N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number          811-22641            

                         Franklin Alternative Strategies Funds                        

(Exact name of registrant as specified in charter)

One Franklin Parkway

                    San Mateo, CA 94403-1906                    

(Address of principal executive offices) (Zip code)

Alison Baur

One Franklin Parkway

San Mateo, CA 94403-1096  

(Name and address of agent for service)

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

Date of fiscal year end:  May 31

Date of reporting period:  November 30, 2023

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

SEMIANNUAL REPORT

K2 ALTERNATIVE STRATEGIES FUND

Franklin Alternative Strategies Funds

November 30, 2023

The Securities and Exchange Commission has adopted new regulations that will result in changes to the design and delivery of annual and semiannual shareholder reports beginning in July 2024.

If you have previously elected to receive shareholder reports electronically, you will continue to do so and need not take any action.

Otherwise, paper copies of the Fund’s shareholder reports will be mailed to you beginning in July 2024. If you would like to receive shareholder reports and other communications from the Fund electronically instead of by mail, you may make that request at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, enrolling at franklintempleton.com.

You may access franklintempleton.com by scanning the code below.

Not FDIC Insured | May Lose Value | No Bank Guarantee

Contents
Fund Overview	2
Performance Summary	4
Your Fund’s Expenses	6
Consolidated Financial Highlights and Consolidated Schedule of Investments	7
Consolidated Financial Statements	81
Notes to Consolidated Financial Statements	85
Shareholder Information	103

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

franklintempleton.com Semiannual Report 1

K2 Alternative Strategies Fund

This semiannual report for K2 Alternative Strategies Fund covers the period ended November 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

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

Performance Overview

The Fund’s Class A shares posted a +1.40% cumulative total return for the six months under review. For comparison, the Fund’s primary benchmark, the HFRX Global Hedge Fund Index, which is designed to be representative of the overall composition of the hedge fund universe, posted a +1.83% cumulative total return for the same period.¹ Also for comparison, the Fund’s secondary benchmark, the ICE BofA U.S. 3-Month Treasury Bill Index, which tracks the performance of short-term U.S. government securities with a remaining term to final maturity of less than three months, posted a +2.69% cumulative total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 4.

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

Strategy Allocation*
Based on Total Net Assets as of 11/30/23
Strategy	Long Positions		Short Positions
Long Short Equity		36.8%		-25.5%
Relative Value		42.9%		-39.7%
Event Driven		13.0%		-7.5%
Global Macro		79.5%		-139.7%
Conditional Risk Overlay (CRO)#		0.0%		-0.0%
Total		172.2%		-212.4%

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

^#The strategy was not active at period end.

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

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

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Consolidated Schedule of Investments (SOI). The Consolidated SOI begins on page 12.

2 Semiannual Report franklintempleton.com

K2 ALTERNATIVE STRATEGIES FUND

Subadvisors

11/30/23

Long Short Equity

ActusRayPartners Limited

Chilton Investment Company, Inc.

Electron Capital Partners, LLC

Jennison Associates, LLC

Relative Value    

Apollo Credit Management LLC

DLD Asset Management, LP

Lazard Asset Management, LLC

Loomis Sayles & Company, L.P.

One River Asset Management, LLC

Event Driven    

Bardin Hill Arbitrage IC Management LP

P. Schoenfeld Asset Management L.P.

Global Macro    

Capital Fund Management S.A.

Graham Capital Management, L.P.

RBC Global Asset Management (UK) Limited (formerly, BlueBay Asset Management LLP)

RV Capital Management Private Ltd.

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

Brooks Ritchey

Co-Lead Portfolio Manager

Robert Christian

Co-Lead Portfolio Manager

Anthony Zanolla, CFA

Portfolio Manager

CFA^® is a trademark owned by CFA Institute.

franklintempleton.com Semiannual Report 3

K2 ALTERNATIVE STRATEGIES FUND

Performance Summary as of November 30, 2023

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

Performance as of 11/30/23¹

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

Share Class	Cumulative Total Return2		Average Annual Total Return3
A4
6-Month		+1.40%		-4.16%
1-Year		+1.35%		-4.22%
5-Year		+7.33%		+0.28%
10-Year		+23.78%		+1.58%
Since Inception (10/11/13)		+26.62%		+1.79%
Advisor
6-Month		+1.58%		+1.58%
1-Year		+1.71%		+1.71%
5-Year		+8.69%		+1.68%
10-Year		+27.10%		+2.43%
Since Inception (10/11/13)		+30.02%		+2.62%

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

See page 5 for Performance Summary footnotes.

4 Semiannual Report franklintempleton.com

K2 ALTERNATIVE STRATEGIES FUND

Total Annual Operating Expenses⁵

Share Class	With Fee Waiver		Without Fee Waiver
A		2.62%		2.89%
Advisor		2.37%		2.64%

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

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. The Fund is actively managed and could experience losses if the investment manager’s and subadvisors’ judgment about particular investments made for the Fund’s portfolio prove to be incorrect. The allocation of assets among different strategies, asset classes and investments may not prove beneficial or produce the desired results. Some subadvisors may have little or no experience managing the assets of a registered investment company. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. Currency management strategies could result in losses to the Fund if currencies do not perform as expected. Short selling is a speculative strategy. Unlike the possible loss on a security that is purchased, there is no limit on the amount of loss on an appreciating security that is sold short. Investments in companies engaged in mergers, reorganizations or liquidations also involve special risks as pending deals may not be completed on time or on favorable terms. Liquidity risk exists when securities or other investments become more difficult to sell, or are unable to be sold, at the price at which they have been valued. These and other risks are discussed in the Fund’s prospectus.

1. Gross expenses are the Fund’s total annual operating expenses as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns. Net expenses reflect contractual fee waivers, expense caps and/or reimbursements, which cannot be terminated prior to 9/30/24 without Board consent. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice.

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

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

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

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

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

franklintempleton.com Semiannual Report 5

K2 ALTERNATIVE STRATEGIES FUND

Your Fund’s Expenses

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

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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

			Actual (actual return after expenses)				Hypothetical (5% annual return before expenses)
Share Class	Beginning Account Value 6/01/23		Ending Account Value 11/30/23		Expenses Paid During Period 6/01/23–11/30/231,2		Ending Account Value 11/30/23		Expenses Paid During Period 6/01/23–11/30/231,2		Net Annualized Expense Ratio2
A	$	1,000	$	1,014.00	$	13.04	$	1,012.05	$	13.03		2.59	%
C	$	1,000	$	1,009.70	$	16.78	$	1,008.30	$	16.77		3.34	%
R	$	1,000	$	1,013.00	$	14.29	$	1,010.80	$	14.28		2.84	%
R6	$	1,000	$	1,016.70	$	11.65	$	1,013.45	$	11.63		2.31	%
Advisor	$	1,000	$	1,015.80	$	11.79	$	1,013.30	$	11.78		2.34	%

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

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

6 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Consolidated Financial Highlights

K2 Alternative Strategies Fund

	Six Months Ended November 30, 2023 (unaudited)		Year Ended May 31,
			2023			2022			2021			2020			2019
Class A
Per share operating performance (for a share outstanding throughout the period)
Net asset value, beginning of period	$	10.69	$	11.16		$	12.46		$	11.19		$	11.28		$	11.38
Income from investment operationsa:
Net investment income (loss)b		0.10		0.15			(0.06	)		(0.08	)		(0.03	)		0.04
Net realized and unrealized gains (losses)		0.06		(0.32	)		(0.68	)		1.45			0.02			0.11
Total from investment operations		0.16		(0.17	)		(0.74	)		1.37			(0.01	)		0.15
Less distributions from:
Net investment income		—		(0.21	)		(0.06	)		—			(0.07	)		—
Net realized gains		—		(0.09	)		(0.50	)		(0.10	)		(0.01	)		(0.25	)
Total distributions		—		(0.30	)		(0.56	)		(0.10	)		(0.08	)		(0.25	)
Net asset value, end of period	$	10.85	$	10.69		$	11.16		$	12.46		$	11.19		$	11.28
Total returnc		1.40%		(1.48)%			(6.25)%			12.25%			(0.15)%			1.35%
Ratios to average net assetsd
Expenses before waiver, payments by affiliates and expense reductione		2.89%		2.82%			2.75%			2.82%			2.58%			2.73%
Expenses net of waiver, payments by affiliates and expense reductione		2.59%		2.64%			2.60%f			2.64%			2.40%			2.56%
Expenses incurred in connection with securities sold short		0.44%		0.45%			0.40%			0.44%			0.20%			0.36%
Net investment income (loss)		1.77%		1.31%			(0.49)%			(0.67)%			(0.25)%			0.36%
Supplemental data
Net assets, end of period (000’s)		$66,353		$76,464			$94,580			$102,138			$90,205			$104,452
Portfolio turnover rate		128.86%		225.53%			177.61%			236.64%			271.51%			235.47%

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

^bBased on average daily shares outstanding.

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

^dRatios are annualized for periods less than one year.

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

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

franklintempleton.com The accompanying notes are an integral part of these consolidated financial statements.    |   Semiannual Report 7

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

K2 Alternative Strategies Fund (continued)

	Six Months Ended November 30, 2023 (unaudited)		Year Ended May 31,
			2023			2022			2021			2020			2019
Class C
Per share operating performance (for a share outstanding throughout the period)
Net asset value, beginning of period	$	10.35	$	10.80		$	12.11		$	10.95		$	11.05		$	11.25
Income from investment operationsa:
Net investment income (loss)b		0.05		0.06			(0.15	)		(0.15	)		(0.11	)		(0.05	)
Net realized and unrealized gains (losses)		0.06		(0.31	)		(0.66	)		1.41			0.02			0.10
Total from investment operations		0.11		(0.25	)		(0.81	)		1.26			(0.09	)		0.05
Less distributions from:
Net investment income		—		(0.11	)		—			—			—			—
Net realized gains		—		(0.09	)		(0.50	)		(0.10	)		(0.01	)		(0.25	)
Total distributions		—		(0.20	)		(0.50	)		(0.10	)		(0.01	)		(0.25	)
Net asset value, end of period	$	10.46	$	10.35		$	10.80		$	12.11		$	10.95		$	11.05
Total returnc		0.97%		(2.12)%			(7.06)%			11.51%			(0.85)%			0.56%
Ratios to average net assetsd
Expenses before waiver, payments by affiliates and expense reductione		3.64%		3.57%			3.50%			3.54%			3.33%			3.48%
Expenses net of waiver, payments by affiliates and expense reductione		3.34%		3.39%			3.35%f			3.36%			3.15%			3.31%
Expenses incurred in connection with securities sold short		0.44%		0.45%			0.40%			0.44%			0.20%			0.36%
Net investment income (loss)		1.02%		0.55%			(1.24)%			(1.39)%			(1.00)%			(0.39)%
Supplemental data
Net assets, end of period (000’s)		$10,978		$15,720			$24,486			$31,541			$36,043			$44,897
Portfolio turnover rate		128.86%		225.53%			177.61%			236.64%			271.51%			235.47%

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

^bBased on average daily shares outstanding.

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

^dRatios are annualized for periods less than one year.

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

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

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

K2 Alternative Strategies Fund (continued)

	Six Months Ended November 30, 2023 (unaudited)		Year Ended May 31,
			2023			2022			2021			2020			2019
Class R
Per share operating performance (for a share outstanding throughout the period)
Net asset value, beginning of period	$	10.73	$	11.13		$	12.44		$	11.20		$	11.28		$	11.42
Income from investment operationsa:
Net investment income (loss)b		0.08		0.10			(0.08	)		(0.11	)		(0.06	)		0.02
Net realized and unrealized gains (losses)		0.07		(0.31	)		(0.68	)		1.45			0.02			0.09
Total from investment operations		0.15		(0.21	)		(0.76	)		1.34			(0.04	)		0.11
Less distributions from:
Net investment income		—		(0.10	)		(0.05	)		—			(0.03	)		—
Net realized gains		—		(0.09	)		(0.50	)		(0.10	)		(0.01	)		(0.25	)
Total distributions		—		(0.19	)		(0.55	)		(0.10	)		(0.04	)		(0.25	)
Net asset value, end of period	$	10.88	$	10.73		$	11.13		$	12.44		$	11.20		$	11.28
Total returnc		1.30%		(1.65)%			(6.50)%			11.97%			(0.39)%			1.08%
Ratios to average net assetsd
Expenses before waiver, payments by affiliates and expense reductione		3.14%		3.07%			3.04%			3.06%			2.83%			2.98%
Expenses net of waiver, payments by affiliates and expense reductione		2.84%		2.89%			2.85%f			2.88%			2.65%			2.81%
Expenses incurred in connection with securities sold short		0.44%		0.45%			0.40%			0.44%			0.20%			0.36%
Net investment income (loss)		1.52%		1.05%			(0.78)%			(0.91)%			(0.50)%			0.11%
Supplemental data
Net assets, end of period (000’s)		$304		$351			$811			$840			$884			$844
Portfolio turnover rate		128.86%		225.53%			177.61%			236.64%			271.51%			235.47%

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

^bBased on average daily shares outstanding.

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

^dRatios are annualized for periods less than one year.

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

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

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

K2 Alternative Strategies Fund (continued)

	Six Months Ended November 30, 2023 (unaudited)		Year Ended May 31,
			2023			2022			2021			2020			2019
Class R6
Per share operating performance (for a share outstanding throughout the period)
Net asset value, beginning of period	$	10.78	$	11.27		$	12.58		$	11.25		$	11.34		$	11.41
Income from investment operationsa:
Net investment income (loss)b		0.11		0.18			(0.02	)		(0.04	)		0.01			0.08
Net realized and unrealized gains (losses)		0.07		(0.33	)		(0.69	)		1.47			0.02			0.10
Total from investment operations		0.18		(0.15	)		(0.71	)		1.43			0.03			0.18
Less distributions from:
Net investment income		—		(0.25	)		(0.10	)		—			(0.11	)		—
Net realized gains		—		(0.09	)		(0.50	)		(0.10	)		(0.01	)		(0.25	)
Total distributions		—		(0.34	)		(0.60	)		(0.10	)		(0.12	)		(0.25	)
Net asset value, end of period	$	10.96	$	10.78		$	11.27		$	12.58		$	11.25		$	11.34
Total returnc		1.67%		(1.20)%			(6.05)%			12.61%			0.27%			1.70%
Ratios to average net assetsd
Expenses before waiver, payments by affiliates and expense reductione		2.52%		2.48%			2.44%			2.50%			2.26%			2.41%
Expenses net of waiver, payments by affiliates and expense reductione		2.31%		2.36%			2.32%f			2.32%			2.07%			2.23%
Expenses incurred in connection with securities sold short		0.44%		0.45%			0.40%			0.44%			0.20%			0.36%
Net investment income (loss)		2.13%		1.64%			(0.18)%			(0.35)%			0.08%			0.69%
Supplemental data
Net assets, end of period (000’s)		$41,506		$44,192			$47,851			$27,471			$15,537			$42,842
Portfolio turnover rate		128.86%		225.53%			177.61%			236.64%			271.51%			235.47%

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

^bBased on average daily shares outstanding.

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

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

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

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

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL HIGHLIGHTS

K2 Alternative Strategies Fund (continued)

	Six Months Ended November 30, 2023 (unaudited)		Year Ended May 31,
			2023			2022			2021			2020			2019
Advisor Class
Per share operating performance (for a share outstanding throughout the period)
Net asset value, beginning of period	$	10.76	$	11.24		$	12.55		$	11.23		$	11.33		$	11.40
Income from investment operationsa:
Net investment income (loss)b		0.11		0.17			(0.03	)		(0.05	)		—c			0.07
Net realized and unrealized gains (losses)		0.07		(0.32	)		(0.69	)		1.47			0.01			0.11
Total from investment operations		0.18		(0.15	)		(0.72	)		1.42			0.01			0.18
Less distributions from:
Net investment income		—		(0.24	)		(0.09	)		—			(0.10	)		—
Net realized gains		—		(0.09	)		(0.50	)		(0.10	)		(0.01	)		(0.25	)
Total distributions		—		(0.33	)		(0.59	)		(0.10	)		(0.11	)		(0.25	)
Net asset value, end of period	$	10.94	$	10.76		$	11.24		$	12.55		$	11.23		$	11.33
Total returnd		1.58%		(1.21)%			(6.05)%			12.55%			0.19%			1.61%
Ratios to average net assetse
Expenses before waiver, payments by affiliates and expense reductionf		2.64%		2.57%			2.50%			2.57%			2.33%			2.48%
Expenses net of waiver, payments by affiliates and expense reductionf		2.34%		2.39%			2.35%g			2.39%			2.15%			2.31%
Expenses incurred in connection with securities sold short		0.44%		0.45%			0.40%			0.44%			0.20%			0.36%
Net investment income (loss)		2.02%		1.55%			(0.24)%			(0.42)%			—h			0.61%
Supplemental data
Net assets, end of period (000’s)		$569,660		$710,974			$1,099,387			$1,152,105			$977,094			$1,046,252
Portfolio turnover rate		128.86%		225.53%			177.61%			236.64%			271.51%			235.47%

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

^bBased on average daily shares outstanding.

^c Amount rounds to less than $0.01.

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

^eRatios are annualized for periods less than one year.

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

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

^hAmount rounds to less than 0.01%.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Consolidated Schedule of Investments, November 30, 2023 (unaudited)

K2 Alternative Strategies Fund

		Country		Shares/ Warrants/ Rights		Value
	Common Stocks and Other Equity Interests 26.5%
	Aerospace & Defense 0.0%†
a	Eve Holding Inc., 5/09/27, wts.		United States		180,101	$	70,600
a	Satellogic Inc., 1/25/27, wts.		United States		2,058		291
							70,891
	Airlines 0.0%†
	Southwest Airlines Co.		United States		1,830		46,793
	Auto Components 0.0%†
	Patrick Industries Inc.		United States		72		5,907
	Automobile Components 0.3%
a	The Goodyear Tire & Rubber Co.		United States		117,000		1,625,130
a	Vitesco Technologies Group AG		Germany		6,854		700,484
							2,325,614
	Automobiles 0.1%
	General Motors Co.		United States		23,796		751,954
a	Livewire Group Inc., 9/27/27, wts.		United States		101,460		36,526
a	Next.e.GO NV		Netherlands		2,308		1,292
							789,772
	Beverages 0.2%
a	Monster Beverage Corp.		United States		13,102		722,575
	PepsiCo Inc.		United States		2,015		339,104
	Remy Cointreau SA		France		1,289		153,207
							1,214,886
	Biotechnology 3.3%
a	Abcam PLC, ADR		United Kingdom		35,391		848,322
a	Apellis Pharmaceuticals Inc.		United States		55,518		2,990,755
a	Argenx SE, ADR		Netherlands		3,657		1,647,881
a	Ascendis Pharma A/S, ADR		Denmark		7,882		791,589
a	BioMarin Pharmaceutical Inc.		United States		12,643		1,151,525
a	Exact Sciences Corp.		United States		845		54,080
a	Exelixis Inc.		United States		23,240		506,864
a	Immunogen Inc.		United States		3,969		116,490
a	Immunovant Inc.		United States		5,635		220,498
a,b	Ionis Pharmaceuticals Inc.		United States		1,092		54,021
a,c	Karuna Therapeutics Inc.		United States		5,679		1,085,882
a	Krystal Biotech Inc.		United States		13,180		1,373,751
a,c	Neurocrine Biosciences Inc.		United States		15,424		1,798,284
a,d	Point Biopharma Global Inc., A		United States		30,885		420,036
a	Praxis Precision Medicines Inc.		United States		4,217		76,743
a,c,d	Seagen Inc.		United States		28,515		6,079,683
a	Trisalus Life Sciences Inc., 8/10/28, wts.		United States		16,689		4,172
a	Vaxcyte Inc.		United States		28,963		1,499,415
a,c	Vertex Pharmaceuticals Inc.		United States		4,585		1,626,804
a	Xenon Pharmaceuticals Inc.		Canada		6,690		244,720
							22,591,515
	Capital Markets 0.1%
	Moody’s Corp.		United States		2,233		814,956
	Chemicals 0.5%
a	Aspen Aerogels Inc.		United States		15,730		164,850
a,e	Covestro AG, 144A		Germany		6,649		349,646
	The Sherwin-Williams Co.		United States		7,486		2,087,097
	Sociedad Quimica y Minera de Chile SA, ADR		Chile		18,587		933,811
							3,535,404

12 Semiannual Report franklintempleton.com

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)
	Commercial Services & Supplies 0.5%
a	Bitcoin Depot Inc., 7/03/28, wts.		United States		12,581	$	1,494
	Cintas Corp.		United States		1,482		819,916
	Republic Services Inc., A		United States		14,181		2,295,053
a	Shapeways Holdings Inc., 10/18/24, wts.		United States		13,286		60
	TETRA Tech Inc.		United States		218		34,477
							3,151,000
	Communications Equipment 0.0%†
a,f	Riverbed Technology, Inc.		United States		1,499		—
	Construction & Engineering 0.8%
a,c	Fluor Corp.		United States		1,833		69,709
a	Mastec Inc.		United States		37,981		2,303,168
	Quanta Services Inc.		United States		15,265		2,874,552
							5,247,429
	Construction Materials 0.5%
a	CRH PLC		United States		52,753		3,310,251
	Consumer Finance 0.3%
a	NeoGames S.A.		Israel		69,640		1,941,563
	Diversified Consumer Services 0.0%†
a	Allurion Technologies Inc., 8/02/30, wts.		United States		62,822		40,834
a,c	Stride Inc.		United States		3,451		209,062
							249,896
	Diversified Financial Services 0.6%
a	7GC & Co. Holdings Inc., A, 12/31/26, wts.		United States		3,244		101
a	Altc Acquisition Corp., A		United States		4,549		47,082
a	Andretti Acquisition Corp., A		United States		4,486		48,673
a,f	Apollo Strategic Growth Capital II, A, 2/12/28, wts.		United States		5,405		—
a	Ares Acquisition Corp. II		United States		26,500		274,805
a	Ares Acquisition Corp. II, 6/12/28, wts.		United States		42,181		7,593
a	Athena Technology Acquisition Corp. II, A, 10/17/28, wts.		United States		19,317		642
a	Atlantic Coastal Acquisition Corp., A, 12/31/27, wts.		United States		5,443		96
a	Berkshire Hathaway Inc., B		United States		1,342		483,120
a	Capitalworks Emerging Markets Acquisition Corp., A, 4/27/28, wts.		United States		7,737		182
a,f	CC Neuberger Principal Holdings III, 2/05/26, wts.		United States		7,027		—
a	Churchill Capital Corp. VI, A		United States		9,074		95,096
a,c	Churchill Capital Corp. VII, A		United States		18,930		198,576
a	Churchill Capital Corp. VII, A, 2/29/28, wts.		United States		10,563		1,056
a	Conx Corp., A, 10/30/27, wts.		United States		14,679		4,697
a	Corner Growth Acquisition Corp., A, 6/17/26, wts.		United States		5,737		229
a	Corner Growth Acquisition Corp., A, 12/31/27, wts.		United States		7,606		381
a	Crown PropTech Acquisitions, 12/31/27, wts.		United States		12,844		771
a	DHC Acquisition Corp., A, 12/31/27, wts.		United States		241		5
a	EF Hutton Acquisition Corp. I		United States		35,442		381,710
a	Energy Transition Partners BV		Netherlands		3,372		34,869
a	Energy Transition Partners BV, 7/16/26, wts.		Netherlands		1,124		—
a	Focus Impact Acquisition Corp., A, 10/28/26, wts.		United States		6,618		106
a,c	Forest Road Acquisition Corp. II, A		United States		32,625		345,173
a,c	Four Leaf Acquisition Corp., A		United States		39,000		409,500
a,c	Four Leaf Acquisition Corp., A, 5/12/28, wts.		United States		39,000		1,901
a,c	Fusion Acquisition Corp. II, A, 12/31/27, wts.		United States		5,297		211
a	Global Partner Acquisition Corp. II, A, 12/31/27, wts.		United States		2,950		208
a	Inflection Point Acquisition Corp. II, A		United States		13,876		142,784
a	Inflection Point Acquisition Corp. II, A, 7/17/28, wts.		United States		27,958		4,893

franklintempleton.com Semiannual Report 13

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)
a	Investcorp Europe Acqusition Corp. I, A, 11/23/28, wts.		United States		116,809	$	17,522
a	Jaws Mustang Acquisition Corp., A, 1/30/26, wts.		United States		8,196		90
a	Keen Vision Acquisition Corp.		United States		32,220		166,432
a	Landcadia Holdings IV Inc., A, 3/29/28, wts.		United States		1,171		41
a	Learn CW Investment Corp., A, 12/31/28, wts.		United States		9,863		267
a,f	Live Oak Crestview Climate Acquisition Corp., A, 9/27/28, wts.		United States		452		—
a	M3-Brigade Acquisition II Corp., A, 3/09/26, wts.		United States		7,608		20
a	Nabors Energy Transition Corp. II		United States		7,058		73,121
a	Nabors Energy Transition Corp. II, 9/05/28, wts.		United States		20,137		2,668
a	Nabors Energy Transition Corp. II, A		United States		40,275		415,235
a	Northern Star Investment Corp. II, A, 1/31/28, wts.		United States		3,083		55
a,c	Oak Woods Acquisition Corp., A		Canada		46,800		490,932
a	Oak Woods Acquisition Corp., A, 3/23/28, wts.		Canada		46,800		1,544
a	Oak Woods Acquisition Corp., Contingent Value, rts., 2/20/49		Canada		46,800		6,084
a	Patria Latin American Opportunity Acquisition Corp.		Cayman Islands		13,116		144,997
a,f	Pegasus Acquisition Co. Europe BV, A		Netherlands		5,997		—
a,f	Pershing Square Tontine Holdings Ltd., A		United States		42,829		8,566
f	Pershing Square Tontine Holdings Ltd., Contingent Value, rts., 12/31/33		United States		10,707		—
a	Rigel Resource Acquisition Corp., A, 11/05/26, wts.		United States		4,071		528
a	RMG Acquisition Corp. III, A, 12/31/27, wts.		United States		557		39
a	Screaming Eagle Acquisition Corp., A		United States		18,936		199,964
a	Screaming Eagle Acquisition Corp., A, 12/15/27, wts.		United States		20,384		1,634
a	Slam Corp., A, 12/31/27, wts.		United States		7,928		694
a	Social Leverage Acquisition Corp. I, A		United States		13,866		142,404
a	Social Leverage Acquisition Corp. I, A, 2/17/28, wts.		United States		3,466		73
a	Southport Acquisition Corp., 5/24/28, wts.		United States		4,946		62
a	Spree Acquisition Corp. 1 Ltd., 12/22/28, wts.		Israel		3,069		55
a	Target Global Acquisition I Corp., A, 12/31/27, wts.		Israel		3,516		202
a	Teract SA, 11/16/25, wts.		France		3,920		105
a	Twelve Seas Investment Co. II, A, 3/02/28, wts.		United States		1,629		49
							4,157,843
	Electric Utilities 3.1%
	Constellation Energy Corp.		United States		30,054		3,637,736
c	Edison International		United States		36,913		2,472,802
a	Energy Harbor Corp.		United States		77,123		6,218,042
c	NRG Energy Inc.		United States		3,773		180,500
	Origin Energy Ltd.		Australia		192,424		1,049,773
a,c	PG&E Corp.		United States		137,025		2,352,719
c	PNM Resources Inc.		United States		20,286		843,289
	PPL Corp.		United States		137,703		3,596,803
a	Talen Energy Corp., A		United States		1,337		76,677
a,c	Talen Energy Supply LLC, A		United States		19,108		1,095,844
							21,524,185
	Electrical Equipment 1.7%
a	Amprius Technologies Inc., 9/14/27, wts.		United States		137,166		35,663
a,c	Array Technologies Inc.		United States		182,020		2,815,849
a	Bloom Energy Corp., A		United States		44,065		636,299
	Eaton Corp. PLC		United States		2,687		611,803
	Emerson Electric Co.		United States		15,417		1,370,571
a,c	Enovix Corp.		United States		89,664		992,581
a,c	Fluence Energy Inc., A		United States		54,020		1,354,822
a	Shoals Technologies Group Inc., A		United States		59,354		822,053
c,d	Vertiv Holdings Co., A		United States		73,184		3,195,213
							11,834,854

14 Semiannual Report franklintempleton.com

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)
	Electronic Equipment, Instruments & Components 0.2%
a,d	Hollysys Automation Technologies Ltd.		China		61,077	$	1,392,556
a	Movella Holdings Inc., A, 12/31/27, wts.		United States		5,567		132
a	Presto Automation Inc., 9/21/27, wts.		United States		18,270		533
							1,393,221
	Energy Equipment & Services 0.1%
a	Nabors Industries Ltd.		United States		2,777		241,099
a	Pgs ASA		Norway		282,275		235,905
a,c	Transocean Ltd., 3/13/26, wts.		United States		11,501		30,478
							507,482
	Entertainment 0.2%
	Endeavor Group Holdings Inc., A		United States		19,055		463,227
a,d	Manchester United PLC, A		United Kingdom		9,997		194,841
	TKO Group Holdings Inc., A		United States		5,611		433,899
							1,091,967
	Equity Real Estate Investment Trusts (REITs) 0.1%
c	VICI Properties Inc., A		United States		16,744		500,478
	Food & Staples Retailing 0.6%
	Albertsons Cos. Inc., A		United States		87,520		1,905,310
c	Costco Wholesale Corp.		United States		3,229		1,913,958
							3,819,268
	Food Products 0.5%
a	Benson Hill Inc., 9/29/26, wts.		United States		5,669		193
	Chocoladefabriken Lindt & Spruengli AG		Switzerland		37		457,494
	Costa Group Holdings Ltd.		Australia		1,042,657		2,136,757
a	Hotel Chocolat Group PLC		United Kingdom		73,574		340,883
a	Sovos Brands Inc.		United States		15,774		345,608
							3,280,935
	Ground Transportation 0.2%
	Canadian Pacific Kansas City Ltd.		Canada		19,270		1,387,440
	Health Care Equipment & Supplies 1.9%
a	Axonics Inc.		United States		5,754		322,166
	Baxter International Inc.		United States		52,187		1,882,907
	Becton Dickinson and Co.		United States		8,711		2,057,364
a,c	Boston Scientific Corp.		United States		16,922		945,771
	The Cooper Cos. Inc.		United States		6,909		2,327,780
a,c	Envista Holdings Corp.		United States		3,171		71,950
a	Envoy Medical Inc.		United States		2,340		5,265
a	Envoy Medical Inc., 12/31/27, wts.		United States		35,404		768
c	GE Healthcare Technologies Inc.		United States		28,201		1,930,640
a	Hologic Inc.		United States		19,662		1,401,901
a,c	Intuitive Surgical Inc.		United States		4,942		1,536,171
a,c	Spectral AI Inc., 12/31/27, wts.		United States		19,875		2,604
c	Stryker Corp.		United States		1,750		518,578
							13,003,865
	Health Care Providers & Services 0.7%
a	Amedisys Inc.		United States		11,479		1,074,205
a	Enhabit Inc.		United States		38,528		410,708
c	Humana Inc.		United States		1,825		884,870
c	UnitedHealth Group Inc.		United States		4,661		2,577,393
							4,947,176

franklintempleton.com Semiannual Report 15

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)
	Hotels, Restaurants & Leisure 0.0%†
a	F45 Training Holdings Inc.		United States		120,050	$	6,603
a	HomeToGo SE, 12/31/25, wts.		Luxembourg		716		8
a	Sonder Holdings Inc., 1/31/28, wts.		United States		3,948		86
							6,697
	Independent Power & Renewable Electricity Producers 1.0%
	The AES Corp.		United States		137,161		2,360,541
	Clearway Energy Inc., C		United States		17,189		429,209
c	NextEra Energy Partners LP		United States		12,711		299,217
a,c	Sunnova Energy International Inc.		United States		129,190		1,498,604
	Vistra Corp.		United States		60,430		2,139,826
							6,727,397
	Industrial Conglomerates 0.6%
c	General Electric Co.		United States		22,061		2,687,030
	Hitachi Ltd.		Japan		19,359		1,346,056
							4,033,086
	Industrial REITs 0.1%
	Intervest Offices & Warehouses NV		Belgium		25,296		567,215
	Insurance 0.7%
a	American Equity Investment Life Holding Co.		United States		21,630		1,193,111
a	Aon PLC, A		United States		4,199		1,379,330
	Arthur J Gallagher & Co.		United States		2,850		709,650
	The Progressive Corp.		United States		4,697		770,449
	W.R. Berkley Corp.		United States		10,488		760,904
							4,813,444
	Interactive Media & Services 0.3%
a	Adevinta ASA, B		France		115,534		1,197,300
a	Alphabet Inc., A		United States		4,749		629,385
a,f	Wejo Group Ltd., 11/18/26, wts.		United States		3,488		17
							1,826,702
	Internet & Direct Marketing Retail 0.0%†
a	Cazoo Group Ltd., 8/26/26, wts.		Cayman Islands		19,178		8
a	Farfetch Ltd., A		United Kingdom		10,537		12,328
a,b	Wayfair Inc., A		United States		309		17,242
							29,578
	IT Services 0.7%
a	Core Scientific Inc., 1/19/27, wts.		United States		1,383		249
	International Business Machines Corp.		United States		6,680		1,059,181
	MasterCard Inc., A		United States		2,578		1,066,853
a,e	Network International Holdings PLC, 144A		United Arab Emirates		578,548		2,855,819
a,e	Nexi SpA, 144A		Italy		10,274		80,148
							5,062,250
	Life Sciences Tools & Services 0.6%
a	Illumina Inc.		United States		3,503		357,131
a	Mettler-Toledo International Inc.		United States		1,691		1,846,454
a	QIAGEN NV		United States		50,157		2,064,462
							4,268,047
	Machinery 0.1%
	Deere & Co.		United States		1,188		432,919

16 Semiannual Report franklintempleton.com

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)
	Media 0.2%
a	Altice USA Inc., A		United States		56,100	$	129,030
a	Clear Channel Outdoor Holdings Inc., A		United States		192,601		279,271
a	Dish Network Corp., A		United States		12,042		44,074
a	Iheartmedia Inc., A		United States		33,414		87,545
a	Innovid Corp., A, 11/30/26, wts.		Israel		69		4
a,d	Liberty Media Corp.-Liberty SiriusXM		United States		32,000		863,680
							1,403,604
	Metals & Mining 0.2%
a	Iamgold Corp.		Burkina Faso		172,926		439,232
	Teck Resources Ltd., B		Canada		3,737		140,698
d	United States Steel Corp.		United States		20,201		725,216
							1,305,146
	Oil, Gas & Consumable Fuels 0.7%
a	Euronav NV		Belgium		35,791		643,880
a,f,g	Gazprom PJSC		Russia		615,160		—
c	New Fortress Energy Inc., A		United States		39,184		1,507,801
c,d	Pioneer Natural Resources Co.		United States		8,608		1,993,957
c	Targa Resources Corp.		United States		4,567		413,085
							4,558,723
	Personal Products 0.3%
	The Estee Lauder Cos. Inc., A		United States		1,473		188,087
	L’Oreal SA		France		4,037		1,896,952
							2,085,039
	Pharmaceuticals 1.3%
	AstraZeneca PLC, ADR		United Kingdom		33,123		2,139,414
	Dechra Pharmaceuticals PLC		United Kingdom		38,405		1,856,406
	Eli Lilly & Co.		United States		3,143		1,857,639
	Merck & Co. Inc.		United States		12,411		1,271,879
c	Novo Nordisk AS, ADR		Denmark		17,144		1,745,945
							8,871,283
	Professional Services 0.0%†
	Applus Services SA		Spain		23,694		255,846
a	Falcon’s Beyond Global Inc., A, 3/16/26, wts.		United States		180		117
							255,963
	Retail REITs 0.2%
	Spirit Realty Capital Inc.		United States		34,574		1,427,906
	Road & Rail 0.5%
c	CSX Corp.		United States		42,048		1,358,150
c	Hertz Corp. Escrow		United States		1,652,000		148,680
a	Uber Technologies Inc.		United States		34,220		1,929,324
							3,436,154
	Semiconductors & Semiconductor Equipment 0.2%
a	ams-OSRAM AG		Austria		477		931
a	ams-OSRAM AG, Contingent Value, rts., 12/20/23		Austria		477		796
a	First Solar Inc.		United States		4,235		668,198
a,c	ON Semiconductor Corp.		United States		1,903		135,741
a	Semtech Corp.		United States		1,463		23,949
a	Sequans Communications SA, ADR		France		159,760		460,109
	Silicon Motion Technology Corp., ADR		Taiwan		4,428		260,366

franklintempleton.com Semiannual Report 17

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)
	Semiconductors & Semiconductor Equipment (continued)
a	Tower Semiconductor Ltd.		Israel		1,374	$	37,620
							1,587,710
	Software 0.8%
e	ALFA Financial Software Holdings PLC, 144A		United Kingdom		189,977		359,755
a	Altair Engineering Inc., A		United States		1,413		102,386
	Bentley Systems Inc., B		United States		1,337		69,604
a,c	Dropbox Inc., A		United States		3,013		84,906
a	Esi Group		France		2,197		368,281
	Infomedia Ltd.		Australia		497,543		491,058
	Microsoft Corp.		United States		7,422		2,812,270
a	Nutanix Inc., A		United States		2,541		109,492
a	Roadzen Inc., 11/30/28, wts.		Virgin Islands		3,958		198
a,c	Splunk Inc.		United States		8,716		1,320,823
							5,718,773
	Specialized REITs 0.2%
	Digital Realty Trust Inc.		United States		5,076		704,447
	Equinix Inc.		United States		866		705,799
							1,410,246
	Specialty Retail 0.5%
a	Autozone Inc.		United States		307		801,249
a	Carvana Co., A		United States		1		31
	The Home Depot Inc.		United States		6,142		1,925,456
	Murphy USA Inc.		United States		2,106		778,272
	Musti Group OYJ		Finland		8,218		235,633
							3,740,641
	Textiles, Apparel & Luxury Goods 0.4%
a	Capri Holdings Ltd.		United States		30,794		1,491,661
	CIE Financiere Richemont SA, A		Switzerland		1,288		161,090
	Hermes International		France		473		980,300
							2,633,051
	Trading Companies & Distributors 0.4%
c	Herc Holdings Inc.		United States		17,381		2,149,334
	Textainer Group Holdings Ltd.		China		9,424		463,944
							2,613,278
	Wireless Telecommunication Services 0.0%†
c	Vodafone Group PLC, ADR		United Kingdom		22,797		206,541
	Total Common Stocks and Other Equity Interests (Cost $158,627,829)						181,765,984
	Preferred Stocks 0.1%
	Banks 0.0%†
	Silvergate Capital Corp., 5.375%, pfd., A		United States		5,445		57,173
	Thrifts & Mortgage Finance 0.0%†
	FHLMC, 8.375%, pfd., Z		United States		8,177		17,499
	FNMA, 8.25%, pfd., S		United States		15,150		34,087
							51,586

18 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Shares/ Warrants/ Rights			Value
	Preferred Stocks (continued)
	Trading Companies & Distributors 0.1%
	Textainer Group Holdings Ltd., pfd.,
	7.00%		Bermuda		9,000		$	227,250
	B, 6.25%		Bermuda		19,600			480,200
								707,450
	Total Preferred Stocks (Cost $833,824)							816,209
				Principal Amount*
	Convertible Bonds 13.4%
	Aerospace & Defense 0.2%
	Kaman Corp., senior note, 3.25%, 5/01/24		United States		1,219,000			1,188,525
	Airlines 0.4%
e	Air France-KLM, senior note, Reg S, 0.125%, 3/25/26		France		32,034	EUR		616,803
e	Cathay Pacific Finance III Ltd., senior note, Reg S, 2.75%, 2/05/26		Hong Kong		8,000,000	HKD		1,054,114
e	GOL Equity Finance SA, senior note, 144A, 3.75%, 7/15/24		Brazil		977,000			813,268
								2,484,185
	Automobiles 0.2%
e	Fisker Inc., senior note, 144A, 2.50%, 9/15/26		United States		1,094,000			211,689
	NIO Inc., senior note, 4.50%, 2/01/24		China		178,000			181,115
	Winnebago Industries Inc., senior note, 1.50%, 4/01/25		United States		576,000			672,480
								1,065,284
	Biotechnology 0.5%
	Apellis Pharmaceuticals Inc., senior note, 3.50%, 9/15/26		United States		364,000			560,778
c	Coherus Biosciences Inc., senior sub. note, 1.50%, 4/15/26		United States		854,000			451,019
c	Dynavax Technologies Corp., senior note, 2.50%, 5/15/26		United States		1,111,000			1,594,285
	Insmed Inc., senior note, 0.75%, 6/01/28		United States		243,000			239,476
	Karyopharm Therapeutics Inc., senior note, 3.00%, 10/15/25		United States		137,000			73,720
e	Mirum Pharmaceuticals Inc., senior note, 144A, 4.00%, 5/01/29		United States		22,000			28,325
e	Pharming Group NV, senior note, Reg S, 3.00%, 1/21/25		Netherlands		400,000	EUR		419,129
c	Travere Therapeutics Inc., senior note, 2.25%, 3/01/29		United States		490,000			278,688
								3,645,420
	Chemicals 0.1%
e	Danimer Scientific Inc., senior note, 144A, 3.25%, 12/15/26		United States		262,000			61,851
	Livent Corp., senior note, 4.125%, 7/15/25		United States		455,000			746,882
e	Purecycle Technologies Inc., senior note, 144A, 7.25%, 8/15/30		United States		129,000			71,918
								880,651
	Commercial Services & Supplies 0.0%†
e	Worldline SA, senior note, Reg S, zero cpn., 7/30/26		France		149,640	EUR		143,640
	Communications Equipment 0.1%
	Harmonic Inc., senior note, 2.00%, 9/01/24		United States		428,000			571,123
	Construction & Engineering 0.0%†
e	Granite Construction Inc., senior note, 144A, 3.75%, 5/15/28		United States		124,000			146,568
	Consumer Finance 0.2%
	EZCORP Inc., senior note,
	2.875%, 7/01/24		United States		618,000			622,635
	e 144A, 3.75%, 12/15/29		United States		569,000			556,197
e	SoFi Technologies Inc., senior note, 144A, zero cpn., 10/15/26		United States		244,000			187,148
e	Zip Co. Ltd., senior note, Reg S, 5.00%, 4/23/28		Australia		380,000	AUD		172,998
								1,538,978

franklintempleton.com Semiannual Report 19

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Convertible Bonds (continued)
	Consumer Non-Durables 0.2%
	Encore Capital Group Inc., senior note,
	3.25%, 10/01/25		United States		371,000		$	458,556
	e 144A, 4.00%, 3/15/29		United States		643,000			588,023
								1,046,579
	Diversified Consumer Services 0.1%
	Chegg Inc., senior note, 0.125%, 3/15/25		United States		472,000			431,172
e	Nexi SpA, senior note, Reg S, 1.75%, 4/24/27		Italy		200,000	EUR		199,574
								630,746
	Diversified Financial Services 0.1%
e	Bread Financial Holdings Inc., senior note, 144A, 4.25%, 6/15/28		United States		399,000			376,057
	Lendingtree Inc., senior note, 0.50%, 7/15/25		United States		249,000			198,578
e	Wisdomtree Inc., senior note, 144A, 5.75%, 8/15/28		United States		148,000			147,556
								722,191
	Diversified Telecommunication Services 0.2%
c,e	Match Group Financeco 2 Inc., senior note, 144A, 0.875%, 6/15/26		United States		1,271,000			1,118,480
	Electric Utilities 0.1%
e	PG&E Corp., senior secured note, 144A, 4.25%, 12/01/27		United States		890,000			890,000
	Electrical Equipment 0.1%
c	Plug Power Inc., senior note, 3.75%, 6/01/25		United States		764,000			688,593
	Electronic Equipment, Instruments & Components 0.0%†
e	Vishay Intertechnology Inc., senior note, 144A, 2.25%, 9/15/30		United States		23,000			21,562
	Energy Equipment & Services 0.4%
c	Helix Energy Solutions Group Inc., senior note, 6.75%, 2/15/26		United States		1,012,000			1,516,482
	Transocean Inc., senior note, 4.625%, 9/30/29		United States		660,000			1,366,596
								2,883,078
	Entertainment 0.3%
c	The Marcus Corp., senior note, 5.00%, 9/15/25		United States		473,000			674,261
c	Sea Ltd., senior note,
	2.375%, 12/01/25		Singapore		855,000			804,983
	0.25%, 9/15/26		Singapore		898,000			726,931
								2,206,175
	Equity Real Estate Investment Trusts (REITs) 0.2%
e	Hat Holdings I LLC / Hat Holdings II LLC, senior note, 144A,
	3.75%, 8/15/28		United States		150,000			160,320
	zero cpn., 5/01/25		United States		247,000			242,999
c	Pebblebrook Hotel Trust, senior note, 1.75%, 12/15/26		United States		962,000			792,688
b	Summit Hotel Properties Inc., senior note, 1.50%, 2/15/26		United States		310,000			262,260
								1,458,267
	Financial Services 0.2%
	Block Inc., senior note, 0.125%, 3/01/25		United States		1,431,000			1,365,746
	Food & Staples Retailing 0.1%
b,e	The Chefs’ Warehouse Inc., senior note, 144A, 2.375%, 12/15/28		United States		617,000			559,187
	Health Care Equipment & Supplies 0.3%
	CONMED Corp., senior note, 2.25%, 6/15/27		United States		243,000			239,233
	Cutera Inc., senior note, 2.25%, 6/01/28		United States		105,000			24,463
	Mesa Laboratories Inc., senior note, 1.375%, 8/15/25		United States		557,000			503,751
	NuVasive Inc., senior note, 0.375%, 3/15/25		United States		822,000			756,240
c	Varex Imaging Corp., senior note, 4.00%, 6/01/25		United States		773,000			878,824
								2,402,511

