FRANKLIN ALTERNATIVE STRATEGIES FUNDS

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

K2 Alternative Strategies Fund

	Country		Shares/       Warrants/       Rights		Value
Common Stocks and Other Equity Interests 27.1%
Aerospace & Defense 0.4%
aAerojet Rocketdyne Holdings Inc.		United States		24,843	$	1,399,655
Lockheed Martin Corp.		United States		93		44,106
Maxar Technologies Inc.		United States		42,021		2,164,081
aSatellogic Inc., 1/25/27, wts.		United States		2,058		501
						3,608,343
Air Freight & Logistics 0.3%
aAtlas Air Worldwide Holdings Inc.		United States		28,128		2,835,584
bUnited Parcel Service Inc., B		United States		210		38,323
						2,873,907
Auto Components 0.1%
aAmerican Axle & Manufacturing Holdings Inc.		United States		2,920		25,696
Autoliv Inc.		Sweden		7,982		738,973
a,cLuminar Technologies Inc.		United States		12,104		108,331
						873,000
Automobiles 0.1%
a,cLucid Group Inc.		United States		1,930		17,621
aTesla Inc.		United States		4,367		898,336
						915,957
Banks 0.6%
Banco Santander Mexico SA Institucion de Banca Multiple
Grupo Financiero, ADR		Mexico		62,868		249,246
Bank of America Corp.		United States		32,543		1,116,225
dFirst Citizens Bancshares Inc., A		United States		1,261		925,271
First Horizon Corp.		United States		124,278		3,078,366
						5,369,108
Beverages 0.3%
bThe Coca-Cola Co.		United States		616		36,658
Davide Campari-Milano NV		Italy		49,629		555,628
a,dMonster Beverage Corp.		United States		12,476		1,269,558
dPepsiCo Inc.		United States		7,594		1,317,787
						3,179,631
Biotechnology 1.4%
AbbVie Inc.		United States		352		54,173
aF-Star Therapeutics Inc.		United Kingdom		15,817		84,621
a,cGossamer Bio Inc.		United States		100		173
aHorizon Therapeutics PLC		United States		75,621		8,279,743
aIntercept Pharmaceuticals Inc.		United States		41,037		828,126
aKaryopharm Therapeutics Inc.		United States		1,000		3,020
aMyovant Sciences Ltd.		United States		143,108		3,858,192
						13,108,048
Capital Markets 0.7%
BlackRock Inc., A		United States		28		19,304
Canaccord Genuity Group Inc.		Canada		69,330		585,837
dCowen Inc., A		United States		73,448		2,863,737
aFocus Financial Partners Inc., A		United States		34,334		1,780,562
dMoody's Corp.		United States		4,812		1,396,202
bMorgan Stanley		United States		291		28,081
Raymond James Financial Inc.		United States		3,404		369,198
						7,042,921
Chemicals 0.5%
a,cAmyris Inc.		United States		3,000		3,750
The Sherwin-Williams Co.		United States		18,811		4,163,815

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

1

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Shares/         Warrants/       Rights		Value
Common Stocks and Other Equity Interests (continued)
Chemicals (continued)
aTronox Holdings PLC, A		United States		21,474	$	334,994
						4,502,559
Commercial Services & Supplies 0.9%
dCintas Corp.		United States		5,448		2,388,784
aDigital Transformation Opportunities Corp., A		United States		39,182		398,873
aDigital Transformation Opportunities Corp., A, 3/31/28, wts.		United States		9,795		632
aIaa Inc.		United States		37,348		1,527,907
dRepublic Services Inc., A		United States		30,305		3,907,223
aShapeways Holdings Inc., 10/31/26, wts.		United States		13,286		295
						8,223,714
Communications Equipment 0.0%†
bCisco Systems Inc.		United States		359		17,383
aRiverbed Technology Inc.		United States		5,404		1,378
						18,761
Construction & Engineering 0.9%
a,dMastec Inc.		United States		48,220		4,712,058
dQuanta Services Inc.		United States		23,624		3,812,914
						8,524,972
Construction Materials 0.0%†
aCemex SAB de CV, ADR		Mexico		74,259		369,810
Containers & Packaging 0.4%
cBall Corp.		United States		66,444		3,734,817
Packaging Corp. of America		United States		123		16,817
						3,751,634
Distributors 0.2%
Pool Corp.		United States		6,485		2,314,237
Diversified Financial Services 1.7%
a7GC & Co. Holdings Inc., A, 12/31/26, wts.		United States		3,244		308
aAequi Acquisition Corp., A		United States		4,844		48,682
aAequi Acquisition Corp., A, 11/30/27, wts.		United States		490		49
aAfrican Gold Acquisition Corp., A, 3/13/28, wts.		United States		4,750		—
aAgile Growth Corp., A, 12/31/27, wts.		United States		1,303		3
aAhren Acquisition Corp., A		Cayman Islands		51,027		529,150
aAnthemis Digital Acquisitions I Corp.		United States		17,623		182,927
aAnzu Special Acquisition Corp. I, A		United States		32,745		326,468
aApollo Strategic Growth Capital II, A		United States		49,289		500,787
aApollo Strategic Growth Capital II, A, 12/31/27, wts.		United States		5,294		995
aAPx Acquisition Corp. I		Mexico		13,835		144,852
aAres Acquisition Corp., A		United States		25,000		255,750
aAres Acquisition Corp., A, 12/31/27, wts.		United States		8,774		7,721
aAthena Consumer Acquisition Corp., A, 7/31/28, wts.		United States		13,194		796
a,dAthena Technology Acquisition Corp. II, A		United States		61,944		631,209
aAthena Technology Acquisition Corp. II, A, 10/17/28, wts.		United States		19,317		1,643
aAtlantic Coastal Acquisition Corp., A		United States		23,209		236,732
aAtlantic Coastal Acquisition Corp., A, 12/31/27, wts.		United States		5,443		435
aB Riley Principal 250 Merger Corp., A, 12/31/27, wts.		United States		2,651		358
aBlue Whale Acquisition Corp. I, A, 7/09/23, wts.		United Arab Emirates		1,005		185
aCapitalworks Emerging Markets Acquisition Corp., A		United States		15,474		158,454
aCapitalworks Emerging Markets Acquisition Corp., A, 4/27/28, wts.		United States		7,737		542
aCarney Technology Acquisition Corp. II, A, 11/30/27, wts.		United States		5,876		2
aCC Neuberger Principal Holdings III, 12/31/27, wts.		United States		7,027		1,054
aChurchill Capital Corp. VI, A		United States		24,149		242,214

2

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

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

3

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

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

4

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Shares/       Warrants/       Rights		Value
Common Stocks and Other Equity Interests (continued)
Diversified Financial Services (continued)
aVahanna Tech Edge Acquisition I Corp., A		United States		7,916	$	82,406
aVahanna Tech Edge Acquisition I Corp., A, 11/30/28, wts.		United States		3,958		262
aValor Latitude Acquisition Corp., A		United States		16,723		170,408
aValor Latitude Acquisition Corp., A, 12/31/28, wts.		United States		5,574		240
aVector Acquisition Corp. II, A		United States		8,707		88,811
aVMG Consumer Acquisition Corp., A		United States		2,210		22,785
aVMG Consumer Acquisition Corp., A, 7/03/23, wts.		United States		1,105		35
aWarburg Pincus Capital Corp. I, A, 12/31/27, wts.		Cayman Islands		249		—
aZimmer Energy Transition Acquisition Corp., A, 5/14/23, wts.		United States		2,381		436
						16,331,390
Diversified Telecommunication Services 0.1%
Vantage Towers AG		Germany		22,979		825,573
Electric Utilities 2.2%
Constellation Energy Corp.		United States		52,557		3,935,994
Duke Energy Corp.		United States		236		22,245
dEdison International		United States		27,645		1,830,375
aEnergy Harbor Corp.		United States		76,083		5,858,391
dNextEra Energy Inc.		United States		45,232		3,212,829
Origin Energy Ltd.		Australia		188,324		1,010,251
a,dPG&E Corp.		United States		114,546		1,789,209
PNM Resources Inc.		United States		60,816		2,979,984
						20,639,278
Electrical Equipment 0.6%
a,dArray Technologies Inc.		United States		91,194		1,708,976
Emerson Electric Co.		United States		184		15,219
a,dEnovix Corp.		United States		45,007		414,964
a,dFluence Energy Inc., A		United States		89,886		1,678,172
aNextracker Inc., A		United States		6,983		212,562
a,dShoals Technologies Group Inc., A		United States		5,209		127,829
a,dStem Inc.		United States		46,190		376,910
aSunrun Inc.		United States		32,692		785,916
						5,320,548
Electronic Equipment, Instruments & Components 0.2%
Hollysys Automation Technologies Ltd.		China		75,520		1,388,813
aMovella Holdings Inc., A, 12/31/27, wts.		United States		5,567		780
National Instruments Corp.		United States		12,460		629,355
						2,018,948
Energy Equipment & Services 0.0%†
aHelix Energy Solutions Group Inc.		United States		9,000		74,520
Entertainment 0.8%
b,dActivision Blizzard Inc.		United States		71,135		5,424,044
a,bManchester United PLC, A		United Kingdom		22,858		474,303
World Wrestling Entertainment Inc., A		United States		16,336		1,372,224
						7,270,571
Equity Real Estate Investment Trusts (REITs) 0.1%
American Tower Corp.		United States		134		26,533
a,cBraemar Hotels & Resorts Inc.		United States		47		219
First Capital Real Estate Investment Trust		Canada		5,276		68,981
Indus Realty Trust Inc.		United States		12,643		841,139
						936,872
Food & Staples Retailing 0.6%
Albertsons Cos. Inc.		United States		29,645		589,343
dCostco Wholesale Corp.		United States		10,199		4,938,152
The Kroger Co.		United States		5,437		234,552

5

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Shares/         Warrants/       Rights		Value
Common Stocks and Other Equity Interests (continued)
Food & Staples Retailing (continued)
Walmart Inc.		United States		226	$	32,121
						5,794,168
Food Products 0.2%
aBenson Hill Inc., 12/24/25, wts.		United States		5,669		1,077
Chocoladefabriken Lindt & Spruengli AG		Switzerland		77		843,585
The Hershey Co.		United States		5,303		1,263,811
						2,108,473
Health Care Equipment & Supplies 0.1%
Abbott Laboratories		United States		276		28,075
aCutera Inc.		United States		8,797		285,287
aGlobus Medical Inc., A		United States		3,184		185,754
						499,116
Health Care Providers & Services 0.0%†
Elevance Health Inc.		United States		63		29,589
Synlab AG		Germany		510		3,771
UnitedHealth Group Inc.		United States		60		28,557
						61,917
Health Care Technology 0.0%†
aHealth Catalyst Inc.		United States		1,300		18,148
Hotels, Restaurants & Leisure 0.4%
aAutogrill SpA		Italy		412,485		2,928,687
Domino's Pizza Inc.		United States		1,481		435,429
aF45 Training Holdings Inc.		United States		120,050		248,503
aHomeToGo SE, 12/31/25, wts.		Luxembourg		716		1
aSonder Holdings Inc., 1/31/28, wts.		United States		3,948		474
bStarbucks Corp.		United States		403		41,142
						3,654,236
Household Durables 0.3%
Panasonic Holdings Corp.		Japan		20,441		178,491
a,dSkyline Champion Corp.		United States		33,134		2,266,697
						2,445,188
Household Products 0.1%
The Procter & Gamble Co.		United States		340		46,770
Spectrum Brands Holdings Inc.		United States		14,182		907,932
						954,702
Independent Power & Renewable Electricity Producers 1.0%
The AES Corp.		United States		195,250		4,818,770
China Longyuan Power Group Corp. Ltd., H		China		122,989		150,869
China Power International Development Ltd.		China		386,483		153,261
China Resources Power Holdings Co. Ltd.		China		98,352		200,827
Clearway Energy Inc., A		United States		6,810		202,325
aFREYR Battery SA		Norway		72,084		654,523
aHuaneng Power International Inc., H		China		311,881		153,488
dNextEra Energy Partners LP		United States		28,262		1,872,640
a,dSunnova Energy International Inc.		United States		73,914		1,314,191
						9,520,894
Industrial Conglomerates 0.7%
General Electric Co.		United States		76,422		6,473,708
Toshiba Corp.		Japan		9,747		301,647
						6,775,355
Insurance 0.4%
aAon PLC, A		United States		6,261		1,903,657
Argo Group International Holdings Ltd.		United States		28,256		820,837

6

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Shares/         Warrants/       Rights		Value
Common Stocks and Other Equity Interests (continued)
Insurance (continued)
dW.R. Berkley Corp.		United States		17,781	$	1,176,924
						3,901,418
Interactive Media & Services 0.1%
aAlphabet Inc., A		United States		12,669		1,140,970
aMeta Platforms Inc., A		United States		583		101,990
aWejo Group Ltd., 11/18/26, wts.		United States		3,488		297
						1,243,257
Internet & Direct Marketing Retail 0.0%†
aAmazon.com Inc.		United States		912		85,938
aCazoo Group Ltd., 8/26/26, wts.		Cayman Islands		19,178		193
aLands' End Inc.		United States		15,960		121,296
						207,427
IT Services 0.8%
Accenture PLC, A		United States		87		23,103
aCore Scientific Inc., 1/19/27, wts.		United States		1,383		256
aEvo Payments Inc., A		United States		83,806		2,836,833
aGDS Holdings Ltd., ADR		China		43,141		830,464
dMasterCard Inc., A		United States		5,283		1,876,997
aMoneyGram International Inc.		United States		75,693		821,269
aPushpay Holdings Ltd.		New Zealand		749,847		588,811
aVnet Group Inc., ADR		China		40,295		159,971
						7,137,704
Leisure Products 0.0%†
aTonies SE, A, 4/30/26, wts.		Germany		41,605		11,001
Life Sciences Tools & Services 0.8%
Danaher Corp., W		United States		3,268		808,928
aMettler-Toledo International Inc.		United States		3,596		5,155,621
dThermo Fisher Scientific Inc.		United States		2,282		1,236,297
						7,200,846
Machinery 0.6%
dAltra Industrial Motion Corp.		United States		66,913		4,117,157
aBerkshire Grey Inc., 7/21/26, wts.		United States		23,782		4,982
Cummins Inc.		United States		71		17,259
Deere & Co.		United States		79		33,120
Fanuc Corp.		Japan		4,848		824,019
aFast Radius Inc., 2/11/28, wts.		United States		2,678		2
Hillenbrand Inc.		United States		14,039		661,799
a,cNikola Corp.		United States		33,653		74,710
						5,733,048
Media 1.0%
aAltice USA Inc., A		United States		29,227		115,739
aClear Channel Outdoor Holdings Inc., A		United States		154,479		273,428
Comcast Corp., A		United States		1,041		38,694
aInnovid Corp., A, 12/31/27, wts.		Israel		69		14
Shaw Communications Inc., B		Canada		262,642		7,608,817
Tegna Inc.		United States		71,705		1,247,667
Telenet Group Holding NV		Belgium		4,898		75,709
						9,360,068
Metals & Mining 1.2%
aIamgold Corp.		Burkina Faso		362,074		821,908
aNewcrest Mining Ltd.		Australia		60,548		934,068
Newmont Corp.		United States		480		20,933
Oz Minerals Ltd.		Australia		231,218		4,347,051

7

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Shares/         Warrants/       Rights		Value
Common Stocks and Other Equity Interests (continued)
Metals & Mining (continued)
Yamana Gold Inc.		Canada		988,278	$	5,040,218
						11,164,178
Multi-Utilities 0.3%
Algonquin Power & Utilities Corp.		Canada		52,455		400,572
Dominion Energy Inc.		United States		48,801		2,714,312
						3,114,884
Oil, Gas & Consumable Fuels 0.4%
aBattalion Oil Corp.		United States		3,790		34,148
California Resources Corp.		United States		3,913		165,129
Canadian Natural Resources Ltd.		Canada		2,814		159,019
Devon Energy Corp.		United States		2,799		150,922
Diamondback Energy Inc.		United States		1,778		249,951
EOG Resources Inc.		United States		1,313		148,395
eGazprom PJSC		Russia		615,160		—
dNew Fortress Energy Inc., A		United States		18,949		625,127
Occidental Petroleum Corp.		United States		29,876		1,749,539
Pioneer Natural Resources Co.		United States		509		102,009
Targa Resources Corp.		United States		6,090		451,269
a,dTellurian Inc.		United States		222,065		330,877
The Williams Cos. Inc.		United States		760		22,876
						4,189,261
Personal Products 0.4%
L'Oreal SA		France		8,679		3,430,574
Pharmaceuticals 0.1%
aAmryt Pharma PLC, ADR		United Kingdom		35,844		523,681
bBristol-Myers Squibb Co.		United States		305		21,033
Johnson & Johnson		United States		287		43,985
bMerck & Co. Inc.		United States		283		30,066
						618,765
Professional Services 0.1%
aAtlas Technical Consultants Inc.		United States		79,963		977,948
Real Estate Management & Development 0.0%†
a,cRedfin Corp.		United States		4,100		30,381
Road & Rail 1.0%
Canadian Pacific Railway Ltd.		Canada		49,408		3,752,044
dCSX Corp.		United States		108,045		3,294,292
d,eHertz Corp. Escrow		United States		1,982,000		—
dUnion Pacific Corp.		United States		11,369		2,356,566
						9,402,902
Semiconductors & Semiconductor Equipment 0.4%
Broadcom Inc.		United States		71		42,195
bMicrochip Technology Inc.		United States		459		37,193
bQualcomm Inc.		United States		735		90,794
bSilicon Motion Technology Corp., ADR		Taiwan		12,712		854,501
aSolarEdge Technologies Inc.		United States		5,684		1,807,057
aTower Semiconductor Ltd.		Israel		13,406		543,747
						3,375,487
Software 1.7%
a,eCoupa Software Inc.		United States		101,673		8,232,463
aDuck Creek Technologies Inc.		United States		4,911		93,014
Infomedia Ltd.		Australia		497,543		467,875
Intuit Inc.		United States		3,049		1,241,492
aLivevox Holdings Inc., 6/18/26, wts.		United States		23,891		4,812
aMagnet Forensics Inc.		Canada		31,498		1,021,463

8

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Shares/         Warrants/       Rights		Value
Common Stocks and Other Equity Interests (continued)
Software (continued)
dMicrosoft Corp.		United States		16,074	$	4,009,177
aMomentive Global Inc.		United States		24,628		169,933
aSalesforce Inc.		United States		1,698		277,810
aSplunk Inc.		United States		954		97,785
aSumo Logic Inc.		United States		33,391		396,351
aWorkiva Inc., A		United States		811		72,341
						16,084,516
Specialty Retail 0.7%
aCarvana Co., A		United States		1		10
The Home Depot Inc.		United States		15,338		4,548,330
a,bTravelcenters of America Inc.		United States		17,157		1,447,193
a,fWatches of Switzerland Group PLC, 144A		United Kingdom		108,921		1,089,691
						7,085,224
Technology Hardware, Storage & Peripherals 0.0%†
bApple Inc.		United States		847		124,856
aWestern Digital Corp.		United States		8,489		326,657
						451,513
Textiles, Apparel & Luxury Goods 0.2%
Hermes International		France		948		1,716,008
aLanvin Group Holdings Ltd., 12/14/27, wts.		Hong Kong		1,524		533
						1,716,541
Trading Companies & Distributors 0.3%
dHerc Holdings Inc.		United States		15,010		2,155,286
ITOCHU Corp.		Japan		5,200		155,431
Mitsubishi Corp.		Japan		9,900		336,314
Mitsui & Co. Ltd.		Japan		5,400		151,556
						2,798,587
Transportation Infrastructure 0.3%
aAtlas Corp.		Canada		194,952		2,994,463
Water Utilities 0.1%
Guangdong Investment Ltd.		China		1,312,087		1,325,918
Wireless Telecommunication Services 0.3%
aT-Mobile US Inc.		United States		2,837		403,364
dVodafone Group PLC, ADR		United Kingdom		165,741		1,983,920
						2,387,284
Total Common Stocks and Other Equity Interests (Cost $218,390,577)						255,869,694
Preferred Stocks 0.0%†
Communications Equipment 0.0%†
aRiverbed Technology Inc., pfd., A		United States		3,699		943
Gas Utilities 0.0%†
El Paso Energy Capital Trust I, 4.75%, pfd.		United States		114		5,278
Professional Services 0.0%†
Clarivate PLC, 5.25%, pfd.		United Kingdom		3,023		133,345
Thrifts & Mortgage Finance 0.0%†
FHLMC, 8.375%, pfd., Z		United States		8,177		17,335
FNMA, 8.25%, pfd., S		United States		15,150		33,936
						51,271
Total Preferred Stocks (Cost $397,924)						190,837

9

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Convertible Bonds 13.8%
Aerospace & Defense 0.2%
Kaman Corp., senior note, 3.25%, 5/01/24		United States		1,576,000		$	1,487,744
fVirgin Galactic Holdings Inc., senior note, 144A, 2.50%, 2/01/27		United States		192,000			116,736
							1,604,480
Airlines 0.7%
fAir France-KLM, senior note, Reg S, 0.125%, 3/25/26		France		32,034	EUR		579,518
American Airlines Group Inc., senior note, 6.50%, 7/01/25		United States		691,000			836,455
fCathay Pacific Finance III Ltd., senior note, Reg S, 2.75%, 2/05/26		Hong Kong		8,000,000	HKD		1,050,526
dCopa Holdings SA, senior note, 4.50%, 4/15/25		Panama		1,519,000			2,828,953
fGOL Equity Finance SA, senior note, 144A, 3.75%, 7/15/24		Brazil		1,248,000			677,554
Jetblue Airways Corp., senior note, 0.50%, 4/01/26		United States		691,000			535,834
Southwest Airlines Co., senior note, 1.25%, 5/01/25		United States		340,000			388,705
							6,897,545
Auto Components 0.0%†
fLuminar Technologies Inc., senior note, 144A, 1.25%, 12/15/26		United States		223,000			162,816
Automobiles 0.4%
fFisker Inc., senior note, 144A, 2.50%, 9/15/26		United States		860,000			462,800
dFord Motor Co., senior note, zero cpn., 3/15/26		United States		749,000			724,657
dLi Auto Inc., senior note, 0.25%, 5/01/28		China		810,000			893,835
fLucid Group Inc., senior note, 144A, 1.25%, 12/15/26		United States		817,000			494,285
NIO Inc., senior note, zero cpn., 2/01/26		China		290,000			267,543
Winnebago Industries Inc., senior note, 1.50%, 4/01/25		United States		576,000			670,680
							3,513,800
Banks 0.2%
Hope Bancorp Inc., senior bond, 2.00%, 5/15/38		United States		1,507,000			1,482,135
Biotechnology 0.8%
Apellis Pharmaceuticals Inc., senior note, 3.50%, 9/15/26		United States		519,000			964,042
fAvid SPV LLC, senior note, 144A, 1.25%, 3/15/26		United States		579,000			604,515
cBioMarin Pharmaceutical Inc., senior sub. note, 1.25%, 5/15/27		United States		555,000			570,609
dCoherus Biosciences Inc., senior sub. note, 1.50%, 4/15/26		United States		1,135,000			797,337
Dynavax Technologies Corp., senior note, 2.50%, 5/15/26		United States		1,111,000			1,373,752
Exact Sciences Corp., senior note, 0.375%, 3/15/27		United States		116,000			105,633
Gossamer Bio Inc., senior note, 5.00%, 6/01/27		United States		376,000			110,261
fHalozyme Therapeutics Inc., senior note, 144A, 1.00%, 8/15/28		United States		325,000			338,813
Insmed Inc., senior note, 0.75%, 6/01/28		United States		805,000			699,728
Intercept Pharmaceuticals Inc., senior secured note, 3.50%, 2/15/26		United States		114,000			145,074
Ionis Pharmaceuticals Inc., senior note, 0.125%, 12/15/24		United States		145,000			133,946
zero cpn., 4/01/26		United States		254,000			231,616
Karyopharm Therapeutics Inc., senior note, 3.00%, 10/15/25		United States		438,000			331,080
fPharming Group NV, senior note, Reg S, 3.00%, 1/21/25		Netherlands		400,000	EUR		389,234
dTravere Therapeutics Inc., senior note, 2.25%, 3/01/29		United States		633,000			612,111
							7,407,751
Building Products 0.0%†
fAxon Enterprise Inc., senior note, 144A, 0.50%, 12/15/27		United States		122,000			132,065
Chemicals 0.2%
Amyris Inc., senior note, 1.50%, 11/15/26		United States		870,000			271,751
fDanimer Scientific Inc., senior note, 144A, 3.25%, 12/15/26		United States		551,000			242,785
Livent Corp., senior note, 4.125%, 7/15/25		United States		324,000			902,016
							1,416,552
Construction & Engineering 0.1%
Granite Construction Inc., senior note, 2.75%, 11/01/24		United States		475,000			670,676
Consumer Finance 0.4%
Encore Capital Europe Finance Ltd., senior note, 4.50%, 9/01/23		United States		500,000			618,687

10

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Convertible Bonds (continued)
Consumer Finance (continued)
Encore Capital Group Inc., senior note, 3.25%, 10/01/25		United States		371,000		$	509,940
EZCORP Inc., senior note,
2.875%, 7/01/24		United States		618,000			667,944
f144A, 3.75%, 12/15/29		United States		582,000			585,834
PRA Group Inc., senior note, 3.50%, 6/01/23		United States		1,100,000			1,109,350
fZip Co. Ltd., senior note, Reg S, zero cpn., 4/23/28		Australia		800,000	AUD		131,888
							3,623,643
Diversified Consumer Services 0.2%
Chegg Inc., senior note,
0.125%, 3/15/25		United States		577,000			503,721
zero cpn., 9/01/26		United States		289,000			227,635
Marathon Digital Holdings Inc., senior note, 1.00%, 12/01/26		United States		202,000			71,682
fNexi SpA, senior note, Reg S, zero cpn., 2/24/28		Italy		500,000	EUR		383,657
Sabre GLBL Inc., senior note, 4.00%, 4/15/25		United States		288,000			288,382
							1,475,077
Diversified Financial Services 0.2%
Lendingtree Inc., senior note, 0.50%, 7/15/25		United States		1,286,000			1,015,940
Upstart Holdings Inc., senior note, 0.25%, 8/15/26		United States		731,000			475,150
fWisdomtree Inc., senior note, 144A, 5.75%, 8/15/28		United States		94,000			94,543
							1,585,633
Diversified Telecommunication Services 0.1%
fMatch Group Financeco 2 Inc., senior note, 144A, 0.875%, 6/15/26		United States		874,000			773,247
fRadius Global Infrastructure Inc., senior note, 144A, 2.50%, 9/15/26		United States		677,000			633,418
							1,406,665
Electric Utilities 0.0%†
fAlliant Energy Corp., senior note, 144A, 3.875%, 3/15/26		United States		66,000			65,835
fPPL Capital Funding Inc., senior note, 144A, 2.875%, 3/15/28		United States		105,000			103,420
fThe Southern Co., senior note, 144A, 3.875%, 12/15/25		United States		105,000			103,692
							272,947
Electrical Equipment 0.1%
Plug Power Inc., senior note, 3.75%, 6/01/25		United States		407,000			1,216,849
Electronic Equipment, Instruments & Components 0.1%
PAR Technology Corp., senior note, 1.50%, 10/15/27		United States		463,000			372,020
Vishay Intertechnology Inc., senior note, 2.25%, 6/15/25		United States		357,000			348,106
							720,126
Energy Equipment & Services 0.2%
dHelix Energy Solutions Group Inc., senior note, 6.75%, 2/15/26		United States		978,000			1,410,243
Transocean Inc., senior note, 4.625%, 9/30/29		United States		133,000			297,512
							1,707,755
Entertainment 0.4%
Cinemark Holdings Inc., senior note, 4.50%, 8/15/25		United States		1,137,000			1,371,679
Live Nation Entertainment Inc., senior note,
2.00%, 2/15/25		United States		115,000			112,527
c,f144A, 3.125%, 1/15/29		United States		347,000			344,398
d,fThe Marcus Corp., senior note, 144A, 5.00%, 9/15/25		United States		473,000			755,322
dSea Ltd., senior note,
2.375%, 12/01/25		Singapore		643,000			678,220
0.25%, 9/15/26		Singapore		588,000			447,174
							3,709,320
Equity Real Estate Investment Trusts (REITs) 0.2%
Braemar Hotels & Resorts Inc., senior note, 4.50%, 6/01/26		United States		641,000			633,473
fHat Holdings I LLC / Hat Holdings II LLC, senior note, 144A, zero cpn., 5/01/25		United States		579,000			548,963

11

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*		Value
Convertible Bonds (continued)
Equity Real Estate Investment Trusts (REITs) (continued)
dPebblebrook Hotel Trust, senior note, 1.75%, 12/15/26		United States		987,000	$	848,326
Summit Hotel Properties Inc., senior note, 1.50%, 2/15/26		United States		261,000		228,245
						2,259,007
Food & Staples Retailing 0.1%
fThe Chefs' Warehouse Inc., senior note, 144A, 2.375%, 12/15/28		United States		606,000		605,533
Food Products 0.0%†
fPost Holdings Inc., senior note, 144A, 2.50%, 8/15/27		United States		116,000		120,559
Health Care Equipment & Supplies 0.4%
Alphatec Holdings Inc., senior note, 0.75%, 8/01/26		United States		144,000		149,328
fConmed Corp., senior note, 144A, 2.25%, 6/15/27		United States		465,000		440,123
Cutera Inc., senior note,
2.25%, 3/15/26		United States		239,000		285,194
d,f144A, 2.25%, 6/01/28		United States		787,000		693,347
f144A, 4.00%, 6/01/29		United States		47,000		41,048
Envista Holdings Corp., senior note, 2.375%, 6/01/25		United States		115,000		218,730
fInteger Holdings Corp., senior note, 144A, 2.125%, 2/15/28		United States		10,000		10,705
Mesa Laboratories Inc., senior note, 1.375%, 8/15/25		United States		253,000		236,302
NuVasive Inc., senior note,
1.00%, 6/01/23		United States		688,000		679,400
0.375%, 3/15/25		United States		406,000		360,731
dVarex Imaging Corp., senior note, 4.00%, 6/01/25		United States		1,008,000		1,092,953
						4,207,861
Health Care Providers & Services 0.1%
Guardant Health Inc., senior note, zero cpn., 11/15/27		United States		110,000		75,570
Inotiv Inc., senior note, 3.25%, 10/15/27		United States		587,000		270,671
PetIQ Inc., A, senior note, 4.00%, 6/01/26		United States		641,000		532,604
						878,845
Health Care Technology 1.0%
8x8 Inc., senior note, 4.00%, 2/01/28		United States		481,000		487,313
Bandwidth Inc., senior note, 0.50%, 4/01/28		United States		966,000		627,900
Bilibili Inc., senior note, 0.50%, 12/01/26		China		115,000		97,232
Bill Holdings Inc., senior note, zero cpn., 12/01/25		United States		932,000		866,294
Blackline Inc., senior note,
0.125%, 8/01/24		United States		338,000		377,335
zero cpn., 3/15/26		United States		749,000		636,182
Cerence Inc., senior note, 3.00%, 6/01/25		United States		467,000		493,596
Cloudflare Inc., senior note, zero cpn., 8/15/26		United States		587,000		488,677
Confluent Inc., senior note, zero cpn., 1/15/27		United States		698,000		545,897
Digitalocean Holdings Inc., senior note, zero cpn., 12/01/26		United States		873,000		672,860
Evolent Health Inc., senior note, 1.50%, 10/15/25		United States		302,000		377,418
Five9 Inc., senior note, 0.50%, 6/01/25		United States		346,000		311,400
Health Catalyst Inc., senior note, 2.50%, 4/15/25		United States		691,000		651,661
Hubspot Inc., senior note, 0.375%, 6/01/25		United States		93,000		136,431
Livongo Health Inc., senior note, 0.875%, 6/01/25		United States		180,000		159,289
Model N Inc., senior note, 2.625%, 6/01/25		United States		115,000		136,390
Mongodb Inc., senior note, 0.25%, 1/15/26		United States		357,000		432,952
fNextgen Healthcare Inc., senior note, 144A, 3.75%, 11/15/27		United States		582,000		595,677
Nutanix Inc., senior note, 0.25%, 10/01/27		United States		383,000		327,356
Pagerduty Inc., senior note, 1.25%, 7/01/25		United States		230,000		242,880
Teladoc Health Inc., senior note, 1.25%, 6/01/27		United States		550,000		432,755
Unity Software Inc., senior note, zero cpn., 11/15/26		United States		810,000		619,245
						9,716,740
Hotels, Restaurants & Leisure 0.4%
Carnival Corp., senior note,
5.75%, 10/01/24		United States		311,000		403,678

12

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Convertible Bonds (continued)
Hotels, Restaurants & Leisure (continued)
Carnival Corp., senior note, (continued)
f144A, 5.75%, 12/01/27		United States		369,000		$	409,037
Marriott Vacations Worldwide Corp., senior note,
f144A, 3.25%, 12/15/27		United States		588,000			606,228
zero cpn., 1/15/26		United States		144,000			148,464
Penn Entertainment Inc., senior note, 2.75%, 5/15/26		United States		25,000			37,175
Royal Caribbean Cruises Ltd., senior note,
4.25%, 6/15/23		United States		231,000			248,978
2.875%, 11/15/23		United States		418,000			442,662
f144A, 6.00%, 8/15/25		United States		867,000			1,408,008
							3,704,230
Household Durables 0.0%†
Lci Industries, senior note, 1.125%, 5/15/26		United States		288,000			262,800
Independent Power & Renewable Electricity Producers 0.0%†
c,fSunnova Energy International Inc., senior note, 144A, 2.625%, 2/15/28		United States		481,000			379,175
Interactive Media & Services 0.2%
Snap Inc., senior note,
0.25%, 5/01/25		United States		230,000			215,855
0.75%, 8/01/26		United States		349,000			311,171
zero cpn., 5/01/27		United States		175,000			126,612
0.125%, 3/01/28		United States		1,105,000			776,263
							1,429,901
Internet & Direct Marketing Retail 1.1%
Airbnb Inc., senior note, zero cpn., 3/15/26		United States		587,000			506,874
fCornwall Jersey Ltd., senior note, Reg S, 0.75%, 4/16/26		United Kingdom		300,000	GBP		243,577
fDelivery Hero AG, senior note, Reg S,
1.50%, 1/15/28		South Korea		800,000	EUR		576,948
A, 1.00%, 4/30/26		South Korea		600,000	EUR		497,820
B, 2.125%, 3/10/29		South Korea		100,000	EUR		69,055
fDelivery Hero SE, senior note, Reg S, 1.00%, 1/23/27		South Korea		200,000	EUR		162,990
Etsy Inc., senior note,
0.125%, 10/01/26		United States		174,000			268,047
0.25%, 6/15/28		United States		326,000			273,539
cFiverr International Ltd., senior note, zero cpn., 11/01/25		United States		989,000			826,551
dFubotv Inc., senior note, 3.25%, 2/15/26		United States		104,000			51,325
Groupon Inc., senior note, 1.125%, 3/15/26		United States		369,000			210,528
fJust Eat Takeaway.com NV, senior note, Reg S,
1.25%, 4/30/26		United Kingdom		600,000	EUR		533,405
B, 0.625%, 2/09/28		United Kingdom		700,000	EUR		501,277
dMagnite Inc., senior note, 0.25%, 3/15/26		United States		320,000			256,583
Mercadolibre Inc., senior note, 2.00%, 8/15/28		Brazil		185,000			519,480
Okta Inc., senior note, 0.125%, 9/01/25		United States		873,000			761,692
fPorch Group Inc., senior note, 144A, 0.75%, 9/15/26		United States		1,428,000			886,647
Q2 Holdings Inc., senior note, 0.75%, 6/01/26		United States		463,000			393,550
The Realreal Inc., senior note, 1.00%, 3/01/28		United States		557,000			213,777
Spotify USA Inc., senior note, zero cpn., 3/15/26		United States		791,000			652,575
Techtarget Inc., senior note, zero cpn., 12/15/26		United States		452,000			353,690
Wayfair Inc., senior note,
1.125%, 11/01/24		United States		230,000			204,125
0.625%, 10/01/25		United States		107,000			80,477
1.00%, 8/15/26		United States		331,000			228,809
f144A, 3.25%, 9/15/27		United States		758,000			699,634
Zillow Group Inc., senior note,
0.75%, 9/01/24		United States		575,000			656,938

13

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*		Value
Convertible Bonds (continued)
Internet & Direct Marketing Retail (continued)
Zillow Group Inc., senior note, (continued)
1.375%, 9/01/26		United States		15,000	$	17,362
						10,647,275
IT Services 0.5%
3d Systems Corp., senior note, zero cpn., 11/15/26		United States		174,000		128,651
fLumentum Holdings Inc., senior note, 144A, 0.50%, 6/15/28		United States		115,000		87,126
Mitek Systems Inc., senior note, 0.75%, 2/01/26		United States		933,000		762,410
cRapid7 Inc., senior note, 0.25%, 3/15/27		United States		406,000		359,194
fRepay Holdings Corp., A, senior note, 144A, zero cpn., 2/01/26		United States		577,000		459,004
Shift4 Payments Inc., senior note,
0.50%, 8/01/27		United States		58,000		50,663
dzero cpn., 12/15/25		United States		816,000		871,080
dShopify Inc., senior note, 0.125%, 11/01/25		Canada		645,000		550,185
Zscaler Inc., senior note, 0.125%, 7/01/25		United States		872,000		971,844
						4,240,157
Leisure Products 0.3%
NCL Corp. Ltd., senior note,
6.00%, 5/15/24		United States		291,000		382,374
5.375%, 8/01/25		United States		357,000		407,337
1.125%, 2/15/27		United States		739,000		554,657
2.50%, 2/15/27		United States		599,000		472,990
Peloton Interactive Inc., senior note, zero cpn., 2/15/26		United States		333,000		261,345
Topgolf Callaway Brands Corp., senior note, 2.75%, 5/01/26		United States		581,000		848,623
						2,927,326
Machinery 0.2%
Bloom Energy Corp., senior note, 2.50%, 8/15/25		United States		961,000		1,408,826
fDesktop Metal Inc., senior note, 144A, 6.00%, 5/15/27		United States		461,000		475,291
The Greenbrier Cos. Inc., senior note, 2.875%, 4/15/28		United States		406,000		347,942
						2,232,059
Media 0.6%
Cable One Inc., senior note, zero cpn., 3/15/26		United States		5,000		3,943
DISH Network Corp.,
senior bond, 3.375%, 8/15/26		United States		2,094,000		1,348,703
senior note, 2.375%, 3/15/24		United States		752,000		693,520
senior note, zero cpn., 12/15/25		United States		670,000		430,476
fLiberty Broadband Corp., senior bond, 144A, 3.125%, 3/31/53		United States		670,000		658,610
Liberty Interactive LLC,
senior bond, 4.00%, 11/15/29		United States		1,448,000		514,040
senior note, 3.75%, 2/15/30		United States		1,969,000		689,150
fLiberty Media Corp., senior bond, 144A,
2.125%, 3/31/48		United States		788,000		750,964
d2.75%, 12/01/49		United States		766,000		692,464
						5,781,870
Metals & Mining 0.5%
ATI Inc., senior note, 3.50%, 6/15/25		United States		437,000		1,168,538
Century Aluminum Co., senior note, 2.75%, 5/01/28		United States		514,000		465,941
d,fIvanhoe Mines Ltd., senior note, 144A, 2.50%, 4/15/26		Canada		465,000		595,353
Lithium Americas Corp., senior note, 1.75%, 1/15/27		Canada		262,000		223,776
fMP Materials Corp., senior note, 144A, 0.25%, 4/01/26		United States		463,000		476,460
U.S. Steel Corp., senior note, 5.00%, 11/01/26		United States		698,000		1,647,629
Xometry Inc., senior note, 1.00%, 2/01/27		United States		521,000		445,455
						5,023,152
Mortgage Real Estate Investment Trusts (REITs) 0.6%
fArbor Realty Trust Inc., senior note, 144A, 7.50%, 8/01/25		United States		529,000		546,457
KKR Real Estate Finance Trust Inc., senior note, 6.125%, 5/15/23		United States		252,000		250,582

14

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Convertible Bonds (continued)
Mortgage Real Estate Investment Trusts (REITs) (continued)
PennyMac Corp., senior note,
5.50%, 11/01/24		United States		570,000		$	535,088
d5.50%, 3/15/26		United States		1,197,000			1,074,906
Redwood Trust Inc., senior note,
4.75%, 8/15/23		United States		2,572,000			2,565,570
f144A, 7.75%, 6/15/27		United States		522,000			474,041
Two Harbors Investment Corp., senior note, 6.25%, 1/15/26		United States		657,000			588,237
							6,034,881
Oil, Gas & Consumable Fuels 0.2%
Array Technologies Inc., senior note, 1.00%, 12/01/28		United States		644,000			647,542
Enphase Energy Inc., senior note, zero cpn.,
3/01/26		United States		407,000			413,919
3/01/28		United States		144,000			149,190
cSolaredge Technologies Inc., senior note, zero cpn., 9/15/25		United States		311,000			412,542
							1,623,193
Personal Products 0.1%
c,fThe Beauty Health Co., senior note, 144A, 1.25%, 10/01/26		United States		714,000			592,174
Pharmaceuticals 0.6%
Aurora Cannabis Inc., senior note, 5.50%, 2/28/24		Canada		394,000			378,240
Avadel Finance Cayman Ltd., senior note, 4.50%, 10/02/23		United States		597,000			668,123
fCollegium Pharmaceutical Inc., senior note, 144A, 2.875%, 2/15/29		United States		635,000			614,039
fHerbalife Nutrition Ltd., senior note, 144A, 4.25%, 6/15/28		United States		290,000			393,240
fInnoviva Inc., senior note, 144A, 2.125%, 3/15/28		United States		866,000			693,666
Mannkind Corp., senior note, 2.50%, 3/01/26		United States		1,553,000			1,884,512
Pacira Biosciences Inc., senior note, 0.75%, 8/01/25		United States		461,000			431,323
dRevance Therapeutics Inc., senior note, 1.75%, 2/15/27		United States		701,000			902,187
							5,965,330
Professional Services 0.1%
Upwork Inc., senior note, 0.25%, 8/15/26		United States		625,000			488,752
Real Estate Management & Development 0.4%
fOpendoor Technologies Inc., senior note, 144A, 0.25%, 8/15/26		United States		2,572,000			1,207,393
Realogy Group LLC / Realogy Co.-Issuer Corp., senior note,
0.25%, 6/15/26		United States		1,580,000			1,108,371
Redfin Corp., senior note,
0.50%, 4/01/27		United States		962,000			588,154
zero cpn., 10/15/25		United States		424,000			305,280
fStoragevault Canada Inc., senior note, 144A, 5.00%, 3/31/28		Canada		184,000	CAD		135,522
							3,344,720
Road & Rail 0.0%†
Uber Technologies Inc., senior note, zero cpn., 12/15/25		United States		428,000			373,960
Semiconductors & Semiconductor Equipment 0.5%
fAms-Osram AG, senior note, Reg S, 2.125%, 11/03/27		Austria		900,000	EUR		691,101
Microchip Technology Inc., senior sub. bond, 1.625%, 2/15/27		United States		288,000			661,138
fOn Semiconductor Corp., senior note, 144A, 0.50%, 3/01/29		United States		52,000			52,535
fSemtech Corp., senior note, 144A, 1.625%, 11/01/27		United States		577,000			617,089
Smart Global Holdings Inc., senior note, 2.00%, 2/01/29		United States		145,000			146,740
Veeco Instruments Inc., senior note, 3.75%, 6/01/27		United States		1,229,000			2,089,949
Wolfspeed Inc., senior note,
0.25%, 2/15/28		United States		101,000			89,132
f144A, 1.875%, 12/01/29		United States		80,000			75,760
							4,423,444
Software 0.7%
fAltair Engineering Inc., senior note, 144A, 1.75%, 6/15/27		United States		291,000			317,190
Alteryx Inc., senior note, 1.00%, 8/01/26		United States		185,000			158,452

