,440		$		885,015,398

Other Financial Instruments:
Futures Contracts	$		4,159,649	$		–		$		–		$		4,159,649
Forward Exchange Contracts			–			9,851,122				–				9,851,122
Swap Contracts			–			13,303,324				–				13,303,324

Total Other Financial Instruments	$		4,159,649	$		23,154,446		$		–		$		27,314,095


Liabilities:
Other Financial Instruments:
Options Written	$		780,889	$		37,317		$		–		$		818,206
Securities Sold Short^a			134,304,671			18,499,535	^e			40,485				152,844,691
Futures Contracts			2,442,193			–				–				2,442,193
Forward Exchange Contracts			–			9,859,974				–				9,859,974
Swap Contracts			–			14,858,594				–	^c			14,858,594
Unfunded Loan Commitments			–			99,659				–	^c			99,659

112



Total Other Financial Instruments	$	137,527,753	$	43,355,079	$	40,485	$	180,923,317


		Level 1			Level 2			Level 3				Total
K2 Long Short Credit Fund
Assets:
Investments in Securities:^a
Equity Investments^b	$		443,009	$		54,904	$		57,835		$		555,748
Convertible Bonds			–			532,120			–				532,120
Corporate Bonds and Notes			–			12,011,165			–				12,011,165
Senior Floating Rate Interests			–			658,498			–				658,498
Foreign Government and Agency Securities			–			2,776,942			–				2,776,942
U.S. Government and Agency Securities			–			170,863			–				170,863
Asset-Backed Securities and Commercial Mortgage-Backed Securities			–			10,950,239			–				10,950,239
Options Purchased			2,040			23			–				2,063
Short Term Investments			21,506,085			–			–				21,506,085

Total Investments in Securities	$		21,951,134	$		27,154,754	$		57,835		$		49,163,723

Other Financial Instruments:
Forward Exchange Contracts	$		–	$		270,277	$		–		$		270,277
Swap Contracts			–			264,678			–				264,678

Total Other Financial Instruments	$		–	$		534,955	$		–		$		534,955


Liabilities:
Other Financial Instruments:
Options Written	$		12,400	$		–	$		–		$		12,400
Securities Sold Short^a			1,263,812			2,270,322			–				3,534,134
Futures Contracts			3,697			–			–				3,697
Forward Exchange Contracts			–			142,776			–				142,776
Swap Contracts			–			187,606			–				187,606
Unfunded Loan Commitments			–			14,650			–	^c			14,650

Total Other Financial Instruments	$		1,279,909	$		2,615,354	$		–		$		3,895,263

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

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

^c	Includes securities determined to have no value at February 28, 2023.

^d	Includes foreign securities valued at $18,371,722, 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 $1,312,358, 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.

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

113

Franklin K2 Alternative Strategies Fund (FABZX) NPORT-PK2 Long Short Credit Fund (Feb 2023 report)