20 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Convertible Bonds (continued)
	Health Care Providers & Services 0.2%
f	Inotiv Inc., senior note, 3.25%, 10/15/27		United States		607,000		$	236,693
	NeoGenomics Inc., senior note, 1.25%, 5/01/25		United States		508,000			499,110
	PetIQ Inc., A, senior note, 4.00%, 6/01/26		United States		641,000			614,719
								1,350,522
	Health Care Technology 1.5%
	Bill Holdings Inc., senior note, zero cpn., 12/01/25		United States		868,000			776,860
	Blackline Inc., senior note,
	0.125%, 8/01/24		United States		338,000			339,048
	zero cpn., 3/15/26		United States		749,000			650,694
	Cerence Inc., senior note, 3.00%, 6/01/25		United States		121,000			114,288
	Cloudflare Inc., senior note, zero cpn., 8/15/26		United States		432,000			380,160
	Confluent Inc., senior note, zero cpn., 1/15/27		United States		25,000			20,407
	Digitalocean Holdings Inc., senior note, zero cpn., 12/01/26		United States		1,266,000			1,002,545
	Evolent Health Inc., senior note, 1.50%, 10/15/25		United States		820,000			892,480
	Five9 Inc., senior note, 0.50%, 6/01/25		United States		1,482,000			1,419,756
	Health Catalyst Inc., senior note, 2.50%, 4/15/25		United States		709,000			661,568
	Hubspot Inc., senior note, 0.375%, 6/01/25		United States		583,000			1,042,695
	Insulet Corp., senior note, 0.375%, 9/01/26		United States		186,000			199,764
e	Lantheus Holdings Inc., senior note, 144A, 2.625%, 12/15/27		United States		256,000			305,613
	Model N Inc., senior note, 2.625%, 6/01/25		United States		60,000			60,000
c	MongoDB Inc., senior note, 0.25%, 1/15/26		United States		761,000			1,534,366
c	Unity Software Inc., senior note, zero cpn., 11/15/26		United States		1,113,000			903,200
								10,303,444
	Hotels, Restaurants & Leisure 0.5%
e	Basic-Fit NV, BFIT, senior note, Reg S, 1.50%, 6/17/28		Netherlands		600,000	EUR		583,467
	Carnival Corp., senior note, 5.75%, 10/01/24		United States		557,000			884,238
	Marriott Vacations Worldwide Corp., senior note,
	e 144A, 3.25%, 12/15/27		United States		372,000			307,830
	zero cpn., 1/15/26		United States		722,000			615,144
	Penn Entertainment Inc., senior note, 2.75%, 5/15/26		United States		714,000			907,851
								3,298,530
	Household Durables 0.1%
	LCI Industries, senior note, 1.125%, 5/15/26		United States		1,033,000			949,843
	Independent Power & Renewable Electricity Producers 0.1%
e	Nextera Energy Partners LP, senior note, 144A,
	2.50%, 6/15/26		United States		331,000			291,115
	zero cpn., 11/15/25		United States		343,000			295,666
	NRG Energy Inc., senior bond, 2.75%, 6/01/48		United States		81,000			99,103
								685,884
	Interactive Media & Services 0.3%
	Snap Inc., senior note,
	0.25%, 5/01/25		United States		672,000			667,632
	0.75%, 8/01/26		United States		703,000			682,789
	0.125%, 3/01/28		United States		1,124,000			823,892
								2,174,313
	Internet & Direct Marketing Retail 1.0%
	Airbnb Inc., senior note, zero cpn., 3/15/26		United States		311,000			275,843
e	Cornwall Jersey Ltd., senior note, Reg S, 0.75%, 4/16/26		United Kingdom		500,000	GBP		388,336
e	Delivery Hero SE, senior note, Reg S, 1.00%, 1/23/27		South Korea		1,100,000	EUR		970,258
	Etsy Inc., senior note, 0.125%, 10/01/26		United States		174,000			192,357
	Expedia Group Inc., senior note, zero cpn., 2/15/26		United States		595,000			545,615
	Fiverr International Ltd., senior note, zero cpn., 11/01/25		United States		982,000			863,571
c	Fubotv Inc., senior note, 3.25%, 2/15/26		United States		21,000			14,608

franklintempleton.com Semiannual Report 21

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)
e	Just Eat Takeaway.com NV, senior note, Reg S,
	1.25%, 4/30/26		United Kingdom		600,000	EUR	$	567,604
	B, 0.625%, 2/09/28		United Kingdom		700,000	EUR		562,054
e	Porch Group Inc., senior note, 144A, 0.75%, 9/15/26		United States		1,245,000			342,375
	Q2 Holdings Inc., senior note,
	0.125%, 11/15/25		United States		495,000			441,193
	0.75%, 6/01/26		United States		884,000			784,020
c	The Realreal Inc., senior note, 1.00%, 3/01/28		United States		557,000			233,662
c	Spotify USA Inc., senior note, zero cpn., 3/15/26		United States		249,000			218,180
	Techtarget Inc., senior note, zero cpn., 12/15/26		United States		24,000			19,368
	Wix.Com Ltd., senior note, zero cpn., 8/15/25		Israel		621,000			553,622
								6,972,666
	IT Services 0.4%
	Mitek Systems Inc., senior note, 0.75%, 2/01/26		United States		564,000			502,693
e	Repay Holdings Corp., A, senior note, 144A, zero cpn., 2/01/26		United States		629,000			526,033
c	Shift4 Payments Inc., senior note, zero cpn., 12/15/25		United States		817,000			863,487
c	Shopify Inc., senior note, 0.125%, 11/01/25		Canada		1,115,000			1,036,393
								2,928,606
	Leisure Products 0.6%
	NCL Corp. Ltd., senior note,
	6.00%, 5/15/24		United States		291,000			362,441
	5.375%, 8/01/25		United States		1,131,000			1,271,810
	c 1.125%, 2/15/27		United States		744,000			610,526
	2.50%, 2/15/27		United States		194,000			165,191
c	Peloton Interactive Inc., senior note, zero cpn., 2/15/26		United States		1,069,000			814,086
c	Topgolf Callaway Brands Corp., senior note, 2.75%, 5/01/26		United States		581,000			580,128
								3,804,182
	Life Sciences Tools & Services 0.2%
	Repligen Corp., senior note, 0.375%, 7/15/24		United States		758,000			1,058,395
	Machinery 0.4%
	Bloom Energy Corp., senior note,
	2.50%, 8/15/25		United States		243,000			274,226
	e 144A, 3.00%, 6/01/28		United States		121,000			126,905
	Chart Industries Inc., senior sub. note, 1.00%, 11/15/24		United States		620,000			1,388,800
e	Desktop Metal Inc., senior note, 144A, 6.00%, 5/15/27		United States		464,000			287,268
	The Greenbrier Cos. Inc., senior note, 2.875%, 4/15/28		United States		770,000			697,620
								2,774,819
	Media 0.4%
	DISH Network Corp., senior bond, 3.375%, 8/15/26		United States		464,000			212,280
	Liberty Interactive LLC,
	senior bond, 4.00%, 11/15/29		United States		1,334,000			340,350
	senior note, 3.75%, 2/15/30		United States		1,842,000			469,710
e	Liberty Media Corp., 144A,
	c senior bond, 2.75%, 12/01/49		United States		1,149,000			1,080,060
	senior bond, 2.375%, 9/30/53		United States		558,000			565,812
	senior note, 3.75%, 3/15/28		United States		87,000			100,399
								2,768,611
	Metals & Mining 0.3%
c	ATI Inc., senior note, 3.50%, 6/15/25		United States		434,000			1,245,363
	Century Aluminum Co., senior note, 2.75%, 5/01/28		United States		314,000			208,095
c,e	Ivanhoe Mines Ltd., senior note, 144A, 2.50%, 4/15/26		Canada		434,000			570,442
	Lithium Americas Corp., senior note, 1.75%, 1/15/27		Canada		262,000			168,990

22 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Convertible Bonds (continued)
	Metals & Mining (continued)
	SSR Mining Inc., senior bond, 2.50%, 4/01/39		Canada		186,000		$	181,908
								2,374,798
	Mortgage Real Estate Investment Trusts (REITs) 0.2%
e	Arbor Realty Trust Inc., senior note, 144A, 7.50%, 8/01/25		United States		872,000			841,480
c	PennyMac Corp., senior note, 5.50%, 3/15/26		United States		585,000			530,887
	Redwood Trust Inc., senior note, 7.75%, 6/15/27		United States		124,000			112,298
	Two Harbors Investment Corp., senior note, 6.25%, 1/15/26		United States		165,000			150,150
								1,634,815
	Oil, Gas & Consumable Fuels 0.1%
	Array Technologies Inc., senior note, 1.00%, 12/01/28		United States		25,000			23,137
	Enphase Energy Inc., senior note, zero cpn., 3/01/26		United States		248,000			218,984
	Green Plains Inc., senior note, 2.25%, 3/15/27		United States		292,000			303,330
								545,451
	Personal Products 0.1%
e	The Beauty Health Co., senior note, 144A, 1.25%, 10/01/26		United States		657,000			443,081
	Pharmaceuticals 0.4%
e	Collegium Pharmaceutical Inc., senior note, 144A, 2.875%, 2/15/29		United States		635,000			594,106
	Innoviva Inc., senior note, 2.125%, 3/15/28		United States		866,000			717,481
	Mannkind Corp., senior note, 2.50%, 3/01/26		United States		595,000			587,934
	Pacira Biosciences Inc., senior note, 0.75%, 8/01/25		United States		941,000			854,546
								2,754,067
	Real Estate Management & Development 0.4%
e	Opendoor Technologies Inc., senior note, 144A, 0.25%, 8/15/26		United States		1,180,000			855,500
	Realogy Group LLC / Realogy Co.-Issuer Corp., senior note, 0.25%, 6/15/26		United States		323,000			236,210
	Redfin Corp., senior note,
	0.50%, 4/01/27		United States		968,000			561,440
	zero cpn., 10/15/25		United States		360,000			301,500
e	Storagevault Canada Inc., senior note, 144A, 5.00%, 3/31/28		Canada		184,000	CAD		120,669
	Zillow Group Inc., senior note, 0.75%, 9/01/24		United States		547,000			591,854
								2,667,173
	Road & Rail 0.0%†
	Uber Technologies Inc., senior note, zero cpn., 12/15/25		United States		62,000			60,715
	Semiconductors & Semiconductor Equipment 0.4%
e	ams-OSRAM AG, ., senior note, Reg S, 2.125%, 11/03/27		Austria		800,000	EUR		666,162
	Maxeon Solar Technologies Ltd., senior note, 6.50%, 7/15/25		United States		655,000			465,682
	SMART Global Holdings Inc., senior note, 2.00%, 2/01/29		United States		488,000			481,412
	Veeco Instruments Inc., senior note,
	3.50%, 1/15/25		United States		75,000			98,390
	3.75%, 6/01/27		United States		198,000			423,203
	e 144A, 2.875%, 6/01/29		United States		35,000			41,808
	Wolfspeed Inc., senior note,
	0.25%, 2/15/28		United States		402,000			250,647
	e 144A, 1.875%, 12/01/29		United States		124,000			74,462
								2,501,766
	Software 1.3%
e	CSG Systems International Inc., senior note, 144A, 3.875%, 9/15/28		United States		124,000			119,821
	Datadog Inc., senior note, 0.125%, 6/15/25		United States		1,376,000			1,875,488
	Docusign Inc., senior note, zero cpn., 1/15/24		United States		581,000			578,675
e	Dye & Durham Ltd., senior note, 144A, 3.75%, 3/01/26		Canada		1,191,000	CAD		658,831
b	Envestnet Inc., senior note, 0.75%, 8/15/25		United States		532,000			488,644

franklintempleton.com Semiannual Report 23

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Convertible Bonds (continued)
	Software (continued)
	Everbridge Inc., senior note,
	0.125%, 12/15/24		United States		248,000		$	229,400
	b zero cpn., 3/15/26		United States		285,000			240,825
c	Guidewire Software Inc., senior note, 1.25%, 3/15/25		United States		595,000			635,162
	i3 Verticals LLC, senior note, 1.00%, 2/15/25		United States		470,000			437,687
	Pegasystems Inc., senior note, 0.75%, 3/01/25		United States		855,000			794,723
	Ringcentral Inc., senior note, zero cpn., 3/15/26		United States		449,000			377,160
	Splunk Inc., senior note,
	1.125%, 9/15/25		United States		861,000			948,392
	1.125%, 6/15/27		United States		495,000			479,655
	Zscaler Inc., senior note, 0.125%, 7/01/25		United States		700,000			977,550
								8,842,013
	Specialty Retail 0.2%
	The Cheesecake Factory Inc., senior note, 0.375%, 6/15/26		United States		335,000			284,951
c,e	Guess? Inc., senior note, 144A, 3.75%, 4/15/28		United States		777,000			827,971
	National Vision Holdings Inc., senior note, 2.50%, 5/15/25		United States		587,000			580,444
								1,693,366
	Technology Hardware, Storage & Peripherals 0.1%
e	Seagate HDD Cayman, senior note, 144A, 3.50%, 6/01/28		United States		310,000			352,780
	Transportation 0.0%†
e	Air Transport Services Group Inc., senior note, 144A, 3.875%, 8/15/29		United States		62,000			52,297
	Transportation Infrastructure 0.3%
c	Eagle Bulk Shipping Inc., senior note, 5.00%, 8/01/24		United States		1,311,000			1,953,557
	Total Convertible Bonds (Cost $101,614,475)							92,603,183
	Convertible Bonds in Reorganization 0.0%†
	Chemicals 0.0%†
h	Amyris Inc., senior note, 1.50%, 11/15/26		United States		1,108,000			117,725
	Specialty Retail 0.0%†
e,f,h	Shift Technologies Inc., senior note, 144A, 4.75%, 5/15/26		United States		1,014,000			16,528
	Total Convertible Bonds in Reorganization (Cost $1,764,667)							134,253
	Corporate Bonds and Notes 5.9%
	Banks 0.4%
e	Bank Gospodarstwa Krajowego, secured bond, 144A, 5.375%, 5/22/33		Poland		800,000			782,050
e	BBVA Bancomer SA, junior sub. bond, 144A, 8.45%, 6/29/38		Mexico		740,000			742,585
e	Freedom Mortgage Corp., senior note, 144A,
	7.625%, 5/01/26		United States		298,000			285,025
	12.00%, 10/01/28		United States		276,000			291,888
	12.25%, 10/01/30		United States		84,000			88,695
c,e	Intesa Sanpaolo SpA, sub. bond, 144A, 5.017%, 6/26/24		Italy		290,000			286,471
								2,476,714
	Biotechnology 0.0%†
e	Cidron Aida Finco Sarl, senior secured note, Reg S, 6.25%, 4/01/28		Luxembourg		234,000	GBP		269,565
	Capital Markets 0.4%
c,e	Blackstone Private Credit Fund, senior note, 144A, 7.30%, 11/27/28		United States		622,000			621,056
e	Blue Owl Credit Income Corp., senior note, 144A, 7.75%, 1/15/29		United States		402,000			399,796
c,e	eG Global Finance PLC, senior secured note, 144A, 12.00%, 11/30/28		United Kingdom		855,000			890,367

24 Semiannual Report franklintempleton.com

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)
	Golub Capital BDC Inc., senior note, 7.05%, 12/05/28		United States		466,000		$	460,716
c,e	Oaktree Strategic Credit Fund, senior note, 144A, 8.40%, 11/14/28		United States		578,000			593,182
								2,965,117
	Communications Equipment 0.1%
e	CommScope Technologies LLC, senior bond, 144A, 6.00%, 6/15/25		United States		396,000			311,268
	Construction & Engineering 0.0%†
e	Artera Services LLC, senior secured note, 144A, 9.033%, 12/04/25		United States		120,000			109,693
	Diversified Financial Services 0.2%
e	Gaci First Investment Co., senior bond, Reg S, 5.125%, 2/14/53		Saudi Arabia		1,350,000			1,131,542
	Diversified Telecommunication Services 0.1%
e,i	Ligado Networks LLC, senior secured note, 144A, PIK, 15.50%, 11/01/23		United States		1,339,350			271,218
e	VMED O2 UK Financing I PLC, senior secured note, Reg S, 4.00%, 1/31/29		United Kingdom		197,000	GBP		212,627
								483,845
	Electric Utilities 0.5%
c	Edison International,
	junior sub. bond, 8.125%, 6/15/53		United States		1,088,000			1,103,321
	j junior sub. note, 5.00% to 12/15/26, FRN thereafter, Perpetual		United States		422,000			387,000
e	EP Infrastructure AS, senior note, Reg S, 1.698%, 7/30/26		Czech Republic		409,000	EUR		393,976
e	Saudi Electricity Sukuk Programme Co., senior bond, Reg S, 5.684%, 4/11/53		Saudi Arabia		670,000			633,097
c,e	Vistra Operations Co. LLC, senior secured bond, 144A, 6.95%, 10/15/33		United States		563,000			575,176
								3,092,570
	Equity Real Estate Investment Trusts (REITs) 0.2%
c,e	Uniti Group LP / Uniti Group Finance Inc. / CSL Capital LLC, senior secured note, 144A, 10.50%, 2/15/28		United States		1,140,000			1,122,416
	Food & Staples Retailing 0.0%†
e	Market Bidco Finco PLC, senior note, Reg S, 5.50%, 11/04/27		United Kingdom		156,000			170,232
	Gas Utilities 0.1%
e	Eustream AS, senior note, Reg S, 1.625%, 6/25/27		Slovak Republic		356,000	EUR		317,570
	Health Care Providers & Services 0.0%†
e	Catalent Pharma Solutions Inc., senior note, Reg S, 2.375%, 3/01/28		United States		300,000	EUR		277,731
	Hotels, Restaurants & Leisure 0.2%
c,e	Carnival Holdings Bermuda Ltd., senior note, 144A, 10.375%, 5/01/28		United States		1,363,000			1,483,428
	Household Durables 0.2%
e,f	K. Hovnanian Enterprises Inc., senior secured note, 144A,
	8.00%, 9/30/28		United States		500,000			495,000
	c 11.75%, 9/30/29		United States		1,000,000			972,500
								1,467,500
	Insurance 0.0%†
e	Galaxy Bidco Ltd., senior secured note, Reg S, 6.50%, 7/31/26		United Kingdom		251,000	GBP		303,804
	Internet 0.0%†
e	Northwest Fiber LLC / Northwest Fiber Finance Sub Inc., senior secured note, 144A, 4.75%, 4/30/27		United States		313,000			286,666

franklintempleton.com Semiannual Report 25

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Corporate Bonds and Notes (continued)
	Internet & Direct Marketing Retail 0.2%
e	Grubhub Holdings Inc., senior note, 144A, 5.50%, 7/01/27		United States		128,000		$	103,018
e	Prosus NV, senior bond, Reg S, 2.778%, 1/19/34		China		785,000	EUR		641,549
c,e	Rakuten Group Inc., senior note, 144A, 10.25%, 11/30/24		Japan		428,000			437,629
								1,182,196
	Media 0.8%
c,e	Advantage Sales & Marketing Inc., senior secured note, 144A, 6.50%, 11/15/28		United States		1,147,000			1,023,619
e	Clear Channel Outdoor Holdings Inc., 144A,
	senior note, 7.75%, 4/15/28		United States		352,000			288,877
	c senior note, 7.50%, 6/01/29		United States		302,000			238,249
	c senior secured note, 9.00%, 9/15/28		United States		400,000			404,400
c,e	Clear Channel Worldwide Holdings Inc., senior secured note, 144A, 5.125%, 8/15/27		United States		1,313,000			1,216,699
e	CSC Holdings LLC, senior bond, 144A,
	c 5.50%, 4/15/27		United States		1,396,000			1,235,535
	4.125%, 12/01/30		United States		109,000			77,673
e	Gannett Holdings LLC, senior secured note, 144A, 6.00%, 11/01/26		United States		168,000			147,687
e	iHeartCommunications Inc., senior secured note, 144A,
	5.25%, 8/15/27		United States		74,000			56,796
	c 4.75%, 1/15/28		United States		763,000			583,039
								5,272,574
	Metals & Mining 0.1%
e	We Soda Investments Holding PLC, senior secured note, 144A, 9.50%, 10/06/28		Turkey		620,000			629,548
	Mortgage Real Estate Investment Trusts (REITs) 0.0%†
c	Service Properties Trust, senior note, 7.50%, 9/15/25		United States		296,000			297,495
	Oil, Gas & Consumable Fuels 1.4%
c,e	Civitas Resources Inc., senior note, 144A, 8.625%, 11/01/30		United States		480,000			497,598
	Ecopetrol SA, senior note, 8.625%, 1/19/29		Colombia		2,185,000			2,266,632
	Greensaif Pipelines Bidco SARL, senior bond, 6.51%, 2/23/42		Saudi Arabia		1,087,000			1,089,020
c,e	Moss Creek Resources Holdings Inc., senior note, 144A,
	7.50%, 1/15/26		United States		2,210,000			2,162,299
	10.50%, 5/15/27		United States		843,000			853,414
	Petrobras Global Finance BV, senior bond, 6.50%, 7/03/33		Brazil		1,288,000			1,254,352
	Petroleum Geo-Services AS, senior secured note, 13.50%, 3/31/27		Norway		600,000			660,165
c	Talos Production Inc., senior secured note, 12.00%, 1/15/26		United States		248,000			256,867
e	YPF Sociedad Anonima, senior note, Reg S,
	8.75%, 4/04/24		Argentina		542,800			526,679
	8.50%, 3/23/25		Argentina		308,625			298,629
								9,865,655
	Pharmaceuticals 0.2%
c,e	Bausch Health Cos. Inc., senior secured note, 144A, 5.50%, 11/01/25		United States		1,299,000			1,133,098
	Real Estate Management & Development 0.1%
e	Blackstone Property Partners Europe Holdings Sarl, E, senior note, Reg S, 2.00%, 10/20/25		Luxembourg		422,000	GBP		486,734
	Kaisa Group Holdings Ltd.,
	senior note, 11.95%, 10/22/22		China		399,000			18,135
	e senior secured note, Reg S, 8.50%, 6/30/22		China		692,000			25,085
	e senior secured note, Reg S, 11.25%, 4/16/25		China		1,092,000			39,585
e	SBB Treasury OYJ, E, senior note, Reg S, 1.125%, 11/26/29		Sweden		144,000	EUR		84,213
								653,752

26 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Corporate Bonds and Notes (continued)
	Specialty Retail 0.4%
c,e,i	Carvana Co., senior secured note, 144A, PIK,
	12.00%, 12/01/28		United States		525,000		$	415,026
	13.00%, 6/01/30		United States		659,000			516,086
	14.00%, 6/01/31		United States		670,000			532,218
e	Douglas GMBH, senior secured note, Reg S, 6.00%, 4/08/26		Germany		646,000	EUR		685,923
e	Guitar Center Inc., senior secured note, 144A, 8.50%, 1/15/26		United States		452,000			369,878
e	Mitchells & Butlers Finance PLC, B2, senior secured bond, Reg S, 6.013%, 12/15/28		United Kingdom		449,068	GBP		529,721
								3,048,852
	Telecommunications 0.2%
	America Movil SAB de CV, senior note, 9.50%, 1/27/31		Mexico		25,980,000k	MXN		1,453,442
	Tobacco 0.0%†
c,e	Vector Group Ltd., senior note, 144A, 10.50%, 11/01/26		United States		188,000			188,404
	Transportation 0.1%
c	Canadian Pacific Railway Co., senior bond, 2.45%, 12/02/31		Canada		517,000			468,948
	Total Corporate Bonds and Notes (Cost $40,568,993)							40,463,625
	Corporate Bonds and Notes in Reorganization 0.2%
	Banks 0.1%
h	SVB Financial Group,
	senior bond, 1.80%, 2/02/31		United States		28,000			17,278
	j junior sub. note, 4.10%, Perpetual		United States		86,000			1,390
	j junior sub. note, C, 4.00%, Perpetual		United States		341,000			5,572
	j junior sub. note, D, 4.25%, Perpetual		United States		18,000			287
	senior note, 1.80%, 10/28/26		United States		474,000			294,047
	senior note, 2.10%, 5/15/28		United States		274,000			169,825
								488,399
	Media 0.0%†
b,e,h	WESCO Aircraft Holdings Inc., senior secured note, 144A, 8.50%, 11/15/24		United States		644,000			25,760
	Metals & Mining 0.1%
e,h	Samarco Mineracao SA, senior bond,
	144A, 4.125%, 11/01/22		Brazil		925,000			707,636
	Reg S, 5.75%, 10/24/23		Brazil		384,000			317,439
								1,025,075
	Real Estate Management & Development 0.0%†
h	Zhenro Properties Group Ltd., senior note,
	8.00%, 3/06/23		China		981,000			17,167
	e Reg S, 6.63%, 1/07/26		China		203,000			3,563
								20,730
	Total Corporate Bonds and Notes in Reorganization (Cost $2,305,937)							1,559,964
l,m	Senior Floating Rate Interests 1.1%
	Communications Equipment 0.1%
n	CommScope Holding Company Inc., Initial Term Loan, 8.713%, (1-Month SOFR + 3.36%), 4/06/26		United States		786,971			692,042
i	Riverbed Technology Inc., Exit Term Loan, PIK, 9.89%, (1-Month SOFR + 4.50%), 7/01/28		United States		56,208			38,977
								731,019

franklintempleton.com Semiannual Report 27

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
l,m	Senior Floating Rate Interests (continued)
	Construction Materials 0.0%†
n	Oldcastle BuildingEnvelope Inc., Term Loan RC, 8.56%, (1-Month SOFR + 3.75%), 4/29/27		United States		23,038		$	21,138
	Consumer Discretionary Services 0.2%
	IRB Holding Corp., Term Loan B, 8.448%, (1-Month SOFR + 3.10%), 12/15/27		United States		1,020,033			1,019,834
	Diversified Telecommunication Services 0.0%†
	Ligado Networks LLC, Bank Debt Term Loan, 15.50%, 1/16/24		United States		34,174			33,320
	Food & Staples Retailing 0.3%
n	Upfield Group BV, Term Loan RC, 8.118%, (3-Month EURIBOR + 3.00%), 1/02/25		Netherlands		513,462			545,789
	Wm Morrison Supermarkets Ltd., Facility Term Loan B2, 10.911%, (5-Day SONIA +5.61%), 11/04/27		United Kingdom		1,550,000			1,841,485
								2,387,274
	Leisure Products 0.0%†
	Hercules Achievement Inc., Initial Term Loan, 10.463%, (1-Month SOFR + 5.00%), 12/15/26		United States		104,261			103,072
	Media 0.1%
n	CSC Holdings LLC, Term Loan B,
	7.687%, (1-Month USD LIBOR + 2.25%), 7/17/25		United States		829,979			813,587
	9.823%, (1-Month USD LIBOR + 2.25%), 1/18/28		United States		165,436			159,853
								973,440
	Oil, Gas & Consumable Fuels 0.1%
n	Euro Garage Ltd., Term Loan B-1, 7.868%, (3-Month EURIBOR + 4.00%), 2/07/25		Germany		330,495			341,082
	Pharmaceuticals 0.1%
n	Bausch Health Cos. Inc., Term Loan B, 10.691%, (1-Month SOFR + 5.25%), 2/01/27		United States		765,527			583,079
	Software 0.1%
	Polaris Newco LLC, First Lien Dollar Term Loan, 9.463%, (1-Month USD LIBOR + 4.00%), 6/02/28		United States		1,019,994			994,749
	Specialty Retail 0.1%
	Peloton Interactive Inc., Initial Term Loan, 12.477%, (1-Month SOFR + 6.50%), 5/25/27		United States		648,607			652,391
	Total Senior Floating Rate Interests (Cost $7,771,809)							7,840,398
	Foreign Government and Agency Securities 5.8%
e	Government of Angola, senior bond, Reg S, 8.75%, 4/14/32		Angola		975,000			818,459
	Government of Argentina, senior bond,
	3.625%, 7/09/46		Argentina		3,442,000			1,137,375
	o FRN, zero cpn., 12/15/35		Argentina		14,754,000			383,604
	o FRN, zero cpn., 12/15/35		Argentina		4,450,000	EUR		234,732
	Government of Chile,
	senior bond, 5.30%, 11/01/37		Chile		860,000,000	CLP		964,107
	senior note, 2.75%, 1/31/27		Chile		2,025,000			1,888,868
	Government of Colombia, senior bond,
	2.25%, 4/18/29		Colombia		6,662,241,764	COP		1,492,442
	B, 7.00%, 6/30/32		Colombia		9,787,500,000	COP		1,946,922
	B, 13.25%, 2/09/33		Colombia		3,034,400,000	COP		857,909
	8.00%, 11/14/35		Colombia		770,000			797,066
	B, 7.25%, 10/26/50		Colombia		5,848,300,000	COP		982,349
	8.75%, 11/14/53		Colombia		910,000			969,549

28 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
	Foreign Government and Agency Securities (continued)
e	Government of Costa Rica, 144A, 7.30%, 11/13/54		Costa Rica		1,020,000		$	1,044,311
e	Government of Dominican Republic, senior bond, 144A, 11.25%, 9/15/35		Dominican Republic		54,100,000	DOP		962,081
	Government of Egypt,
	e senior bond, Reg S, 6.375%, 4/11/31		Egypt		1,816,000	EUR		1,184,449
	senior bond, 7.625%, 5/29/32		Egypt		777,000			496,362
	e senior bond, Reg S, 7.30%, 9/30/33		Egypt		865,000			532,144
	e senior bond, Reg S, 7.50%, 2/16/61		Egypt		1,156,000			632,887
	e senior note, Reg S, 5.75%, 5/29/24		Egypt		400,000			387,519
e	Government of Germany, senior bond, Reg S,
	zero cpn., 2/15/32		Germany		155,660	EUR		139,842
	1.70%, 8/15/32		Germany		547,200	EUR		563,574
	Government of Indonesia, senior bond, 7.125%, 6/15/38		Indonesia		42,572,000,000	IDR		2,835,553
c	Government of Italy, senior note, 2.375%, 10/17/24		Italy		350,000			340,285
	Government of Mexico, senior bond, 6.338%, 5/04/53		Mexico		1,350,000			1,291,307
	Government of Pakistan,
	senior bond, 7.875%, 3/31/36		Pakistan		100,000			64,101
	senior note, 8.25%, 4/15/24		Pakistan		742,000			702,066
	e senior note, Reg S, 6.00%, 4/08/26		Pakistan		618,000			422,749
e	Government of Paraguay, senior bond, Reg S, 5.00%, 4/15/26		Paraguay		980,000			965,705
e	Government of Peru, senior note, 144A, 7.30%, 8/12/33		Peru		4,873,000	PEN		1,316,720
	Government of Poland, senior bond, 5.50%, 4/04/53		Poland		1,011,000			978,594
	Government of Romania, senior bond, 7.625%, 1/17/53		Romania		2,368,000			2,490,842
	Government of South Africa, senior bond,
	8.50%, 1/31/37		South Africa		30,564,496	ZAR		1,258,979
	7.30%, 4/20/52		South Africa		1,852,000			1,599,119
e	Government of Tunisian Republic, Reg S,
	senior bond, 5.75%, 1/30/25		Tunisia		1,220,000			968,897
	senior note, 5.625%, 2/17/24		Tunisia		658,000	EUR		686,617
	Government of Turkey, senior note 7/19/28		Turkey		3,547,742			125,567
	Government of Uruguay, senior bond, 9.75%, 7/20/33		Uruguay		21,518,600	UYU		556,984
e	Government of Uzbekistan, Reg S,
	senior bond, 3.90%, 10/19/31		Uzbekistan		1,215,000			960,549
	senior note, 7.85%, 10/12/28		Uzbekistan		955,000			972,973
e	Istanbul Metropolitan Municipality, senior note, 144A, 10.50%, 12/06/28		Turkey		720,000			727,056
e	Provincia de Buenos Aires, senior bond, Reg S, 6.375%, 9/01/37		Argentina		6,125,775			2,252,754
	Total Foreign Government and Agency Securities (Cost $37,546,712)							39,933,968
	Foreign Government and Agency Securities in Reorganization 0.9%
e,h	Government of Ghana, senior bond, Reg S, 10.75%, 10/14/30		Ghana		2,718,000			1,695,706
e,h	Government of Ukraine, Reg S,
	senior bond, 7.75%, 9/01/26		Ukraine		998,000			282,369
	senior bond, 7.375%, 9/25/34		Ukraine		3,803,000			916,295
	senior bond, 7.75%, 8/01/41		Ukraine		6,337,000			2,782,279
	senior note, 8.994%, 2/01/26		Ukraine		440,000			134,075
h	Government of Venezuela, senior bond, 9.25%, 9/15/27		Venezuela		935,000			184,850
e,h	Government of Zambia, Reg S,
	senior bond, 5.375%, 9/20/22		Zambia		417,000			227,421
	senior bond, 8.97%, 7/30/27		Zambia		302,000			183,303
	Total Foreign Government and Agency Securities in Reorganization (Cost $5,548,505)							6,406,298
	U.S. Government and Agency Securities 1.6%
	U.S. Treasury Bond,
	4.375%, 8/15/43		United States		1,136,000			1,086,123
	3.625%, 5/15/53		United States		648,000			553,331
	4.125%, 8/15/53		United States		1,813,400			1,696,379

franklintempleton.com Semiannual Report 29

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal Amount*		Value
U.S. Government and Agency Securities (continued)
U.S. Treasury Note,
5.00%, 9/30/25		United States		218,000	$	218,822
4.625%, 9/15/26		United States		429,000		430,525
4.125%, 10/31/27		United States		809,000		801,589
3.875%, 8/15/33		United States		1,403,100		1,349,716
4.50%, 11/15/33		United States		4,944,600		5,006,408
Total U.S. Government and Agency Securities (Cost $10,853,597)						11,142,893
	Number of Contracts		Notional Amount#
Options Purchased 0.2%
Calls – Exchange-Traded 0.1%
Advanced Energy Industries Inc., December Strike Price $85.00, Expires 12/15/23		11		104,555		11,605
American Airlines Group Inc., January Strike Price $16.00, Expires 1/19/24		23		28,589		92
Amyris Inc., January Strike Price $3.00, Expires 1/19/24		16		20		—
Anywhere Real Estate Inc., December Strike Price $7.50, Expires 12/15/23		21		11,298		105
Anywhere Real Estate Inc., December Strike Price $10.00, Expires 12/15/23		47		25,286		—
Anywhere Real Estate Inc., March Strike Price $7.50, Expires 3/15/24		124		66,712		3,720
Arbor Realty Trust Inc., December Strike Price $14.00, Expires 12/15/23		12		14,976		60
Arbor Realty Trust Inc., January Strike Price $14.00, Expires 1/19/24		12		14,976		300
Array Technologies Inc., December Strike Price $17.50, Expires 12/15/23		287		443,989		8,610
Covestro AG, January Strike Price 54.00 EUR, Expires 1/19/24		40		192,880		4,528
Deutsche Telekom AG, March Strike Price 23.00 EUR, Expires 3/15/24		214		470,586		9,318
Deutsche Telekom AG, March Strike Price 24.00 EUR, Expires 3/15/24		309		679,491		6,054
DraftKings Inc., December Strike Price $35.00, Expires 12/04/23		6		22,944		1,788
DraftKings Inc., December Strike Price $36.00, Expires 12/04/23		7		26,768		1,407
DraftKings Inc., January Strike Price $40.00, Expires 1/19/24		6		22,944		912
Dropbox Inc., December Strike Price $25.00, Expires 12/15/23		15		42,270		4,575
Ebix Inc., January Strike Price $10.00, Expires 1/19/24		531		209,214		7,965
Esperion Therapeutics Inc., January Strike Price $2.00, Expires 1/19/24		940		125,020		14,100
Fluor Corp., December Strike Price $40.00, Expires 12/15/23		25		95,075		750
Freeport-McMoRan Inc., February Strike Price $37.00, Expires 2/16/24		10		37,320		2,540
Harmonic Inc., December Strike Price $12.50, Expires 12/15/23		25		27,650		125
Hollysys Automation Technologies Ltd., December Strike Price $22.50, Expires 12/15/23		82		186,960		7,380
iShares Russell 2000 ETF, December Strike Price $184.00, Expires 12/15/23		63		1,131,858		8,505
iShares Russell 2000 ETF, December Strike Price $187.00, Expires 12/15/23		125		2,245,750		8,500
iShares Russell 2000 ETF, December Strike Price $187.50, Expires 12/15/23		125		2,245,750		7,500
JetBlue Airways Corp., January Strike Price $7.00, Expires 1/19/24		23		10,166		322
KalVista Pharmaceuticals Inc., December Strike Price $10.00, Expires 12/15/23		22		18,568		330
Liquidia Corp., April Strike Price $7.50, Expires 4/19/24		584		418,144		127,020

30 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Number of Contracts		Notional Amount#		Value
Options Purchased (continued)
Calls – Exchange-Traded (continued)
Manchester United PLC, A, December Strike Price $25.00, Expires 12/15/23		70		136,430	$	840
Match Group Inc., January Strike Price $32.50, Expires 1/19/24		12		38,856		1,956
Maxeon Solar Technologies Ltd., December Strike Price $10.00, Expires 12/15/23		49		20,237		196
Nikola Corp., January Strike Price $3.00, Expires 1/19/24		60		5,834		60
Nikola Corp., January Strike Price $3.50, Expires 1/19/24		20		1,945		20
Nikola Corp., January Strike Price $2.00, Expires 1/17/25		82		7,974		1,968
Nikola Corp., January Strike Price $3.00, Expires 1/17/25		20		1,945		300
NIO Inc., December Strike Price $8.00, Expires 12/15/23		25		18,175		550
NIO Inc., December Strike Price $8.50, Expires 12/22/23		25		18,175		375
Plug Power Inc., December Strike Price $5.00, Expires 12/15/23		124		50,096		744
Plug Power Inc., January Strike Price $5.00, Expires 1/19/24		310		125,240		7,130
Plug Power Inc., March Strike Price $5.00, Expires 3/15/24		124		50,096		6,200
Point Biopharma Global Inc., January Strike Price $12.50, Expires 1/19/24		223		303,280		30,105
Porch Group Inc., January Strike Price $2.50, Expires 1/19/24		21		3,192		105
Redfin Corp., January Strike Price $13.00, Expires 1/19/24		47		32,759		141
Sea Ltd., January Strike Price $50.00, Expires 1/19/24		115		416,530		2,070
Silicon Motion Technology Corp., January Strike Price $65.00, Expires 1/19/24		178		1,046,640		6,230
Sirius XM Holdings Inc., January Strike Price $6.00, Expires 1/19/24		37		17,316		500
Sovos Brands Inc., February Strike Price $25.00, Expires 2/16/24		32		70,112		160
Spirit Airlines Inc., January Strike Price $20.00, Expires 1/19/24		353		523,146		76,601
Stride Inc., December Strike Price $60.00, Expires 12/15/23		6		36,348		876
Structure Therapeutics Inc., December Strike Price $60.00, Expires 12/15/23		34		189,346		21,760
Sunnova Energy International Inc., December Strike Price $12.00, Expires 12/15/23		37		42,920		2,812
Teck Resources Ltd., January Strike Price $43.00, Expires 1/19/24		11		41,415		374
Teck Resources Ltd., January Strike Price $45.00, Expires 1/19/24		43		161,895		688
Telephone and Data Systems Inc., February Strike Price $20.00, Expires 2/16/24		18		35,460		4,950
United States Steel Corp., December Strike Price $36.00, Expires 12/15/23		68		244,120		8,228
United States Steel Corp., January Strike Price $36.00, Expires 1/19/24		8		28,720		1,392
Viper Energy Inc., December Strike Price $32.00, Expires 12/15/23		230		708,860		5,980
Vodafone Group PLC, September Strike Price 0.75 GBP, Expires 9/20/24		171		152,190		12,953
						434,375
Calls – Over-the-Counter 0.0%†
ASX Ltd., Counterparty GSCO, December Strike Price 6,970.00 AUD, Expires 12/05/23		130		526,994		10,639
EURO STOXX 50 Index, Counterparty BNPP, December Strike Price 4,300.00 EUR, Expires 12/15/23		121		530,279		13,673
S&P 500 Index, Counterparty GSCO, December Strike Price $4,345.00, Expires 12/05/23		117		534,433		25,713
Taiwan Stock Exchange Weighted Index, Counterparty JPHQ, December Strike Price 17,130.00 TWD, Expires 12/18/23		856		14,923,376		9,934
						59,959
Puts – Exchange-Traded 0.1%
3M Co., January Strike Price $75.00, Expires 1/19/24		56		554,792		392
Anavex Life Sciences Corp., December Strike Price $5.00, Expires 12/15/23		589		424,669		7,657

franklintempleton.com Semiannual Report 31

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)
Anavex Life Sciences Corp., January Strike Price $5.00, Expires 1/19/24		1,676		1,208,396	$	67,040
Aspen Aerogels Inc., February Strike Price $7.50, Expires 2/16/24		741		776,568		25,935
Aspen Aerogels Inc., April Strike Price $7.50, Expires 4/19/24		3		3,144		165
Barclays PLC, January Strike Price $3.00, Expires 1/19/24		82		59,204		410
Barclays PLC, January Strike Price $5.00, Expires 1/19/24		128		92,416		768
BioVie Inc., December Strike Price $2.50, Expires 12/15/23		1,389		250,020		118,065
Bloom Energy Corp., December Strike Price $10.00, Expires 12/15/23		62		89,528		310
Bread Financial Holdings Inc., January Strike Price $20.00, Expires 1/19/24		8		22,480		160
Bread Financial Holdings Inc., January Strike Price $22.50, Expires 1/19/24		28		78,680		910
Capri Holdings Ltd., February Strike Price $45.00, Expires 2/16/24		134		649,096		11,390
Capri Holdings Ltd., June Strike Price $45.00, Expires 6/21/24		150		726,600		39,000
Carnival Corp., January Strike Price $5.00, Expires 1/19/24		319		480,414		7,656
Cinemark Holdings Inc., January Strike Price $5.00, Expires 1/19/24		417		594,225		1,251
Datadog Inc., December Strike Price $95.00, Expires 12/04/23		5		58,285		5
Desktop Metal Inc., January Strike Price $1.00, Expires 1/19/24		248		17,353		8,060
Encore Capital Group Inc., December Strike Price $22.50, Expires 12/15/23		48		215,040		480
Envestnet Inc., February Strike Price $25.00, Expires 2/16/24		19		72,257		570
Fisker Inc., May Strike Price $1.50, Expires 5/17/24		31		4,898		1,829
Fisker Inc., May Strike Price $2.00, Expires 5/17/24		37		5,846		3,515
Fluor Corp., January Strike Price $20.00, Expires 1/19/24		138		524,814		—
The GEO Group Inc., January Strike Price $3.00, Expires 1/19/24		8		8,120		—
The GEO Group Inc., January Strike Price $5.00, Expires 1/19/24		440		446,600		2,200
Grindr Inc., December Strike Price $5.00, Expires 12/15/23		1,852		1,244,544		27,780
Grindr Inc., February Strike Price $5.00, Expires 2/16/24		379		254,688		11,370
Guess? Inc., January Strike Price $10.00, Expires 1/17/25		50		110,100		2,800
Hannon Armstrong Sustainable Infrastructure Capital Inc., March Strike Price $10.00, Expires 3/15/24		136		329,256		2,720
Helix Energy Solutions Group Inc., December Strike Price $9.00, Expires 12/15/23		141		131,412		2,115
Hollysys Automation Technologies Ltd., January Strike Price $17.50, Expires 1/19/24		296		674,880		5,180
Illumina Inc., January Strike Price $100.00, Expires 1/19/24		49		499,555		30,380
ImmunoGen Inc., July Strike Price $25.00, Expires 7/19/24		4		11,740		240
Industrial Select Sector SPDR Fund, December Strike Price $100.00, Expires 12/15/23		157		1,680,685		785
Industrial Select Sector SPDR Fund, December Strike Price $103.00, Expires 12/15/23		192		2,055,360		2,688
Integra LifeSciences Holdings Corp., December Strike Price $25.00, Expires 12/15/23		19		74,461		4,607
Invesco QQQ Trust Series 1, December Strike Price $358.00, Expires 12/15/23		24		933,192		696
Ionis Pharmaceuticals Inc., December Strike Price $50.00, Expires 12/15/23		11		54,417		1,788
iShares Russell 2000 ETF, December Strike Price $172.00, Expires 12/15/23		78		1,401,348		4,758
Liberty Media Corp.-Liberty SiriusXM, June Strike Price $24.00, Expires 6/21/24		320		863,680		55,360
Lincoln National Corp., January Strike Price $20.00, Expires 1/19/24		290		689,620		7,250
Lincoln National Corp., June Strike Price $17.50, Expires 6/21/24		256		608,768		20,480
Lucid Group Inc., May Strike Price $3.50, Expires 5/17/24		25		10,550		1,588
Marriott Vacations Worldwide Corp., April Strike Price $55.00, Expires 4/19/24		3		21,870		652