15

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Convertible Bonds (continued)
Software (continued)
Bentley Systems Inc., senior note, 0.375%, 7/01/27		United States		353,000		$	294,931
Datadog Inc., senior note, 0.125%, 6/15/25		United States		345,000			379,672
fDye & Durham Ltd., senior note, 144A, 3.75%, 3/01/26		Canada		1,191,000	CAD		686,582
Envestnet Inc., senior note, 0.75%, 8/15/25		United States		461,000			422,967
Everbridge Inc., senior note,
0.125%, 12/15/24		United States		218,000			198,093
zero cpn., 3/15/26		United States		285,000			241,538
dGuidewire Software Inc., senior note, 1.25%, 3/15/25		United States		473,000			447,931
di3 Verticals LLC, senior note, 1.00%, 2/15/25		United States		577,000			544,183
Palo Alto Networks Inc., senior note, 0.75%, 7/01/23		United States		521,000			1,101,402
Ringcentral Inc., senior note, zero cpn.,
3/15/26		United States		612,000			499,163
A, 3/01/25		United States		749,000			661,929
Splunk Inc., senior note,
1.125%, 9/15/25		United States		588,000			578,004
1.125%, 6/15/27		United States		253,000			217,400
Workiva Inc., senior note, 1.125%, 8/15/26		United States		87,000			111,317
							6,860,754
Specialty Retail 0.4%
cBurlington Stores Inc., senior note, 2.25%, 4/15/25		United States		869,000			1,027,049
The Cheesecake Factory Inc., senior note, 0.375%, 6/15/26		United States		233,000			198,341
dGuess? Inc., senior note, 2.00%, 4/15/24		United States		1,216,000			1,315,104
National Vision Holdings Inc., senior note, 2.50%, 5/15/25		United States		835,000			1,103,605
fShift Technologies Inc., senior note, 144A, 4.75%, 5/15/26		United States		1,014,000			120,463
							3,764,562
Transportation Infrastructure 0.3%
dEagle Bulk Shipping Inc., senior note, 5.00%, 8/01/24		United States		1,311,000			2,734,676
Total Convertible Bonds (Cost $136,726,168)							129,628,771
Corporate Bonds and Notes 13.3%
Aerospace & Defense 0.2%
The Boeing Co., senior bond, 3.375%, 6/15/46		United States		50,000			33,402
Embraer Netherlands Finance BV, senior bond, 5.05%, 6/15/25		Brazil		80,000			77,173
Raytheon Technologies Corp., senior note, 5.00%, 2/27/26		United States		280,000			279,651
fST Engineering Urban Solutions USA Inc., senior note, Reg S, 3.75%, 5/05/32		Singapore		400,000			363,760
fTransDigm Inc., senior secured note, 144A,
8.00%, 12/15/25		United States		75,000			76,720
g6.75%, 8/15/28		United States		602,000			599,743
f,gTriumph Group Inc., senior secured note, 144A, 9.00%, 3/15/28		United States		342,000			342,000
							1,772,449
Airlines 0.1%
fAllegiant Travel Co., senior secured note, 144A, 7.25%, 8/15/27		United States		214,000			210,448
United Airlines Pass-Through Trust,
B, 4.875%, 1/15/26		United States		36,175			35,099
2019-2, B, 3.50%, 5/01/28		United States		293,226			265,593
							511,140
Automobiles 0.3%
Ford Motor Credit Co. LLC, senior note,
6.95%, 3/06/26		United States		200,000			200,360
E, 6.86%, 6/05/26		United States		200,000	GBP		240,624
d,fFrontier Communications Holdings LLC, senior secured note,
144A, 8.75%, 5/15/30		United States		1,218,000			1,232,799
General Motors Co., senior bond,
c5.60%, 10/15/32		United States		310,000			295,077

16

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*		Value
Corporate Bonds and Notes (continued)
Automobiles (continued)
General Motors Co., senior bond, (continued)
5.20%, 4/01/45		United States		30,000	$	24,780
5.95%, 4/01/49		United States		90,000		80,892
General Motors Financial Co. Inc., junior sub. note,
c,hA, 5.75% to 9/30/27, FRN thereafter, Perpetual		United States		30,000		27,417
c,hB, 6.50% to 9/30/28, FRN thereafter, Perpetual		United States		75,000		70,406
senior note, 6.00%, 1/09/28		United States		175,000		176,244
Toyota Motor Credit Corp.,
senior bond, 4.70%, 1/12/33		United States		200,000		196,342
senior note, 4.80%, 1/10/25		United States		415,000		413,002
						2,957,943
Banks 1.5%
Banco Santander SA, senior note, 5.147%, 8/18/25		Spain		200,000		197,622
fBank Rakyat Indonesia Persero TBK PT, senior note, Reg S, 4.625%, 7/20/23		Indonesia		400,000		398,812
Barclays PLC, sub. bond, 3.564% to 9/23/30, FRN thereafter, 9/23/35		United Kingdom		525,000		418,976
hjunior sub. note, 4.375% to 3/15/28, FRN thereafter, Perpetual		United Kingdom		210,000		165,453
fCanara Bank, E, senior note, Reg S, 3.875%, 3/28/24		India		466,000		455,650
fCredit Suisse Group AG, 144A,
senior bond, 9.016% to 11/15/32, FRN thereafter, 11/15/33		Switzerland		285,000		299,543
senior note, 2.193% to 6/05/25, FRN thereafter, 6/05/26		Switzerland		250,000		215,440
Deutsche Bank AG, sub. bond, 3.729% to 10/14/30, FRN thereafter, 1/14/32		Germany		400,000		313,972
hHSBC Holdings PLC, junior sub note,
6.25% to 3/23/23, FRN thereafter, Perpetual		United Kingdom		3,300,000		3,303,690
8.00% to 3/07/28, FRN thereafter, Perpetual		United Kingdom		300,000		302,550
Keybank NA, senior note, 4.70%, 1/26/26		United States		810,000		798,588
Mizuho Financial Group Inc., senior note, 3.549%, 3/05/23		Japan		200,000		199,968
fSociete Generale SA, 144A,
senior bond, 6.691% to 1/10/33, FRN thereafter, 1/10/34		France		200,000		204,262
sub. bond, 3.653% to 7/08/30, FRN thereafter, 7/08/35		France		200,000		161,135
fStandard Chartered PLC,
sub. bond, 144A, 3.265% to 11/18/30, FRN thereafter, 2/18/36		United Kingdom		255,000		205,673
hsenior bond, Reg S, 7.75% to 4/02/23, FRN thereafter, Perpetual		United Kingdom		3,300,000		3,291,527
fState Bank of India, E, senior note, Reg S, 4.50%, 9/28/23		India		2,300,000		2,284,379
Sumitomo Mitsui Financial Group Inc., senior note, 5.464%, 1/13/26		Japan		805,000		803,552
						14,020,792
Beverages 0.0%†
PepsiCo Inc., senior note, 4.55%, 2/13/26		United States		405,000		402,679
Biotechnology 0.1%
gAmgen Inc., senior note, 5.25%, 3/02/25		United States		610,000		608,749
Capital Markets 0.5%
Ares Capital Corp.,
senior bond, 3.20%, 11/15/31		United States		105,000		80,188
senior note, 2.875%, 6/15/28		United States		475,000		390,530
Barings BDC Inc., senior note, 3.30%, 11/23/26		United States		125,000		110,534

17

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*		Value
Corporate Bonds and Notes (continued)
Capital Markets (continued)
Blackstone Private Credit Fund, senior note,
2.625%, 12/15/26		United States		298,000	$	253,319
3.25%, 3/15/27		United States		289,000		249,080
Blackstone Secured Lending Fund, senior note, 2.125%, 2/15/27		United States		190,000		160,110
FS KKR Capital Corp., senior note, 3.125%, 10/12/28		United States		150,000		123,481
fHuarong Finance 2017 Co. Ltd., senior bond, Reg S,
4.75%, 4/27/27		China		200,000		173,712
5.50%, 4/27/47		China		200,000		145,527
fHuarong Finance 2019 Co. Ltd., senior bond, Reg S,
E, 4.50%, 5/29/29		China		1,200,000		975,000
E, 3.875%, 11/13/29		China		500,000		387,026
E, 3.625%, 9/30/30		China		600,000		443,278
fHuarong Finance II Co. Ltd., senior bond, Reg S,
5.00%, 11/19/25		China		500,000		460,180
EMTN, 4.875%, 11/22/26		China		200,000		176,648
Oaktree Specialty Lending Corp., senior note, 2.70%, 1/15/27		United States		45,000		39,101
Owl Rock Capital Corp., senior note, 2.875%, 6/11/28		United States		250,000		200,566
						4,368,280
Chemicals 0.0%†
fAshland LLC, senior bond, 144A, 3.375%, 9/01/31		United States		120,000		95,707
fBraskem Netherlands Finance BV, senior bond, 144A, 4.50%, 1/31/30		Brazil		200,000		168,718
						264,425
Communications Equipment 0.1%
fCommScope Inc.,144A,
senior note, 7.125%, 7/01/28		United States		250,000		197,187
senior secured note, 4.75%, 9/01/29		United States		60,000		48,962
fCommScope Technologies LLC, senior bond, 144A, 5.00%, 3/15/27		United States		305,000		232,860
fHTA Group Ltd., senior note, 144A, 7.00%, 12/18/25		Tanzania		325,000		309,823
						788,832
Construction & Engineering 0.0%†
fGMR Hyderabad International Airport Ltd., senior secured note, 144A, 4.75%, 2/02/26		India		400,000		375,683
Construction Materials 0.1%
fCemex SAB de CV, 144A,senior secured bond, 5.20%, 9/17/30		Mexico		455,000		416,335
hsub. note, 5.125% to 6/08/26, FRN thereafter, Perpetual		Mexico		410,000		372,690
fJeld-Wen Inc., 144A,
senior note, 4.625%, 12/15/25		United States		22,000		19,791
senior secured note, 6.25%, 5/15/25		United States		29,000		28,233
						837,049
Consumer Finance 0.2%
hAlly Financial Inc., C, junior sub. note, 4.70% to 5/15/28, FRN thereafter, Perpetual		United States		270,000		199,337
fMuthoot Finance Ltd., senior secured note, Reg S, 4.40%, 9/02/23		India		1,600,000		1,576,800
c,fNatura Cosmeticos SA, senior note, 144A, 4.125%, 5/03/28		Brazil		245,000		190,562
						1,966,699
Containers & Packaging 0.1%
fMauser Packaging Solutions Holding Co., senior secured note, 144A, 7.875%, 8/15/26		United States		470,000		473,375
Diversified Consumer Services 0.2%
fAllied Universal Holdco LLC / Allied Universal Finance Corp., senior secured note, 144A, 6.625%, 7/15/26		United States		117,000		111,251
fAramark Services Inc., senior note, 144A, 6.375%, 5/01/25		United States		60,000		59,681

18

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Corporate Bonds and Notes (continued)
Diversified Consumer Services (continued)
Global Payments Inc., senior note,
2.90%, 11/15/31		United States		15,000		$	11,906
c5.40%, 8/15/32		United States		10,000			9,568
fGLP China Holdings Ltd., E, senior note, Reg S, 2.95%, 3/29/26		China		200,000			154,000
fThe Hertz Corp., senior note, 144A, 4.625%, 12/01/26		United States		484,000			431,545
d,fMoneyGram International Inc., senior secured note, 144A, 5.375%, 8/01/26		United States		994,000			1,005,349
fSabre GLBL Inc., senior secured note, 144A, 7.375%, 9/01/25		United States		416,000			389,916
							2,173,216
Diversified Financial Services 1.0%
AerCap Ireland Capital DAC / AerCap Global Aviation Trust,senior note, 3.00%, 10/29/28		Ireland		155,000			132,129
American Express Co., senior note, 4.90%, 2/13/26		United States		235,000			233,239
fAntares Holdings LP, senior note, 144A,
2.75%, 1/15/27		Canada		250,000			206,970
3.75%, 7/15/27		Canada		250,000			211,001
fAviation Capital Group LLC, senior note, 144A, 1.95%, 1/30/26		United States		25,000			22,097
fCDBL Funding 1, E, senior note, Reg S, 3.00%, 4/24/23		China		500,000			498,152
fChina Cinda 2020 I Management Ltd., E, senior note, Reg S, 2.00%, 3/18/23		China		600,000			598,956
fFinanciera de Desarrollo Territorial SA Findeter, senior bond, 144A, 7.875%, 8/12/24		Colombia		393,000,000	COP		73,749
OneMain Finance Corp., senior note, 3.50%, 1/15/27		United States		175,000			147,158
fRec Ltd., senior note, Reg S,
4.75%, 5/19/23		India		3,229,000			3,219,797
5.25%, 11/13/23		India		1,870,000			1,859,930
G, 3.375%, 7/25/24		India		300,000			289,152
fRocket Mortgage LLC / Rocket Mortgage Co.-Issuer Inc., 144A,
senior bond, 3.875%, 3/01/31		United States		5,000			3,901
senior bond, 4.00%, 10/15/33		United States		1,015,000			751,300
senior note, 2.875%, 10/15/26		United States		935,000			807,789
senior note, 3.625%, 3/01/29		United States		40,000			32,196
							9,087,516
Diversified Telecommunication Services 0.2%
fIHS Holding Ltd., senior note, 144A, 5.625%, 11/29/26		Nigeria		255,000			218,535
fKenbourne Invest SA, senior note, 144A, 6.875%, 11/26/24		Chile		200,000			180,970
f,iLigado Networks LLC, senior secured note, 144A, PIK, 15.50%, 11/01/23		United States		1,052,000			302,450
fLorca Telecom Bondco SA, senior secured note, Reg S, 4.00%, 9/18/27		Spain		200,000	EUR		191,200
fVMED O2 UK Financing I PLC, Reg S,
senior secured bond, 4.50%, 7/15/31		United Kingdom		465,000	GBP		440,469
senior secured note, 4.00%, 1/31/29		United Kingdom		210,000	GBP		206,863
fVodafone Group PLC, junior sub. bond, Reg S, 3.00% to 5/27/30, FRN thereafter, 8/27/80		United Kingdom		100,000	EUR		85,018
							1,625,505
Electric Utilities 0.3%
d,eBruce Mansfield Escrow, senior bond, zero cpn., 6/01/34		United States		6,394,000			23,977
hEdison International, A, junior sub. note, 5.375% to 3/15/26, FRN thereafter, Perpetual		United States		50,000			45,642
fEP Infrastructure AS, Reg S,
senior bond, 1.816%, 3/02/31		Czech Republic		100,000	EUR		69,283
senior note, 1.659%, 4/26/24		Czech Republic		147,000	EUR		144,155
senior note, 1.698%, 7/30/26		Czech Republic		514,000	EUR		447,838
Nextera Energy Capital Holdings Inc., senior note, 6.051%, 3/01/25		United States		205,000			206,358

19

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Corporate Bonds and Notes (continued)
Electric Utilities (continued)
Pacific Gas and Electric Co.,
dsecured bond, 4.95%, 7/01/50		United States		1,680,321		$	1,329,674
secured bond, 3.50%, 8/01/50		United States		328,000			206,466
senior bond, 4.30%, 3/15/45		United States		70,000			50,588
							2,523,981
Energy Equipment & Services 0.3%
fShelf Drilling Holdings Ltd., senior note, 144A, 8.25%, 2/15/25		United Arab Emirates		1,040,000			973,700
fTransocean Inc., 144A,
dsenior note, 7.25%, 11/01/25		United States		1,656,000			1,566,460
senior note, 8.00%, 2/01/27		United States		277,000			245,493
senior secured note, 8.75%, 2/15/30		United States		76,000			77,421
							2,863,074
Entertainment 0.0%†
Netflix Inc., senior bond,
4.875%, 4/15/28		United States		15,000			14,556
5.875%, 11/15/28		United States		290,000			294,350
6.375%, 5/15/29		United States		60,000			62,407
f144A, 5.375%, 11/15/29		United States		30,000			29,557
c,f144A, 4.875%, 6/15/30		United States		55,000			52,849
							453,719
Equity Real Estate Investment Trusts (REITs) 0.2%
National Health Investors Inc., senior bond, 3.00%, 2/01/31		United States		30,000			22,529
SBA Communications Corp., senior note, 3.875%, 2/15/27		United States		10,000			9,059
fUniti Group LP / Uniti Group Finance Inc. / CSL Capital LLC,
senior secured note, 144A, 10.50%, 2/15/28		United States		791,000			791,890
fVici Properties LP / Vici Note Co. Inc., 144A,
senior bond, 4.125%, 8/15/30		United States		593,000			512,757
senior note, 4.625%, 6/15/25		United States		100,000			96,058
senior note, 4.50%, 9/01/26		United States		570,000			532,338
							1,964,631
Food & Staples Retailing 0.1%
fJBS USA Lux SA / JBS USA Food Co. / JBS USA Finance Inc., senior note, 144A, 3.00%, 2/02/29		United States		35,000			29,143
fMarket Bidco Finco PLC, senior note, 144A, 5.50%, 11/04/27		United Kingdom		1,000,000			932,149
							961,292
Food Products 0.0%†
fPost Holdings Inc., senior bond, 144A, 5.75%, 3/01/27		United States		65,000			63,363
Gas Utilities 0.0%†
fEustream AS, senior note, Reg S, 1.625%, 6/25/27		Slovak Republic		356,000	EUR		272,194
Health Care Providers & Services 0.0%†
Centene Corp., senior note, 2.45%, 7/15/28		United States		15,000			12,609
Elevance Health Inc., senior note, 4.90%, 2/08/26		United States		405,000			400,203
fMolina Healthcare Inc., senior note, 144A, 4.375%, 6/15/28		United States		35,000			31,822
							444,634
Health Care Technology 0.1%
fCloud Software Group Holdings Inc., senior secured note, 144A, 6.50%, 3/31/29		United States		780,000			676,467
fOpen Text Corp., senior secured note, 144A, 6.90%, 12/01/27		Canada		90,000			90,981
							767,448
Hotels, Restaurants & Leisure 0.7%
f1011778 BC ULC / New Red Finance Inc., secured note, 144A, 4.375%, 1/15/28		Canada		100,000			89,497
fCaesars Entertainment Inc., senior secured note, 144A, 6.25%, 7/01/25		United States		302,000			299,810

20

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*		Value
Corporate Bonds and Notes (continued)
Hotels, Restaurants & Leisure (continued)
fCarnival Corp., 144A,
csenior note, 7.625%, 3/01/26		United States		140,000	$	125,841
senior note, 5.75%, 3/01/27		United States		95,000		78,263
senior note, 6.00%, 5/01/29		United States		847,000		660,660
senior secured note, 9.875%, 8/01/27		United States		369,000		376,040
senior secured note, 4.00%, 8/01/28		United States		326,000		275,930
d,fCarnival Holdings Bermuda Ltd., senior note, 144A, 10.375%, 5/01/28		United States		1,270,000		1,360,043
fGENM Capital Labuan Ltd., senior bond, 144A, 3.882%, 4/19/31		Malaysia		240,000		186,667
fHilton Grand Vacations Borrower Escrow LLC, 144A,
senior bond, 4.875%, 7/01/31		United States		20,000		16,832
senior note, 5.00%, 6/01/29		United States		150,000		131,781
fMarriott Ownership Resorts Inc., senior note, 144A, 4.50%, 6/15/29		United States		35,000		29,404
fRoyal Caribbean Cruises Ltd., 144A,
senior note, 4.25%, 7/01/26		United States		290,000		253,287
senior note, 5.50%, 4/01/28		United States		125,000		109,062
senior note, 9.25%, 1/15/29		United States		379,000		402,358
senior note, 7.25%, 1/15/30		United States		285,000		286,036
senior secured note, 8.25%, 1/15/29		United States		594,000		615,575
fScientific Games International Inc., senior note, 144A, 7.00%, 5/15/28		United States		245,000		239,678
Travel + Leisure Co.,
senior secured bond, 6.00%, 4/01/27		United States		10,000		9,626
fsenior secured bond, 144A, 4.625%, 3/01/30		United States		45,000		37,886
fsenior secured note, 144A, 6.625%, 7/31/26		United States		270,000		264,943
fWarnermedia Holdings Inc., 144A,
senior bond, 4.279%, 3/15/32		United States		285,000		246,197
senior note, 4.054%, 3/15/29		United States		135,000		120,806
						6,216,222
Household Durables 0.2%
fK. Hovnanian Enterprises Inc., senior secured note, 144A,
d7.75%, 2/15/26		United States		1,164,000		1,134,469
10.50%, 2/15/26		United States		850,000		860,311
						1,994,780
Industrial Conglomerates 0.1%
Icahn Enterprises LP / Icahn Enterprises Finance Corp., senior note,
4.75%, 9/15/24		United States		120,000		117,124
6.375%, 12/15/25		United States		255,000		251,963
6.25%, 5/15/26		United States		105,000		101,976
5.25%, 5/15/27		United States		130,000		120,407
						591,470
Insurance 0.1%
fGlobal Atlantic Finance Co., senior bond, 144A, 4.40%, 10/15/29		United States		165,000		142,394
fQBE Insurance Group Ltd., sub. bond, Reg S, 7.50% to 11/24/23, FRN thereafter, 11/24/43		Australia		250,000		251,014
f,hTongyang Life Insurance Co. Ltd., sub. note, Reg S, 5.25% to 9/22/25, FRN thereafter, Perpetual		South Korea		400,000		351,000
						744,408
Interactive Media & Services 0.1%
fTencent Holdings Ltd., senior bond, Reg S,
3.84%, 4/22/51		China		250,000		180,303

21

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal Amount*			Value
Corporate Bonds and Notes (continued)
Interactive Media & Services (continued)
fTencent Holdings Ltd., senior bond, Reg S, (continued)
3.94%, 4/22/61		China		500,000		$	351,287
							531,590
Internet & Direct Marketing Retail 0.2%
Expedia Group Inc., senior note,
3.25%, 2/15/30		United States		30,000			25,321
2.95%, 3/15/31		United States		40,000			32,160
fProsus NV, Reg S,
senior bond, 1.985%, 7/13/33		China		300,000	EUR		220,499
senior bond, 2.778%, 1/19/34		China		821,000	EUR		638,392
senior bond, 3.832%, 2/08/51		China		110,000			66,762
senior bond, 4.987%, 1/19/52		China		100,000			72,267
senior note, 1.288%, 7/13/29		China		204,000	EUR		165,390
fRakuten Group Inc., senior note, 144A, 10.25%, 11/30/24		Japan		339,000			340,288
							1,561,079
IT Services 0.1%
fHurricane Finance PLC, senior secured note, Reg S, 8.00%, 10/15/25		United Kingdom		358,000	GBP		398,802
Leidos Inc., senior bond, 5.75%, 3/15/33		United States		165,000			163,044
							561,846
Leisure Products 0.0%†
fLife Time Inc., senior secured note, 144A, 5.75%, 1/15/26		United States		92,000			88,231
fNCL Corp. Ltd., 144A,
senior note, 5.875%, 3/15/26		United States		240,000			207,883
senior secured note, 5.875%, 2/15/27		United States		185,000			171,765
							467,879
Life Sciences Tools & Services 0.0%†
gTrimble Inc., senior bond, 6.10%, 3/15/33		United States		190,000			189,470
Machinery 0.1%
fChart Industries Inc., senior secured note, 144A, 7.50%, 1/01/30		United States		346,000			351,622
John Deere Capital Corp., senior note, 4.80%, 1/09/26		United States		395,000			393,513
							745,135
Media 1.2%
fAdvantage Sales & Marketing Inc., senior secured note, 144A, 6.50%, 11/15/28		United States		1,311,000			1,003,099
fCCO Holdings LLC / CCO Holdings Capital Corp., 144A,
senior bond, 5.50%, 5/01/26		United States		40,000			38,642
senior bond, 5.125%, 5/01/27		United States		1,582,000			1,465,415
senior note, 7.375%, 3/01/31		United States		588,000			570,789
Charter Communications Operating LLC / Charter
Communications Operating Capital, senior secured bond,
2.30%, 2/01/32		United States		15,000			11,047
c4.40%, 4/01/33		United States		340,000			291,022
4.40%, 12/01/61		United States		235,000			153,290
d3.95%, 6/30/62		United States		2,218,000			1,331,726
CSC Holdings LLC,
senior bond, 5.25%, 6/01/24		United States		186,000			180,390
fsenior bond, 144A, 5.50%, 4/15/27		United States		534,000			465,085
fsenior bond, 144A, 6.50%, 2/01/29		United States		545,000			462,582
fsenior bond, 144A, 4.625%, 12/01/30		United States		1,700,000			916,938
fsenior bond, 144A, 3.375%, 2/15/31		United States		400,000			274,680
fsenior note, 144A, 7.50%, 4/01/28		United States		111,000			74,439
fDIRECTV Holdings LLC / DIRECTV Financing Co. Inc., senior secured note, 144A, 5.875%, 8/15/27		United States		95,000			85,042
DISH DBS Corp.,
senior note, 5.00%, 3/15/23		United States		498,000			497,203

22

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal Amount*			Value
Corporate Bonds and Notes (continued)
Media (continued)
DISH DBS Corp., (continued)
senior note, 5.875%, 11/15/24		United States		570,000		$	534,569
senior note, 5.125%, 6/01/29		United States		270,000			159,806
fsenior secured note, 144A, 5.25%, 12/01/26		United States		1,330,000			1,116,369
fsenior secured note, 144A, 5.75%, 12/01/28		United States		381,000			305,057
iHeartCommunications Inc., senior secured note, 6.375%, 5/01/26		United States		85,000			80,218
f144A, 5.25%, 8/15/27		United States		90,000			78,413
f144A, 4.75%, 1/15/28		United States		947,000			797,209
fSinclair Television Group Inc., senior secured note, 144A, 4.125%, 12/01/30		United States		75,000			58,433
fVirgin Media Secured Finance PLC, senior secured bond, Reg S, 4.25%, 1/15/30		United Kingdom		301,000	GBP		289,726
fWESCO Aircraft Holdings Inc., senior secured note, 144A, 8.50%, 11/15/24		United States		644,000			293,020
							11,534,209
Metals & Mining 0.4%
fAbja Investment Co. Pte. Ltd., senior note, Reg S, 4.45%, 7/24/23		India		900,000			893,550
BHP Billiton Finance USA Ltd., senior note, 4.875%, 2/27/26		Australia		805,000			800,039
fFirst Quantum Minerals Ltd., senior note, 144A,
6.875%, 3/01/26		Zambia		465,000			444,075
6.875%, 10/15/27		Zambia		375,000			352,163
fFMG Resources August 2006 Pty Ltd., senior note, 144A, 4.50%, 9/15/27		Australia		130,000			119,740
Freeport-McMoRan Inc.,
csenior bond, 4.625%, 8/01/30		United States		15,000			13,860
senior note, 4.25%, 3/01/30		United States		95,000			86,141
fGlencore Funding LLC, senior bond, 144A, 2.85%, 4/27/31		Australia		335,000			274,294
fVedanta Resources Finance II PLC, senior note, Reg S,
8.00%, 4/23/23		India		400,000			371,095
13.875%, 1/21/24		India		400,000			329,540
fVedanta Resources Ltd., senior note, Reg S, 7.125%, 5/31/23		India		200,000			183,746
fVolcan Cia Minera SAA, senior note, 144A, 4.375%, 2/11/26		Peru		30,000			23,923
							3,892,166
Mortgage Real Estate Investment Trusts (REITs) 0.1%
Service Properties Trust, senior note,
7.50%, 9/15/25		United States		650,000			644,930
5.50%, 12/15/27		United States		186,000			167,807
							812,737
Multiline Retail 0.0%†
Kohl’s Corp., senior bond, 5.55%, 7/17/45		United States		424,000			274,008
Oil, Gas & Consumable Fuels 2.0%
fAker BP ASA, senior bond, 144A, 3.75%, 1/15/30		Norway		265,000			234,138
fBaytex Energy Corp., senior note, 144A, 8.75%, 4/01/27		Canada		115,000			117,136
fCallon Petroleum Co., senior note, 144A, 8.00%, 8/01/28		United States		80,000			78,526
fChord Energy Corp., senior note, 144A, 6.375%, 6/01/26		United States		80,000			77,240
fContinental Resources Inc., senior bond, 144A,
5.75%, 1/15/31		United States		405,000			383,708
2.875%, 4/01/32		United States		265,000			200,532
fEnergean Israel Finance Ltd., senior secured note, 144A, Reg S, 5.375%, 3/30/28		Israel		170,000			153,212
Energy Transfer LP, senior bond,
6.125%, 12/15/45		United States		187,000			175,344
5.00%, 5/15/50		United States		352,000			288,999

23

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal Amount*		Value
Corporate Bonds and Notes (continued)
Oil, Gas & Consumable Fuels (continued)
Equities Corp.,
csenior bond, 7.00%, 2/01/30		United States		390,000	$	403,071
senior note, 3.90%, 10/01/27		United States		50,000		45,773
senior note, 5.00%, 1/15/29		United States		35,000		32,781
c,fsenior note, 144A, 3.625%, 5/15/31		United States		135,000		113,442
fGreensaif Pipelines Bidco SARL, senior secured bond, 144A, 6.51%, 2/23/42		Saudi Arabia		1,180,000		1,204,485
fHess Midstream Operations LP, senior note, 144A, 5.625%, 2/15/26		United States		25,000		24,362
fIndian Oil Corp. Ltd., senior bond, Reg S, 5.75%, 8/01/23		India		800,000		799,457
fLeviathan Bond Ltd., senior note, 144A, Reg S, 6.50%, 6/30/27		Israel		205,000		196,185
fMoss Creek Resources Holdings Inc., senior note, 144A,
7.50%, 1/15/26		United States		372,000		334,774
10.50%, 5/15/27		United States		843,000		793,335
fNorthern Oil And Gas Inc., senior note, 144A, 8.125%, 3/01/28		United States		425,000		410,507
Occidental Petroleum Corp.,
senior bond, 8.875%, 7/15/30		United States		15,000		17,056
senior bond, 6.125%, 1/01/31		United States		10,000		10,085
senior bond, 7.875%, 9/15/31		United States		15,000		16,309
senior note, 5.55%, 3/15/26		United States		120,000		119,487
fOngc Videsh Ltd., senior bond, Reg S, 3.75%, 5/07/23		India		3,863,000		3,847,826
Ovintiv Inc., senior bond,
8.125%, 9/15/30		United States		25,000		27,408
7.20%, 11/01/31		United States		5,000		5,265
7.375%, 11/01/31		United States		5,000		5,345
6.50%, 8/15/34		United States		80,000		80,212
6.50%, 2/01/38		United States		10,000		9,821
PDC Energy Inc., senior note, 5.75%, 5/15/26		United States		165,000		157,800
fPertamina Persero PT, senior note, Reg S, 4.30%, 5/20/23		Indonesia		1,400,000		1,396,500
SM Energy Co., senior bond, 6.75%, 9/15/26		United States		120,000		115,912
Southwestern Energy Co., senior bond, 4.75%, 2/01/32		United States		15,000		12,906
dTalos Production Inc., secured note, 12.00%, 1/15/26		United States		2,194,000		2,317,818
fTap Rock Resources LLC, senior note, 144A, 7.00%, 10/01/26		United States		85,000		77,855
Targa Resources Corp., senior bond,
6.125%, 3/15/33		United States		55,000		55,294
6.50%, 2/15/53		United States		398,000		391,862
fTms Issuer Sarl, senior secured note, 144A, 5.78%, 8/23/32		Saudi Arabia		960,000		977,837
fVar Energi ASA, senior note, 144A, 7.50%, 1/15/28		Norway		200,000		206,653
Vital Energy Inc., senior note,
9.50%, 1/15/25		United States		376,000		379,397
10.125%, 1/15/28		United States		33,000		32,467
Western Midstream Operating LP, senior note, 3.35%, 2/01/25		United States		85,000		80,653
fYPF Sociedad Anonima, Reg S,
senior bond, 8.50%, 7/28/25		Argentina		536,000		484,544
senior note, 8.75%, 4/04/24		Argentina		1,418,900		1,384,652
senior note, 8.50%, 3/23/25		Argentina		995,000		945,230
						19,223,201
Pharmaceuticals 0.4%
fBausch Health Cos. Inc., 144A,
senior note, 7.00%, 1/15/28		United States		70,000		31,453
senior note, 5.00%, 1/30/28		United States		15,000		6,484
senior secured note, 5.50%, 11/01/25		United States		912,000		794,215
senior secured note, 4.875%, 6/01/28		United States		360,000		225,000
CVS Health Corp., senior note, 5.00%, 2/20/26		United States		405,000		402,911
ELI Lilly & Co., senior note, 5.00%, 2/27/26		United States		805,000		802,980
Teva Pharmaceutical Finance Co. LLC, senior bond, 6.15%, 2/01/36		Israel		10,000		9,039

24

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal Amount*			Value
Corporate Bonds and Notes (continued)
Pharmaceuticals (continued)
Teva Pharmaceutical Finance Netherlands II BV, senior note, 6.00%, 1/31/25		Israel		335,000	EUR	$	360,752
Teva Pharmaceutical Finance Netherlands III BV,
senior bond, 3.15%, 10/01/26		Israel		1,235,000			1,080,403
senior bond, 4.10%, 10/01/46		Israel		100,000			65,149
senior note, 2.80%, 7/21/23		Israel		325,000			321,652
							4,100,038
Real Estate Management & Development 0.3%
fAgile Group Holdings Ltd., Reg S,
hsenior note, 7.875% to 7/31/24, FRN thereafter, Perpetual		China		200,000			70,625
senior secured note, 6.05%, 10/13/25		China		200,000			111,981
fCanary Wharf Group Investment Holdings PLC, senior secured note, Reg S, 2.625%, 4/23/25		United Kingdom		100,000	GBP		104,014
fCentral China Real Estate Ltd., senior secured note, Reg S, 7.25%, 8/13/24		China		200,000			64,001
fCFLD Cayman Investment Ltd., Reg S,
6.90%, 1/13/23		China		200,000			25,000
senior note, 8.60%, 4/08/24		China		200,000			24,508
fChina Aoyuan Group Ltd., senior secured note, Reg S, 5.98%, 8/18/25		China		200,000			19,899
fChina Evergrande Group, senior note, Reg S, 8.75%, 6/28/25		China		200,000			18,063
fChina South City Holdings Ltd., senior secured note, Reg S, 9.00%, 7/20/24		China		190,000			165,447
fCountry Garden Holdings Co. Ltd., senior secured bond, Reg S,
5.625%, 12/15/26		China		200,000			131,545
3.30%, 1/12/31		China		1,412,000			758,360
iEasy Tactic Ltd., senior secured note, PIK, 7.50%, 7/11/27		China		213,775			58,290
fLogan Group Co. Ltd., senior note, Reg S, 5.25%, 10/19/25		China		200,000			58,006
fNew Metro Global Ltd., senior note, Reg S, 4.625%, 10/15/25		China		200,000			153,500
f,hNWD Finance BVI Ltd., senior note, Reg S, 6.15% to 3/16/25, FRN thereafter, Perpetual		Hong Kong		200,000			190,000
fPerfect Point Ventures Ltd., senior note, Reg S, 5.20%, 9/20/25		Hong Kong		400,000			345,032
fSino-Ocean Land Treasure II Ltd., senior bond, Reg S, 5.95%, 2/04/27		China		200,000			143,505
f,hSino-Ocean Land Treasure III Ltd., senior note, Reg S, 6.876% to 9/21/27, FRN thereafter, Perpetual		China		330,000			171,567
fTimes China Holdings Ltd., senior secured note, Reg S, 5.55%, 6/04/24		China		200,000			33,043
							2,646,386
Road & Rail 0.2%
fUber Technologies Inc., senior note, 144A,
8.00%, 11/01/26		United States		990,000			1,006,030
7.50%, 9/15/27		United States		400,000			406,032
6.25%, 1/15/28		United States		40,000			39,414
4.50%, 8/15/29		United States		180,000			159,472
							1,610,948
Semiconductors & Semiconductor Equipment 0.1%
Broadcom Inc., senior bond,
4.15%, 11/15/30		United States		210,000			189,227
f144A, 3.137%, 11/15/35		United States		250,000			184,456
Micron Technology Inc., senior note, 6.75%, 11/01/29		United States		385,000			398,132
fSK Hynix Inc., senior bond, 144A, 6.50%, 1/17/33		South Korea		200,000			196,984
							968,799
Software 0.0%†
Oracle Corp., senior bond,
3.95%, 3/25/51		United States		125,000			89,886

25

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Corporate Bonds and Notes (continued)
Software (continued)
Oracle Corp., senior bond, (continued)
3.85%, 4/01/60		United States		286,000		$	190,967
							280,853
Specialty Retail 0.8%
fCarvana Co., senior note, 144A,
d5.625%, 10/01/25		United States		2,546,000			1,556,752
5.50%, 4/15/27		United States		277,000			141,567
5.875%, 10/01/28		United States		507,000			244,335
4.875%, 9/01/29		United States		640,000			303,545
d10.25%, 5/01/30		United States		2,168,000			1,357,439
fChina Grand Automotive Services Ltd., E, senior note, Reg S, 9.125%, 1/30/24		China		333,000			282,963
fDouglas GMBH, senior secured note, Reg S, 6.00%, 4/08/26		Germany		2,093,000	EUR		1,953,085
fGuitar Center Inc., senior secured note, 144A, 8.50%, 1/15/26		United States		650,000			566,722
fMitchells & Butlers Finance PLC, B2, secured bond, Reg S, 6.013%, 12/15/28		United Kingdom		115,952	GBP		130,902
QVC Inc., senior secured note, 4.85%, 4/01/24		United States		366,000			344,040
Starbucks Corp., senior note, 4.75%, 2/15/26		United States		405,000			401,263
							7,282,613
Technology Hardware, Storage & Peripherals 0.1%
CDW LLC / CDW Finance Corp., senior note,
4.25%, 4/01/28		United States		40,000			36,488
3.25%, 2/15/29		United States		230,000			194,006
fPitney Bowes Inc., senior note, 144A, 6.875%, 3/15/27		United States		766,000			640,709
Western Digital Corp., senior note,
4.75%, 2/15/26		United States		75,000			70,882
2.85%, 2/01/29		United States		150,000			118,049
							1,060,134
Telecommunications 0.1%
fLevel 3 Financing Inc., senior secured note, 144A, 3.40%, 3/01/27		United States		1,352,000			1,135,999
Textiles, Apparel & Luxury Goods 0.0%†
fHanesbrands Inc., senior note, 144A, 4.625%, 5/15/24		United States		427,000			426,968
Thrifts & Mortgage Finance 0.1%
fIIFL Finance Ltd., E, senior secured note, Reg S, 5.875%, 4/20/23		India		1,300,000			1,287,000
fNationstar Mortgage Holdings Inc., senior bond, 144A, 5.75%, 11/15/31		United States		60,000			47,130
							1,334,130
Tobacco 0.2%
d,fVector Group Ltd., senior note, 144A, 10.50%, 11/01/26		United States		1,566,000			1,572,029
Trading Companies & Distributors 0.0%†
f,hAircastle Ltd., junior sub. note, 144A, 5.25% to 6/15/26, FRN thereafter, Perpetual		United States		25,000			20,376
Transportation Infrastructure 0.1%
fRand Parent LLC, senior secured note, 144A, 8.50%, 2/15/30		United States		200,000			192,875
Union Pacific Corp., senior note, 4.75%, 2/21/26		United States		720,000			717,025
							909,900
Wireless Telecommunication Services 0.0%†
fSoftbank Group Corp., senior bond, Reg S, 5.25%, 7/06/31		Japan		200,000			172,250
Total Corporate Bonds and Notes (Cost $130,475,551)							125,410,291

26

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*		Value
Corporate Bonds and Notes in Reorganization 0.6%
Electric Utilities 0.5%
f,jTalen Energy Supply LLC, 144A,
dsenior note, 7.25%, 5/15/27		United States		3,359,000	$	3,453,016
senior note, 6.625%, 1/15/28		United States		596,000		605,476
senior secured note, 7.625%, 6/01/28		United States		436,000		450,998
						4,509,490
Metals & Mining 0.0%†
f,jSamarco Mineracao SA, senior bond, Reg S,
4.125%, 11/01/22		Brazil		925,000		345,890
5.75%, 10/24/23		Brazil		184,000		70,840
						416,730
Pharmaceuticals 0.0%†
d,f,jPar Pharmaceutical Inc., senior note, 144A, 7.50%, 4/01/27		United States		41,000		30,904
Real Estate Management & Development 0.1%
f,jKaisa Group Holdings Ltd., senior secured note, Reg S,
8.50%, 6/30/22		China		692,000		115,324
11.95%, 11/12/23		China		200,000		33,238
9.375%, 6/30/24		China		205,000		34,213
11.25%, 4/16/25		China		994,000		165,852
11.70%, 11/11/25		China		200,000		33,408
11.65%, 6/01/26		China		200,000		33,358
f,jRonshine China Holdings Ltd., senior secured note, Reg S, 8.10%, 6/09/23		China		200,000		19,650
f,jShimao Group Holdings Ltd., Reg S,
senior bond, 4.60%, 7/13/30		China		200,000		34,926
senior secured note, 4.75%, 7/03/22		China		200,000		36,544
senior secured note, 6.125%, 2/21/24		China		200,000		35,411
f,jSunac China Holdings Ltd., Reg S,senior note, 6.80%, 10/20/24		China		300,000		80,999
senior secured note, 8.35%, 4/19/23		China		200,000		53,535
senior secured note, 6.65%, 8/03/24		China		200,000		53,409
senior secured note, 6.50%, 1/26/26		China		200,000		53,386
f,jYuzhou Group Holdings Co. Ltd., senior secured note, Reg S,
8.375%, 10/30/24		China		200,000		26,756
7.70%, 2/20/25		China		200,000		27,347
7.85%, 8/12/26		China		205,000		28,452
6.35%, 1/13/27		China		400,000		55,208
jZhenro Properties Group Ltd., senior note,
8.00%, 3/06/23		China		981,000		82,415
fReg S, 6.63%, 1/07/26		China		403,000		35,053
						1,038,484
Total Corporate Bonds and Notes in Reorganization (Cost $8,568,811)						5,995,608
k Senior Floating Rate Interests 0.3%
Communications Equipment 0.0%†
iRiverbed Technology Inc., Exit Term Loan, PIK, 7.00% (cash), (1-Month USD LIBOR + 6.00%) 12/08/26		United States		138,130		50,331
Construction Materials 0.0%†
lOldcastle BuildingEnvelope Inc., Term Loan RC, 7.303%, (1- Month SOFR + 3.75%), 4/29/27		United States		40,014		35,012
Consumer Discretionary Services 0.1%
Travel Leaders Group LLC, Term Loan B, 8.635%, (1-Month USD LIBOR + 4.00%), 1/25/24		United States		475,954		442,458

27

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
k Senior Floating Rate Interests (continued)
Diversified Financial Services 0.0%†
lZF Invest, Term Loan B, 6.209%, (3-Month EURIBOR + 3.93%), 7/12/28		United States		90,602		$	86,666
Ziggo BV, Term Loan H, 6.102%, (3-Month EURIBOR + 3.00%), 1/31/29		United States		115,000			116,928
							203,594
Entertainment 0.0%†
Playtika Holding Corp., Term Loan B, 7.385%, (1-Month USD LIBOR + 2.75%), 3/13/28		United States		150,815			149,531
Equity Real Estate Investment Trusts (REITs) 0.0%†
McCarthy & Stone PLC, Term Loan B, 7.00%, (1-Month USD LIBOR + 7.00%), 12/16/25		United Kingdom		170,938	GBP		177,855
Food & Staples Retailing 0.1%
lAreas, Term Loan B1, 7.186%, (3-Month EURIBOR + 4.75%), 7/01/26		France		133,146			128,682
lUpfield Group BV, Term Loan RC, 5.429%, (3-Month EURIBOR + 3.00%), 1/02/25		Netherlands		409,364			385,356
							514,038
Health Services 0.1%
OpenText Corp., Initial Term Loan, 8.135%, (1-Month SOFR + 3.60%), 8/27/29		United States		489,583			489,546
Hotels, Restaurants & Leisure 0.0%†
Caesars Entertainment, Initial Term Loan, 7.968%, (1-Month SOFR + 2.71%), 1/23/30		United States		44,000			43,997
Insurance 0.0%†
AmWINS, Initial Term Loan, 7.413%, (1-Month SOFR + 2.16%), 2/19/28		United States		45,000			44,874
Media 0.0%†
Advantage Sales & Marketing Inc., Term Loan B1, 8.884%, (3- Month USD LIBOR + 4.50%), 10/28/27		United States		115,510			95,544
Cablevision SA, Term Loan B, 6.838%, (1-Month USD LIBOR + 2.25%), 7/17/25		United States		203,581			197,076
CSC Holdings LLC, Term Loan B, 9.063%, (1-Month USD LIBOR + 2.25%), 4/15/27		United States		35,172			33,017
							325,637
Oil, Gas & Consumable Fuels 0.0%†
lEuro Garage Ltd., Term Loan B1, 6.752%, (3-Month EURIBOR + 4.00%), 2/07/25		United States		188,042			179,636
Pharmaceuticals 0.0%†
lBausch Health Cos. Inc., Term Loan B, 9.914%, (1-Month SOFR + 5.25%), 2/01/27		United States		252,721			200,224
Software 0.0%†
Citrix Systems Inc., Term Loan B, 9.18%, (1-Month SOFR + 4.50%), 3/30/29		United States		321,542			299,135
Specialty Retail 0.0%†
Peloton Interactive Inc., Initial Term Loan, 11.757%, (1-Month SOFR + 6.50%), 5/25/27		United States		44,649			44,962
Textiles, Apparel & Luxury Goods 0.0%†
lVarsity Brands, Initial Term Loan, 8.135%, (1-Month USD LIBOR + 3.50%), 12/16/24		United States		33,892			32,865
Total Senior Floating Rate Interests (Cost $3,497,301)							3,233,695
Foreign Government and Agency Securities 6.2%
fGovernment of Angola, senior bond, Reg S, 9.375%, 5/08/48		Angola		2,568,000			2,194,870

28

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

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

29

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*			Value
Foreign Government and Agency Securities (continued)
fGovernment of Ukraine, Reg S, (continued)
senior bond, zero cpn., 8/01/41		Ukraine		11,807,000		$	3,287,777
senior note, 8.994%, 2/01/26		Ukraine		200,000			38,650
fProvincia de Buenos Aires, Reg S,
n144A, FRN, 73.394%, (ARS BADLAR + 3.75%), 4/12/25		Argentina		3,670,000	ARS		9,057
senior bond, 5.25%, 9/01/37		Argentina		7,295,775			2,817,993
Total Foreign Government and Agency Securities (Cost $60,923,658)							58,005,633
U.S. Government and Agency Securities 2.4%
U.S. Treasury Bond, 2.875%, 5/15/52		United States		1,325,700			1,085,883
U.S. Treasury Note,
1.375%, 8/31/23		United States		1,095,000			1,075,282
2.75%, 8/31/23		United States		4,000,000			3,954,627
0.125%, 9/15/23		United States		480,000			467,581
1.375%, 9/30/23		United States		705,000			689,992
3.25%, 8/31/24		United States		1,860,000			1,812,301
4.25%, 9/30/24		United States		1,830,000			1,809,555
4.375%, 10/31/24		United States		1,830,000			1,813,022
4.50%, 11/30/24		United States		2,415,000			2,397,784
4.25%, 12/31/24		United States		1,615,000			1,597,021
3.875%, 1/15/26		United States		347,000			341,063
4.125%, 10/31/27		United States		4,170,000			4,149,557
3.50%, 1/31/28		United States		1,296,000			1,256,715
4.00%, 10/31/29		United States		57,000			56,673
Total U.S. Government and Agency Securities (Cost $22,716,675)							22,507,056
Asset-Backed Securities and Commercial Mortgage-Backed Securities 1.5%
Diversified Financial Services 0.9%
fAASET Trust, 144A,
2021-1A, A, 2.95%, 11/16/41		United States		200,583			176,332
2022-1A, A, 6.00%, 5/16/47		United States		471,593			453,650
fAccelerated Assets LLC, 2018-1, B, 144A, 4.51%, 12/02/33		United States		30,761			29,372
fACHV ABS Trust, 2023-1PL, D, 144A, 8.47%, 3/18/30		United States		100,000			100,451
fAdams Outdoor Advertising LP, 2018-1, A, 144A, 4.81%, 11/15/48		United States		163,350			154,414
fAffirm Asset Securitization Trust, 2023-A, C, 144A, 8.12%, 1/18/28		United States		100,000			98,627
f,kAGL CLO 3 Ltd., 2020-3A, C, 144A, FRN, 6.942%, (3-Month USD LIBOR + 2.15%), 1/15/33		United States		285,000			274,625
fAIM Aviation Finance Ltd., 2015-1A, B1, 144A, 7.072%, 2/15/40		United States		170,624			55,219
fAvis Budget Rental Car Funding AESOP LLC, 2020-2A, C, 144A, 4.25%, 2/20/27		United States		100,000			92,726
f,oBinom Securitization Trust, 2022-RPL1, M1, 144A, FRN, 3.00%, 2/25/61		United States		160,000			119,674
fBlackbird Capital Aircraft Lease Securitization Ltd., 2016-1A, A, 144A, 4.213%, 12/16/41		United States		162,481			135,961
Carmax Auto Owner Trust, 2023-1, D, 6.27%, 11/15/29		United States		120,000			118,484
f,kConnecticut Avenue Securities Trust, 2021-R01, 1B1, 144A, FRN, 7.584%, (SOFR + 3.10%), 10/25/41		United States		100,000			95,490
fCoreVest American Finance Trust, 2019-2, B, 144A, 3.424%, 6/15/52		United States		100,000			89,318
fDiamond Resorts Owner Trust, 2019-1A, B, 144A, 3.53%, 2/20/32		United States		20,229			19,484

30

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

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

31

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*		Value
Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)
Diversified Financial Services (continued)
fVOLT XCIV LLC, 144A,
2021-NPL3, A1, 2.24%, 2/27/51		United States		214,687	$	198,598
2021-NPL3, A2, 4.949%, 2/27/51		United States		215,000		194,214
fWave Trust, 2017-1A, A, 144A, 3.844%, 11/15/42		United States		138,697		108,542
fWestlake Automobile Receivables Trust, 2023-1A, D, 144A, 6.79%, 11/15/28		United States		100,000		99,930
fWillis Engine Structured Trust IV, 2018-A, B, 144A, 5.438%, 9/15/43		United States		207,424		156,766
fWillis Engine Structured Trust VI, 2021-A, B, 144A, 5.438%, 5/15/46		United States		356,311		242,319
						8,088,869
Mortgage Real Estate Investment Trusts (REITs) 0.6%
f510 Asset Backed Trust, 2021-NPL1, A1, 144A, 2.24%, 6/25/61		United States		98,645		90,879
kAmerican Home Mortgage Investment Trust, 2006-1, 11A1, FRN, 4.897%, (1-Month USD LIBOR + 0.28%), 3/25/46		United States		118,332		100,188
Banc of America Alternative Loan Trust, 2003-8, 1CB1, 5.50%, 10/25/33		United States		2,773		2,658
Banc of America Funding Trust, 2007-4, 5A1, 5.50%, 11/25/34		United States		28,195		25,117
oBanc of America Mortgage Trust, 2005-A, 2A1, FRN, 3.902%, 2/25/35		United States		2,035		1,947
oBear Stearns ALT-A Trust, 2006-3, 21A1, FRN, 3.379%, 5/25/36		United States		1,005,070		774,222
f,kBPR Trust, 2021-NRD, F, 144A, FRN, 11.432%, (SOFR + 6.87%), 12/15/38		United States		140,000		126,116
oCHL Mortgage Pass-Through Trust, 2006-HYB4, 3B, FRN, 3.685%, 6/20/36		United States		1,537,986		1,162,685
fCIM Trust, 2021-NR2, A1, 144A, 2.568%, 7/25/59		United States		117,370		111,657
f,oCitigroup Commercial Mortgage Trust, 2014-GC21, D, 144A, FRN, 4.941%, 5/10/47		United States		330,000		254,381
f,oCitigroup Mortgage Loan Trust, 2009-10, 6A2, 144A, FRN, 4.015%, 9/25/34		United States		18,203		17,842
Countrywide Alternative Loan Trust, 2003-22CB, 1A1, 5.75%, 12/25/33		United States		22,587		22,218
2004-16CB, 1A1, 5.50%, 7/25/34		United States		10,571		10,148
2004-16CB, 3A1, 5.50%, 8/25/34		United States		10,011		9,660
2004-J10, 2CB1, 6.00%, 9/25/34		United States		28,182		27,185
2005-J1, 2A1, 5.50%, 2/25/25		United States		870		845
oCountrywide Home Loans Mortgage Pass-Through Trust, 2004-HYB4, 2A1, FRN, 4.153%, 9/20/34		United States		33,363		29,920
Credit Suisse First Boston Mortgage Securities Corp., 2003-27, 4A4, 5.75%, 11/25/33		United States		11,003		10,772
fCSMC OA LLC, 2014-USA, E, 144A, 4.373%, 9/15/37		United States		400,000		233,621
fCSMC Trust, 144A,o2020-RPL3, A1, FRN, 2.691%, 3/25/60		United States		86,774		84,322
2021-RPL1, A2, 3.937%, 9/27/60		United States		155,000		147,871
kDSLA Mortgage Loan Trust, 2005-AR5, 2A1A, FRN, 5.251%, (1-Month USD LIBOR + 0.66%), 9/19/45		United States		27,369		17,387
f,kExtended Stay America Trust, 2021-ESH, F, 144A, FRN, 8.288%, (1-Month USD LIBOR +  3.70%), 7/15/38		United States		97,619		94,391
fGS Mortgage Securities Corp. Trust, 144A, 2012-BWTR, A, 2.954%, 11/05/34		United States		135,000		98,495
o2013-PEMB, A, FRN, 3.55%, 3/05/33		United States		135,000		117,111
oGS Mortgage Securities Trust, FRN, f2011-GC5, C, 144A, 5.154%, 8/10/44		United States		100,000		73,627
f2011-GC5, D, 144A, 5.154%, 8/10/44		United States		195,000		83,804

32

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal     Amount*		Value
Asset-Backed Securities and Commercial Mortgage-Backed Securities (continued)
Mortgage Real Estate Investment Trusts (REITs) (continued)
oGS Mortgage Securities Trust, FRN, (continued)
2014-GC18, B, 4.885%, 1/10/47		United States		100,000	$	85,754
GSR Mortgage Loan Trust,
2005-4F, 6A1, 6.50%, 2/25/35		United States		6,922		6,514
o2005-AR6, 4A5, FRN, 4.159%, 9/25/35		United States		19,727		18,152
kHarborview Mortgage Loan Trust, 2004-11, 2A2A, FRN, 5.231%, (1-Month USD LIBOR + 0.64%), 1/19/35		United States		56,000		46,574
IndyMac INDX Mortgage Loan Trust, FRN, k2004-AR7, A5, 5.837%, (1-Month USD LIBOR + 1.22%), 9/25/34		United States		29,046		25,222
o2005-AR11, A3, 3.466%, 8/25/35		United States		32,992		26,476
k2006-AR2, 2A1, 5.037%, (1-Month USD LIBOR + 0.42%), 2/25/46		United States		145,669		103,347
JPMorgan Mortgage Trust, 2004-S1, 2A1, 6.00%, 9/25/34		United States		46,292		44,857
o2007-A1, 4A2, FRN, 3.939%, 7/25/35		United States		822		801
kLehman XS Trust, 2006-2N, 1A1, FRN, 5.137%, (1-Month USD LIBOR + 0.52%), 2/25/46		United States		24,465		21,314
MASTR Alternative Loan Trust, 2004-2, 8A4, 5.50%, 3/25/34		United States		98,514		86,633
2004-8, 2A1, 6.00%, 9/25/34		United States		20,974		20,106
f,kMed Trust, 144A, FRN, 2021-MDLN, C, 6.388%, (1-Month USD LIBOR + 1.80%), 11/15/38		United States		124,630		121,482
2021-MDLN, D, 6.588%, (1-Month USD LIBOR + 2.00%), 11/15/38		United States		99,704		96,622
oMerrill Lynch Mortgage Investors MLCC, 2006-2, 2A, FRN, 3.958%, 5/25/36		United States		1,036		1,007
oMorgan Stanley Bank of America Merrill Lynch Trust, 2013-C11, B, FRN, 4.357%, 8/15/46		United States		200,000		150,085
f,oMorgan Stanley Capital I Trust, 2011-C2, E, 144A, FRN, 5.211%, 6/15/44		United States		150,000		114,398
f,oMSBAM Commercial Mortgage Securities Trust, 2012-CKSV, C, 144A, FRN, 4.281%, 10/15/30		United States		340,000		249,964
f,oPRPM LLC, 2021-2, A2, 144A, FRN, 3.77%, 3/25/26		United States		130,000		114,097
oRFMSI Trust, 2005-SA1, 1A1, FRN, 4.414%, 3/25/35		United States		77,014		41,675
kStructured ARM Loan Trust, 2005-14, A1, FRN, 4.927%, (1-Month USD LIBOR + 0.31%), 7/25/35		United States		147,585		94,525
fToorak Mortgage Corp. Ltd., 2021-1, A1, 144A, 2.24%, 6/25/24		United States		190,000		175,614
Wells Fargo Commercial Mortgage Trust, o2013-LC12, B, FRN, 4.283%, 7/15/46		United States		190,000		182,952
2014-LC16, C, 4.458%, 8/15/50		United States		215,000		133,594
o2016-C36, B, FRN, 3.671%, 11/15/59		United States		100,000		85,638
o2016-C36, C, FRN, 4.133%, 11/15/59		United States		100,000		75,887
oWFRBS Commercial Mortgage Trust, FRN, f2011-C3, D, 144A, 5.378%, 3/15/44		United States		199,819		78,929
f2011-C4, E, 144A, 4.845%, 6/15/44		United States		120,000		97,274
2014-C24, B, 4.204%, 11/15/47		United States		100,000		92,346
						6,120,908
Total Asset-Backed Securities and Commercial Mortgage-Backed Securities (Cost $15,845,113)						14,209,777

33

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Number of Contracts		Notional       Amount#		Value
Options Purchased 0.3%
Calls - Exchange-Traded 0.0%†
3 Month EURIBOR, March Strike Price 98.50 EUR, Expires 3/10/23		80		19,428,000	$	—
3 Month EURIBOR, March Strike Price 97.13 EUR, Expires 3/13/23		40		9,709,500		1,851
3 Month SOFR, March Strike Price $95.19, Expires 3/10/23		60		14,250,750		375
3 Month SOFR, March Strike Price $95.44, Expires 3/10/23		40		9,500,500		250
3 Month SOFR, December Strike Price $97.00, Expires 12/15/23		60		14,212,500		2,625
Activision Blizzard Inc., March Strike Price $80.00, Expires 3/17/23		106		808,250		4,452
Activision Blizzard Inc., April Strike Price $80.00, Expires 4/21/23		107		815,875		17,227
AMC Entertainment Holdings Inc., March Strike Price $10.00, Expires 3/17/23		274		195,636		12,878
Amyris Inc., March Strike Price $2.50, Expires 3/17/23		200		25,000		1,000
Amyris Inc., March Strike Price $3.00, Expires 3/17/23		250		31,250		1,250
Amyris Inc., June Strike Price $3.00, Expires 6/16/23		35		4,375		262
Bausch Health Cos. Inc., March Strike Price $9.00, Expires 3/17/23		379		352,849		21,982
BILL Holdings Inc., March Strike Price $110.00, Expires 3/17/23		4		33,852		68
California Resources Corp., March Strike Price $45.00, Expires 3/17/23		1,003		4,232,660		55,165
CBOE Volatility Index, March Strike Price $21.00, Expires 3/22/23		129		267,030		19,866
CBOE Volatility Index, March Strike Price $22.00, Expires 3/22/23		61		126,270		7,015
CBOE Volatility Index, April Strike Price $22.00, Expires 4/19/23		57		117,990		12,825
CBOE Volatility Index, April Strike Price $23.00, Expires 4/19/23		181		374,670		35,114
CBOE Volatility Index, May Strike Price $23.00, Expires 5/17/23		52		107,640		13,156
Crown Holdings Inc., April Strike Price $75.00, Expires 4/21/23		37		304,177		46,065
E-mini S&P 500, March Strike Price $4,000.00, Expires 3/17/23		1		205,763		2,575
E-mini S&P 500, March Strike Price $4,200.00, Expires 3/17/23		4		823,050		560
E-mini S&P 500, March Strike Price $4,400.00, Expires 3/17/23		2		397,550		15
E-mini S&P 500, June Strike Price $4,500.00, Expires 6/16/23		1		200,588		513
E-mini S&P 500, June Strike Price $5,100.00, Expires 6/16/23		2		401,175		35
Gol Linhas Aereas Inteligentes SA, April Strike Price $4.00, Expires 4/21/23		23		4,968		115
iShares 20+ Year Treasury Bond ETF, July Strike Price $115.00, Expires 7/21/23		204		2,074,884		16,116
iShares 20+ Year Treasury Bond ETF, July Strike Price $120.00, Expires 7/21/23		309		3,142,839		12,669
Manchester United PLC, April Strike Price $26.00, Expires 4/21/23		204		423,300		20,400
Opendoor Technologies Inc., May Strike Price $2.00, Expires 5/19/23		63		9,072		1,008
Porch Group Inc., June Strike Price $5.00, Expires 6/16/23		45		11,250		1,012
Qurate Retail Inc., April Strike Price $3.00, Expires 4/21/23		123		25,953		861
RingCentral Inc., June Strike Price $50.00, Expires 6/16/23		4		13,216		250
Silicon Motion Technology Corp., September Strike Price $70.00, Expires 9/15/23		52		349,544		58,240
SPDR S&P Oil & Gas Exploration & Production ETF, June Strike Price $150.00, Expires 6/16/23		129		1,715,313		61,920
TEGNA Inc., March Strike Price $23.00, Expires 3/17/23		118		205,320		590
TEGNA Inc., April Strike Price $23.00, Expires 4/21/23		149		259,260		2,980
U.S. Treasury 10 Year Note, March Strike Price $116.00, Expires 3/24/23		100		11,165,600		3,125
U.S. Treasury 10 Year Note, April Strike Price $120.00, Expires 4/21/23		30		3,349,680		469
Vnet Group Inc., March Strike Price $6.00, Expires 3/17/23		205		81,385		1,025
Vodafone Group PLC, July Strike Price $13.00, Expires 7/21/23		109		130,473		2,398
						440,302

34

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Number of Contracts		Notional       Amount#			Value
Options Purchased (continued)
Calls - Over-the-Counter 0.0%†
DJ EURO STOXX 50 Index, Counterparty GSCO, March Strike Price 4,290.00 EUR, Expires 3/20/23		372		1,576,677		$	16,656
DJ EURO STOXX 50 Index, Counterparty JPHQ, March Strike Price 4,240.00 EUR, Expires 3/30/23		174		737,478			15,809
SGX Nifty 50 Index, Counterparty JPHQ, March Strike Price $17,940.00, Expires 3/13/23		130		317,213			2,074
							34,539
Currency Options 0.0%†
EUR/USD, Counterparty JPHQ, July Strike Price $1.15, Expires 7/19/23		1		66,000	EUR		3,734
JPY/KRW, Counterparty JPHQ, August Strike Price 10.75 KRW, Expires 8/11/23		1		4,000,000	JPY		4,302
USD/HKD, Counterparty JPHQ, December Strike Price 7.80 HKD, Expires 12/20/23		1		4,600,000			16,941
USD/INR, Counterparty JPHQ, March Strike Price 84.00 INR, Expires 3/15/23		1		600,000			264
USD/INR, Counterparty JPHQ, March Strike Price 86.00 INR, Expires 3/15/23		1		2,400,000			83
USD/KRW, Counterparty JPHQ, March Strike Price 1,270.00 KRW, Expires 3/08/23		1		1,000,000			38,617
USD/PHP, Counterparty JPHQ, March Strike Price 60.00 PHP, Expires 3/15/23		1		1,300,000			15
USD/SGD, Counterparty JPHQ, March Strike Price 1.35 SGD, Expires 3/27/23		1		1,000,000			6,994
USD/TWD, Counterparty JPHQ, September Strike Price 32.00 TWD, Expires 9/20/23		1		120,000			—
							70,950
Puts - Exchange-Traded 0.3%
1 Year SOFR, March Strike Price $95.50, Expires 3/10/23		10		2,376,750			11,000
3 Month EURIBOR, March Strike Price 96.88 EUR, Expires 3/13/23		40		9,709,500			529
3 Month EURIBOR, December Strike Price 96.50 EUR, Expires 12/18/23		60		14,415,750			90,037
3 Month SOFR, July Strike Price $94.50, Expires 7/14/23		70		16,554,125			24,938
3 Month SOFR, September Strike Price $94.50, Expires 9/15/23		20		4,729,750			9,000
3 Month SOFR, December Strike Price $94.75, Expires 12/15/23		1		236,875			869
Activision Blizzard Inc., May Strike Price $70.00, Expires 5/19/23		290		2,211,250			45,820
Activision Blizzard Inc., January Strike Price $70.00, Expires 1/19/24		448		3,312,960			196,000
Activision Blizzard Inc., January Strike Price $75.00, Expires 1/19/24		53		391,935			32,595
American Axle & Manufacturing Holdings Inc., March Strike Price $9.00, Expires 3/17/23		146		128,480			5,840
Amyris Inc., June Strike Price $1.00, Expires 6/16/23		384		48,000			11,520
Amyris Inc., January Strike Price $1.00, Expires 1/19/24		301		37,625			15,050
Amyris Inc., January Strike Price $1.50, Expires 1/19/24		23		2,875			1,955
B Riley Financial Inc., March Strike Price $35.00, Expires 3/17/23		402		1,599,156			14,070
BioMarin Pharmaceutical Inc., June Strike Price $85.00, Expires 6/21/24		3		29,877			1,800
BioMarin Pharmaceutical Inc., June Strike Price $100.00, Expires 6/21/24		1		9,959			1,150
Blackstone Inc., March Strike Price $85.00, Expires 3/17/23		43		390,440			4,472

35

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

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

36

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Number of Contracts		Notional       Amount#		Value
Options Purchased (continued)
Puts - Exchange-Traded (continued)
Russell 2000 Index, March Strike Price $1,850.00, Expires 3/31/23		3		569,097	$	9,081
S&P 500 Index, March Strike Price $3,900.00, Expires 3/31/23		4		1,588,060		24,440
S&P 500 Index, April Strike Price $3,875.00, Expires 4/21/23		2		794,030		14,300
SPDR S&P 500 ETF Trust, March Strike Price $370.00, Expires 3/17/23		210		8,321,460		17,640
SPDR S&P 500 ETF Trust, April Strike Price $395.00, Expires 4/21/23		169		6,696,794		174,915
SPDR S&P 500 ETF Trust, April Strike Price $398.00, Expires 4/21/23		168		6,657,168		194,040
SPDR S&P 500 ETF Trust, June Strike Price $385.00, Expires 6/16/23		122		4,834,372		132,126
SPDR S&P Regional Banking ETF, March Strike Price $52.00, Expires 3/17/23		207		1,274,292		1,449
SPDR S&P Regional Banking ETF, March Strike Price $57.00, Expires 3/31/23		253		1,557,468		10,626
Transocean Ltd., January Strike Price $1.50, Expires 1/19/24		561		392,139		1,683
Tyler Technologies Inc., June Strike Price $280.00, Expires 6/16/23		3		96,375		2,250
U.S. Treasury 10 Year Note, March Strike Price $110.00, Expires 3/24/23		15		1,674,840		5,156
U.S. Treasury 10 Year Note, March Strike Price $110.50, Expires 3/24/23		10		1,116,560		4,844
U.S. Treasury 5 Year Note, March Strike Price $107.00, Expires 3/03/23		20		2,141,100		4,531
U.S. Treasury 5 Year Note, March Strike Price $104.00, Expires 3/24/23		40		4,282,200		1,250
U.S. Treasury 5 Year Note, March Strike Price $107.00, Expires 3/24/23		52		5,566,860		32,094
U.S. Treasury 5 Year Note, March Strike Price $107.50, Expires 3/24/23		12		1,284,660		10,594
Vistra Corp., March Strike Price $21.00, Expires 3/17/23		139		305,661		4,170
Vivint Smart Home Inc., March Strike Price $10.00, Expires 3/17/23		16		17,984		400
Vnet Group Inc., March Strike Price $5.00, Expires 3/17/23		192		76,224		20,640
Vodafone Group PLC, March Strike Price 0.86 GBP, Expires 3/17/23		1,439		1,726,800		—
Vodafone Group PLC, April Strike Price 0.80 GBP, Expires 4/21/23		400		480,000		—
Vodafone Group PLC, April Strike Price 0.85 GBP, Expires 4/21/23		766		919,200		2,303
Wolfspeed Inc., June Strike Price $55.00, Expires 6/16/23		7		51,786		1,610
World Wrestling Entertainment Inc., July Strike Price $85.00, Expires 7/21/23		149		5,006,400		101,618
						1,897,633
Puts - Over-the-Counter 0.0%†
3M Co., Counterparty GSCO, January Strike Price $100.00, Expires 1/19/24		150		1,616,100		111,000
DJ EURO STOXX 50 Index, Counterparty GSCO, March Strike Price 4,290.00 EUR, Expires 3/20/23		372		1,576,677		36,215
DJ EURO STOXX 50 Index, Counterparty JPHQ, March Strike Price 4,240.00 EUR, Expires 3/30/23		174		737,478		14,863
DJ EURO STOXX 50 Index, Counterparty BZWS, May Strike Price 4,050.00 EUR, Expires 5/19/23		35		1,483,433		30,985
H & M Hennes & Mauritz AB, Counterparty CITI, March Strike Price 100.00 SEK, Expires 3/17/23		109		1,439,236		79

37

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Number of Contracts		Notional       Amount#			Value
Options Purchased (continued)
Puts - Over-the-Counter (continued)
SGX Nifty 50 Index, Counterparty JPHQ, March Strike Price $17,940.00, Expires 3/13/23		130		317,213		$	67,026
Softbank Group, Counterparty GSCO, March Strike Price 4,540.00 JPY, Expires 3/09/23		5,531		30,514,527			38
STOXX Europe 600 Automobiles & Parts Index, Counterparty GSCO, March Strike Price 585.00 EUR, Expires 3/17/23		17		531,191			2,886
							263,092
Currency Options 0.0%†
AUD/JPY, Counterparty JPHQ, March Strike Price 89.00 JPY, Expires 3/15/23		1		3,200,000	AUD		5,704
AUD/USD, Counterparty JPHQ, March Strike Price $0.64, Expires 3/15/23		1		4,000,000	AUD		825
EUR/SGD, Counterparty JPHQ, March Strike Price 1.35 SGD, Expires 3/15/23		1		2,400,000	EUR		1
USD/HKD, Counterparty JPHQ, May Strike Price 7.80 HKD, Expires 5/22/23		1		4,000,000			4,465
USD/JPY, Counterparty JPHQ, July Strike Price 115.00 JPY, Expires 7/17/23		1		200,000			6,302
USD/JPY, Counterparty JPHQ, August Strike Price 115.00 JPY, Expires 8/17/23		1		120,000			8,662
USD/JPY, Counterparty MSCS, August Strike Price 125.00 JPY, Expires 8/29/23		1		4,416,000			52,783
							78,742
Total Options Purchased (Cost $3,797,096)							2,785,258
Total Investments before Short Term Investments (Cost $601,338,874)							617,836,620
	Country		Shares
Short Term Investments 28.3%
Money Market Funds 27.4%
p,qDreyfus Government Cash Management, Institutional, 4.48%		United States		98,975,359			98,975,359
pFidelity Investments Money Market Government Portfolio, Institutional, 4.46%		United States		159,771,902			159,771,902
Total Money Market Funds (Cost $258,747,261)							258,747,261
Investments from Cash Collateral Received for Loaned Securities (Cost $3,565,000) 0.4%
Money Market Funds 0.4%
p,rInstitutional Fiduciary Trust Money Market Portfolio, 4.17%		United States		3,565,000			3,565,000

38

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal       Amount*		Value
Short Term Investments (continued)
U.S. Government and Agency Securities 0.5%
sU.S. Treasury Bill,
5/11/23		United States		1,635,000	$	1,619,998
6/13/23		United States		1,645,000		1,622,403
8/10/23		United States		1,660,000		1,624,116
Total U.S. Government and Agency Securities (Cost $4,866,849)						4,866,517
Total Investments (Cost $868,517,984) 93.8%						885,015,398
Options Written (0.1)%						(818,206	)
Securities Sold Short (16.2)%						(152,844,691	)
Other Assets, less Liabilities 22.5%						211,767,981
Net Assets 100.0%					$	943,120,482
	Number of Contracts		Notional Amount#
Options Written (0.1)%
Calls - Exchange-Traded (0.0)%†
3 Month EURIBOR, March Strike Price 99.00 EUR, Expires 3/10/23		80		19,428,000		—
3 Month EURIBOR, March Strike Price 97.25 EUR, Expires 3/13/23		40		9,709,500		(264	)
3 Month SOFR, March Strike Price $95.31, Expires 3/10/23		80		19,001,000		(500	)
3 Month SOFR, December Strike Price $98.00, Expires 12/15/23		60		14,212,500		(1,125	)
Activision Blizzard Inc., March Strike Price $80.00, Expires 3/17/23		198		1,509,750		(8,316	)
Activision Blizzard Inc., June Strike Price $90.00, Expires 6/16/23		585		4,326,075		(64,935	)
AMC Entertainment Holdings Inc., March Strike Price $20.00, Expires 3/17/23		274		195,636		(3,288	)
Apple Inc., April Strike Price $165.00, Expires 4/21/23		2		29,482		(166	)
Bristol-Myers Squibb Co., April Strike Price $75.00, Expires 4/21/23		1		6,896		(24	)
Charter Communications Inc., June Strike Price $420.00, Expires 6/16/23		1		36,761		(1,120	)
Cisco Systems Inc., April Strike Price $52.50, Expires 4/21/23		2		9,684		(52	)
The Coca-Cola Co., April Strike Price $62.50, Expires 4/21/23		4		23,804		(116	)
Crown Holdings Inc., April Strike Price $95.00, Expires 4/21/23		37		304,177		(3,515	)
E-mini S&P 500, June Strike Price $4,700.00, Expires 6/16/23		3		601,763		(405	)
Manchester United PLC, April Strike Price $31.00, Expires 4/21/23		204		423,300		(5,610	)
Merck & Co. Inc., April Strike Price $115.00, Expires 4/21/23		2		21,248		(128	)
Microchip Technology Inc., April Strike Price $90.00, Expires 4/21/23		3		24,309		(375	)
Morgan Stanley, April Strike Price $105.00, Expires 4/21/23		2		19,300		(186	)
Qualcomm Inc., April Strike Price $140.00, Expires 4/21/23		2		24,706		(264	)
Russell 2000 Index, March Strike Price $1,980.00, Expires 3/31/23		4		758,796		(8,056	)
Silicon Motion Technology Corp., September Strike Price $80.00, Expires 9/15/23		52		349,544		(39,520	)
Starbucks Corp., April Strike Price $115.00, Expires 4/21/23		3		30,627		(141	)

39

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Number of Contracts		Notional       Amount#			Value
Options Written (continued)
Calls - Exchange-Traded (continued)
Travelcenters of America Inc., June Strike Price $85.00, Expires 6/16/23		86		725,410		$	(9,030	)
U.S. Treasury 10 Year Note, March Strike Price $118.00, Expires 3/24/23		100		11,165,600			(1,563	)
U.S. Treasury 10 Year Note, April Strike Price $121.00, Expires 4/21/23		10		1,116,560			(156	)
United Parcel Service Inc., April Strike Price $195.00, Expires 4/21/23		1		18,249			(208	)
Vodafone Group PLC, April Strike Price 1.15 GBP, Expires 4/21/23		766		919,200			(6,910	)
							(155,973	)
Calls - Over-the-Counter (0.0)%†
Currency Options (0.0)%†
JPY/KRW, Counterparty JPHQ, August Strike Price 11.25 KRW, Expires 8/11/23		1		4,000,000	JPY		(2,235	)
USD/HKD, Counterparty JPHQ, December Strike Price 7.85 HKD, Expires 12/20/23		1		4,600,000			(9,379	)
USD/INR, Counterparty JPHQ, March Strike Price 90.00 INR, Expires 3/15/23		1		600,000			(1	)
USD/INR, Counterparty JPHQ, March Strike Price 95.00 INR, Expires 3/15/23		1		2,400,000			—
USD/KRW, Counterparty JPHQ, March Strike Price 1,300.00 KRW, Expires 3/08/23		1		1,000,000			(17,025	)
USD/SGD, Counterparty JPHQ, March Strike Price 1.37 SGD, Expires 3/27/23		1		1,500,000			(2,157	)
							(30,797	)
Puts - Exchange-Traded (0.1)%
1 Year SOFR, March Strike Price $95.00, Expires 3/10/23		60		14,260,500			(12,000	)
3 Month EURIBOR, December Strike Price 96.00 EUR, Expires 12/18/23		120		28,831,500			(92,813	)
3 Month SOFR, July Strike Price $94.25, Expires 7/14/23		70		16,554,125			(10,500	)
3 Month SOFR, September Strike Price $93.75, Expires 9/15/23		30		7,094,625			(1,500	)
3 Month SOFR, September Strike Price $94.00, Expires 9/15/23		20		4,729,750			(2,000	)
3 Month SOFR, December Strike Price $94.25, Expires 12/15/23		1		236,875			(363	)
Activision Blizzard Inc., March Strike Price $70.00, Expires 3/17/23		46		350,750			(1,012	)
Activision Blizzard Inc., May Strike Price $55.00, Expires 5/19/23		290		2,211,250			(8,120	)
Activision Blizzard Inc., January Strike Price $55.00, Expires 1/19/24		53		391,935			(5,247	)
Activision Blizzard Inc., January Strike Price $60.00, Expires 1/19/24		448		3,312,960			(100,352	)
BILL Holdings Inc., March Strike Price $90.00, Expires 3/17/23		4		33,852			(2,880	)
DJ EURO STOXX 50 Index, March Strike Price 3,700.00 EUR, Expires 3/17/23		48		2,034,422			(1,218	)
DJ EURO STOXX 50 Index, March Strike Price 4,100.00 EUR, Expires 3/17/23		37		1,568,201			(8,805	)
E-mini S&P 500, March Strike Price $3,000.00, Expires 3/17/23		8		1,646,100			(80	)
E-mini S&P 500, March Strike Price $3,200.00, Expires 3/17/23		8		1,646,100			(180	)
E-mini S&P 500, March Strike Price $3,850.00, Expires 3/17/23		6		1,192,650			(7,350	)
E-mini S&P 500, July Strike Price $3,550.00, Expires 7/31/23		12		2,431,200			(36,150	)
Eurodollar 1 Yr., June Strike Price $95.00, Expires 6/16/23		20		4,806,250			(11,500	)
Eurodollar 1 Yr., June Strike Price $96.00, Expires 6/16/23		20		4,806,250			(42,500	)
Focus Financial Partners Inc., March Strike Price $50.00, Expires 3/17/23		61		316,346			(305	)
GlycoMimetics Inc., March Strike Price $2.50, Expires 3/17/23		302		46,508			(27,180	)

40

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Number of Contracts		Notional     Amount#			Value
Options Written (continued)
Puts - Exchange-Traded (continued)
The Home Depot Inc., June Strike Price $245.00, Expires 6/16/23		42		1,245,468		$	(14,490	)
Invesco QQQ Trust Series 1, March Strike Price $277.00, Expires 3/17/23		60		1,761,360			(9,900	)
Lowe's Cos. Inc., June Strike Price $155.00, Expires 6/16/23		64		1,316,800			(9,664	)
Manchester United PLC, March Strike Price $18.00, Expires 3/17/23		59		122,425			(4,897	)
Manchester United PLC, March Strike Price $23.00, Expires 3/17/23		31		64,325			(10,618	)
National Instruments Corp., March Strike Price $50.00, Expires 3/17/23		39		196,989			(3,900	)
Qualtrics International Inc., March Strike Price $15.00, Expires 3/17/23		192		324,864			(2,880	)
Russell 2000 Index, March Strike Price $1,750.00, Expires 3/31/23		3		569,097			(3,060	)
S&P 500 Index, March Strike Price $3,800.00, Expires 3/17/23		9		3,573,135			(15,408	)
Silicon Motion Technology Corp., September Strike Price $60.00, Expires 9/15/23		52		349,544			(33,800	)
SPDR S&P 500 ETF Trust, April Strike Price $365.00, Expires 4/21/23		168		6,657,168			(46,704	)
U.S. Treasury 10 Year Note, March Strike Price $109.00, Expires 3/24/23		15		1,674,840			(2,344	)
U.S. Treasury 10 Year Note, March Strike Price $109.50, Expires 3/24/23		10		1,116,560			(2,344	)
U.S. Treasury 5 Year Note, March Strike Price $105.00, Expires 3/24/23		40		4,282,200			(3,750	)
U.S. Treasury 5 Year Note, March Strike Price $106.00, Expires 3/24/23		15		1,605,825			(3,984	)
U.S. Treasury 5 Year Note, March Strike Price $106.25, Expires 3/24/23		51		5,459,805			(17,133	)
Vodafone Group PLC, March Strike Price 0.80 GBP, Expires 3/17/23		1,439		1,726,800			—
Vodafone Group PLC, April Strike Price 0.70 GBP, Expires 4/21/23		400		480,000			—
Vodafone Group PLC, April Strike Price 0.75 GBP, Expires 4/21/23		766		919,200			—
Vodafone Group PLC, July Strike Price $10.00, Expires 7/21/23		109		130,473			(4,960	)
World Wrestling Entertainment Inc., July Strike Price $75.00, Expires 7/21/23		149		5,006,400			(50,660	)
							(612,551	)
Puts - Over-the-Counter (0.0)%†
DJ EURO STOXX 50 Index, Counterparty BZWS, May Strike Price 3,750.00 EUR, Expires 5/19/23		35		1,483,433			(12,365	)
STOXX Europe 600 Automobiles & Parts Index, Counterparty GSCO, March Strike Price 525.00 EUR, Expires 3/17/23		17		531,191			(473	)
							(12,838	)
Currency Options (0.0)%†
AUD/JPY, Counterparty JPHQ, March Strike Price 84.00 JPY, Expires 3/15/23		1		3,200,000	AUD		(345	)
AUD/USD, Counterparty JPHQ, March Strike Price $0.60, Expires 3/15/23		1		4,000,000	AUD		(22	)
EUR/SGD, Counterparty JPHQ, March Strike Price 1.29 SGD, Expires 3/15/23		1		2,400,000	EUR		—
USD/HKD, Counterparty JPHQ, May Strike Price 7.75 HKD, Expires 5/22/23		1		8,000,000			(3,073	)

41

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Number of Contracts		Notional     Amount#		Value
Options Written (continued)
Puts - Over-the-Counter (continued)
Currency Options (continued)
USD/INR, Counterparty JPHQ, March Strike Price 15,000.00 INR, Expires 3/29/23		1		1,000,000	$	(2,607	)
						(6,047	)
Total Options Written (Premiums Received $955,801)						(818,206	)
	Country		Shares
Securities Sold Short (16.2)%
Common Stocks (8.6)%
Aerospace & Defense (0.0)%†
Axon Enterprise Inc.		United States		402		(80,524	)
Virgin Galactic Holdings Inc.		United States		14,439		(82,880	)
						(163,404	)
Airlines (0.4)%
American Airlines Group Inc.		United States		33,134		(529,481	)
Cathay Pacific Airways Ltd.		Hong Kong		633,100		(622,871	)
Copa Holdings SA, A		Panama		27,461		(2,536,023	)
Jetblue Airways Corp.		United States		5,848		(48,538	)
						(3,736,913	)
Auto Components (0.0)%†
LCI Industries		United States		864		(97,468	)
Luminar Technologies Inc.		United States		20,885		(186,921	)
						(284,389	)
Automobiles (0.2)%
Fisker Inc.		United States		18,896		(140,397	)
Ford Motor Co.		United States		25,653		(309,632	)
Li Auto Inc., ADR		China		20,005		(472,318	)
Lucid Group Inc.		United States		23,028		(210,246	)
Winnebago Industries Inc.		United States		6,461		(410,661	)
						(1,543,254	)
Biotechnology (0.6)%
Apellis Pharmaceuticals Inc.		United States		11,510		(753,675	)
Avid Bioservices Inc.		United States		18,684		(307,539	)
Coherus Biosciences Inc.		United States		32,169		(217,784	)
Dynavax Technologies Corp.		United States		80,095		(824,978	)
Exact Sciences Corp.		United States		605		(37,710	)
Gossamer Bio Inc.		United States		23,266		(40,250	)
Halozyme Therapeutics Inc.		United States		4,426		(212,404	)
Insmed Inc.		United States		17,996		(366,758	)
Intercept Pharmaceuticals Inc.		United States		44,947		(907,030	)
Ionis Pharmaceuticals Inc.		United States		1,922		(69,000	)
Karyopharm Therapeutics Inc.		United States		13,430		(40,559	)
Mannkind Corp.		United States		232,339		(1,226,750	)

42

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Shares		Value
Securities Sold Short (continued)
Common Stocks (continued)
Biotechnology (continued)
Pharming Group NV		Netherlands		66,557	$	(80,566	)
Travere Therapeutics Inc.		United States		15,196		(336,743	)
						(5,421,746	)
Capital Markets (0.6)%
Ares Capital Corp.		United States		132,155		(2,558,521	)
Owl Rock Capital Corp.		United States		243,488		(3,335,786	)
Wisdomtree Inc.		United States		5,760		(34,387	)
						(5,928,694	)
Chemicals (0.3)%
Albemarle Corp.		United States		4,811		(1,223,485	)
Amyris Inc.		United States		33,301		(41,626	)
Danimer Scientific Inc.		United States		30,649		(79,074	)
Livent Corp.		United States		41,423		(971,370	)
The Sherwin-Williams Co.		United States		4,005		(886,507	)
						(3,202,062	)
Commercial Services & Supplies (0.1)%
Ritchie Bros Auctioneers Inc.		Canada		19,614		(1,199,788	)
Communications Equipment (0.0)%†
Lumentum Holdings Inc.		United States		335		(18,026	)
Construction & Engineering (0.1)%
Granite Construction Inc.		United States		12,979		(560,693	)
Consumer Finance (0.2)%
Encore Capital Group Inc.		United States		14,908		(770,445	)
EZCORP Inc., A		United States		75,235		(663,573	)
LendingTree Inc.		United States		168		(5,532	)
PRA Group Inc.		United States		3,296		(140,278	)
						(1,579,828	)
Diversified Consumer Services (0.0)%†
Chegg Inc.		United States		246		(3,909	)
Diversified Telecommunication Services (0.0)%†
Bandwidth Inc., A		United States		1,761		(28,000	)
Radius Global Infrastructure Inc., A		United States		14,962		(203,932	)
						(231,932	)
Electric Utilities (0.0)%†
Alliant Energy Corp.		United States		233		(11,946	)
PNM Resources Inc.		United States		4,124		(202,076	)
PPL Corp.		United States		1,391		(37,654	)
The Southern Co.		United States		225		(14,189	)
						(265,865	)
Electrical Equipment (0.4)%
Array Technologies Inc.		United States		23,154		(433,906	)
Bloom Energy Corp., A		United States		48,487		(1,051,683	)
Plug Power Inc.		United States		130,053		(1,933,888	)
Tpi Composites Inc.		United States		3,453		(39,917	)
						(3,459,394	)
Electronic Equipment, Instruments & Components (0.0)%†
PAR Technology Corp.		United States		3,509		(119,832	)

43

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Shares		Value
Securities Sold Short (continued)
Common Stocks (continued)
Electronic Equipment, Instruments & Components (continued)
Vishay Intertechnology Inc.		United States		1,141	$	(24,224	)
						(144,056	)
Energy Equipment & Services (0.1)%
Helix Energy Solutions Group Inc.		United States		125,441		(1,038,651	)
Transocean Ltd.		United States		36,539		(255,408	)
						(1,294,059	)
Entertainment (0.2)%
Cinemark Holdings Inc.		United States		59,911		(815,389	)
Live Nation Entertainment Inc.		United States		2,403		(173,160	)
The Marcus Corp.		United States		39,383		(633,672	)
Sea Ltd., ADR		Singapore		4,365		(272,769	)
Spotify Technology SA		United States		174		(20,236	)
						(1,915,226	)
Equity Real Estate Investment Trusts (REITs) (0.4)%
Braemar Hotels & Resorts Inc.		United States		68,633		(319,830	)
Pebblebrook Hotel Trust		United States		20,961		(299,114	)
Public Storage		United States		10,082		(3,014,014	)
Summit Hotel Properties Inc.		United States		12,766		(94,468	)
						(3,727,426	)
Food & Staples Retailing (0.0)%†
The Chefs' Warehouse Inc.		United States		10,270		(334,288	)
Food Products (0.0)%†
Post Holdings Inc.		United States		744		(66,930	)
Health Care Equipment & Supplies (0.2)%
Alphatec Holdings Inc.		United States		5,667		(83,928	)
CONMED Corp.		United States		1,677		(161,311	)
Cutera Inc.		United States		25,769		(835,689	)
Envista Holdings Corp.		United States		5,095		(196,973	)
Integer Holdings Corp.		United States		53		(3,974	)
Mesa Laboratories Inc.		United States		397		(70,078	)
NuVasive Inc.		United States		614		(26,543	)
Varex Imaging Corp.		United States		29,811		(527,356	)
						(1,905,852	)
Health Care Providers & Services (0.1)%
Oak Street Health Inc.		United States		5,718		(202,417	)
PetIQ Inc., A		United States		8,431		(78,577	)
Signify Health Inc., A		United States		29,722		(855,697	)
						(1,136,691	)
Health Care Technology (0.1)%
Evolent Health Inc., A		United States		6,457		(226,060	)
Health Catalyst Inc.		United States		7,842		(109,474	)
Nextgen Healthcare Inc.		United States		14,981		(271,306	)
						(606,840	)
Hotels, Restaurants & Leisure (0.3)%
Airbnb Inc., A		United States		641		(79,022	)
Carnival Corp.		United States		48,428		(514,305	)
The Cheesecake Factory Inc.		United States		1,196		(44,778	)
Marriott Vacations Worldwide Corp.		United States		2,514		(384,617	)
Norwegian Cruise Line Holdings Ltd.		United States		49,375		(731,738	)