32 Semiannual Report franklintempleton.com

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)
Maxeon Solar Technologies Ltd., December Strike Price $5.00, Expires 12/15/23		50		20,650	$	4,500
MGM Resorts International, December Strike Price $37.00, Expires 12/15/23		108		425,952		2,916
MicroStrategy Inc., June Strike Price $180.00, Expires 6/21/24		11		548,130		4,867
MicroStrategy Inc., December Strike Price $165.00, Expires 12/19/25		4		199,320		7,890
Natera Inc., January Strike Price $25.00, Expires 1/19/24		33		184,635		8,085
Natera Inc., January Strike Price $30.00, Expires 1/19/24		3		16,785		102
PureCycle Technologies Inc., December Strike Price $4.00, Expires 12/15/23		25		10,100		1,300
Royal Caribbean Cruises Ltd., January Strike Price $30.00, Expires 1/19/24		168		1,805,328		1,764
Russell 2000 Index, December Strike Price $1,600.00, Expires 12/29/23		10		1,809,020		2,000
S&P 500 Index, December Strike Price $4,100.00, Expires 12/29/23		6		2,740,680		1,926
Sarepta Therapeutics Inc., May Strike Price $55.00, Expires 5/17/24		3		24,384		585
Seagen Inc., December Strike Price $160.00, Expires 12/15/23		210		4,477,410		2,100
Seagen Inc., February Strike Price $210.00, Expires 2/16/24		29		618,309		21,750
Seagen Inc., June Strike Price $220.00, Expires 6/21/24		48		1,023,408		54,048
Southwest Airlines Co., January Strike Price $20.00, Expires 1/19/24		37		94,609		333
Southwest Airlines Co., January Strike Price $22.50, Expires 1/19/24		66		168,762		1,980
Southwest Airlines Co., March Strike Price $20.00, Expires 3/15/24		31		79,267		1,085
SPDR S&P 500 ETF Trust, December Strike Price $430.00, Expires 12/15/23		26		1,186,640		936
SPDR S&P 500 ETF Trust, January Strike Price $430.00, Expires 1/19/24		270		12,322,800		48,060
Spirit AeroSystems Holdings Inc., January Strike Price $15.00, Expires 1/17/25		21		57,729		1,785
TKO Group Holdings Inc., January Strike Price $75.00, Expires 1/19/24		26		201,058		5,525
Transocean Ltd., January Strike Price $1.50, Expires 1/19/24		892		567,312		—
Transocean Ltd., January Strike Price $2.50, Expires 1/19/24		174		110,664		1,392
Transocean Ltd., January Strike Price $3.00, Expires 1/17/25		50		322,950		750
Travere Therapeutics Inc., January Strike Price $5.00, Expires 1/19/24		11		6,908		495
Tyler Technologies Inc., December Strike Price $350.00, Expires 12/15/23		3		122,652		1,305
U.S. Treasury 2 Year Note, February Strike Price $101.38, Expires 2/23/24		105		21,468,398		26,250
Uber Technologies Inc., December Strike Price $54.00, Expires 12/08/23		461		2,599,118		26,277
United Rentals Inc., March Strike Price $410.00, Expires 3/15/24		36		1,713,672		40,320
United States Steel Corp., January Strike Price $32.00, Expires 1/19/24		65		233,350		3,575
Veradigm Inc., March Strike Price $10.00, Expires 3/15/24		24		27,552		1,224
Vinfast Auto Ltd., December Strike Price $4.00, Expires 12/04/23		623		526,435		623
Vinfast Auto Ltd., December Strike Price $4.50, Expires 12/04/23		2		1,690		2
Vinfast Auto Ltd., March Strike Price $5.00, Expires 3/15/24		1,042		880,490		131,292
Vodafone Group PLC, January Strike Price 0.75 GBP, Expires 1/19/24		351		312,390		21,048
Vodafone Group PLC, March Strike Price 0.70 GBP, Expires 3/15/24		118		105,020		4,842
Wayfair Inc., January Strike Price $15.00, Expires 1/19/24		112		624,960		1,064
Wayfair Inc., January Strike Price $17.50, Expires 1/19/24		33		184,140		297
Wayfair Inc., May Strike Price $30.00, Expires 5/17/24		25		139,500		3,450
						918,748
Puts – Over-the-Counter 0.0%†
3M Co., Counterparty GSCO, January Strike Price $75.00, Expires 1/19/24		262		2,595,634		1,500
ASX Ltd., Counterparty GSCO, December Strike Price 6,970.00 AUD, Expires 12/05/23		130		526,994		290

franklintempleton.com Semiannual Report 33

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)
	DJ EURO STOXX 50 Index, Counterparty BZWS, December Strike Price 4,100.00 EUR, Expires 12/15/23		3		131,474	$	94
	EURO STOXX 50 Index, Counterparty BNPP, December Strike Price 4,300.00 EUR, Expires 12/15/23		121		530,279		2,010
	S&P 500 Index, Counterparty GSCO, December Strike Price $4,345.00, Expires 12/05/23		117		534,433		3
	STOXX Europe 600 Index, Counterparty JPHQ, December Strike Price 560.00 EUR, Expires 12/15/23		11		253,886		272
	Taiwan Stock Exchange Weighted Index, Counterparty JPHQ, December Strike Price 17,130.00 TWD, Expires 12/18/23		856		14,923,376		2,075
							6,244
	Currency Options 0.0%†
	USD/JPY, Counterparty GSCO, December Strike Price 131.00 JPY, Expires 12/18/23		4,170,000		4,170,000		37
	Total Options Purchased (Cost $2,395,088)						1,419,363
	Total Investments before Short Term Investments (Cost $369,831,436)						384,086,138
		Country		Shares
	Short Term Investments 31.5%
	Money Market Funds 30.9%
p,q	Dreyfus Government Cash Management, Institutional, 5.24%		United States		137,633,937		137,633,937
p	Fidelity Investments Money Market Government Portfolio, Institutional, 5.25%		United States		74,993,444		74,993,444
	Total Money Market Funds (Cost $212,627,381)						212,627,381
r	Investments from Cash Collateral Received for Loaned Securities (Cost $1,010,000) 0.2%
	Money Market Funds 0.2%
p,s	Institutional Fiduciary Trust Money Market Portfolio, 5.04%		United States		1,010,000		1,010,000
				Principal Amount*
	U.S. Government and Agency Securities (Cost $2,987,906) 0.4%
t	U.S. Treasury Bill, 12/28/23		United States		3,000,000		2,988,118
	Total Investments (Cost $586,456,723) 87.2%						600,711,637
	Options Written (0.1)%						(382,840	)
	Securities Sold Short (17.6)%						(121,453,065	)
	Other Assets, less Liabilities 30.5%						209,925,212
	Net Assets 100.0%					$	688,800,944
		Number of Contracts		Notional Amount#
u	Options Written (0.1)%
	Calls – Exchange-Traded (0.1)%
	Allurion Technologies Inc., February Strike Price $10.00, Expires 2/16/24		329		122,717		(7,403	)
	Amprius Technologies Inc., January Strike Price $12.50, Expires 1/19/24		577		237,147		—

34 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Number of Contracts		Notional Amount#		Value
u	Options Written (continued)
	Calls – Exchange-Traded (continued)
	Amprius Technologies Inc., March Strike Price $12.50, Expires 3/15/24		5		2,055	$	—
	Covestro AG, January Strike Price 62.00 EUR, Expires 1/19/24		40		192,880		(174	)
	Eve Holding Inc., January Strike Price $12.50, Expires 1/19/24		960		677,760		—
	Freeport-McMoRan Inc., February Strike Price $42.00, Expires 2/16/24		10		37,320		(740	)
	Hollysys Automation Technologies Ltd., December Strike Price $25.00, Expires 12/15/23		82		186,960		(1,025	)
	Liberty Media Corp.-Liberty SiriusXM, June Strike Price $26.00, Expires 6/21/24		320		863,680		(120,000	)
	Lumentum Holdings Inc., March Strike Price $65.00, Expires 3/15/24		69		295,320		(2,243	)
	Manchester United PLC, A, December Strike Price $30.00, Expires 12/15/23		113		220,237		(565	)
	Pioneer Natural Resources Co., December Strike Price $245.00, Expires 12/15/23		23		532,772		(1,219	)
	Pioneer Natural Resources Co., December Strike Price $250.00, Expires 12/15/23		51		1,181,364		(1,377	)
	Point Biopharma Global Inc., A, January Strike Price $17.50, Expires 1/19/24		223		303,280		(7,805	)
	Sea Ltd., January Strike Price $70.00, Expires 1/19/24		115		416,530		(345	)
	Seagen Inc., June Strike Price $230.00, Expires 6/21/24		45		959,445		(675	)
	Spirit Airlines Inc., January Strike Price $22.50, Expires 1/19/24		353		523,146		(46,949	)
	United States Steel Corp., December Strike Price $38.00, Expires 12/15/23		68		244,120		(3,400	)
	United States Steel Corp., January Strike Price $38.00, Expires 1/19/24		8		28,720		(624	)
	Vertiv Holdings Co., A, July Strike Price $50.00, Expires 7/19/24		136		593,776		(70,720	)
							(265,264	)
	Puts – Exchange-Traded (0.0)%†
	Bread Financial Holdings Inc., January Strike Price $25.00, Expires 1/19/24		5		14,050		(325	)
	Capri Holdings Ltd., February Strike Price $40.00, Expires 2/16/24		134		649,096		(5,360	)
	Deutsche Telekom AG, December Strike Price 18.00 EUR, Expires 12/15/23		309		679,491		(336	)
	Deutsche Telekom AG, March Strike Price 18.00 EUR, Expires 3/15/24		309		679,491		(3,027	)
	Deutsche Telekom AG, March Strike Price 19.00 EUR, Expires 3/15/24		214		470,586		(2,096	)
	DraftKings Inc., January Strike Price $34.00, Expires 1/19/24		6		22,944		(438	)
	Endeavor Group Holdings Inc., December Strike Price $24.00, Expires 12/15/23		29		70,499		(1,450	)
	Fluor Corp., January Strike Price $35.00, Expires 1/19/24		25		95,075		(1,375	)
	Industrial Select Sector SPDR Fund, December Strike Price $61.00, Expires 12/15/23		437		2,742,612		(11,362	)
	Ionis Pharmaceuticals Inc., January Strike Price $45.00, Expires 1/19/24		30		148,410		(2,100	)
	Manchester United PLC, A, December Strike Price $19.00, Expires 12/04/23		123		239,727		(1,230	)
	Manchester United PLC, A, December Strike Price $19.00, Expires 12/08/23		47		91,603		(2,350	)
	Manchester United PLC, A, December Strike Price $18.00, Expires 12/15/23		249		485,301		(5,229	)
	Pioneer Natural Resources Co., December Strike Price $220.00, Expires 12/15/23		56		1,297,184		(5,320	)
	Pioneer Natural Resources Co., December Strike Price $225.00, Expires 12/15/23		47		1,088,708		(10,105	)
	Point Biopharma Global Inc., A, January Strike Price $12.50, Expires 1/19/24		223		303,280		(3,345	)
	Russell 2000 Index, December Strike Price $1,450.00, Expires 12/29/23		10		1,809,020		(775	)

franklintempleton.com Semiannual Report 35

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Number of Contracts		Notional Amount#		Value
u	Options Written (continued)
	Puts – Exchange-Traded (continued)
	S&P 500 Index, December Strike Price $3,700.00, Expires 12/29/23		5		2,283,900	$	(525	)
	Seagen Inc., February Strike Price $190.00, Expires 2/16/24		57		1,215,297		(17,100	)
	Seagen Inc., June Strike Price $160.00, Expires 6/21/24		48		1,023,408		(14,640	)
	Sunnova Energy International Inc., January Strike Price $10.00, Expires 1/19/24		25		29,000		(1,625	)
	United States Steel Corp., December Strike Price $34.00, Expires 12/15/23		133		477,470		(7,182	)
	United States Steel Corp., December Strike Price $34.50, Expires 12/15/23		8		28,720		(520	)
	Vodafone Group PLC, January Strike Price 0.70 GBP, Expires 1/19/24		351		312,390		(9,970	)
	Vodafone Group PLC, March Strike Price 0.65 GBP, Expires 3/15/24		118		105,020		(2,235	)
	Vodafone Group PLC, June Strike Price 0.65 GBP, Expires 6/21/24		171		152,190		(7,556	)
							(117,576	)
	Total Options Written (Premiums Received $535,068)						(382,840	)
		Country		Shares
v	Securities Sold Short (17.6)%
	Common Stocks (7.0)%
	Air Freight & Logistics (0.0)%†
	Air Transport Services Group Inc.		United States		1,052		(16,737	)
	Airlines (0.1)%
	Cathay Pacific Airways Ltd.		Hong Kong		555,500		(560,120	)
	Automobile Components (0.0)%†
	LCI Industries		United States		2,661		(288,745	)
	Automobiles (0.3)%
	Fisker Inc.		United States		41,681		(65,856	)
	Ford Motor Co.		United States		41,264		(423,369	)
	NIO Inc., ADR		China		3,688		(26,812	)
	Rivian Automotive Inc., A		United States		46,035		(771,546	)
	Tesla Inc.		United States		959		(230,237	)
	Winnebago Industries Inc.		United States		6,426		(415,312	)
							(1,933,132	)
	Biotechnology (0.3)%
	Apellis Pharmaceuticals Inc.		United States		6,590		(355,003	)
	Coherus Biosciences Inc.		United States		33,209		(70,735	)
	Dynavax Technologies Corp.		United States		88,147		(1,207,614	)
	Insmed Inc.		United States		5,682		(142,164	)
	Karyopharm Therapeutics Inc.		United States		6,576		(5,064	)
	Mannkind Corp.		United States		61,031		(220,932	)
	Mirum Pharmaceuticals Inc.		United States		587		(18,825	)
	Pharming Group NV		Netherlands		31,061		(35,868	)
	Travere Therapeutics Inc.		United States		12,387		(77,790	)
							(2,133,995	)
	Building Products (0.0)%†
	Carrier Global Corp.		United States		4,402		(228,728	)
	Capital Markets (0.4)%
	Ares Capital Corp.		United States		28,025		(555,455	)
	Blue Owl Capital Corp.		United States		73,924		(1,083,726	)
	Brookfield Asset Management Ltd., A		Canada		4,807		(168,389	)

36 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Shares		Value
v	Securities Sold Short (continued)
	Common Stocks (continued)
	Capital Markets (continued)
	Greenhill & Co. Inc.		United States		31,108	$	(466,309	)
	Oaktree Specialty Lending Corp.		United States		17,233		(344,660	)
	Wisdomtree Inc.		United States		9,478		(61,702	)
							(2,680,241	)
	Chemicals (0.3)%
	Albemarle Corp.		United States		4,317		(523,523	)
	Danimer Scientific Inc.		United States		30,283		(33,008	)
	Livent Corp.		United States		46,568		(640,776	)
	Purecycle Technologies Inc.		United States		8,704		(35,164	)
	The Sherwin-Williams Co.		United States		2,365		(659,362	)
							(1,891,833	)
	Communications Equipment (0.1)%
	Harmonic Inc.		United States		41,937		(463,823	)
	Construction & Engineering (0.0)%†
	Granite Construction Inc.		United States		1,964		(90,246	)
	Construction Materials (0.2)%
	Martin Marietta Materials Inc.		United States		2,754		(1,279,481	)
	Consumer Finance (0.2)%
	Encore Capital Group Inc.		United States		14,364		(643,507	)
	EZCORP Inc., A		United States		59,036		(484,095	)
	SoFi Technologies Inc.		United States		4,545		(33,133	)
	Zip Co. Ltd.		Australia		22,641		(6,054	)
							(1,166,789	)
	Diversified Financial Services (0.0)%†
	Bread Financial Holdings Inc.		United States		10,215		(287,042	)
	Electric Utilities (0.1)%
	American Electric Power Co. Inc.		United States		4,454		(354,316	)
	PG&E Corp.		United States		2,475		(42,496	)
							(396,812	)
	Electrical Equipment (0.3)%
	Array Technologies Inc.		United States		727		(11,247	)
	Bloom Energy Corp., A		United States		14,489		(209,221	)
	Eaton Corp. PLC		United States		1,056		(240,441	)
	Nextracker Inc., A		United States		6,078		(247,010	)
	Plug Power Inc.		United States		172,191		(695,651	)
	Rockwell Automation Inc.		United States		1,571		(432,716	)
							(1,836,286	)
	Electronic Equipment, Instruments & Components (0.0)%†
	Vishay Intertechnology Inc.		United States		427		(9,492	)
	Energy Equipment & Services (0.3)%
	Helix Energy Solutions Group Inc.		United States		133,221		(1,241,620	)
	Transocean Ltd.		United States		177,545		(1,129,186	)
							(2,370,806	)
	Entertainment (0.1)%
	Live Nation Entertainment Inc.		United States		3,680		(309,930	)
	The Marcus Corp.		United States		41,117		(571,937	)
	Sea Ltd., ADR		Singapore		1,945		(70,448	)
	Spotify Technology SA		United States		23		(4,258	)
							(956,573	)

franklintempleton.com Semiannual Report 37

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Shares		Value
v	Securities Sold Short (continued)
	Common Stocks (continued)
	Equity Real Estate Investment Trusts (REITs) (0.0)%†
	Pebblebrook Hotel Trust		United States		15,969	$	(203,605	)
	Summit Hotel Properties Inc.		United States		8,625		(53,992	)
							(257,597	)
	Financial Services (0.0)%†
	Block Inc., A		United States		2,248		(142,591	)
	Food & Staples Retailing (0.0)%†
	The Chefs’ Warehouse Inc.		United States		8,982		(241,616	)
	Food Products (0.0)%†
	Sovos Brands Inc.		United States		6,829		(149,623	)
	Health Care Equipment & Supplies (0.1)%
	CONMED Corp.		United States		1,042		(111,775	)
	Cutera Inc.		United States		2,791		(4,745	)
	Insulet Corp.		United States		500		(94,545	)
	Lantheus Holdings Inc.		United States		2,206		(157,994	)
	Mesa Laboratories Inc.		United States		165		(14,086	)
	Varex Imaging Corp.		United States		21,538		(405,991	)
							(789,136	)
	Health Care Providers & Services (0.0)%†
	NeoGenomics Inc.		United States		4,700		(85,399	)
	PetIQ Inc., A		United States		11,260		(196,149	)
							(281,548	)
	Health Care Technology (0.1)%
	Evolent Health Inc., A		United States		14,642		(407,047	)
	Health Catalyst Inc.		United States		1,176		(8,444	)
							(415,491	)
	Hotels, Restaurants & Leisure (0.5)%
	Airbnb Inc., A		United States		261		(32,975	)
e	Basic-Fit NV, 144A		Netherlands		3,556		(101,504	)
	Bluegreen Vacations Holding Corp., A		United States		5,375		(400,545	)
	Carnival Corp.		United States		50,236		(756,554	)
	The Cheesecake Factory Inc.		United States		713		(22,353	)
	Marriott Vacations Worldwide Corp.		United States		944		(68,818	)
	Norwegian Cruise Line Holdings Ltd.		United States		58,701		(896,364	)
	Penn National Gaming Inc.		United States		21,640		(531,478	)
							(2,810,591	)
	Interactive Media & Services (0.1)%
	Match Group Inc.		United States		1,760		(56,989	)
	Snap Inc., A		United States		38,946		(538,623	)
							(595,612	)
	Internet & Direct Marketing Retail (0.0)%†
	Etsy Inc.		United States		1,279		(96,961	)
	Expedia Group Inc.		United States		585		(79,665	)
							(176,626	)
	IT Services (0.3)%
	Cloudflare Inc., A		United States		824		(63,572	)
	CSG Systems International Inc.		United States		885		(43,533	)
	Digitalocean Holdings Inc.		United States		946		(28,021	)
	i3 Verticals Inc., A		United States		2,549		(51,311	)
	MongoDB Inc., A		United States		3,325		(1,382,335	)

38 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Shares		Value
v	Securities Sold Short (continued)
	Common Stocks (continued)
	IT Services (continued)
	Repay Holdings Corp., A		United States		3,491	$	(26,182	)
	Shift4 Payments Inc., A		United States		6,086		(400,581	)
	Shopify Inc., A		Canada		2,439		(177,608	)
							(2,173,143	)
	Leisure Products (0.0)%†
	Topgolf Callaway Brands Corp.		United States		17,728		(217,345	)
	Life Sciences Tools & Services (0.1)%
	Inotiv Inc.		United States		13,182		(32,560	)
	Repligen Corp.		United States		5,800		(912,050	)
							(944,610	)
	Machinery (0.3)%
	Caterpillar Inc.		United States		1,710		(428,731	)
	Chart Industries Inc.		United States		10,327		(1,342,820	)
	Desktop Metal Inc., A		United States		202,612		(141,767	)
	The Greenbrier Cos. Inc.		United States		7,980		(300,926	)
							(2,214,244	)
	Marine (0.3)%
	Eagle Bulk Shipping Inc.		United States		39,236		(1,783,276	)
	Media (0.0)%†
	Dish Network Corp., A		United States		10,357		(37,907	)
	Liberty Media Corp.-Liberty SiriusXM, A		United States		2,207		(59,456	)
	Techtarget Inc.		United States		21		(622	)
							(97,985	)
	Metals & Mining (0.3)%
	ATI Inc.		United States		27,728		(1,218,646	)
	Century Aluminum Co.		United States		14,401		(113,192	)
	Ivanhoe Mines Ltd., A		Canada		46,231		(412,585	)
	Lithium Americas Argentina Corp.		Canada		10,336		(54,884	)
	SSR Mining Inc.		Canada		4,915		(57,997	)
							(1,857,304	)
	Mortgage Real Estate Investment Trusts (REITs) (0.1)%
	Arbor Realty Trust Inc.		United States		9,079		(113,306	)
	Hannon Armstrong Sustainable Infrastructure Capital Inc.		United States		4,597		(111,293	)
	PennyMac Mortgage Investment Trust		United States		5,855		(82,204	)
	Redwood Trust Inc.		United States		4,906		(34,882	)
							(341,685	)
	Multi-Utilities (0.1)%
	WEC Energy Group Inc.		United States		9,390		(785,192	)
	Oil, Gas & Consumable Fuels (0.4)%
	Exxon Mobil Corp.		United States		14,444		(1,483,977	)
	Green Plains Inc.		United States		6,509		(161,944	)
	Kinder Morgan Inc.		United States		16,881		(296,599	)
	TC Energy Corp.		Canada		14,071		(527,708	)
	The Williams Cos. Inc.		United States		9,394		(345,605	)
							(2,815,833	)
	Pharmaceuticals (0.1)%
	Collegium Pharmaceutical Inc.		United States		13,073		(335,061	)
	Innoviva Inc.		United States		14,037		(194,412	)

franklintempleton.com Semiannual Report 39

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Shares		Value
v	Securities Sold Short (continued)
	Common Stocks (continued)
	Pharmaceuticals (continued)
	Pacira Biosciences Inc.		United States		553	$	(15,086	)
							(544,559	)
	Real Estate Management & Development (0.1)%
	Anywhere Real Estate Inc.		United States		1,297		(6,978	)
	Redfin Corp.		United States		1,051		(7,325	)
	Storagevault Canada Inc.		Canada		9,543		(32,843	)
	Zillow Group Inc., C		United States		6,861		(280,889	)
							(328,035	)
	Retail REITs (0.2)%
	Realty Income Corp.		United States		26,344		(1,421,522	)
	Road & Rail (0.0)%†
	Uber Technologies Inc.		United States		308		(17,365	)
	Semiconductors & Semiconductor Equipment (0.3)%
	Enphase Energy Inc.		United States		5,769		(582,784	)
	Maxeon Solar Technologies Ltd.		United States		32,400		(133,812	)
	SMART Global Holdings Inc.		United States		17,603		(293,266	)
	SolarEdge Technologies Inc.		United States		2,402		(190,671	)
	Veeco Instruments Inc.		United States		16,708		(476,679	)
	Wolfspeed Inc.		United States		2,455		(90,492	)
							(1,767,704	)
	Software (0.6)%
	Bill Holdings Inc.		United States		723		(47,335	)
	Blackline Inc.		United States		1,394		(80,643	)
	Cerence Inc.		United States		773		(13,365	)
	Datadog Inc., A		United States		11,484		(1,338,690	)
	Five9 Inc.		United States		3,209		(244,590	)
	Guidewire Software Inc.		United States		2,691		(268,939	)
	HubSpot Inc.		United States		1,898		(937,479	)
	Mitek Systems Inc.		United States		10,055		(113,521	)
	Model N Inc.		United States		739		(16,960	)
	Q2 Holdings Inc.		United States		3,009		(106,880	)
	Splunk Inc.		United States		787		(119,262	)
	Zscaler Inc.		United States		3,746		(739,947	)
							(4,027,611	)
	Specialty Retail (0.2)%
	Guess? Inc.		United States		21,522		(473,914	)
	The Home Depot Inc.		United States		1,465		(459,263	)
	National Vision Holdings Inc.		United States		5,889		(108,652	)
							(1,041,829	)
	Technology Hardware Storage & Peripherals (0.0)%†
	Seagate Technology Holdings PLC		United States		2,415		(191,027	)
	Water Utilities (0.1)%
	American Water Works Co. Inc.		United States		7,590		(1,000,666	)
	Total Common Stocks (Proceeds $55,396,017)						(48,022,247	)
	Exchange Traded Funds (5.9)%
	Health Care Select Sector SPDR Fund		United States		53,928		(7,081,286	)
	Invesco Solar ETF		United States		11,530		(528,535	)
	iShares iBoxx High Yield Corporate Bond ETF		United States		12,349		(934,943	)
	iShares PHLX Semiconductor ETF		United States		4,136		(2,124,456	)

40 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Shares		Value
v	Securities Sold Short (continued)
	Exchange Traded Funds (continued)
	iShares Russell 1000 ETF		United States		29,897	$	(7,495,477	)
	iShares U.S. Healthcare Providers ETF		United States		14,683		(3,742,550	)
	iShares U.S. Medical Devices ETF		United States		88,444		(4,433,698	)
	iShares U.S. Pharmaceuticals ETF		United States		28,223		(4,951,990	)
	SPDR S&P 500 ETF Trust		United States		1,568		(715,635	)
	SPDR S&P Biotech ETF		United States		93,802		(7,083,927	)
	Utilities Select Sector SPDR Fund		United States		25,097		(1,575,088	)
	Total Exchange Traded Funds (Proceeds $40,650,891)						(40,667,585	)
				Principal Amount*
	Convertible Bonds and Notes (0.3)%
	Airlines (0.0)%†
	Southwest Airlines Co., senior note, 1.25%, 5/01/25		United States		244,000		(239,915	)
	Biotechnology (0.0)%†
	Exact Sciences Corp., senior note, 0.375%, 3/01/28		United States		169,000		(145,762	)
e	Ionis Pharmaceuticals Inc., senior note, 144A, 1.75%, 6/15/28		United States		91,000		(101,811	)
							(247,573	)
	Building Products (0.0)%†
	Patrick Industries Inc., senior note, 1.75%, 12/01/28		United States		12,000		(11,940	)
	Commercial Services & Supplies (0.0)%†
e	TETRA Tech Inc., senior note, 144A, 2.25%, 8/15/28		United States		62,000		(63,203	)
	Construction & Engineering (0.0)%†
e	Fluor Corp., senior note, 144A, 1.125%, 8/15/29		United States		268,000		(284,817	)
	Diversified Consumer Services (0.1)%
	Stride Inc., senior note, 1.125%, 9/01/27		United States		243,000		(311,526	)
	Electronic Equipment, Instruments & Components (0.0)%†
e	Advanced Energy Industries Inc., senior note, 144A, 2.50%, 9/15/28		United States		243,000		(240,424	)
	Health Care Equipment & Supplies (0.0)%†
e	Envista Holdings Corp., senior note, 144A, 1.75%, 8/15/28		United States		293,000		(258,719	)
	Health Care Technology (0.0)%†
	Nutanix Inc., senior note, 0.25%, 10/01/27		United States		245,000		(241,693	)
	Hotels, Restaurants & Leisure (0.0)%†
	Draftkings Holdings Inc., senior note, zero cpn., 3/15/28		United States		241,000		(195,812	)
	Independent Power & Renewable Electricity Producers (0.0)%†
	Sunnova Energy International Inc., senior note, 0.25%, 12/01/26		United States		159,000		(89,517	)
	Internet & Direct Marketing Retail (0.0)%†
	Wayfair Inc., senior note,
	1.00%, 8/15/26		United States		131,000		(111,350	)
	A, 0.625%, 10/01/25		United States		70,000		(62,566	)
							(173,916	)
	Media (0.0)%†
	DISH Network Corp., senior note,
	2.375%, 3/15/24		United States		123,000		(118,000	)
	zero cpn., 12/15/25		United States		123,000		(64,193	)
							(182,193	)

franklintempleton.com Semiannual Report 41

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*		Value
v	Securities Sold Short (continued)
	Convertible Bonds and Notes (continued)
	Semiconductors & Semiconductor Equipment (0.1)%
e	On Semiconductor Corp., senior note, 144A, 0.50%, 3/01/29		United States		305,000	$	(293,867	)
	Semtech Corp., senior note, 1.625%, 11/01/27		United States		117,000		(84,299	)
							(378,166	)
	Software (0.1)%
	Altair Engineering Inc., senior note, 1.75%, 6/15/27		United States		142,000		(164,990	)
	Bentley Systems Inc., senior note, 0.375%, 7/01/27		United States		243,000		(215,784	)
	Dropbox Inc., senior note, zero cpn., 3/01/28		United States		241,000		(233,167	)
	LivePerson Inc., senior note, zero cpn., 12/15/26		United States		264,000		(175,243	)
							(789,184	)
	Total Convertible Bonds and Notes (Proceeds $3,568,761)						(3,708,598	)
	Corporate Bonds and Notes (3.2)%
	Auto Manufacturers (0.1)%
e	Nissan Motor Co. Ltd., 144A,
	senior bond, 4.81%, 9/17/30		Japan		222,000		(197,768	)
	senior note, 4.345%, 9/17/27		Japan		296,000		(276,460	)
							(474,228	)
	Automobile Components (0.1)%
e	Adient Global Holdings Ltd., senior note, 144A, 8.25%, 4/15/31		United States		615,000		(625,671	)
	Automobiles (0.0)%†
e,o	Rivian Holdings LLC/Rivian LLC/Rivian Automotive LLC, senior secured note, 144A, FRN, 11.493%, (6-Month USD LIBOR + 5.63%), 10/15/26		United States		374,000		(375,214	)
	Banks (0.2)%
	First Horizon Bank, junior sub. bond, 5.75%, 5/01/30		United States		443,000		(395,213	)
e,j	Industrial & Commercial Bank of China Ltd., junior sub. note, Reg S, 3.20% to 9/24/26, FRN thereafter, Perpetual		China		761,000		(709,956	)
	KeyBank NA, senior note, 4.90%, 8/08/32		United States		545,000		(444,245	)
							(1,549,414	)
	Building Products (0.1)%
e	Ameritex Holdco Intermediate LLC, senior secured note, 144A, 10.25%, 10/15/28		United States		608,000		(595,080	)
	Chemicals (0.1)%
	Celanese US Holdings LLC, senior note, 6.33%, 7/15/29		United States		579,000		(590,346	)
e	Valvoline Inc., senior note, 144A, 4.25%, 2/15/30		United States		102,000		(100,854	)
							(691,200	)
	Commercial Services & Supplies (0.2)%
	United Rentals North America Inc., senior bond, 4.875%, 1/15/28		United States		1,247,000		(1,200,411	)
	Communications Equipment (0.2)%
e	Equipmentshare.Com Inc., senior secured note, 144A, 9.00%, 5/15/28		United States		1,242,000		(1,224,923	)
	Construction Materials (0.1)%
e	Camelot Return Merger Sub Inc., senior secured note, 144A, 8.75%, 8/01/28		United States		718,000		(708,824	)
	Consumer Finance (0.1)%
	Ally Financial Inc., junior sub. bond, 5.75%, 11/20/25		United States		517,000		(507,580	)
	OneMain Finance Corp., senior note, 7.125%, 3/15/26		United States		54,000		(54,495	)
							(562,075	)

42 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*		Value
v	Securities Sold Short (continued)
	Corporate Bonds and Notes (continued)
	Diversified Financial Services (0.3)%
e	Kronos Acquisition Holdings Inc. / KIK Custom Products Inc., senior note, 144A, 7.00%, 12/31/27		Canada		626,000	$	(580,102	)
	Lincoln National Corp., senior bond,
	3.35%, 3/09/25		United States		239,000		(231,295	)
	3.625%, 12/12/26		United States		300,000		(282,968	)
	3.80%, 3/01/28		United States		141,000		(131,618	)
e	MPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28		United States		205,000		(158,974	)
e	Wash Multifamily Acquisition Inc., senior secured note, 144A, 5.75%, 4/15/26		United States		534,000		(502,335	)
							(1,887,292	)
	Entertainment (0.1)%
	Warnermedia Holdings Inc.,
	senior bond, 5.05%, 3/15/42		United States		286,000		(236,337	)
	senior bond, 5.141%, 3/15/52		United States		257,000		(205,561	)
	senior note, 4.279%, 3/15/32		United States		294,000		(259,446	)
							(701,344	)
	Equity Real Estate Investment Trusts (REITs) (0.0)%†
e	Hat Holdings I LLC / Hat Holdings II LLC, senior note, 144A, 3.375%, 6/15/26		United States		277,000		(251,000	)
	Food Products (0.1)%
	B&G Foods Inc., senior note,
	5.25%, 4/01/25		United States		213,000		(209,278	)
	5.25%, 9/15/27		United States		409,000		(356,721	)
							(565,999	)
	Health Care Providers & Services (0.0)%†
e	RP Escrow Issuer LLC, senior secured note, 144A, 5.25%, 12/15/25		United States		11,000		(8,517	)
	Health Care Technology (0.1)%
e	Cloud Software Group Holdings Inc., senior secured note, 144A, 9.00%, 9/30/29		United States		617,000		(555,751	)
	Hotels, Restaurants & Leisure (0.1)%
e	Carnival Corp., senior note, 144A,
	7.625%, 3/01/26		United States		422,000		(424,661	)
	5.75%, 3/01/27		United States		553,000		(526,130	)
							(950,791	)
	Industrial Conglomerates (0.1)%
	3M Co., senior note, 2.65%, 4/15/25		United States		359,000		(345,559	)
	Insurance (0.2)%
	MetLife Inc., senior bond,
	6.50%, 12/15/32		United States		596,000		(649,105	)
	6.375%, 6/15/34		United States		591,000		(635,826	)
							(1,284,931	)
	Media (0.2)%
e	CSC Holdings LLC, senior note, 144A, 7.50%, 4/01/28		United States		111,000		(76,021	)
	Grupo Televisa Sab, senior bond, 6.125%, 1/31/46		Mexico		457,000		(425,708	)
	iHeartCommunications Inc., senior note, 8.375%, 5/01/27		United States		742,926		(520,706	)
e	Univision Communications Inc., senior secured note, 144A,
	4.50%, 5/01/29		United States		441,000		(387,277	)
	7.375%, 6/30/30		United States		125,000		(122,769	)
							(1,532,481	)

franklintempleton.com Semiannual Report 43

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

		Country		Principal Amount*			Value
v	Securities Sold Short (continued)
	Corporate Bonds and Notes (continued)
	Oil, Gas & Consumable Fuels (0.1)%
e	Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp., senior bond, 144A, 6.00%, 12/31/30		United States		632,000		$	(571,117	)
	Pharmaceuticals (0.1)%
e	Organon & Co. / Organon Foreign Debt Co.-Issuer BV, senior bond, 144A, 5.125%, 4/30/31		United States		976,000			(768,823	)
	Professional Services (0.0)%†
e	Corelogic Inc., senior secured note, 144A, 4.50%, 5/01/28		United States		221,000			(185,312	)
	Specialty Retail (0.0)%†
e	Upbound Group Inc., senior note, 144A, 6.375%, 2/15/29		United States		91,000			(82,932	)
	Telecommunications (0.5)%
	AT&T Inc., senior bond,
	5.40%, 2/15/34		United States		703,000			(695,200	)
	4.50%, 5/15/35		United States		1,101,000			(997,109	)
	Rogers Communications Inc., senior bond, 4.55%, 3/15/52		Canada		596,000			(473,131	)
	Verizon Communications Inc., senior bond,
	4.50%, 8/10/33		United States		382,000			(357,328	)
	4.862%, 8/21/46		United States		853,000			(761,977	)
								(3,284,745	)
	Total Corporate Bonds and Notes (Proceeds $20,834,563)							(20,983,634	)
	Foreign Government and Agency Securities (0.4)%
	e Government of Italy, senior bond, Reg S,
	0.95%, 6/01/32		Italy		467,000	EUR		(399,223	)
	2.50%, 12/01/32		Italy		833,000	EUR		(803,637	)
	Government of Turkey, senior bond, 7.375%, 2/05/25		Turkey		1,289,000			(1,305,138	)
	Total Foreign Government and Agency Securities (Proceeds $2,507,290)							(2,507,998	)
	U.S. Government and Agency Securities (0.7)%
	U.S. Treasury Bond,
	3.625%, 5/15/53		United States		648,000			(553,331	)
	4.125%, 8/15/53		United States		594,000			(555,668	)
	U.S. Treasury Note,
	5.00%, 10/31/25		United States		128,000			(128,590	)
	4.625%, 11/15/26		United States		146,000			(146,639	)
	4.375%, 8/31/28		United States		432,000			(433,190	)
	4.625%, 9/30/28		United States		117,300			(118,858	)
	4.875%, 10/31/28		United States		720,000			(737,775	)
	3.875%, 8/15/33		United States		1,403,100			(1,349,716	)
	4.50%, 11/15/33		United States		864,000			(874,800	)
	Total U.S. Government and Agency Securities (Proceeds $4,854,742)							(4,898,567	)
l,m	Senior Floating Rate Interests (Proceeds $640,216) (0.1)%
	Professional Services (0.1)%
	CoreLogic Inc., Term Loan B, 4.00%, (1-Month USD LIBOR + 3.50%), 6/02/28		United States		704,457			(664,436	)
	Total Securities Sold Short (Proceeds $128,452,480)						$	(121,453,065	)

44 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

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

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

^#Notional amount is the number of 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.

^aNon-income producing.

^bA portion or all of the security is on loan at November 30, 2023. See Note 1(f).

^cA portion or all of the security has been segregated as collateral for securities sold short, open swap contracts, open forward exchange contracts, open futures contracts and/or open written option contracts. At November 30, 2023, the aggregate value of these securities and/or cash pledged amounted to $97,423,871, representing 14.1% of net assets.

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

^eSecurity was purchased pursuant to Rule 144A or Regulation S under the Securities Act of 1933. 144A securities may be sold in transactions exempt from registration only to qualified institutional buyers or in public offering registered under the Securities Act of 1933. Regulation S securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At November 30, 2023, the net value of these securities was $66,968,495, representing 9.7% of net assets.

^fFair valued using significant unobservable inputs. See Note 13 regarding fair value measurements.

^gSee Note 9 regarding investments in Russian securities.

^hSee Note 7 regarding defaulted securities.

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

^jPerpetual security with no stated maturity date.

^kPrincipal amount is stated in 100 Mexican Peso Units.

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

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

ⁿSee Note 10 regarding unfunded loan commitments.

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

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

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

^rSee Note 1(f) regarding securities on loan.

^sSee Note 3(f) regarding investments in affiliated investment companies.

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

^uSee Note 1(c) regarding written options.