44

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Shares		Value
Securities Sold Short (continued)
Common Stocks (continued)
Hotels, Restaurants & Leisure (continued)
Royal Caribbean Cruises Ltd.		United States		18,817	$	(1,329,233	)
						(3,083,693	)
Independent Power & Renewable Electricity Producers (0.0)%†
Sunnova Energy International Inc.		United States		10,942		(194,549	)
Interactive Media & Services (0.0)%
†fuboTV Inc.		United States		265		(506	)
Match Group Inc.		United States		3,138		(129,976	)
Snap Inc., A		United States		18,007		(182,771	)
						(313,253	)
Internet & Direct Marketing Retail (0.2)%
fDelivery Hero SE, 144A		South Korea		631		(25,357	)
Etsy Inc.		United States		2,507		(304,375	)
Groupon Inc., A		United States		2,925		(21,967	)
fJust Eat Takeaway.com NV, 144A		United Kingdom		1,089		(23,686	)
MercadoLibre Inc.		Brazil		401		(489,220	)
Wayfair Inc., A		United States		11,674		(472,680	)
Xometry Inc., A		United States		6,079		(184,863	)
						(1,522,148	)
IT Services (0.1)%
Cloudflare Inc., A		United States		856		(51,369	)
Digitalocean Holdings Inc.		United States		584		(18,676	)
i3 Verticals Inc., A		United States		6,910		(170,055	)
MongoDB Inc., A		United States		1,178		(246,815	)
Okta Inc., A		United States		925		(65,943	)
Repay Holdings Corp., A		United States		4,591		(38,932	)
Sabre Corp.		United States		21,662		(109,610	)
Shift4 Payments Inc., A		United States		7,100		(457,950	)
Shopify Inc., A		Canada		482		(19,829	)
						(1,179,179	)
Leisure Products (0.1)%
Topgolf Callaway Brands Corp.		United States		28,228		(654,325	)
Life Sciences Tools & Services (0.0)%†
Inotiv Inc.		United States		6,791		(50,932	)
Machinery (0.1)%
3d Systems Corp.		United States		1,852		(18,131	)
Desktop Metal Inc., A		United States		246,732		(375,033	)
The Greenbrier Cos. Inc.		United States		4,112		(132,036	)
						(525,200	)
Marine (0.4)%
A.P. Moller-Maersk AS, B		Denmark		296		(689,487	)
Eagle Bulk Shipping Inc.		United States		39,471		(2,576,272	)
						(3,265,759	)
Media (0.0)%†
Charter Communications Inc., A		United States		413		(151,823	)
Dish Network Corp., A		United States		5,023		(57,312	)
Magnite Inc.		United States		938		(10,440	)
Techtarget Inc.		United States		787		(29,694	)
						(249,269	)

45

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Shares		Value
Securities Sold Short (continued)
Common Stocks (continued)
Metals & Mining (1.0)%
Agnico Eagle Mines Ltd.		Canada		37,157	$	(1,710,337	)
ATI Inc.		United States		27,257		(1,107,997	)
Century Aluminum Co.		United States		22,300		(269,161	)
Ivanhoe Mines Ltd., A		Canada		51,266		(428,313	)
Lithium Americas Corp.		Canada		17,664		(416,693	)
MP Materials Corp.		United States		7,196		(251,860	)
Newmont Corp.		United States		23,006		(1,003,292	)
Pan American Silver Corp.		Canada		157,924		(2,346,751	)
Piedmont Lithium Inc.		United States		3,350		(217,415	)
United States Steel Corp.		United States		48,564		(1,487,515	)
						(9,239,334	)
Mortgage Real Estate Investment Trusts (REITs) (0.1)%
Arbor Realty Trust Inc.		United States		17,192		(259,255	)
Hannon Armstrong Sustainable Infrastructure Capital Inc.		United States		2,812		(88,325	)
PennyMac Mortgage Investment Trust		United States		17,396		(226,670	)
Redwood Trust Inc.		United States		24,787		(188,629	)
Two Harbors Investment Corp.		United States		3,338		(55,311	)
						(818,190	)
Multi-Utilities (0.1)%
WEC Energy Group Inc.		United States		9,619		(852,821	)
Oil, Gas & Consumable Fuels (0.1)%
California Resources Corp.		United States		29,190		(1,231,818	)
Personal Products (0.0)%†
The Beauty Health Co.		United States		9,703		(122,355	)
Herbalife Nutrition Ltd.		United States		14,666		(283,787	)
						(406,142	)
Pharmaceuticals (0.2)%
Avadel Pharmaceuticals PLC, ADR		United States		33,047		(328,818	)
Collegium Pharmaceutical Inc.		United States		12,507		(331,811	)
Innoviva Inc.		United States		11,225		(135,486	)
Pacira Biosciences Inc.		United States		2,583		(109,958	)
Revance Therapeutics Inc.		United States		17,318		(600,934	)
						(1,507,007	)
Professional Services (0.0)%†
Fiverr International Ltd.		Israel		299		(11,843	)
Upwork Inc.		United States		1,697		(19,244	)
						(31,087	)
Real Estate Management & Development (0.1)%
Anywhere Real Estate Inc.		United States		7,765		(44,959	)
Opendoor Technologies Inc.		United States		26,865		(38,686	)
Redfin Corp.		United States		8,268		(61,266	)
Storagevault Canada Inc.		Canada		12,427		(56,192	)
Zillow Group Inc., C		United States		7,471		(313,782	)
						(514,885	)
Road & Rail (0.2)%
Canadian Pacific Railway Ltd.		Canada		10,427		(791,826	)
Old Dominion Freight Line Inc.		United States		2,417		(819,992	)
Uber Technologies Inc.		United States		635		(21,120	)
						(1,632,938	)

46

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Shares		Value
Securities Sold Short (continued)
Common Stocks (continued)
Semiconductors & Semiconductor Equipment (0.6)%
Ams-Osram AG		Austria		10,186	$	(78,971	)
Enphase Energy Inc.		United States		9,284		(1,954,560	)
First Solar Inc.		United States		5,323		(900,332	)
Microchip Technology Inc.		United States		8,020		(649,861	)
ON Semiconductor Corp.		United States		352		(27,248	)
Semtech Corp.		United States		11,195		(344,918	)
SMART Global Holdings Inc.		United States		5,026		(83,934	)
SolarEdge Technologies Inc.		United States		882		(280,406	)
Veeco Instruments Inc.		United States		79,084		(1,682,117	)
Wolfspeed Inc.		United States		474		(35,067	)
						(6,037,414	)
Software (0.5)%
8x8 Inc.		United States		55,896		(297,367	)
Altair Engineering Inc., A		United States		3,078		(197,177	)
Alteryx Inc., A		United States		317		(20,703	)
Bentley Systems Inc., B		United States		1,755		(71,007	)
Bill Holdings Inc.		United States		2,362		(199,896	)
Blackline Inc.		United States		3,967		(271,184	)
Cerence Inc.		United States		6,265		(171,536	)
Confluent Inc., A		United States		2,046		(49,902	)
eCoupa Software Inc.		United States		500		(40,485	)
Datadog Inc., A		United States		2,299		(175,919	)
Dye & Durham Ltd.		Canada		3,783		(52,898	)
Envestnet Inc.		United States		1,361		(85,076	)
Everbridge Inc.		United States		172		(5,621	)
Five9 Inc.		United States		572		(37,752	)
Guidewire Software Inc.		United States		841		(59,047	)
HubSpot Inc.		United States		260		(100,584	)
Marathon Digital Holdings Inc.		United States		1,062		(7,540	)
Mitek Systems Inc.		United States		16,743		(155,710	)
Model N Inc.		United States		2,505		(83,166	)
Nutanix Inc., A		United States		1,842		(52,037	)
Pagerduty Inc.		United States		3,278		(97,881	)
Palo Alto Networks Inc.		United States		5,863		(1,104,413	)
Porch Group Inc.		United States		11,274		(28,185	)
Q2 Holdings Inc.		United States		1,667		(53,811	)
Rapid7 Inc.		United States		1,668		(78,896	)
Splunk Inc.		United States		908		(93,070	)
Unity Software Inc.		United States		313		(9,528	)
Workiva Inc., A		United States		847		(75,552	)
Zscaler Inc.		United States		3,835		(502,960	)
						(4,178,903	)
Specialty Retail (0.3)%
Burlington Stores Inc.		United States		2,499		(535,411	)
Guess? Inc.		United States		24,630		(518,215	)
The Home Depot Inc.		United States		2,709		(803,327	)
National Vision Holdings Inc.		United States		22,381		(836,154	)
						(2,693,107	)
Trading Companies & Distributors (0.1)%
United Rentals Inc.		United States		2,421		(1,134,311	)

47

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Shares		Value
Securities Sold Short (continued)
Common Stocks (continued)
Water Utilities (0.1)%
American Water Works Co. Inc.		United States		6,376	$	(895,063	)
Total Common Stocks (Proceeds $89,928,764)						(80,942,592	)
Exchange Traded Funds (5.8)%
Industrial Select Sector SPDR Fund		United States		21,846		(2,205,791	)
Invesco QQQ Series 1 ETF		United States		3,069		(900,936	)
iShares iBoxx High Yield Corporate Bond ETF		United States		64,543		(4,810,390	)
iShares Russell 1000 ETF		United States		198,096		(43,412,738	)
SPDR Bloomberg High Yield Bond ETF		United States		27,581		(2,520,627	)
Utilities Select Sector SPDR Fund		United States		16,508		(1,073,020	)
Total Exchange Traded Funds (Proceeds $60,667,106)						(54,923,502	)
Preferred Stocks (Proceeds $379,016) (0.0)%†
Automobiles (0.0)%†
Dr ING HC F Porsche AG, pfd., zero cpn.		Germany		3,306		(398,420	)
			Principal   Amount*
Corporate Bonds and Notes (1.4)%
Automobiles (0.1)%
Ford Motor Credit Co. LLC, senior note, 4.95%, 5/28/27		United States		550,000		(513,026	)
f,nRivian Holdings LLC/Rivian LLC/Rivian Automotive LLC, senior secured note, 144A, FRN, 10.164%, (6-Month USD LIBOR + 5.63%), 10/15/26		United States		149,000		(146,020	)
						(659,046	)
Banks (0.1)%
f,hIndustrial & Commercial Bank of China Ltd., junior sub. note, Reg S, 3.20% to 9/24/26, FRN thereafter, Perpetual		China		761,000		(706,875	)
SVB Financial Group, senior note,
1.80%, 10/28/26		United States		308,000		(268,676	)
2.10%, 5/15/28		United States		295,000		(248,057	)
						(1,223,608	)
Building Products (0.1)%
3M Co.,
senior bond, 2.875%, 10/15/27		United States		494,000		(449,835	)
senior bond, 2.375%, 8/26/29		United States		278,000		(233,570	)
senior note, 2.65%, 4/15/25		United States		277,000		(262,512	)
						(945,917	)
Chemicals (0.0)%†
Celanese US Holdings LLC, senior note, 6.33%, 7/15/29		United States		157,000		(154,081	)
Construction & Engineering (0.1)%
Fluor Corp., senior bond, 4.25%, 9/15/28		United States		951,000		(859,003	)
Consumer Finance (0.2)%
Ally Financial Inc., junior sub. bond, 5.75%, 11/20/25		United States		536,000		(525,115	)
Onemain Finance Corp., senior note,
6.875%, 3/15/25		United States		220,000		(214,987	)
7.125%, 3/15/26		United States		1,171,000		(1,139,489	)
						(1,879,591	)

48

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal         Amount*			Value
Securities Sold Short (continued)
Corporate Bonds and Notes (continued)
Diversified Financial Services (0.1)%
fKronos Acquisition Holdings Inc. / KIK Custom Products Inc., senior note, 144A, 7.00%, 12/31/27		Canada		664,000		$	(570,140	)
fMPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28		United States		568,000			(369,910	)
							(940,050	)
Electric Utilities (0.1)%
fVistra Operations Co. LLC, senior note, 144A,
5.00%, 7/31/27		United States		308,000			(286,440	)
4.375%, 5/01/29		United States		257,000			(222,315	)
							(508,755	)
Health Care Providers & Services (0.1)%
fRadiology Partners Inc., senior note, 144A, 9.25%, 2/01/28		United States		104,000			(62,306	)
fSelect Medical Corp., senior note, 144A, 6.25%, 8/15/26		United States		90,000			(86,053	)
Tenet Healthcare Corp., senior secured note, 6.25%, 2/01/27		United States		881,000			(858,823	)
							(1,007,182	)
Hotels, Restaurants & Leisure (0.0)%†
fMohegan Tribal Gaming Authority, senior secured note, 144A, 8.00%, 2/01/26		United States		275,000			(257,884	)
Media (0.3)%
DISH DBS Corp., senior note, 5.875%, 11/15/24		United States		298,000			(279,476	)
7.75%, 7/01/26		United States		381,000			(296,134	)
Grupo Televisa Sab, senior bond, 6.125%, 1/31/46		Mexico		471,000			(471,791	)
iHeartCommunications Inc., senior note, 8.375%, 5/01/27		United States		1,039,411			(915,721	)
fScripps Escrow II Inc., senior bond, 144A, 5.375%, 1/15/31		United States		744,000			(527,544	)
fScripps Escrow Inc., senior note, 144A, 5.875%, 7/15/27		United States		29,000			(23,252	)
fSinclair Television Group Inc., senior bond, 144A, 5.50%, 3/01/30		United States		120,000			(88,648	)
							(2,602,566	)
Oil, Gas & Consumable Fuels (0.1)%
fTallgrass Energy Partners LP / Tallgrass Energy Finance Corp.,senior bond, 144A, 6.00%, 12/31/30		United States		482,000			(416,289	)
Pharmaceuticals (0.0)%†
fOwens & Minor Inc., senior note, 144A, 6.625%, 4/01/30		United States		131,000			(107,930	)
Semiconductors & Semiconductor Equipment (0.1)%
Intel Corp., senior bond, 4.75%, 3/25/50		United States		743,000			(644,362	)
4.90%, 8/05/52		United States		474,000			(420,682	)
							(1,065,044	)
Specialty Retail (0.0)%†
QVC Inc., senior secured bond, 4.45%, 2/15/25		United States		118,000			(95,436	)
Total Corporate Bonds and Notes (Proceeds $13,349,204)							(12,722,382	)
Foreign Government and Agency Securities (0.2)%
fGovernment of Italy, senior bond, Reg S, 0.95%, 6/01/32		Italy		467,000	EUR		(370,008	)
2.50%, 12/01/32		Italy		833,000	EUR		(754,248	)

49

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

	Country		Principal         Amount*		Value
Securities Sold Short (continued)
Foreign Government and Agency Securities (continued)
Government of Turkey, senior bond,
5.75%, 3/22/24		Turkey		573,000	$	(560,595	)
7.375%, 2/05/25		Turkey		590,000		(582,270	)
Total Foreign Government and Agency Securities (Proceeds $2,362,850)						(2,267,121	)
U.S. Government and Agency Securities (0.2)%
U.S. Treasury Bond,
3.00%, 8/15/52		United States		686,700		(577,472	)
4.00%, 11/15/52		United States		147,000		(149,664	)
U.S. Treasury Note,
4.00%, 2/29/28		United States		640,000		(635,300	)
3.50%, 2/15/33		United States		236,000		(228,238	)
Total U.S. Government and Agency Securities (Proceeds $1,630,081)						(1,590,674	)
Total Securities Sold Short (Proceeds $168,317,021)					$	(152,844,691	)

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

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

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

^a Non-income producing.

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

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

^d A portion or all of the security has been segregated as collateral for securities sold short, open swap contracts, open forward exchange contracts, open futures contracts and/or open written option contracts. At February 28, 2023, the aggregate value of these securities and/or cash pledged amounted to $211,192,116, representing 22.4% of net assets.

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

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

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

^h Perpetual security with no stated maturity date.

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

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

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

^l See Note 4 regarding unfunded loan commitments.

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

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

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

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

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

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

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

50

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

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

Futures Contracts

Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Commodity Contractsa
Aluminum		Long		20	$	1,168,565		3/13/23	$	(129,996	)
Aluminum		Short		20		1,168,565		3/13/23		27,843
Aluminum		Short		16		953,600		6/19/23		34,629
Brent Crude Oil		Long		10		834,500		3/31/23		(8,735	)
Cocoa		Long		17		435,348		5/15/23		24,305
Coffee		Short		10		698,625		5/18/23		(43,436	)
Copper		Long		21		4,703,475		3/13/23		112,498
Copper		Short		21		4,703,475		3/13/23		(163,546	)
Copper		Long		14		3,137,050		6/19/23		15,505
Copper		Short		2		448,150		6/19/23		(1,669	)
Corn		Long		82		2,584,025		5/12/23		(197,656	)
Cotton		Short		16		672,240		5/08/23		10,409
Gasoline		Long		17		1,886,388		3/31/23		(14,528	)
Gold 100 Oz		Short		4		734,680		4/26/23		(7,929	)
Hard Red Winter Wheat		Short		30		1,209,750		7/14/23		105,465
Low Sulphur Gas Oil		Long		8		660,000		4/12/23		6,813
Natural Gas		Short		27		741,690		3/29/23		(58,080	)
NY Harbor		Long		4		471,341		3/31/23		(2,004	)
Silver		Long		7		737,485		5/26/23		(23,241	)
Soybean Meal		Long		25		1,167,750		5/12/23		(33,381	)
Soybean Oil		Short		19		684,456		5/12/23		12,119
Soybeans		Long		51		3,771,450		5/12/23		(126,856	)
Sugar		Long		51		1,146,398		4/28/23		16,163
Wheat		Short		44		1,552,100		5/12/23		181,511
WTI Crude Oil		Short		5		385,250		3/21/23		5,746
Zinc		Long		19		1,431,412		3/13/23		(112,946	)
Zinc		Short		19		1,431,412		3/13/23		(6,675	)
Zinc		Long		10		749,625		6/19/23		(24,797	)
Zinc		Short		9		674,663		6/19/23		4,907
										(397,562	)
Currency Contractsa
U.S. Dollar Index		Long		16		1,677,200		3/13/23		24,325
Equity Contracts
CAC 40 10 Euro Indexa		Long		46		3,540,567		3/17/23		(783	)
CBOE Volatility Index		Long		8		166,206		3/22/23		(13,772	)
CBOE Volatility Index		Long		8		174,014		4/19/23		(9,950	)
CBOE Volatility Index		Long		1		22,151		5/17/23		(13	)
CBOE Volatility Index		Long		13		292,731		6/21/23		(7,268	)
CBOE Volatility Index		Long		23		529,377		7/19/23		(2,933	)
CBOE Volatility Index		Long		10		230,020		8/16/23		(2,571	)
DAX Indexa		Long		19		7,740,091		3/17/23		328,921
DJ EURO STOXX 50 Indexa		Long		157		7,052,523		3/17/23		359,799
DJ EURO STOXX 50 Index		Short		4		179,682		3/17/23		(14,021	)
DJIA Mini E-CBOT Indexa		Short		11		1,797,510		3/17/23		32,677
E-Mini Russell 2000a		Short		4		379,820		3/17/23		1,577
FTSE 100 Indexa		Long		118		11,158,327		3/17/23		341,036
FTSE China A50 Index		Long		24		320,160		3/30/23		(9,371	)
Hang Seng China Enterprises Index		Long		53		2,227,183		3/30/23		(346,877	)
Hang Seng Indexa		Short		5		628,774		3/30/23		16,104
Hang Seng Tech Index		Long		15		375,602		3/30/23		(24,360	)

51

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Futures Contracts (continued)

Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Equity Contracts (continued)
NASDAQ 100 E-Mini Indexa		Short		6	$	1,448,670		3/17/23	$	(15,729	)
NASDAQ 100 E-Mini Index		Short		2		488,240		6/16/23		12,723
S&P 500 E-Mini Index		Long		2		397,550		3/17/23		13,199
S&P 500 E-Mini Indexa		Short		101		20,076,275		3/17/23		111,508
SGX Nifty 50		Short		48		1,670,304		3/29/23		46,185
TOPIX Index		Short		1		146,524		3/09/23		(1,489	)
VSTOXX		Long		15		32,604		4/19/23		(21	)
VSTOXX		Long		14		30,726		5/17/23		(133	)
										814,438
Interest Rate Contracts
3 Month EURIBOR		Long		37		9,428,088		6/19/23		(6,123	)
3 Month EURIBOR		Short		46		11,694,647		9/18/23		19,178
3 Month EURIBORa		Short		259		65,818,554		12/18/23		338,171
3 Month EURIBOR		Short		96		24,408,759		3/18/24		219,079
3 Month EURIBOR		Long		144		36,664,542		6/17/24		(284,785	)
3 Month EURIBORa		Short		122		31,063,015		6/17/24		95,316
3 Month EURIBOR		Long		74		18,873,787		9/16/24		(165,513	)
3 Month EURIBOR		Short		3		766,423		12/16/24		2,974
3 Month SOFR		Short		12		2,838,750		9/19/23		128
3 Month SOFR		Short		60		14,189,250		12/19/23		8,888
3 Month SOFRa		Short		374		88,591,250		3/19/24		411,254
3 Month SOFR		Short		129		30,660,075		6/18/24		7,178
3 Month SOFR		Long		80		19,097,000		9/17/24		(87,077	)
3 Month SOFRa		Short		153		36,523,013		9/17/24		100,153
3 Month SOFR		Short		40		9,588,500		12/17/24		37,813
3 Month SOFR		Long		33		7,949,700		6/17/25		(16,064	)
3 Month SOFR		Short		27		6,527,925		6/15/27		2,906
10 Yr. Mini JGBa		Short		6		646,425		3/10/23		(763	)
30 Day Federal Funds		Long		6		2,378,315		4/28/23		116
30 Day Federal Funds		Short		36		14,234,639		5/31/23		15,305
30 Day Federal Funds		Short		93		36,687,560		7/31/23		56,003
30 Day Federal Funds		Short		30		11,825,321		8/31/23		13,183
30 Day Federal Funds		Short		42		16,555,449		10/31/23		28,258
30 Day Federal Funds		Short		10		3,947,191		1/31/24		9,108
90 Day Sterlinga		Short		31		8,907,724		9/17/24		38,344
ASX 90 Day Bank Accepted Bill		Short		25		16,641,139		9/07/23		1,193
ASX 90 Day Bank Accepted Bill		Long		25		16,643,981		3/07/24		(681	)
Australian 10 Yr. Bonda		Short		74		5,858,846		3/15/23		89,068
Canadian 10 Yr. Bonda		Short		68		6,053,969		6/21/23		(14,084	)
Euro-BOBLa		Short		92		11,207,984		3/08/23		255,556
Euro-Bunda		Short		49		6,888,368		3/08/23		218,351
Euro-Bund		Short		13		1,814,326		6/08/23		(7,914	)
Euro-Buxl		Long		3		426,084		3/08/23		2,196
Euro-SCHATZa		Short		309		34,310,546		3/08/23		247,259
Japanese 10 Yr. Bond		Short		16		17,233,300		3/13/23		(169,867	)
Japanese 10 Yr. Bond		Long		1		1,067,313		6/13/23		1,024
Korean 3 Yr. Bond		Long		219		17,061,561		3/21/23		(144,286	)
Korean 10 Yr. Bond		Long		51		4,231,853		3/21/23		(95,946	)
Long Gilta		Short		24		2,885,687		6/28/23		25,740
Long-Term Euro-BTP		Short		43		5,125,266		3/08/23		4,571
U.S. Treasury 2 Yr. Note		Long		10		2,037,266		6/30/23		(4,465	)
U.S. Treasury 2 Yr. Notea		Short		197		40,134,133		6/30/23		36,203
U.S. Treasury 5 Yr. Note		Long		17		1,819,930		6/30/23		(4,276	)

52

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Futures Contracts (continued)

Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Interest Rate Contracts (continued)
U.S. Treasury 5 Yr. Notea		Short		165	$	17,664,023		6/30/23	$	2,827
U.S. Treasury 10 Yr. Notea		Short		97		10,830,656		6/21/23		(10,338	)
U.S. Treasury 10 Yr. Ultra		Short		113		13,242,187		6/21/23		(25,245	)
U.S. Treasury Long Bonda		Short		39		4,883,531		6/21/23		15,162
U.S. Treasury Ultra Bond		Short		11		1,485,688		6/21/23		11,177
										1,276,255
Total Futures Contracts									$	1,717,456

*As of period end.

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

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

Forward Exchange Contracts

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

53

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

54

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

55

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

56

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)
Indian Rupee		JPHQ		Buy		1,030,423,626		12,360,000			6/21/23	$	11,618	$	(3,459	)
Indian Rupee		JPHQ		Sell		29,848,672		360,000			6/21/23		1,755		(28	)
Indonesian Rupiah		JPHQ		Buy		51,177,830,000		3,300,000			6/21/23		45,342		–
Indonesian Rupiah		JPHQ		Sell		51,177,830,000		3,307,481			6/21/23		146		(38,006	)
Japanese Yen		JPHQ		Buy		48,266,521		360,000			6/21/23		580		–
Philippine Peso		JPHQ		Sell		28,992,600		520,000			6/21/23		–		(1,631	)
South Korean Won		JPHQ		Sell		13,398,000,000		10,400,000			6/21/23		217,815		–
Singapore Dollar		JPHQ		Sell		19,472,424		14,400,000			7/10/23		–		(104,216	)
Japanese Yen		JPHQ		Buy		63,707,282		504,000			7/19/23		–		(25,883	)
Japanese Yen		JPHQ		Sell		63,661,750		504,000			7/19/23		26,225		–
Singapore Dollar		JPHQ		Buy		15,284,385		11,600,000			7/20/23		–		(210,619	)
Indian Rupee		JPHQ		Buy		16,552,400		200,000			8/01/23		–		(1,790	)
South Korean Won		JPHQ		Sell		35,226,000		3,600,000	JPY		8/16/23		706		(426	)
Philippine Peso		JPHQ		Buy		27,723,250		500,000			8/16/23		–		(1,988	)
Philippine Peso		JPHQ		Sell		83,167,000		1,500,000			8/16/23		6,013		–
Japanese Yen		JPHQ		Sell		3,600,000		35,215,200	KRW		8/16/23		839		(1,127	)
Singapore Dollar		JPHQ		Sell		3,975,690		3,000,000			8/17/23		34,058		–
Chinese Yuan		JPHQ		Buy		62,728,446		9,340,000			8/21/23		11,614		(209,365	)
Chinese Yuan		JPHQ		Sell		63,980,954		9,367,929			8/21/23		110,551		(67,414	)
Singapore Dollar		JPHQ		Sell		3,994,235		3,000,000			8/21/23		19,736		–
Singapore Dollar		JPHQ		Sell		2,671,000		2,000,000			8/31/23		6,245		–
Indian Rupee		JPHQ		Buy		8,370,750		100,000			9/20/23		–		(40	)
Indian Rupee		JPHQ		Sell		846,498,490		10,100,000			9/20/23		–		(8,495	)
Philippine Peso		JPHQ		Buy		114,810,000		2,000,000			9/20/23		60,643		–
Philippine Peso		JPHQ		Sell		83,580,000		1,500,000			9/20/23		–		(118	)
Taiwan Dollar		JPHQ		Buy		9,600,000		320,000			9/22/23		2,216		–
Singapore Dollar		JPHQ		Buy		19,360,000		14,334,001			9/25/23		187,678		(55,867	)
Singapore Dollar		JPHQ		Sell		19,360,001		13,763,575			9/25/23		2,210		(704,450	)
Indian Rupee		JPHQ		Buy		42,700,000		500,000			10/16/23		9,202		–
Indian Rupee		JPHQ		Sell		42,700,000		503,085			10/16/23		–		(6,116	)
Hong Kong Dollar		JPHQ		Buy		104,904,303		13,500,000			12/15/23		–		(40,169	)
Hong Kong Dollar		JPHQ		Sell		4,661,772		600,000			12/20/23		1,827		–
Chinese Yuan		JPHQ		Buy		40,875,298		6,000,000			12/21/23		9,503		–
Chinese Yuan		JPHQ		Sell		41,233,800		6,000,000			12/21/23		–		(62,209	)
Hong Kong Dollar		JPHQ		Buy		4,662,600		600,000			12/22/23		–		(1,704	)
Singapore Dollar		JPHQ		Buy		4,735,476		3,600,000			1/10/24		–		(46,327	)
Singapore Dollar		JPHQ		Sell		7,899,000		6,000,000			1/10/24		72,303		–
Singapore Dollar		JPHQ		Sell		15,197,979		11,600,000			1/22/24		189,371		–
Chinese Yuan		JPHQ		Sell		3,208,013		480,000			2/07/24		6,845		–
Chinese Yuan		JPHQ		Buy		19,856,510		3,000,000			3/15/24		–		(65,784	)
Chinese Yuan		JPHQ		Sell		20,367,298		3,000,000			3/15/24		–		(9,696	)
South Korean Won		JPHQ		Buy		21,128,562,000		17,400,000			3/15/24		–		(1,105,270	)
South Korean Won		JPHQ		Sell		10,172,000,000		8,000,000			3/15/24		155,169		–
South Korean Won		JPHQ		Buy		13,136,320,000		10,400,000			6/21/24		–		(269,032	)
Indian Rupee		JPHQ		Sell		16,941,400		200,000			8/01/24		–		(621	)
Philippine Peso		JPHQ		Buy		84,355,050		1,500,000			9/20/24		8,225		–
Philippine Peso		JPHQ		Sell		116,630,000		2,000,000			9/20/24		–		(85,285	)
Euro		JPHQ		Sell		2,900,000		3,396,074			3/31/25		232,000		–
Total Forward Exchange Contracts												$	9,851,122	$	(9,859,974)
Net unrealized appreciation (depreciation)														$	(8,852	)

*In U.S. dollars unless otherwise indicated.

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

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

57

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

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

Credit Default Swap Contracts

Description	Annual Payment Rate Received (Paid)		Payment Frequency		Maturity Date		Notional Amounta		Value		Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)		Ratingb
Centrally Cleared Swap Contracts
Contracts to Buy Protectionc
Single Name
Government of Indonesia		(1.00)%	Quarterly			12/20/27		300,000	$	(997)	$	8,400		$	(9,397)
Traded Index
CDX.NA.HY.39		(5.00)%	Quarterly			12/20/27		1,750,000		(25,576)		(23,151	)		(2,425)
CDX.NA.HY.CDSI		(1.00)%	Quarterly			12/20/27		600,000		(6,087)		2,257			(8,344)
Total Centrally Cleared Swap Contracts									$	(32,660)	$	(12,494	)	$	(20,166)
OTC Swap Contracts
Contracts to Buy Protectionc
Single Name				Counterparty
Air France-KLM		(5.00)%	Quarterly	CITI		12/20/27		27,000 EUR		(841)		2,775			(3,616)
Air France-KLM		(5.00)%	Quarterly	CITI		12/20/27		38,000 EUR		(1,183)		3,820			(5,003)
Air France-KLM		(5.00)%	Quarterly	CITI		12/20/27		70,000 EUR		(2,179)		5,082			(7,261)
Air France-KLM		(5.00)%	Quarterly	CITI		12/20/27		80,000 EUR		(19,177)		7,626			(26,803)
Air France-KLM		(5.00)%	Quarterly	CITI		12/20/27		132,0000 EUR		(4,110)		10,106			(14,216)
Air France-KLM		(5.00)%	Quarterly	JPHQ		6/20/24		200,000 EUR		(9,250)		3,394			(12,644)
Air France-KLM		(5.00)%	Quarterly	MSCO		6/20/24		100,000 EUR		(4,625)		2,187			(6,812)
Ally Financial Inc.		(5.00)%	Quarterly	BNPP		12/20/27		671,000		(77,664)		(48,657)			(29,007)
Ally Financial Inc.		(5.00)%	Quarterly	BNPP		12/20/27		213,000		(24,653)		(16,292)			(8,361)
Ally Financial Inc.		(5.00)%	Quarterly	BNPP		12/20/27		104,000		(12,037)		(8,614)			(3,423)
Ally Financial Inc.		(5.00)%	Quarterly	CITI		12/20/24		224,000		(16,491)		(9,896)			(6,595)
Ally Financial Inc.		(5.00)%	Quarterly	GSCO		12/20/27		274,000		(31,714)		(21,303)			(10,411)
Ally Financial Inc.		(5.00)%	Quarterly	GSCO		12/20/27		76,000		(8,796)		(6,467)			(2,329)
Ally Financial Inc.		(5.00)%	Quarterly	GSCO		12/20/27		81,000		(9,375)		(6,084)			(3,291)
Ally Financial Inc.		(5.00)%	Quarterly	GSCO		12/20/27		63,000		(7,292)		(5,717)			(1,575)
Ally Financial Inc.		(5.00)%	Quarterly	GSCO		12/20/27		66,000		(7,639)		(5,568)			(2,071)
Ally Financial Inc.		(5.00)%	Quarterly	MSCO		12/20/24		190,000		(13,988)		(8,349)			(5,639)
Altice France Holding SA		(5.00)%	Quarterly	BNPP		12/20/27		10,000 EUR		573		741			(168)
Altice France Holding SA		(5.00)%	Quarterly	JPHQ		12/20/27		7,000 EUR		401		642			(241)
Altice France Holding SA		(5.00)%	Quarterly	JPHQ		12/20/27		17,000 EUR		974		1,348			(374)
Altice France Holding SA		(5.00)%	Quarterly	JPHQ		12/20/27		17,000 EUR		974		1,464			(490)
Altice France Holding SA		(5.00)%	Quarterly	JPHQ		12/20/27		45,000 EUR		2,578		3,902			(1,324)
American Airlines Inc.		(5.00)%	Quarterly	BZWS		12/20/23		111,000		(2,675)		2,293			(4,968)
American Airlines Inc.		(5.00)%	Quarterly	BZWS		12/20/23		154,000		(3,711)		2,717			(6,428)
American Airlines Inc.		(5.00)%	Quarterly	BZWS		6/20/24		143,000		(1,730)		3,898			(5,628)
American Airlines Inc.		(5.00)%	Quarterly	BZWS		6/20/24		286,000		(3,460)		15,645			(19,105)
American Airlines Inc.		(5.00)%	Quarterly	BZWS		6/20/24		178,000		(2,153)		16,597			(18,750)
American Airlines Inc.		(5.00)%	Quarterly	BZWS		12/20/24		78,000		(88)		9,557			(9,645)
American Airlines Inc.		(5.00)%	Quarterly	BZWS		6/20/25		72,000		939		7,998			(7,059)
American Airlines Inc.		(5.00)%	Quarterly	BZWS		6/20/25		288,000		3,757		30,366			(26,609)
American Airlines Inc.		(5.00)%	Quarterly	GSCO		12/20/23		216,000		(5,206)		2,948			(8,154)
American Airlines Inc.		(5.00)%	Quarterly	GSCO		12/20/23		66,000		(1,591)		3,135			(4,726)
American Airlines Inc.		(5.00)%	Quarterly	GSCO		12/20/23		155,000		(3,736)		5,392			(9,128)
American Airlines Inc.		(5.00)%	Quarterly	GSCO		12/20/23		483,000		(11,640)		5,845			(17,485)
American Airlines Inc.		(5.00)%	Quarterly	GSCO		6/20/24		41,000		(496)		2,809			(3,305)
American Airlines Inc.		(5.00)%	Quarterly	GSCO		6/20/24		189,000		(2,286)		14,214			(16,500)
American Airlines Inc.		(5.00)%	Quarterly	GSCO		12/20/24		70,000		(79)		9,006			(9,085)
American Airlines Inc.		(5.00)%	Quarterly	GSCO		12/20/24		339,000		(383)		24,090			(24,473)

58

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

59

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

60

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

61

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 Steel Corp.		(1.00	)%		Quarterly		GSCO		12/20/27		6,983,000 JPY	$	(1,099	)	$	(1,030	)	$	(69	)
Nippon Steel Corp.		(1.00	)%		Quarterly		JPHQ		12/20/27		27,112,000 JPY		(4,267	)		(4,004	)		(263	)
Nippon Steel Corp.		(1.00	)%		Quarterly		JPHQ		12/20/27		10,243,000 JPY		(1,612	)		(1,574	)		(38	)
Nippon Steel Corp.		(1.00	)%		Quarterly		MSCO		12/20/27		26,520,000 JPY		(4,173	)		(3,866	)		(307	)
Rakuten Group Inc.		(1.00	)%		Quarterly		BZWS		12/20/24		12,659,000 JPY		5,430			1,764			3,666
Rakuten Group Inc.		(1.00	)%		Quarterly		JPHQ		12/20/24		14,292,000 JPY		6,131			3,231			2,900
Rakuten Group Inc.		(1.00	)%		Quarterly		JPHQ		6/20/27		473,000 JPY		492			250			242
Rakuten Group Inc.		(1.00	)%		Quarterly		JPHQ		6/20/27		3,263,000 JPY		3,397			2,241			1,156
Rakuten Group Inc.		(1.00	)%		Quarterly		JPHQ		6/20/27		7,070,000 JPY		7,360			4,994			2,366
Rakuten Group Inc.		(1.00	)%		Quarterly		JPHQ		12/20/27		7,202,000 JPY		8,292			5,707			2,585
Simon Property Group LP		(1.00	)%		Quarterly		BNPP		12/20/27		271,000		(2,096	)		3,989			(6,085	)
Simon Property Group LP		(1.00	)%		Quarterly		BZWS		12/20/27		478,000		(3,697	)		7,820			(11,517	)
Societe Generale SA		(1.00	)%		Quarterly		BZWS		12/20/23		700,000 EUR		(5,337	)		2,563			(7,900	)
Softbank Group Corp.		(1.00	)%		Quarterly		BZWS		6/20/27		3,561,000 JPY		1,850			3,324			(1,474	)
Softbank Group Corp.		(1.00	)%		Quarterly		BZWS		6/20/27		6,111,000 JPY		3,175			5,410			(2,235	)
Softbank Group Corp.		(1.00	)%		Quarterly		BZWS		6/20/27		30,569,000 JPY		15,883			27,209			(11,326	)
Stellantis NV		(5.00	)%		Quarterly		BZWS		12/20/27		73,000 EUR		(12,466	)		(7,313	)		(5,153	)
Stellantis NV		(5.00	)%		Quarterly		CITI		12/20/27		292,000 EUR		(49,863	)		(29,188	)		(20,675	)
Stellantis NV		(5.00	)%		Quarterly		CITI		12/20/27		72,000 EUR		(12,295	)		(7,990	)		(4,305	)
Stena AB		(5.00	)%		Quarterly		BZWS		6/20/24		71,000 EUR		(3,274	)		(1,400	)		(1,874	)
Stena AB		(5.00	)%		Quarterly		GSCO		6/20/24		15,000 EUR		(692	)		104			(796	)
Stena AB		(5.00	)%		Quarterly		GSCO		6/20/24		22,000 EUR		(1,015	)		153			(1,168	)
Stena AB		(5.00	)%		Quarterly		GSCO		12/20/24		273,000 EUR		(15,009	)		(10,117	)		(4,892	)
Stena AB		(5.00	)%		Quarterly		GSCO		6/20/27		14,000 EUR		(513	)		(26	)		(487	)
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		29,000 EUR		(1,062	)		263			(1,325	)
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		29,000 EUR		(1,062	)		316			(1,378	)
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		28,000 EUR		(1,025	)		590			(1,615	)
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		142,000 EUR		(5,200	)		796			(5,996	)
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		157,000 EUR		(5,749	)		1,141			(6,890	)
Stena AB		(5.00	)%		Quarterly		JPHQ		6/20/27		71,000 EUR		(2,600	)		4,213			(6,813	)
TDC A/S		(1.00	)%		Quarterly		BNPP		6/20/27		212,000 EUR		(1,199	)		10,402			(11,601	)
U.S. Steel Corp.		(5.00	)%		Quarterly		BZWS		12/20/27		132,000		(7,591	)		(3,716	)		(3,875	)
U.S. Steel Corp.		(5.00	)%		Quarterly		BZWS		12/20/27		53,000		(3,048	)		(291	)		(2,757	)
U.S. Steel Corp.		(5.00	)%		Quarterly		BZWS		12/20/27		26,000		(1,495	)		38			(1,533	)
U.S. Steel Corp.		(5.00	)%		Quarterly		BZWS		12/20/27		26,000		(1,495	)		1,061			(2,556	)
U.S. Steel Corp.		(5.00	)%		Quarterly		BZWS		12/20/27		66,000		(3,795	)		3,100			(6,895	)
U.S. Steel Corp.		(5.00	)%		Quarterly		GSCO		12/20/27		66,000		(3,795	)		1,281			(5,076	)
U.S. Steel Corp.		(5.00	)%		Quarterly		MSCO		12/20/27		39,000		(2,243	)		558			(2,801	)
U.S. Steel Corp.		(5.00	)%		Quarterly		MSCO		12/20/27		66,000		(3,795	)		828			(4,623	)
U.S. Steel Corp.		(5.00	)%		Quarterly		MSCO		12/20/27		66,000		(3,795	)		934			(4,729	)
U.S. Steel Corp.		(5.00	)%		Quarterly		MSCO		12/20/27		66,000		(3,795	)		3,089			(6,884	)
U.S. Steel Corp.		(5.00	)%		Quarterly		MSCO		12/20/27		66,000		(3,795	)		3,336			(7,131	)
U.S. Steel Corp.		(5.00	)%		Quarterly		MSCO		12/20/27		131,000		(7,533	)		3,950			(11,483	)
Unibail-Rodamco-Westfield SE		(1.00	)%		Quarterly		BNPP		12/20/27		152,000 EUR		5,635			5,532			103
Unibail-Rodamco-Westfield SE		(1.00	)%		Quarterly		GSCO		12/20/27		284,000 EUR		10,528			15,028			(4,500	)
UniCredit SpA		(1.00	)%		Quarterly		JPHQ		12/20/27		112,000 EUR		5,772			7,517			(1,745	)
UniCredit SpA		(1.00	)%		Quarterly		JPHQ		12/20/27		157,000 EUR		8,091			10,117			(2,026	)
UniCredit SpA		(1.00	)%		Quarterly		JPHQ		12/20/27		329,000 EUR		16,955			33,718			(16,763	)
Contracts to Sell Protectionc,d
Single Name
American Axle & Manufacturing Inc.		5.00	%		Quarterly		CITI		6/20/25		66,000		3,126			2,708			418 BB-

62

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 Sell Protectionc,d (continued)
Single Name (continued)
Calpine Corp.		5.00	%		Quarterly		JPHQ		12/20/27		12,000	$	536		$	(110	)	$	646			BB-
Calpine Corp.		5.00	%		Quarterly		JPHQ		12/20/27		240,000		10,721			866			9,855			BB-
Kohl's Corp.		1.00	%		Quarterly		BOFA		6/20/26		141,000		(12,000	)		(8,418	)		(3,582	)		BB+
Nordstrom Inc.		1.00	%		Quarterly		GSCO		12/20/27		132,000		(19,191	)		(23,308	)		4,117			BB+
Nordstrom Inc.		1.00	%		Quarterly		GSCO		12/20/27		66,000		(9,595	)		(11,992	)		2,397			BB+
Total OTC Swap Contracts												$	3,176,478		$	3,922,807		$	(746,329)
Total Credit Default Swap Contracts												$	3,143,818		$	3,910,313		$	(766,495	)

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

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

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

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

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

Cross-Currency Swap Contracts

Description	Payment Frequency		Counterparty		Maturity Date		Notional Amounta			Value/Unrealized Appreciation (Depreciation)
OTC Swap Contracts
Receive Floating rate Overnight SOFR		Semi-Annually		GSCO		12/06/23		4,134,480		$	4,671
Pay Floating rate Overnight SIBCSORA - 0.18%								5,600,000	SGD
Receive Floating rate MUTSCALM + 0.74%		Quarterly		JPHQ		6/21/28		130,000,000	JPY		(632)
Pay Floating rate Overnight SOFR								984,848
Receive Floating rate 3-Month-KDR - 0.25%		Semi-Annually		BNPP		7/17/28		1,113,867,000	KRW		5,223
Pay Floating rate Overnight SOFR								900,000
Receive Fixed 2.85%		Quarterly		BNPP		7/19/26		886,060,000	KRW		(5,958)
Pay Floating rate Overnight SOFR								720,000
Receive Fixed 2.85%		Quarterly		BNPP		7/20/26		886,900,000	KRW		(5,955)
Pay Floating rate Overnight SOFR								720,000
Receive Fixed 2.64%		Quarterly		BNPP		7/17/28		820,000,000	KRW		(16,578)
Pay Floating rate Overnight SOFR								670,647
Total Cross-Currency Swap Contracts										$	(19,229)

^aIn U.S. dollars unless otherwise indicated.