^vSee Note 1(e) regarding securities sold short.

franklintempleton.com Semiannual Report 45

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

At November 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts
Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Commodity Contractsa
Aluminum		Long		32	$	1,732,808		12/18/23	$	(75,758	)
Aluminum		Short		32		1,732,808		12/18/23		48,725
Aluminum		Long		7		385,218		3/18/24		(1,225	)
Aluminum		Short		19		1,045,593		3/18/24		31,552
Brent Crude Oil		Long		19		1,536,340		12/28/23		(11,210	)
Canola		Long		29		299,329		1/12/24		1,282
Canola		Long		11		114,365		3/14/24		(175	)
Canola		Long		1		10,484		5/14/24		201
Canola		Long		1		10,565		7/12/24		25
Canola		Long		1		10,434		11/14/24		82
Cocoa		Short		1		45,196		12/12/23		(2,486	)
Cocoa		Long		13		583,934		3/13/24		36,819
Cocoa		Short		65		2,814,418		3/13/24		(264,176	)
Cocoa		Short		13		555,241		5/15/24		(40,753	)
Cocoa		Short		2		84,080		7/16/24		(1,850	)
Coffee		Long		15		1,038,938		3/18/24		90,008
Coffee		Long		1		67,781		5/20/24		2,644
Copper		Long		19		3,994,512		12/18/23		76,927
Copper		Short		19		3,994,512		12/18/23		(39,461	)
Copper		Short		10		2,119,687		3/18/24		(71,108	)
Copper		Short		11		1,058,888		3/26/24		(15,400	)
Corn		Short		131		3,162,012		3/14/24		37,729
Corn		Short		11		272,250		5/14/24		1,550
Corn		Short		9		226,913		7/12/24		2,550
Corn		Short		2		50,650		9/13/24		350
Corn		Short		6		153,675		12/13/24		375
Cotton		Long		10		400,300		3/06/24		(4,046	)
Cotton		Long		1		40,350		5/08/24		(365	)
Feeder Cattle		Short		13		1,429,675		1/25/24		146,675
Feeder Cattle		Short		7		779,013		3/28/24		64,013
Feeder Cattle		Short		2		226,675		4/25/24		7,500
Feeder Cattle		Short		1		115,250		5/23/24		3,413
Frozen Concentrate Orange Juice		Long		1		60,150		1/10/24		1,658
Gasoline		Long		10		913,836		12/29/23		(7,108	)
Gasoline		Short		4		365,534		12/29/23		13,402
Gasoline		Short		1		91,468		1/31/24		3,910
Gasoline		Short		1		92,072		2/29/24		916
Gold 100 Oz		Short		10		2,057,200		2/27/24		(28,717	)
Hard Red Winter Wheat		Long		15		482,250		3/14/24		(28,275	)
Hard Red Winter Wheat		Short		23		739,450		3/14/24		509
Hard Red Winter Wheat		Long		2		64,750		5/14/24		25
Hard Red Winter Wheat		Long		2		65,250		7/12/24		(2,837	)
Lean Hogs		Short		6		165,060		12/14/23		7,670
Lean Hogs		Short		26		743,340		2/14/24		41,910
Lean Hogs		Short		9		278,460		4/12/24		13,530
Lean Hogs		Short		3		111,000		6/14/24		1,920
Live Cattle		Short		49		3,367,770		2/29/24		160,700
Live Cattle		Short		14		976,780		4/30/24		59,290
Live Cattle		Short		8		544,640		6/28/24		17,070
Low Sulphur Gas Oil		Long		3		240,450		12/12/23		(19,700	)
Low Sulphur Gas Oil		Long		31		2,438,150		1/11/24		(52,164	)
Low Sulphur Gas Oil		Long		2		156,250		2/12/24		(2,575	)
Milling Wheat		Long		10		123,137		3/11/24		(6,095	)
Milling Wheat		Long		3		37,676		5/10/24		(1,183	)

46 Semiannual Report franklintempleton.com

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)
Commodity Contractsa (continued)
Milling Wheat		Long		1	$	12,586		9/10/24	$	(432	)
Milling Wheat		Long		1		12,803		12/10/24		(352	)
Natural Gas		Long		8		224,160		12/27/23		(50,930	)
Natural Gas		Short		45		1,260,900		12/27/23		169,420
Natural Gas		Long		3		82,890		1/29/24		(21,350	)
Natural Gas		Long		2		52,740		2/27/24		(16,730	)
Natural Gas		Long		1		25,950		3/26/24		(4,800	)
Natural Gas		Long		1		26,580		4/26/24		(1,190	)
Nickel		Long		3		296,748		12/18/23		(31,487	)
Nickel		Short		3		296,748		12/18/23		82,282
Nickel		Long		2		200,508		3/18/24		(21	)
Nickel		Short		2		200,508		3/18/24		22,245
NY Harbor Ultra Low Sulfur Diesel		Long		20		2,313,528		12/29/23		(15,148	)
NY Harbor Ultra Low Sulfur Diesel		Long		2		228,161		1/31/24		(5,586	)
NY Harbor Ultra Low Sulfur Diesel		Long		1		112,384		2/29/24		(1,079	)
Palladium		Short		5		510,200		3/26/24		35,670
Platinum		Long		22		1,029,490		1/29/24		(1,085	)
Platinum		Long		1		47,145		4/26/24		70
Rapeseed		Short		1		24,532		1/31/24		(1,099	)
Robusta Coffee		Long		14		365,540		1/25/24		38,720
Robusta Coffee		Long		13		330,980		3/22/24		28,770
Robusta Coffee		Long		3		75,090		5/24/24		6,070
Silver		Short		8		1,026,400		3/26/24		(36,697	)
Soybean Meal		Long		2		84,800		1/12/24		(2,510	)
Soybean Meal		Long		19		786,980		3/14/24		(37,121	)
Soybean Meal		Long		1		40,800		5/14/24		(1,260	)
Soybean Oil		Short		22		689,832		1/12/24		4,698
Soybean Oil		Short		23		718,290		3/14/24		(12,484	)
Soybean Oil		Short		4		124,752		5/14/24		6,792
Soybean Oil		Short		3		93,330		7/12/24		(2,310	)
Soybean Oil		Short		1		30,864		8/14/24		(1,020	)
Soybeans		Short		12		805,650		1/12/24		(7,675	)
Soybeans		Long		8		544,900		3/14/24		(11,435	)
Soybeans		Short		8		544,900		3/14/24		(3,937	)
Soybeans		Short		3		206,288		5/14/24		(350	)
Soybeans		Short		3		207,113		7/12/24		(1,262	)
Sugar		Long		38		1,108,262		2/29/24		(27,693	)
Sugar		Short		53		1,545,734		2/29/24		40,062
Sugar		Short		7		196,314		4/30/24		(1,254	)
Sugar		Short		3		81,446		6/28/24		918
UK Natural Gas		Short		10		419,264		12/28/23		52,410
Wheat		Short		66		1,973,400		3/14/24		(28,180	)
Wheat		Short		5		153,188		5/14/24		(5,913	)
Wheat		Short		5		156,188		7/12/24		2,988
Wheat		Short		1		31,938		9/13/24		275
White Sugar		Short		15		537,825		2/14/24		14,145
White Sugar		Short		3		104,835		4/15/24		3,735
White Sugar		Short		1		33,945		7/16/24		1,130
WTI Crude Oil		Long		19		1,443,240		12/19/23		(18,833	)
WTI Crude Oil		Short		4		303,840		12/19/23		16,190
WTI Crude Oil		Short		1		76,050		1/22/24		490
Zinc		Long		23		1,422,981		12/18/23		(65,524	)
Zinc		Short		23		1,422,981		12/18/23		(5,314	)
Zinc		Long		10		619,437		3/18/24		(16,917	)
Zinc		Short		9		557,493		3/18/24		23,483
										309,848

franklintempleton.com Semiannual Report 47

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)
Currency Contractsa
Australian Dollar Index		Short		61	$	4,033,320		12/18/23	$	(115,548	)
British Pound Index		Short		27		2,130,469		12/18/23		(35,500	)
Canadian Dollar Index		Short		142		10,468,950		12/19/23		(14,276	)
Euro Index		Long		92		12,531,550		12/18/23		163,608
Japanese Yen Index		Short		21		1,775,419		12/18/23		(3,075	)
Mexican Peso Index		Long		198		5,679,630		12/18/23		27,225
New Zealand Dollar Index		Short		5		308,025		12/18/23		(2,140	)
Swiss Franc Index		Short		71		10,156,550		12/18/23		(169,988	)
U.S. Dollar Index		Long		230		3,418,855		12/18/23		(20,106	)
										(169,800	)
Equity Contracts
CAC 40 10 Euro Indexa		Long		26		2,070,219		12/15/23		24,050
CAC 40 10 Euro Indexa		Short		63		5,016,300		12/15/23		(67,290	)
CBOE Volatility Indexa		Long		61		839,226		12/20/23		(227,724	)
CBOE Volatility Indexa		Long		20		311,362		1/17/24		(60,938	)
CBOE Volatility Indexa		Long		5		82,207		2/14/24		(11,844	)
DAX Indexa		Long		15		6,636,724		12/15/23		205,647
DJ EURO STOXX 50 Indexa		Long		302		14,434,410		12/15/23		570,321
DJ EURO STOXX 50 Index		Short		26		1,242,698		12/15/23		(41,641	)
DJIA Mini E-CBOT Indexa		Long		4		720,200		12/15/23		26,585
DJIA Mini E-CBOT Indexa		Short		13		2,340,650		12/15/23		(176,042	)
E-Mini Russell 2000a		Short		81		7,339,410		12/15/23		(19,401	)
E-mini S&P MidCap 400 Indexa		Short		6		1,540,560		12/15/23		(1,145	)
FTSE 100 Indexa		Long		14		1,318,592		12/15/23		(29,630	)
FTSE 100 Indexa		Short		11		1,036,037		12/15/23		2,909
FTSE China A50 Indexa		Long		172		2,022,720		12/28/23		(2,074	)
FTSE Taiwan Indexa		Short		22		1,320,220		12/28/23		(5,700	)
FTSE/JSE Top 40 Indexa		Long		9		333,885		12/21/23		6,881
FTSE/MIB Indexa		Short		13		2,107,435		12/15/23		(91,701	)
Hang Seng China Enterprises Indexa		Long		1		37,510		12/28/23		(1,256	)
Hang Seng Indexa		Long		1		109,124		12/28/23		(2,774	)
Hang Seng Indexa		Short		18		1,964,231		12/28/23		55,897
IBEX 35 Indexa		Short		32		3,507,828		12/15/23		(160,157	)
KOSPI 200 Indexa		Long		9		591,472		12/14/23		11,998
MSCI Emerging Markets Indexa		Long		10		493,550		12/15/23		5,760
MSCI Singapore Indexa		Long		15		303,656		12/28/23		(1,490	)
NASDAQ 100 E-Mini Indexa		Long		11		3,516,810		12/15/23		85,348
NASDAQ 100 E-Mini Index		Short		1		319,710		12/15/23		(6,266	)
Nikkei 225 Indexa		Long		16		3,615,270		12/07/23		77,753
Nikkei 225 Indexa		Short		21		768,160		12/07/23		(19,362	)
S&P 500 E-Mini Indexa		Long		39		8,924,662		12/15/23		353,183
S&P 500 E-Mini Index		Short		8		1,830,700		12/15/23		(15,040	)
S&P/TSX 60 Indexa		Long		18		3,236,405		12/14/23		35,286
SPI 200 Indexa		Short		8		937,472		12/21/23		6,585
TOPIX Indexa		Long		38		6,089,842		12/07/23		55,722
										582,450
Interest Rate Contractsa
3 Month EURIBOR		Short		47		12,307,703		3/18/24		(12,985	)
3 Month EURIBOR		Short		40		10,507,840		6/17/24		(23,778	)
3 Month EURIBOR		Short		34		8,961,271		9/16/24		(26,234	)
3 Month EURIBOR		Short		176		46,514,676		12/16/24		(164,149	)
3 Month EURIBOR		Short		19		5,031,553		3/17/25		(20,325	)
3 Month EURIBOR		Short		18		4,773,102		6/16/25		(20,680	)
3 Month EURIBOR		Short		13		3,449,540		9/15/25		(12,672	)

48 Semiannual Report franklintempleton.com

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 Contractsa (continued)
3 Month EURIBOR		Short		10	$	2,653,900		12/15/25	$	(10,167	)
3 Month SOFR		Short		1		237,050		6/18/24		(187	)
3 Month SOFR		Short		1		237,825		9/17/24		(262	)
3 Month SOFR		Short		1		238,675		12/17/24		(400	)
3 Month SOFR		Short		162		38,796,974		3/18/25		(131,480	)
3 Month SOFR		Short		1		240,200		6/17/25		(437	)
3 Month SOFR		Short		1		240,700		9/16/25		(487	)
3 Month SOFR		Short		1		240,975		12/16/25		(537	)
3 Month SOFR		Short		1		241,050		3/17/26		(550	)
3 Month SONIA		Short		18		5,386,184		6/18/24		(26,987	)
3 Month SONIA		Short		19		5,696,510		9/17/24		(19,632	)
3 Month SONIA		Short		21		6,313,044		12/17/24		(45,027	)
3 Month SONIA		Short		33		9,947,577		3/18/25		(27,887	)
10-Year Mini Japanese Government Bond		Short		11		1,088,129		12/12/23		(14,246	)
ASX 90 Day Bank Accepted Bill		Long		28		18,299,309		3/07/24		5,491
ASX 90 Day Bank Accepted Bill		Long		23		15,031,209		6/13/24		417
ASX 90 Day Bank Accepted Bill		Long		13		8,497,351		9/12/24		(1,118	)
ASX 90 Day Bank Accepted Bill		Long		12		7,845,623		12/12/24		(646	)
ASX 90 Day Bank Accepted Bill		Long		5		3,269,807		3/13/25		(586	)
Australian 3 Yr. Bond		Long		314		21,897,704		12/15/23		(30,820	)
Australian 10 Yr. Bond		Short		130		9,677,182		12/15/23		11,621
Canadian 10 Yr. Bond		Long		43		3,795,040		3/19/24		46,763
Canadian 10 Yr. Bond		Short		24		2,118,162		3/19/24		(25,540	)
Euro-BOBL		Long		22		2,813,774		12/07/23		19,146
Euro-BOBL		Short		31		3,964,863		12/07/23		(36,662	)
Euro-Bund		Long		121		17,423,726		12/07/23		167,433
Euro-Bund		Short		20		2,879,955		12/07/23		(63,905	)
Euro-Buxl		Short		21		2,973,892		12/07/23		(43,325	)
Euro-OAT		Long		2		276,719		12/07/23		2,863
Euro-SCHATZ		Long		162		18,583,284		12/07/23		17,068
Euro-SCHATZ		Short		170		19,500,977		12/07/23		(47,509	)
Euro-SCHATZ		Long		54		6,217,940		3/07/24		(2,335	)
Euro-SCHATZ		Short		57		6,563,381		3/07/24		1,061
Japanese 10 Yr. Bond		Long		3		2,963,577		12/13/23		34,728
Korean 3 Yr. Bond		Long		188		15,150,455		12/19/23		135,396
Korean 10 Yr. Bond		Short		31		2,659,923		12/19/23		(72,359	)
Long Gilt		Short		14		1,708,753		3/26/24		(3,228	)
Three-Month Canadian Bankers Acceptance		Long		20		3,493,496		3/18/24		11,737
Three-Month Canadian Bankers Acceptance		Long		25		4,380,919		6/17/24		20,969
Three-Month Canadian Bankers Acceptance		Long		25		4,396,579		9/18/24		19,599
Three-Month Canadian Bankers Acceptance		Long		23		4,054,810		12/18/24		16,659
Three-Month Canadian Bankers Acceptance		Long		16		2,827,518		3/19/25		15,948
Three-Month Canadian Bankers Acceptance		Long		3		531,154		6/18/25		18
U.S. Treasury 2 Yr. Note		Long		201		41,096,649		3/28/24		143,335
U.S. Treasury 2 Yr. Note		Short		122		24,944,234		3/28/24		(64,993	)
U.S. Treasury 5 Yr. Note		Short		118		12,608,484		3/28/24		(49,727	)
U.S. Treasury 10 Yr. Note		Short		155		17,018,515		3/19/24		(78,797	)
U.S. Treasury 10 Yr. Ultra		Short		14		1,589,219		3/19/24		(8,594	)
U.S. Treasury Long Bond		Short		38		4,424,625		3/19/24		(22,593	)
U.S. Treasury Ultra Bond		Long		12		1,476,000		3/19/24		11,852
										(429,742	)
Total Futures Contracts									$	292,756

*As of period end.

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

franklintempleton.com Semiannual Report 49

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

At November 30, 2023, the Fund had the following forward exchange contracts outstanding. See Note 1(c).

Forward Exchange Contracts
Currency	Counterpartya		Type		Quantity		Contract Amount*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts
Australian Dollar		MSCO		Buy		220,000		142,921			12/08/23	$	2,484	$	—
Australian Dollar		MSCO		Sell		832,000		528,260			12/08/23		—		(21,637	)
Turkish Lira		JPHQ		Buy		10,076,008		409,981			12/11/23		—		(64,559	)
Turkish Lira		JPHQ		Sell		10,076,008		440,963			12/11/23		95,540		—
British Pound		MSCO		Sell		497,000		628,649			12/15/23		1,116		—
Chilean Peso		MSCO		Buy		598,206,466		649,268			12/15/23		35,873		—
Chilean Peso		MSCO		Sell		1,443,176,450		1,626,400			12/15/23		—		(26,508	)
Chinese Yuan		MSCO		Buy		6,617,814		930,264			12/15/23		2,700		(3,507	)
Chinese Yuan		MSCO		Sell		6,617,813		918,114			12/15/23		—		(11,343	)
Australian Dollar		BZWS		Buy		7,548,000		4,842,059			12/20/23		148,747		—
Australian Dollar		BZWS		Sell		12,216,000		7,898,539			12/20/23		1,284		(180,075	)
British Pound		BZWS		Buy		2,116,000		2,607,953			12/20/23		63,969		(38	)
British Pound		BZWS		Sell		6,479,000		8,032,964			12/20/23		2		(148,107	)
British Pound		JPHQ		Sell		570,000		706,349			12/20/23		—		(13,393	)
Danish Krone		BZWS		Buy		14,784,000		2,105,308			12/20/23		55,872		—
Danish Krone		BZWS		Sell		14,784,000		2,126,489			12/20/23		—		(34,692	)
Euro		BZWS		Buy		524,000		555,064			12/20/23		15,899		(35	)
Euro		BZWS		Sell		2,812,000		3,029,964			12/20/23		4,344		(38,211	)
Euro		JPHQ		Buy		114,400		124,713			12/20/23		—		(68	)
Euro		JPHQ		Sell		1,144,000		1,222,912			12/20/23		—		(23,539	)
Norwegian Krone		BZWS		Buy		6,014,000		557,505			12/20/23		3,013		(4,341	)
Norwegian Krone		BZWS		Sell		22,032,000		2,056,315			12/20/23		19,112		(330	)
Swiss Franc		BNYM		Buy		444,068		497,045			12/20/23		11,286		—
Swiss Franc		BNYM		Sell		929,900		1,046,516			12/20/23		—		(17,955	)
Australian Dollarb		MSCO		Buy		6,949,000		4,515,320			12/22/23		82,329		(2,591	)
Australian Dollarb		MSCO		Sell		8,198,000		5,269,495			12/22/23		—		(151,475	)
British Poundb		MSCO		Buy		8,725,000		10,857,556			12/22/23		161,612		(1,839	)
British Poundb		MSCO		Sell		9,744,000		11,932,066			12/22/23		—		(371,985	)
Canadian Dollarb		MSCO		Buy		5,633,000		4,134,721			12/22/23		26,806		(8,657	)
Canadian Dollarb		MSCO		Sell		15,964,000		11,685,592			12/22/23		10,867		(94,563	)
Eurob		MSCO		Buy		5,026,000		5,401,547			12/22/23		77,430		(2,344	)
Eurob		MSCO		Sell		10,502,000		11,247,366			12/22/23		7,434		(203,680	)
Japanese Yenb		MSCO		Buy		336,986,000		2,273,782			12/22/23		12,700		(5,020	)
Japanese Yenb		MSCO		Sell		1,402,391,000		9,624,683			12/22/23		138,776		(8,562	)
Mexican Pesob		MSCO		Buy		68,365,000		3,920,216			12/22/23		2,125		(415	)
Mexican Pesob		MSCO		Sell		11,543,000		650,365			12/22/23		54		(11,882	)
New Zealand Dollarb		MSCO		Buy		5,583,000		3,351,002			12/22/23		88,214		(809	)
New Zealand Dollarb		MSCO		Sell		9,408,000		5,542,037			12/22/23		—		(252,075	)
Swiss Francb		MSCO		Buy		3,582,000		4,026,028			12/22/23		75,334		—
Swiss Francb		MSCO		Sell		9,152,000		10,221,363			12/22/23		32		(257,633	)
Australian Dollar		BNYM		Sell		180,000		115,770			12/27/23		—		(3,277	)
Canadian Dollar		BNYM		Sell		1,109,000		824,391			12/27/23		6,719		—
Euro		BNYM		Buy		959,000		1,017,147			12/27/23		28,090		—
Euro		BNYM		Sell		3,546,000		3,767,873			12/27/23		—		(96,998	)
Hong Kong Dollar		BNYM		Sell		9,897,000		1,267,985			12/27/23		942		—
Chilean Peso		JPHQ		Buy		3,366,147,009		3,718,042			1/18/24		127,687		—
Chilean Peso		JPHQ		Sell		1,424,778,303		1,517,243			1/18/24		—		(110,526	)
Chinese Yuan		JPHQ		Buy		13,795,273		1,920,000			1/18/24		24,416		—
Chinese Yuan		JPHQ		Sell		13,774,436		1,908,425			1/18/24		—		(33,054	)
Colombian Peso		JPHQ		Sell		22,464,992,394		5,167,490			1/18/24		—		(366,289	)
Czech Koruna		JPHQ		Sell		167,833		6,808	EUR		1/18/24		195		(273	)
Hungarian Forint		JPHQ		Sell		28,756,785		72,722	EUR		1/18/24		2,089		(4,631	)
Polish Zloty		JPHQ		Sell		20,566,999		4,620,000	EUR		1/18/24		43,239		(136,126	)
Euro		JPHQ		Buy		99,000		105,075			1/18/24		2,934		—
Euro		JPHQ		Sell		1,820,344		1,940,160			1/18/24		—		(45,841	)

50 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Forward Exchange Contracts (continued)
Currency	Counterpartya		Type		Quantity		Contract Amount*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Hungarian Forint		JPHQ		Sell		168,940,628		457,165			1/18/24	$	—	$	(23,876	)
Indian Rupee		JPHQ		Buy		149,938,758		1,800,000			1/18/24		—		(4,245	)
Indian Rupee		JPHQ		Sell		149,912,931		1,790,000			1/18/24		—		(5,446	)
Indonesian Rupiah		JPHQ		Buy		67,904,703,033		4,309,999			1/18/24		66,052		—
Indonesian Rupiah		JPHQ		Sell		68,691,466,272		4,392,053			1/18/24		4,716		(39,415	)
Japanese Yen		JPHQ		Buy		614,967,011		4,192,866			1/18/24		—		(10,438	)
Japanese Yen		JPHQ		Sell		582,075,547		3,929,346			1/18/24		—		(29,385	)
Kazakhstan Tenge		CITI		Buy		281,445,408		574,848			1/18/24		30,809		—
Malaysian Ringgit		BZWS		Buy		6,865,308		1,485,097			1/18/24		—		(6,683	)
Malaysian Ringgit		GSCO		Buy		1,918,095		414,903			1/18/24		—		(1,850	)
Mexican Peso		JPHQ		Buy		66,190,128		3,617,554			1/18/24		161,666		—
Peruvian Nuevo Sol		JPHQ		Buy		10,229,145		2,690,000			1/18/24		41,339		—
Peruvian Nuevo Sol		JPHQ		Sell		15,652,161		4,147,106			1/18/24		4,988		(37,250	)
Euro		JPHQ		Sell		4,948,307		22,546,978	PLN		1/18/24		365,343		(136,456	)
Polish Zloty		JPHQ		Sell		2,071,115		474,989			1/18/24		—		(41,941	)
Romanian Leu		JPHQ		Buy		1,144,225		242,391			1/18/24		8,088		—
South African Rand		JPHQ		Buy		52,299,000		2,772,305			1/18/24		—		(10,192	)
South African Rand		JPHQ		Sell		73,553,621		3,815,438			1/18/24		16,887		(86,101	)
South Korean Won		JPHQ		Buy		2,492,359,000		1,910,000			1/18/24		27,677		—
South Korean Won		JPHQ		Sell		88,151,280		65,566			1/18/24		—		(2,967	)
Taiwan Dollar		JPHQ		Buy		59,296,744		1,879,999			1/18/24		29,346		—
Thai Baht		JPHQ		Sell		1,563,768		42,528			1/18/24		—		(2,133	)
Turkish Lira		JPHQ		Buy		12,599,160		420,000			1/18/24		—		(2,192	)
Turkish Lira		JPHQ		Sell		16,546,003		543,384			1/18/24		—		(5,307	)
Brazilian Real		JPHQ		Buy		20,477,311		4,078,676			2/02/24		55,144		(4,121	)
South Korean Won		MSCO		Buy		1,141,836,253		885,791			2/15/24		3,325		—
British Pound		MSCO		Sell		1,450,000		1,831,677			2/29/24		—		(71	)
Danish Krone		MSCO		Sell		300,000		44,291			2/29/24		270		—
Euro		MSCO		Sell		1,000,000		1,099,689			2/29/24		6,814		—
Polish Zloty		MSCO		Buy		3,700,000		926,484			2/29/24		—		(3,556	)
Swedish Krona		MSCO		Buy		800,000		76,906			2/29/24		—		(432	)
Euro		JPHQ		Sell		116,000		126,965			3/20/24		78		—
Euro		JPHQ		Sell		2,900,000		3,396,074			3/31/25		169,408		—
Total Forward Exchange Contracts												$	2,373,215	$	(3,212,940	)
Net unrealized appreciation (depreciation)														$	(839,725	)

*In U.S. dollars unless otherwise indicated.

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

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

franklintempleton.com Semiannual Report 51

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

At November 30, 2023, the Fund had the following credit default swap contracts outstanding. See Note 1(c).

Credit Default Swap Contracts
Description	Annual Payment Rate Received (Paid)		Payment Frequency		Maturity Date		Notional Amounta			Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
Centrally Cleared Swap Contracts
Contracts to Buy Protectionc
Single Name
Air France-KLM		(5.00)%		Quarterly		12/20/27		27,000	EUR	$	(2,250	)	$	2,291		$	(4,541	)
Air France-KLM		(5.00)%		Quarterly		12/20/27		38,000	EUR		(3,167	)		3,154			(6,321	)
Air France-KLM		(5.00)%		Quarterly		12/20/27		70,000	EUR		(5,834	)		4,253			(10,087	)
Air France-KLM		(5.00)%		Quarterly		12/20/27		80,000	EUR		(16,671	)		6,326			(22,997	)
Air France-KLM		(5.00)%		Quarterly		12/20/27		132,000	EUR		(11,002	)		8,421			(19,423	)
Air France-KLM		(5.00)%		Quarterly		6/20/24		200,000	EUR		(5,136	)		1,324			(6,460	)
Air France-KLM		(5.00)%		Quarterly		6/20/24		100,000	EUR		(2,568	)		801			(3,369	)
Alstom SA		(1.00)%		Quarterly		12/20/28		73,000	EUR		3,638			4,065			(427	)
Alstom SA		(1.00)%		Quarterly		12/20/28		147,000	EUR		7,326			7,933			(607	)
American Airlines Inc.		(5.00)%		Quarterly		6/20/24		143,000			(1,778	)		1,651			(3,429	)
American Airlines Inc.		(5.00)%		Quarterly		6/20/24		286,000			(3,556	)		6,625			(10,181	)
American Airlines Inc.		(5.00)%		Quarterly		6/20/24		178,000			(2,213	)		7,028			(9,241	)
American Airlines Inc.		(5.00)%		Quarterly		6/20/25		72,000			(315	)		5,386			(5,701	)
American Airlines Inc.		(5.00)%		Quarterly		6/20/25		288,000			(1,258	)		20,448			(21,706	)
American Airlines Inc.		(5.00)%		Quarterly		12/20/23		216,000			(169	)		190			(359	)
American Airlines Inc.		(5.00)%		Quarterly		12/20/23		66,000			(51	)		203			(254	)
American Airlines Inc.		(5.00)%		Quarterly		12/20/23		155,000			(121	)		348			(469	)
American Airlines Inc.		(5.00)%		Quarterly		12/20/23		483,000			(377	)		378			(755	)
American Airlines Inc.		(5.00)%		Quarterly		6/20/24		41,000			(510	)		1,190			(1,700	)
American Airlines Inc.		(5.00)%		Quarterly		6/20/24		189,000			(2,350	)		6,019			(8,369	)
American Airlines Inc.		(5.00)%		Quarterly		6/20/25		71,000			(310	)		519			(829	)
American Airlines Inc.		(5.00)%		Quarterly		6/20/25		72,000			(315	)		700			(1,015	)
American Airlines Inc.		(5.00)%		Quarterly		6/20/25		72,000			(315	)		1,630			(1,945	)
American Airlines Inc.		(5.00)%		Quarterly		6/20/25		144,000			(629	)		3,599			(4,228	)
American Airlines Inc.		(5.00)%		Quarterly		6/20/25		144,000			(629	)		3,767			(4,396	)
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		6/20/27		155,000			(6,349	)		(3,822	)		(2,527	)
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		6/20/27		73,000			(2,611	)		(2,611	)		—
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		6/20/27		134,000			(5,489	)		(1,693	)		(3,796	)

52 Semiannual Report franklintempleton.com

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		Maturity Date		Notional Amounta			Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
Centrally Cleared Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
American Axle & Manufacturing Inc.		(5.00)%		Quarterly		6/20/27		62,000		$	(2,539	)	$	506		$	(3,045	)
Assicurazioni Generali SpA		(1.00)%		Quarterly		12/20/28		144,000	EUR		3,191			3,768			(577	)
BMW AG		(1.00)%		Quarterly		12/20/28		579,000	EUR		(11,392	)		(7,858	)		(3,534	)
BMW AG		(1.00)%		Quarterly		12/20/28		178,000	EUR		(3,502	)		(2,416	)		(1,086	)
BMW AG		(1.00)%		Quarterly		12/20/28		94,000	EUR		(1,849	)		(1,386	)		(463	)
Boparan Finance PLC		(5.00)%		Quarterly		6/20/24		72,000	EUR		1,790			6,778			(4,988	)
Carnival Corp.		(1.00)%		Quarterly		6/20/27		66,000			6,205			16,219			(10,014	)
Carnival Corp.		(1.00)%		Quarterly		6/20/27		104,000			9,778			25,484			(15,706	)
Carnival Corp.		(1.00)%		Quarterly		6/20/27		328,000			30,838			65,492			(34,654	)
Carnival Corp.		(1.00)%		Quarterly		12/20/25		44,000			1,705			2,706			(1,001	)
Carnival Corp.		(1.00)%		Quarterly		12/20/25		73,000			2,829			3,523			(694	)
Carnival Corp.		(1.00)%		Quarterly		12/20/25		72,000			2,790			4,684			(1,894	)
Carnival Corp.		(1.00)%		Quarterly		12/20/25		72,000			2,790			4,821			(2,031	)
Carnival Corp.		(1.00)%		Quarterly		12/20/25		144,000			5,581			8,313			(2,732	)
Carnival Corp.		(1.00)%		Quarterly		6/20/27		73,000			6,863			7,787			(924	)
Carnival Corp.		(1.00)%		Quarterly		6/20/27		67,000			6,299			8,892			(2,593	)
Carnival Corp.		(1.00)%		Quarterly		6/20/27		67,000			6,299			8,892			(2,593	)
Carnival Corp.		(1.00)%		Quarterly		6/20/27		67,000			6,299			9,059			(2,760	)
Carnival Corp.		(1.00)%		Quarterly		6/20/27		144,000			13,539			16,928			(3,389	)
Ceconomy AG		(1.00)%		Quarterly		12/20/23		26,000	EUR		31			(171	)		202
Ceconomy AG		(1.00)%		Quarterly		12/20/23		26,000	EUR		31			(63	)		94
Ceconomy AG		(1.00)%		Quarterly		12/20/23		12,000	EUR		14			10			4
Ceconomy AG		(1.00)%		Quarterly		12/20/23		26,000	EUR		31			31			—
Ceconomy AG		(1.00)%		Quarterly		12/20/23		28,000	EUR		33			65			(32	)
Ceconomy AG		(1.00)%		Quarterly		6/20/25		86,000	EUR		5,720			11,299			(5,579	)
Continental AG		(1.00)%		Quarterly		12/20/28		3,000	EUR		1			63			(62	)
Continental AG		(1.00)%		Quarterly		12/20/28		711,000	EUR		280			14,892			(14,612	)
Daimler Truck Holding AG		(1.00)%		Quarterly		12/20/28		326,000	EUR		(6,413	)		(4,364	)		(2,049	)
Daimler Truck Holding AG		(1.00)%		Quarterly		12/20/28		292,000	EUR		(5,744	)		(3,924	)		(1,820	)
Daimler Truck Holding AG		(1.00)%		Quarterly		12/20/28		146,000	EUR		(2,872	)		(1,973	)		(899	)
Daimler Truck Holding AG		(1.00)%		Quarterly		12/20/28		94,000	EUR		(1,849	)		(1,386	)		(463	)
Ford Motor Co.		(5.00)%		Quarterly		12/20/28		728,000			(83,305	)		(64,447	)		(18,858	)
Ford Motor Co.		(5.00)%		Quarterly		12/20/28		131,000			(14,990	)		(11,309	)		(3,681	)
Government of Italy		(1.00)%		Quarterly		6/20/24		132,000			(625	)		344			(969	)
Government of Italy		(1.00)%		Quarterly		6/20/24		218,000			(1,032	)		264			(1,296	)
HSBC Holdings PLC		(1.00)%		Quarterly		12/20/28		288,000	EUR		2,077			4,162			(2,085	)
Iceland Bondco		(5.00)%		Quarterly		6/20/25		36,000	EUR		(1,471	)		3,118			(4,589	)
Iceland Bondco		(5.00)%		Quarterly		6/20/25		24,000	EUR		(980	)		527			(1,507	)
Intesa Sanpaolo SpA		(1.00)%		Quarterly		12/20/28		84,000	EUR		4,185			6,045			(1,860	)

franklintempleton.com Semiannual Report 53

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		Maturity Date		Notional Amounta			Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
Centrally Cleared Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
Intesa Sanpaolo SpA		(1.00)%		Quarterly		12/20/28		292,000	EUR	$	14,546		$	17,772		$	(3,226	)
K. Hovnanian Enterprises Inc.		(5.00)%		Quarterly		6/20/28		36,000			1,683			2,613			(930	)
K. Hovnanian Enterprises Inc.		(5.00)%		Quarterly		6/20/28		93,000			4,348			7,172			(2,824	)
K. Hovnanian Enterprises Inc.		(5.00)%		Quarterly		6/20/28		115,000			5,377			9,183			(3,806	)
Kohl’s Corp.		(1.00)%		Quarterly		12/20/24		171,000			33			3,328			(3,295	)
Lanxess AG		(1.00)%		Quarterly		12/20/28		31,000	EUR		1,619			2,082			(463	)
Lanxess AG		(1.00)%		Quarterly		12/20/28		70,000	EUR		3,655			2,672			983
Lanxess AG		(1.00)%		Quarterly		12/20/28		43,000	EUR		2,245			2,897			(652	)
Lanxess AG		(1.00)%		Quarterly		12/20/28		72,000	EUR		3,759			4,630			(871	)
Lanxess AG		(1.00)%		Quarterly		12/20/28		143,000	EUR		7,466			7,324			142
Lanxess AG		(1.00)%		Quarterly		12/20/28		116,000	EUR		6,056			7,815			(1,759	)
Lanxess AG		(1.00)%		Quarterly		12/20/28		217,000	EUR		11,330			8,283			3,047
Lanxess AG		(1.00)%		Quarterly		12/20/28		753,000	EUR		39,315			28,744			10,571
Lincoln National Corp.		(1.00)%		Quarterly		6/20/25		147,000			968			1,612			(644	)
Lincoln National Corp.		(1.00)%		Quarterly		12/20/25		43,000			499			854			(355	)
Lincoln National Corp.		(1.00)%		Quarterly		12/20/25		73,000			848			1,389			(541	)
Lincoln National Corp.		(1.00)%		Quarterly		12/20/25		144,000			1,672			2,324			(652	)
Lincoln National Corp.		(1.00)%		Quarterly		12/20/25		361,000			4,192			7,200			(3,008	)
Mark & Spencer Group PLC		(1.00)%		Quarterly		12/20/28		145,000	EUR		894			3,733			(2,839	)
Mark & Spencer Group PLC		(1.00)%		Quarterly		12/20/28		434,000	EUR		2,675			11,173			(8,498	)
MetLife Inc.		(1.00)%		Quarterly		12/20/28		1,933,000			(8,868	)		(6,138	)		(2,730	)
MetLife Inc.		(1.00)%		Quarterly		12/20/28		25,000			(115	)		152			(267	)
MetLife Inc.		(1.00)%		Quarterly		12/20/28		144,000			(661	)		252			(913	)
MetLife Inc.		(1.00)%		Quarterly		12/20/28		72,000			(330	)		404			(734	)
MetLife Inc.		(1.00)%		Quarterly		12/20/28		101,000			(463	)		829			(1,292	)
Nippon Paper Industries Co.		(1.00)%		Quarterly		12/20/25		21,750,000	JPY		(19	)		449			(468	)
Nippon Paper Industries Co.		(1.00)%		Quarterly		12/20/25		33,598,000	JPY		(30	)		693			(723	)
Nippon Paper Industries Co.		(1.00)%		Quarterly		12/20/28		22,809,000	JPY		7,015			7,636			(621	)
Saint-Gobain SA		(1.00)%		Quarterly		12/20/28		853,000	EUR		(18,768	)		(10,241	)		(8,527	)
SES SA		(1.00)%		Quarterly		12/20/28		1,312,000	EUR		5,428			8,126			(2,698	)
Societe Generale SA		(1.00)%		Quarterly		12/20/23		700,000	EUR		(270	)		288			(558	)
Stellantis NV		(5.00)%		Quarterly		12/20/28		433,000	EUR		(79,451	)		(68,751	)		(10,700	)
Stellantis NV		(5.00)%		Quarterly		12/20/28		276,000	EUR		(50,643	)		(43,823	)		(6,820	)
Stellantis NV		(5.00)%		Quarterly		12/20/28		94,000	EUR		(17,248	)		(16,059	)		(1,189	)
Stena AB		(5.00)%		Quarterly		12/20/24		273,000	EUR		(13,986	)		(6,233	)		(7,753	)
Stena AB		(5.00)%		Quarterly		12/20/28		343,000	EUR		(39,144	)		(38,589	)		(555	)
TDC A/S		(1.00)%		Quarterly		6/20/27		212,000	EUR		(3,990	)		8,635			(12,625	)

54 Semiannual Report franklintempleton.com

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				Maturity Date		Notional Amounta			Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
Centrally Cleared Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
Telecom Italia		(1.00)%		Quarterly				12/20/28		71,000	EUR	$	5,234		$	6,066		$	(832	)
Telecom Italia		(1.00)%		Quarterly				12/20/28		72,000	EUR		5,307			6,151			(844	)
Telecom Italia		(1.00)%		Quarterly				12/20/28		347,000	EUR		25,579			30,177			(4,598	)
Tesco PLC		(1.00)%		Quarterly				12/20/28		342,000	EUR		(5,799	)		(2,142	)		(3,657	)
Tesco PLC		(1.00)%		Quarterly				12/20/28		92,000	EUR		(1,560	)		(487	)		(1,073	)
Tesco PLC		(1.00)%		Quarterly				12/20/28		72,000	EUR		(1,221	)		(451	)		(770	)
ThyssenKrupp AG		(1.00)%		Quarterly				12/20/28		29,000	EUR		983			1,384			(401	)
ThyssenKrupp AG		(1.00)%		Quarterly				12/20/28		72,000	EUR		2,439			3,437			(998	)
ThyssenKrupp AG		(1.00)%		Quarterly				12/20/28		108,000	EUR		3,659			7,081			(3,422	)
ThyssenKrupp AG		(1.00)%		Quarterly				12/20/28		108,000	EUR		3,659			7,083			(3,424	)
Unibail-Rodamco-Westfield SE		(1.00)%		Quarterly				12/20/28		72,000	EUR		2,795			3,865			(1,070	)
Unibail-Rodamco-Westfield SE		(1.00)%		Quarterly				12/20/28		652,000	EUR		25,307			38,596			(13,289	)
United Group BV		(5.00)%		Quarterly				6/20/28		72,000	EUR		640			7,922			(7,282	)
Vodafone Group PLC		(1.00)%		Quarterly				12/20/28		146,000	EUR		(2,418	)		(2,433	)		15
Vodafone Group PLC		(1.00)%		Quarterly				12/20/28		146,000	EUR		(2,418	)		(2,358	)		(60	)
Vodafone Group PLC		(1.00)%		Quarterly				12/20/28		146,000	EUR		(2,418	)		(2,276	)		(142	)
Volkswagen AG		(1.00)%		Quarterly				12/20/28		1,174,000	EUR		7,993			22,193			(14,200	)
Contracts to Sell Protectionc,d
Traded Index
eCDX.EM.40		1.00%		Quarterly				12/20/28		1,000,000			(37,870	)		(46,725	)		8,855			Investment Grade
eCDX.NA.HY.41		5.00%		Quarterly				12/20/28		2,970,000			115,308			20,345			94,963			Non- Investment Grade
eCDX.NA.IG.41		1.00%		Quarterly				12/20/28		25,000,000			419,818			324,095			95,723			Investment Grade
eITRX.EUR		1.00%		Quarterly				12/20/28		30,000,000	EUR		485,931			335,844			150,087			Investment Grade
eITRX.EUR.XOVER		5.00%		Quarterly				12/20/28		12,000,000	EUR		678,139			427,749			250,390			Sub- Investment Grade
Total Centrally Cleared Swap Contracts												$	1,536,351		$	1,381,044		$	155,307
OTC Swap Contracts
Contracts to Buy Protectionc
Single Name					Counterparty
American Airlines Inc.		(5.00)%		Quarterly		BZWS		12/20/23		27,000			(291	)		31			(322	)
American Airlines Inc.		(5.00)%		Quarterly		BZWS		12/20/23		111,000			(1,197	)		148			(1,345	)
American Airlines Inc.		(5.00)%		Quarterly		BZWS		12/20/24		307,000			(9,443	)		(3,620	)		(5,823	)

franklintempleton.com Semiannual Report 55

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 Amounta		Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
American Airlines Inc.		(5.00)%		Quarterly		BZWS		12/20/24		205,000	$	(6,306	)	$	(2,715	)	$	(3,591	)
American Airlines Inc.		(5.00)%		Quarterly		BZWS		12/20/24		204,000		(6,275	)		(2,612	)		(3,663	)
American Airlines Inc.		(5.00)%		Quarterly		BZWS		12/20/24		205,000		(6,306	)		(2,422	)		(3,884	)
American Airlines Inc.		(5.00)%		Quarterly		BZWS		12/20/24		18,000		(554	)		376			(930	)
American Airlines Inc.		(5.00)%		Quarterly		BZWS		12/20/24		127,000		(3,907	)		4,054			(7,961	)
American Airlines Inc.		(5.00)%		Quarterly		BZWS		12/20/24		78,000		(2,399	)		5,575			(7,974	)
American Airlines Inc.		(5.00)%		Quarterly		GSCO		12/20/24		70,000		(2,153	)		5,253			(7,406	)
American Airlines Inc.		(5.00)%		Quarterly		GSCO		12/20/24		339,000		(10,428	)		14,053			(24,481	)
American Airlines Inc.		(5.00)%		Quarterly		MSCO		6/20/25		216,000		(3,104	)		1,056			(4,160	)
Bank of China		(1.00)%		Quarterly		GSCO		6/20/26		288,000		(4,525	)		(3,635	)		(890	)
Bank of China		(1.00)%		Quarterly		GSCO		12/20/28		940,000		(13,946	)		(718	)		(13,228	)
Bank of China		(1.00)%		Quarterly		JPHQ		6/20/26		144,000		(2,262	)		(957	)		(1,305	)
Bank of China		(1.00)%		Quarterly		JPHQ		6/20/26		144,000		(2,262	)		(924	)		(1,338	)
Bank of China		(1.00)%		Quarterly		JPHQ		12/20/28		362,000		(5,371	)		(285	)		(5,086	)
Bank of China		(1.00)%		Quarterly		MSCS		6/20/26		72,000		(1,131	)		(597	)		(534	)
Bank of China		(1.00)%		Quarterly		MSCS		6/20/26		72,000		(1,131	)		(546	)		(585	)
China Construction		(1.00)%		Quarterly		GSCO		12/20/28		651,000		(9,586	)		(497	)		(9,089	)
China Construction		(1.00)%		Quarterly		JPHQ		6/20/26		288,000		(4,562	)		(3,635	)		(927	)
China Construction		(1.00)%		Quarterly		JPHQ		6/20/26		216,000		(3,422	)		(1,385	)		(2,037	)
China Construction		(1.00)%		Quarterly		JPHQ		6/20/26		216,000		(3,421	)		(1,383	)		(2,038	)
China Construction		(1.00)%		Quarterly		JPHQ		12/20/28		796,000		(11,722	)		(278	)		(11,444	)
Government of Argentina		(5.00)%		Quarterly		BZWS		12/20/26		696,000		409,231			235,656			173,575
Government of Argentina		(5.00)%		Quarterly		CITI		12/20/26		195,000		114,655			105,594			9,061
Government of Argentina		(5.00)%		Quarterly		GSCO		12/20/26		253,000		148,758			84,296			64,462
Government of Argentina		(5.00)%		Quarterly		GSCO		12/20/26		842,000		495,075			280,279			214,796
Government of Argentina		(5.00)%		Quarterly		GSCO		12/20/27		612,000		370,204			405,255			(35,051	)
Government of Argentina		(5.00)%		Quarterly		GSCO		12/20/27		1,120,000		677,497			557,353			120,144
Government of Argentina		(5.00)%		Quarterly		JPHQ		12/20/26		253,000		148,758			84,217			64,541
Government of Egypt		(1.00)%		Quarterly		BZWS		12/20/24		713,000		62,473			44,525			17,948
Government of Egypt		(1.00)%		Quarterly		BZWS		6/20/26		306,000		77,856			95,064			(17,208	)
Government of Egypt		(1.00)%		Quarterly		CITI		12/20/24		375,000		32,857			48,829			(15,972	)
Government of Egypt		(1.00)%		Quarterly		CITI		12/20/25		680,000		140,236			130,512			9,724

56 Semiannual Report franklintempleton.com

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 Amounta			Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
Government of Egypt		(1.00)%		Quarterly		CITI		6/20/26		365,000		$	92,867		$	137,787		$	(44,920	)
Government of Egypt		(1.00)%		Quarterly		CITI		6/20/26		625,000			159,019			178,371			(19,352	)
Government of Egypt		(1.00)%		Quarterly		CITI		12/20/27		680,000			228,986			198,859			30,127
Government of South Africa		(1.00)%		Quarterly		BZWS		12/20/24		1,220,000			(7,440	)		11,680			(19,120	)
Government of South Africa		(1.00)%		Quarterly		GSCO		6/20/24		1,220,000			(6,580	)		5,250			(11,830	)
Industrial and Commercial Bank of China		(1.00)%		Quarterly		GSCO		12/20/28		1,306,000			(19,567	)		(998	)		(18,569	)
Industrial and Commercial Bank of China		(1.00)%		Quarterly		JPHQ		6/20/26		144,000			(2,259	)		(889	)		(1,370	)
Industrial and Commercial Bank of China		(1.00)%		Quarterly		JPHQ		12/20/28		145,000			(2,172	)		(51	)		(2,121	)
Industrial and Commercial Bank of China		(1.00)%		Quarterly		MSCS		6/20/26		144,000			(2,259	)		(1,023	)		(1,236	)
JFE Holdings Inc.		(1.00)%		Quarterly		BZWS		12/20/28		42,882,000	JPY		(7,553	)		(6,869	)		(684	)
JFE Holdings Inc.		(1.00)%		Quarterly		GSCO		12/20/28		187,961,000	JPY		(33,104	)		(28,079	)		(5,025	)
Kawasaki Heavy Industries Ltd.		(1.00)%		Quarterly		BZWS		12/20/28		198,470,000	JPY		(33,328	)		(33,143	)		(185	)
Kobe Steel Ltd.		(1.00)%		Quarterly		GSCO		12/20/28		181,198,000	JPY		(8,218	)		(13,713	)		5,495
Lincoln National Corp.		(1.00)%		Quarterly		BZWS		6/20/25		72,000			330			898			(568	)
Lincoln National Corp.		(1.00)%		Quarterly		BZWS		6/20/25		72,000			330			898			(568	)
Lincoln National Corp.		(1.00)%		Quarterly		GSCO		6/20/25		5,000			23			68			(45	)
Lincoln National Corp.		(1.00)%		Quarterly		GSCO		6/20/25		71,000			325			876			(551	)
Lincoln National Corp.		(1.00)%		Quarterly		GSCO		6/20/25		135,000			619			1,725			(1,106	)
Lincoln National Corp.		(1.00)%		Quarterly		GSCO		6/20/25		141,000			646			1,822			(1,176	)
Lincoln National Corp.		(1.00)%		Quarterly		GSCO		6/20/25		360,000			1,650			4,753			(3,103	)
Mitsui O.S.K. Lines Ltd.		(1.00)%		Quarterly		BZWS		12/20/28		57,834,000	JPY		(6,572	)		(5,748	)		(824	)
Mitsui O.S.K. Lines Ltd.		(1.00)%		Quarterly		GSCO		12/20/28		137,356,000	JPY		(15,609	)		(11,765	)		(3,844	)
Nippon Paper Industries Co.		(1.00)%		Quarterly		BZWS		12/20/28		76,004,000	JPY		22,351			14,574			7,777
Nippon Paper Industries Co.		(1.00)%		Quarterly		GSCO		12/20/28		6,723,000	JPY		1,977			1,284			693
Nippon Paper Industries Co.		(1.00)%		Quarterly		JPHQ		12/20/25		7,366,000	JPY		(106	)		(50	)		(56	)

franklintempleton.com Semiannual Report 57

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 Amounta			Value			Upfront Payments (Receipts)		Unrealized Appreciation (Depreciation)			Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
Nippon Paper Industries Co.		(1.00)%		Quarterly		MSCO		12/20/28		7,700,000	JPY	$	2,264		$	2,740	$	(476	)
Rakuten Group Inc.		(1.00)%		Quarterly		BZWS		12/20/23		43,477,000	JPY		(559	)		382		(941	)
Rakuten Group Inc.		(1.00)%		Quarterly		BZWS		6/20/24		43,477,000	JPY		(303	)		4,419		(4,722	)
Rakuten Group Inc.		(1.00)%		Quarterly		BZWS		6/20/25		6,895,000	JPY		1,302			1,971		(669	)
Rakuten Group Inc.		(1.00)%		Quarterly		BZWS		6/20/25		20,947,000	JPY		3,955			6,521		(2,566	)
Rakuten Group Inc.		(1.00)%		Quarterly		BZWS		6/20/27		27,456,000	JPY		19,295			28,640		(9,345	)
Rakuten Group Inc.		(1.00)%		Quarterly		JPHQ		12/20/23		14,492,000	JPY		(187	)		162		(349	)
Rakuten Group Inc.		(1.00)%		Quarterly		JPHQ		6/20/25		14,053,000	JPY		2,653			4,147		(1,494	)
Softbank Group Corp.		(1.00)%		Quarterly		BZWS		6/20/28		29,008,000	JPY		7,381			17,667		(10,286	)
Softbank Group Corp.		(1.00)%		Quarterly		GSCO		6/20/28		62,367,000	JPY		15,869			36,563		(20,694	)
Total OTC Swap Contracts												$	2,977,922		$	2,635,646	$	342,276
Total Credit Default Swap Contracts												$	4,514,273		$	4,016,690	$	497,583

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

^bBased on Standard and Poor’s (S&P) Rating for single name swaps and internal ratings for index swaps. Internal ratings based on mapping into equivalent ratings from external vendors.

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

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

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

At November 30, 2023, the Fund had the following interest rate swap contracts outstanding. See Note 1(c).

Interest Rate Swap Contracts
Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts
Receive Fixed 9.47% Pay Floating Banxico Mexico 1 Month Rate		Monthly		10/22/24		82,400,000	MXN	$	(64,332	)
Receive Fixed 6.30% Pay Floating rate 3-Month-JIBAR		Quarterly		7/31/25		53,795,745	ZAR		(69,478	)
Receive Fixed 7.57% Pay Floating rate 3-Month-JIBAR		Quarterly		11/04/25		39,000,000	ZAR		(9,077	)
Receive Fixed 4.75% Pay Floating rate 6-Month-CZEONIA		Semi-Annually		1/19/26		185,639,596	CZK		(994	)
Receive Fixed 10.42% Pay Floating BRLCDI		Annually		1/04/27		6,000,000	BRL		858
Receive Fixed 11.07% Pay Floating BRLCDI		Annually		1/04/27		9,430,255	BRL		8,289
Receive Fixed 13.29% Pay Floating BRLCDI		Annually		1/04/27		2,980,054	BRL		39,750
Receive Fixed 13.41% Pay Floating BRLCDI		Annually		1/04/27		5,875,629	BRL		81,948
Receive Fixed 13.47% Pay Floating BRLCDI		Annually		1/04/27		4,395,970	BRL		62,736

58 Semiannual Report franklintempleton.com

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 13.51% Pay Floating BRLCDI		Annually		1/04/27		8,748,347	BRL	$	126,387
Receive Fixed 8.78% Pay Floating Banxico Mexico 1 Month Rate		Monthly		10/19/27		72,800,000	MXN		43,169
Receive Fixed 4.43% Pay Floating rate Overnight SOFR		Annuallly		10/02/28		2,088,000			33,371
Receive Fixed 4.52% Pay Floating rate Overnight SOFR		Annuallly		10/05/28		2,088,000			42,011
Receive Fixed 4.15% Pay Floating rate Overnight SOFR		Annuallly		11/22/28		5,700,000			31,574
Receive Fixed 8.47% Pay Floating Banxico Mexico 1 Month Rate		Monthly		10/12/32		37,000,000	MXN		(48,796	)
Receive Fixed 8.72% Pay Floating Banxico Mexico 1 Month Rate		Monthly		10/12/32		21,700,000	MXN		(8,898	)
Receive Fixed 8.37% Pay Floating Overnight COLIBOR		Quarterly		7/19/33		3,272,380,144	COP		(3,489	)
Receive Fixed 7.97% Pay Floating Banxico Mexico 1 Month Rate		Monthly		10/06/33		26,200,000	MXN		(88,416	)
Receive Fixed 4.55% Floating rate 6-Month-CZEONIA		Annuallly		1/18/34		43,300,000	CZK		(89,578	)
Receive Fixed 5.79% Pay Floating rate CLP TNA		Semi- Annually		1/18/34		1,149,000,000	CLP		(75,202	)
Receive Fixed 9.61% Pay Floating rate 3-Month-JIBAR		Quarterly		1/18/34		18,000,000	ZAR		22,106
Total Interest Rate Swap Contracts								$	33,939

*In U.S. dollars unless otherwise indicated.

At November 30, 2023, the Fund had the following total return swap contracts outstanding. See Note 1(c).

Total Return Swap Contracts

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts

Equity Contracts – Longa

1+1 AG

1-Month EURIBOR + 0.25%

Monthly

JPHQ

1/30/24

21,641

EUR

$

13,376

3i Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

193,185

GBP

79,010

4imprint Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

6/03/24

398,596

GBP

(60,853

)

A.P. Moller – Maersk

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/24

1,009,123

DKK

(35,506

)

A1 Telekom Austria AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

230,215

EUR

24,559

A2A SpA

Euro STR + 0.35%

Monthly

JPHQ

8/12/24

315,627

EUR

51,975

Abcam PLC

1-Day FEDEF + 0.30%

Monthly

BOFA

8/29/24

202,461

19,493

AcadeMedia AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

1,618,103

SEK

6,947

AddLife AB

1-Week STIBOR + 0.28%

Monthly

SEBA

8/02/24

3,503,946

SEK

41,003

Adocia

1-Day EONIA + 0.30%

Monthly

MSCS

12/02/24

11,590

EUR

(254

)

ADvTECH Ltd.

1-Day SABOR + 0.30%

Monthly

MSCS

7/17/24

1,442,718

ZAR

33,052

Aeci Limited

1-Day SABOR + 0.70%

Monthly

MSCS

7/17/24

3,166,263

ZAR

(7,682

)

Aedas Homes SA

1-Day EONIA + 0.35%

Monthly

MSCS

4/01/24

101,899

EUR

19,857

Afrimat Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

9/25/24

881,086

ZAR

4,115

Ageas

Euro STR + 0.35%

Monthly

JPHQ

5/01/24

190,673

EUR

8,055

AIB Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

19,823

GBP

1,832

Air France-KLM

1-Day EONIA + 0.30%

Monthly

MSCS

10/02/24

263,659

EUR

(63,493

)

Airtel Africa PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

120,789

GBP

(4,774

)

franklintempleton.com Semiannual Report 59

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Aker Solutions ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/24

5,033,705

NOK

$

16,891

Albertsons Cos. Inc.

1-Day FEDEF + 0.30%

Monthly

BOFA

1/30/24

222,921

(21,172

)

Alfa Financial Software

1-Day SONIA + 0.35%

Monthly

MSCS

11/18/24

10,896

GBP

(277

)

ALSO Holding AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/15/24

390,834

CHF

72,876

Alzchem Group AG

Euro STR + 0.35%

Monthly

JPHQ

11/22/24

10,777

EUR

661

Amadeus Fire AG

Euro STR + 0.35%

Monthly

JPHQ

1/31/24

165,279

EUR

(2,311

)

Ambea AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

2,954,325

SEK

65,471

AMG Critical Materials NV

Euro STR + 0.35%

Monthly

JPHQ

6/06/24

268,813

EUR

(110,696

)

Amundi

1-Day EONIA + 0.30%

Monthly

MSCS

9/23/24

301,383

EUR

29,791

Amyris Inc.

1-Day FEDEF + 0.70%

Monthly

BOFA

2/01/24

96,689

(7,696

)

Anadolu Efes

1-Day FEDEF + 1.25%

Monthly

MSCS

1/22/24

173,070

(12,030

)

Andritz AG

Euro STR + 0.35%

Monthly

JPHQ

7/15/24

211,483

EUR

(23,317

)

AO World PLC

1-Day SONIA + 0.35%

Monthly

MSCS

12/02/24

154,689

GBP

52,678

Applus Servicios Tecnologicos SL

Euro STR + 0.30%

Monthly

BOFA

7/03/24

92,187

EUR

(341

)

Arcelormittal SA

Euro STR + 0.25%

Monthly

JPHQ

2/28/24

329,568

EUR

(54,666

)

Arctic

1-Day FEDEF + 0.30%

Monthly

MSCS

11/27/24

73,217

6,922

Arise AB

1-Day SABOR + 0.70%

Monthly

SEBA

8/05/24

1,178,381

SEK

(30,391

)

Arjo AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

4,989,698

SEK

(68,638

)

Aroundtown SA

Euro STR + 0.35%

Monthly

JPHQ

9/12/24

190,161

EUR

41,847

ARYZTA

1-Day SARON + 0.35%

Monthly

JPHQ

4/26/24

457,243

CHF

20,176

Ascencio

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

52,120

EUR

(2,605

)

Ascom Holding AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

133,681

CHF

16,292

ASML Holding NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

174,051

EUR

14,421

Asseco Poland SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/24

396,254

36,078

Atea ASA

1-Week NIBOR + 0.275%

Monthly

SEBA

3/18/24

1,852,353

NOK

(11,771

)

Atos

1-Day EONIA + 0.30%

Monthly

MSCS

3/25/24

317,247

EUR

(91,887

)

Atoss Software AG

Euro STR + 0.35%

Monthly

JPHQ

8/01/24

310,931

EUR

25,964

Atresmedia Corporacion de Medios de Comunicacion SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/24

177,230

EUR

9,868

Attacq Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

7/15/24

1,158,442

ZAR

717

Attendo AB

1-Week STIBOR + 0.28%

Monthly

SEBA

1/08/25

2,399,571

SEK

31,393

Audax Renovables SA

1-Day EONIA + 0.35%

Monthly

MSCS

4/24/24

104,966

EUR

7,745

Aurelius Equity Opportunities AB

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

5,334

EUR

(198

)

Austevoll Seafood ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/12/24

2,627,002

NOK

(17,733

)

Autoneum

1-Day SARON + 0.35%

Monthly

JPHQ

11/27/24

96,773

CHF

(7,012

)

Awilco LNG ASA

1-Week NIBOR + 0.275%

Monthly

SEBA

4/29/24

448,215

NOK

(3,982

)

Axa SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

167,535

EUR

14,850

B2 Impact ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/24

1,438,074

NOK

(8,646

)

Balfour Beatty

1-Day SONIA + 0.35%

Monthly

MSCS

9/18/24

417,709

GBP

(15,960

)

Baltic Classifieds Group

1-Day SONIA + 0.35%

Monthly

MSCS

10/14/24

30,794

GBP

3,756

Banca Ifis SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

528,445

EUR

49,590

Banco Bilbao Vizcaya Argentaria SA

1-Day EONIA + 0.35%

Monthly

MSCS

9/30/24

200,553

EUR

51,342

Banco Santander SA

1-Day EONIA + 0.35%

Monthly

MSCS

8/05/24

240,860

EUR

16,660

Bank Handlowy w Warszawie SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/15/24

24,618

4,611

Bank of Cyprus Holdings PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/15/24

16,287

GBP

1,210

Bank of Georgia Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/31/24

324,937

GBP

136,062

Barclays PLC

1-Day FEDEF + 0.70%

Monthly

BOFA

5/03/24

1,647,126

26,074

Barclays PLC

1-Day SONIA + 0.44%

Monthly

MSCS

7/17/24

185,906

GBP

(16,907

)

Barloworld Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

8/30/24

1,300,743

ZAR

(7,851

)

Basilea Pharmaceutica AG

Euro STR + 6.75%

Monthly

JPHQ

5/08/24

316,453

CHF

(79,758

)

Bavarian Nordic A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

11/27/24

764,264

DKK

18,234

Bayerische Motoren Werke AG

Euro STR + 0.35%

Monthly

JPHQ

7/03/24

255,465

EUR

(23,137

)

BE Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

1,333,911

SEK

(51,926

)

BE Semiconductor Industries NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

179,866

EUR

57,978

60 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Bechtle AG

Euro STR + 0.35%

Monthly

JPHQ

11/06/24

223,865

EUR

$

2,958

Bekaert SA

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

192,748

EUR

(718

)

Bell Food Group AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/24

153,314

CHF

4,405

Bellway PLC

1-Day SONIA + 0.35%

Monthly

MSCS

4/04/24

118,559

GBP

7,621

Benefit

1-Day FEDEF + 1.25%

Monthly

MSCS

9/26/24

54,561

6,777

Beneteau

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

316,559

EUR

(40,887

)

Bergenbio ASA

1-Week NIBOR + 0.275%

Monthly

SEBA

11/27/24

56,928

NOK

111

Betsson AB

1-Week STIBOR + 0.275%

Monthly

SEBA

7/17/24

6,340,886

SEK

16,110

Better Collective A/S

1-Week STIBOR + 0.275%

Monthly

SEBA

9/16/24

1,303,753

SEK

(10,761

)

BHG Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/24

1,007,218

SEK

(7,226

)

BIC

1-Day EONIA + 0.30%

Monthly

MSCS

4/17/24

212,052

EUR

14,575

Bilfinger SE

Euro STR + 0.35%

Monthly

JPHQ

12/06/24

302,477

EUR

19,754

BioGaia AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

2,704,763

SEK

25,024

Bloomin’ Brands Inc.

SOFR + 3.50%

Monthly

GSCO

5/01/25

3,041,705

(5,506

)

Bloomsbury Publishing PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

62,904

GBP

(4,484

)

BNP Paribas SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

276,015

EUR

20,403

Bodycote PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/05/24

280,288

GBP

(42,176

)

Bogdanka SA

1-Day FEDEF + 0.30%

Monthly

MSCS

8/19/24

128,787

(3,150

)

Bonheur ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

8/28/24

461,453

NOK

(9,344

)

Boozt AB

1-Week STIBOR + 0.275%

Monthly

SEBA

9/19/24

2,220,225

SEK

52,328

Borregaard

1-Week NIBOR + 0.28%

Monthly

SEBA

7/05/24

825,766

NOK

5,080

BPER Banca SpA

Euro STR + 0.35%

Monthly

JPHQ

9/25/24

183,367

EUR

56,516

Bpost

Euro STR + 0.35%

Monthly

JPHQ

11/07/24

66,520

EUR

(4,569

)

Bravida Holding AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/01/24

1,083,619

SEK

(31,714

)

Breedon Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

309,282

GBP

8,190

British Land Co. PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/05/24

272,310

GBP

27,247

Britvic

1-Day SONIA + 0.35%

Monthly

MSCS

10/17/24

123,211

GBP

(2,363

)

Brunel International NV

1-Week STIBOR + 0.28%

Monthly

JPHQ

7/17/24

138,389

EUR

(12,103

)

Bulten AB

1-Week STIBOR + 0.275%

Monthly

SEBA

10/18/24

992,073

SEK

(1,423

)

Burckhardt

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

300,477

CHF

(17,656

)

Buzzi Unicem SpA

Euro STR + 0.35%

Monthly

JPHQ

8/12/24

136,353

EUR

(1,306

)

C&C Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/24/24

16,670

GBP

872

Cairn Homes PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

117,335

GBP

24,730

CaixaBank SA

1-Day EONIA + 0.35%

Monthly

MSCS

8/21/24

140,447

EUR

5,070

Capstar Financial Holding

1-Day FEDEF + 0.20%

Monthly

BOFA

10/31/24

138,012

(446

)

Card Factory PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

152,124

GBP

35,784

Care Property Invest

Euro STR + 0.35%

Monthly

JPHQ

12/16/24

16,339

EUR

(173

)

Cargotec OYJ

Euro STR + 0.28%

Monthly

SEBA

8/23/24

581,108

EUR

29,351

Carlsberg Group

1-Week CIBOR + 0.28%

Monthly

SEBA

9/12/24

2,137,514

DKK

(64,253

)

Carmila

1-Day EONIA + 0.30%

Monthly

MSCS

8/07/24

171,623

EUR

(1,680

)

Carrefour

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

402,118

EUR

806

Catana Group

1-Day EONIA + 0.30%

Monthly

MSCS

12/02/24

1,379

EUR

12

Catena Media PLC

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

2,357,287

SEK

(127,164

)

Ceconomy AG

Euro STR + 0.35%

Monthly

JPHQ

7/05/24

164,157

EUR

(10,413

)

Cembre

Euro STR + 0.35%

Monthly

JPHQ

11/14/24

35,729

EUR

1,603

Cementir Holding NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

154,432

EUR

45,335

Centrica PLC ORD

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

304,679

GBP

89,954

Chart Industries Inc.

1-Day FEDEF + 0.70%

Monthly

BOFA

3/27/24

1,950,027

(7,503

)

Cinemark Holdings Inc.

SOFR + 3.50%

Monthly

GSCO

5/04/24

1,165,451

(101,620

)

Clariant International AG

1-Day SARON + 0.35%

Monthly

JPHQ

5/30/24

214,831

CHF

3,456

Clarkson PLC

1-Day SONIA + 0.35%

Monthly

MSCS

5/06/24

233,422

GBP

(3,983

)

Clas Ohlson AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

3,595,243

SEK

213,960

Cliq Digital AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

188,887

EUR

(48,082

)

Cloetta AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

3,857,561

SEK

(42,744

)

franklintempleton.com Semiannual Report 61

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Coca-Cola Europacific Partners PLC

1-Day SONIA + 0.30%

Monthly

JPHQ

10/11/24

245,472

EUR

$

8,604

COFACE

1-Day EONIA + 0.30%

Monthly

MSCS

7/15/24

344,020

EUR

(36,693

)

Commerzbank AG

Euro STR + 0.35%

Monthly

JPHQ

12/18/24

270,779

EUR

31,205

Compagnie des Alpes

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

182,000

EUR

(1,722

)

Computacenter PLC ORD

1-Day SONIA + 0.35%

Monthly

MSCS

7/15/24

137,625

GBP

38,582

Conduit Holdings Ltd.

1-Day SONIA + 0.35%

Monthly

MSCS

10/17/24

127,769

GBP

5,629

Coor Service Management Holding AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

1,807,185

SEK

(63,852

)

Corem Property Group

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/24

2,950,737

SEK

69,847

Costain Group

1-Day SONIA + 0.35%

Monthly

MSCS

11/15/24

14,262

GBP

1,899

Costain Group

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/24

568

GBP

53

Cranswick PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/29/24

15,785

GBP

2,730

CRH PLC ORD

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

161,415

GBP

36,560

CTS Eventim AG & Co. KGaA

Euro STR + 0.35%

Monthly

JPHQ

10/03/24

126,807

EUR

15,322

Dampskibsselskabet Norden A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/24

734,818

DKK

(20,491

)

Danieli & C Officine Meccaniche SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

320,349

EUR

59,443

Danske Bank A/S

1-Week CIBOR + 0.275%

Monthly

SEBA

11/13/24

1,044,306

DKK

8,346

Darktrace PLC

1-Day SONIA + 0.35%

Monthly

MSCS

12/04/24

225,585

GBP

(16,974

)

Dassault Aviation

1-Day EONIA + 0.30%

Monthly

MSCS

9/16/24

228,932

EUR

(880

)

DCC PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

172,172

GBP

46,653

Deceuninck

Euro STR + 0.35%

Monthly

JPHQ

11/07/24

30,479

EUR

(527

)

Dedicare AB

1-Week STIBOR + 0.275%

Monthly

SEBA

5/27/24

1,033,895

SEK

4,214

Demant AS

1-Week CIBOR + 0.28%

Monthly

SEBA

8/26/24

2,355,955

DKK

3,654

Derichebourg SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

356,324

EUR

(37,170

)

Deutsche Bank AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

369,393

EUR

68,556

Deutsche Lufthansa AG

Euro STR + 0.35%

Monthly

JPHQ

9/06/24

251,610

EUR

(25,367

)

DNO ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/15/24

4,165,903

NOK

(23,708

)

DO & CO AG

Euro STR + 0.35%

Monthly

JPHQ

9/06/24

167,000

EUR

36,178

Dom Development

1-Day FEDEF + 1.25%

Monthly

MSCS

11/28/24

5,501

4

dotdigital Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

6/03/24

72,949

GBP

6,567

Drax Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

436,914

GBP

(134,090

)

DS Smith PLC

1-Day SONIA + 0.35%

Monthly

MSCS

3/25/24

254,421

GBP

(20,982

)

Duerr AG

Euro STR + 0.35%

Monthly

JPHQ

2/15/24

594,842

EUR

(228,308

)

Dunelm Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

4/03/24

290,095

GBP

(26,405

)

E.ON SE

Euro STR + 0.35%

Monthly

JPHQ

8/19/24

340,594

EUR

24,223

Econocom Group SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

61,290

EUR

(5,263

)

EFG International AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/24

393,045

CHF

66,053

Electrolux Professional AB

1-Week STIBOR + 0.275%

Monthly

SEBA

5/08/24

1,651,271

SEK

(27,938

)

Elekta AB

1-Week STIBOR + 0.28%

Monthly

SEBA

8/05/24

1,480,922

SEK

4,250

Elektrotim

1-Day FEDEF + 1.25%

Monthly

MSCS

11/28/24

5,549

137

Elis SA

1-Day EONIA + 0.30%

Monthly

MSCS

2/26/24

138,955

EUR

7,394

Elisa Corp.

Euro STR + 0.275%

Monthly

SEBA

9/09/24

234,766

EUR

(18,652

)

Elkem ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/15/24

1,417,055

NOK

(43,997

)

Elmos Semiconductor SE

Euro STR + 0.35%

Monthly

JPHQ

7/18/24

73,824

EUR

8,382

Enad Global 7 AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/24

2,841,985

SEK

(95,904

)

Encore Capital Group Inc.

1-Day FEDEF + 0.70%

Monthly

BOFA

3/02/24

360,778

(7,543

)

Endeavor Group Holdings

1-Day FEDEF + 0.30%

Monthly

BOFA

6/08/24

150,722

(634

)

Endesa SA

1-Day EONIA + 0.35%

Monthly

MSCS

1/13/25

345,244

EUR

3,922

Enea AB

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/24

30,813

209

Energy Transfer LP

1-Month LIBOR + 0.90%

Monthly

GSCO

1/26/24

47,218

(352

)

Energy Transfer LP

1-Month LIBOR + 0.90%

Monthly

GSCO

2/14/24

186,790

234

Energy Transfer LP

1-Month LIBOR + 0.50%

Monthly

CITI

10/18/24

106,565

(429

)

Engagesmart

1-Day FEDEF + 0.30%

Monthly

BOFA

11/22/24

141,422

(155

)

62 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Engie SA

1-Day EONIA + 0.30%

Monthly

MSCS

8/30/24

307,995

EUR

$

30,495

Engie SA

1-Day EONIA + 0.40%

Monthly

MSCO

9/25/24

2,170,147

EUR

88,784

Enovis

OBFR + 0.60%

Monthly

NOMU

10/27/24

967,792

(6,653

)

EnQuest PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/24

254,368

GBP

(79,357

)

Entain PLC

1-Day SONIA + 0.65%

Monthly

MSCO

2/08/24

385,717

GBP

(191,678

)

Entra ASA

1-Week NIBOR + 0.275%

Monthly

SEBA

11/21/24

823,256

NOK

1,505

Equals Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/20/24

36,806

GBP

2,728

Equinor ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/24

2,360,091

NOK

21,184

Ercros SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/24

183,523

EUR

(66,678

)

Ericsson

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

1,556,602

SEK

(17,933

)

Eurobio Scientific SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

61,561

EUR

(12,695

)

Eurocash

1-Day FEDEF + 1.25%

Monthly

MSCS

1/06/25

11,725

(515

)

Eurocommercial Properties NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

396,526

EUR

(7,464

)

Euronav

1-Day FEDEF + 0.20%

Monthly

BOFA

10/10/24

111,538

(501

)

Eurotelesites AG

Euro STR + 0.35%

Monthly

JPHQ

9/26/24

—

EUR

9,053

EVN AG

Euro STR + 0.35%

Monthly

JPHQ

3/18/24

103,612

EUR

12,228

EVS Broadcast Equipment SA

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

59,766

EUR

2,467

Expedia Group Inc.

1-Day FEDEF + 0.70%

Monthly

BOFA

7/12/24

450,703

(499

)

Exxon Mobil Corp.

1-Day FEDEF - 0.20%

Monthly

BOFA

7/24/24

444,042

—

Fabege AB

1-Week STIBOR + 0.275%

Monthly

SEBA

11/21/24

2,244,890

SEK

(4,177

)

Fagron NV

Euro STR

Monthly

JPHQ

8/19/24

220,283

EUR

6,898

Finnair OYJ

Euro STR + 0.275%

Monthly

SEBA

9/09/24

74,259

EUR

19,399

FirstEnergy Corp.

1-Day FEDEF + 0.20%

Monthly

BOFA

5/04/24

1,451,963

1,613

ForFarmers

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

96,188

EUR

(21,788

)

Forvia

1-Day EONIA + 0.30%

Monthly

MSCS

12/02/24

28,111

EUR

320

Foxtons Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

9/18/24

51,876

GBP

20,075

freenet AG

Euro STR + 0.35%

Monthly

JPHQ

8/08/24

197,957

EUR

39,526

Fuchs Petrolub SE

Euro STR + 0.35%

Monthly

JPHQ

4/25/24

171,162

EUR

4,596

Fugro NV

Euro STR + 0.35%

Monthly

JPHQ

5/27/24

242,802

EUR

44,490

Galliford Try Holdings PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

57,829

GBP

18,889

Gamma Communications PLC

1-Day SONIA + 0.35%

Monthly

MSCS

6/05/24

152,703

GBP

(6,392

)

b,cGazprom PJSC ADR

1-Day FEDEF

Monthly

MSCS

1/31/24

—

—

Genmab A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/24

2,225,975

DKK

(54,599

)

Geo Corrections

OBFR + 0.60%

Monthly

NOMU

9/21/24

1,715,173

(34,366

)

Georg Fischer AG

1-Day SARON + 0.35%

Monthly

JPHQ

3/25/24

125,938

CHF

(9,723

)

Gerresheimer AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

306,267

EUR

(56,611

)

Gestamp Automocion SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/24

433,511

EUR

(63,547

)

Glencore PLC

1-Day SONIA + 0.35%

Monthly

MSCS

3/07/24

57,302

GBP

(5,291

)

Glencore PLC

1-Day SONIA + 0.40%

Monthly

MSCS

8/19/24

549,769

GBP

(33,374

)

Global Fashion Group

Euro STR + 0.35%

Monthly

JPHQ

11/27/24

86,307

EUR

(56,640

)

Granges AB

1-Week STIBOR + 0.28%

Monthly

SEBA

9/02/24

2,165,224

SEK

19,030

Greencore Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

9/12/24

235,206

GBP

86,466

Greenhill & Co. Inc.

1-Day FEDEF + 0.30%

Monthly

BOFA

5/30/24

90,210

(404

)

Grieg Seafood ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/24

2,542,450

NOK

(38,381

)

Groupe SEB

1-Day EONIA + 0.30%

Monthly

MSCS

8/12/24

299,348

EUR

28,892

Grupo Catalana Occidente

1-Day EONIA + 0.35%

Monthly

MSCS

11/11/24

196,940

EUR

15,633

Guess? Inc.

SOFR + 3.50%

Monthly

GSCO

4/25/24

687,896

11,140

Gulf Keystone Petroleum Ltd.

1-Day SONIA + 0.25%

Monthly

MSCS

7/17/24

33,849

GBP

7,271

Gurit

1-Day SARON + 0.35%

Monthly

JPHQ

11/06/24

63,766

CHF

(2,333

)

H&M Hennes & Mauritz AB

1-Week STIBOR + 0.28%

Monthly

SEBA

8/15/24

2,758,086

SEK

3,224

H. Lundbeck A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

11/27/24

3,727,387

DKK

(26,199

)

Hammerson PLC

1-Day SABOR + 0.70%

Monthly

MSCS

11/27/24

213,222

GBP

22,272

HANZA AB

1-Week STIBOR + 0.28%

Monthly

SEBA

6/14/24

2,279,112

SEK

9,460

Hargreaves Lansdown PLC

1-Day SONIA + 0.35%

Monthly

MSCS

10/30/24

204,698

GBP

1,237

HAT Holdings I LLC

SOFR + 3.50%

Monthly

GSCO

3/21/24

704,268

16,625

franklintempleton.com Semiannual Report 63

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

HAT Holdings I LLC

SOFR + 3.50%

Monthly

GSCO

8/14/24

593,306

$

87,526

HeidelbergCement AG

1-Month EURIBOR + 0.40%

Monthly

JPHQ

7/17/24

379,964

EUR

78,679

Heijmans NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

333,556

EUR

58,027

Hess Corp.

1-Day FEDEF + 0.40%

Monthly

MSCO

11/22/24

560,346

(10,798

)

Hess Corp.

1-Day FEDEF + 0.15%

Monthly

BOFA

11/30/24

375,819

(27,230

)

HEXPOL AB

1-Week STIBOR + 0.28%

Monthly

SEBA

8/05/24

2,321,963

SEK

6,476

Hochtief AG

Euro STR + 0.35%

Monthly

JPHQ

3/18/24

131,350

EUR

29,605

Hoegh Autoliners AS

1-Week NIBOR + 0.275%

Monthly

SEBA

4/26/24

1,764,845

NOK

38,114

Hoist Finance AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/24

869,817

SEK

22,846

Holcim Ltd.

1-Day SARON + 0.35%

Monthly

JPHQ

5/09/24

265,055

CHF

27,780

Holly Energy Partners LP

1-Day FEDEF + 1.00%

Monthly

MSCO

9/27/24

114,408

(9,305

)

HORNBACH Holding AG & Co. KGaA

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

307,907

EUR

(63,727

)

Hugo Boss AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

354,541

EUR

5,607

Humble Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/27/24

438,911

SEK

3,561

Husqvarna AB

1-Week STIBOR + 0.275%

Monthly

SEBA

9/25/24

2,969,938

SEK

(5,193

)

HUUUGE Inc.

1-Day FEDEF + 1.25%

Monthly

MSCS

7/01/24

91,096

7,453

hVIVO PLC

1-Day SONIA + 0.35%

Monthly

MSCS

5/27/24

52,839

GBP

18,494

Iberdrola SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/26/24

96,092

EUR

2,516

Illimity Bank

Euro STR + 0.35%

Monthly

JPHQ

11/13/24

207,993

EUR

(4,117

)

Immobiliare Grande Distribuzione SIIQ SpA

1-Day EONIA + 0.30%

Monthly

JPHQ

7/17/24

109,449

EUR

1,659

Immunogen Inc.

1-Day FEDEF + 0.30%

Monthly

BOFA

12/01/24

169,930

36

Indra Sistemas SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/24

394,718

EUR

69,505

Indus-Holding AG

Euro STR + 0.35%

Monthly

JPHQ

10/11/24

54,793

EUR

1,585

Industria de Diseno Textil Inditex SA

1-Day EONIA + 0.35%

Monthly

MSCS

8/22/24

95,549

EUR

12,073

Industrivarden AB

1-Week STIBOR + 0.28%

Monthly

SEBA

8/15/24

4,401,474

SEK

40,391

Infineon Technologies AG

1-Day SARON + 0.35%

Monthly

JPHQ

5/30/24

311,652

EUR

18,060

ING Groep NV

Euro STR + 0.35%

Monthly

JPHQ

4/22/24

270,766

EUR

24,546

Integra Corp.

1-Day FEDEF + 0.20%

Monthly

BOFA

2/16/24

723,225

3,831

Intercos Group

Euro STR + 0.35%

Monthly

JPHQ

5/03/24

200,999

EUR

(15,477

)

International Consolidated Airlines Group SA

1-Day SONIA + 0.30%

Monthly

MSCS

5/27/24

303,928

GBP

(7,919

)

Intershop

1-Day SARON + 0.35%

Monthly

JPHQ

10/21/24

72,567

CHF

265

Intervest Offices & Warehouses

Euro STR + 0.30%

Monthly

BOFA

10/19/24

127,720

EUR

(458

)

Intesa Sanpaolo SpA

Euro STR + 0.35%

Monthly

JPHQ

4/22/24

142,610

EUR

13,988

Investec

1-Day SONIA + 0.35%

Monthly

MSCS

7/05/24

297,225

GBP

45,104

Inwido AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

3,430,401

SEK

58,951

Ionos Group SE

Euro STR + 0.35%

Monthly

JPHQ

11/06/24

44,825

EUR

142

IP Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

122,804

GBP

(19,376

)

Ipsen Pharma SAS

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

343,391

EUR

(29,823

)

Ironwood Pharmaceuticals Inc.

1-Day FEDEF + 0.70%

Monthly

BOFA

6/15/24

301,705

4,949

Italian Sea Group (The)

Euro STR + 0.35%

Monthly

JPHQ

6/17/24

205,267

EUR

6,298

Iveco

Euro STR + 0.35%

Monthly

JPHQ

11/28/24

395,123

EUR

(20,056

)

IWG PLC

1-Day SONIA + 0.35%

Monthly

MSCS

4/03/24

252,768

GBP

(31,917

)

J D Wetherspoon PLC

1-Day SONIA + 0.35%

Monthly

MSCS

5/10/24

324,234

GBP

(5,979

)

Jacquet Metals SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

31,735

EUR

6,006

JCDecaux SE

1-Day EONIA + 0.30%

Monthly

MSCS

11/07/24

103,402

EUR

3,619

JD Sports Fashion PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

296,021

GBP

40,276

Jenoptik AG

Euro STR + 0.35%

Monthly

JPHQ

8/19/24

182,689

EUR

(7,131

)

Jet2 PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/18/24

378,392

GBP

20,243

Johnson Service Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

6/07/24

244,662

GBP

61,632

JOST Werke SE

Euro STR + 0.35%

Monthly

JPHQ

7/05/24

204,418

EUR

(35,446

)

JSR Corp.

1-Day MUTSCALM + 0.50%

Monthly

MSCO

7/29/24

107,500,842

JPY

1,354

64 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Julius Baer

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

416,794

CHF

$

(109,704

)

Just Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/24

457,965

GBP

(19,765

)

Kap Industrial Holdings Ltd.

1-Day SABOR + 0.30%

Monthly

MSCS

7/17/24

3,268,919

ZAR

(55,089

)

Kaufman ET Broad

1-Day EONIA + 0.30%

Monthly

MSCS

12/02/24

5,534

EUR

(67

)

Kemira OYJ

1-Week Euro STR + 0.275%

Monthly

SEBA

7/17/24

306,985

EUR

(13,150

)

Kenmare Resources PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

100,842

GBP

(11,541

)

Kernel Holding SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/24

9,590

1,167

Kinepolis

Euro STR + 0.35%

Monthly

JPHQ

2/26/24

21,791

EUR

(768

)

Kitron ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/19/24

4,575,976

NOK

(41,975

)

Kitwave Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

8/09/24

57,734

GBP

(4,631

)

Klepierre SA

1-Day EONIA + 0.30%

Monthly

MSCS

8/08/24

178,504

EUR

10,687

Klockner & Co. SE

Euro STR + 0.35%

Monthly

JPHQ

6/10/24

127,995

EUR

(39,551

)

Knights Group Holdings PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/18/24

4,980

GBP

123

Koc Holding AS

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/24

279,442

59,251

Konecranes OYJ

Euro STR + 0.28%

Monthly

SEBA

11/22/24

511,985

EUR

34,566

Kongsberg Gruppen ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/24

1,823,471

NOK

4,131

Koninklijke Ahold Delhaize NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

267,927

EUR

(37,149

)

Koninklijke KPN NV

Euro STR + 0.35%

Monthly

JPHQ

10/11/24

157,855

EUR

(4,172

)

Koninklijke Philips NV

Euro STR + 0.35%

Monthly

JPHQ

8/26/24

231,877

EUR

(16,625

)

Krones AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

431,217

EUR

(5,360

)

La Francaise Des Jeux SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

202,304

EUR

6,332

Lancashire Holdings Ltd.

1-Day SONIA + 0.35%

Monthly

MSCS

2/19/24

217,262

GBP

23,447

Lar Espana Real Estate SOCIMI SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/24

81,608

EUR

20,945

Learning Technologies Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/01/24

225,409

GBP

(23,147

)

Leonteq AG

Euro STR + 0.35%

Monthly

JPHQ

7/15/24

288,091

CHF

(42,240

)

Lindab International AB

1-Week STIBOR + 0.275%

Monthly

SEBA

5/08/24

4,502,779

SEK

94,102

Liontrust Asset Management PLC

1-Day SONIA + 0.35%

Monthly

MSCS

6/03/24

164,328

GBP

(48,081

)

Livent Corp.

1-Day FEDEF + 0.70%

Monthly

BOFA

2/05/24

1,286,912

(6,568

)

Logista

1-Day EONIA + 0.35%

Monthly

MSCS

9/16/24

353,664

EUR

12,412

Loomis AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/15/24

5,535,765

SEK

(84,038

)

LPP

1-Day FEDEF + 1.25%

Monthly

MSCS

10/10/24

129,649

30,002

Lumentum Holdings

1-Day FEDEF + 0.70%

Monthly

BOFA

2/08/24

652,319

1,406

Lundbergs AB

1-Week STIBOR + 0.275%

Monthly

SEBA

9/19/24

1,632,332

SEK

13,702

M.P. Evans Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

12,677

GBP

(2,063

)

Maire Tecnimont SpA

Euro STR + 0.35%

Monthly

JPHQ

8/14/24

307,105

EUR

43,630

Man Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/15/24

241,505

GBP

(13,614

)

Marks & Spencer Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

315,497

GBP

104,268

Marriott Vacations Worldwide Corp.