63

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

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

Interest Rate Swap Contracts

Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts
Receive Fixed 5.88%
Pay Floating MIBOR		Annually		3/13/23		340,000,000	INR	$	(2,138)
Receive Floating MIBOR
Pay Fixed rate 5.88%		Annually		3/13/23		340,000,000	INR		(2,258)
Receive Fixed 6.03%
Pay Floating MIBOR		Annually		3/14/23		340,000,000	INR		1,996
Receive Floating MIBOR
Pay Fixed rate 6.03%		Annually		3/14/23		204,000,000	INR		(1,387)
Receive Floating MIBOR
Pay Fixed rate 6.64%		Annually		3/14/23		136,000,000	INR		(1,599)
Receive Fixed 1.81%
Pay Floating rate China 7-Day Repo		Quarterly		3/15/23		60,000,000	CNY		(12,799)
Receive Fixed 3.51%
Pay Floating 3-Month-KDR		Quarterly		3/21/23		10,200,000,000	KRW		(2,507)
Receive Federal Funds Rate
Pay Fixed rate 4.61%		Annually		3/22/23		37,200,000			(1,002)
Receive Fixed 3.54%
Pay Floating AONIA		Annually		4/05/23		95,000,000	AUD		533
Receive Floating AONIA
Pay Fixed rate 3.57%		Annually		4/05/23		230,400,000	AUD		(4,849)
Receive Fixed 2.86%
Pay Floating rate Euro STR		Annually		5/10/23		22,418,000	EUR		(1,828)
Receive Fixed 4.92%
Pay Floating MIBOR		Annually		5/10/23		384,000,000	INR		4,705
Receive Fixed 6.10%
Pay Floating MIBOR		Annually		5/10/23		372,000,000	INR		3,688
Receive Floating MIBOR
Pay Fixed rate 6.60%		Annually		5/10/23		581,800,000	INR		547
Receive Fixed 1.82%
Pay Floating rate China 7-Day Repo		Quarterly		6/15/23		60,000,000	CNY		(24,741)
Receive Fixed 1.91%
Pay Floating rate China 7-Day Repo		Quarterly		6/15/23		46,000,000	CNY		(9,285)
Receive Fixed 1.91%
Pay Floating rate China 7-Day Repo		Quarterly		6/15/23		29,000,000	CNY		(6,093)
Receive Fixed 1.96%
Pay Floating CNRR007 Index		Quarterly		6/15/23		54,000,000	CNY		(16,906)
Receive Fixed 2.06%
Pay Floating rate China 7-Day Repo		Quarterly		6/15/23		46,000,000	CNY		(9,023)
Receive Fixed 2.06%
Pay Floating rate China 7-Day Repo		Quarterly		6/15/23		29,200,000	CNY		(6,254)
Receive Fixed 2.11%
Pay Floating rate China 7-Day Repo		Quarterly		6/15/23		50,000,000	CNY		(10,190)
Receive Fixed 2.19%
Pay Floating CNRR007 Index		Quarterly		6/15/23		88,000,000	CNY		(13,221)
Receive Fixed 2.20%
Pay Floating rate China 7-Day Repo		Quarterly		6/15/23		31,000,000	CNY		(4,270)
Receive Floating rate China 7-Day Repo
Pay Fixed rate 2.19%		Quarterly		6/15/23		38,220,000	CNY		16,579
Receive Fixed 2.15%
Pay Floating rate China 7-Day Repo		Quarterly		6/21/23		48,000,000	CNY		(8,883)
Receive Fixed 3.11%
Pay Floating rate Euro STR		Annually		6/21/23		40,000,000	EUR		(8,191)
Receive Floating rate Euro STR
Pay Fixed rate 3.14%		Annually		6/21/23		26,688,000	EUR		4,405
Receive Floating rate Euro STR
Pay Fixed rate 3.14%		Annually		6/21/23		40,000,000	EUR		6,553

64

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts (continued)
Receive Fixed 4.06%
Pay Floating AONIA		Annually		7/05/23		95,400,000	AUD	$	(462)
Receive Fixed 4.08%
Pay Floating AONIA		Annually		7/05/23		57,000,000	AUD		377
Receive Fixed 3.71%
Pay Floating 3-Month-KDR		Quarterly		9/15/23		5,214,000,000	KRW		(3,406)
Receive Fixed 4.16%
Pay Floating 3-Month-KDR		Quarterly		10/26/23		8,210,000,000	KRW		8,925
Receive Floating 3-Month-KDR
Pay Fixed rate 3.84%		Quarterly		10/26/23		8,210,000,000	KRW		3,611
Receive Fixed 4.86%
Pay Floating rate Overnight SOFR		Annually		12/15/23		9,600,000			(31,649)
Receive Fixed 4.90%
Pay Floating rate Overnight SOFR		Annually		12/15/23		4,100,000			(12,613)
Receive Floating rate 3-Month-HIBOR
Pay Fixed rate 4.41%		Quarterly		12/15/23		32,000,000	HKD		4,123
Receive Floating rate 3-Month-HIBOR
Pay Fixed rate 4.50%		Quarterly		12/15/23		75,000,000	HKD		4,829
Receive Fixed 2.96%
Pay Floating rate 3-Month-BKBM		Quarterly		12/21/23		10,802,700	NZD		2,658
Receive Fixed 3.88%
Pay Floating 3-Month-KDR		Quarterly		12/21/23		4,000,000,000	KRW		(2,755)
Receive Fixed 3.76%
Pay Floating rate Overnight SIBCSORA		Semi-Annually		2/15/24		5,480,000	SGD		(4,641)
Receive Floating rate 1 Year-SOFR
Pay Fixed rate 1.36%		Annually		3/08/24		4,000,000			198,498
Receive Fixed 2.31%
Pay Floating rate China 7-Day Repo		Quarterly		3/15/24		14,200,000	CNY		(2,631)
Receive Fixed 2.38%
Pay Floating rate China 7-Day Repo		Quarterly		3/15/24		14,000,000	CNY		(1,258)
Receive Fixed 4.77%
Pay Floating rate Overnight SOFR		Annually		3/15/24		2,000,000			(11,263)
Receive Fixed 4.78%
Pay Floating rate Overnight SOFR		Annually		3/15/24		1,660,000			(9,285)
Receive Fixed 4.78%
Pay Floating rate Overnight SOFR		Annually		3/15/24		6,200,000			(35,171)
Receive Fixed 6.66%
Pay Floating MIBOR		Annually		3/15/24		270,000,000	INR		(11,338)
Receive Fixed 6.67%
Pay Floating MIBOR		Annually		3/15/24		450,000,000	INR		(18,745)
Receive Fixed 6.78%
Pay Floating MIBOR		Annually		3/15/24		267,000,000	INR		(7,676)
Receive Fixed 6.85%
Pay Floating MIBOR		Annually		3/15/24		174,800,000	INR		(3,652)
Receive Fixed 6.93%
Pay Floating MIBOR		Annually		3/15/24		440,000,000	INR		(5,192)
Receive Fixed 6.93%
Pay Floating MIBOR		Annually		3/15/24		180,000,000	INR		(2,093)
Receive Fixed 6.96%
Pay Floating MIBOR		Annually		3/15/24		175,000,000	INR		(1,436)
Receive Fixed 7.08%
Pay Floating MIBOR		Annually		3/15/24		350,000,000	INR		1,527
Receive Fixed 7.36%
Pay Floating MIBOR		Annually		3/15/24		624,000,000	INR		21,567
Receive Floating 3-Month-KDR
Pay Fixed rate 3.61%		Quarterly		3/15/24		5,600,000,000	KRW		17,013
Receive Floating 3-Month-KDR
Pay Fixed rate 3.62%		Quarterly		3/15/24		5,800,000,000	KRW		17,062
Receive Floating 3-Month-KDR
Pay Fixed rate 3.76%		Quarterly		3/15/24		6,600,000,000	KRW		12,721

65

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts (continued)
Receive Floating 3-Month-KDR
Pay Fixed rate 3.78%		Quarterly		3/15/24		6,600,000,000	KRW	$	11,744
Receive Floating MIBOR
Pay Fixed rate 6.58%		Annually		3/15/24		364,000,000	INR		18,594
Receive Fixed 5.50%
Pay Floating MIBOR		Semi-Annually		4/11/24		228,480,000	INR		(10,186)
Receive Floating MIBOR
Pay Fixed rate 6.51%		Semi-Annually		4/11/24		391,680,000	INR		16,604
Receive Fixed 5.09%
Pay Floating rate Overnight SOFR		Annually		6/21/24		2,400,000			(5,691)
Receive Fixed 5.15%
Pay Floating rate Overnight SOFR		Annually		6/21/24		8,000,000			(14,146)
Receive Fixed 6.84%
Pay Floating MIBOR		Annually		6/21/24		360,000,000	INR		(5,937)
Receive Floating 3-Month-KDR
Pay Fixed rate 3.74%		Quarterly		6/21/24		3,066,000,000	KRW		8,108
Receive Floating 3-Month-KDR
Pay Fixed rate 3.83%		Quarterly		6/21/24		5,400,000,000	KRW		10,439
Receive Floating 3-Month-KDR
Pay Fixed rate 3.84%		Quarterly		6/21/24		5,400,000,000	KRW		10,122
Receive Floating 3-Month-KDR
Pay Fixed rate 3.51%		Quarterly		8/25/24		5,560,000,000	KRW		21,281
Receive Fixed 6.22%
Pay Floating MIBOR		Annually		9/20/24		200,000,000	INR		(15,241)
Receive Fixed 6.30%
Pay Floating MIBOR		Annually		9/20/24		210,000,000	INR		(14,090)
Receive Floating 3-Month-KDR
Pay Fixed rate 3.82%		Quarterly		9/20/24		5,720,000,000	KRW		7,656
Receive Fixed 9.47%
Pay Floating Banxico Mexico 1 Month Rate		Monthly		10/22/24		82,400,000	MXN		(113,545)
Receive Fixed 7.74%
Pay Floating rate 3-Month-JIBAR		Quarterly		10/25/24		49,768,689	ZAR		5,195
Receive Fixed 2.58%
Pay Floating rate China 7-Day Repo		Quarterly		12/20/24		14,000,000	CNY		(2,210)
Receive Floating rate Overnight SOFR
Pay Fixed rate 3.64%		Annually		12/20/24		2,150,000			22,390
Receive Floating rate Overnight SOFR
Pay Fixed rate 3.75%		Annually		12/20/24		2,140,000			20,078
Receive Floating rate Overnight SOFR
Pay Fixed rate 3.78%		Annually		12/20/24		2,300,000			20,981
Receive Floating rate Overnight SOFR
Pay Fixed rate 3.97%		Annually		12/20/24		2,160,000			15,789
Receive Fixed 8.44%
Pay Floating BRLCDI		Annually		1/02/25		12,000,000	BRL		(209,832)
Receive Floating rate 1 Year-SOFR
Pay Fixed rate 4.17%		Annually		1/24/25		3,500,000			(51,593)
Receive Fixed 1.20%
Pay Floating rate 3-Month-TAIBOR		Quarterly		3/15/25		60,000,000	TWD		(8,123)
Receive Fixed 1.20%
Pay Floating rate 3-Month-TAIBOR		Quarterly		3/15/25		60,000,000	TWD		(8,065)
Receive Fixed 1.22%
Pay Floating rate 3-Month-TAIBOR		Quarterly		3/15/25		90,000,000	TWD		(11,074)
Receive Fixed 1.22%
Pay Floating rate 3-Month-TAIBOR		Quarterly		3/15/25		90,000,000	TWD		(10,987)
Receive Fixed 1.23%
Pay Floating rate 3-Month-TAIBOR		Quarterly		3/15/25		90,000,000	TWD		(10,782)
Receive Fixed 2.06%
Pay Floating rate THOR		Quarterly		3/15/25		88,000,000	THB		(3,172)
Receive Fixed 4.37%
Pay Floating rate Overnight SOFR		Annually		3/15/25		3,180,000			(31,339)

66

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts (continued)
Receive Fixed 4.65%
Pay Floating rate 3-Month-BKBM		Quarterly		3/15/25		2,200,000	NZD	$	(18,522)
Receive Fixed 5.12%
Pay Floating rate 3-Month-BKBM		Quarterly		3/15/25		1,680,000	NZD		(4,933)
Receive Fixed 5.13%
Pay Floating rate 3-Month-BKBM		Quarterly		3/15/25		5,088,000	NZD		(14,262)
Receive Fixed 5.14%
Pay Floating rate 3-Month-BKBM		Quarterly		3/15/25		1,686,000	NZD		(4,707)
Receive Fixed 5.35%
Pay Floating rate 3-Month-BKBM		Quarterly		3/15/25		4,700,000	NZD		(1,614)
Receive Floating 3-Month-KLIBOR
Pay Fixed rate 3.55%		Quarterly		3/15/25		11,400,000	MYR		3,151
Receive Floating rate 3-Month-HIBOR
Pay Fixed rate 4.39%		Quarterly		3/15/25		24,760,000	HKD		16,238
Receive Fixed 2.69%
Pay Floating rate China 7-Day Repo		Quarterly		3/20/25		14,200,000	CNY		(1,632)
Receive Fixed 2.73%
Pay Floating rate China 7-Day Repo		Quarterly		3/20/25		21,000,000	CNY		(1,383)
Receive Fixed 5.40%
Pay Floating rate 6-Month-CZEONIA		Semi-Annually		4/22/25		222,789,596	CZK		(141,472)
Receive Fixed 3.87%
Pay Floating 3-Month-KLIBOR		Quarterly		6/15/25		11,600,000	MYR		12,522
Receive Floating rate Overnight SOFR
Pay Fixed rate 3.39%		Annually		6/20/25		2,180,000			12,912
Receive Fixed 3.24%
Pay Floating 3-Month-KDR		Quarterly		6/21/25		1,300,000,000	KRW		(12,010)
Receive Fixed 3.25%
Pay Floating 3-Month-KDR		Quarterly		6/21/25		5,200,000,000	KRW		(47,289)
Receive Fixed 3.42%
Pay Floating 3-Month-KLIBOR		Quarterly		6/21/25		6,800,000	MYR		(5,426)
Receive Fixed 3.53%
Pay Floating 3-Month-KLIBOR		Quarterly		6/21/25		13,900,000	MYR		(4,760)
Receive Fixed 3.59%
Pay Floating 3-Month-KLIBOR		Quarterly		6/21/25		4,600,000	MYR		(422)
Receive Fixed 6.30%
Pay Floating rate 3-Month-JIBAR		Quarterly		7/31/25		53,795,745	ZAR		(87,368)
Receive Fixed 7.57%
Pay Floating rate 3-Month-JIBAR		Quarterly		11/04/25		39,000,000	ZAR		(15,719)
Receive Floating rate Overnight SOFR
Pay Fixed rate 2.95%		Annually		12/18/25		2,220,000			12,852
Receive Fixed 3.31%
Pay Floating 3-Month-KDR		Quarterly		12/20/25		15,136,000,000	KRW		(84,791)
Receive Fixed 3.57%
Pay Floating rate Overnight SOFR		Annually		12/20/25		762,000			(8,672)
Receive Floating 3-Month-KDR
Pay Fixed rate 4.14%		Quarterly		12/20/25		9,636,000,000	KRW		(60,260)
Receive Fixed 3.51%
Pay Floating 3-Month-KDR		Quarterly		3/15/26		2,280,000,000	KRW		(12,165)
Receive Fixed 3.53%
Pay Floating 3-Month-KDR		Quarterly		3/15/26		2,200,000,000	KRW		(10,793)
Receive Floating 3-Month-KDR
Pay Fixed rate 3.55%		Quarterly		3/15/26		920,000,000	KRW		4,217
Receive Floating 3-Month-KDR
Pay Fixed rate 3.58%		Quarterly		3/15/26		920,000,000	KRW		3,624
Receive Floating 3-Month-KDR
Pay Fixed rate 3.64%		Quarterly		3/15/26		910,000,000	KRW		2,313
Receive Floating 3-Month-KDR
Pay Fixed rate 3.64%		Quarterly		3/15/26		910,000,000	KRW		2,353
Receive Fixed 2.69%
Pay Floating rate Overnight SOFR		Annually		3/19/26		6,624,000			(47,980)

67

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts (continued)
Receive Fixed 3.74%
Pay Floating rate Overnight SOFR		Annually		3/20/26		6,534,000		$	(24,800)
Receive Fixed 4.06%
Pay Floating 3-Month-KDR		Quarterly		6/11/26		1,320,000,000	KRW		9,182
Receive Floating 3-Month-KDR
Pay Fixed rate 3.25%		Quarterly		6/11/26		3,520,000,000	KRW		15,367
Receive Floating rate 3-Month USD LIBOR
Pay Fixed rate 0.50%		Quarterly		6/16/26		1,150,000			116,387
Receive Floating rate 3-Month USD LIBOR
Pay Fixed rate 0.50%		Quarterly		6/16/26		1,400,000			139,968
Receive Floating 3-Month-KDR
Pay Fixed rate 3.24%		Quarterly		7/19/26		886,060,000	KRW		9,129
Receive Floating 3-Month-KDR
Pay Fixed rate 3.24%		Quarterly		7/20/26		886,900,000	KRW		9,120
Receive Fixed 4.02%
Pay Floating 3-Month-KDR		Quarterly		9/27/26		1,200,000,000	KRW		8,504
Receive Fixed 1.25%
Pay Floating 3-Month-USD LIBOR		Semi-Annually		12/15/26		1,300,000			(140,920)
Receive Fixed 11.07%
Pay Floating BRLCDI		Annually		1/04/27		9,430,255	BRL		(83,602)
Receive Fixed 11.22%
Pay Floating BRLCDI		Annually		1/04/27		10,436,876	BRL		(84,117)
Receive Fixed 11.22%
Pay Floating BRLCDI		Annually		1/04/27		8,000,000	BRL		(64,769)
Receive Fixed 11.26%
Pay Floating BRLCDI		Annually		1/04/27		9,695,993	BRL		(76,522)
Receive Fixed 11.48%
Pay Floating BRLCDI		Annually		1/04/27		10,436,876	BRL		(70,601)
Receive Fixed 12.34%
Pay Floating BRLCDI		Annually		1/04/27		5,028,240	BRL		(14,941)
Receive Fixed 12.72%
Pay Floating BRLCDI		Annually		1/04/27		10,721,816	BRL		(7,244)
Receive Fixed 12.79%
Pay Floating BRLCDI		Annually		1/04/27		10,721,816	BRL		(4,057)
Receive Fixed 13.29%
Pay Floating BRLCDI		Annually		1/04/27		2,980,054	BRL		9,429
Receive Fixed 13.41%
Pay Floating BRLCDI		Annually		1/04/27		5,875,629	BRL		23,786
Receive Fixed 13.47%
Pay Floating BRLCDI		Annually		1/04/27		4,395,970	BRL		19,911
Receive Fixed 13.51%
Pay Floating BRLCDI		Annually		1/04/27		8,748,347	BRL		41,891
Receive Floating rate 1 Year-SOFR
Pay Fixed rate 1.42%		Annually		3/08/27		4,000,000			441,558
Receive Fixed 8.78%
Pay Floating Banxico Mexico 1 Month Rate		Monthly		10/19/27		72,800,000	MXN		85,725
Receive Fixed 3.89%
Pay Floating 3-Month-KDR		Quarterly		12/17/27		9,832,000,000	KRW		58,621
Receive Floating 3-Month-KDR
Pay Fixed rate 3.04%		Quarterly		12/17/27		15,452,400,000	KRW		83,699
Receive Floating 3-Month-KDR
Pay Fixed rate 3.28%		Quarterly		12/17/27		1,472,000,000	KRW		3,228
Receive Floating 3-Month-KDR
Pay Fixed rate 3.32%		Quarterly		12/17/27		1,500,000,000	KRW		2,410
Receive Fixed 4.23%
Pay Floating 3-Month-KDR		Quarterly		1/19/28		1,492,100,000	KRW		29,893
Receive Fixed 6.98%
Pay Floating rate 6-Month-WIBOR		Semi-Annually		1/19/28		7,000,000	PLN		(62,089)
Receive Fixed 7.24%
Pay Floating rate CLP TNA		Semi-Annually		1/19/28		1,000,000,000	CLP		(49,869)

68

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts (continued)
Receive Floating rate 1 Year-SOFR
Pay Fixed rate 3.33%		Annually		1/24/28		2,500,000		$	(76,160)
Receive Fixed 0.46%
Pay Floating rate Overnight MUTSCALM		Annually		3/15/28		318,000,000	JPY		242
Receive Fixed 3.32%
Pay Floating rate Overnight SOFR		Annually		3/15/28		1,340,000			(38,820)
Receive Fixed 3.34%
Pay Floating rate Overnight SOFR		Annually		3/15/28		2,840,000			(79,741)
Receive Fixed 3.34%
Pay Floating rate Overnight SOFR		Annually		3/15/28		2,218,000			(62,772)
Receive Fixed 3.41%
Pay Floating rate Overnight SOFR		Annually		3/15/28		1,426,000			(35,585)
Receive Fixed 3.43%
Pay Floating rate Overnight SOFR		Annually		3/15/28		1,340,000			(32,423)
Receive Fixed 3.54%
Pay Floating rate Overnight SOFR		Annually		3/15/28		1,110,000			(21,113)
Receive Fixed 3.55%
Pay Floating rate Overnight SOFR		Annually		3/15/28		1,110,000			(20,766)
Receive Fixed 3.66%
Pay Floating rate Overnight SOFR		Annually		3/15/28		1,112,000			(15,594)
Receive Fixed 4.36%
Pay Floating rate 3-Month-BKBM		Quarterly		3/15/28		2,300,000	NZD		(29,876)
Receive Fixed 4.50%
Pay Floating rate 3-Month-BKBM		Quarterly		3/15/28		1,200,000	NZD		(11,063)
Receive Fixed 6.21%
Pay Floating MIBOR		Semi-Annually		3/15/28		99,000,000	INR		35,320
Receive Fixed 6.43%
Pay Floating MIBOR		Semi-Annually		3/15/28		80,000,000	INR		(10,981)
Receive Floating 3-Month-KDR
Pay Fixed rate 3.27%		Quarterly		3/15/28		570,000,000	KRW		7,249
Receive Floating 3-Month-KDR
Pay Fixed rate 3.33%		Quarterly		3/15/28		1,380,000,000	KRW		14,915
Receive Floating MIBOR
Pay Fixed rate 6.25%		Semi-Annually		3/15/28		60,000,000	INR		13,778
Receive Floating MIBOR
Pay Fixed rate 6.25%		Semi-Annually		3/15/28		20,000,000	INR		4,666
Receive Floating MIBOR
Pay Fixed rate 6.25%		Semi-Annually		3/15/28		100,000,000	INR		23,068
Receive Floating MIBOR
Pay Fixed rate 6.44%		Semi-Annually		3/15/28		80,000,000	INR		10,519
Receive Floating rate 3-Month-HIBOR
Pay Fixed rate 3.50%		Quarterly		3/15/28		10,400,000	HKD		43,093
Receive Floating rate 3-Month-TAIBOR
Pay Fixed rate 1.16%		Quarterly		3/15/28		73,200,000	TWD		29,755
Receive Floating rate 3-Month-TAIBOR
Pay Fixed rate 1.17%		Quarterly		3/15/28		36,600,000	TWD		14,144
Receive Floating rate China 7-Day Repo
Pay Fixed rate 2.83%		Quarterly		3/15/28		4,600,000	CNY		3,950
Receive Floating rate China 7-Day Repo
Pay Fixed rate 2.83%		Quarterly		3/15/28		35,240,000	CNY		29,333
Receive Floating rate China 7-Day Repo
Pay Fixed rate 2.93%		Quarterly		3/15/28		1,800,000	CNY		308
Receive Floating rate China 7-Day Repo
Pay Fixed rate 2.99%		Quarterly		3/15/28		9,000,000	CNY		(1,729)
Receive Fixed 3.28%
Pay Floating 3-Month-KDR		Quarterly		4/19/28		3,103,190,226	KRW		(38,563)
Receive Fixed 3.49%
Pay Floating 3-Month-KDR		Quarterly		4/19/28		2,346,809,774	KRW		(11,994)
Receive Fixed 4.95%
Pay Floating rate 6-Month-WIBOR		Semi-Annually		4/19/28		14,800,000	PLN		136,279

69

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts (continued)
Receive Fixed 5.00%
Pay Floating rate CLP TNA		Semi-Annually		4/19/28		2,785,289,141	CLP	$	146,445
Receive Floating 3-Month-KLIBOR
Pay Fixed rate 3.98%		Quarterly		6/15/28		4,700,000	MYR		(10,479)
Receive Fixed 3.42%
Pay Floating rate Overnight SOFR		Annually		6/21/28		270,000			(5,293)
Receive Fixed 3.43%
Pay Floating rate Overnight SOFR		Annually		6/21/28		1,360,000			(26,028)
Receive Fixed 3.46%
Pay Floating rate Overnight SIBCSORA		Semi-Annually		6/21/28		600,000	SGD		1,153
Receive Fixed 3.66%
Pay Floating rate Overnight SOFR		Annually		6/21/28		1,128,000			(9,951)
Receive Fixed 4.57%
Pay Floating rate 3-Month-BKBM		Quarterly		6/21/28		1,100,000	NZD		(6,547)
Receive Floating 3-Month-KLIBOR
Pay Fixed rate 3.54%		Quarterly		6/21/28		2,860,000	MYR		5,974
Receive Floating 3-Month-KLIBOR
Pay Fixed rate 3.60%		Quarterly		6/21/28		5,800,000	MYR		8,760
Receive Floating 3-Month-KLIBOR
Pay Fixed rate 3.67%		Quarterly		6/21/28		1,920,000	MYR		1,583
Receive Floating MIBOR
Pay Fixed rate 6.41%		Semi-Annually		6/21/28		81,000,000	INR		11,729
Receive Floating MIBOR
Pay Fixed rate 6.41%		Semi-Annually		6/21/28		81,000,000	INR		11,812
Receive Floating MIBOR
Pay Fixed rate 6.47%		Semi-Annually		6/21/28		82,000,000	INR		9,390
Receive Floating 3-Month-KDR
Pay Fixed rate 2.98%		Quarterly		7/17/28		820,000,000	KRW		17,890
Receive Floating 3-Month-KDR
Pay Fixed rate 3.81%		Quarterly		9/28/28		1,220,000,000	KRW		(6,007)
Receive Fixed 3.80%
Pay Floating 3-Month-KDR		Quarterly		12/16/28		3,046,000,000	KRW		14,205
Receive Fixed 3.85%
Pay Floating 3-Month-KDR		Quarterly		12/16/28		2,537,600,000	KRW		13,591
Receive Floating 3-Month-KDR
Pay Fixed rate 2.91%		Quarterly		12/16/28		5,583,600,000	KRW		38,043
Receive Floating Overnight MUTSCALM
Pay Fixed rate 0.71%		Annually		12/20/28		8,000,000	JPY		(327)
Receive Floating Overnight MUTSCALM
Pay Fixed rate 0.75%		Annually		6/20/30		134,000,000	JPY		(3,718)
Receive Fixed 1.17%
Pay Floating 3-Month-KDR		Quarterly		12/16/30		340,500,000	KRW		7,654
Receive Fixed 1.53%
Pay Floating 3-Month-KDR		Quarterly		6/16/31		207,200,000	KRW		4,881
Receive Floating rate 1 Year-SOFR
Pay Fixed rate 1.52%		Annually		3/08/32		4,000,000			687,232
Receive Fixed 0.77%
Pay Floating rate 6 Month-EURIBOR		Annually		3/17/32		2,308,338	EUR		(203,865)
Receive Fixed 0.98%
Pay Floating rate 6 Month-EURIBOR		Annually		3/17/32		1,042,890	EUR		(91,608)
Receive Floating rate 6 Month-EURIBOR
Pay Fixed rate 2.78%		Semi-Annually		3/17/32		1,454,000	EUR		15,800
Receive Fixed 2.60%
Pay Floating rate 6 Month-EURIBOR		Semi-Annually		9/15/32		2,236,000	EUR		(42,803)
Receive Fixed 2.71%
Pay Floating rate 6 Month-EURIBOR		Semi-Annually		9/15/32		1,190,000	EUR		(17,457)
Receive Fixed 2.88%
Pay Floating rate 6 Month-EURIBOR		Semi-Annually		9/15/32		1,276,000	EUR		(9,511)
Receive Fixed 8.47%
Pay Floating Banxico Mexico 1 Month Rate		Monthly		10/12/32		37,000,000	MXN		(65,728)

70

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts (continued)
Receive Fixed 8.72%
Pay Floating Banxico Mexico 1 Month Rate		Monthly		10/12/32		21,700,000	MXN	$	(19,039)
Receive Fixed 9.07%
Pay Floating JIBAR		Quarterly		10/25/32		19,017,434	ZAR		(8,361)
Receive Floating rate Overnight SIBCSORA
Pay Fixed rate 2.72%		Semi-Annually		12/15/32		700,000	SGD		7,744
Receive Floating rate Overnight SIBCSORA
Pay Fixed rate 2.84%		Semi-Annually		12/15/32		700,000	SGD		5,313
Receive Floating rate 6 Month-EURIBOR
Pay Fixed rate 2.70%		Semi-Annually		12/20/32		700,000	EUR		10,732
Receive Floating rate 1 Year-SOFR
Pay Fixed rate 3.17%		Annually		1/24/33		2,900,000			(118,911)
Receive Fixed 2.70%
Pay Floating rate 6 Month-EURIBOR		Semi-Annually		3/15/33		1,344,000	EUR		(20,915)
Receive Fixed 2.75%
Pay Floating rate 6 Month-EURIBOR		Semi-Annually		3/15/33		270,000	EUR		(3,663)
Receive Floating MIBOR
Pay Fixed rate 6.31%		Semi-Annually		3/15/33		115,000,000	INR		52,128
Receive Floating MIBOR
Pay Fixed rate 6.54%		Semi-Annually		3/15/33		46,000,000	INR		11,073
Receive Floating Overnight MUTSCALM
Pay Fixed rate 1.23%		Annually		3/15/33		66,000,000	JPY		587
Receive Floating rate Overnight SOFR
Pay Fixed rate 3.16%		Annually		3/15/33		1,192,000			47,128
Receive Floating rate Overnight SOFR
Pay Fixed rate 3.30%		Annually		3/15/33		596,000			16,805
Receive Floating rate Overnight SOFR
Pay Fixed rate 3.32%		Annually		3/15/33		596,000			16,068
Receive Floating rate Overnight SOFR
Pay Fixed rate 3.39%		Annually		3/15/33		598,000			12,275
Receive Fixed 8.05%
Pay Floating Banxico Mexico 1 Month Rate		Monthly		4/06/33		26,200,000	MXN		(81,734)
Receive Fixed 8.07%
Pay Floating Banxico Mexico 1 Month Rate		Monthly		4/06/33		26,200,000	MXN		(79,409)
Receive Fixed 4.00%
Pay Floating rate 6-Month-CZEONIA		Semi-Annually		4/19/33		52,000,000	CZK		146,049
Receive Fixed 0.98%
Pay Floating rate Overnight MUTSCALM		Annually		4/20/33		34,000,000	JPY		2,818
Receive Floating Overnight MUTSCALM
Pay Fixed rate 0.94%		Annually		4/20/33		52,200,000	JPY		(2,805)
Receive Fixed 3.29%
Pay Floating rate Overnight SOFR		Annually		6/21/33		482,000			(12,005)
Receive Fixed 3.32%
Pay Floating rate Overnight SOFR		Annually		6/21/33		1,630,000			3,271
Receive Fixed 4.42%
Pay Floating 6-Month-BBSW		Semi-Annually		6/21/33		360,000	AUD		(1,841)
Receive Fixed 4.42%
Pay Floating 6-Month-BBSW		Semi-Annually		6/21/33		350,000	AUD		(1,723)
Receive Fixed 4.44%
Pay Floating 6-Month-BBSW		Semi-Annually		6/21/33		358,000	AUD		(1,354)
Receive Fixed 4.53%
Pay Floating 6-Month-BBSW		Semi-Annually		6/21/33		360,000	AUD		381
Receive Floating Overnight MUTSCALM
Pay Fixed rate 0.89%		Annually		6/21/33		66,800,000	JPY		(134)
Receive Floating Overnight MUTSCALM
Pay Fixed rate 0.92%		Annually		6/21/33		68,600,000	JPY		(1,596)
Receive Floating Overnight MUTSCALM
Pay Fixed rate 0.92%		Annually		6/21/33		42,000,000	JPY		(1,067)
Receive Floating rate Overnight SOFR
Pay Fixed rate 3.41%		Annually		6/21/33		608,000			9,133

71

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

Description	Payment Frequency		Maturity Date		Notional Amount*			Value/Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts (continued)
Receive Floating rate Overnight SOFR
Pay Fixed rate 3.31%		Annually		12/20/33		172,000		$	2,274
Receive Floating rate Overnight SOFR
Pay Fixed rate 3.33%		Annually		3/20/34		734,000			4,727
Receive Floating rate Overnight SOFR
Pay Fixed rate 3.33%		Annually		3/20/34		740,000			4,795
Receive Floating Overnight MUTSCALM
Pay Fixed rate 1.09%		Annually		3/15/38		111,500,000	JPY		(4,123)
Receive Floating 3-Month-KDR
Pay Fixed rate 1.15%		Quarterly		12/16/40		177,000,000	KRW		(5,258)
Receive Floating 3-Month-KDR
Pay Fixed rate 1.57%		Quarterly		6/16/41		108,000,000	KRW		(3,505)
Receive Fixed 2.61%
Pay Floating rate 6 Month-EURIBOR		Semi-Annually		3/17/42		888,000	EUR		(17,484)
Receive Floating rate 6 Month-EURIBOR
Pay Fixed rate 0.74%		Semi-Annually		3/17/42		1,098,871	EUR		162,617
Receive Floating rate 6 Month-EURIBOR
Pay Fixed rate 0.94%		Semi-Annually		3/17/42		558,230	EUR		75,008
Receive Fixed 2.88%
Pay Floating rate 6 Month-EURIBOR		Annually		9/15/42		1,570,000	EUR		62,000
Receive Fixed 3.21%
Pay Floating rate Overnight SOFR		Annually		9/15/42		1,628,000			(10,486)
Receive Floating rate 6 Month-EURIBOR
Pay Fixed rate 2.21%		Semi-Annually		9/15/42		764,000	EUR		33,207
Receive Floating rate 6 Month-EURIBOR
Pay Fixed rate 2.23%		Semi-Annually		9/15/42		274,000	EUR		11,547
Receive Floating rate 6 Month-EURIBOR
Pay Fixed rate 2.43%		Semi-Annually		9/15/42		720,000	EUR		20,465
Receive Floating rate Overnight SOFR
Pay Fixed rate 3.08%		Annually		9/15/42		1,628,000			23,004
Receive Fixed 1.30%
Pay Floating rate Overnight MUTSCALM		Annually		3/15/43		36,000,000	JPY		5,957
Receive Floating rate 6 Month-EURIBOR
Pay Fixed rate 2.37%		Semi-Annually		3/16/43		810,000	EUR		23,134
Receive Floating rate 6 Month-EURIBOR
Pay Fixed rate 2.42%		Semi-Annually		3/16/43		164,000	EUR		4,085
Receive Floating rate Overnight SOFR
Pay Fixed rate 3.28%		Annually		6/15/43		1,048,000			(228)
Receive Floating rate 6 Month-EURIBOR
Pay Fixed rate 0.44%		Semi-Annually		10/27/51		430,000	EUR		14,227
Receive Fixed 1.51%
Pay Floating rate 6 Month-EURIBOR		Semi-Annually		9/16/52		558,000	EUR		(24,859)
Receive Floating rate 6 Month-EURIBOR
Pay Fixed rate 1.15%		Semi-Annually		9/16/52		200,000	EUR		15,095
Receive Floating rate 6 Month-EURIBOR
Pay Fixed rate 1.25%		Semi-Annually		9/16/52		204,000	EUR		13,685
Receive Floating rate 6 Month-EURIBOR
Pay Fixed rate 1.27%		Semi-Annually		9/16/52		542,000	EUR		35,661
Receive Floating rate Overnight SOFR
Pay Fixed rate 2.85%		Annually		3/15/53		660,000			48,684
Receive Floating rate Overnight SOFR
Pay Fixed rate 2.89%		Annually		3/15/53		320,000			21,520
Receive Floating rate Overnight SOFR
Pay Fixed rate 2.96%		Annually		3/15/53		334,000			17,800
Receive Fixed 1.51%
Pay Floating rate Overnight MUTSCALM		Annually		6/16/53		56,000,000	JPY		7,377
Receive Fixed 1.52%
Pay Floating rate Overnight MUTSCALM		Annually		6/16/53		36,400,000	JPY		4,966
Receive Fixed 1.57%
Pay Floating rate Overnight MUTSCALM		Annually		6/16/53		59,800,000	JPY		10,752

72

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Interest Rate Swap Contracts (continued)

							Value/Unrealized
	Payment		Maturity		Notional		Appreciation
Description	Frequency		Date		Amount*		(Depreciation)
Centrally Cleared Swap Contracts (continued)
Receive Floating rate Overnight SOFR
Pay Fixed rate 2.97%		Annually		6/21/53		64,000	$	2,850
Receive Floating rate Overnight SOFR
Pay Fixed rate 2.98%		Annually		6/21/53		320,000		14,072
Receive Floating rate Overnight SOFR
Pay Fixed rate 3.01%		Annually		6/21/53		210,000		7,724
Receive Floating rate Overnight SOFR
Pay Fixed rate 2.83%		Annually		9/20/53		104,000		6,709
Receive Floating rate Overnight SOFR
Pay Fixed rate 2.91%		Annually		9/20/53		158,000		7,806
Total Interest Rate Swap Contracts							$	549,486
*In U.S. dollars unless otherwise indicated.

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

Total Return Swap Contracts

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts
Equity Contracts - Longa
1+1 AG INH ON	1-Month EURIBOR + 0.25%	Monthly	JPHQ	1/30/24		132,761	EUR	$                    (15,689)
3i Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		203,601	GBP	95,876
7C Solarparken AG	Euro STR + 0.35%	Monthly	JPHQ	11/06/23		64,761	EUR	(8,022)
A.P. Moller - Maersk	1-Week CIBOR + 0.28%	Monthly	SEBA	7/17/23		522,266	DKK	2,694
A1 Telekom Austria AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		154,535	EUR	31,686
Aalberts NV	1-Month EURIBOR + 0.25%	Monthly	JPHQ	2/28/24		52,895	EUR	(433)
AcadeMedia AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		1,079,258	SEK	6,669
Activision Blizzard	1-Day FEDEF + 0.30%	Monthly	BOFA	1/26/24		777,750		(2,027)
AddLife AB	1-Week STIBOR + 0.28%	Monthly	SEBA	8/02/23		2,617,705	SEK	(19,548)
ADvTECH Ltd.	1-Day SABOR + 0.30%	Monthly	MSCS	7/17/23		910,076	ZAR	7,196
Aegon NV	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		34,058	EUR	1,125
African Rainbow Minerals Ltd.	1-Day SABOR + 0.70%	Monthly	MSCS	8/30/23		848,238	ZAR	1,036
AIB Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		28,343	GBP	24,913
Air France-KLM	1-Day EONIA + 0.30%	Monthly	MSCS	10/02/23		158,667	EUR	60,312
Airtel Africa PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		255,935	GBP	(61,795)
Aker Solutions ASA	1-Week NIBOR + 0.28%	Monthly	SEBA	7/17/23		1,593,281	NOK	27,116
Albemarle Corp.	OBFR + 0.25%	Monthly	MSCS	2/26/24		21,135	EUR	37
Albertsons Cos. Inc.	1-Day FEDEF + 0.30%	Monthly	BOFA	1/30/24		286,272		(938)
Allfunds Group PLC	Euro STR + 0.30%	Monthly	BOFA	3/01/24		79,665	EUR	(288)
Altra	1-Day FEDEF + 0.30%	Monthly	BOFA	1/30/24		1,046,010		(3,837)
Altra	1-Day FEDEF + 0.30%	Monthly	BOFA	2/24/24		246,120		–
Amadeus Fire AG	Euro STR + 0.35%	Monthly	JPHQ	1/31/24		60,491	EUR	(2,094)
Ambea AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		2,176,192	SEK	(49,619)
AMC Entertainment Holdings	1-Day FEDEF + 0.30%	Monthly	BOFA	1/30/24		62,100		(220)
American Equity Investments	1-Day FEDEF + 0.30%	Monthly	BOFA	2/01/24		299,880		(914)
Amyris	1-Day FEDEF + 0.70%	Monthly	BOFA	2/01/24		149,847		2,914
Anadolu Efes	1-Day FEDEF + 1.25%	Monthly	MSCS	1/22/24		89,078		(2,218)
Anadolu Grubu	1-Day FEDEF + 0.30%	Monthly	MSCS	11/27/23		109,937		(14,777)
Andritz AG	Euro STR + 0.35%	Monthly	JPHQ	7/14/23		231,357	EUR	26,779
AO World PLC	1-Day SONIA + 0.35%	Monthly	MSCS	11/30/23		105,358	GBP	14,685
Aperam SA	Euro STR + 0.35%	Monthly	JPHQ	11/27/23		34,337	EUR	4,793
Arcadis	Euro STR + 0.35%	Monthly	JPHQ	9/22/23		93,828	EUR	10,498

73

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts - Longa (continued)
Arcelormittal	Euro STR + 0.25%	Monthly	JPHQ	2/28/24		71,296	EUR	$                                317
Arctic	1-Day FEDEF + 0.30%	Monthly	MSCS	11/27/23		47,855		1,058
Arise AB	1-Day SABOR + 0.70%	Monthly	SEBA	8/03/23		898,063	SEK	(18,871)
Ariston Holding NV	Euro STR + 0.35%	Monthly	JPHQ	11/29/23		76,830	EUR	(2,535)
ASBIS Kypros Ltd.	1-Day FEDEF + 0.30%	Monthly	MSCS	7/12/23		57,517		52,326
Ascencio	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		41,951	EUR	(1,059)
ASML Holding NV	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		126,862	EUR	19,537
ASR Nederland NV	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		48,487	EUR	(1,353)
Asseco Poland SA	1-Day FEDEF + 0.30%	Monthly	MSCS	7/17/23		220,820		33,250
Astral Foods Ltd.	1-Day SABOR + 0.30%	Monthly	MSCS	7/17/23		4,630,564	ZAR	(28,657)
AT&S Austria Technologie & Systemtechnik AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		243,185	EUR	(17,410)
Atlas Air Worldwide Holdings	1-Day FEDEF + 0.30%	Monthly	BOFA	2/17/24		2,056,524		(2,115)
Atlas Copco	1-Day FEDEF + 0.30%	Monthly	BOFA	1/31/24		617,472		(1,720)
Atoss Software AG	Euro STR + 0.35%	Monthly	JPHQ	8/01/23		102,403	EUR	10,826
Atresmedia Corporacion de Medios de Comunicacion SA	1-Day EONIA + 0.35%	Monthly	MSCS	7/17/23		77,376	EUR	3,627
Attendo AB	1-Week STIBOR + 0.28%	Monthly	SEBA	1/08/24		886,697	SEK	320
Austevoll Seafood ASA	1-Week NIBOR + 0.28%	Monthly	SEBA	7/12/23		1,863,450	NOK	6,127
AVI Ltd.	1-Day SABOR + 0.70%	Monthly	MSCS	10/03/23		3,253,619	ZAR	3,911
Axa SA	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		108,207	EUR	48,358
Axfood AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		392,110	SEK	(3,747)
Azimut Holding SpA	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		166,803	EUR	10,694
B2Holding ASA	1-Week NIBOR + 0.28%	Monthly	SEBA	7/17/23		1,181,078	NOK	(14,317)
Balfour Beatty	1-Day SONIA + 0.35%	Monthly	MSCS	9/18/23		193,178	GBP	31,252
Banca de Sabadell SA	1-Day EONIA + 0.35%	Monthly	MSCS	10/10/23		81,074	EUR	43,672
Banca Ifis SpA	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		185,084	EUR	35,967
Banco Bilbao Vizcaya Argentaria SA	1-Day EONIA + 0.35%	Monthly	MSCS	9/29/23		97,242	EUR	42,248
Banco BPM SpA	Euro STR + 0.35%	Monthly	JPHQ	7/26/23		107,799	EUR	37,414
Bank Handlowy w Warszawie SA	1-Day FEDEF + 0.30%	Monthly	MSCS	7/14/23		62,448		35,518
Bank of Georgia Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/31/23		133,515	GBP	112,987
Barclays PLC	1-Day SONIA + 0.44%	Monthly	MSCS	7/17/23		107,037	GBP	25,850
Barco	Euro STR + 0.35%	Monthly	JPHQ	10/09/23		156,579	EUR	33,677
Bayerische Motoren Werke AG	Euro STR + 0.35%	Monthly	JPHQ	7/03/23		36,870	EUR	1,816
BE Group AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		885,617	SEK	19,216
Bell Food Group AG	1-Day SARON + 0.35%	Monthly	JPHQ	7/17/23		149,634	CHF	19,122
Beneteau	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		117,517	EUR	78,263
Betsson AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		1,500,563	SEK	58,148
Bidvest Group Ltd.	1-Day SABOR + 0.35%	Monthly	MSCS	7/17/23		363,755	ZAR	1,253
Bilfinger SE	Euro STR + 0.35%	Monthly	JPHQ	12/06/23		134,213	EUR	40,512
Bilia AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		1,556,310	SEK	(10,727)
BioGaia AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		1,417,010	SEK	(10,233)
BioMarin Pharmaceutical Inc.	SOFR + 0.35%	Monthly	GSCO	2/23/24		119,405		(4,578)
Biotage AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		1,741,887	SEK	(40,418)
Black Knight Inc.	1-Day FEDEF + 0.40%	Monthly	MSCS	2/19/24		420,821		(30,665)
Block Inc.	1-Day FEDEF + 0.70%	Monthly	BOFA	5/15/23		165,922		(2,157)
Bloomsbury Publishing PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		62,400	GBP	2,855
BNP Paribas SA	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		80,770	EUR	48,073
Bogdanka SA	1-Day FEDEF + 0.30%	Monthly	MSCS	8/18/23		92,335		34,277
Bonheur ASA	1-Week NIBOR + 0.28%	Monthly	SEBA	8/28/23		559,388	NOK	(13,522)
BPER Banca SpA	Euro STR + 0.35%	Monthly	JPHQ	9/25/23		157,463	EUR	55,041
Bravida Holding AB	1-Week STIBOR + 0.28%	Monthly	SEBA	11/01/23		2,170,895	SEK	18,415
Brederode	Euro STR + 0.35%	Monthly	JPHQ	11/21/23		51,956	EUR	3,179
Breedon Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		180,225	GBP	15,078
Brunel International NV	1-Week STIBOR + 0.28%	Monthly	JPHQ	7/17/23		88,975	EUR	20,080
Budimex SA	1-Day FEDEF + 0.30%	Monthly	MSCS	11/20/23		41,875		4,011
Burckhardt	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		84,669	CHF	11,673
C&C Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/24/23		67,432	GBP	(11,599)
Cairn Homes PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		54,347	GBP	(6,258)
Cairo Communication SpA	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		67,427	EUR	5,781