OBFR + 0.60%

Monthly

NOMU

9/01/24

800,037

(9

)

Matas A/S

1-Week CIBOR + 0.275%

Monthly

SEBA

11/11/24

913,767

DKK

3,398

Mavi Giyim Sanayi Ve Ticaret AS

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/24

78,312

12,691

Media and Games Invest SE

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

764,541

SEK

(19,625

)

Medios AG

Euro STR + 0.35%

Monthly

JPHQ

11/01/24

54,299

EUR

4,966

Meier Tobler Group AG

1-Day SARON + 0.35%

Monthly

JPHQ

5/09/24

129,911

CHF

(18,210

)

Mensch und Maschine Software SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

89,849

EUR

8,254

Mersen

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

201,522

EUR

(33,523

)

Metropole TV

1-Day EONIA + 0.30%

Monthly

MSCS

12/02/24

10,886

EUR

167

MFE

Euro STR + 0.35%

Monthly

JPHQ

11/27/24

367,849

EUR

15,700

Microstrategy

SOFR + 0.35%

Monthly

GSCO

9/12/24

1,080,508

95,416

Migros Ticaret

1-Day FEDEF + 0.30%

Monthly

MSCS

9/09/24

2,304

1,192

Mirbud

1-Day FEDEF + 1.25%

Monthly

MSCS

11/28/24

12,513

(1,153

)

Mitchells & Butlers PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/27/24

178,898

GBP

6,772

Mitie Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

326,937

GBP

47,055

franklintempleton.com Semiannual Report 65

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Modern Times Group MTG AB

1-Week STIBOR + 0.275%

Monthly

SEBA

5/08/24

4,581,988

SEK

$

52,322

Momentum Metropolitan Holdings Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

6/12/24

9,000,063

ZAR

35,660

Moneysupermarket.com

1-Day SONIA + 0.35%

Monthly

MSCS

2/27/24

304,937

GBP

31,058

Montea NV

Euro STR + 0.35%

Monthly

JPHQ

6/05/24

305,932

EUR

24,277

Morgan Sindall Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

308,170

GBP

38,880

MPC Container Ships ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/24

2,115,312

NOK

(47,438

)

MTN Group Ltd.

1-Day SABOR + 0.32%

Monthly

MSCS

7/15/24

3,133,248

ZAR

(20,308

)

Musti Group PLC

Euro STR + 0.275%

Monthly

SEBA

11/29/24

5,330

EUR

1,830

Mycronic AB

1-Week STIBOR + 0.275%

Monthly

SEBA

3/08/24

993,084

SEK

4,308

Natera Inc.

SOFR + 3.50%

Monthly

GSCO

5/03/24

119,947

31,644

National Western Life Insurance

1-Day FEDEF + 0.30%

Monthly

BOFA

10/26/24

254,204

(960

)

NCC AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

3,900,715

SEK

77,403

NCL Corp. Ltd.

1-Day FEDEF + 0.70%

Monthly

BOFA

7/11/24

321,172

(2,156

)

Neinor Homes SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/17/24

142,209

EUR

(4,377

)

NEPI Rockcastle NV

1-Day SABOR + 0.70%

Monthly

MSCS

11/18/24

9,019,137

ZAR

38,705

Netcare Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

10/02/24

7,142,593

ZAR

(10,849

)

Network International Holdings PLC

1-Day SONIA + 0.65%

Monthly

MSCS

4/24/24

395,613

GBP

20,935

NEUCA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/24

192

17

Nexans

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

334,057

EUR

(31,841

)

Next Fifteen Communications Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

119,285

GBP

18,379

Nilfisk Holding A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/12/24

695,690

DKK

(17,533

)

NKT A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

11/27/24

2,402,144

DKK

55,387

NN Group NV

Euro STR + 0.35%

Monthly

JPHQ

7/15/24

477,973

EUR

798

Nokia Corp.

Euro STR + 0.28%

Monthly

SEBA

7/17/24

114,066

EUR

(27,509

)

Noram Drilling AS

1-Week NIBOR + 0.275%

Monthly

SEBA

9/20/24

712,979

NOK

(9,784

)

Nordea Bank ABP

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

2,257,668

SEK

5,211

Nordic Paper Holding AB

1-Week STIBOR + 0.28%

Monthly

SEBA

8/15/24

1,040,401

SEK

30,694

Norsk Hydro ASA

1-Week NIBOR + 0.275%

Monthly

SEBA

4/08/24

1,739,348

NOK

(13,606

)

Northern Oil And Gas Inc.

SOFR + 0.35%

Monthly

GSCO

3/16/24

721,424

(13,136

)

Norwegian Air Shuttle ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/19/24

3,350,712

NOK

5,665

Novartis AG

1-Day SARON + 0.35%

Monthly

JPHQ

4/22/24

430,296

CHF

(24,682

)

Novo Nordisk A/S-B

1-Week CIBOR + 0.275%

Monthly

SEBA

7/17/24

2,866,719

DKK

96,273

NuVasive Inc.

SOFR + 3.50%

Monthly

GSCO

5/02/24

1,260,396

39,233

NWS Holdings Ltd.

1-Day HONIX + 0.55%

Monthly

MSCO

7/29/24

3,469,112

HKD

(91,286

)

Odfjell Technology Ltd.

1-Week NIBOR + 0.28%

Monthly

SEBA

7/18/24

1,333,357

NOK

(2,801

)

Okea ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/24

3,938,422

NOK

49,265

Olvi PLC

Euro STR + 0.275%

Monthly

SEBA

11/29/24

1,395

EUR

6

Omnia Holdings Ltd.

1-Day SABOR + 0.31%

Monthly

MSCS

7/17/24

1,824,067

ZAR

276

On The Beach Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

245,154

GBP

(52,153

)

Ontex Group NV

Euro STR + 0.35%

Monthly

JPHQ

11/27/24

73,887

EUR

1,586

Orange Polska SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/24

267,721

41,155

Orchard Therapeutics ADR

1-Day FEDEF + 0.20%

Monthly

BOFA

10/11/24

150,753

(671

)

Oriola Corp.

Euro STR + 0.28%

Monthly

SEBA

7/17/24

51,229

EUR

(15,299

)

ORIOR AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

167,895

CHF

(4,138

)

Orkla ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

8/28/24

2,730,398

NOK

(5,821

)

OSB Group

1-Day SONIA + 0.35%

Monthly

MSCS

9/12/24

159,811

GBP

20,952

Osram Licht AG

1-Day SARON + 0.35%

Monthly

JPHQ

11/27/24

426,747

CHF

(308,757

)

Outokumpu OYJ

Euro STR + 0.28%

Monthly

SEBA

7/25/24

290,026

EUR

(40,869

)

OVS SpA

Euro STR + 0.35%

Monthly

JPHQ

7/26/24

626,701

EUR

(100,754

)

Pacwest Bancorp

1-Day FEDEF + 0.15%

Monthly

BOFA

10/26/24

199,810

(851

)

Pagegroup PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

193,215

GBP

6,046

Pandora A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/15/24

874,789

DKK

33,259

Pandox AB

1-Week STIBOR + 0.28%

Monthly

SEBA

11/01/24

1,672,877

SEK

(1,507

)

66 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Panoro Energy ASA

1-Week NIBOR + 0.275%

Monthly

SEBA

10/30/24

1,558,427

NOK

$

(814

)

Paragon Banking Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

2/01/24

409,070

GBP

(42,890

)

Parsons Corp.

1-Day FEDEF + 0.70%

Monthly

BOFA

2/09/24

1,029,630

(2,701

)

Patrick Industries Inc.

SOFR + 3.50%

Monthly

GSCO

4/03/24

917,337

42,005

Paypoint

1-Day SONIA + 0.35%

Monthly

MSCS

9/23/24

128,671

GBP

(17,665

)

Per Aarsleff Holding A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/24

637,668

DKK

3,867

Peugeot Invest SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

19,231

EUR

(495

)

Pexip Holding

1-Week NIBOR + 0.28%

Monthly

SEBA

11/27/24

345,069

NOK

1,473

PGE Polska Grupa Energetyczna SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/15/24

311,806

76,390

Piaggio & C. SpA

Euro STR + 0.35%

Monthly

JPHQ

4/22/24

218,013

EUR

(62,775

)

Pioneer National Resource

1-Day FEDEF + 0.30%

Monthly

BOFA

10/12/24

430,850

4,076

Pioneer Natural Resources Co.

1-Day FEDEF + 0.40%

Monthly

MSCO

10/14/24

768,975

(23,385

)

PKN Orlen

1-Day FEDEF + 0.30%

Monthly

MSCS

11/20/24

100,952

7,404

Playtech PLC

1-Day SONIA + 0.35%

Monthly

MSCS

5/10/24

570,743

GBP

(200,465

)

Plus500 Ltd.

1-Day SONIA + 0.35%

Monthly

MSCS

7/12/24

242,850

GBP

(6,958

)

Point Biopharma Global Inc.

1-Day FEDEF + 0.30%

Monthly

BOFA

10/27/24

42,160

(172

)

PORR AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

145,623

EUR

(5,454

)

Post Holdings Inc.

SOFR + 0.35%

Monthly

GSCO

3/02/24

663,803

26,772

Poste Italiane SpA

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

259,417

EUR

(4,439

)

PPC Ltd.

1-Day SABOR + 0.32%

Monthly

MSCS

7/17/24

698,889

ZAR

11,861

Premier Foods PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

91,528

GBP

2,840

Prevas AB

1-Week STIBOR + 0.275%

Monthly

SEBA

10/03/24

618,602

SEK

14,593

Progress Software Corp.

1-Day FEDEF + 0.70%

Monthly

BOFA

2/05/24

884,678

8,239

Prosegur

1-Day EONIA + 0.35%

Monthly

MSCS

9/26/24

38,743

EUR

7,473

Prysmian SpA

Euro STR + 0.35%

Monthly

JPHQ

8/22/24

109,522

EUR

(5,864

)

Publicis Groupe SA

1-Day EONIA + 0.30%

Monthly

MSCS

8/30/24

236,089

EUR

16,062

Puuilo PLC

1-Week Euro STR + 0.275%

Monthly

SEBA

4/22/24

140,500

EUR

32,393

PZU SA

1-Day FEDEF + 1.25%

Monthly

MSCS

3/04/24

131,431

3,578

QIAGEN NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

204,221

EUR

(19,915

)

Quadient

1-Day EONIA + 0.30%

Monthly

MSCS

11/27/24

78,853

EUR

9,726

Quilter PLC

1-Day SABOR + 0.70%

Monthly

MSCS

7/25/24

4,281,473

ZAR

39,912

Rai Way SpA

Euro STR + 0.35%

Monthly

JPHQ

8/12/24

208,469

EUR

(9,387

)

Raiffeisen Bank International AG

Euro STR + 0.35%

Monthly

JPHQ

11/28/24

54,472

EUR

(5

)

Rainbow

1-Day FEDEF + 1.25%

Monthly

MSCS

11/28/24

5,460

(41

)

Renew Holdings PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

149,401

GBP

32,339

Repsol SA

1-Day EONIA + 0.35%

Monthly

MSCS

7/12/24

211,017

EUR

8,133

Retail Estates NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

217,469

EUR

2,409

Reunert Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

8/15/24

2,967,460

ZAR

3,559

Rexel

1-Day EONIA + 0.30%

Monthly

MSCS

7/15/24

315,946

EUR

28,220

Richemont

1-Day SARON + 0.35%

Monthly

JPHQ

7/31/24

234,096

CHF

(42,621

)

Roche

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

547,397

CHF

(143,857

)

Rockwool A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/24

3,293,494

DKK

52,559

Royal Caribbean Cruise

SOFR + 0.65%

Monthly

GSCO

3/08/24

3,207,406

(40,705

)

Royal Vopak NV

Euro STR + 0.35%

Monthly

JPHQ

8/14/24

205,393

EUR

(11,574

)

Rubis

1-Day EONIA + 0.30%

Monthly

MSCS

8/12/24

322,806

EUR

7,309

SA Corporate Real Estate Ltd.

1-Day SABOR + 0.34%

Monthly

MSCS

7/17/24

1,948,276

ZAR

1,640

Saab AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

1,559,883

SEK

(14,691

)

Saint-Gobain SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

272,132

EUR

46,457

Sanlorenzo

Euro STR + 0.35%

Monthly

JPHQ

8/26/24

312,978

EUR

4,553

Sappi Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

11/27/24

10,791,615

ZAR

(68,121

)

Sarepta Therapeutics Inc.

1-Day FEDEF + 0.70%

Monthly

BOFA

4/20/24

542,313

(19,962

)

Sasol Ltd.

1-Day SABOR + 0.33%

Monthly

MSCS

7/17/24

4,713,314

ZAR

(34,011

)

Scandi Standard AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

2,115,951

SEK

20,584

Scanfil PLC

Euro STR + 0.275%

Monthly

SEBA

10/17/24

51,195

EUR

3,000

franklintempleton.com Semiannual Report 67

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Schindler

1-Day SARON + 0.35%

Monthly

JPHQ

11/29/24

369,985

CHF

$

3,127

SCOR SE

1-Day EONIA + 0.30%

Monthly

MSCS

8/12/24

411,243

EUR

5,037

Scout24 SE

Euro STR + 0.35%

Monthly

JPHQ

12/06/24

228,459

EUR

27,641

Serco Group

1-Day SONIA + 0.35%

Monthly

MSCS

9/30/24

329,223

GBP

29,228

Serica Energy PLC

SONIA + 0.35%

Monthly

MSCS

6/03/24

175,149

GBP

(9,459

)

Severfield PLC

1-Day SONIA + 0.35%

Monthly

MSCS

9/27/24

27,887

GBP

(1,598

)

SHELL PLC

1-Day SONIA + 0.40%

Monthly

MSCS

5/03/24

1,180,282

GBP

(30,429

)

Siegfried

1-Day SARON + 0.35%

Monthly

JPHQ

11/11/24

449,585

CHF

49,943

Siemens Energy AG

Euro STR + 0.35%

Monthly

MSCS

3/01/24

2,038,030

EUR

(57,235

)

Siemens Energy AG

Euro STR + 0.35%

Monthly

JPHQ

12/06/24

105,353

EUR

8,041

Signify NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

339,657

EUR

(15,349

)

SII

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

155,054

EUR

9,893

SIPEF

Euro STR + 0.35%

Monthly

JPHQ

7/15/24

43,670

EUR

(4,601

)

Sirius Real Estate Ltd.

1-Day SONIA + 0.35%

Monthly

MSCS

7/22/24

320,655

GBP

19,311

Sirius XM Holdings

1-Day FEDEF + 0.30%

Monthly

BOFA

11/08/24

24,804

(86

)

Skan

1-Day SARON + 0.35%

Monthly

JPHQ

9/26/24

177,025

CHF

21,066

SKF AB

1-Week STIBOR + 0.275%

Monthly

SEBA

3/25/24

4,345,234

SEK

10,797

SMA Solar Technology AG

Euro STR + 0.35%

Monthly

JPHQ

9/12/24

302,675

EUR

(45,825

)

SMCP SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

236,235

EUR

(87,782

)

Smurfit Kappa Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

268,166

GBP

29,977

Smurfit Kappa Group PLC

1-Day EONIA + 0.65%

Monthly

MSCO

9/20/24

80,496

EUR

2,597

Societe Generale SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

286,472

EUR

5,184

Sogefi

Euro STR + 0.35%

Monthly

JPHQ

11/14/24

54,944

EUR

(1,839

)

Sogefi

Euro STR + 0.35%

Monthly

JPHQ

11/27/24

5,483

EUR

(146

)

Solar A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/15/24

797,166

DKK

(23,033

)

Solvay

Euro STR + 0.35%

Monthly

JPHQ

10/10/24

189,423

EUR

4,436

Sopra Steria Group SA

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

321,441

EUR

12,999

Southwest Airlines Co.

SOFR + 0.35%

Monthly

GSCO

3/16/24

161,372

(619

)

Spar Nord Bank A/S

1-Week CIBOR + 0.275%

Monthly

SEBA

4/22/24

1,975,536

DKK

(17,564

)

Speedy Hire PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

123,426

GBP

(30,602

)

Spirit Aerosystems

OBFR + 0.60%

Monthly

NOMU

11/14/24

440,685

(1,185

)

Splunk

1-Day FEDEF + 0.30%

Monthly

BOFA

9/22/24

348,589

25,866

Splunk

OBFR + 0.60%

Monthly

NOMU

9/22/24

207,211

(2,873

)

SSAB AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

2,391,002

SEK

24,420

Stabilus SE

Euro STR + 0.35%

Monthly

JPHQ

3/20/24

187,377

EUR

(2,338

)

Stadler Rail AG

Euro STR + 0.35%

Monthly

JPHQ

7/31/24

207,770

CHF

4,905

Standard Chartered PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

154,262

GBP

2,274

Starwood Property Trust

OBFR + 0.60%

Monthly

NOMU

11/06/24

901,600

(28,485

)

STEF

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

40,446

EUR

3,125

Stellantis NV

Euro STR + 0.35%

Monthly

JPHQ

7/12/24

461,409

EUR

121,548

SThree PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/12/24

289,005

GBP

25,464

STMicroelectronic NV

Euro STR

Monthly

JPHQ

2/28/24

166,281

EUR

15,108

Stolt-Nielsen Ltd.

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/24

1,635,206

NOK

6,984

STRABAG SE

Euro STR + 0.35%

Monthly

JPHQ

7/12/24

298,456

EUR

(7,422

)

Sulzer Ltd.

1-Day SARON + 0.35%

Monthly

JPHQ

11/11/24

441,342

CHF

13,638

Sun International Hotels Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

5/20/24

2,067,054

ZAR

3,404

Super Group Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

7/15/24

3,751,170

ZAR

(29,078

)

Surgical Science Sweden AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/25/24

1,140,387

SEK

6,888

SUSS MicroTec SE

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

315,781

EUR

63,295

Swatch Group Ltd.

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/24

321,392

CHF

(43,238

)

Swiss Life Holding AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/24

162,018

CHF

(3,950

)

Swiss Re AG

1-Day SARON

Monthly

JPHQ

7/17/24

278,105

CHF

52,199

Sydbank A/S

1-Week CIBOR + 0.28%

Monthly

SEBA

7/17/24

1,919,717

DKK

(6,285

)

Sylvania Platinum Ltd.

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

159,451

GBP

(30,718

)

Synektik

1-Day FEDEF + 1.25%

Monthly

MSCS

9/05/24

59,392

20,356

68 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

TAKKT AG

Euro STR + 0.35%

Monthly

JPHQ

6/10/24

61,489

EUR

$

(4,197

)

Talanx AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

120,666

EUR

55,477

Taro Pharmaceutical Industries Ltd.

1-Day FEDEF + 0.30%

Monthly

BOFA

7/10/24

33,408

(143

)

Tauron Polska Energia SA

1-Day FEDEF + 0.30%

Monthly

MSCS

7/17/24

157,808

11,297

TBC Bank Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

194,057

GBP

89,626

TeamViewer AG

Euro STR + 0.35%

Monthly

JPHQ

8/01/24

419,484

EUR

(31,685

)

Team Internet Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

280,943

GBP

(12,367

)

Tecan Group AG

1-Day SARON + 0.35%

Monthly

JPHQ

5/09/24

251,025

CHF

(25,248

)

Technogym SpA

Euro STR + 0.35%

Monthly

JPHQ

8/12/24

347,598

EUR

11,959

Telecom Plus PLC

1-Day SONIA + 0.35%

Monthly

MSCS

9/06/24

316,459

GBP

(21,576

)

Telenor ASA

1-Week NIBOR + 0.275%

Monthly

SEBA

10/28/24

1,226,484

NOK

365

Telkom SA SOC Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

7/17/24

4,353,689

ZAR

17,061

Ten Square Games

1-Day FEDEF + 1.25%

Monthly

MSCS

1/06/25

98,282

15,397

Terveystalo PLC

Euro STR + 0.28%

Monthly

SEBA

7/17/24

120,093

EUR

(13,341

)

Tesco PLC

1-Day SONIA + 0.35%

Monthly

MSCS

5/03/24

122,029

GBP

13,302

TF1 Group

1-Day EONIA + 0.30%

Monthly

MSCS

7/12/24

446,145

EUR

(20,585

)

Tharisa PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

47,396

GBP

(22,556

)

Thungela Resources Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

8/23/24

3,520,009

ZAR

(89,060

)

ThyssenKrupp AG

Euro STR + 0.35%

Monthly

JPHQ

11/27/24

281,891

EUR

(3,904

)

Titan Cement

Euro STR + 0.35%

Monthly

JPHQ

9/05/24

85,082

EUR

13,344

Tobii AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/31/24

654,905

SEK

(36,075

)

Tokmanni Group OYJ

Euro STR + 0.28%

Monthly

SEBA

8/15/24

216,544

EUR

(9,800

)

Torunlar GYO

1-Day FEDEF + 1.25%

Monthly

MSCS

7/12/24

241,861

77,539

Transocean

OBFR

Monthly

NOMU

10/12/24

1,421,448

(7,228

)

Transtema Group AB

1-Week STIBOR + 0.28%

Monthly

SEBA

7/17/24

528,873

SEK

(26,104

)

Traton SE INH O.N.

Euro STR + 0.35%

Monthly

JPHQ

9/12/24

156,399

EUR

7,287

Trigano

1-Day EONIA + 0.30%

Monthly

MSCS

9/23/24

103,914

EUR

11,447

Tritax Big Box REIT PLC

1-Day SONIA + 0.35%

Monthly

MSCS

8/19/24

214,875

GBP

32,325

Equity Value

Fixed (0.19)%

Monthly

DBAB

6/28/24

5,625,678

—

Equity Value

Fixed (0.19)%

Monthly

DBAB

6/28/24

7,600,335

—

Equity Low Beta

Fixed (0.19)%

Monthly

DBAB

6/28/24

1,465,134

—

Equity Low Beta

Fixed (0.19)%

Monthly

DBAB

6/28/24

1,978,667

—

Equity Momentum

Fixed (0.19)%

Monthly

DBAB

6/28/24

3,025,555

—

Equity Momentum

Fixed (0.19)%

Monthly

DBAB

6/28/24

4,087,852

—

Equity Flows

Fixed 0.10%

Monthly

JPHQ

6/28/24

1,209,067

(86

)

Equity Flows

Fixed 0.10%

Monthly

JPHQ

6/28/24

896,496

(64

)

Tubacex SA

1-Day EONIA + 0.35%

Monthly

MSCS

8/26/24

70,994

EUR

12,025

U.S. Steel Corp.

1-Day FEDEF + 0.30%

Monthly

BOFA

2/23/24

133,548

—

u-blox AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/24

374,655

CHF

(44,053

)

UBS Group AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/17/24

91,458

CHF

25,404

UniCredit SpA

Euro STR + 0.35%

Monthly

JPHQ

9/25/24

383,414

EUR

38,167

Unipol Gruppo SpA

Euro STR + 0.35%

Monthly

JPHQ

7/15/24

453,226

EUR

26,965

Vail Resorts Inc.

SOFR + 3.50%

Monthly

GSCO

5/03/24

26,729

(115

)

Vaisala Corp.

Euro STR + 0.28%

Monthly

SEBA

7/17/24

7,036

EUR

165

Valeo

1-Day EONIA + 0.30%

Monthly

MSCS

10/09/24

182,407

EUR

(1,675

)

Valiant

Euro STR + 0.35%

Monthly

JPHQ

7/12/24

308,313

CHF

(25,033

)

Var Energi ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

10/23/24

3,336,589

NOK

71,393

Varex Imaging Corp.

1-Day FEDEF + 0.70%

Monthly

BOFA

4/21/24

1,822,182

10,906

Vastned Retail NV

Euro STR + 0.35%

Monthly

JPHQ

11/27/24

18,686

EUR

(110

)

Veidekke

1-Week NIBOR + 0.28%

Monthly

SEBA

8/26/24

1,810,285

NOK

(10,449

)

Veolia Environnement SA

1-Day EONIA + 0.40%

Monthly

MSCS

6/03/24

3,687,733

EUR

191,794

Veolia Environnement SA

1-Day EONIA + 0.30%

Monthly

MSCS

8/26/24

184,778

EUR

6,574

Veradigm Inc.

1-Day FEDEF + 0.70%

Monthly

BOFA

2/08/24

847,617

(5,450

)

Verallia

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

307,680

EUR

3,843

franklintempleton.com Semiannual Report 69

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Longa (continued)

Vertu Motors PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

118,103

GBP

$

63,692

Vesuvius PLC

1-Day SONIA + 0.35%

Monthly

MSCS

4/26/24

297,240

GBP

18,481

Vetropack

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

96,084

CHF

(2,611

)

Vicat SA

1-Day EONIA + 0.30%

Monthly

MSCS

8/30/24

100,926

EUR

7,293

Virgin Money PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

157,402

GBP

(6,224

)

Vitrolife AB

1-Week STIBOR + 0.275%

Monthly

SEBA

3/08/24

2,199,239

SEK

14,065

Vodafone Group PLC

1-Day SONIA + 0.65%

Monthly

MSCO

2/08/24

680,088

GBP

(346,815

)

Voestalpine AG

Euro STR + 0.35%

Monthly

JPHQ

12/18/24

102,307

EUR

(5,687

)

Volex PLC

1-Day SONIA + 0.35%

Monthly

MSCS

11/18/24

21,013

GBP

51

VZ Holding AG

1-Day SARON + 0.35%

Monthly

JPHQ

7/31/24

79,134

CHF

14,361

Wallenius Wilhelmsen ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/24

251,424

NOK

(194

)

Wartsila Corp.

Euro STR + 0.275%

Monthly

SEBA

10/17/24

187,052

EUR

45,209

Watkin Jones PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

385,231

GBP

(316,036

)

Wayfair Inc.

1-Day FEDEF + 0.70%

Monthly

BOFA

5/11/24

1,117,945

3,571

Webuild SpA

Euro STR

Monthly

JPHQ

7/17/24

236,238

EUR

25,147

Weibo Corp. ADR

OBFR

Monthly

NOMU

12/01/24

129,063

(4,063

)

Wereldhave NV

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

174,482

EUR

17,793

Wickes Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

7/17/24

289,807

GBP

(50,751

)

Wienerberger AG

Euro STR + 0.35%

Monthly

JPHQ

10/10/24

233,622

EUR

2,246

Wolfspeed Inc.

SOFR + 0.35%

Monthly

GSCO

3/01/24

195,426

(772

)

Woolworths Holdings Ltd.

1-Day SABOR + 0.70%

Monthly

MSCS

5/20/24

2,328,502

ZAR

(7,144

)

Workspace Group PLC

1-Day SONIA + 0.35%

Monthly

MSCS

10/28/24

67,976

GBP

5,386

X Fab Silicon Foundries EV

1-Day EONIA + 0.30%

Monthly

MSCS

7/17/24

212,617

EUR

5,485

XTB

1-Day FEDEF + 1.25%

Monthly

MSCS

12/16/24

377,224

(29,845

)

Yara International ASA

1-Week NIBOR + 0.28%

Monthly

SEBA

7/17/24

1,474,210

NOK

(22,882

)

YouGov

1-Day SONIA + 0.35%

Monthly

MSCS

10/28/24

183,152

GBP

51,547

Zalando SE

Euro STR

Monthly

JPHQ

3/01/24

495,592

EUR

(92,039

)

Zehnder

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

395,787

CHF

(80,997

)

Ziff Davis

1-Day FEDEF + 0.70%

Monthly

BOFA

3/08/24

1,132,304

1,213

Zumtobel Group AG

Euro STR + 0.35%

Monthly

JPHQ

7/17/24

36,298

EUR

(2,105

)

(155,986

)

Foreign Exchange Rate Contracts – Longa

FX G10 Carry

Fixed 0.00%

Monthly

CITI

6/28/24

2,665,150

—

FX G10 Carry

Fixed 0.00%

Monthly

CITI

6/28/24

3,600,022

—

FX G10 Value

Fixed 0.03%

Monthly

CITI

6/28/24

13,752,939

(332

)

FX G10 Value

Fixed 0.03%

Monthly

CITI

6/28/24

10,181,362

(245

)

(577

)

Interest Rate Contracts – Longa

Cross Asset Trend

Fixed (0.50)%

Monthly

DBAB

6/28/24

6,279,529

—

Cross Asset Trend

Fixed (0.50)%

Monthly

DBAB

6/28/24

4,648,811

—

—

Equity Contracts – Shortd

888 Holdings PLC

1-Day SONIA - 0.30%

Monthly

MSCS

10/21/24

136,881

GBP

24,917

AB Dynamics PLC

1-Day SONIA - 1.25%

Monthly

MSCS

7/18/24

119,053

GBP

(29,344

)

abrdn European Logistics Income PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

129,330

GBP

33,211

Accesso Technology Group

1-Day SONIA - 2.75%

Monthly

MSCS

9/27/24

29,154

GBP

3,841

Acciona S.A.

1-Day EONIA - 0.35%

Monthly

MSCS

11/13/24

27,269

EUR

(594

)

ACEA

Euro STR - 0.30%

Monthly

JPHQ

10/14/24

485,708

EUR

(28,454

)

Ackermans & van Haaren

Euro STR - 0.30%

Monthly

JPHQ

3/18/24

418,621

EUR

(29,650

)

Addnode Group AB

1-Week STIBOR -0.275%

Monthly

SEBA

7/17/24

1,165,068

SEK

1,644

adesso SE

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

179,590

EUR

24,053

Adidas AG

Euro STR - 0.30%

Monthly

JPHQ

8/21/24

283,946

EUR

(57,200

)

70 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

Admiral Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

372,587

GBP

$

(121,099

)

Aedifica

Euro STR - 0.30%

Monthly

JPHQ

10/28/24

79,682

EUR

(16,022

)

Aena S.M.E. S.A.

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/24

228,171

EUR

(27,848

)

AF Gruppen ASA

1-Week NIBOR - 0.275%

Monthly

SEBA

10/07/24

586,075

NOK

445

Agilyx

1-Week NIBOR - 4.25%

Monthly

SEBA

8/07/24

426,990

NOK

10,747

Aker BP ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/17/24

2,658,044

NOK

(5,341

)

Aker Carbon Capture ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/14/24

3,211,159

NOK

58,946

Aker Horizons

1-Week NIBOR - 4.25%

Monthly

SEBA

11/22/24

786,216

NOK

21,948

ALD

1-Day EONIA - 0.30%

Monthly

MSCS

5/15/24

358,199

EUR

115,313

Alfen NV

Euro STR - 0.80%

Monthly

JPHQ

3/07/24

407,411

EUR

72,123

Allegro

1-Day FEDEF - 2.13%

Monthly

MSCS

7/12/24

118,744

1,713

Allfunds Group PLC

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

245,271

EUR

(11,215

)

Allreal Holding AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/24

153,985

CHF

9,791

Alm. Brand A/S

1-Week CIBOR - 0.75%

Monthly

SEBA

7/26/24

2,728,127

DKK

22,771

Almirall SA

1-Day EONIA - 0.35%

Monthly

MSCS

10/11/24

338,495

EUR

2,295

Alphawave IP Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

3/22/24

231,603

GBP

7,661

Anglo American

1-Day SONIA - 0.30%

Monthly

MSCS

10/14/24

128,609

GBP

8,117

Anglo American Platinum Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

8/15/24

2,457,358

ZAR

(22,297

)

Anheuser-Busch InBev SA/NV

Euro STR - 0.30%

Monthly

JPHQ

7/13/24

264,401

EUR

(20,860

)

Antares Vision

Euro STR - 2.65%

Monthly

JPHQ

8/07/24

9,826

EUR

3,077

Antofagasta PLC

1-Day SONIA - 0.30%

Monthly

MSCS

2/15/24

213,497

GBP

27,262

Arbonia AG

1-Day SARON - 0.35%

Monthly

JPHQ

11/08/24

304,641

CHF

79,982

Arcadis

Euro STR - 0.30%

Monthly

JPHQ

4/04/24

313,230

EUR

(65,751

)

Arcelik

1-Day FEDEF - 5.00%

Monthly

MSCS

7/17/24

133,760

(33,431

)

Argan SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/24

150,312

EUR

(16,915

)

argenx SE

Euro STR - 0.30%

Monthly

JPHQ

7/01/24

138,250

EUR

(12,972

)

Ariston Holding

Euro STR - 0.30%

Monthly

JPHQ

9/11/24

273,761

EUR

22,959

Ascential PLC

1-Day SONIA -0.30%

Monthly

MSCS

7/17/24

239,829

GBP

(84,557

)

Ascopiave SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

72,550

EUR

3,810

Aselsan AS

1-Day FEDEF - 7.50%

Monthly

MSCS

7/17/24

93,091

(157,483

)

Assa Abloy AB

1-Week STIBOR - 0.28%

Monthly

SEBA

11/27/24

2,880,969

SEK

(24,841

)

Assura PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/31/24

234,423

GBP

10,178

Astral Foods Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

8/12/24

6,892,194

ZAR

4,900

Auction Technology Group

1-Day SONIA - 0.30%

Monthly

MSCS

11/01/24

145,274

GBP

34,641

AUTO1 Group SE

Euro STR - 0.75%

Monthly

JPHQ

7/14/24

288,239

EUR

57,550

Aviva

1-Day SONIA - 0.30%

Monthly

MSCS

9/23/24

53,292

GBP

(3,396

)

Avon Protection PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

75,893

GBP

5,395

Azelis Holding SA

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

408,304

EUR

(66,560

)

Bachem AG

Euro STR - 0.35%

Monthly

JPHQ

7/17/24

227,668

CHF

54,019

Banc of California

1-Day FEDEF - 0.20%

Monthly

BOFA

10/26/24

201,236

807

Banca Monte Paschi Siena

Euro STR - 0.25%

Monthly

JPHQ

9/11/24

156,127

EUR

(50,135

)

Banca Sistema SpA

Euro STR - 3.75%

Monthly

JPHQ

7/17/24

41,830

EUR

(1,028

)

Bank of America MLEIAPRE Index

EONIA - 0.30%

Monthly

BOFA

3/21/24

131,772

EUR

(18,191

)

Banque Cantonale Vaudoise

Euro STR - 0.35%

Monthly

JPHQ

7/12/24

438,274

CHF

(76,488

)

Barry Callebaut

1-Day SARON - 0.35%

Monthly

JPHQ

11/13/24

126,408

CHF

(351

)

Basic-Fit

Euro STR - 1.75%

Monthly

JPHQ

7/14/24

92,718

EUR

19,244

Basler AG

Euro STR - 1.20%

Monthly

JPHQ

7/17/24

62,026

EUR

(11,379

)

BAWAG Group AG

Euro STR - 0.30%

Monthly

JPHQ

10/23/24

165,766

EUR

(22,124

)

BayWa AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

218,333

EUR

63,552

Befesa SA

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

419,349

EUR

45,226

Beijer Ref AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/24

6,353,640

SEK

78,273

Belimo Holding AG

Euro STR - 0.35%

Monthly

JPHQ

7/17/24

278,763

CHF

(8,760

)

Big Yellow Group

1-Day SONIA - 0.30%

Monthly

MSCS

10/16/24

183,449

GBP

(26,791

)

Bilia AB Ser. A

1-Week STIBOR - 0.275%

Monthly

SEBA

9/25/24

1,960,575

SEK

(15,815

)

franklintempleton.com Semiannual Report 71

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

Biomerieux

1-Day EONIA - 0.30%

Monthly

MSCS

9/16/24

101,232

EUR

$

(6,765

)

Bloomin’ Brands Inc.

SOFR - 3.50%

Monthly

GSCO

5/03/24

2,988,314

11,374

Boliden AB

1-Week STIBOR - 0.28%

Monthly

SEBA

8/07/24

1,881,869

SEK

10,984

Bollore SE

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/24

478,740

EUR

3,505

Bonava AB

1-Week STIBOR - 0.28%

Monthly

SEBA

1/24/24

902,248

SEK

23,609

Borr Drilling Limited

1-Week NIBOR - 0.75%

Monthly

SEBA

9/09/24

1,462,431

NOK

9,355

Borussia Dortmund

Euro STR - 0.95%

Monthly

JPHQ

7/17/24

105,035

EUR

5,108

Bossard AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/24

405,948

CHF

14,713

Bouygues Telecom

1-Day EONIA - 0.30%

Monthly

MSCS

8/09/24

209,253

EUR

(24,580

)

Branicks Group AG

Euro STR - 0.75%

Monthly

JPHQ

2/09/24

109,285

EUR

32,842

British American Tobacco

1-Day SONIA - 0.30%

Monthly

MSCS

9/27/24

169,306

GBP

6,752

Brooks Macdonald Group

1-Day SONIA - 0.30%

Monthly

MSCS

9/30/24

687

GBP

(76

)

Bunzl PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/24

79,243

GBP

(11,390

)

Burkhalter

1-Day SARON - 0.35%

Monthly

JPHQ

9/20/24

83,141

CHF

(822

)

BW Energy Ltd.

1-Week NIBOR - 0.45%

Monthly

SEBA

7/17/24

1,300,292

NOK

10,323

BW Offshore Ltd.

1-Week NIBOR - 0.28%

Monthly

SEBA

7/19/24

1,546,321

NOK

19,377

BYD Company

1-Day HONIX - 0.50%

Monthly

MSCS

9/23/24

1,870,238

HKD

39,015

CA Immobilien Anlagen AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

426,968

EUR

(22,587

)

Cadeler AS

1-Week NIBOR - 6.50%

Monthly

SEBA

7/17/24

2,409,253

NOK

41,535

Campari

Euro STR - 0.30%

Monthly

JPHQ

7/31/24

361,237

EUR

41,541

Camurus AB

1-Week STIBOR - 0.75%

Monthly

SEBA

7/17/24

1,036,449

SEK

(82,910

)

Cancom SE

1-Month EURIBOR -0.25%

Monthly

JPHQ

7/17/24

583,040

EUR

27,916

Capgemini

1-Day EONIA - 0.30%

Monthly

MSCS

9/23/24

176,333

EUR

(25,806

)

Capitec Bank Holdings Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/14/24

10,585,666

ZAR

(68,834

)

Carel Industries

Euro STR - 0.30%

Monthly

JPHQ

9/23/24

163,685

EUR

(3,215

)

Carl Zeiss Meditec AG

Euro STR - 0.30%

Monthly

JPHQ

8/21/24

246,984

EUR

23,581

CD Projekt SA

1-Day FEDEF - 1.25%

Monthly

MSCS

7/17/24

81,195

8,113

Cellnex Telecom SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/14/24

480,073

EUR

137

Celon Pharma SA

1-Day FEDEF - 12.75%

Monthly

MSCS

10/28/24

11,213

25

Ceres Power Holdings PLC

1-Day SONIA - 1.38%

Monthly

MSCS

7/17/24

103,562

GBP

55,093

CGG SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/24

228,381

EUR

29,840

Chart Industries Inc.

1-Day FEDEF - 0.70%

Monthly

BOFA

3/27/24

1,870,742

6,941

Chesnara PLC

1-Day SONIA - 0.30%

Monthly

MSCS

12/26/24

99,682

GBP

13,249

Chevron Corp

1-Day FEDEF - 0.35%

Monthly

MSCO

11/22/24

577,492

1,512

Chevron Corp.

1-Day FEDEF - 0.20%

Monthly

BOFA

12/01/24

365,031

—

Chr. Hansen A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/17/24

1,865,910

DKK

(31,808

)

CIE Automotive S.A.

1-Day EONIA - 0.35%

Monthly

MSCS

9/12/24

104,528

EUR

574

Cinemark Holdings Inc.

SOFR - 3.50%

Monthly

GSCO

5/04/24

617,111

2,605

Cint Group AB

1-Week STIBOR - 0.45%

Monthly

SEBA

7/17/24

373,973

SEK

(465

)

CIR SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

70,465

EUR

(6,839

)

Cleveland-Cliffs Inc.

1-Day FEDEF - 0.20%

Monthly

BOFA

8/16/24

54,432

222

Clicks Group Ltd.

1-Day SABOR - 1.25%

Monthly

MSCS

7/22/24

3,706,056

ZAR

(21,806

)

Close Brothers Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/30/24

332,023

GBP

59,656

CMC Markets PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/19/24

101,631

GBP

12,100

CNH Industrial

Euro STR - 0.30%

Monthly

JPHQ

3/22/24

306,991

EUR

61,292

Coats Group PLC

SONIA - 0.30%

Monthly

MSCS

6/03/24

325,835

GBP

20,452

Cognor Holding SA

1-Day FEDEF - 0.75%

Monthly

MSCS

7/17/24

57,628

(15,687

)

Coloplast A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/17/24

2,348,362

DKK

(1,396

)

Comet

1-Day SARON - 0.35%

Monthly

JPHQ

9/30/24

264,371

CHF

(67,993

)

Corbion NV

Euro STR - 0.30%

Monthly

JPHQ

7/12/24

150,526

EUR

44,026

Corporacion Acciona Energias Renovables SA

1-Day EONIA - 0.35%

Monthly

MSCS

8/05/24

127,853

EUR

(3,370

)

COSMO Pharmaceuticals NV

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/24

121,340

CHF

1,335

Credem

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

117,548

EUR

(21,183

)

72 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

Crest Nicholson Holdings PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/21/24

260,294

GBP

$

(18,706

)

Croda International PLC

1-Day SONIA - 0.44%

Monthly

MSCS

11/27/24

150,081

GBP

1,274

Cropenergies AG

Euro STR - 0.95%

Monthly

JPHQ

11/01/24

57,967

EUR

4,628

CTP NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

229,582

EUR

(71,706

)

Curro Holdings

1-Day SABOR - 1.50%

Monthly

MSCS

1/08/25

1,860,115

ZAR

(34,220

)

Cyfrowy Polsat SA

1-Day FEDEF - 0.50%

Monthly

MSCS

7/17/24

534,022

39,347

Daetwyler

Euro STR - 0.35%

Monthly

JPHQ

7/17/24

314,955

CHF

(28,298

)

Daikin Industries Ltd.

1-Day MUTSCALM - 0.40%

Monthly

MSCS

9/30/24

64,028,800

JPY

25,341

Danone SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/24

95,699

EUR

(3,499

)

Dassault Systemes SE

1-Day EONIA - 0.30%

Monthly

MSCS

7/01/24

118,322

EUR

(15,073

)

Delivery Hero SE

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

132,604

EUR

20,072

DEME Group NV

Euro STR - 0.30%

Monthly

JPHQ

3/18/24

132,004

EUR

(9,091

)

Deutsche Wohnen SE

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

346,293

EUR

(48,980

)

Diageo PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/24

413,897

GBP

106,079

DiaSorin

Euro STR - 0.30%

Monthly

JPHQ

4/25/24

237,442

EUR

14,452

D’Ieteren SA

Euro STR - 0.30%

Monthly

JPHQ

7/14/24

128,225

EUR

6,577

Dino Polska SA

1-Day FEDEF - 0.50%

Monthly

MSCS

7/14/24

410,033

(132,021

)

Dios Fastigheter AB

1-Week STIBOR - 0.275%

Monthly

SEBA

10/31/24

596,702

SEK

(7,490

)

Dis-Chem Pharmacies

1-Day SABOR - 0.50%

Monthly

MSCS

12/26/24

6,259,245

ZAR

(31,072

)

Discovery Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/17/24

7,116,637

ZAR

3,135

Distribuidora Internacional De Alimentacion S.A.

1-Day EONIA - 1.375%

Monthly

MSCS

10/02/24

34,385

EUR

2,273

DNB Bank ASA

1-Week NIBOR - 0.275%

Monthly

SEBA

7/17/24

1,166,706

NOK

2,935

Dometic Group AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/24

519,718

SEK

(7,692

)

Dottikon ES Holding AG

1-Day SARON - 1.40%

Monthly

JPHQ

7/17/24

294,822

CHF

17,650

doValue SpA

Euro STR - 0.30%

Monthly

JPHQ

8/14/24

278,164

EUR

77,726

Dr. Martens PLC

1-Day SONIA - 0.30%

Monthly

MSCS

4/24/24

359,196

GBP

172,577

DSV A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/14/24

828,509

DKK

4,029

DT Capital Ltd.

1-Month HIBOR - 0.30%

Monthly

JPHQ

1/30/24

175,227

EUR

49,803

Eckert & Ziegler AG

Euro STR - 0.30%

Monthly

JPHQ

8/21/24

203,684

EUR

(28,928

)

Ecopro BM

1-Day FEDEF - 7.75%

Monthly

MSCS

5/13/24

244,466

(5,543

)

Ecopro BM

1-Day FEDEF - 10.875%

Monthly

MSCS

5/13/24

251,611

(26,605

)

Edreams Odigeo SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/24

153,735

EUR

(40,849

)

El.En. SpA

Euro STR - 0.30%

Monthly

JPHQ

7/22/24

207,148

EUR

21,634

Electrolux AB

1-Week STIBOR - 1.00%

Monthly

SEBA

10/03/24

5,502,589

SEK

61,757

Elia Group

Euro STR - 0.30%

Monthly

JPHQ

5/16/24

277,645

EUR

(3,399

)

Elior Group SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/15/24

227,710

EUR

(56,974

)

Embracer Group AB

1-Week STIBOR - 2.50%

Monthly

SEBA

3/04/24

513,447

SEK

2,506

Ems-Chemie AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/24

125,412

CHF

6,509

ENAV SpA

Euro STR - 0.30%

Monthly

JPHQ

9/23/24

153,037

EUR

26,599

Encore Capital Group Inc.

1-Day FEDEF - 0.20%

Monthly

BOFA

3/02/24

197,568

—

Enento Group OYJ

Euro STR - 0.28%

Monthly

SEBA

7/17/24

87,030

EUR

18,508

Energean PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

173,592

GBP

10,269

Engcon AB

1-Week STIBOR - 3.50%

Monthly

SEBA

10/04/24

249,418

SEK

(5,646

)

Enovis

OBFR

Monthly

NOMU

10/20/24

545,692

1,680

Epiroc AB

1-Week STIBOR - 0.28%

Monthly

SEBA

11/27/24

3,022,402

SEK

12,294

EQT AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/24

5,301,918

SEK

(93,826

)

Equites Property Fund Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/17/24

3,316,823

ZAR

(345

)

Eramet SA

1-Day EONIA - 0.30%

Monthly

MSCS

8/30/24

102,018

EUR

1,422

Eregli Demir ve Celik Fabrikalari TAS

1-Day FEDEF - 5.00%

Monthly

MSCS

7/14/24

100,949

6,685

ERG SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

289,399

EUR

(28,761

)

Esker SA

1-Day EONIA - 0.30%

Monthly

MSCS

5/20/24

114,794

EUR

(11,231

)

Esprinet

Euro STR - 0.30%

Monthly

JPHQ

11/27/24

131,229

EUR

(7,117

)

Essity AB

1-Week STIBOR -0.28%

Monthly

SEBA

7/17/24

4,115,321

SEK

(22,006

)

Eurazeo SE

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/24

255,222

EUR

(35,768

)

franklintempleton.com Semiannual Report 73

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

EuroAPI

1-Day EONIA - 0.30%

Monthly

MSCS

12/23/24

190,742

EUR

$

89,398

EuroGroup Laminations SpA

Euro STR - 0.30%

Monthly

JPHQ

8/12/24

294,695

EUR

85,824

Euronav NV

Euro STR - 0.30%

Monthly

JPHQ

12/23/24

195,024

EUR

5,577

Euronext

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/24

347,932

EUR

(53,112

)

Exail Technologies

1-Day EONIA - 6.875%

Monthly

MSCS

9/23/24

27,445

EUR

(897

)

Expedia Group Inc.

1-Day FEDEF - 0.70%

Monthly

BOFA

7/12/24

49,433

130

Experian PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/24

118,355

GBP

(8,450

)

Exxon Mobil Corp.

1-Day FEDEF - 0.35%

Monthly

MSCO

8/23/24

789,846

23,042

FD Technologies PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/12/24

92,681

GBP

34,424

Ferrari SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

120,689

EUR

(37,232

)

Ferrovial SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/24

491,726

EUR

(112,543

)

Fevertree Drinks PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/25/24

180,294

GBP

32,729

FinecoBank SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

476,171

EUR

14,257

FirstEnergy Corp.

1-Day FEDEF - 0.20%

Monthly

BOFA

5/02/24

231,946

1,071

Flex LNG Ltd.

1-Week NIBOR - 3.50%

Monthly

SEBA

4/04/24

2,895,571

NOK

12,127

Flow Traders

Euro STR - 0.30%

Monthly

JPHQ

8/26/24

332,612

EUR

18,558

Flughafen Zurich AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/24

140,864

CHF

(4,553

)

Fluidra SA

1-Day EONIA - 0.35%

Monthly

MSCS

9/30/24

392,839

EUR

(93,238

)

Flutter Entertainment PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/30/24

198,547

GBP

27,521

Focusrite PLC

1-Day SONIA - 0.30%

Monthly

MSCS

6/03/24

48,326

GBP

457

Formycon AG

Euro STR - 23.00%

Monthly

JPHQ

3/29/24

59,727

EUR

510

Forterra PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/08/24

275,071

GBP

6,837

Fortnox AB

1-Week STIBOR - 0.275%

Monthly

SEBA

11/14/24

1,632,651

SEK

(18,521

)

Fortress REIT Ltd.

1-Day SABOR - 0.56%

Monthly

MSCS

7/12/24

7,209,851

ZAR

(71,208

)

Foschini Group Ltd. (The)

1-Day SABOR - 0.50%

Monthly

MSCS

8/30/24

8,302,041

ZAR

(53,455

)

Francaise Energie

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/24

98,895

EUR

(10,134

)

Franchise Brands PLC

1-Day SONIA - 18.50%

Monthly

MSCS

9/27/24

8,698

GBP

697

Fraport AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

282,051

EUR

(35,407

)

Freeport-McMoRan Inc.

1-Day FEDEF - 0.35%

Monthly

MSCO

9/09/24

54,452

3,095

Fresnillo PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

316,307

GBP

40,408

Friedrich Vorwerk Group SE

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

138,201

EUR

(34,714

)

Frontline PLC

1-Week NIBOR - 0.275%

Monthly

SEBA

10/07/24

882,741

NOK

(6,220

)

F-Secure OYJ

Euro STR - 0.275%

Monthly

SEBA

9/09/24

22,312

EUR

1,148

Future PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/04/24

112,231

GBP

9,365

Gaztransport et Technigaz SA

1-Day EONIA - 0.30%

Monthly

MSCS

8/09/24

307,041

EUR

(88,710

)

GB Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

5/23/24

205,793

GBP

10,696

Geberit AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/24

380,603

CHF

(30,179

)

Genuit Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

248,282

GBP

(20,028

)

GEO Group Inc. (The)

1-Day FEDEF - 0.20%

Monthly

BOFA

2/01/24

977,384

3,684

Getinge AB

1-Week STIBOR - 0.275%

Monthly

SEBA

5/09/24

261,324

SEK

(4,431

)

Getlink SE

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/24

288,918

EUR

(24,391

)

GIMV NV

Euro STR - 0.30%

Monthly

JPHQ

12/16/24

196,510

EUR

321

Givaudan SA

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/24

279,079

CHF

(28,667

)

Gjensidige Forsikring ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/17/24

4,250,551

NOK

(26,493

)

Globus Medical Inc.

SOFR

Monthly

GSCO

5/02/24

51,209

—

Golden Ocean Group Ltd.

1-Week NIBOR - 0.28%

Monthly

SEBA

1/10/25

4,102,124

NOK

(70,371

)

Grainger PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

261,103

GBP

(13,822

)

Grand City Properties

Euro STR - 0.30%

Monthly

JPHQ

1/30/24

162,862

EUR

(35,426

)

Great Portland Estates PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

425,389

GBP

108,569

Greatland Gold PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

223,979

GBP

(123,241

)

Grenergy Renovables SA

1-Day EONIA - 1.75%

Monthly

MSCS

12/02/24

207,331

EUR

(18,007

)

Grenergy Renovables SA

1-Day EONIA - 2.38%

Monthly

MSCS

12/02/24

16,025

EUR

(3,149

)

Groupe ADP

1-Day EONIA - 0.30%

Monthly

MSCS

11/27/24

268,123

EUR

24,759

Groupe Bruxelles Lambert NV

Euro STR - 0.30%

Monthly

JPHQ

7/12/24

397,944

EUR

3,025

Gruppo MutuiOnline SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

104,887

EUR

(8,308

)

Gscbarbk Index

1-Day FEDEF - 0.40%

Monthly

GSCO

9/09/24

510,479

(24,966

)

74 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

Guess? Inc.

SOFR - 3.50%

Monthly

GSCO

3/09/24

405,564

$

1,516

GVS

Euro STR - 0.30%

Monthly

JPHQ

7/13/24

186,199

EUR

6,552

Gym Group PLC (The)

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

125,182

GBP

12,776

H+H International A/S

1-Week CIBOR - 0.275%

Monthly

SEBA

10/17/24

371,857

DKK

708

HAL Trust

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

89,424

EUR

(1,900

)

Haleon PLC

1-Day SONIA - 0.30%

Monthly

MSCS

3/13/24

370,571

GBP

(870

)

Halma PLC

1-Day SONIA - 0.30%

Monthly

MSCS

10/28/24

101,338

GBP

183

Hannon Armstrong Sustainable Infrastructure Capital Inc.

SOFR - 3.50%

Monthly

GSCO

3/21/24

361,310

815

Hansa Biopharma AB

1-Week STIBOR - 1.00%

Monthly

SEBA

7/17/24

465,557

SEK

18,135

Hat Holdings I LLC

SOFR - 0.65%

Monthly

GSCO

10/27/24

185,741

(15,418

)

Hat Holdings I LLC

SOFR - 3.50%

Monthly

GSCO

3/21/24

657,294

(26,841

)

Heineken Holding

Euro STR - 0.30%

Monthly

JPHQ

11/01/24

67,955

EUR

1,553

Heineken Holding NV

Euro STR - 0.35%

Monthly

JPHQ

11/27/24

307,530

EUR

3,907

Hektas

1-Day FEDEF - 15.00%

Monthly

MSCS

7/17/24

5,591

(74,970

)

Helios Towers PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

225,255

GBP

76,491

HELLA GmbH & Co. KGaA

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

246,112

EUR

(32,265

)

Hellofresh SE

Euro STR - 0.30%

Monthly

JPHQ

10/03/24

77,027

EUR

19,693

Henry Boot PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

32,673

GBP

11,414

Herbalife Nutrition Ltd.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/16/24

84,219

—

Hexagon AB

1-Week STIBOR - 0.275%

Monthly

SEBA

4/01/24

1,354,438

SEK

(15,015

)

Hexagon Composites ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/17/24

77,113

NOK

(357

)

Hexagon Purus ASA

1-Week NIBOR - 3.00%

Monthly

SEBA

8/28/24

281,828

NOK

3,938

HF Sinclair Corp.

1-Day FEDEF - 0.35%

Monthly

MSCO

9/27/24

92,682

6,738

HIAG Immobilien Holding AG

1-Day SARON - 0.35%

Monthly

JPHQ

7/17/24

43,304

CHF

54

HMS Networks AB

1-Week STIBOR - 0.275%

Monthly

SEBA

9/13/24

1,560,099

SEK

(22,588

)

Hufvudstaden AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/12/24

4,231,623

SEK

(28,396

)

Hunting PLC

1-Day SONIA - 0.30%

Monthly

MSCS

3/13/24

112,787

GBP

(23,952

)

Hypoport SE

1-Day SABOR - 0.75%

Monthly

JPHQ

9/27/24

388,175

EUR

(23,274

)

Ibstock PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/07/24

108,045

GBP

4,461

ID Logistics Group

1-Day EONIA - 0.30%

Monthly

MSCS

5/22/24

193,118

EUR

(24,432

)

IMCD Group NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

137,186

EUR

(28,308

)

Immobel

Euro STR - 3.25%

Monthly

JPHQ

10/17/24

20,450

EUR

(1,224

)

Immofinanz AG

Euro STR - 6.80%

Monthly

JPHQ

11/08/24

60,894

EUR

(1,867

)

Implenia AG

Euro STR - 0.35%

Monthly

JPHQ

7/17/24

175,142

CHF

(1,506

)

Industrie De Nora

Euro STR - 0.30%

Monthly

JPHQ

3/07/24

198,654

EUR

24,998

Infrastrutture Wireless Italiane SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

307,523

EUR

(23,875

)

InPost SA

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

230,171

EUR

(80,510

)

Instalco AB

1-Week STIBOR - 0.45%

Monthly

SEBA

6/27/24

318,701

SEK

1,039

Intertek Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/30/24

124,196

GBP

5,824

Ion Beam Applications

Euro STR - 0.80%

Monthly

JPHQ

11/08/24

16,610

EUR

(779

)

iRobot Corp.

1-Day FEDEF - 0.20%

Monthly

BOFA

6/20/24

67,165

58

Ironwood Pharmaceuticals Inc.

1-Day FEDEF - 0.20%

Monthly

BOFA

7/10/24

22,216

(1,426

)

Italgas

Euro STR - 0.30%

Monthly

JPHQ

9/06/24

280,373

EUR

(2,721

)

Italmobiliare

Euro STR - 0.30%

Monthly

JPHQ

9/27/24

60,562

EUR

(5,632

)

James Halstead PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

55,602

GBP

1,165

JDE Peet’s NV

Euro STR - 0.30%

Monthly

JPHQ

6/06/24

273,030

EUR

21,603

JM AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/24

4,112,035

SEK

25,021

JTC PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

229,319

GBP

(8,125

)

Judges Scientific PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/05/24

57,737

GBP

3,775

Juventus FC SpA

Euro STR - 3.20%

Monthly

JPHQ

9/02/24

108,367

EUR

25,892

Kambi Group PLC

1-Week STIBOR - 0.75%

Monthly

SEBA

10/11/24

466,325

SEK

4,360

Karnov Group AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/24

1,239,299

SEK

(6,246

)

KBC Groep NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

183,958

EUR

20,653

Kempower OYJ

Euro STR - 3.75%

Monthly

SEBA

7/17/24

84,734

EUR

(952

)

Kering SA

1-Month EURIBOR - 0.40%

Monthly

MSCS

11/27/24

236,585

EUR

52,948

Kerry Group PLC

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/24

211,796

EUR

42,530

franklintempleton.com Semiannual Report 75

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

Kesko Corp.

Euro STR - 0.275%

Monthly

SEBA

10/17/24

199,629

EUR

$

(27,816

)

Kety SA

1-Day FEDEF - 1.00%

Monthly

MSCS

7/17/24

176,954

(67,698

)

KGHM Polska Miedz SA

1-Day FEDEF - 0.50%

Monthly

MSCS

8/19/24

364,022

(23,545

)

Komax

1-Day SARON - 0.35%

Monthly

JPHQ

7/25/24

321,607

CHF

51,885

Korian SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/24

73,326

EUR

50,821

Landis+Gyr Group AG

1-Day SARON - 0.35%

Monthly

JPHQ

1/23/24

88,776

CHF

(1,178

)

Lanxess AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

251,875

EUR

18,461

Lastminute.com N.V.

1-Day SARON - 0.35%

Monthly

JPHQ

11/11/24

26,391

CHF

1,081

Latour Investment AB Services

1-Week STIBOR - 0.275%

Monthly

SEBA

11/14/24

839,702

SEK

(7,859

)

Lectra SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/01/24

185,068

EUR

(7,076

)

LEG Immobilien AG

Euro STR - 0.30%

Monthly

JPHQ

8/21/24

387,197

EUR

(86,043

)

Legal & General Group

1-Day SONIA - 0.30%

Monthly

MSCS

9/23/24

211,647

GBP

(6,380

)

Lenzing AG

Euro STR - 0.30%

Monthly

JPHQ

7/14/24

168,622

EUR

47,881

LG Energy Solutions

1-Day FEDEF - 1.875%

Monthly

MSCS

10/07/24

401,685

(5,721

)

Life Healthcare Group Holdings Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

1/29/24

3,444,833

ZAR

16,721

Linea Directa Aseguradora SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/24

290,744

EUR

30,668

Livent Corp.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/05/24

1,173,398

5,126

London Stock Exchange Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

380,656

GBP

(58,034

)

L’Oreal SA

1-Day EONIA - 0.30%

Monthly

MSCS

8/09/24

123,198

EUR

(17,314

)

Lotus Bakeries NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

381,124

EUR

(114,475

)

LVMH Moet Hennessy Louis Vuitton SE

1-Day EONIA - 0.30%

Monthly

MSCS

7/03/24

274,636

EUR

(2,118

)

M&G PLC

1-Day SONIA - 0.30%

Monthly

MSCS

3/22/24

264,339

GBP

(30,349

)

Marlowe PLC

1-Day SONIA - 0.30%

Monthly

MSCS

9/02/24

229,561

GBP

84,947

Marriott Vacations Worldwide Corp.

OBFR

Monthly

NOMU

9/01/24

103,810

486

Mayr-Melnhof Karton AG

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

177,674

EUR

20,995

mBank SA

1-Day FEDEF - 0.50%

Monthly

MSCS

7/14/24

336,075

(334,945

)

Medacta Group SA

Euro STR - 0.35%

Monthly

JPHQ

7/17/24

211,758

CHF

(35,731

)

Medartis AG

1-Day SARON - 0.85%

Monthly

JPHQ

7/17/24

60,913

CHF

7,231

Mekonomen AB

1-Week STIBOR - 0.275%

Monthly

SEBA

10/18/24

293,212

SEK

(3,358

)

Metsa Board OYJ

Euro STR - 0.32%

Monthly

SEBA

6/13/24

241,853

EUR

4,663

Metso Outotec OYJ

Euro STR - 0.28%

Monthly

SEBA

7/17/24

54,522

EUR

48

Meyer Burger AG

1-Day SARON - 0.95%

Monthly

JPHQ

7/14/24

248,710

CHF

141,616

Michelin

1-Day EONIA - 0.30%

Monthly

MSCS

12/11/24

251,837

EUR

(22,663

)

Microsoft Corp.

1-Day FEDEF - 0.20%

Monthly

BOFA

5/03/24

1,652,048

2,866

Microstrategy

SOFR - 0.05%

Monthly

GSCO

9/12/24

785,321

2,269

Millennium

1-Day FEDEF - 0.50%

Monthly

MSCS

7/17/24

300,797

(286,010

)

Mips AB

1-Week STIBOR - 0.28%

Monthly

SEBA

9/20/24

5,519,563

SEK

158,814

MJ Gleeson PLC

1-Day FEDEF - 0.30%

Monthly

MSCS

11/04/24

18,665

GBP

578

Mobimo Holdings AG

1-Day SARON - 0.35%

Monthly

JPHQ

1/23/24

112,979

CHF

(8,158

)

Molten Ventures PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/12/24

125,264

GBP

(14,513

)

Mondi PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/15/24

96,393

GBP

(1,496

)

Moonpig Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

6/07/24

249,891

GBP

(47,629

)

Morgan Advanced Materials

1-Day SONIA - 0.30%

Monthly

MSCS

8/12/24

272,295

GBP

(6,680

)

Morgan Stanley MSHDGDT3 Index

1-Day EONIA - 0.45%

Monthly

MSCO

7/29/24

92,013

EUR

(4,682

)

Morgan Stanley MSPSENT4 Index

1-Day SONIA - 0.45%

Monthly

MSCO

6/10/24

123,284

GBP

15,886

Morgan Stanley MSPSENTH Index

1-Day SONIA - 0.45%

Monthly

MSCO

11/01/24

29,281

GBP

2,164

Morgan Stanley MSPSGDXJ Index

1-Day FEDEF - 2.05%

Monthly

MSCO

6/19/24

344,206

(83,409

)

Motus Holdings Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

11/04/24

2,203,622

ZAR

8,172

Mr Price Group Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

8/30/24

2,545,780

ZAR

(10,776

)

Mspssimo Index

1-Day FEDEF - 0.30%

Monthly

MSCO

9/30/24

73,800

(4,309

)

Munters Group AB

1-Week STIBOR - 0.275%

Monthly

SEBA

11/14/24

321,463

SEK

(2,370

)

Natera Inc.

SOFR - 3.50%

Monthly

GSCO

5/03/24

101,381

478

National Grid PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

210,711

GBP

(2,894

)

NCC Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/15/24

229,404

GBP

(62,051

)

Neoen

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/24

260,275

EUR

16,241

Neste Corp.

Euro STR - 0.28%

Monthly

SEBA

7/17/24

276,446

EUR

20,570

76 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

Nestle SA

1-Day SARON - 0.35%

Monthly

JPHQ

11/27/24

195,471

CHF

$

20,894

New Wave Group AB

1-Week STIBOR - 0.52%

Monthly

SEBA

8/07/24

4,364,486

SEK

(16,470

)

Newron Pharma

1-Day SARON - 9.40%

Monthly

JPHQ

10/07/24

38,644

CHF

3,664

Nexi SpA

Euro STR - 0.30%

Monthly

JPHQ

10/14/24

353,279

EUR

(13,856

)

Nexity

1-Day EONIA - 0.30%

Monthly

MSCS

10/24/24

182,841

EUR

(1,366

)

Nibe Industrier AB

1-Week STIBOR - 0.28%

Monthly

SEBA

8/12/24

2,293,298

SEK

22,515

Ninety One Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/15/24

1,166,515

ZAR

(2,395

)

Ninety One PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/11/24

227,667

GBP

(6,332

)

Nobia AB

1-Week STIBOR - 0.275%

Monthly

SEBA

11/11/24

219,756

SEK

148

Noble Corp. PLC

1-Week CIBOR - 0.34%

Monthly

SEBA

8/05/24

879,731

DKK

14,667

Nokian Tyres PLC

Euro STR - 0.28%

Monthly

SEBA

8/23/24

346,682

EUR

25,553

Nolato AB

1-Week STIBOR - 0.28%

Monthly

SEBA

9/26/24

3,520,759

SEK

(38,741

)

Nordex SE

Euro STR - 0.95%

Monthly

JPHQ

8/21/24

375,216

EUR

47,690

Nordic Semiconductor ASA

1-Week STIBOR - 0.275%

Monthly

SEBA

4/04/24

2,570,666

NOK

20,305

Northern Oil And Gas Inc.

SOFR - 0.35%

Monthly

GSCO

3/16/24

361,552

1,432

Northern Oil And Gas Inc.

SOFR - 0.35%

Monthly

GSCO

3/16/24

175,855

(7,172

)

Norwegian Cruise Line Holdings Ltd.

1-Day FEDEF - 0.20%

Monthly

BOFA

7/11/24

111,700

383

Novozymes A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/17/24

1,327,401

DKK

(19,019

)

NX Filtration NV

Euro STR - 2.65%

Monthly

JPHQ

8/07/24

34,806

EUR

14,868

OC Oerlikon

1-Day SARON - 0.35%

Monthly

JPHQ

10/07/24

249,048

CHF

3,300

Ocado Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

303,630

GBP

(50,346

)

OCI N.V.

Euro STR - 0.30%

Monthly

JPHQ

9/09/24

137,464

EUR

34,043

Oesterreichische Post AG

Euro STR - 3.80%

Monthly

JPHQ

8/23/24

202,629

EUR

3,772

Old National Bancorp

1-Day FEDEF - 0.20%

Monthly

BOFA

10/31/24

144,463

424

Orion Corp.

Euro STR - 0.28%

Monthly

SEBA

7/17/24

166,727

EUR

2,618

Outsurance Group Limited

1-Day SABOR - 0.50%

Monthly

MSCS

10/03/24

2,063,858

ZAR

248

OX2 AB

1-Week STIBOR - 0.275%

Monthly

SEBA

11/11/24

638,068

SEK

(425

)

Oxford Nanopore Technologies PLC

1-Day SONIA - 0.30%

Monthly

MSCS

5/13/24

258,970

GBP

53,071

Palfinger AG

Euro STR - 0.30%

Monthly

JPHQ

7/12/24

58,558

EUR

1,988

Parsons Corp.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/09/24

935,970

3,292

Partners Group Holding AG

1-Day SARON - 0.35%

Monthly

JPHQ

8/08/24

97,879

CHF

(22,420

)

Patrick Industries Inc.

SOFR - 3.50%

Monthly

GSCO

4/03/24

372,009

6,113

Patrick Industries Inc.

SOFR - 3.50%

Monthly

GSCO

4/03/24

487,892

(1,580

)

Peab AB

1-Week STIBOR - 0.28%

Monthly

SEBA

2/22/24

5,214,091

SEK

(46,844

)

Pepco

1-Day FEDEF - 5.25%

Monthly

MSCS

4/12/24

88,060

32,181

Pepkor

1-Day SABOR - 0.50%

Monthly

MSCS

10/10/24

9,952,914

ZAR

(72,453

)

Pernod Ricard

1-Day EONIA - 0.30%

Monthly

MSCS

11/27/24

393,696

EUR

51,890

Persimmon PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/19/24

211,575

GBP

(23,222

)

Petrofac Ltd.

1-Day SONIA - 0.30%

Monthly

MSCS

9/02/24

117,831

GBP

98,325

Pfeiffer Vacuum

Euro STR - 0.30%

Monthly

JPHQ

3/07/24

353,717

EUR

(3,044

)

PG&E Corp.

OBFR

Monthly

NOMU

11/30/24

198,314

—

Pharmanutra SpA

Euro STR - 0.30%

Monthly

JPHQ

1/10/25

86,409

EUR

6,984

Phoenix Group Holdings PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

413,053

GBP

70,963

Pierer Mobility AG

1-Day SARON - 0.35%

Monthly

JPHQ

9/12/24

98,524

CHF

9,706

Pierre & Vacances

1-Day EONIA - 2.13%

Monthly

MSCS

8/15/24

82,414

EUR

(5,094

)

PKOBP

1-Day FEDEF - 0.50%

Monthly

MSCS

9/26/24

66,983

(33,497

)

Platzer Fastigheter Holding AB

1-Week STIBOR - 0.275%

Monthly

SEBA

10/04/24

552,212

SEK

(2,062

)

PNE AG

Euro STR - 0.70%

Monthly

JPHQ

7/13/24

346,197

EUR

63,728

Polypeptide

1-Day SARON - 0.35%

Monthly

JPHQ

9/18/24

265,451

CHF

17,795

Post Holdings Inc.

SOFR - 0.35%

Monthly

GSCO

3/02/24

485,849

(2,085

)

Post Holdings Inc.

SOFR - 0.35%

Monthly

GSCO

3/02/24

267,481

934

PostNL

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

83,567

EUR

7,241

Progress Software Corp.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/05/24

401,526

1,599

Prosus NV

Euro STR - 0.30%

Monthly

JPHQ

9/20/24

71,709

EUR

(1,216

)

PRS REIT PLC (The)

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

184,701

GBP

12,645

franklintempleton.com Semiannual Report 77

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

Prudential PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/14/24

196,688

GBP

$

43,470

PSG Konsult Ltd.

1-Day SABOR - 0.875%

Monthly

MSCS

5/20/24

2,107,541

ZAR

(27,783

)

PZ Cussons PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

231,134

GBP

55,992

Qt Group OYJ

Euro STR - 4.16%

Monthly

SEBA

7/17/24

178,997

EUR

(556

)

Rathbones Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/30/24

271,412

GBP

58,793

Ratos AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/24

2,351,294

SEK

4,035

Reckitt Benckiser Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

310,543

GBP

37,935

Redeia Corporacion SA

1-Day EONIA - 0.35%

Monthly

MSCS

8/05/24

171,865

EUR

(5,745

)

Reinet Investments S.C.A

1-Day SABOR - 0.50%

Monthly

MSCS

5/20/24

3,511,879

ZAR

(13,489

)

RELX PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

113,052

GBP

(30,905

)

Remy Cointreau

1-Day EONIA - 0.30%

Monthly

MSCS

12/11/24

562,289

EUR

142,961

Renishaw PLC

1-Day SONIA - 0.30%

Monthly

MSCS

2/13/24

370,044

GBP

67,900

Rentokil Initial PLC

1-Day FEDEF - 0.65%

Monthly

MSCS

11/27/24

322,699

GBP

100,312

Reply SpA

Euro STR - 0.30%

Monthly

JPHQ

7/18/24

304,533

EUR

(47,494

)

Restore PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/18/24

56,730

GBP

8,716

Revenio Group Corp.

Euro STR - 0.28%

Monthly

SEBA

7/17/24

11,613

EUR

(1,124

)

Ringkjoebing Landbobank A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/17/24

2,218,001

DKK

9,426

Robertet

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/24

48,447

EUR

4,480

Royal Caribbean Group

SOFR - 3.50%

Monthly

GSCO

3/08/24

2,893,253

8,697

Royal Unibrew

1-Week CIBOR - 0.28%

Monthly

SEBA

11/27/24

1,510,814

DKK

62,211

RS Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

9/20/24

233,835

GBP

(15,745

)

RTL Group

Euro STR - 0.30%

Monthly

JPHQ

1/30/24

432,261

EUR

69,818

Sabre Insurance Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

85,766

GBP

(26,248

)

Sacyr SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/24

464,548

EUR

(118,924

)

Saes Getters

Euro STR - 1.95%

Monthly

JPHQ

10/11/24

135,851

EUR

4,787

Safestore Holdings PLC

1-Day SONIA - 0.30%

Monthly

MSCS

10/21/24

140,404

GBP

(22,413

)

Saga PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

153,760

GBP

33,975

Saipem SpA

1-Month EURIBOR - 6.65%

Monthly

JPHQ

2/26/24

263,427

EUR

(7,652

)

Salcef Group SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

214,286

EUR

(54,255

)

SalMar ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/29/24

1,051,072

NOK

(36,391

)

Salmon Evolution ASA

1-Week NIBOR - 8.50%

Monthly

SEBA

7/12/24

1,498,682

NOK

31,692

Salvatore Ferragamo SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

325,268

EUR

64,457

Sampo PLC

Euro STR - 0.275%

Monthly

SEBA

7/17/24

197,575

EUR

11,036

Sanoma Corp.

Euro STR - 0.28%

Monthly

SEBA

7/17/24

125,383

EUR

11,378

Santander Bank Polska SA

1-Day FEDEF - 0.50%

Monthly

MSCS

7/17/24

116,263

(96,411

)

Sarepta Therapeutics Inc.

1-Day FEDEF - 0.20%

Monthly

BOFA

4/20/24

304,312

1,044

Sartorius AG

Euro STR - 3.55%

Monthly

JPHQ

11/28/24

32,754

EUR

(825

)

Sartorius Stedim Biotech

1-Day EONIA - 0.30%

Monthly

MSCS

6/21/24

277,003

EUR

38,284

SBM Offshore NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

454,609

EUR

46,486

Schibsted ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

7/17/24

1,530,208

NOK

(17,242

)

Schoeller-Bleckmann Oilfield Equipment AG

Euro STR - 0.30%

Monthly

JPHQ

7/13/24

150,157

EUR

43,673

Sdiptech AB

1-Week STIBOR - 1.00%

Monthly

SEBA

7/17/24

585,750

SEK

(2,285

)

Sedana Medical AB

1-Week STIBOR - 0.275%

Monthly

SEBA

11/14/24

128,855

SEK

(2,401

)

Seeing Machines Ltd.

1-Day SONIA - 5.75%

Monthly

MSCS

8/05/24

50,757

GBP

(462

)

Segro PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

332,296

GBP

(30,355

)

Sensirion AG

1-Day SARON - 0.35%

Monthly

JPHQ

4/22/24

399,183

CHF

25,358

Shaftesbury Capital PLC

1-Day SONIA - 0.30%

Monthly

MSCS

9/26/24

180,728

GBP

(15,914

)

Shop Apotheke Europe NV

Euro STR - 0.85%

Monthly

JPHQ

7/17/24

203,070

EUR

(60,714

)

Siemens Healthineers AG

Euro STR - 0.30%

Monthly

JPHQ

8/21/24

314,068

EUR

(8,793

)

SIG Group AG

Euro STR - 0.35%

Monthly

JPHQ

7/17/24

393,574

CHF

30,644

Sika

1-Day SARON - 0.35%

Monthly

JPHQ

11/08/24

240,337

CHF

(3,627

)

Siltronic AG

Euro STR - 1.05%

Monthly

JPHQ

5/13/24

218,539

EUR

(45,388

)

Sixt SE

Euro STR - 0.30%

Monthly

JPHQ

4/17/24

528,900

EUR

60,917

Skanska AB

1-Week STIBOR - 0.28%

Monthly

SEBA

8/07/24

2,683,582

SEK

(9,862

)

SkiStar AB

1-Week STIBOR - 0.73%

Monthly

SEBA

7/15/24

2,318,865

SEK

(2,130

)

78 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

Smart Metering Systems PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/12/24

425,930

GBP

$

91,443

Snam SpA

Euro STR

Monthly

JPHQ

7/17/24

159,787

EUR

(9,677

)

Soitec SA

1-Day EONIA - 0.30%

Monthly

MSCS

8/12/24

174,317

EUR

(11,919

)

Solaria Energia y Medio Ambiente SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/24

162,833

EUR

(34,195

)

SolGold PLC

1-Day SONIA - 0.56%

Monthly

MSCS

7/17/24

111,638

GBP

70,846

Soltec Power Holdings SA

1-Day EONIA - 0.73%

Monthly

MSCS

7/17/24

91,340

EUR

(12,939

)

Sonova Holding AG

1-Day SARON - 0.35%

Monthly

JPHQ

8/08/24

198,129

CHF

(22,585

)

South32 Ltd.

1-Day SABOR - 2.125%

Monthly

MSCS

10/10/24

3,245,507

ZAR

7,875

Southwest Airlines Co.

SOFR - 0.75%

Monthly

GSCO

3/16/24

417,989

(9,096

)

Spar Group Ltd. (The)

1-Day SABOR - 0.50%

Monthly

MSCS

7/22/24

6,176,556

ZAR

(41,290

)

SpareBank 1 Nord-Norge

1-Week NIBOR - 1.50%

Monthly

SEBA

9/20/24

513,832

NOK

(1,276

)

SpareBank 1 Nord-Norge

1-Week NIBOR - 1.50%

Monthly

SEBA

10/23/24

3,432,211

NOK

(1,653

)

Sparebank 1 Oestlandet

1-Week NIBOR - 0.28%

Monthly

SEBA

12/23/24

627,653

NOK

2,898

Spinnova OYJ

Euro STR - 10.50%

Monthly

SEBA

8/08/24

7,393

EUR

5,667

Spirax-Sarco Engineering PLC

1-Day SONIA - 0.30%

Monthly

MSCS

11/27/24

447,533

GBP

38,965

Spirit Aerosystems

OBFR

Monthly

NOMU

11/09/24

272,316

513

Splunk

OBFR

Monthly

NOMU

9/22/24

41,977

1,021

St Galler Kantonalbank AG

1-Day SARON - 0.35%

Monthly

JPHQ

11/06/24

16,664

CHF

292

Starwood Property Trust

OBFR

Monthly

NOMU

11/06/24

389,452

1,202

Steico SE

Euro STR - 0.95%

Monthly

JPHQ

2/09/24

87,192

EUR

30,614

Stora Enso OYJ

Euro STR - 0.28%

Monthly

SEBA

8/05/24

261,574

EUR

(20,444

)

Storskogen Group AB

1-Week STIBOR - 0.75%

Monthly

SEBA

7/17/24

1,524,121

SEK

1,085

STOXX Europe 600 Utilities Index

1-Day EONIA - 0.45%

Monthly

MSCS

3/25/24

1,065,672

EUR

(30,582

)

STOXX Europe 600 Utilities Index

1-Day EONIA - 0.45%

Monthly

MSCS

9/13/24

1,613,681

EUR

(67,061

)

STRATEC SE

Euro STR - 0.35%

Monthly

JPHQ

4/19/24

152,406

EUR

41,553

Strix Group PLC

1-Day SONIA - 2.00%

Monthly

MSCS

7/17/24

21,891

GBP

2,964

Sudzucker AG

Euro STR - 0.30%

Monthly

JPHQ

8/19/24

68,539

EUR

3,359

Supermarket Income REIT

1-Day SONIA - 0.28%

Monthly

MSCS

9/16/24

96,417

GBP

234

Svenska Cellulosa AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/17/24

5,518,152

SEK

(67,360

)

Swedencare AB

1-Week STIBOR - 0.28%

Monthly

SEBA

7/13/24

914,733

SEK

(77,876

)

Swiss Prime Site

1-Day SARON - 0.35%

Monthly

JPHQ

5/01/24

109,796

CHF

(14,149

)

Sword Group SE

1-Day EONIA - 4.00%

Monthly

MSCS

7/17/24

30,052

EUR

2,701

Symrise AG

Euro STR - 0.30%

Monthly

JPHQ

9/27/24

285,136

EUR

(21,023

)

Talenom OYJ

Euro STR - 2.50%

Monthly

SEBA

7/17/24

15,270

EUR

5,565

Talgo SA

1-Day EONIA - 0.35%

Monthly

MSCS

7/17/24

191,607

EUR

(81,566

)

Tamburi

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

229,768

EUR

(7,364

)

Tate & Lyle PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

133,126

GBP

3,944

Technoprobe

Euro STR - 0.30%

Monthly

JPHQ

10/16/24

427,019

EUR

(41,236

)

Tele2 AB

1-Week STIBOR - 0.28%

Monthly

SEBA

11/27/24

1,393,419

SEK

2,602

Telecom Italia

Euro STR - 0.75%

Monthly

JPHQ

7/14/24

279,421

EUR

1,318

Telia Company AB

1-Week STIBOR - 0.275%

Monthly

SEBA

5/06/24

3,524,727

SEK

(24,747

)

Tessenderlo Group

Euro STR - 0.30%

Monthly

JPHQ

10/10/24

10,757

EUR

105

TGS ASA

NOWA - 0.3%

Monthly

MSCS

11/20/24

2,658,614

NOK

(5,693

)

Thermador Groupe SA

1-Day EONIA - 2.25%

Monthly

MSCS

8/16/24

12,288

EUR

1,061

Tietoevry Corp.

Euro STR - 0.275%

Monthly

SEBA

11/29/24

43,216

EUR

697

Tikehau Capital SCA

1-Day EONIA - 4.00%

Monthly

MSCS

7/17/24

71,388

EUR

2,242

Tinexta SpA

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

334,544

EUR

38,370

Tomra Systems ASA

1-Week NIBOR - 0.28%

Monthly

SEBA

1/08/25

2,062,167

NOK

45,519

Topdanmark A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/26/24

2,771,173

DKK

24,221

Trainline PLC

1-Day SONIA - 0.30%

Monthly

MSCS

8/21/24

185,108

GBP

(28,895

)

Transaction Capital Ltd.

1-Day SABOR - 0.50%

Monthly

MSCS

7/17/24

601,369

ZAR

(2,041

)

Transocean

OBFR

Monthly

NOMU

10/12/24

1,253,232

5,339

Treatt PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

91,265

GBP

30,150

Trelleborg AB

1-Week STIBOR - 0.275%

Monthly

SEBA

5/08/24

1,679,458

SEK

(37,521

)

Tritax EuroBox PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

155,066

GBP

(4,805

)

Tryg A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/13/24

3,890,573

DKK

(13,385

)

franklintempleton.com Semiannual Report 79

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value*

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts (continued)

Equity Contracts – Shortd (continued)

Tyler Technologies Inc.

SOFR - 0.35%

Monthly

GSCO

3/01/24

466,582

$

(22,276

)

Ubisoft Entertainment SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/24

244,109

EUR

4,510

Umicore NV

Euro STR - 0.30%

Monthly

JPHQ

8/05/24

184,831

EUR

2,247

Unicaja Banco SA

1-Day EONIA - 0.35%

Monthly

MSCS

6/17/24

343,271

EUR

(27,277

)

Unilever

1-Day SONIA - 0.30%

Monthly

MSCS

10/16/24

126,426

GBP

6,999

UnipolSai

Euro STR - 0.30%

Monthly

JPHQ

11/27/24

322,679

EUR

12,434

UNIQA Insurance Group AG

Euro STR - 0.30%

Monthly

JPHQ

3/18/24

106,623

EUR

3,991

Unite Group PLC (The)

1-Day SONIA - 0.30%

Monthly

MSCS

7/05/24

207,434

GBP

(22,710

)

Urban Logistics REIT PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

273,201

GBP

19,329

Vail Resorts Inc.

SOFR - 3.50%

Monthly

GSCO

5/03/24

83,728

(9

)

Valneva SE

1-Day EONIA - 4.50%

Monthly

MSCS

5/16/24

126,002

EUR

11,724

Varex Imaging Corp.

1-Day FEDEF - 0.20%

Monthly

BOFA

4/21/24

733,265

2,930

VAT Group AG

1-Day SARON - 0.35%

Monthly

JPHQ

4/22/24

351,597

CHF

(81,559

)

Veradigm Inc.

1-Day FEDEF - 0.20%

Monthly

BOFA

2/08/24

457,225

2,193

VERBIO Vereinigte BioEnergie AG

Euro STR - 1.00%

Monthly

JPHQ

7/01/24

367,548

EUR

67,947

Vestas Wind Systems A/S

1-Week CIBOR - 0.28%

Monthly

SEBA

7/12/24

1,751,271

DKK

(18,388

)

Vestel

1-Day FEDEF - 7.63%

Monthly

MSCS

9/09/24

88,881

(11,148

)

VGP NV

Euro STR - 0.30%

Monthly

JPHQ

7/17/24

234,780

EUR

(16,857

)

Victrex PLC

1-Day SONIA - 0.30%

Monthly

MSCS

7/17/24

263,971

GBP

5,374

Vidrala SA

1-Day EONIA - 0.35%

Monthly

MSCS

9/30/24

56,818

EUR

(6,302

)

Virbac

1-Day EONIA - 0.30%

Monthly

MSCS

4/01/24

228,963

EUR

(8,112

)

Viscofan SA

1-Day EONIA - 0.35%

Monthly

MSCS

8/05/24

409,946

EUR

17,457

Vistry Group PLC

1-Day SONIA - 0.30%

Monthly

MSCS

6/03/24

293,099

GBP

14,922

Vivendi

1-Day EONIA - 0.30%

Monthly

MSCS

12/11/24

275,630

EUR

(15,837

)

Voltalia SA

1-Day EONIA - 0.30%

Monthly

MSCS

7/17/24

165,832

EUR

59,762

Waga Energy SA

1-Day EONIA - 0.75%

Monthly

MSCS

7/17/24

39,746

EUR

9,422

Wallenstam AB Series B

1-Week STIBOR - 0.275%

Monthly

SEBA

7/17/24

2,154,230

SEK

(40,660

)

Wayfair Inc.

SOFR - 3.50%

Monthly

GSCO

3/17/24

835,270

(4,417

)

Weibo Corp. ADR

OBFR

Monthly

NOMU

12/01/24

61,529

—

Weibo Corp. ADR

OBFR

Monthly

NOMU

12/01/24

63,451

963

Wendel Group

1-Day EONIA - 0.30%

Monthly

MSCS

5/27/24

535,691

EUR

81,051

Westrock Co.

1-Day FEDEF - 0.35%

Monthly

MSCO

10/04/24

82,306

(13,455

)

Whitbread PLC

1-Day SONIA - 0.30%

Monthly

MSCS

4/12/24

79,157

GBP

2,704

Wihlborgs Fastigheter AB

1-Week STIBOR - 0.275%

Monthly

SEBA

11/11/24

786,615

SEK

(3,824

)

WithSecure Corp.