74

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts - Longa (continued)
CapMan OYJ	Euro STR + 0.28%	Monthly	SEBA	7/17/23		55,063	EUR	$                        5,024
Card Factory PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		51,079	GBP	57,744
Cargotec OYJ	Euro STR + 0.28%	Monthly	SEBA	8/23/23		183,964	EUR	38,463
Carlsberg Group	1-Week CIBOR + 0.28%	Monthly	SEBA	9/12/23		756,183	DKK	8,230
Catena AB	1-Week STIBOR + 0.28%	Monthly	SEBA	11/17/23		732,167	SEK	2,060
Catena Media PLC	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		1,051,681	SEK	25,288
Cementir Holding NV	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		74,364	EUR	27,464
Central Asia Metals PLC	1-Day SONIA + 0.35%	Monthly	MSCS	9/25/23		54,937	GBP	12,949
CentralNic Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		113,122	GBP	9,317
Centrica PLC ORD	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		220,065	GBP	62,493
Cerillion	1-Day SONIA + 0.35%	Monthly	MSCS	11/29/23		13,373	GBP	(1,157)
Chemometec	1-Week CIBOR + 0.28%	Monthly	SEBA	11/15/23		1,572,406	DKK	(91,700)
Chemring Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	8/22/23		144,491	GBP	747
China Jushi Co. Ltd.	1-Day FEDEF + 0.30%	Monthly	MSCS	9/28/23		786,948		(22,287)
Ciech SA	1-Day FEDEF + 0.30%	Monthly	MSCS	7/17/23		55,148		34,208
Citycon OYJ	Euro STR + 0.28%	Monthly	SEBA	8/23/23		140,371	EUR	(1,015)
Clas Ohlson AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		3,041,567	SEK	(98,087)
CLIQ Digital AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		120,480	EUR	26,902
Cloetta AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		2,208,689	SEK	19,737
Coca-Cola Europacific Partners PLC	1-Day SONIA + 0.30%	Monthly	JPHQ	10/11/23		152,757	EUR	8,975
COFACE	1-Day EONIA + 0.30%	Monthly	MSCS	7/14/23		162,402	EUR	77,285
Coltene Holding AG	1-Day SARON + 0.35%	Monthly	JPHQ	7/17/23		29,031	CHF	(1,980)
Commerzbank AG	Euro STR + 0.35%	Monthly	JPHQ	12/18/23		119,637	EUR	39,441
Compagnie des Alpes	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		117,351	EUR	(7,782)
Computacenter PLC ORD	1-Day SONIA + 0.35%	Monthly	MSCS	7/13/23		117,907	GBP	(827)
Construcciones y Auxiliar de Ferrocarriles	1-Day EONIA + 0.35%	Monthly	MSCS	7/17/23		157,711	EUR	2,853
Coor Service Management Holding AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		2,910,991	SEK	(53,425)
Coupa Software	1-Day FEDEF + 0.30%	Monthly	BOFA	1/30/24		2,053,561		(6,380)
Crest Nicholson Holdings PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		89,165	GBP	2,918
CRH PLC ORD	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		105,448	GBP	44,547
CropEnergies AG	Euro STR + 0.35%	Monthly	JPHQ	10/18/23		165,263	EUR	(30,641)
CVS Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	10/30/23		32,391	GBP	(1,675)
Dampskibsselskabet Norden A/S	1-Week CIBOR + 0.28%	Monthly	SEBA	7/17/23		374,881	DKK	15,543
Danieli & C Officine Meccaniche SpA	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		189,605	EUR	42,626
Darktrace PLC	1-Day SONIA + 0.35%	Monthly	MSCS	12/04/23		114,142	GBP	(3,690)
DCC PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		244,601	GBP	(22,128)
DCP Midstream Partners LP	1-Day FEDEF + 1.00%	Monthly	MSCO	9/21/23		7,832,749		(13,443)
Derichebourg SA	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		196,189	EUR	20,301
Deutsche Bank AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		194,930	EUR	35,521
Deutsche Lufthansa AG	Euro STR + 0.35%	Monthly	JPHQ	9/06/23		90,244	EUR	33,187
DISH Network Corp.	1-Day FEDEF + 0.70%	Monthly	BOFA	2/24/24		288,951		198
DNO ASA	1-Week NIBOR + 0.28%	Monthly	SEBA	7/14/23		2,751,978	NOK	(11,434)
Dogus Otomotiv	1-Day FEDEF + 1.25%	Monthly	MSCS	1/22/24		107,427		2,784
Drax Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		277,736	GBP	(18,372)
Duerr AG	Euro STR + 0.35%	Monthly	JPHQ	2/15/24		247,922	EUR	155
Dufry AG	Euro STR + 0.35%	Monthly	JPHQ	8/16/23		124,815	CHF	18,255
E.ON SE	1-Day EONIA + 0.40%	Monthly	MSCS	1/25/24		961,805	EUR	30,530
Econocom Group SE	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		33,967	EUR	4,383
Edenred	1-Day EONIA + 0.30%	Monthly	MSCS	10/02/23		126,320	EUR	15,138
EFG International AG	1-Day SARON + 0.35%	Monthly	JPHQ	7/17/23		185,214	CHF	13,957
Eiffage SA	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		133,182	EUR	28,885
El.En. SpA	Euro STR + 0.35%	Monthly	JPHQ	7/13/23		121,346	EUR	27,187
Elecnor SA	1-Day EONIA + 0.35%	Monthly	MSCS	7/17/23		30,487	EUR	1,120
Elementis PLC	1-Day SONIA + 0.35%	Monthly	MSCS	9/29/23		67,342	GBP	24,179
Elia Group SA	Euro STR + 0.35%	Monthly	JPHQ	7/28/23		116,831	EUR	(6,296)
Elis SA	1-Day EONIA + 0.30%	Monthly	MSCS	2/26/24		84,488	EUR	575
Elkem ASA	1-Week NIBOR + 0.28%	Monthly	SEBA	7/13/23		3,251,229	NOK	82,046
Elmos Semiconductor SE	Euro STR + 0.35%	Monthly	JPHQ	7/18/23		114,923	EUR	55,335
Endesa SA	1-Day EONIA + 0.35%	Monthly	MSCS	1/12/24		132,339	EUR	79
Enea AB	1-Day FEDEF + 0.30%	Monthly	MSCS	7/17/23		272,167		(68,978)

75

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts - Longa (continued)
Energy Transfer LP	1-Month LIBOR + 0.50%	Monthly	CITI	10/18/23		90,194		$                        6,592
Energy Transfer LP	1-Month LIBOR + 0.90%	Monthly	GSCO	1/26/24		42,870		(138)
Energy Transfer LP	1-Month LIBOR + 0.90%	Monthly	GSCO	2/14/24		174,175		(2,770)
Engie SA	1-Day EONIA + 0.30%	Monthly	MSCS	8/30/23		206,173	EUR	19,675
Engie SA	1-Day EONIA + 0.40%	Monthly	MSCO	9/25/23		2,755,393	EUR	116,908
EnQuest PLC	1-Day SONIA + 0.35%	Monthly	MSCS	11/27/23		102,577	GBP	(7,586)
Entain PLC	1-Day SONIA + 0.65%	Monthly	MSCO	2/08/24		377,081	GBP	(1,478)
Equinor ASA	1-Week NIBOR + 0.28%	Monthly	SEBA	7/17/23		1,303,921	NOK	(9,913)
Eramet	1-Day EONIA + 0.30%	Monthly	MSCS	11/27/23		76,336	EUR	8,040
Ercros SA	1-Day EONIA + 0.35%	Monthly	MSCS	7/17/23		82,176	EUR	11,342
Ergomed PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		46,304	GBP	7,264
Ericsson	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		2,078,727	SEK	(38,616)
ESG Core Investments BV	1-Day EONIA + 0.65%	Monthly	MSCO	9/06/23		41,835	EUR	(1,655)
Etsy Inc.	1-Day FEDEF + 0.70%	Monthly	BOFA	2/24/24		230,361		722
Eurobio Scientific SA	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		48,413	EUR	(8,453)
Eurocommercial Properties NV	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		249,609	EUR	7,022
Europris ASA	1-Week NIBOR + 0.28%	Monthly	SEBA	7/17/23		1,394,694	NOK	39,138
EVS Broadcast Equipment SA	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		33,566	EUR	881
Exor NV	Euro STR	Monthly	JPHQ	2/28/24		35,463	EUR	174
Exxaro Resources Ltd.	1-Day SABOR + 0.36%	Monthly	MSCS	7/17/23		741,354	ZAR	(1,648)
Fagron NV	Euro STR	Monthly	JPHQ	8/18/23		77,653	EUR	2,713
FD Technologies PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		45,203	GBP	3,831
First Horizon	1-Day FEDEF + 0.30%	Monthly	BOFA	1/26/24		2,372,743		(7,296)
FirstGroup PLC	1-Day SONIA + 0.35%	Monthly	MSCS	8/24/23		180,739	GBP	(17,487)
FLSmidth & Co. A/S	1-Week CIBOR + 0.28%	Monthly	SEBA	10/19/23		516,077	DKK	29,924
Focus Financial Partners	1-Day FEDEF + 0.30%	Monthly	BOFA	2/05/24		373,392		(973)
ForFarmers	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		29,356	EUR	2,191
Forgerock	1-Day FEDEF + 0.30%	Monthly	BOFA	1/29/24		784,794		(2,523)
Foxtons Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	9/18/23		43,299	GBP	10,490
Galenica AG	1-Day SARON + 0.35%	Monthly	JPHQ	7/17/23		111,158	CHF	1,677
Galliford Try Holdings PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		45,210	GBP	1,100
Gaslog Partners	1-Day FEDEF + 0.30%	Monthly	BOFA	1/31/24		72,880		(240)
bGazprom PJSC ADR	1-Day FEDEF	Monthly	MSCS	1/31/24		–		–
Genfit	1-Day EONIA + 0.30%	Monthly	MSCS	11/01/23		50,734	EUR	3,295
Genmab A/S	1-Week CIBOR + 0.28%	Monthly	SEBA	7/17/23		1,233,345	DKK	3,375
GEO Corrections Holdings Inc.	1-Day FEDEF + 0.70%	Monthly	BOFA	2/01/24		616,816		17,688
Gestamp Automocion SA	1-Day EONIA + 0.35%	Monthly	MSCS	7/17/23		105,075	EUR	32,969
Getinge AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		717,255	SEK	3,456
GK Software SE	Euro STR + 0.35%	Monthly	JPHQ	8/07/23		38,440	EUR	6,857
Glanbia PLC	1-Day EONIA + 0.35%	Monthly	MSCS	10/27/23		1,176	EUR	21
Global Dominion Access SA	1-Day EONIA + 0.35%	Monthly	MSCS	7/18/23		56,477	EUR	(9,507)
Greencore Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	9/12/23		117,553	GBP	16,731
Greggs PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		55,825	GBP	30,095
Grieg Seafood ASA	1-Week NIBOR + 0.28%	Monthly	SEBA	7/17/23		3,164,313	NOK	(64,940)
Groupe Renault	1-Day EONIA + 0.30%	Monthly	MSCS	10/03/23		155,084	EUR	65,002
Grupa Azoty SA	1-Day FEDEF + 0.30%	Monthly	MSCS	7/17/23		86,781		14,887
Grupo Catalana Occidente	1-Day EONIA + 0.35%	Monthly	MSCS	11/10/23		69,572	EUR	2,739
GSK PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		116,427	GBP	12,158
Guerbet	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		42,231	EUR	(1,513)
Gulf Keystone Petroleum Ltd.	1-Day SONIA + 0.25%	Monthly	MSCS	7/17/23		98,930	GBP	9,673
H. Lundbeck A/S	1-Week CIBOR + 0.28%	Monthly	SEBA	11/27/23		1,055,379	DKK	15,661
H+H International A/S	1-Week CIBOR + 0.28%	Monthly	SEBA	7/17/23		671,480	DKK	(19,587)
Harbour Energy	1-Day SONIA + 0.35%	Monthly	MSCS	10/27/23		113,330	GBP	(21,956)
HeidelbergCement AG	1-Month EURIBOR + 0.40%	Monthly	JPHQ	7/17/23		113,178	EUR	39,026
Heijmans NV	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		176,494	EUR	33,349
Hemnet Group AB	1-Week STIBOR + 0.28%	Monthly	SEBA	8/02/23		1,392,632	SEK	13,238
Hensoldt AG	Euro STR + 0.35%	Monthly	JPHQ	8/23/23		105,447	EUR	45,923
Herbalife Nutrition Ltd.	1-Day FEDEF + 0.70%	Monthly	BOFA	2/16/24		406,043		757
HEXPOL AB	1-Week STIBOR + 0.28%	Monthly	SEBA	8/03/23		1,006,143	SEK	7,245
Hilton Food Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	10/18/23		21,400	GBP	4,326

76

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts - Longa (continued)
Hochschild Mining PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		72,942	GBP	$                        (7,158)
Hollywood Bowl Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		56,216	GBP	13,632
Home Capital	1-Day CORRA + 0.30%	Monthly	BOFA	2/01/24		553,476	CAD	151
Horizon Therapeutics PLC	1-Day FEDEF + 0.30%	Monthly	BOFA	1/26/24		2,642,651		(7,722)
HORNBACH Holding AG & Co. KGaA	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		213,859	EUR	3,280
Huber + Suhner AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		181,764	CHF	(6,768)
Hugo Boss AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		104,751	EUR	40,376
IAA US	1-Day FEDEF + 0.30%	Monthly	BOFA	1/26/24		1,873,023		(5,185)
Illimity Bank	Euro STR + 0.35%	Monthly	JPHQ	11/13/23		112,830	EUR	(11,988)
IMAX	1-Day FEDEF + 0.70%	Monthly	BOFA	2/02/24		392,719		(1,352)
IMAX	1-Day FEDEF + 0.70%	Monthly	JPHQ	2/08/24		222,192	CHF	4,421
Immofinanz	Euro STR + 0.35%	Monthly	JPHQ	11/27/23		25,009	EUR	19
Inchcape PLC	1-Day SONIA + 0.35%	Monthly	MSCS	9/28/23		217,516	GBP	56,101
Indivior PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		189,981	GBP	(7,349)
Indra Sistemas SA	1-Day EONIA + 0.35%	Monthly	MSCS	7/17/23		110,411	EUR	33,654
Industria de Diseno Textil Inditex SA	1-Day EONIA + 0.35%	Monthly	MSCS	8/22/23		43,678	EUR	8,294
Indutrade AB	1-Week STIBOR + 0.28%	Monthly	SEBA	3/01/24		270,920	SEK	(40)
Innovatec SpA	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		126,837	EUR	(19,632)
Integra Corp.	1-Day FEDEF + 0.20%	Monthly	BOFA	2/16/24		241,207		(57)
Intervest Offices & Warehouses NV	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		67,610	EUR	(3,816)
Inwido AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		2,933,867	SEK	5,326
Ion Beam Applications SA	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		40,794	EUR	13,149
IP Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		30,480	GBP	(9)
Ipsos Group SA	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		70,726	EUR	21,379
ISS A/S	1-Week CIBOR + 0.28%	Monthly	SEBA	11/27/23		1,605,183	DKK	663
Iveco	Euro STR + 0.35%	Monthly	JPHQ	11/28/23		164,095	EUR	72,389
Jacquet Metals SA	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		30,160	EUR	8,031
Jet2 PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/18/23		233,818	GBP	102,412
Julius Baer	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		238,561	CHF	47,814
Just Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	11/27/23		179,312	GBP	23,660
Kap Industrial Holdings Ltd.	1-Day SABOR + 0.30%	Monthly	MSCS	7/17/23		2,767,052	ZAR	(23,297)
Keller Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		75,542	GBP	4,014
Kenmare Resources PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		52,268	GBP	8,120
Kernel Holding SA	1-Day FEDEF + 0.30%	Monthly	MSCS	7/17/23		69,839		(4,422)
Kesko Corp.	Euro STR + 0.28%	Monthly	SEBA	7/14/23		145,339	EUR	(14,257)
Kinepolis	Euro STR + 0.35%	Monthly	JPHQ	2/26/24		70,548	EUR	929
Klepierre SA	1-Day EONIA + 0.30%	Monthly	MSCS	8/08/23		100,114	EUR	9,658
Koc Holding	1-Day FEDEF + 0.30%	Monthly	MSCS	7/17/23		175,787		118,812
Koenig & Bauer AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		53,876	EUR	16,058
Konecranes OYJ	Euro STR + 0.28%	Monthly	SEBA	11/22/23		80,404	EUR	8,819
Kongsberg Gruppen ASA	1-Week NIBOR + 0.28%	Monthly	SEBA	7/17/23		465,300	NOK	15,415
Koninklijke Ahold Delhaize NV	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		231,783	EUR	8,056
Koninklijke BAM Groep NV	Euro STR + 0.35%	Monthly	JPHQ	8/14/23		75,246	EUR	14,568
Koninklijke KPN NV	Euro STR + 0.35%	Monthly	JPHQ	10/11/23		89,782	EUR	14,694
Krones AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		295,431	EUR	37,018
Kuehne + Nagel AG	Euro STR + 0.35%	Monthly	JPHQ	8/11/23		75,508	CHF	7,828
Lancashire Holdings Ltd.	1-Day SONIA + 0.35%	Monthly	MSCS	2/19/24		157,151	GBP	624
Lar Espana Real Estate SOCIMI SA	1-Day EONIA + 0.35%	Monthly	MSCS	7/17/23		57,088	EUR	9,787
Lastminute.com Group	1-Day SARON + 0.35%	Monthly	JPHQ	11/27/23		23,650	CHF	(346)
Legal & General Group PLC	1-Day SONIA + 0.30%	Monthly	MSCS	2/19/24		107,917	GBP	(1,294)
Leonardo SpA	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		29,950	EUR	14,742
Leonteq AG	Euro STR + 0.35%	Monthly	JPHQ	7/14/23		176,934	CHF	38,505
LG Chem Ltd.	1-Day FEDEF + 0.30%	Monthly	MSCO	8/10/23		1,155,655		(26,001)
Liberty Media Corp.	1-Day FEDEF + 0.70%	Monthly	BOFA	10/15/23		1,736,351		(40,498)
Livent Corp.	1-Day FEDEF + 0.70%	Monthly	BOFA	2/05/24		1,385,468		3,842
Logista	1-Day EONIA + 0.35%	Monthly	MSCS	9/14/23		124,414	EUR	16,024
Lookers PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		46,033	GBP	11,605
Loomis AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/14/23		2,719,917	SEK	81,553
Lumentum Holdings	1-Day FEDEF + 0.70%	Monthly	BOFA	2/08/24		522,372		556
M.P. Evans Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		33,840	GBP	(555)

77

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts - Longa (continued)
Maire Tecnimont SpA	Euro STR + 0.35%	Monthly	JPHQ	8/14/23		160,870	EUR	$                        34,250
Maisons du Monde France SAS	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		94,914	EUR	25,564
Man Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/14/23		232,878	GBP	22,609
Map Aktif Adiperkasa PT	1-Day EONIA + 0.35%	Monthly	MSCS	2/26/24		64,102	EUR	517
Marks & Spencer Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		77,307	GBP	24,758
MAS PLC	1-Day SABOR + 0.30%	Monthly	MSCS	7/17/23		2,857,421	ZAR	8,055
Mavi Giyim Sanayi Ve Ticaret AS	1-Day FEDEF + 0.30%	Monthly	MSCS	7/17/23		105,942		13,208
Maxar Technologies Inc.	1-Day FEDEF + 0.30%	Monthly	BOFA	1/30/24		741,600		(2,336)
Media and Games Invest SE	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		1,139,754	SEK	(23,194)
Mediaset Espana Comunicacion SA	1-Day EONIA + 0.35%	Monthly	MSCS	7/17/23		71,901	EUR	(1,968)
Melexis NV	Euro STR + 0.35%	Monthly	JPHQ	8/18/23		91,468	EUR	30,224
Mensch und Maschine Software SE	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		69,150	EUR	218
Mercedes-Benz Group AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		149,230	EUR	30,153
Mercialys SA	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		107,189	EUR	24,056
Merck KGaA	Euro STR + 0.35%	Monthly	JPHQ	7/14/23		205,067	EUR	370
Mercury Systems	1-Day FEDEF + 0.30%	Monthly	BOFA	2/05/24		131,897		(312)
MERLIN Properties SOCIMI SA	1-Day EONIA + 0.35%	Monthly	MSCS	7/17/23		149,831	EUR	(4,963)
Mersen	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		98,244	EUR	50,403
Metall Zug AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		33,390	CHF	3,715
Migros Ticaret	1-Day FEDEF + 0.30%	Monthly	MSCS	9/08/23		86,605		19,839
Ming Yang	1-Day FEDEF + 0.30%	Monthly	MSCS	1/22/24		669,963		(39,189)
Mitchells & Butlers PLC	1-Day SONIA + 0.35%	Monthly	MSCS	11/27/23		4,917	GBP	743
Mitie Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		226,839	GBP	51,094
MLP SE	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		22,609	EUR	224
Moneysupermarket.com	1-Day SONIA + 0.35%	Monthly	MSCS	2/27/24		43,639	GBP	458
Morgan Advanced Materials	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		160,299	GBP	26,363
Morgan Sindall Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		198,366	GBP	(3,892)
Motus Holdings Ltd.	1-Day SABOR + 0.34%	Monthly	MSCS	7/17/23		2,606,448	ZAR	(7,987)
MPC Container Ships ASA	1-Week NIBOR + 0.28%	Monthly	SEBA	7/17/23		749,604	NOK	(10,378)
MTN Group Ltd.	1-Day SABOR + 0.32%	Monthly	MSCS	7/13/23		3,179,148	ZAR	12,040
MTU Aero Engines AG	Euro STR + 0.35%	Monthly	JPHQ	8/01/23		89,224	EUR	25,188
Muenchener Rueckversicherungs Gesellschaft AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		63,672	EUR	1,251
National Express Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	8/25/23		155,218	GBP	(53,081)
National Grid PLC	1-Day SONIA + 0.40%	Monthly	MSCS	1/23/24		1,176,839	GBP	(14,562)
National Instruments	1-Day FEDEF + 0.30%	Monthly	BOFA	2/23/24		151,530		192
NatWest Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		122,423	GBP	32,211
NCC AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		1,866,021	SEK	(10,741)
Neinor Homes SA	1-Day EONIA + 0.35%	Monthly	MSCS	7/17/23		116,548	EUR	(24,837)
NEPI Rockcastle NV	1-Day SABOR + 0.70%	Monthly	MSCS	11/17/23		2,186,289	ZAR	11,300
Netcare Ltd.	1-Day SABOR + 0.70%	Monthly	MSCS	10/02/23		2,123,494	ZAR	8,636
New Wave Group AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		1,052,822	SEK	21,200
New Work SE	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		64,490	EUR	14,191
Newriver Reit PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		121,206	GBP	1,999
Nexans	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		140,416	EUR	14,106
Next Fifteen Communications Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		110,498	GBP	9,077
Nilfisk Holding A/S	1-Week CIBOR + 0.28%	Monthly	SEBA	7/12/23		379,154	DKK	(9,970)
NKT A/S	1-Week CIBOR + 0.28%	Monthly	SEBA	11/27/23		934,224	DKK	(21,048)
NN Group NV	Euro STR + 0.35%	Monthly	JPHQ	7/14/23		222,752	EUR	(27,958)
Nokia Corp.	Euro STR + 0.28%	Monthly	SEBA	7/17/23		242,684	EUR	(6,401)
Nordea Bank ABP	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		829,510	SEK	7,973
Nordea Bank ABP	1-Week STIBOR + 0.28%	Monthly	SEBA	12/21/23		93,097	EUR	17,158
Norske Skog ASA	1-Week NIBOR + 0.28%	Monthly	SEBA	7/17/23		1,120,131	NOK	5,951
Novo Nordisk AS	1-Week CIBOR + 0.28%	Monthly	SEBA	7/17/23		1,460,058	DKK	31,625
NSI NV	Euro STR + 0.35%	Monthly	JPHQ	11/27/23		68,818	EUR	(3,754)
Nuvasive	1-Day FEDEF + 0.30%	Monthly	BOFA	2/10/24		103,752		(191)
OC Oerlikon	1-Day SARON + 0.35%	Monthly	JPHQ	10/19/23		62,256	CHF	(5,693)
OCI NV	Euro STR + 0.35%	Monthly	JPHQ	7/12/23		147,424	EUR	(22,599)
ODAS Elektrik Uretim ve Sanayi Ticaret AS	1-Day FEDEF + 0.30%	Monthly	MSCS	8/24/23		130,746		(11,247)
Okea ASA	1-Week NIBOR + 0.28%	Monthly	SEBA	7/17/23		1,927,765	NOK	(28,945)

78

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts - Longa (continued)
Omnia Holdings Ltd.	1-Day SABOR + 0.31%	Monthly	MSCS	7/17/23		3,006,232	ZAR	$                        (16,138)
OMV AG	Euro STR + 0.35%	Monthly	JPHQ	7/13/23		39,732	EUR	(3,130)
On The Beach Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		189,805	GBP	92,792
Ontex Group NV	Euro STR + 0.35%	Monthly	JPHQ	11/27/23		20,582	EUR	3,852
Ordina NV	Euro STR + 0.35%	Monthly	JPHQ	7/13/23		167,617	EUR	12,129
Oriola Corp.	Euro STR + 0.28%	Monthly	SEBA	7/17/23		52,323	EUR	(14,554)
ORIOR AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		75,186	CHF	3,583
ORSERO	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		63,946	EUR	1,248
OSB Group	1-Day SONIA + 0.35%	Monthly	MSCS	9/12/23		182,060	GBP	36,906
Osram Licht AG	1-Day SARON + 0.35%	Monthly	JPHQ	11/27/23		131,123	CHF	5,823
Outokumpu OYJ	Euro STR + 0.28%	Monthly	SEBA	7/25/23		134,284	EUR	52,073
OVS SpA	Euro STR + 0.35%	Monthly	JPHQ	7/26/23		201,638	EUR	30,593
OZAK GMYO	1-Day FEDEF + 0.30%	Monthly	MSCS	7/17/23		158,401		24,316
Pagegroup PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		109,094	GBP	2,125
Palo Alto Networks Inc.	1-Day FEDEF + 0.70%	Monthly	BOFA	7/01/23		2,116,847		(8,420)
Pan African Resources PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		189,540	GBP	(63,400)
Pandox AB	1-Week STIBOR + 0.28%	Monthly	SEBA	11/01/23		1,909,245	SEK	3,081
Paragon Banking Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	2/01/24		186,373	GBP	2,504
Parsons Corp.	1-Day FEDEF + 0.70%	Monthly	BOFA	2/09/24		1,094,848		3,110
Patrizia	Euro STR + 0.35%	Monthly	JPHQ	11/27/23		89,666	EUR	6,291
Per Aarsleff Holding A/S	1-Week CIBOR + 0.28%	Monthly	SEBA	7/17/23		718,751	DKK	47,221
Peugeot Invest SA	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		110,625	EUR	23,506
PGE Polska Grupa Energetyczna SA	1-Day FEDEF + 0.30%	Monthly	MSCS	7/14/23		213,093		(26,892)
PORR AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		76,633	EUR	17,313
Poste Italiane SpA	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		184,287	EUR	15,741
PPC Ltd.	1-Day SABOR + 0.32%	Monthly	MSCS	7/17/23		1,185,162	ZAR	8,828
Premier Foods PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		37,576	GBP	2,064
Progress Software Corp.	1-Day FEDEF + 0.70%	Monthly	BOFA	2/05/24		545,612		684
Proximus	Euro STR + 0.35%	Monthly	JPHQ	1/05/24		71,924	EUR	(6,150)
Prysmian SpA	Euro STR + 0.35%	Monthly	JPHQ	8/22/23		91,115	EUR	12,043
PSI Software AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		61,295	EUR	5,594
PSP	1-Day SARON + 0.35%	Monthly	JPHQ	11/29/23		16,140	CHF	13
PVA TePla AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		115,401	EUR	12,558
QIAGEN NV	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		153,454	EUR	(4,052)
QinetiQ Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	11/10/23		140,601	GBP	(4,817)
Quadient	1-Day EONIA + 0.30%	Monthly	MSCS	11/27/23		45,698	EUR	3,816
Qualtrics International	1-Day FEDEF + 0.30%	Monthly	BOFA	2/02/24		223,344		(573)
Ramsay Health Care Ltd.	1-Month BBSW + 0.40%	Monthly	BZWS	4/21/23		383,092	AUD	(2,020)
Rana Gruber ASA	1-Week NIBOR + 0.28%	Monthly	SEBA	7/17/23		341,973	NOK	14,694
Randstad NV	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		89,188	EUR	8,782
Redefine Properties Ltd.	1-Day SABOR + 0.31%	Monthly	MSCS	7/12/23		345,890	ZAR	(32)
Renew Holdings PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		60,490	GBP	582
Renewi PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		104,061	GBP	5,497
Repsol SA	1-Day EONIA + 0.35%	Monthly	MSCS	7/12/23		100,735	EUR	24,142
Resilient REIT	1-Day SABOR + 0.70%	Monthly	MSCS	11/28/23		2,289,215	ZAR	(2,716)
Retail Estates NV	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		125,684	EUR	19,432
Rexel	1-Day EONIA + 0.30%	Monthly	MSCS	7/13/23		148,388	EUR	82,495
Richemont	1-Day SARON + 0.35%	Monthly	JPHQ	7/31/23		130,834	CHF	52,020
Rightmove PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		138,662	GBP	(4,850)
Roche	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		258,091	CHF	(63,536)
Rockwool A/S	1-Week CIBOR + 0.28%	Monthly	SEBA	7/17/23		1,183,311	DKK	(10,192)
Rothschild & Co.	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		46,509	EUR	22,210
RWE AG	1-Day EONIA + 0.40%	Monthly	MSCS	1/25/24		603,884	EUR	16,885
SA Corporate Real Estate Ltd.	1-Day SABOR + 0.34%	Monthly	MSCS	7/17/23		981,653	ZAR	663
Saab AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		811,051	SEK	39,360
Sagax AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/24/23		1,942,161	SEK	16,010
Saint Gobain	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		134,555	EUR	51,524
Sanlorenzo	Euro STR + 0.35%	Monthly	JPHQ	8/25/23		120,783	EUR	33,217
Sappi Ltd.	1-Day SABOR + 0.70%	Monthly	MSCS	11/27/23		2,980,761	ZAR	(9,385)
Saras	Euro STR + 0.35%	Monthly	JPHQ	11/27/23		26,122	EUR	5,068

79

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts - Longa (continued)
Sartorius AG	1-Day EONIA + 0.30%	Monthly	JPHQ	7/19/23		151,196	EUR	$                          4,037
Sasol Ltd.	1-Day SABOR + 0.33%	Monthly	MSCS	7/17/23		3,901,808	ZAR	(42,328)
SAVILLS PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		223,454	GBP	(1,597)
Scandi Standard AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		818,597	SEK	32,210
Schindler	1-Day SARON + 0.35%	Monthly	JPHQ	11/29/23		83,887	CHF	16,040
Scout24 SE	Euro STR + 0.35%	Monthly	JPHQ	12/06/23		176,948	EUR	6,357
SESA	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		156,156	EUR	13,590
SFS Group AG	1-Day SARON + 0.35%	Monthly	JPHQ	2/08/24		211,042	CHF	578
Shaw Communications	1-Day CORRA + 0.30%	Monthly	BOFA	1/31/24		3,225,648	CAD	(6,855)
Sibanye Stillwater Ltd.	1-Day SABOR + 0.31%	Monthly	MSCS	7/14/23		3,307,773	ZAR	(10,318)
Siegfried	1-Day SARON + 0.35%	Monthly	JPHQ	11/09/23		131,560	CHF	4,301
Siemens Energy AG	Euro STR + 0.35%	Monthly	JPHQ	12/06/23		117,185	EUR	5,198
Siemens Energy AG	Euro STR + 0.35%	Monthly	MSCS	3/01/24		74,719	EUR	(176)
Signify NV	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		146,700	EUR	14,074
SII	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		69,525	EUR	8,708
Silicon Motion Technology	1-Day FEDEF + 0.30%	Monthly	BOFA	1/29/24		806,640		(2,366)
Sinoma Science	1-Day FEDEF + 0.30%	Monthly	MSCS	2/05/24		339,212		(23,261)
SIPEF	Euro STR + 0.35%	Monthly	JPHQ	7/13/23		41,075	EUR	928
Sixt SE	Euro STR + 0.35%	Monthly	JPHQ	2/15/24		69,588	EUR	4,673
SMCP SA	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		104,052	EUR	42,569
Snam SpA	Euro STR + 0.35%	Monthly	JPHQ	10/13/23		85,903	EUR	(507)
Societe Generale SA	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		154,145	EUR	56,671
Solar A/S	1-Week CIBOR + 0.28%	Monthly	SEBA	7/13/23		1,151,423	DKK	(5,784)
Solvay	Euro STR + 0.35%	Monthly	JPHQ	10/09/23		201,541	EUR	18,204
Sonova	Euro STR + 0.35%	Monthly	JPHQ	7/31/23		161,361	CHF	(6,670)
Sopra Steria Group SA	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		208,422	EUR	66,757
Southern Co.	1-Day FEDEF + 0.70%	Monthly	BOFA	2/28/24		830,361		2,230
Speedy Hire PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		97,556	GBP	(14,952)
Spirit Airlines	1-Day FEDEF + 0.30%	Monthly	BOFA	2/02/24		252,816		(757)
SSAB AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		692,188	SEK	30,828
SSE PLC	1-Day SONIA + 0.40%	Monthly	MSCS	9/26/23		890,205	GBP	4,479
SSP Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	12/04/23		128,796	GBP	16,643
Stadler Rail AG	Euro STR + 0.35%	Monthly	JPHQ	7/31/23		181,221	CHF	25,865
Standard Chartered PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		56,826	GBP	23,778
STEF	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		54,544	EUR	6,663
Stellantis NV	Euro STR + 0.35%	Monthly	JPHQ	7/12/23		172,266	EUR	37,664
SThree PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/12/23		141,846	GBP	35,329
STMicroelectronic NV	Euro STR	Monthly	JPHQ	2/28/24		35,656	EUR	(114)
Stockmann PLC	Euro STR + 0.28%	Monthly	SEBA	7/12/23		144,921	EUR	(36,848)
Stolt-Nielsen Ltd.	1-Week NIBOR + 0.28%	Monthly	SEBA	7/17/23		620,980	NOK	33,797
Stora Enso Oyj	Euro STR + 0.28%	Monthly	SEBA	10/23/23		125,887	EUR	(3,944)
Storskogen Group AB	1-Week STIBOR + 0.28%	Monthly	SEBA	11/27/23		1,066,392	SEK	2,194
STRABAG SE	Euro STR + 0.35%	Monthly	JPHQ	7/12/23		166,110	EUR	(8,798)
Sulzer Ltd.	1-Day SARON + 0.35%	Monthly	JPHQ	11/10/23		213,176	CHF	24,620
Sungrow Power	1-Day FEDEF + 0.30%	Monthly	MSCS	7/10/23		725,344		3,433
Sureserve Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		28,625	GBP	18
SUSE SA	Euro STR + 0.35%	Monthly	JPHQ	1/31/24		133,757	EUR	4,389
SUSS MicroTec SE	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		78,825	EUR	54,441
Swatch Group Ltd.	1-Day SARON + 0.35%	Monthly	JPHQ	7/17/23		152,334	CHF	40,393
Swedish Orphan Biovitrum AB	1-Week STIBOR + 0.65%	Monthly	SEBA	7/13/23		2,944,268	SEK	21,784
Swiss Life Holding AG	1-Day SARON + 0.35%	Monthly	JPHQ	7/17/23		124,248	CHF	20,130
Swissquote Group Holding SA	1-Day SARON + 0.35%	Monthly	JPHQ	7/17/23		73,272	CHF	17,119
Sydbank A/S	1-Week CIBOR + 0.28%	Monthly	SEBA	7/17/23		746,096	DKK	67,037
Sylvania Platinum Ltd.	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		86,149	GBP	29,453
Synlab AB	1-Month EURIBOR + 0.25%	Monthly	JPHQ	12/06/23		73,500	EUR	(29,791)
Talanx AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		243,668	EUR	29,743
Tauron Polska Energia SA	1-Day FEDEF + 0.30%	Monthly	MSCS	7/17/23		75,582		(11,230)
TBC Bank Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		54,253	GBP	65,751
TeamViewer AG	Euro STR + 0.35%	Monthly	JPHQ	8/01/23		216,129	EUR	82,349
Technip Energies NV	1-Day EONIA + 0.30%	Monthly	MSCS	8/07/23		162,467	EUR	80,808

80

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts - Longa (continued)
Tegna Inc.	1-Day FEDEF + 0.30%	Monthly	BOFA	1/29/24		834,869		$                                 –
Telecom Plus PLC	1-Day SONIA + 0.35%	Monthly	MSCS	9/06/23		150,247	GBP	(5,279)
Telephone & Data Systems Inc.	1-Day FEDEF + 0.30%	Monthly	BOFA	2/10/24		304,560		(460)
Ten Square Games	1-Day FEDEF + 1.25%	Monthly	MSCS	1/05/24		94,514		(9,759)
Tessenderlo Group	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		95,475	EUR	1,783
TF1 Group	1-Day EONIA + 0.30%	Monthly	MSCS	7/12/23		271,549	EUR	29,944
Thales	1-Day EONIA + 0.30%	Monthly	MSCS	8/23/23		46,726	EUR	7,876
Tharisa PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		32,680	GBP	1,765
Thungela Resources Ltd.	1-Day SABOR + 0.70%	Monthly	MSCS	8/23/23		2,503,010	ZAR	(48,605)
ThyssenKrupp AG	Euro STR + 0.35%	Monthly	JPHQ	11/27/23		77,997	EUR	13,337
Tiger Brands Ltd.	1-Day SABOR + 0.70%	Monthly	MSCS	1/25/24		4,408,586	ZAR	13,841
Toshiba Corp.	1-Day MUTSCALM + 0.55%	Monthly	MSCO	8/25/23		62,733,227	JPY	(74,133)
TotalEnergies SE	1-Day EONIA + 0.30%	Monthly	MSCS	12/18/23		50,148	EUR	1,318
Trainline PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		184,433	GBP	(50,394)
Transocean Ltd.	1-Day FEDEF + 0.70%	Monthly	BOFA	2/10/24		1,348,122		35,030
Transtema Group AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		536,595	SEK	12,299
Trelleborg AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		725,151	SEK	17,354
TUI AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		89,046	EUR	12,742
Tullow Oil PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		73,726	GBP	(20,019)
Turkiye Hava Yollari	1-Day FEDEF + 0.30%	Monthly	MSCS	7/17/23		42,369		44,158
Tyler Technologies Inc.	SOFR + 0.35%	Monthly	GSCO	2/23/24		134,069		2,646
U.S. Steel	SOFR + 0.35%	Monthly	GSCO	2/23/24		1,665,182		117,694
u-blox AG	1-Day SARON + 0.35%	Monthly	JPHQ	7/17/23		224,979	CHF	(23,710)
UBS Group AG	1-Day SARON + 0.35%	Monthly	JPHQ	7/17/23		262,299	CHF	53,719
Umicore	Euro STR + 0.35%	Monthly	JPHQ	11/21/23		107,861	EUR	(8,364)
UniCredit SpA	Euro STR + 0.35%	Monthly	JPHQ	9/25/23		78,945	EUR	41,956
Unipol Gruppo SpA	Euro STR + 0.35%	Monthly	JPHQ	7/14/23		261,476	EUR	21,977
United Internet AG	Euro STR + 0.35%	Monthly	JPHQ	1/31/24		184,620	EUR	(4,220)
Univar Solutions	1-Day FEDEF + 0.30%	Monthly	BOFA	2/10/24		139,695		(251)
Universal Music Group NV	Euro STR + 0.35%	Monthly	JPHQ	10/12/23		73,341	EUR	6,958
Uponor OYJ	Euro STR + 0.28%	Monthly	SEBA	7/17/23		23,289	EUR	7,198
Valiant	Euro STR + 0.35%	Monthly	JPHQ	7/12/23		136,663	CHF	9,803
Var Energi	1-Week NIBOR + 0.28%	Monthly	SEBA	10/23/23		1,108,251	NOK	(11,232)
Veidekke	1-Week NIBOR + 0.28%	Monthly	SEBA	8/24/23		712,773	NOK	11,725
Veradigm Inc.	1-Day FEDEF + 0.70%	Monthly	BOFA	2/08/24		676,111		981
Verallia	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		105,587	EUR	80,166
Vertu Motors PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		102,097	GBP	11,784
VIB Vermoegen AG	Euro STR + 0.35%	Monthly	JPHQ	7/12/23		62,427	EUR	(3,401)
Vilmorin & Cie SA	1-Day EONIA + 0.30%	Monthly	MSCS	7/17/23		36,884	EUR	6,689
Virgin Money PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		61,224	GBP	31,382
Vitesco Technologies	Euro STR + 0.35%	Monthly	JPHQ	9/04/23		158,727	EUR	23,303
Vodafone Group PLC	1-Day SONIA + 0.65%	Monthly	MSCO	2/08/24		1,853,842	GBP	(419,540)
Voestalpine AG	Euro STR + 0.35%	Monthly	JPHQ	12/18/23		67,215	EUR	30,004
Volkswagen AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		196,614	EUR	1,700
Vontobel	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		111,778	CHF	(440)
Vukile Property Fund Ltd.	1-Day SABOR + 0.70%	Monthly	MSCS	8/24/23		2,788,084	ZAR	826
Wacker Chemie AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		105,459	EUR	27,908
Watkin Jones PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		297,550	GBP	(163,008)
Webuild SpA	Euro STR	Monthly	JPHQ	7/17/23		121,251	EUR	12,304
Wereldhave NV	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		89,785	EUR	15,658
Wickes Group PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		199,007	GBP	(14,893)
Wienerberger AG	Euro STR + 0.35%	Monthly	JPHQ	10/09/23		138,992	EUR	34,008
Wihlborgs Fastigheter AB	1-Week STIBOR + 0.28%	Monthly	SEBA	7/17/23		1,719,572	SEK	25,953
Wolfspeed Inc.	SOFR + 0.35%	Monthly	GSCO	3/01/24		89,897		53
WPP PLC	1-Day SONIA + 0.35%	Monthly	MSCS	7/17/23		90,680	GBP	32,259
Wuestenrot & Wuerttembergische AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		75,610	EUR	8,959
XJ Goldwind	1-Day FEDEF + 0.30%	Monthly	MSCS	1/22/24		687,031		(25,078)
XTB	1-Day FEDEF + 1.25%	Monthly	MSCS	12/15/23		34,289		(622)
Yara International ASA	1-Week NIBOR + 0.28%	Monthly	SEBA	7/17/23		1,453,132	NOK	26,149
YouGov	1-Day SONIA + 0.35%	Monthly	MSCS	10/27/23		42,618	GBP	(409)

81

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts - Longa (continued)
Zalando SE	Euro STR	Monthly	JPHQ	3/01/24		35,248	EUR	$	22
Zehnder	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		201,000	CHF		78,746
Zug Estates Holding AG	1-Day SARON + 0.35%	Monthly	JPHQ	11/27/23		18,162	CHF		916
Zumtobel Group AG	Euro STR + 0.35%	Monthly	JPHQ	7/17/23		23,221	EUR		3,426
									4,292,381
Equity Contracts – Shortc
AAK AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		1,989,334	SEK		(18,175)
AB Dynamics PLC	1-Day SONIA - 1.25%	Monthly	MSCS	7/18/23		45,395	GBP		(30,854)
Abrdn European Logistics Income PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		84,060	GBP		21,988
Acciones Fomento De Construcciones	1-Day EONIA - 1.75%	Monthly	MSCS	1/12/24		48,613	EUR		(1,463)
Accor SA	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		165,987	EUR		(44,776)
ACEA	Euro STR - 0.30%	Monthly	JPHQ	10/13/23		48,915	EUR		(4,143)
Acomo NV	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		52,721	EUR		(5,797)
adesso SE	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		66,971	EUR		(30,617)
Adevinta ASA	1-Week NIBOR - 0.28%	Monthly	SEBA	7/17/23		611,508	NOK		(12,197)
Admiral Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		147,383	GBP		(27,098)
Adva Optical Networking SE	Euro STR - 7.30%	Monthly	JPHQ	1/30/24		53,183	EUR		(1,579)
AECI Ltd.	1-Day SABOR - 0.50%	Monthly	MSCS	9/20/23		2,500,456	ZAR		(10,680)
Agilyx	1-Week NIBOR - 4.25%	Monthly	SEBA	8/07/23		325,240	NOK		(3,447)
Aker BP ASA	1-Week NIBOR - 0.28%	Monthly	SEBA	7/17/23		1,508,124	NOK		(4,279)
Aker Horizons	1-Week NIBOR - 4.25%	Monthly	SEBA	11/22/23		379,129	NOK		3,173
AkzoNobel NV	Euro STR - 0.30%	Monthly	JPHQ	8/28/23		171,954	EUR		(8,666)
Alcadon Group AB	1-Week STIBOR - 6.00%	Monthly	SEBA	7/17/23		155,375	SEK		2,023
Allegro	1-Day FEDEF - 2.13%	Monthly	MSCS	7/12/23		121,405			(3,606)
Allreal Holding AG	1-Day SARON - 0.35%	Monthly	JPHQ	7/17/23		187,685	CHF		(14,681)
Ally Financial Inc.	1-Day FEDEF - 0.35%	Monthly	MSCS	12/29/23		214,571			6,108
Alm. Brand A/S	1-Week CIBOR - 0.75%	Monthly	SEBA	7/26/23		1,239,459	DKK		(41,013)
Almirall SA	1-Day EONIA - 0.35%	Monthly	MSCS	10/11/23		160,205	EUR		3,199
Alpha FX Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		86,798	GBP		(10,533)
Alstom SA	1-Day EONIA - 0.30%	Monthly	MSCS	7/13/23		86,137	EUR		(23,502)
Aluflexpack AG	Euro STR - 0.85%	Monthly	JPHQ	7/17/23		32,878	CHF		(5,112)
Ambu A/S	1-Week CIBOR - 1.50%	Monthly	SEBA	7/17/23		809,423	DKK		(26,011)
Amplifon	Euro STR - 0.30%	Monthly	JPHQ	11/27/23		56,474	EUR		16
Amyris	1-Day FEDEF - 10.67%	Monthly	BOFA	2/01/24		32,030			(172)
AngloGold Ashanti Ltd.	1-Day SABOR - 0.50%	Monthly	MSCS	10/06/23		2,370,575	ZAR		(29,923)
Anheuser-Busch InBev SA/NV	Euro STR - 0.30%	Monthly	JPHQ	7/13/23		218,067	EUR		(17,297)
Anora Group PLC	Euro STR - 0.28%	Monthly	SEBA	7/17/23		81,104	EUR		16,767
Antares Vision	Euro STR - 2.65%	Monthly	JPHQ	8/07/23		19,249	EUR		1,914
Antin Infrastructure Partners	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		122,281	EUR		12,659
Antofagasta PLC	1-Day SONIA - 0.30%	Monthly	MSCS	2/15/24		127,693	GBP		11,608
Arbonia AG	1-Day SARON - 0.35%	Monthly	JPHQ	11/08/23		158,440	CHF		16,289
Arcelik	1-Day FEDEF - 5.00%	Monthly	MSCS	7/17/23		133,760			(90,925)
Argan SA	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		80,116	EUR		6,947
Aroundtown SA	Euro STR - 0.30%	Monthly	JPHQ	7/12/23		154,538	EUR		7,630
Ascential PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		91,444	GBP		(36,545)
Ascopiave SpA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		35,724	EUR		(5,219)
Aselsan AS	1-Day FEDEF - 7.50%	Monthly	MSCS	7/17/23		93,090			(123,723)
Ashmore Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	8/18/23		78,926	GBP		(30,068)
ASOS PLC	1-Day SONIA - 0.88%	Monthly	MSCS	9/29/23		35,793	GBP		(19,277)
Aspen Pharmacare Holdings Ltd.	1-Day SABOR - 0.50%	Monthly	MSCS	7/17/23		2,848,394	ZAR		4,358
AUTO1 Group SE	Euro STR - 0.75%	Monthly	JPHQ	7/14/23		179,368	EUR		26,562
Avanza Bank Holding AB	1-Week STIBOR - 0.75%	Monthly	SEBA	7/17/23		969,539	SEK		(1,544)
Azelis Holding SA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		49,003	EUR		736
B&M European Value Retail SA	1-Day SONIA - 0.30%	Monthly	MSCS	10/31/23		142,158	GBP		(75,034)
Bachem AG	Euro STR - 0.35%	Monthly	JPHQ	7/17/23		167,249	CHF		(37,859)
Banca Generali SpA	Euro STR - 0.30%	Monthly	JPHQ	9/21/23		158,599	EUR		(3,980)
Bank OZK	1-Day FEDEF - 0.35%	Monthly	MSCS	12/29/23		48,277			(5,611)
Banque Cantonale Vaudoise	Euro STR - 0.35%	Monthly	JPHQ	7/12/23		183,832	CHF		16,227

82

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts – Shortc (continued)
Basic-Fit	Euro STR - 1.75%	Monthly	JPHQ	7/14/23		31,504	EUR	$                  (11,974)
Basler AG	Euro STR - 1.30%	Monthly	JPHQ	7/17/23		47,528	EUR	2,911
BAWAG Group AG	Euro STR - 0.30%	Monthly	JPHQ	10/23/23		135,643	EUR	(24,429)
BayWa AG	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		159,906	EUR	11,499
BE Semiconductor Industries	Euro STR	Monthly	JPHQ	2/28/24		35,797	EUR	(236)
Befesa SA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		210,563	EUR	(65,657)
Beiersdorf AG	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		96,694	EUR	(12,173)
Beijer Alma AB	1-Week STIBOR - 0.28%	Monthly	SEBA	1/24/24		296,506	SEK	(1,216)
Beijer Ref AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		1,065,338	SEK	(8,999)
Belimo Holding AG	Euro STR - 0.35%	Monthly	JPHQ	7/17/23		231,956	CHF	(45,391)
Berkeley Group Holdings PLC	1-Day SONIA - 0.30%	Monthly	MSCS	8/17/23		148,220	GBP	(16,595)
BFF Bank SpA	Euro STR - 0.30%	Monthly	JPHQ	10/16/23		38,806	EUR	(12,422)
BioMarin Pharmaceutical Inc.	SOFR - 0.35%	Monthly	GSCO	2/23/24		274,478		4,441
Block Inc.	1-Day FEDEF - 0.20%	Monthly	BOFA	2/22/24		73,752		62
BMW	1-Day EONIA - 0.40%	Monthly	MSCS	12/13/23		515,240	EUR	8,205
Bollore SE	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		102,398	EUR	(15,598)
Bonava AB	1-Week STIBOR - 0.28%	Monthly	SEBA	1/24/24		417,208	SEK	10,005
Boohoo Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	9/01/23		84,420	GBP	(11,188)
Borussia Dortmund	Euro STR - 0.95%	Monthly	JPHQ	7/17/23		75,871	EUR	(11,473)
Bossard AG	1-Day SARON - 0.35%	Monthly	JPHQ	7/17/23		208,530	CHF	(68,413)
Bufab AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		851,065	SEK	(4,318)
Burkhalter	1-Day SARON - 0.35%	Monthly	JPHQ	9/20/23		69,749	CHF	(2,131)
BW Energy Ltd.	1-Week NIBOR - 0.45%	Monthly	SEBA	7/17/23		358,326	NOK	(8,025)
Bystronic AG	Euro STR - 0.35%	Monthly	JPHQ	8/03/23		218,050	CHF	(53,474)
CA Immobilien Anlagen AG	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		227,120	EUR	41,710
Cadeler AS	1-Week NIBOR - 6.50%	Monthly	SEBA	7/17/23		1,195,442	NOK	(43,679)
CaixaBank SA	1-Day EONIA - 0.35%	Monthly	MSCS	7/17/23		99,889	EUR	(40,836)
Campari	Euro STR - 0.30%	Monthly	JPHQ	7/31/23		114,335	EUR	(12,462)
Cancom SE	1-Month EURIBOR - 0.25%	Monthly	JPHQ	7/17/23		104,289	EUR	1,379
Capital One Financial Corp.	1-Day FEDEF - 0.35%	Monthly	MSCS	1/15/24		88,244		(3,106)
Capitec Bank Holdings Ltd.	1-Day SABOR - 0.50%	Monthly	MSCS	7/14/23		5,959,252	ZAR	27,443
Capricorn Energy PLC	1-Day SONIA - 0.30%	Monthly	MSCS	12/21/23		229,847	GBP	(574)
Carel Industries	Euro STR - 0.30%	Monthly	JPHQ	9/21/23		65,707	EUR	(13,443)
Carnival Corp.	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		192,845	GBP	(31,199)
Castellum AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		1,030,875	SEK	(214)
CCC SA	1-Day FEDEF - 12.75%	Monthly	MSCS	8/02/23		48,426		5,799
CD Projekt SA	1-Day FEDEF - 1.25%	Monthly	MSCS	7/17/23		109,757		(36,299)
Ceres Power Holdings PLC	1-Day SONIA - 1.38%	Monthly	MSCS	7/17/23		90,424	GBP	(14,924)
CGG SA	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		82,674	EUR	(12,585)
Chargeurs	1-Day EONIA - 0.75%	Monthly	MSCS	2/19/24		67,289	EUR	395
Chesnara PLC	1-Day SONIA - 0.30%	Monthly	MSCS	12/25/23		46,031	GBP	237
Chr. Hansen A/S	1-Week CIBOR - 0.28%	Monthly	SEBA	7/17/23		900,971	DKK	1,440
Clicks Group Ltd.	1-Day SABOR - 1.25%	Monthly	MSCS	10/06/23		3,860,501	ZAR	10,342
Close Brothers Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	8/31/23		119,684	GBP	(99)
Cloudberry Clean Energy ASA	1-Week NIBOR - 1.00%	Monthly	SEBA	7/17/23		336,786	NOK	9,818
Cofinimmo	Euro STR - 0.30%	Monthly	JPHQ	10/13/23		129,029	EUR	(634)
Coloplast A/S	1-Week CIBOR - 0.28%	Monthly	SEBA	7/17/23		1,096,923	DKK	(1,833)
Colruyt SA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		195,602	EUR	(3,537)
Concentric AB	1-Week STIBOR - 0.75%	Monthly	SEBA	7/17/23		431,994	SEK	(5,363)
Corbion NV	Euro STR - 0.30%	Monthly	JPHQ	7/12/23		178,576	EUR	(50,034)
COSMO Pharmaceuticals NV	1-Day SARON - 0.35%	Monthly	JPHQ	7/17/23		90,374	CHF	(4,661)
Covestro AG	Euro STR - 0.30%	Monthly	JPHQ	11/06/23		136,326	EUR	(18,467)
Covivio SA	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		58,004	EUR	(5,455)
Credem	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		69,637	EUR	(21,619)
Credit Agricole SA	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		114,439	EUR	(35,410)
CTP NV	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		123,829	EUR	(29,884)
Curro Holdings	1-Day SABOR - 1.50%	Monthly	MSCS	1/08/24		1,150,402	ZAR	1,200
Cyfrowy Polsat SA	1-Day FEDEF - 0.50%	Monthly	MSCS	7/17/23		133,517		5,143
Daetwyler	Euro STR - 0.35%	Monthly	JPHQ	7/17/23		232,016	CHF	(13,507)
Danone SA	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		130,202	EUR	(1,749)

83

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts – Shortc (continued)
De La Rue PLC	1-Day SONIA - 0.66%	Monthly	MSCS	7/17/23		37,014	GBP	$                        4,295
Deliveroo PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		59,052	GBP	749
Delivery Hero SE	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		103,612	EUR	(3,055)
De'Longhi SpA	Euro STR - 0.30%	Monthly	JPHQ	7/25/23		232,887	EUR	(62,588)
Deutsche Beteiligungs AG	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		35,080	EUR	(6,367)
Deutsche Wohnen SE	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		54,554	EUR	(1,055)
DIC Asset AG	Euro STR - 0.75%	Monthly	JPHQ	2/09/24		106,483	EUR	542
D'Ieteren SA	Euro STR - 0.30%	Monthly	JPHQ	7/14/23		48,051	EUR	(2,332)
Digital Value SpA	Euro STR - 0.30%	Monthly	JPHQ	11/27/23		51,110	EUR	(823)
Dino Polska SA	1-Day FEDEF - 0.50%	Monthly	MSCS	7/14/23		172,383		(26,008)
Dis-Chem Pharmacies	1-Day SABOR - 0.50%	Monthly	MSCS	12/25/23		2,941,941	ZAR	11,001
Discovery Ltd.	1-Day SABOR - 0.50%	Monthly	MSCS	7/17/23		4,763,459	ZAR	(53,128)
DISH Network Corp.	1-Day FEDEF - 0.20%	Monthly	BOFA	2/24/24		58,750		(180)
DLG Exhibitions & Events	1-Day SONIA - 0.25%	Monthly	MSCS	2/26/24		78,151	GBP	(1,120)
Dometic Group AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		1,962,719	SEK	(4,816)
Dottikon ES Holding AG	1-Day SARON - 1.40%	Monthly	JPHQ	7/17/23		222,865	CHF	447
DRDGOLD Ltd.	1-Day SABOR - 1.00%	Monthly	MSCS	7/17/23		554,783	ZAR	(12,143)
DSV A/S	1-Week CIBOR - 0.28%	Monthly	SEBA	7/14/23		352,538	DKK	(12,495)
DT Capital Ltd.	1-Month HIBOR - 0.30%	Monthly	JPHQ	1/30/24		115,805	EUR	(12,134)
Dufry AG	1-Day SARON - 0.35%	Monthly	BZWS	11/17/23		2,134,547	CHF	(79,697)
Ebro Foods SA	1-Day EONIA - 0.35%	Monthly	MSCS	7/13/23		148,310	EUR	(7,907)
Eckert & Ziegler AG	Euro STR - 0.30%	Monthly	JPHQ	8/21/23		188,900	EUR	(60,087)
Emmi	1-Day SARON - 0.35%	Monthly	JPHQ	9/04/23		147,969	CHF	(19,724)
Ems-chemie AG	1-Day SARON - 0.35%	Monthly	JPHQ	7/17/23		158,694	CHF	(13,926)
ENAV SpA	Euro STR - 0.30%	Monthly	JPHQ	9/21/23		94,392	EUR	(7,862)
Encore Capital Group	1-Day FEDEF - 0.20%	Monthly	BOFA	2/02/24		489,410		1,576
ENEL SpA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		119,780	EUR	(13,490)
Energean PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		101,322	GBP	5,487
Entra ASA	1-Week NIBOR - 0.28%	Monthly	SEBA	7/13/23		1,577,048	NOK	1,895
Epiroc AB	1-Week STIBOR - 0.28%	Monthly	SEBA	11/27/23		756,765	SEK	(811)
EQT AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		1,606,192	SEK	(8,192)
Equites Property Fund Ltd.	1-Day SABOR - 0.50%	Monthly	MSCS	7/17/23		1,101,573	ZAR	3,284
Eregli Demir ve Celik Fabrikalari TAS	1-Day FEDEF - 5.00%	Monthly	MSCS	7/14/23		100,949		(54,340)
Erste Group Bank AG	Euro STR - 0.30%	Monthly	JPHQ	10/12/23		82,815	EUR	(23,569)
Esprinet	Euro STR - 0.30%	Monthly	JPHQ	11/27/23		93,271	EUR	(3,699)
Essentra PLC	1-Day SONIA - 0.30%	Monthly	MSCS	9/01/23		142,559	GBP	(25,841)
Etsy Inc.	1-Day FEDEF - 0.20%	Monthly	BOFA	2/24/24		174,830		45
Eurazeo SE	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		51,339	EUR	(4,044)
EuroAPI	1-Day EONIA - 0.30%	Monthly	MSCS	12/22/23		34,779	EUR	(4,675)
Euronav NV	Euro STR - 0.30%	Monthly	JPHQ	12/22/23		209,648	EUR	(31,171)
Euronext	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		103,273	EUR	2,954
Eurotech	Euro STR - 10.60%	Monthly	JPHQ	8/04/23		69,247	EUR	(3,862)
EXMAR	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		186,352	EUR	(3,235)
Faurecia SE	1-Day EONIA - 0.30%	Monthly	MSCS	8/09/23		58,150	EUR	(46,367)
Ferrari SpA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		132,064	EUR	(25,770)
Ferrovial SA	1-Day EONIA - 0.35%	Monthly	MSCS	7/17/23		263,974	EUR	(17,525)
Fevertree Drinks PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/25/23		187,594	GBP	(30,587)
Fielmann AG	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		172,992	EUR	2,136
FinecoBank SpA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		184,041	EUR	(29,584)
flatexDEGIRO AG	1-Month EURIBOR - 0.70%	Monthly	JPHQ	12/06/23		101,572	EUR	(11,542)
Fluidra SA	1-Day EONIA - 0.35%	Monthly	MSCS	9/29/23		182,131	EUR	(20,151)
Flutter Entertainment PLC	1-Day SONIA - 0.30%	Monthly	MSCS	8/31/23		140,234	GBP	(49,173)
Fnac Darty SA	1-Day EONIA - 0.30%	Monthly	MSCS	1/29/24		163,268	EUR	(7,169)
Fortress REIT Ltd.	1-Day SABOR - 0.56%	Monthly	MSCS	7/12/23		4,456,242	ZAR	(1,844)
Foschini Group Ltd. (The)	1-Day SABOR - 0.50%	Monthly	MSCS	8/30/23		2,376,210	ZAR	2,054
Francaise Energie	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		90,320	EUR	14,948
Fresenius Medical Care AG & Co.	1-Day FEDEF - 0.50%	Monthly	JPHQ	11/20/23		96,561	EUR	(5,236)
Fresnillo PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		150,122	GBP	(19,031)
Friedrich Vorwerk Group SE	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		53,502	EUR	30,557
Galapagos NV	Euro STR - 0.30%	Monthly	JPHQ	1/09/24		75,142	EUR	15,841

84

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts – Shortc (continued)
Generali Group	Euro STR - 0.30%	Monthly	JPHQ	10/13/23		93,344	EUR	$                    (12,001)
Genuit Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		168,678	GBP	17,500
Geo Group Inc. (The)	1-Day FEDEF - 0.20%	Monthly	BOFA	2/01/24		367,026		1,567
Getlink SE	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		257,864	EUR	33,345
GIMV NV	Euro STR - 0.30%	Monthly	JPHQ	12/15/23		101,678	EUR	1,922
Givaudan SA	1-Day SARON - 0.35%	Monthly	JPHQ	7/17/23		89,100	CHF	4,121
Gjensidige Forsikring ASA	1-Week NIBOR - 0.28%	Monthly	SEBA	7/17/23		903,786	NOK	3,818
Golden Ocean Group Ltd	1-Week NIBOR - 0.28%	Monthly	SEBA	1/10/24		637,792	NOK	(13,224)
GPW	1-Day FEDEF - 1.125%	Monthly	MSCS	12/22/23		33,044		(842)
Grand City Properties	Euro STR - 0.30%	Monthly	JPHQ	1/30/24		83,996	EUR	2,910
Granges AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		695,776	SEK	(5,747)
Great Portland Estates PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		261,824	GBP	(9,412)
Greatland Gold PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		162,697	GBP	21,574
Grenergy Renovables SA	1-Day EONIA - 1.75%	Monthly	MSCS	12/01/23		92,680	EUR	2,676
Grifols SA	1-Day EONIA - 0.35%	Monthly	MSCS	7/17/23		140,631	EUR	10,741
Groupe SEB	1-Day EONIA - 0.30%	Monthly	MSCS	8/30/23		182,026	EUR	(126,404)
Groupe Bruxelles Lambert NV	Euro STR - 0.30%	Monthly	JPHQ	7/12/23		175,973	EUR	(8,326)
Gruppo MutuiOnline SpA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		70,409	EUR	(15,102)
Gurit	Euro STR - 1.20%	Monthly	JPHQ	7/17/23		33,253	CHF	(1,423)
GVS	Euro STR - 0.30%	Monthly	JPHQ	7/13/23		133,727	EUR	(14,117)
Gym Group PLC (The)	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		79,310	GBP	21,344
Halfords Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	10/11/23		148,205	GBP	(26,289)
Halma PLC	1-Day SONIA - 0.30%	Monthly	MSCS	10/27/23		68,746	GBP	894
Hamborner REIT AG	Euro STR - 0.30%	Monthly	JPHQ	9/27/23		75,734	EUR	(609)
Hansa Biopharma AB	1-Week STIBOR - 1.00%	Monthly	SEBA	7/17/23		367,769	SEK	2,167
Hektas	1-Day FEDEF - 15.00%	Monthly	MSCS	7/17/23		5,591		(190,812)
Helios Towers PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		127,431	GBP	15,967
Henry Boot PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		25,828	GBP	3,745
Hera	Euro STR - 0.30%	Monthly	JPHQ	11/27/23		152,036	EUR	9,233
Herbalife Nutrition Ltd.	1-Day FEDEF - 0.20%	Monthly	BOFA	2/16/24		90,661		–
Hexagon Composites ASA	1-Week NIBOR - 0.28%	Monthly	SEBA	7/17/23		939,694	NOK	(34,323)
Hexagon Purus ASA	1-Week NIBOR - 3.00%	Monthly	SEBA	8/28/23		419,902	NOK	(20,870)
HIAG Immobilien Holding AG	1-Day SARON - 0.35%	Monthly	JPHQ	7/17/23		39,511	CHF	109
Hill & Smith Holdings PLC	1-Day SONIA - 0.30%	Monthly	MSCS	8/17/23		134,749	GBP	(44,752)
Hiscox Ltd. ORD	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		148,954	GBP	(45,644)
Horizonte Minerals PLC	1-Day SONIA - 11.00%	Monthly	MSCS	8/10/23		15,764	GBP	(6,337)
Hufvudstaden AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/12/23		588,157	SEK	(10,226)
Huhtamaki OYJ	Euro STR - 0.28%	Monthly	SEBA	7/13/23		99,536	EUR	7,674
Husqvarna AB	1-Week STIBOR - 0.28%	Monthly	SEBA	11/01/23		1,341,364	SEK	(44,053)
Hypoport SE	1-Day SABOR - 0.75%	Monthly	JPHQ	9/27/23		138,896	EUR	(31,578)
Icade SA	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		145,262	EUR	(25,610)
Idorsia	Euro STR - 6.50%	Monthly	JPHQ	7/17/23		106,836	CHF	15,735
IMAX	1-Day FEDEF - 0.20%	Monthly	BOFA	2/02/24		153,218		519
IMCD Group NV	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		40,289	EUR	(5,086)
IMI PLC	1-Day SONIA - 0.30%	Monthly	MSCS	10/26/23		58,918	GBP	(11,947)
Infrastrutture Wireless Italiane SpA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		136,246	EUR	(15,936)
InPost SA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		211,835	EUR	(35,992)
Instone Real Estate Group SE	Euro STR - 0.70%	Monthly	JPHQ	8/21/23		55,976	EUR	(5,509)
Integra LifeSciences Holdings Corp.	1-Day FEDEF - 0.70%	Monthly	BOFA	2/16/24		286,380		(862)
IntegraFin Holdings PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		115,661	GBP	(17,995)
Intercontinental Exchange Inc.	1-Day FEDEF - 0.35%	Monthly	MSCS	2/19/24		100,240		4,222
International Distributions SE	1-Day SONIA - 0.30%	Monthly	MSCS	1/17/24		72,520	GBP	(4,292)
Interparfums SA	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		95,960	EUR	(36,990)
Interroll Group	1-Day SARON - 0.35%	Monthly	JPHQ	10/26/23		121,843	CHF	(44,524)
Intertek Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	8/31/23		127,288	GBP	(6,479)
Investor AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/14/23		2,484,075	SEK	(42,432)
INVISIO AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		559,023	SEK	(29,079)
IQE PLC	1-Day SONIA - 1.25%	Monthly	MSCS	7/17/23		119,583	GBP	(28,617)
Italian Wine Brands SpA	Euro STR - 1.30%	Monthly	JPHQ	7/17/23		27,779	EUR	(103)
Italtile Ltd.	1-Day SABOR - 0.63%	Monthly	MSCS	8/08/23		248,472	ZAR	822

85

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts – Shortc (continued)
ITV PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		83,856	GBP	$                    (34,478)
James Halstead PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		33,773	GBP	1,668
JCDecaux SA	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		149,201	EUR	(58,323)
Jenoptik AG NA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		187,821	EUR	(70,464)
JM AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		2,598,815	SEK	(64,782)
John Wood Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		116,048	GBP	(65,830)
Johnson Service Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		33,313	GBP	(6,654)
JTC PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		208,382	GBP	(46,994)
Jupiter Fund Management PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		151,450	GBP	(36,720)
Just Eat Takeaway.com NV	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		120,617	EUR	4,650
Juventus FC SpA	Euro STR - 3.20%	Monthly	JPHQ	9/01/23		17,160	EUR	(1,627)
Kahoot! ASA	1-Week NIBOR - 3.50%	Monthly	SEBA	7/17/23		669,350	NOK	3,232
Kambi Group PLC	1-Week STIBOR - 0.75%	Monthly	SEBA	10/11/23		1,471,722	SEK	(14,199)
Kardex	Euro STR - 0.35%	Monthly	JPHQ	7/17/23		72,018	CHF	(4,536)
Karnov Group AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		570,682	SEK	5,200
KBC Groep NV	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		169,673	EUR	(56,880)
Kempower OYJ	Euro STR - 3.75%	Monthly	SEBA	7/17/23		29,546	EUR	(31,287)
Kerry Group PLC	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		128,832	EUR	5,327
Kety SA	1-Day FEDEF - 1.00%	Monthly	MSCS	7/17/23		64,028		(720)
KGHM Polska Miedz SA	1-Day FEDEF - 0.50%	Monthly	MSCS	8/18/23		145,088		(51,476)
Kingspan Group PLC	1-Day EONIA - 0.30%	Monthly	MSCS	12/07/23		91,268	EUR	(12,304)
Kinnevik AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		710,053	SEK	(4,246)
Kloeckner + Co SE NA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		280,338	EUR	(50,274)
Koninklijke DSM NV	Euro STR - 0.30%	Monthly	JPHQ	8/28/23		118,798	EUR	3,768
Koninklijke Philips NV	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		129,386	EUR	(18,024)
Landis+Gyr Group AG	1-Day SARON - 0.35%	Monthly	JPHQ	1/23/24		199,372	CHF	(6,581)
Lanxess AG	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		259,589	EUR	(51,652)
LEG Immobilien AG	Euro STR - 0.30%	Monthly	JPHQ	8/21/23		154,151	EUR	(1,162)
Legrand France SA	1-Day EONIA - 0.30%	Monthly	MSCS	8/09/23		52,491	EUR	(5,791)
Lenzing AG	Euro STR - 0.30%	Monthly	JPHQ	7/14/23		222,163	EUR	(7,833)
Liberty Media Corp.	1-Day FEDEF - 0.20%	Monthly	BOFA	2/01/24		387,223		991
Liberty Media Corp.	1-Day FEDEF - 0.20%	Monthly	BOFA	2/01/24		838,933		2,525
Liberty Media Corp.	1-Day FEDEF - 0.20%	Monthly	BOFA	2/01/24		95,112		242
Life Healthcare Group Holdings Ltd.	1-Day SABOR - 0.50%	Monthly	MSCS	1/29/24		2,495,139	ZAR	(19,066)
Linea Directa Aseguradora SA	1-Day EONIA - 0.35%	Monthly	MSCS	7/17/23		163,074	EUR	23,938
LISI	1-Day EONIA - 0.42%	Monthly	MSCS	2/19/24		32,656	EUR	(2,966)
Livent Corp.	1-Day FEDEF - 0.20%	Monthly	BOFA	2/05/24		1,316,600		4,189
London Stock Exchange Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		170,444	GBP	9,226
L'Oreal SA	1-Day EONIA - 0.30%	Monthly	MSCS	8/09/23		65,934	EUR	(4,022)
Lotus Bakeries NV	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		189,090	EUR	(14,560)
Luceco PLC	1-Day SONIA - 0.35%	Monthly	MSCS	2/19/24		8,136	GBP	(102)
Lumentum Holdings	1-Day FEDEF - 0.20%	Monthly	BOFA	2/08/24		228,531		537
LU-VE SpA	Euro STR - 0.30%	Monthly	JPHQ	8/07/23		31,081	EUR	(13,542)
Luzerner Kantonalbank AG	1-Day SARON - 0.35%	Monthly	JPHQ	12/22/23		51,244	CHF	(289)
M&T Bank Corp.	1-Day FEDEF - 0.35%	Monthly	MSCS	12/29/23		48,926		(2,166)
Magnora ASA	1-Week NIBOR - 7.00%	Monthly	SEBA	7/17/23		292,810	NOK	(4,489)
Marel	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		14,422	EUR	(2,573)
Marlowe PLC	1-Day SONIA - 0.30%	Monthly	MSCS	9/01/23		112,463	GBP	19,755
MaxLinear	1-Day FEDEF - 0.20%	Monthly	BOFA	1/29/24		159,282		527
mBank SA	1-Day FEDEF - 0.50%	Monthly	MSCS	7/14/23		184,274		(135,201)
Medacta Group SA	Euro STR - 0.35%	Monthly	JPHQ	7/17/23		111,815	CHF	(9,231)
Medartis AG	1-Day SARON - 0.85%	Monthly	JPHQ	7/17/23		40,205	CHF	7,054
Medicover AB	1-Week STIBOR - 0.28%	Monthly	SEBA	9/08/23		843,164	SEK	(27,814)
Melia Hotels International	1-Day EONIA - 0.35%	Monthly	MSCS	7/17/23		109,375	EUR	(10,216)
Mercedes-Benz Group AG	1-Day EONIA - 0.40%	Monthly	MSCS	12/13/23		492,627	EUR	(1,757)
Meyer Burger AG	1-Day SARON - 0.95%	Monthly	JPHQ	7/14/23		182,858	CHF	(162,527)
Michelin	1-Day EONIA - 0.30%	Monthly	MSCS	12/11/23		33,540	EUR	(4,639)
Millennium	1-Day FEDEF - 0.50%	Monthly	MSCS	7/17/23		144,090		(65,197)
Mips AB	1-Week STIBOR - 0.28%	Monthly	SEBA	9/20/23		2,034,806	SEK	(75,972)

86

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts – Shortc (continued)
Mobimo Holdings AG	1-Day SARON - 0.35%	Monthly	JPHQ	1/23/24		179,324	CHF	$                        1,089
MoneyGram International Inc.	1-Day FEDEF - 0.35%	Monthly	MSCO	2/06/24		557,663		(43,147)
Montana	Euro STR - 0.35%	Monthly	JPHQ	7/17/23		79,640	CHF	(1,612)
Morgan Stanley MSPSARKK Index	1-Day FEDEF - 0.46%	Monthly	MSCO	9/21/23		900,498		(6,195)
Morgan Stanley MSPSEGRL Index	1-Day SONIA - 1.50%	Monthly	MSCO	11/01/23		203,207	GBP	(27,011)
Morgan Stanley MSPSENTH Index	1-Day SONIA - 0.45%	Monthly	MSCO	11/01/23		197,048	GBP	(31,395)
Morgan Stanley MSPSGDXJ Index	1-Day FEDEF - 2.05%	Monthly	MSCO	6/19/23		773,886		40,545
Morgan Stanley MSPSIWM Index	1-Day FEDEF - 0.45%	Monthly	MSCS	9/21/23		2,288,058		(20,863)
Morgan Stanley MSPSKRE Index	1-Day FEDEF - 0.35%	Monthly	MSCO	9/21/23		423,787		5,726
Mr Price Group Ltd.	1-Day SABOR - 0.50%	Monthly	MSCS	8/30/23		3,728,952	ZAR	26,056
National Grid PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		98,088	GBP	1,210
NCC Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/13/23		27,416	GBP	3,244
Nel ASA	1-Week NIBOR - 7.00%	Monthly	SEBA	7/17/23		761,821	NOK	(458)
Neoen	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		121,838	EUR	16,601
Neste Corp.	Euro STR - 0.28%	Monthly	SEBA	7/17/23		150,426	EUR	(8,171)
Nestle SA	1-Day SARON - 0.35%	Monthly	JPHQ	11/27/23		51,484	CHF	3,197
New York Community Bancorp	1-Day FEDEF - 0.35%	Monthly	MSCS	12/29/23		48,206		441
Nexi SpA	Euro STR - 0.30%	Monthly	JPHQ	10/13/23		112,320	EUR	17,849
Nibe Industrier AB	1-Week STIBOR - 0.28%	Monthly	SEBA	8/11/23		809,180	SEK	(11,150)
Nokian Tyres PLC	Euro STR - 0.28%	Monthly	SEBA	8/23/23		46,951	EUR	10,038
Nolato AB	1-Week STIBOR - 0.28%	Monthly	SEBA	9/26/23		332,977	SEK	2,914
Nordex SE	Euro STR - 0.95%	Monthly	JPHQ	8/21/23		183,433	EUR	(64,630)
Nordnet AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		777,165	SEK	(41,103)
NP3 Fastigheter AB	1-Week STIBOR - 0.28%	Monthly	SEBA	1/24/24		331,655	SEK	2,798
NX Filtration NV	Euro STR - 2.65%	Monthly	JPHQ	8/07/23		19,952	EUR	(2,569)
Obrascon Huarte Lain SA	1-Day EONIA - 0.35%	Monthly	MSCS	9/01/23		120,250	EUR	5,299
Ocado Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		132,655	GBP	17,414
Oesterreichische Post AG	Euro STR - 3.80%	Monthly	JPHQ	8/23/23		117,727	EUR	(11,628)
Orange	1-Day EONIA - 0.30%	Monthly	MSCS	11/27/23		52,107	EUR	(5,894)
Oxford BioMedica PLC	1-Day SONIA - 0.30%	Monthly	MSCS	9/26/23		80,969	GBP	(52,801)
Palfinger AG	Euro STR - 0.30%	Monthly	JPHQ	7/12/23		104,052	EUR	(31,381)
Palo Alto Networks Inc.	1-Day FEDEF - 0.20%	Monthly	BOFA	2/02/24		2,109,744		5,618
Parsons Corp.	1-Day FEDEF - 0.20%	Monthly	BOFA	2/09/24		706,826		1,762
Peab AB	1-Week STIBOR - 0.28%	Monthly	SEBA	2/22/24		847,223	SEK	(1,097)
Pennon Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		109,507	GBP	9,905
Pepkor	1-Day SABOR - 0.50%	Monthly	MSCS	10/10/23		2,701,611	ZAR	11,766
Pernod Ricard	1-Day EONIA - 0.30%	Monthly	MSCS	11/27/23		51,895	EUR	(2,616)
Persimmon PLC	1-Day SONIA - 0.30%	Monthly	MSCS	8/18/23		212,115	GBP	(4,035)
Petrofac Ltd.	1-Day SONIA - 0.30%	Monthly	MSCS	9/01/23		161,649	GBP	56,118
Pharmanutra SpA	Euro STR - 0.30%	Monthly	JPHQ	1/10/24		19,646	EUR	990
Phoenix Group Holdings PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		209,299	GBP	(21,418)
Pick n Pay Group (The)	1-Day SABOR - 0.50%	Monthly	MSCS	12/22/23		650,955	ZAR	7,596
Picton Property Income Ltd.	1-Day SONIA - 0.30%	Monthly	MSCS	8/24/23		96,639	GBP	11,575
PNE AG	Euro STR - 0.70%	Monthly	JPHQ	7/13/23		105,040	EUR	23,141
Polar Capital Holdings PLC	1-Day SONIA - 0.77%	Monthly	MSCS	7/17/23		116,315	GBP	(29,367)
Polypeptide	1-Day SARON - 0.35%	Monthly	JPHQ	9/18/23		118,054	CHF	8,460
PostNL	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		115,451	EUR	6,015
PowerCell Sweden AB	1-Week STIBOR - 1.00%	Monthly	SEBA	7/17/23		246,164	SEK	1,462
Progress Software Corp.	1-Day FEDEF - 0.20%	Monthly	BOFA	2/05/24		312,761		(105)
PRS REIT PLC (The)	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		83,000	GBP	(107)
Prudential PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/14/23		164,676	GBP	(63,389)
Rathbones Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	8/31/23		211,287	GBP	(36,178)
Ratos AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		764,526	SEK	(1,097)
Re:NewCell AB	1-Week STIBOR - 1.75%	Monthly	SEBA	7/17/23		841,740	SEK	2,465
Reckitt Benckiser Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		145,534	GBP	5,303
Recticel	Euro STR - 0.30%	Monthly	JPHQ	11/21/23		80,548	EUR	(12,439)
RELX PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		90,418	GBP	(9,085)
Remy Cointreau	1-Day EONIA - 0.30%	Monthly	MSCS	12/11/23		238,029	EUR	(5,610)
Renishaw PLC	1-Day SONIA - 0.30%	Monthly	MSCS	2/13/24		114,476	GBP	(2,097)
Restore PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/18/23		79,882	GBP	26,154

87

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts – Shortc (continued)
RHI Magnesita NV	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		181,926	GBP	$                    (84,297)
Rieter	Euro STR - 0.35%	Monthly	JPHQ	7/24/23		64,165	CHF	(6,643)
Ringkjoebing Landbobank A/S	1-Week CIBOR - 0.28%	Monthly	SEBA	7/17/23		1,017,697	DKK	(70,507)
Ritchie Bros Auctioneers	1-Day FEDEF - 0.20%	Monthly	BOFA	2/14/24		1,470,955		(418)
Robertet	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		32,685	EUR	(1,196)
Rotork PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		86,821	GBP	(38,465)
Royal Unibrew	1-Week CIBOR - 0.28%	Monthly	SEBA	11/27/23		1,963,470	DKK	1,773
RTL Group	Euro STR - 0.30%	Monthly	JPHQ	1/30/24		120,015	EUR	(2,590)
RVRC Holding	1-Week STIBOR - 0.28%	Monthly	SEBA	10/11/23		1,048,569	SEK	(21,287)
S4 Capital PLC	1-Day SONIA - 0.30%	Monthly	MSCS	8/24/23		100,328	GBP	(63,182)
Sabaf SpA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		34,608	EUR	3,664
Sabre Insurance Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		54,626	GBP	1,018
Sacyr SA	1-Day EONIA - 0.35%	Monthly	MSCS	7/17/23		230,883	EUR	(104,777)
Saga PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		107,547	GBP	(22,827)
Saipem SpA	1-Month EURIBOR - 6.65%	Monthly	JPHQ	2/26/24		70,915	EUR	(2,241)
Salcef Group SpA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		141,462	EUR	(8,759)
Salmon Evolution ASA	1-Week NIBOR - 8.50%	Monthly	SEBA	7/12/23		1,386,274	NOK	6,739
Salvatore Ferragamo SpA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		94,189	EUR	(2,547)
Salzgitter AG	Euro STR - 0.30%	Monthly	JPHQ	11/01/23		20,655	EUR	(12,218)
Samsung SDI Co. Ltd.	1-Day FEDEF - 0.50%	Monthly	MSCO	7/11/23		841,565		59,769
Sandvik AB	1-Week STIBOR - 0.28%	Monthly	SEBA	11/27/23		431,510	SEK	(4,858)
Sanlam Ltd.	1-Day SABOR - 0.50%	Monthly	MSCS	7/17/23		1,063,866	ZAR	(5,964)
Sanoma Corp.	Euro STR - 0.28%	Monthly	SEBA	7/17/23		91,441	EUR	33,236
Santam Ltd.	1-Day SABOR - 0.50%	Monthly	MSCS	7/17/23		1,550,455	ZAR	(15,918)
Santander Bank Polska SA	1-Day FEDEF - 0.50%	Monthly	MSCS	7/17/23		91,315		(41,934)
SBM Offshore NV	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		180,894	EUR	5,916
Schibsted ASA	1-Week NIBOR - 0.28%	Monthly	SEBA	7/17/23		1,410,190	NOK	(48,241)
Schoeller-Bleckmann Oilfield Equipment AG	Euro STR - 0.30%	Monthly	JPHQ	7/13/23		100,389	EUR	(11,572)
Schouw & Co. A/S	1-Week CIBOR - 0.28%	Monthly	SEBA	7/17/23		582,855	DKK	(13,420)
Schweiter Technologies AG	1-Day SARON - 0.35%	Monthly	JPHQ	7/17/23		141,303	CHF	(19,825)
Sdiptech AB	1-Week STIBOR - 1.00%	Monthly	SEBA	7/17/23		1,191,392	SEK	(20,308)
secunet Security Networks AG	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		81,430	EUR	(12,331)
Seeing Machines Ltd.	1-Day SONIA - 5.75%	Monthly	MSCS	8/04/23		38,098	GBP	(15,627)
Segro PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		53,777	GBP	11,295
SFC Energy AG	Euro STR - 7.00%	Monthly	JPHQ	7/17/23		18,854	EUR	(2,747)
Shoprite Holdings Ltd.	1-Day SABOR - 0.50%	Monthly	MSCS	7/17/23		2,223,319	ZAR	(11,946)
Shurgard	Euro STR - 0.30%	Monthly	JPHQ	2/13/24		110,404	EUR	2,430
Siemens Healthineers AG	Euro STR - 0.30%	Monthly	JPHQ	8/21/23		78,823	EUR	(1,775)
SIG Group AG	Euro STR - 0.35%	Monthly	JPHQ	7/17/23		238,284	CHF	(27,556)
Signify Health	1-Day FEDEF - 0.35%	Monthly	MSCO	10/25/23		295,495		4,058
Signify Health	1-Day FEDEF - 0.35%	Monthly	BOFA	1/31/24		293,658		780
Sika	1-Day SARON - 0.35%	Monthly	JPHQ	11/08/23		118,442	CHF	(5,358)
SKAN AG	Euro STR - 0.35%	Monthly	JPHQ	7/17/23		156,074	CHF	(27,410)
Smart Metering Systems PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/12/23		228,837	GBP	1,335
Smith & Nephew PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		69,385	GBP	(6,534)
Software AG	Euro STR - 0.30%	Monthly	JPHQ	9/22/23		71,409	EUR	17,688
SoftwareONE	Euro STR - 0.35%	Monthly	JPHQ	7/13/23		18,618	CHF	(6,932)
Solaria Energia y Medio Ambiente SA	1-Day EONIA - 0.35%	Monthly	MSCS	7/17/23		87,952	EUR	12,775
SolGold PLC	1-Day SONIA - 0.56%	Monthly	MSCS	7/17/23		84,118	GBP	17,655
Soltec Power Holdings SA	1-Day EONIA - 0.73%	Monthly	MSCS	7/17/23		136,199	EUR	(39,545)
Southern Co.	1-Day FEDEF - 0.20%	Monthly	BOFA	2/24/24		63,060		13
Sparebank 1 Oestlandet	1-Week NIBOR - 0.28%	Monthly	SEBA	12/22/23		126,990	NOK	(658)
Sparebank Nord-Norge	1-Week NIBOR - 1.50%	Monthly	SEBA	9/20/23		353,696	NOK	(7,972)
Sparebank Nord-Norge	1-Week NIBOR - 1.50%	Monthly	SEBA	10/23/23		1,576,865	NOK	(21,061)
Spectris PLC	1-Day SONIA - 0.30%	Monthly	MSCS	8/17/23		122,030	GBP	(33,953)
Spinnova OYJ	Euro STR - 10.50%	Monthly	SEBA	8/08/23		31,719	EUR	3,799
St Galler Kantonalbank AG	1-Day SARON - 0.35%	Monthly	JPHQ	11/06/23		71,845	CHF	(4,769)
Steico SE	Euro STR - 0.95%	Monthly	JPHQ	2/09/24		80,742	EUR	(382)
Storytel AB	1-Week STIBOR - 7.50%	Monthly	SEBA	7/17/23		291,148	SEK	1,970