1-Week Euro STR - 0.275%

Monthly

SEBA

4/22/24

75,517

EUR

19,996

Wizz Air Holdings PLC

1-Day SONIA - 0.30%

Monthly

MSCS

12/19/24

205,161

GBP

38,134

WPP PLC

1-Day SONIA - 0.30%

Monthly

MSCS

9/30/24

177,196

GBP

4,790

Xior Student Housing

Euro STR - 0.30%

Monthly

JPHQ

5/16/24

202,358

EUR

(29,399

)

XP Power Ltd.

1-Day SONIA - 0.30%

Monthly

MSCS

8/30/24

91,470

GBP

42,826

YIT Corp.

Euro STR - 0.275%

Monthly

SEBA

11/08/24

45,869

EUR

(3,384

)

Ziff Davis

1-Day FEDEF - 0.20%

Monthly

BOFA

3/08/24

145,893

339

Zur Rose Group AG

1-Day SARON - 2.10%

Monthly

JPHQ

7/17/24

189,773

CHF

(124,424

)

(790,624

)

Total - Total Return Swap Contracts

$

(947,187

)

*In U.S. dollars unless otherwise indicated.

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

^bFair valued using significant unobservable inputs. See Note 13 regarding fair value investments.

^cSee Note 9 regarding investments in Russian securities. Notional value rounds to less than 1.

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

See Note 11 regarding other derivative information.

See Abbreviations on page 102.

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Assets and Liabilities

November 30, 2023 (unaudited)

K2 Alternative Strategies Fund

Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	585,446,723
Cost – Non-controlled affiliates (Note 3f)		1,010,000
Value – Unaffiliated issuers†	$	599,701,637
Value – Non-controlled affiliates (Note 3f)		1,010,000
Cash		21,631,271
Restricted cash for OTC derivatives (Note 1d)		2,450,000
Foreign currency, at value (cost $11,156,504)		11,285,624
Receivables:
Investment securities sold		13,472,849
Capital shares sold		17,825,915
Dividends and interest		5,205,850
Deposits with brokers for:
Securities sold short		119,786,559
OTC derivative contracts		49,658,416
Futures contracts		12,154,221
Centrally cleared swap contracts		4,153,971
Due from brokers		5,739,330
Variation margin on futures contracts		29,113
OTC swap contracts (upfront payments $3,587,632)		2,764,183
Unrealized appreciation on OTC forward exchange contracts		2,373,215
Unrealized appreciation on OTC swap contracts		14,664,175
Other assets		185,812
Total assets		884,092,141
Liabilities:
Payables:
Investment securities purchased		13,886,767
Capital shares redeemed		18,483,572
Management fees		924,907
Distribution fees		23,063
Trustees’ fees and expenses		5,219
Transfer agent fees		385,370
Deposits from brokers for:
OTC derivative contracts		2,450,000
Due to brokers		17,206,045
Variation margin on centrally cleared swap contracts		62,153
OTC swap contracts (upfront receipts $137,304)		128,537
Options written, at value (premiums received $535,068)		382,840
Securities sold short, at value (proceeds $128,452,480)		121,453,065
Payable upon return of securities loaned (Note 1f)		1,010,000
Unrealized depreciation on OTC forward exchange contracts		3,212,940
Unrealized depreciation on OTC swap contracts		15,269,086
Unrealized depreciation on unfunded loan commitments (Note 10)		40,305
Accrued expenses and other liabilities		367,328
Total liabilities		195,291,197
Net assets, at value	$	688,800,944
Net assets consist of:
Paid-in capital	$	702,970,844
Total distributable earnings (loss)		(14,169,900	)
Net assets, at value	$	688,800,944
†Includes securities loaned	$	1,047,230

franklintempleton.com The accompanying notes are an integral part of these financial statements.    |   Semiannual Report 81

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Assets and Liabilities (continued)

November 30, 2023 (unaudited)

K2 Alternative Strategies Fund

Class A:
Net assets, at value	$	66,353,363
Shares outstanding		6,118,241
Net asset value per sharea	$	10.85
Maximum offering price per share (net asset value per share ÷ 94.50%)	$	11.48
Class C:
Net assets, at value	$	10,978,028
Shares outstanding		1,049,060
Net asset value and maximum offering price per sharea	$	10.46
Class R:
Net assets, at value	$	304,236
Shares outstanding		27,966
Net asset value and maximum offering price per share	$	10.88
Class R6:
Net assets, at value	$	41,505,722
Shares outstanding		3,786,078
Net asset value and maximum offering price per share	$	10.96
Advisor Class:
Net assets, at value	$	569,659,595
Shares outstanding		52,087,136
Net asset value and maximum offering price per share	$	10.94

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

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Operations

for the six months ended November 30, 2023 (unaudited)

K2 Alternative Strategies Fund

Investment income:
Dividends: (net of foreign taxes)*
Unaffiliated issuers	$	7,073,769
Interest: (net of foreign taxes)~
Unaffiliated issuers		10,060,641
Income from securities loaned:
Unaffiliated entities (net of fees and rebates)		(13,251	)
Non-controlled affiliates (Note 3f)		41,687
Total investment income		17,162,846
Expenses:
Management fees (Note 3a)		7,463,316
Distribution fees: (Note 3c)
Class A		89,172
Class C		67,429
Class R		815
Transfer agent fees: (Note 3e)
Class A		48,671
Class C		9,207
Class R		222
Class R6		4,090
Advisor Class		449,053
Custodian fees (Note 4) .		180,013
Reports to shareholders fees		51,740
Registration and filing fees		57,774
Professional fees		268,799
Trustees’ fees and expenses		183,185
Dividends and interest on securities sold short		1,710,830
Other		79,224
Total expenses		10,663,540
Expense reductions (Note 4)		(149,553	)
Expenses waived/paid by affiliates (Note 3f and 3g)		(1,157,215	)
Net expenses		9,356,772
Net investment income		7,806,074
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		7,866,485
Written options		898,825
Foreign currency transactions		213,278
Forward exchange contracts		(2,921,846	)
Futures contracts		(1,127,044	)
Securities sold short		6,301,424
Swap contracts		(1,466,340	)
Net realized gain (loss)		9,764,782
Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(922,430	)
Written options		(90,032	)
Translation of other assets and liabilities denominated in foreign currencies		132,620
Forward exchange contracts		795,033
Futures contracts		85,603
Securities sold short		(7,722,456	)
Swap contracts		3,146,689
Net change in unrealized appreciation (depreciation)		(4,574,973	)
Net realized and unrealized gain (loss)		5,189,809
Net increase (decrease) in net assets resulting from operations	$	12,995,883
*  Foreign taxes withheld on dividends	$	10,267
~ Foreign taxes withheld on interest	$	13,410

franklintempleton.com The accompanying notes are an integral part of these financial statements.    |   Semiannual Report 83

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Changes in Net Assets

K2 Alternative Strategies Fund

	Six Months Ended November 30, 2023 (unaudited)			Year Ended May 31, 2023
Increase (decrease) in net assets:
Operations:
Net investment income	$	7,806,074		$	15,741,185
Net realized gain (loss)		9,764,782			(11,553,755	)
Net change in unrealized appreciation (depreciation)		(4,574,973	)		(20,733,832	)
Net increase (decrease) in net assets resulting from operations		12,995,883			(16,546,402	)
Distributions to shareholders:
Class A		—			(2,298,782	)
Class C		—			(366,579	)
Class R		—			(6,760	)
Class R6		—			(1,623,691	)
Advisor Class		—			(25,006,493	)
Total distributions to shareholders		—			(29,302,305	)
Capital share transactions: (Note 2)
Class A		(11,224,603	)		(14,390,545	)
Class C		(4,913,247	)		(7,897,223	)
Class R		(51,449	)		(443,340	)
Class R6		(3,439,861	)		(1,408,481	)
Advisor Class		(152,266,813	)		(349,425,448	)
Total capital share transactions		(171,895,973	)		(373,565,037	)
Net increase (decrease) in net assets		(158,900,090	)		(419,413,744	)
Net assets:
Beginning of period		847,701,034			1,267,114,778
End of period	$	688,800,944		$	847,701,034

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

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Notes to Consolidated Financial Statements (unaudited)

K2 Alternative Strategies Fund

1. Organization and Significant Accounting Policies

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

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

The following summarizes the Fund’s significant accounting policies.

a. Financial Instrument Valuation

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

Equity securities, exchange traded funds and derivative financial instruments listed on an exchange or on the NASDAQ

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

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

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

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

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

franklintempleton.com Semiannual Report 85

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

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

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Fund’s business day. Events can occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the value of the Fund’s portfolio securities to the latest indications of fair value at 4 p.m. Eastern time. At November 30, 2023, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 within the fair value hierarchy (referred to as “market level fair value”). See the Fair Value Measurements note for more information.

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

b. Foreign Currency Translation

Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S.

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

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

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

c. Derivative Financial Instruments

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

86 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

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

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

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

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

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

franklintempleton.com Semiannual Report 87

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

1. Organization and Significant Accounting Policies (continued)

c. Derivative Financial Instruments (continued)

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

The Fund entered into OTC cross-currency swap contracts primarily to manage and/or gain exposure to certain foreign currencies. A cross-currency swap is an agreement between the Fund and a counterparty to exchange cash flows (determined using either a fixed or floating rate) based on the notional amounts of two different currencies. The notional amounts are typically determined based on the spot exchange rates at the opening of the contract. Cross-currency swaps may require the exchange of notional amounts at the opening and/or closing of the contract. Over the term of the contract, contractually required payments to be paid and to be received are accrued daily and recorded as unrealized appreciation or depreciation until the payments are made, at which time they are realized. Any upfront payments and receipts are reflected in the Consolidated Statement of Assets and Liabilities and represent compensating factors between stated terms of the cross-currency swap contract and prevailing market conditions (interest rate spreads and other relevant factors). These upfront payments and receipts are amortized over the term of the contract as a realized gain or loss in the Consolidated Statement of Operations, if any. At November 30, 2023, the Fund had no cross-currency swap contracts.

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

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

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

See Notes 6 and 11 regarding investment transactions and other derivative information, respectively.

d. Restricted Cash

At November 30, 2023, the Fund held restricted cash in connection with investments in certain derivative securities. Restricted cash is held in a segregated account with the Fund’s custodian and/or counterparty broker and is reflected in the Consolidated Statement of Assets and Liabilities.

e. Securities Sold Short

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

88 Semiannual Report franklintempleton.com

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

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

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

f. Securities Lending

The Fund participates in an agency based securities lending program to earn additional income. The Fund receives collateral in the form of cash and/or U.S. Government and Agency Securities against the loaned securities in an amount equal to at least 102% of the fair value of the loaned securities. Collateral is maintained over the life of the loan in an amount not less than 100% of the fair value of loaned securities, as determined at the close of Fund business each day; any additional collateral required due to changes in security values is delivered to the Fund on the next business day. Any cash collateral received is deposited into a joint cash account with other funds and is used to invest in a money market fund managed by Franklin Advisers, Inc., an affiliate of the Fund, and/or a joint repurchase agreement. Additionally, the Fund received $70,767 in U.S. Government and Agency Securities as collateral. These securities received as collateral are held in segregated accounts with the Fund’s custodian. The Fund cannot repledge or resell these securities received as collateral. As such, the non-cash collateral is excluded from the Consolidated Statement of Assets and Liabilities. The Fund may receive income from the investment of cash collateral, in addition to lending fees and rebates paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third party vendor, is reported separately in the Consolidated Statement of Operations. The Fund bears the market risk with respect to any cash collateral investment, securities loaned, and the risk that the agent may default on its obligation to the Fund. If the borrower defaults on its obligations to return the securities loaned, the Fund

has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower.

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

The Fund invests in certain financial instruments and commodity-linked derivative investments through its investment in the K2 Subsidiary. The K2 Subsidiary is a Cayman Islands exempted company with limited liability, is a wholly-owned subsidiary of the Fund, and is able to invest in certain financial instruments and commodity-linked derivative investments consistent with the investment objective of the Fund. At November 30, 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 and Consolidated Statement of Assets and Liabilities. All intercompany transactions and balances have been eliminated. For tax purposes, the Fund is required to increase its taxable income by its share of the K2 Subsidiary’s income. Net losses incurred by the K2 Subsidiary cannot offset income earned by the Fund and cannot be carried back or forward by the K2 Subsidiary to offset income from prior or future years. At November 30, 2023, the net assets of the K2 Subsidiary were $52,957,118 representing 7.7% of the Fund’s consolidated net assets. The Fund’s investment in the K2 Subsidiary is limited to 25% of consolidated assets.

h. Senior Floating Rate Interests

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

i. Income and Deferred Taxes

It is the Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its

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K2 Alternative Strategies Fund (continued)

1. Organization and Significant Accounting Policies (continued)

i. Income and Deferred Taxes (continued)

taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.

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

The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of November 30, 2023, the Fund has determined that no tax liability is required in its consolidated financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.

j. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest income and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Paydown gains and losses are recorded as an adjustment to interest income. The Fund may receive other income from investments in senior secured corporate loans or unfunded commitments, including amendment fees, consent fees or commitment fees. These fees are recorded as income when received by the Fund.

Facility fees are recognized as income over the expected term of the loan. Dividend income and dividends declared on securities sold short are recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Fund. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

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

k. Accounting Estimates

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

l. Guarantees and Indemnifications

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

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K2 Alternative Strategies Fund (continued)

2. Shares of Beneficial Interest

At November 30, 2023, there were an unlimited number of shares authorized (without par value). Transactions in the Fund’s shares were as follows:

	Six Months Ended November 30, 2023						Year Ended May 31, 2023
	Shares			Amount			Shares			Amount
Class A Shares:
Shares solda		478,411		$	5,183,445			1,184,496		$	12,884,556
Shares issued in reinvestment of distributions		—			—			197,144			2,107,467
Shares redeemed		(1,515,286	)		(16,408,048	)		(2,702,826	)		(29,382,568	)
Net increase (decrease)		(1,036,875	)	$	(11,224,603	)		(1,321,186	)	$	(14,390,545	)
Class C Shares:
Shares sold		14,980		$	157,329			112,939		$	1,186,468
Shares issued in reinvestment of distributions		—			—			30,061			312,336
Shares redeemeda		(484,231	)		(5,070,576	)		(892,790	)		(9,396,027	)
Net increase (decrease)		(469,251	)	$	(4,913,247	)		(749,790	)	$	(7,897,223	)
Class R Shares:
Shares sold		104		$	1,131			5,131		$	55,176
Shares issued in reinvestment of distributions		—			—			629			6,760
Shares redeemed		(4,815	)		(52,580	)		(45,962	)		(505,276	)
Net increase (decrease)		(4,711	)	$	(51,449	)		(40,202	)	$	(443,340	)
Class R6 Shares:
Shares sold		1,057,333		$	11,509,419			1,973,905		$	21,789,501
Shares issued in reinvestment of distributions		—			—			127,748			1,375,848
Shares redeemed		(1,370,762	)		(14,949,280	)		(2,249,882	)		(24,573,830	)
Net increase (decrease)		(313,429	)	$	(3,439,861	)		(148,229	)	$	(1,408,481	)
Advisor Class Shares:
Shares sold		3,067,615		$	33,505,508			13,145,615		$	144,459,116
Shares issued in reinvestment of distributions		—			—			1,667,367			17,940,869
Shares redeemed		(17,031,851	)		(185,772,321	)		(46,582,302	)		(511,825,433	)
Net increase (decrease)		(13,964,236	)	$	(152,266,813	)		(31,769,320	)	$	(349,425,448	)

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

3. Transactions with Affiliates

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

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

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K2 Alternative Strategies Fund (continued)

3. Transactions with Affiliates (continued)

a. Management Fees

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

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

For the period ended November 30, 2023, the annualized gross effective management fee rate was 1.90% of the Fund’s average daily net assets.

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

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

Subadvisors

ActusRayPartners Limited

Apollo Credit Management LLC

Bardin Hill Arbitrage IC Management LP

Capital Fund Management S.A.

Chilton Investment Company, Inc.

DLD Asset Management, LP

Electron Capital Partners, LLC

Graham Capital Management, L.P.

Jennison Associates, LLC

Lazard Asset Management, LLC

Loomis Sayles & Company, L.P.

One River Asset Management, LLC

P. Schoenfeld Asset Management L.P.

RBC Global Asset Management (UK) Limited (formerly, BlueBay Asset Management LLP)

RV Capital Management Private, Ltd.

b. Administrative Fees

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

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K2 Alternative Strategies Fund (continued)

c. Distribution Fees

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

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

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

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

d. Sales Charges/Underwriting Agreements

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

Sales charges retained net of commissions paid to unaffiliated brokers/dealers	$	896
CDSC retained	$	364

e. Transfer Agent Fees

Each class of shares pays transfer agent fees, calculated monthly and paid monthly, to Investor Services for its performance of shareholder servicing obligations. Effective October 1, 2023, the fees are based on a fixed margin earned by Investor Services and are allocated to the Fund based upon relative assets and relative transactions. Prior to October 1, 2023, the fees were based on an annualized asset based fee of 0.016% plus a transaction based fee. In addition, each class reimburses Investor Services for out of pocket expenses incurred and, except for Class R6, reimburses shareholder servicing fees paid to third parties. These fees paid to third parties are accrued and allocated daily based upon their relative proportion of such classes’ aggregate net assets. Class R6 pays Investor Services transfer agent fees allocated specifically to that class based upon its relative assets and relative transactions.

For the period ended November 30, 2023, the Fund paid transfer agent fees as noted in the Consolidated Statement of Operations, of which $109,034 was retained by Investor Services.

f. Investments in Affiliated Management Investment Companies

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

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K2 Alternative Strategies Fund (continued)

3. Transactions with Affiliates (continued)

an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the period ended November 30, 2023, the Fund held investments in affiliated management investment companies as follows:

	Value at Beginning of Period		Purchases		Sales			Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Value at End of Period		Number of Shares Held at End of Period		Income from Securities Loaned
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio, 5.04%	$	3,348,000	$	13,999,000	$	(16,337,000	)	$	—	$	—	$	1,010,000		1,010,000	$	41,687

g. Waiver and Expense Reimbursements

K2 Advisors has contractually agreed in advance to waive or limit its fees and to assume as their own expense certain expenses otherwise payable by the Fund so that the operating expenses (excluding interest expense, distribution fees, acquired fund fees and expenses, expenses related to securities sold short and certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations and liquidations) for each class of the Fund do not exceed 1.90% based on the average net assets of each class until September 30, 2024. Total expenses waived or paid are not subject to recapture subsequent to the Fund’s fiscal year end.

Prior to July 1, 2023, the expenses (excluding certain fees and expenses as previously disclosed) for each class of the Fund were limited to 1.95% based on the average net assets of each class.

Transfer agent fees on Class R6 shares of the Fund have been capped so that transfer agent fees for that class do not exceed 0.03% based on the average net assets of the class until September 30, 2024.

4. Expense Offset Arrangement

The Fund has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund’s custodian expenses. During the period ended November 30, 2023, the custodian fees were reduced as noted in the Consolidated Statement of Operations.

5. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains. At May 31, 2023, the Fund had short term and long term capital loss carryforwards not subject to expiration of $8,472,495 and $8,985,682, respectively.

At November 30, 2023, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:

Cost of investments	$	472,110,981
Unrealized appreciation	$	64,432,990
Unrealized depreciation		(55,633,695	)
Net unrealized appreciation (depreciation)	$	8,799,295

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

6. Investment Transactions

Purchases and sales of investments and securities sold short (excluding short term securities) for the period ended November 30, 2023, aggregated $752,810,428 and $916,371,512, respectively.

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K2 Alternative Strategies Fund (continued)

At November 30, 2023, in connection with securities lending transactions, the Fund loaned equity investments and corporate bonds and notes and received $1,010,000 of cash collateral. The gross amounts of recognized liability for such transactions are included in payable upon return of securities loaned in the Consolidated Statement of Assets and Liabilities. The agreements can be terminated at any time.

The Fund sold certain long positions held in the portfolio and simultaneously entered into total return swaps on the positions, retaining substantially all of the exposure to the economic return and the related risks on the long positions. At November 30, 2023, the transfers of financial assets accounted for as sales were as follows:

	At Original Transactions Dates				At Period Ended November 30, 2023
	Cost Basis of Positions Sold		Gross Cash Received for Positions Sold		Fair Value of Transferred Assetsa		Gross Derivative Assets Recordedb		Gross Derivative Liabilities Recordedb
Sales and total return swaps	$	472,588	$	484,652	$	495,135	$	496,231	$	(485,748	)

^a$10,483 of fair value of transferred assets are included as unrealized appreciation and depreciation on OTC swap contracts in the Consolidated Statement of Assets and Liabilities.

^bBalances are presented on a gross basis, based on each leg of the swap contract, before the application of counterparty and cash collateral offsetting.

See Notes 1(c) and 11 regarding derivative financial instruments and other derivative information, respectively.

7. Credit Risk and Defaulted Securities

At November 30, 2023, the Fund had 25.0% of its portfolio invested in high yield, senior secured floating rate loans, or other securities rated below investment grade and unrated securities. These securities may be more sensitive to economic conditions causing greater price volatility and are potentially subject to a greater risk of loss due to default than higher rated securities.

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

At November 30, 2023, the aggregate long value of distressed company securities for which interest recognition has been discontinued was $8,100,515, representing 1.2% of the Fund’s net assets. For information as to specific securities, see the accompanying Consolidated Schedule of Investments.

8. Concentration of Risk

Investments in issuers domiciled or with significant operations in developing or emerging market countries may be subject to higher risks than investments in developed countries. These risks include fluctuating currency values, underdeveloped legal or business systems, and changing local and regional economic, political and social conditions, which may result in greater market volatility. In addition, certain foreign securities may not be as liquid as U.S. securities. Currencies of developing or emerging market countries may be subject to significantly greater risks than currencies of developed countries, including the potential inability to repatriate those currencies into U.S. dollars.

9. Investments in Russian Securities

Russia’s military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict could increase volatility and uncertainty in the financial markets and adversely affect regional

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K2 Alternative Strategies Fund (continued)

9. Investments in Russian Securities (continued)

and global economies. The United States and other countries have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia’s military invasion. These sanctions, as well as any other economic consequences related to the invasion, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on governments, companies or individuals, may further decrease the value and liquidity of certain Russian securities and securities of issuers in other countries that are subject to economic sanctions related to the invasion. To the extent that the Fund has exposure to Russian investments or investments in countries affected by the invasion, the Fund’s ability to price, buy, sell, receive or deliver such investments was impaired. The Fund could determine at any time that certain of the most affected securities have little or no value. In addition, any exposure that the Fund may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Fund’s portfolio. The extent and duration of Russia’s military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact the Fund’s performance and the value of an investment in the Fund, even beyond any direct exposure the Fund may have to Russian issuers or issuers in other countries affected by the invasion. The Valuation Committee determined that based on their analysis of the market and access to market participants, the Russian financial instruments held by the Fund had little or no value at November 30, 2023.

10. Unfunded Loan Commitments

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

At November 30, 2023, unfunded commitments were as follows:

Borrower	Unfunded Commitment
Bausch Health Cos. Inc., Term Loan B	$	391,589
CommScope Holding Company Inc., Initial Term Loan		359,479
CSC Holdings LLC, Term Loan B		151,900
CSC Holdings LLC, Term Loan B		331,390
Euro Garage Ltd., Term Loan B-1		30,092
ICP Group, Bank Debt Term Loan		361,679
K. Hovnanian Enterprises Inc., Term Loan RC		500,000
Oldcastle BuildingEnvelope Inc., Term Loan RC		251,807
Upfield Group BV, Term Loan RC		212,579
	$	2,590,515

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K2 Alternative Strategies Fund (continued)

11. Other Derivative Information

At November 30, 2023, the investments in derivative contracts are reflected in the Consolidated Statement of Assets and Liabilities as follows:

	Asset Derivatives				Liability Derivatives
Derivative Contracts Not Accounted for as Hedging Instruments	Consolidated Statement of Assets and Liabilities Location	Fair Value			Consolidated Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Investments in securities, at value	$	26,250	a
	Variation margin on futures contracts		682,104	b	Variation margin on futures contracts	$	1,111,846	b
	Variation margin on centrally cleared swap contracts		492,199	b	Variation margin on centrally cleared swap contracts		458,260	b
Foreign exchange contracts	Investments in securities, at value		37	a
	Variation margin on futures contracts		190,833	b	Variation margin on futures contracts		360,633	b
	Unrealized appreciation on OTC forward exchange contracts		2,373,215		Unrealized depreciation on OTC forward exchange contracts		3,212,940
					Unrealized depreciation on OTC swap contracts		577
Credit contracts	Variation margin on centrally cleared swap contracts		615,076	b	Variation margin on centrally cleared swap contracts		459,769	b
	OTC swap contracts (upfront payments)		2,764,183		OTC swap contracts (upfront receipts)		128,537
	Unrealized appreciation on OTC swap contracts		718,343		Unrealized depreciation on OTC swap contracts		376,067
Equity contracts	Investments in securities, at value		1,393,076	a	Options written, at value		382,840
	Variation margin on futures contracts		1,523,925	b	Variation margin on futures contracts		941,475	b
	Unrealized appreciation on OTC swap contracts		13,945,832		Unrealized depreciation on OTC swap contracts		14,892,442
Commodity contracts	Variation margin on futures contracts		1,425,493	b	Variation margin on futures contracts		1,115,645	b
Totals		$	26,150,566			$	23,441,031

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

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

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K2 Alternative Strategies Fund (continued)

11. Other Derivative Information (continued)

For the period ended November 30, 2023, the effect of derivative contracts in the Consolidated Statement of Operations was as follows:

Derivative Contracts Not Accounted for as Hedging Instruments	Consolidated Statement of Operations Location	Net Realized Gain (Loss) for the Period			Consolidated Statement of Operations Location	Net Change in Unrealized Appreciation (Depreciation) for the Period
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:
Interest rate contracts	Investments	$	322,705	a	Investments	$	(121,732	)a
	Written options		(177,676	)	Written options		114,124
	Futures contracts		2,126,779		Futures contracts		165,210
	Swap contracts		3,382,949		Swap contracts		(471,869	)
Foreign exchange contracts	Investments		(97,667	)a	Investments		76,572	a
	Written options		10,334		Written options		(7,640	)
	Forward exchange contracts		(2,921,846	)	Forward exchange contracts		795,033
	Futures contracts		(170,486	)	Futures contracts		(296,501	)
	Swap contracts		(54,629	)	Swap contracts		(577	)
Credit contracts	Swap contracts		184,293		Swap contracts		199,045
Equity contracts	Investments		(3,641,061	)a	Investments		(117,810	)a
	Written options		1,066,167		Written options		(196,516	)
	Futures contracts		(2,352,978	)	Futures contracts		1,109,293
	Swap contracts		(4,978,953	)	Swap contracts		3,420,090
Commodity contracts	Futures contracts		(730,359	)	Futures contracts		(892,399	)
Totals		$	(8,032,428	)		$	3,774,323

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

For the period ended November 30, 2023, the average month end notional amount of futures contracts and swap contracts represented $666,202,104 and $1,177,719,532, respectively. The average month end fair value of options was $3,943,470. The average month end contract value of forward exchange contracts was $728,716,383.

At November 30, 2023, OTC derivative assets and liabilities are as follows:

	Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
	Assetsa		Liabilitiesa
Forward Exchange Contracts	$	2,373,215	$	3,212,940
Options Purchased		66,240		—
Swap Contracts		17,428,358		15,397,623
Total	$	19,867,813	$	18,610,563

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

At November 30, 2023, OTC derivative assets, which may be offset against OTC derivative liabilities and collateral received from the counterparty, are as follows:

			Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
	Gross Amounts of Assets Presented in the Consolidated Statement of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Receiveda			Cash Collateral Receiveda			Net Amount (Not less than zero)
Counterparty
BNPP	$	15,683	$	—		$	—		$	—		$	15,683
BNYM		47,037		(47,037	)		—			—			—
BOFA		144,382		(133,919	)		(10,463	)		—			—
BZWS		984,715		(572,820	)		(411,895	)		—			—
CITI		879,673		(81,250	)		—			(710,000	)		88,423
DBAB		—		—			—			—			—
GSCO		2,229,430		(494,028	)		—			(1,735,402	)		—
JPHQ		4,578,926		(4,578,926	)		—			—			—
JPHQb		1,077,346		—			—			—			1,077,346
MSCO		157,985		(71,690	)		—			—			86,295
MSCOb		56,388		—			—			—			56,388
MSCOc		670,890		(670,890	)		—			—			—
MSCS		6,301,131		(6,301,131	)		—			—			—
NOMU		11,204		(11,204	)		—			—			—
SEBA		2,713,023		(2,532,732	)		—			—			180,291
Total	$	19,867,813	$	(15,495,627	)	$	(422,358	)	$	(2,445,402	)	$	1,504,426

At November 30, 2023, OTC derivative liabilities, which may be offset against OTC derivative assets and collateral pledged to the counterparty, are as follows:

			Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
	Gross Amounts of Liabilities Presented in the Consolidated Statement of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Pledgeda		Cash Collateral Pledgeda			Net Amount (Not less than zero)
Counterparty
BNPP	$	—	$	—		$	—	$	—		$	—
BNYM		118,230		(47,037	)		—		(60,000	)		11,193
BOFA		133,919		(133,919	)		—		—			—
BZWS		572,820		(572,820	)		—		—			—
CITI		81,250		(81,250	)		—		—			—
DBAB		—		—			—		—			—
GSCO		494,028		(494,028	)		—		—			—
JPHQ		4,624,985		(4,578,926	)		—		(46,059	)		—
JPHQb		1,202,764		—			—		—			1,202,764
MSCO		71,690		(71,690	)		—		—			—
MSCOb		779,122		—			—		—			779,122
MSCOc		1,373,530		(670,890	)		—		(702,640	)		—
MSCS		6,540,631		(6,301,131	)		—		(239,500	)		—
NOMU		84,862		(11,204	)		—		(73,658	)		—
SEBA		2,532,732		(2,532,732	)		—		—			—
Total	$	18,610,563	$	(15,495,627	)	$	—	$	(1,121,857	)	$	1,993,079

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

11. Other Derivative Information (continued)

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

^bRepresents derivatives not subject to an ISDA master agreement.

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

See Notes 1(c) and 6 regarding derivative financial instruments and investment transactions, respectively.

See Abbreviations on page 102.

12. Credit Facility

The Fund, together with other U.S. registered and foreign investment funds (collectively, Borrowers), managed by Franklin Templeton, are borrowers in a joint syndicated senior unsecured credit facility totaling $2.675 billion (Global Credit Facility) which matures on February 2, 2024. This Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests.

Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on any borrowings made by the Fund and other costs incurred by the Fund, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all of the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in other expenses in the Consolidated Statement of Operations. During the period ended November 30, 2023, the Fund did not use the Global Credit Facility.

13. Fair Value Measurements

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

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

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

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

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

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

A summary of inputs used as of November 30, 2023, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:

	Level 1		Level 2			Level 3			Total
Assets:
Investments in Securities:a
Equity Investmentsb	$	167,933,705	$	14,639,905		$	8,583		$	182,582,193
Convertible Bonds		—		92,366,490			236,693			92,603,183
Convertible Bonds in Reorganization		—		117,725			16,528			134,253
Corporate Bonds and Notes		—		38,996,125			1,467,500			40,463,625
Corporate Bonds and Notes in Reorganization		—		1,559,964			—			1,559,964
Senior Floating Rate Interests		—		7,840,398			—			7,840,398
Foreign Government and Agency Securities		—		39,933,968			—			39,933,968
Foreign Government and Agency Securities in Reorganization		—		6,406,298			—			6,406,298
U.S. Government and Agency Securities		—		11,142,893			—			11,142,893
Options Purchased		1,352,072		67,291			—			1,419,363
Short Term Investments		213,637,381		2,988,118			—			216,625,499
Total Investments in Securities	$	382,923,158	$	216,059,175	c	$	1,729,304		$	600,711,637
Other Financial Instruments:
Futures Contracts	$	3,822,355	$	—		$	—		$	3,822,355
Forward Exchange Contracts		—		2,373,215			—			2,373,215
Swap Contracts		—		15,771,450			—			15,771,450
Total Other Financial Instruments	$	3,822,355	$	18,144,665		$	—		$	21,967,020
Liabilities:
Other Financial Instruments:
Options Written	$	382,840	$	—		$	—		$	382,840
Securities Sold Shorta		87,986,286		33,466,779	d		—			121,453,065
Futures Contracts		3,529,599		—			—			3,529,599
Forward Exchange Contracts		—		3,212,940			—			3,212,940
Swap Contracts		—		16,187,115			—	e		16,187,115
Unfunded Loan Commitments		—		40,305			—	e		40,305
Total Other Financial Instruments	$	91,898,725	$	52,907,139		$	—		$	144,805,864

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

^bIncludes common stocks and preferred stocks as well as other equity interests.

^cIncludes foreign securities valued at $13,401,731, 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.

^dIncludes foreign securities valued at $703,546, 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.

^eIncludes financial instruments determined to have no value.

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

14. New Accounting Pronouncements

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

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

15. Subsequent Events

The Fund has evaluated subsequent events through the issuance of the consolidated financial statements and determined that no events have occurred that require disclosure.

Abbreviations

Counterparty		Currency		Selected Portfolio
BNPP	BNP Paribas	AUD	Australian Dollar	ADR	American Depositary Receipt
BNYM	The Bank of New York Mellon Corp.	BRL	Brazilian Real	BRLCDI	Brazil Cetip Di Interbank Deposit Rate
BOFA	Bank of America, NA	CAD	Canadian Dollar	CAC	Cotation Assistee en Continu
BZWS	Barclays Bank PLC	CHF	Swiss Franc	CBOE	Chicago Board Options Exchange
CITI	Citigroup, NA	CLP	Chilean Peso	CIBOR	Copenhagen Interbank Offered Rate
DBAB	Deutsche Bank, AG	COP	Colombian Peso	CLP TNA	Chilean Peso Indice Camara Promedia Rate
GSCO	Goldman Sachs International	CZK	Czech Koruna	COLIBOR	Colombia Overnight Interbank Rate
JPHQ	JP Morgan Chase Bank, NA	DKK	Danish Krone	CZEONIA	Czech Overnight Index Average
MSCO	Morgan Stanley & Co. LLC	DOP	Dominican Peso	DAX	Deutscher Aktienindex
MSCS	Morgan Stanley Capital Services LLC	EUR	Euro	DJIA	Dow Jones Industrial Average
NOMU	Nomura International PLC	GBP	British Pound	EONIA	Euro OverNight Index Average
SEBA	Skandinaviska Enskilda Banken AB	HKD	Hong Kong Dollar	ETF	Exchange Traded Fund
		IDR	Indonesian Rupiah	EURIBOR	Euro Interbank Offered Rate
		JPY	Japanese Yen	FEDEF	Federal Funds Effective Rate
		MXN	Mexican Peso	FHLMC	Federal Home Loan Mortgage Corp.
Index		NOK	Norwegian Krone	FNMA	Federal National Mortgage Association
CDX.EM	CDX Emerging Markets Index	PEN	Peruvian Nuevo Sol	FRN	Floating Rate Note
CDX.NA.HY	CDX North America High Yield Index	PLN	Polish Zloty	FTSE	Financial Times Stock Exchange
CDX.NA.IG	CDX North America Investment Grade Index	SEK	Swedish Krona	HIBOR	Hong Kong Interbank Offered Rate
ITRX.EUR	iTraxx Europe Index	TWD	Taiwan Dollar	HONIX	Hong Kong Overnight Index Rate
ITRX.EUR. XOVER	iTraxx Europe Crossover Index	USD	United States Dollar	JIBAR	Johannesburg Interbank Agreed Rate
		UYU	Uruguayan Peso	JSE	Johannesburg Stock Exchange Index
		ZAR	South African Rand	KOSPI	Korean Composite Stock Price Index
				LIBOR	London InterBank Offered Rate
				MUTSCALM	Japan Unsecured Overnight Call Rate
				NIBOR	Norwegian Interbank Offered Rate
				OAT	Obligation Assumable by the Treasurer
				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
				SOFR	Secured Overnight Financing Rate
				SONIA	Sterling Overnight Index Average
				SPDR	Standard & Poor’s Depositary Receipt
				SPI	Swiss Performance Index
				STIBOR	Stockholm Interbank Offered Rate
				STR	Short Term Rate
				TOPIX	Tokyo Price Index
				TSX	Toronto Stock Exchange

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FRANKLIN ALTERNATIVE STRATEGIES FUNDS

K2 ALTERNATIVE STRATEGIES FUND

Shareholder Information

Proxy Voting Policies and Procedures

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

Quarterly Schedule of Investments

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

Householding of Reports and Prospectuses

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

franklintempleton.com Semiannual Report 103

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

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

	Semiannual Report K2 Alternative Strategies Fund
	Investment Manager	Distributor	Shareholder Services
	K2/D&S Management Co., L.L.C.	Franklin Distributors, LLC (800) DIAL BEN®/342-5236 franklintempleton.com	(800) 632-2301
© 2024 Franklin Templeton Investments. All rights reserved.			068 S 01/24

(b) Not applicable.

Item 2. Code of Ethics.

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

(c) N/A

(d) N/A

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

Item 3. Audit Committee Financial Expert.

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

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

Item 4. Principal Accountant Fees and Services.

Not Applicable.

Item 5. Audit Committee of Listed Registrants.

Not Applicable.

Item 6. Investments.

Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

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

Item 11. Controls and Procedures.

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

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

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

Not applicable.

Item  13. Exhibits.

(a)(1)  Code of Ethics

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

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

SIGNATURES

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

(Registrant)    Franklin Alternative Strategies Funds
By (Signature and Title)	/s/ Christopher Kings
	Christopher Kings, Chief Executive Officer – Finance and Administration

Date    1/29/2024                                                                  

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

By (Signature and Title)	/s/ Christopher Kings
	Christopher Kings, Chief Executive Officer – Finance and Administration

Date    1/29/2024                                                                  

By (Signature and Title)	/s/ Jeffrey White
	Jeffrey White, Chief Financial Officer, Chief Accounting Officer and Treasurer

Date    1/29/2024                                                                  

EX-99.CODE

Code of Conduct for Principal Executive and Financial Officers (SOX)

Covered Officers and Purpose of the Code

The Funds’ code of ethics (the “Code”) for investment companies within the Legg Mason family of mutual funds (each a “Fund,” and collectively, the “Funds”) applies to each Fund’s Principal Executive Officer, Principal Financial Officer, and Controller (the “Covered Officers”) for the purpose of promoting:

• honest and ethical conduct, including ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

• full, fair, accurate, timely and understandable disclosure in reports and documents a registrant files with, or submits to, the Securities and Exchange Commission (“SEC”) and in other public communications made by the Funds;

• compliance with applicable laws and governmental rules and regulations;

• prompt internal reporting of Code violations to appropriate persons identified in the Code; and

• accountability for adherence to the Code.

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

Covered Officers Should Ethically Handle Actual and Apparent Conflicts of Interest

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

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

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between a Fund and an investment adviser of which Covered Officers are also officers or employees. As a result, this Code recognizes Covered Officers will, in the normal course of their duties (whether formally for a Fund or for the adviser, or for both), be involved in establishing policies and

implementing decisions that will have different effects on the adviser and the Funds. The participation of Covered Officers in such activities is inherent in the contractual relationship between a Fund and an adviser and is consistent with the performance by Covered Officers of their duties as officers of the Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Funds’ Boards of Directors/Trustees (“Boards”) that Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes and that such service, by itself does not give rise to a conflict of interest.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of a Fund.

Each Covered Officer must:

• not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by a Fund;

• not cause a Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit the Fund; and,

• not use material non-public knowledge of portfolio transactions made or contemplated for the Trust to trade personally or cause others to trade personally in contemplation of the market effect of such transactions.

There are some actual or potential conflict of interest situations that, if material, should always be discussed with the Chief Compliance Officer (“CCO”) or designate that has been appointed by the Board of the Funds. Examples of these include:

• service as a director on the board of any public company (other than the Funds or their investment advisers or any affiliated person thereof);

• the receipt of any non-nominal gifts (i.e., in excess of $100);

• the receipt of any entertainment from any company with which a Fund has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;

• any ownership interest in, or any consulting or employment relationship with, any of the Funds’ service providers (other than their investment advisers, or principal underwriter, or any affiliated person thereof);

• a direct or indirect financial interest in commissions, transaction charges or spreads paid by a Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer’s employment, such as compensation or equity ownership.

Disclosure and Compliance

Each Covered Officer should:

• familiarize him or herself with the disclosure requirements generally applicable to the Funds;

• not knowingly misrepresent, or cause others to misrepresent, facts about a Fund to others, whether within or outside the Fund, including to the Fund’s Directors/Trustees and auditors, and to governmental regulators and self-regulatory organizations; and

• to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Funds and the advisers with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds.

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

Reporting and Accountability

Each Covered Officer must:

• upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he or she has received, read, and understands the Code;

• annually thereafter affirm to the Board that he or she has complied with the requirements of the Code;

• not retaliate against any other Covered Officer or any employee of the Funds or their advisers or any affiliated persons thereof or service providers of the Funds for reports of potential violations that are made in good faith;

• notify the CCO promptly if he or she knows of any violation of this Code, of which failure to do so is itself a violation; and

• report at least annually, if necessary, any employment position, including officer or directorships, held by the Covered Officer or any immediate family member of a Covered Officer with affiliated persons of or Service Providers to the Funds.

The CCO is responsible for applying this Code to specific situations in which questions are presented and has the authority to interpret this Code in any particular situation. However, approvals or waivers sought by a Covered Officer will be considered by the Compliance Committee or Audit Committee, (the “Committee”) responsible for oversight of the Fund’s code of ethics under Rule 17j-1 under the Investment Company Act. If a Covered Officer seeking an approval or waiver sits on the Committee, the Covered Person shall recuse him or herself from any such deliberations. Any approval or waiver granted by the Committee will be reported promptly to the Chair of the Audit Committees of the Funds.

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

• the CCO will take all appropriate action to investigate any potential violations reported to him, which actions may include the use of internal or external counsel, accountants or other personnel;

• if, after such investigation, the CCO believes that no violation has occurred, the CCO is not required to take any further action;

• any matter that the CCO believes is a violation will be reported to the Committee;

• if the Committee concurs that a violation has occurred, it will inform the Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Officer;

• the Committee will be responsible for granting waivers, as appropriate; and,

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

Other Policies and Procedures

This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Funds, the Funds’ advisers, principal underwriter, or other service providers govern or purport to govern the behavior or activities of Covered Officers subject to this Code, they are superseded by this Code to the extent they overlap or conflict with the provisions of this Code. The Funds’ and their investment advisers’ and principal underwriter’s codes of

ethics under Rule 17j-1 under the Investment Company Act are separate requirements applying to Covered Officers and others, and are not part of this Code.

Confidentiality

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the appropriate Board and Fund counsel, and the board of Directors/Trustees and fund counsel of any other investment company for whom a Covered Officer serves in a similar capacity.

Annual Report

No less than annually, the CCO shall provide the Board with a written report describing any issues having arisen since the prior year’s report.

Internal Use

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

EX-99.CERT

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

Sarbanes-Oxley Act

I, Christopher Kings, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date: 1/29/2024

/s/ Christopher Kings                            

Christopher Kings,

Chief Executive Officer – Finance and Administration

EX-99.906CERT

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

Sarbanes-Oxley Act

I, Jeffrey White, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date: 1/29/2024

/s/ Jeffrey White                      

Jeffrey White

Chief Financial Officer, Chief Accounting Officer and Treasurer

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

Sarbanes-Oxley Act

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

1. The periodic report on Form N-CSR of the Registrant for the period ended 11/30/2023 (the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

Dated: 1/29/2024

/s/ Christopher Kings               

Christopher Kings,

Chief Executive Officer – Finance and Administration

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

1. The periodic report on Form N-CSR of the Registrant for the period ended 11/30/2023 (the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

Dated: 1/29/2024

/s/ Jeffrey White                      

Jeffrey White

Chief Financial Officer, Chief Accounting Officer and Treasurer