88

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts – Shortc (continued)
STOXX Europe 600 Utilities Index	1-Day EONIA - 0.45%	Monthly	MSCS	9/13/23		828,770	EUR	$                      (4,116)
Straumann Group	1-Day SARON - 0.35%	Monthly	JPHQ	10/18/23		166,268	CHF	(35,664)
Strix Group PLC	1-Day SONIA - 2.00%	Monthly	MSCS	7/17/23		41,242	GBP	14,627
Stroeer SE & Co. KGaA	Euro STR	Monthly	JPHQ	7/17/23		97,506	EUR	(4,148)
Super Group Ltd.	1-Day SABOR - 0.50%	Monthly	MSCS	7/19/23		1,696,000	ZAR	(25,551)
Supermarket Income REIT	1-Day SONIA - 0.28%	Monthly	MSCS	9/15/23		165,811	GBP	23,540
Svenska Cellulosa AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		1,846,158	SEK	(496)
Swedencare AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/13/23		1,068,605	SEK	48,584
Sword Group SE	1-Day EONIA - 4.00%	Monthly	MSCS	7/17/23		36,938	EUR	(6,032)
Symrise AG	Euro STR - 0.30%	Monthly	JPHQ	9/27/23		67,944	EUR	6,368
TAG Immobilien AG	Euro STR - 0.30%	Monthly	JPHQ	8/16/23		127,773	EUR	9,254
Talenom OYJ	Euro STR - 2.50%	Monthly	SEBA	7/17/23		46,849	EUR	10,297
Talgo SA	1-Day EONIA - 0.35%	Monthly	MSCS	7/17/23		117,967	EUR	(20,776)
Tamburi	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		209,583	EUR	(11,128)
Tate & Lyle PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		66,035	GBP	(2,614)
Technogym SpA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		171,009	EUR	(27,097)
Technoprobe	Euro STR - 0.30%	Monthly	JPHQ	10/16/23		45,136	EUR	6,160
Tecnicas Reunidas SA	1-Day EONIA - 3.13%	Monthly	MSCS	7/12/23		50,785	EUR	(28,679)
Telecom Italia	Euro STR - 0.75%	Monthly	JPHQ	7/14/23		159,851	EUR	(32,377)
Telefonica SA	1-Day EONIA - 0.35%	Monthly	MSCS	1/12/24		103,664	EUR	(3,259)
Tenaris SA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		147,211	EUR	7,358
Thermador Groupe SA	1-Day EONIA - 2.25%	Monthly	MSCS	8/16/23		33,742	EUR	(8,929)
Thule Group AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		2,532,559	SEK	(3,355)
Tinexta SpA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		238,610	EUR	(28,036)
Tomra Systems ASA	1-Week NIBOR - 0.28%	Monthly	SEBA	1/08/24		461,510	NOK	3,890
Topdanmark A/S	1-Week CIBOR - 0.28%	Monthly	SEBA	7/26/23		1,666,789	DKK	(12,285)
Tower Semiconductor Ltd.	1-Day FEDEF - 0.35%	Monthly	MSCO	7/07/23		385,210		42,873
Transaction Capital Ltd.	1-Day SABOR - 0.50%	Monthly	MSCS	7/17/23		5,622,798	ZAR	25,857
Transocean Ltd.	1-Day FEDEF - 0.20%	Monthly	BOFA	2/01/24		1,171,000		3,125
Traton SE	Euro STR - 0.80%	Monthly	JPHQ	7/17/23		69,908	EUR	(4,759)
Treatt PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		154,942	GBP	40,850
Trigano	1-Day EONIA - 0.30%	Monthly	MSCS	8/09/23		49,771	EUR	(660)
Tritax EuroBox PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		88,196	GBP	21,511
Trustpilot Group PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		114,610	GBP	(59,619)
Tryg A/S	1-Week CIBOR - 0.28%	Monthly	SEBA	7/13/23		2,170,197	DKK	5,878
Tubacex SA	1-Day EONIA - 1.63%	Monthly	MSCS	7/17/23		79,848	EUR	(17,251)
Turkiye Sinai Kalkinma Bankasi AS	1-Day FEDEF - 2.00%	Monthly	MSCS	1/23/24		49,373		7,997
Tyler Technologies Inc.	SOFR - 0.35%	Monthly	GSCO	3/01/24		279,049		(1,601)
U.S. Cellular	1-Day FEDEF - 0.20%	Monthly	BOFA	2/10/24		361,950		484
U.S. Steel	SOFR - 0.35%	Monthly	GSCO	2/23/24		1,490,691		(108,777)
Unilever	1-Day SONIA - 0.30%	Monthly	MSCS	10/16/23		131,446	GBP	(8,206)
UnipolSai	Euro STR - 0.30%	Monthly	JPHQ	11/27/23		88,015	EUR	(520)
United Utilities	1-Day SONIA - 0.30%	Monthly	MSCS	11/27/23		36,336	GBP	1,202
UPM Kymmene Corp.	Euro STR - 0.28%	Monthly	SEBA	7/17/23		231,980	EUR	(36,801)
Urban Logistics REIT PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		137,358	GBP	10,852
Valley National Bancorp	1-Day FEDEF - 0.35%	Monthly	MSCS	12/29/23		47,405		(1,338)
Vallourec	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		144,369	EUR	(71,941)
Valmet OYJ	Euro STR - 0.28%	Monthly	SEBA	11/22/23		84,804	EUR	(22,372)
Veolia Environnement SA	1-Day EONIA - 0.30%	Monthly	MSCS	8/30/23		33,313	EUR	(10,532)
Veradigm Inc.	1-Day FEDEF - 0.20%	Monthly	BOFA	2/08/24		548,130		1,398
Vestas Wind Systems A/S	1-Week CIBOR - 0.28%	Monthly	SEBA	7/12/23		1,328,311	DKK	(40,152)
Vestel	1-Day FEDEF - 7.63%	Monthly	MSCS	9/08/23		88,881		(54,606)
VGP NV	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		148,184	EUR	(16,198)
Viaplay Group AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		2,975,245	SEK	(52,656)
Vicat SA	1-Day EONIA - 0.30%	Monthly	MSCS	8/08/23		134,464	EUR	(32,032)
Victrex PLC	1-Day SONIA - 0.30%	Monthly	MSCS	7/17/23		24,907	GBP	(43)
Vidrala SA	1-Day EONIA - 0.35%	Monthly	MSCS	9/29/23		153,839	EUR	(121,459)
Vienna Insurance Group AG	Euro STR - 0.30%	Monthly	JPHQ	12/18/23		77,887	EUR	(16,889)
Vivendi	1-Day EONIA - 0.30%	Monthly	MSCS	12/11/23		167,732	EUR	(7,919)
Vodacom Group Ltd.	1-Day SABOR - 0.75%	Monthly	MSCS	7/13/23		643,996	ZAR	2,214

89

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

Total Return Swap Contracts (continued)

								Value/Unrealized
		Payment	Counter-	Maturity	Notional			Appreciation
Underlying Instrument	Financing Rate	Frequency	party	Date	Value*			(Depreciation)
OTC Swap Contracts (continued)
Equity Contracts – Shortc (continued)
Volex PLC	1-Day SONIA - 0.30%	Monthly	MSCS	9/01/23		77,339	GBP	$	14,331
Volkswagen AG	1-Day EONIA - 0.40%	Monthly	MSCS	12/13/23		310,423	EUR		4,771
Voltalia SA	1-Day EONIA - 0.30%	Monthly	MSCS	7/17/23		112,866	EUR		(10,854)
Vonovia SE	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		73,456	EUR		(3,647)
Waga Energy SA	1-Day EONIA - 0.75%	Monthly	MSCS	7/17/23		39,543	EUR		5,786
Warehouse REIT PLC	1-Day SONIA - 1.38%	Monthly	MSCS	7/17/23		73,549	GBP		21,067
Weir Group PLC	1-Day SONIA - 0.76%	Monthly	MSCS	2/19/24		88,895	GBP		(1,576)
Westwing Group SE	Euro STR - 2.55%	Monthly	JPHQ	7/17/23		28,133	EUR		(5,387)
Wiit SpA	Euro STR - 0.70%	Monthly	JPHQ	7/31/23		107,747	EUR		(30,307)
Wizz Air Holdings PLC	1-Day SONIA - 0.30%	Monthly	MSCS	12/19/23		154,796	GBP		(24,056)
Wolfspeed Inc.	SOFR - 0.35%	Monthly	GSCO	2/23/24		308,977			(820)
XP Power Ltd.	1-Day SONIA - 0.30%	Monthly	MSCS	8/31/23		129,037	GBP		(37,420)
Xvivo Perfusion AB	1-Week STIBOR - 0.28%	Monthly	SEBA	7/17/23		505,387	SEK		(2,158)
Ypsomed Holding AG	1-Day SARON - 0.35%	Monthly	JPHQ	7/17/23		113,378	CHF		(12,164)
Zignago Vetro SpA	Euro STR - 0.30%	Monthly	JPHQ	7/17/23		96,823	EUR		(33,613)
									(5,611,413)
Total - Total Return Swap Contracts								$	(1,319,032)

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

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

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

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

90

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Alternative Strategies Fund (continued)

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

91

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Schedule of Investments, February 28, 2023 (unaudited)

K2 Long Short Credit Fund

	Country		Shares/ Warrants/ Rights		Value
Common Stocks and Other Equity Interests 1.0%
Aerospace & Defense 0.0%†
aSatellogic Inc., 1/25/27, wts.		United States		603	$	147
Communications Equipment 0.0%†
aRiverbed Technology Inc.		United States		3,479		887
Diversified Financial Services 0.2%
aAequi Acquisition Corp., A, 11/30/27, wts.		United States		146		15
aAfrican Gold Acquisition Corp., A, 3/13/28, wts.		United States		1,393		—
aAgile Growth Corp., A, 12/31/27, wts.		United States		382		1
aBlue Whale Acquisition Corp. I, A, 7/09/23, wts.		United Arab Emirates		297		55
aCrystal Peak Acquisition, A		Netherlands		1,993		19,930
aCrystal Peak Acquisition, A, 6/22/26, wts.		Netherlands		802		401
aDHC Acquisition Corp., A, 12/31/27, wts.		United States		71		3
aElliott Opportunity II Corp., A, 3/02/26, wts.		United States		333		49
aFast Acquisition Corp. II, A, 3/16/26, wts.		United States		53		15
aForum Merger IV Corp., A, 12/31/27, wts.		United States		206		41
aFusion Acquisition Corp. II, A, 12/31/27, wts.		United States		318		13
aGrowth For Good Acquisition Corp., Contingent Value, rts., 6/14/23		United States		1,518		118
aHedosophia European Growth		United Kingdom		1,142		11,837
aJackson Acquisition Co., A, 12/31/28, wts.		United States		880		14
aLandcadia Holdings IV Inc., A, 3/29/28, wts.		United States		343		63
aLDH Growth Corp. I, A, 12/31/28, wts.		United States		28		1
aLead Edge Growth Opportunities Ltd., A, 12/31/28, wts.		United States		344		8
aObotech Acquisition SE, A		Luxembourg		1,240		12,984
aObotech Acquisition SE, A, 4/30/26, wts.		Luxembourg		413		44
aPegasus Acquisition Co. Europe BV, A		Netherlands		1,768		18,326
aSouthport Acquisition Corp., 5/24/28, wts.		United States		1,466		50
aSpree Acquisition Corp. 1 Ltd., 12/22/28, wts.		Israel		909		50
aTarget Global Acquisition I Corp., A, 12/31/27, wts.		Israel		1,043		125
aTeract SA, 11/16/25, wts.		France		1,165		74
aTwin Ridge Capital Acquisition Corp., A		United States		2,202		22,460
aZimmer Energy Transition Acquisition Corp., A, 5/14/23, wts.		United States		703		129
						86,806
Hotels, Restaurants & Leisure 0.0%†
aHomeToGo SE, 12/31/25, wts.		Luxembourg		210		—
Independent Power & Renewable Electricity Producers 0.4%
Clearway Energy Inc., A		United States		6,911		205,326
Oil, Gas & Consumable Fuels 0.4%
aBighorn Permian Resources LLC		United States		1,346		34,996
Targa Resources Corp.		United States		2,078		153,980
						188,976
Professional Services 0.0%†
a,b,cAcosta Inc.		United States		923		7,569
Specialty Retail 0.0%†
aCarvana Co., A		United States		1		9
Total Common Stocks and Other Equity Interests
(Cost $514,303)						489,720

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

92

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

	Country		Shares/ Warrants			Value
Convertible Preferred Stocks (Cost $50,262) 0.1%
Professional Services 0.1%
b,cAcosta Inc., cvt. pfd.		United States		1,145		$	50,266
Preferred Stocks 0.0%†
Communications Equipment 0.0%†
aRiverbed Technology Inc., pfd., A		United States		2,381			607
Thrifts & Mortgage Finance 0.0%†
FHLMC, 8.375%, pfd., Z		United States		2,420			5,131
FNMA, 8.25%, pfd., S		United States		4,475			10,024
							15,155
Total Preferred Stocks (Cost $87,500)							15,762
				Principal Amount*
Convertible Bonds 1.1%
Airlines 0.3%
dAir France-KLM, senior note, Reg S, 0.125%, 3/25/26		France		9,222	EUR		166,833
Diversified Financial Services 0.1%
Lendingtree Inc., senior note, 0.50%, 7/15/25		United States		62,000			48,980
Internet & Direct Marketing Retail 0.1%
The Realreal Inc., senior note, 1.00%, 3/01/28		United States		55,000			21,109
Leisure Products 0.1%
Peloton Interactive Inc., senior note, zero cpn., 2/15/26		United States		52,000			40,811
Real Estate Management & Development 0.5%
dOpendoor Technologies Inc., senior note, 144A, 0.25%, 8/15/26		United States		233,000			109,379
Realogy Group LLC / Realogy Co.-Issuer Corp., senior note,
0.25%, 6/15/26		United States		122,000			85,583
Redfin Corp., senior note,
0.50%, 4/01/27		United States		76,000			46,465
zero cpn., 10/15/25		United States		18,000			12,960
							254,387
Total Convertible Bonds (Cost $564,485)							532,120
Corporate Bonds and Notes 23.9%
Airlines 0.1%
dAllegiant Travel Co., senior secured note, 144A, 7.25%, 8/15/27		United States		42,000			41,303
Automobiles 1.6%
dAston Martin Capital Holdings Ltd., senior secured note, 144A,
10.50%, 11/30/25		United Kingdom		400,000			399,474
Ford Motor Credit Co. LLC, senior note, 5.125%, 6/16/25		United States		348,000			336,342
dFrontier Communications Holdings LLC, senior secured note,
144A, 8.75%, 5/15/30		United States		66,000			66,802
							802,618
Capital Markets 0.2%
Blackstone Private Credit Fund, senior note,
2.625%, 12/15/26		United States		58,000			49,304
3.25%, 3/15/27		United States		57,000			49,126
							98,430

93

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

	Country		Principal     Amount*			Value
Corporate Bonds and Notes (continued)
Chemicals 0.5%
dPolar US Borrower LLC / Schenectady International Group Inc.,
senior note, 144A, 6.75%, 5/15/26		United States		500,000		$	234,872
Construction Materials 0.6%
dSRM Escrow Issuer LLC, senior secured note, 144A, 6.00%,
11/01/28		United States		354,000			314,587
Diversified Consumer Services 0.1%
dThe Hertz Corp., senior note, 144A, 4.625%, 12/01/26		United States		80,000			71,330
Diversified Financial Services 2.1%
dAthenahealth Group Inc., senior note, 144A, 6.50%, 2/15/30		United States		402,000			318,466
dJane Street Group / JSG Finance Inc., senior secured note, 144A,
4.50%, 11/15/29		United States		463,000			406,894
dVistajet Malta Finance PLC / XO Management Holding Inc.,
senior note, 144A, 6.375%, 2/01/30		Switzerland		355,000			311,207
							1,036,567
Diversified Telecommunication Services 1.5%
dAltice France Holding SA, senior secured note, 144A, 10.50%,
5/15/27		Luxembourg		200,000			165,366
dLevel 3 Financing Inc., senior note, 144A, 4.625%, 9/15/27		United States		332,000			248,475
dLorca Telecom Bondco SA, senior secured note, Reg S, 4.00%,
9/18/27		Spain		100,000	EUR		95,600
dVMED O2 UK Financing I PLC, senior secured bond, Reg S,
4.50%, 7/15/31		United Kingdom		248,000	GBP		234,917
							744,358
Electric Utilities 0.9%
dEP Infrastructure AS, senior note, Reg S, 1.698%, 7/30/26		Czech Republic		100,000	EUR		87,128
dEskom Holdings SOC Ltd., senior bond, Reg S, 6.75%, 8/06/23		South Africa		252,000			251,055
Pacific Gas and Electric Co., secured bond,
4.95%, 7/01/50		United States		84,557			66,912
3.50%, 8/01/50		United States		63,000			39,656
							444,751
Energy Equipment & Services 0.5%
dSolaris Midstream Holdings LLC, senior note, 144A, 7.625%,
4/01/26		United States		264,000			260,987
Equity Real Estate Investment Trusts (REITs) 0.1%
dVici Properties LP / Vici Note Co. Inc., senior bond, 144A,
4.125%, 8/15/30		United States		83,000			71,769
Food & Staples Retailing 0.7%
dChobani LLC / Chobani Finance Corp. Inc., senior note, 144A,
7.50%, 4/15/25		United States		383,000			373,502
Gas Utilities 0.2%
dEustream AS, senior note, Reg S, 1.625%, 6/25/27		Slovak Republic		100,000	EUR		76,459
Health Care Providers & Services 0.4%
dRP Escrow Issuer LLC, senior secured note, 144A, 5.25%,
12/15/25		United States		283,000			221,477
Health Care Technology 0.2%
d,eCloud Software Group Holdings Inc., senior secured note, 144A,
6.50%, 3/31/29		United States		138,000			119,683
Hotels, Restaurants & Leisure 1.2%
dCarnival Corp., 144A,
senior note, 6.00%, 5/01/29		United States		108,000			84,240
senior secured note, 9.875%, 8/01/27		United States		68,000			69,297

94

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

	Country		Principal     Amount*			Value
Corporate Bonds and Notes (continued)
Hotels, Restaurants & Leisure (continued)
dCarnival Corp., 144A, (continued) senior secured note, 4.00%, 8/01/28		United States		63,000		$	53,324
dCarnival Holdings Bermuda Ltd., senior note, 144A, 10.375%, 5/01/28		United States		191,000			204,542
dRoyal Caribbean Cruises Ltd., 144A, senior secured note, 8.25%, 1/15/29		United States		108,000			111,923
senior note, 9.25%, 1/15/29		United States		70,000			74,314
							597,640
Household Durables 1.4%
dK. Hovnanian Enterprises Inc., senior secured note, 144A,
e7.75%, 2/15/26		United States		446,000			434,685
10.50%, 2/15/26		United States		250,000			253,032
							687,717
Industrial Conglomerates 0.0%†
dApi Group de Inc., senior note, 144A, 4.75%, 10/15/29		United States		25,000			22,343
Internet & Direct Marketing Retail 0.6%
dProsus NV, Reg S,
senior bond, 1.985%, 7/13/33		China		127,000	EUR		93,344
senior bond, 2.778%, 1/19/34		China		100,000	EUR		77,758
senior note, 3.257%, 1/19/27		China		100,000			88,996
dRakuten Group Inc., senior note, 144A, 10.25%, 11/30/24		Japan		27,000			27,103
							287,201
IT Services 1.0%
dHurricane Finance PLC, senior secured note, Reg S, 8.00%, 10/15/25		United Kingdom		234,000	GBP		260,669
dVirtusa Corp., senior note, 144A, 7.125%, 12/15/28		United States		286,000			237,845
							498,514
Leisure Products 0.5%
dMattel Inc., senior note, 144A, 3.375%, 4/01/26		United States		280,000			257,240
Machinery 0.6%
dChart Industries Inc., senior secured note, 144A, 7.50%, 1/01/30		United States		61,000			61,991
dTK Elevator US Newco Inc., senior secured note, 144A, 5.25%, 7/15/27		Germany		264,000			239,446
							301,437
Media 1.1%
dAdvantage Sales & Marketing Inc., senior secured note, 144A, 6.50%, 11/15/28		United States		201,000			153,793
Charter Communications Operating LLC / Charter
Communications Operating Capital, senior secured bond, 3.95%, 6/30/62		United States		178,000			106,875
dCSC Holdings LLC, senior bond, 144A, 5.50%, 4/15/27		United States		87,000			75,772
dDISH DBS Corp., senior secured note, 144A, 5.75%, 12/01/28		United States		67,000			53,645
TEGNA Inc., senior note, 4.625%, 3/15/28		United States		185,000			165,344
							555,429
Multiline Retail 0.2%
Kohl’s Corp., senior bond, 5.55%, 7/17/45		United States		156,000			100,814
Oil, Gas & Consumable Fuels 3.8%
Energy Transfer LP, senior bond,
6.125%, 12/15/45		United States		25,000			23,442
5.00%, 5/15/50		United States		64,000			52,545

95

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

	Country		Principal     Amount*			Value
Corporate Bonds and Notes (continued)
Oil, Gas & Consumable Fuels (continued)
dGreensaif Pipelines Bidco SARL, senior secured bond, 144A,
6.129%, 2/23/38		Saudi Arabia		207,000		$	206,788
6.51%, 2/23/42		Saudi Arabia		200,000			204,150
dMoss Creek Resources Holdings Inc., senior note, 144A,
7.50%, 1/15/26		United States		49,000			44,096
10.50%, 5/15/27		United States		107,000			100,696
dNew Fortress Energy Inc., senior secured note, 144A, 6.75%,
9/15/25		United States		373,000			350,184
dNorthern Oil And Gas Inc., senior note, 144A, 8.125%, 3/01/28		United States		34,000			32,841
Petroleos Mexicanos,
senior bond, 6.75%, 9/21/47		Mexico		200,000			130,243
senior note, 6.50%, 3/13/27		Mexico		206,000			187,715
Southwestern Energy Co., senior bond, 4.75%, 2/01/32		United States		278,000			239,191
Targa Resources Corp., senior bond, 6.50%, 2/15/53		United States		18,000			17,722
dVenture Global Calcasieu Pass LLC, senior secured bond, 144A,
3.875%, 11/01/33		United States		381,000			311,067
Vital Energy Inc., senior note, 9.50%, 1/15/25		United States		22,000			22,199
							1,922,879
Pharmaceuticals 1.3%
d1375209 Bc Ltd., senior secured note, 144A, 9.00%, 1/30/28		Canada		171,000			170,894
dBausch Health Cos. Inc., senior secured note, 144A, 5.50%,
11/01/25		United States		183,000			159,366
dOrganon & Co. / Organon Foreign Debt Co.-Issuer BV, senior
bond, 144A, 5.125%, 4/30/31		United States		355,000			301,734
							631,994
Road & Rail 0.5%
dTransnet SOC Ltd., senior note, 144A, 8.25%, 2/06/28		South Africa		262,000			263,241
Software 0.1%
Oracle Corp., senior bond, 3.85%, 4/01/60		United States		61,000			40,731
Specialty Retail 1.7%
dCarvana Co., senior note, 144A,
5.625%, 10/01/25		United States		319,000			195,053
5.50%, 4/15/27		United States		63,000			32,198
5.875%, 10/01/28		United States		65,000			31,325
4.875%, 9/01/29		United States		122,000			57,863
10.25%, 5/01/30		United States		323,000			202,238
dDouglas GMBH, senior secured note, Reg S, 6.00%, 4/08/26		Germany		231,000	EUR		215,558
dGuitar Center Inc., senior secured note, 144A, 8.50%, 1/15/26		United States		140,000			122,063
							856,298
Textiles, Apparel & Luxury Goods 0.2%
dHanesbrands Inc., senior note, 144A, 4.625%, 5/15/24		United States		75,000			74,994
Total Corporate Bonds and Notes (Cost $13,032,689)							12,011,165
f Senior Floating Rate Interests 1.3%
Communications Equipment 0.1%
gRiverbed Technology Inc., Exit Term Loan, PIK, 7.00% (cash), (1-
Month USD LIBOR + 6.00%), 12/08/26		United States		88,929			32,404

96

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

	Country		Principal Amount*			Value
f Senior Floating Rate Interests (continued)
Construction Materials 0.0%†
h Oldcastle BuildingEnvelope Inc., Term Loan RC, 7.303%, (1- Month SOFR + 3.75%), 4/29/27		United States		8,362		$	7,317
Consumer Discretionary Services 0.3%
Travel Leaders Group LLC, Term Loan B, 8.635%, (1-Month USD LIBOR + 4.00%), 1/25/24		United States		140,417			130,535
Equity Real Estate Investment Trusts (REITs) 0.1%
McCarthy & Stone PLC, Term Loan B, 7.00%, (1-Month USD LIBOR + 7.00%), 12/16/25		United Kingdom		50,969	GBP		53,031
Food & Staples Retailing 0.2%
hUpfield Group BV, Term Loan RC, 5.429%, (3-Month EURIBOR + 3.00%), 1/02/25		Netherlands		120,960			113,866
Health Services 0.0%†
OpenText Corp., Initial Term Loan, 8.135%, (1-Month SOFR + 3.60%), 8/27/29		United States		11,942			11,941
Media 0.1%
Advantage Sales & Marketing Inc., Term Loan B1, 8.884%, (3- Month USD LIBOR + 4.50%), 10/28/27		United States		34,054			28,167
Cablevision SA, Term Loan B, 6.838%, (1-Month USD LIBOR + 2.25%), 7/17/25		United States		36,715			35,542
CSC Holdings LLC, Term Loan B, 9.063%, (1-Month USD LIBOR + 2.25%), 4/15/27		United States		7,032			6,601
							70,310
Oil, Gas & Consumable Fuels 0.1%
Euro Garage Ltd., Term Loan B1, 6.752%, (3-Month EURIBOR + 4.00%), 2/07/25		United States		33,515			32,017
Pharmaceuticals 0.2%
hBausch Health Cos. Inc., Term Loan B, 9.914%, (1-Month SOFR + 5.25%), 2/01/27		United States		153,131			121,322
Software 0.2%
hCitrix Systems Inc., Term Loan B, 9.18%, (1-Month SOFR + 4.50%), 3/30/29		United States		85,883			79,898
Textiles, Apparel & Luxury Goods 0.0%†
hVarsity Brands, Initial Term Loan, 8.135%, (1-Month USD LIBOR + 3.50%), 12/16/24		United States		6,040			5,857
Total Senior Floating Rate Interests (Cost $760,252)							658,498
Foreign Government and Agency Securities 5.5%
dGovernment of Angola, senior bond, Reg S,
8.00%, 11/26/29		Angola		274,000			247,082
9.375%, 5/08/48		Angola		200,000			170,940
Government of Argentina, senior bond, 1.50%, 7/09/35		Argentina		1,070,495			307,016
dGovernment of Dominican Republic,
senior bond, Reg S, 5.875%, 1/30/60		Dominican Republic		300,000			226,348
senior note, 144A, 7.05%, 2/03/31		Dominican Republic		150,000			150,122
dGovernment of Germany, senior bond, Reg S, zero cpn., 2/15/32		Germany		76,500	EUR		64,372
dGovernment of Iraq, senior bond, Reg S, 5.80%, 1/15/28		Iraq		156,250			143,943

97

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

	Country		Principal Amount*			Value
Foreign Government and Agency Securities (continued)
eGovernment of Italy, senior note, 2.375%, 10/17/24		Italy		373,000		$	352,816
dGovernment of Ivory Coast, senior bond, Reg S, 4.875%, 1/30/32		Ivory Coast		100,000	EUR		81,245
Government of Mexico, senior bond, 6.35%, 2/09/35		Mexico		200,000			205,697
dGovernment of Nigeria, senior note, Reg S, 8.375%, 3/24/29		Nigeria		224,000			189,140
Government of South Africa, senior bond,
8.875%, 2/28/35		South Africa		2,162,269	ZAR		100,148
8.75%, 2/28/48		South Africa		5,616,233	ZAR		238,625
Government of Turkey, senior note, 9.875%, 1/15/28		Turkey		200,000			203,364
dGovernment of Ukraine, senior bond, Reg S,
7.75%, 9/01/26		Ukraine		200,000			38,164
zero cpn., 8/01/41		Ukraine		208,000			57,920
Total Foreign Government and Agency Securities (Cost $3,053,926)							2,776,942
U.S. Government and Agency Securities 0.3%
U.S. Treasury Bond,
2.875%, 5/15/52		United States		193,500			158,496
3.00%, 8/15/52		United States		1,700			1,430
U.S. Treasury Note, 4.00%, 10/31/29		United States		11,000			10,937
Total U.S. Government and Agency Securities (Cost $177,931)							170,863
Asset-Backed Securities and Commercial Mortgage-Backed
Securities 21.8%
Diversified Financial Services 8.6%
CitiMortgage Alternative Loan Trust, 2007-A1, 2A1, 5.50%, 1/25/22		United States		12,624			11,421
dFRTKL, 2021-SFR1, G, 144A, 4.105%, 9/17/38		United States		990,000			850,736
d,fGSMSC Pass-Through Trust, 2009-4R, 2A3, 144A, FRN, 4.956%, (1-Month USD LIBOR + 0.45%), 12/26/36		United States		568,491			405,434
d,fMountain View CLO Ltd., 2018-1A, DRR, 144A, FRN, 8.442%, (3- Month USD LIBOR + 3.65%), 10/15/26		United States		1,290,000			1,287,941
iSTARM Mortgage Loan Trust, 2007-2, 4A1, FRN, 2.753%, 4/25/37		United States		35,978			18,638
dStellar Jay Ireland DAC, 2021-1, B, 144A, 5.926%, 10/15/41		Ireland		946,940			788,301
fSuntrust Alternative Loan Trust, 2005-1F, 1A1, FRN, 5.267%, (1- Month USD LIBOR + 0.65%), 12/25/35		United States		73,775			62,037
d,fVMC Finance LLC, 2019-FL3, C, 144A, FRN, 6.651%, (1-Month USD LIBOR + 2.05%), 9/15/36		United States		880,961			830,082
Wells Fargo Alternative Loan Trust, 2007-PA3, 2A2, 6.00%, 7/25/37		United States		87,579			74,607
							4,329,197
Mortgage Real Estate Investment Trusts (REITs) 13.2%
iAmerican Home Mortgage Assets Trust, 2005-1, 1A1, FRN, 3.209%, 11/25/35		United States		69,935			52,248
iBanc of America Mortgage Trust, FRN,
2005-K, 2A1, 3.934%, 12/25/35		United States		105,153			92,521
2005-L, 1A1, 3.695%, 1/25/36		United States		86,164			72,792
2005-L, 3A1, 4.164%, 1/25/36		United States		62,433			57,378
d,fBBCMS Mortgage Trust, 2019-BWAY, E, 144A, FRN, 7.527%, (1- Month USD LIBOR + 2.96%), 11/15/34		United States		2,000,000			1,329,653
d,iBCAP LLC Trust, 2010-RR1, 1A4, 144A, FRN, 3.224%, 3/26/37		United States		177,277			140,489

98

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

	Country		Principal Amount*		Value
Asset-Backed Securities and Commercial Mortgage-Backed
Securities (continued)
Mortgage Real Estate Investment Trusts (REITs) (continued)
iBear Stearns ARM Trust, FRN ,
2002-11, 1A2, 3.25%, 2/25/33		United States		1,455	$	1,144
2006-2, 4A1, 3.328%, 7/25/36		United States		30,858		26,107
iCitigroup Mortgage Loan Trust, 2007-AR5, 2A1A, FRN, 4.393%, 4/25/37		United States		71,439		61,789
Countrywide Alternative Loan Trust,
2005-73CB, 1A2, 6.25%, 1/25/36		United States		108,090		103,397
2005-J10, 2A4, 6.00%, 10/25/35		United States		388,679		200,426
iCredit Suisse First Boston Mortgage Securities Corp., 2004-AR3, CB2, FRN, 3.309%, 4/25/34		Switzerland		102,255		86,749
CSMC Mortgage-Backed Trust, 2006-4, 9A1, 6.50%, 5/25/36		United States		718,269		294,546
d,iFARM Mortgage Trust, 2021-1, B, 144A, FRN, 3.24%, 7/25/51		United States		875,761		546,678
GSR Mortgage Loan Trust, 2004-6F, 2A4, 5.50%, 5/25/34		United States		70,657		68,723
Impac CMB Trust,
2004-4, 2A2, 5.341%, 9/25/34		United States		111,391		113,891
f2004-8, 3B, FRN, 7.242%, (1-Month USD LIBOR + 2.63%), 8/25/34		United States		89,617		78,668
f2005-2, 2B, FRN, 7.092%, (1-Month USD LIBOR + 2.48%), 4/25/35		United States		51,676		47,027
f2005-4, 2M1, FRN, 5.367%, (1-Month USD LIBOR + 0.50%), 5/25/35		United States		125,980		111,137
f2005-8, 2B, FRN, 6.867%, (1-Month USD LIBOR + 2.25%), 2/25/36		United States		66,096		58,641
fIndyMac INDX Mortgage Loan Trust, FRN,
2006-AR12, A1, 4.997%, (1-Month USD LIBOR + 0.38%), 9/25/46		United States		135,741		119,054
2006-AR29, A2, 4.777%, (1-Month USD LIBOR + 0.16%), 11/25/36		United States		228,353		215,335
iJPMorgan Mortgage Trust, FRN,
2006-A5, 6A1, 3.724%, 8/25/36		United States		161,263		127,923
2006-A7, 2A3, 3.846%, 1/25/37		United States		64,364		49,593
Lehman Mortgage Trust, 2005-3, 2A3, 5.50%, 1/25/36		United States		53,574		41,057
iMASTR Adjustable Rate Mortgages Trust, 2004-10, B1, FRN, 3.632%, 10/25/34		United States		412,629		360,818
iMASTR Alternative Loan Trust, 2007-HF1, 3A1, FRN, 3.275%, 10/25/47		United States		468,426		312,269
d,fMorgan Stanley Capital I Trust, 2018-BOP, E, 144A, FRN, 6.538%, (1-Month USD LIBOR + 1.95%), 6/15/35		United States		1,200,000		962,326
iRFMSI Trust, 2007-SA2, 3A, FRN, 5.855%, 4/25/37		United States		703,512		192,728
iStructured ARM Loan Trust, 2004-4, B1, FRN, 4.366%, 4/25/34		United States		440,637		371,489
WaMu Mortgage Pass-Through Certificates Series Trust, FRN,
i2003-AR3, B1, 3.871%, 6/25/33		United States		192,088		171,002
f2006-4, 3A2B, 4.777%, (1-Month USD LIBOR + 0.16%), 5/25/36		United States		180,499		153,444
						6,621,042
Total Asset-Backed Securities and Commercial Mortgage- Backed Securities (Cost $12,496,255)						10,950,239

99

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

	Number of Contracts		Notional Amount#		Value
Options Purchased 0.0%†
Puts - Exchange-Traded 0.0%†
Deere & Co., March Strike Price $300.00, Expires 3/17/23		2		83,848	$	4
Dick's Sporting Good Inc., March Strike Price $70.00, Expires 3/17/23		8		102,904		40
S&P 500 Index, March Strike Price $3,445.00, Expires 3/31/23		4		1,588,060		1,800
SPDR S&P Regional Banking ETF, March Strike Price $52.00, Expires 3/17/23		28		172,368		196
						2,040
Puts - Over-the-Counter 0.0%†
H & M Hennes & Mauritz AB, Counterparty CITI, March Strike Price 100.00 SEK, Expires 3/17/23		21		277,284		15
Softbank Group, Counterparty GSCO, March Strike Price 4,540.00 JPY, Expires 3/09/23		1,180		6,510,060		8
						23
Total Options Purchased (Cost $64,825)						2,063
Total Investments before Short Term Investments
(Cost $30,802,428)						27,657,638
	Country		Shares
Short Term Investments 42.8%
Money Market Funds (Cost $21,506,085) 42.8%
jFidelity Investments Money Market Government Portfolio, Institutional, 4.46%		United States		21,506,085		21,506,085
Total Investments (Cost $52,308,513) 97.8%						49,163,723
Options Written (0.0)%†						(12,400)
Securities Sold Short (7.0)%						(3,534,134)
Other Assets, less Liabilities 9.2%						4,636,642
Net Assets 100.0%					$	50,253,831
	Number of Contracts		Notional Amount#
Options Written (Proceeds $53,104) (0.0)%†
Calls - Exchange-Traded (0.0)%†
S&P 500 Index, March Strike Price $4,100.00, Expires 3/31/23		4		1,632,044		(12,400)

100

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

	Country		Shares		Value
Securities Sold Short (7.0)%
Common Stocks (2.5)%
Capital Markets (2.5)%
Ares Capital Corp.		United States		29,109	$	(563,550)
Owl Rock Capital Corp.		United States		51,114		(700,262)
Total Common Stocks (Proceeds $1,210,847)						(1,263,812)
			Principal Amount*
Corporate Bonds and Notes (3.8)%
Automobiles (0.2)%
Ford Motor Credit Co. LLC, senior note, 4.95%, 5/28/27		United States		123,000		(114,731)
Banks (0.0)%†
SVB Financial Group, senior note, 1.80%, 10/28/26		United States		21,000		(18,319)
Chemicals (0.1)%
Celanese US Holdings LLC, senior note, 6.33%, 7/15/29		United States		30,000		(29,442)
Construction & Engineering (0.6)%
Fluor Corp., senior bond, 4.25%, 9/15/28		United States		312,000		(281,818)
Consumer Finance (0.8)%
Ally Financial Inc., junior sub. bond, 5.75%, 11/20/25		United States		96,000		(94,050)
Onemain Finance Corp., senior note,
6.875%, 3/15/25		United States		40,000		(39,089)
7.125%, 3/15/26		United States		257,000		(250,084)
						(383,223)
Diversified Financial Services (0.6)%
dKronos Acquisition Holdings Inc. / KIK Custom Products Inc., senior note, 144A, 7.00%, 12/31/27		Canada		200,000		(171,729)
dMPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28		United States		169,000		(110,061)
						(281,790)
Health Care Providers & Services (0.2)%
Tenet Healthcare Corp., senior secured note, 6.25%, 2/01/27		United States		119,000		(116,005)
Hotels, Restaurants & Leisure (0.1)%
dMohegan Tribal Gaming Authority, senior secured note, 144A, 8.00%, 2/01/26		United States		34,000		(31,884)
Media (0.7)%
DISH DBS Corp., senior note, 7.75%, 7/01/26		United States		67,000		(52,076)
iHeartCommunications Inc., senior note, 8.375%, 5/01/27		United States		228,886		(201,649)
dScripps Escrow II Inc., senior bond, 144A, 5.375%, 1/15/31		United States		154,000		(109,196)
						(362,921)
Oil, Gas & Consumable Fuels (0.1)%
dTallgrass Energy Partners LP / Tallgrass Energy Finance Corp., senior bond, 144A, 6.00%, 12/31/30		United States		87,000		(75,139)
Semiconductors & Semiconductor Equipment (0.4)%
Intel Corp., senior bond, 4.75%, 3/25/50		United States		143,000		(124,016)

101

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

	Country		Principal Amount*			Value
Securities Sold Short (continued)
Corporate Bonds and Notes (continued)
Intel Corp., senior bond, (continued) 4.90%, 8/05/52		United States		93,000		$	(82,539)
							(206,555)
Total Corporate Bonds and Notes (Proceeds $2,042,284)							(1,901,827)
Foreign Government and Agency Securities (0.7)%
dGovernment of Italy, senior bond, Reg S, 0.95%, 6/01/32 Government of Turkey, senior bond, 5.75%, 3/22/24		Italy Turkey		92,000 170,000	EUR		(72,892) (166,319)
7.375%, 2/05/25		Turkey		131,000			(129,284)
Total Foreign Government and Agency Securities (Proceeds $389,442)							(368,495)
Total Securities Sold Short (Proceeds $3,642,573)						$	(3,534,134)

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

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

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

^a  Non-income producing.

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

^c  See Note 3 regarding restricted securities.

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

^e  A portion or all of the security has been segregated as collateral for securities sold short, open swap contracts, open forward exchange contracts, open futures contracts and/or open written option contracts. At February 28, 2023, the aggregate value of these securities and/or cash pledged amounted to $4,943,292, representing 9.8% of net assets.

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

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

^h  See Note 4 regarding unfunded loan commitments.

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

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

102

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

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

Futures Contracts

Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Equity Contracts
S&P 500 E-Mini Index		Short		1	$	198,775		3/17/23	$	3,697
Total Futures Contracts									$	3,697

    *As of period end.

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

Forward Exchange Contracts

Currency	Counterpartya		Type		Quantity		Contract Amount*			Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts
Brazilian Real		JPHQ		Buy		2,778,328		537,250			3/02/23	$	–	$	(6,574	)
Brazilian Real		JPHQ		Sell		2,778,328		536,463			3/02/23		5,787		–
British Pound		JPHQ		Sell		560,000		690,422			3/15/23		16,629		–
Czech Koruna		JPHQ		Buy		22,695,789		1,001,582			3/15/23		19,975		(868	)
Czech Koruna		JPHQ		Sell		22,695,789		1,007,246			3/15/23		1,301		(14,742	)
Polish Zloty		JPHQ		Sell		926,818		194,987	EUR		3/15/23		2,306		(3,978	)
Czech Koruna		JPHQ		Sell		1,019,051		42,834	EUR		3/15/23		237		(717	)
Euro		JPHQ		Buy		163,225		178,062			3/15/23		–		(5,253	)
Euro		JPHQ		Sell		240,349		258,182			3/15/23		3,722		–
Indonesian Rupiah		JPHQ		Buy		2,767,084,779		177,925			3/15/23		3,427		–
Indonesian Rupiah		JPHQ		Sell		4,636,980,450		296,710			3/15/23		–		(7,193	)
Mexican Peso		JPHQ		Buy		2,189,411		109,243			3/15/23		10,060		–
Mexican Peso		JPHQ		Sell		2,189,411		117,646			3/15/23		–		(1,657	)
Euro		JPHQ		Sell		195,769		926,818	PLN		3/15/23		2,880		(2,034	)
Polish Zloty		JPHQ		Buy		193,768		43,546			3/15/23		–		(37	)
Polish Zloty		JPHQ		Sell		680,766		152,326			3/15/23		–		(534	)
South African Rand		JPHQ		Buy		15,227,857		888,024			3/15/23		–		(59,977	)
South African Rand		JPHQ		Sell		19,182,534		1,098,745			3/15/23		55,654		–
South Korean Won		JPHQ		Buy		385,572,346		305,682			3/15/23		–		(14,122	)
South Korean Won		JPHQ		Sell		332,438,742		255,694			3/15/23		4,312		–
Swedish Krona		JPHQ		Buy		20,000		1,914			3/15/23		–		(2	)
Swedish Krona		JPHQ		Sell		20,000		1,964			3/15/23		52		–
Hungarian Forint		JPHQ		Sell		72,827,058		178,192	EUR		3/16/23		330		(14,071	)
Euro		JPHQ		Buy		4,754		5,198			3/16/23		–		(165	)
Euro		JPHQ		Sell		366,817		144,523,198	HUF		3/16/23		13,560		(271	)
Hungarian Forint		JPHQ		Buy		50,751,936		140,849			3/16/23		675		(472	)
Hungarian Forint		JPHQ		Sell		50,751,936		140,587			3/16/23		538		(1,004	)
Euro		JPHQ		Buy		200,000		213,979			3/31/23		–		(2,022	)
Euro		JPHQ		Sell		870,000		973,246			3/31/23		51,232		–
Brazilian Real		JPHQ		Buy		838,585		161,660			4/04/23		–		(2,590	)
Euro		JPHQ		Buy		250,000		277,258			3/31/25		–		(4,493	)
Euro		JPHQ		Sell		970,000		1,135,928			3/31/25		77,600		–
Total Forward Exchange Contracts												$	270,277	$	(142,776	)
Net unrealized appreciation (depreciation)												$	127,501

*In U.S. dollars unless otherwise indicated.

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

103

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

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

Credit Default Swap Contracts

Description	Annual Payment Rate Received (Paid)			Payment Frequency			Maturity Date		Notional Amounta		Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
Centrally Cleared Swap Contracts
Contracts to Buy Protectionc
Traded Index
CDX.EM.38		(1.00	)%		Quarterly			12/20/27		325,269	$	18,449		$	19,176		$	(727	)
OTC Swap Contracts
Contracts to Buy Protectionc
Single Name						Counterparty
Air France-KLM		(5.00	)%		Quarterly	CITI		12/20/27		5,000EUR		(156	)		514			(670	)
Air France-KLM		(5.00	)%		Quarterly	CITI		12/20/27		6,000EUR		(187	)		603			(790	)
Air France-KLM		(5.00	)%		Quarterly	CITI		12/20/27		12,000EUR		(374	)		871			(1,245	)
Air France-KLM		(5.00	)%		Quarterly	CITI		12/20/27		14,000EUR		(3,356	)		1,335			(4,691	)
Air France-KLM		(5.00	)%		Quarterly	CITI		12/20/27		23,000EUR		(716	)		1,761			(2,477	)
Ally Financial Inc.		(5.00	)%		Quarterly	BNPP		12/20/27		138,000		(15,973	)		(10,007	)		(5,966	)
Ally Financial Inc.		(5.00	)%		Quarterly	BNPP		12/20/27		37,000		(4,282	)		(2,830	)		(1,452	)
Ally Financial Inc.		(5.00	)%		Quarterly	BNPP		12/20/27		24,000		(2,778	)		(1,988	)		(790	)
Ally Financial Inc.		(5.00	)%		Quarterly	CITI		12/20/24		40,000		(2,945	)		(1,767	)		(1,178	)
Ally Financial Inc.		(5.00	)%		Quarterly	GSCO		12/20/27		119,000		(13,773	)		(9,252	)		(4,521	)
Ally Financial Inc.		(5.00	)%		Quarterly	GSCO		12/20/27		15,000		(1,736	)		(1,276	)		(460	)
Ally Financial Inc.		(5.00	)%		Quarterly	GSCO		12/20/27		7,000		(810	)		(590	)		(220	)
Ally Financial Inc.		(5.00	)%		Quarterly	GSCO		12/20/27		5,000		(579	)		(454	)		(125	)
Ally Financial Inc.		(5.00	)%		Quarterly	MSCS		12/20/24		34,000		(2,503	)		(1,494	)		(1,009	)
Altice France Holding SA		(5.00	)%		Quarterly	JPHQ		12/20/27		1,000EUR		57			92			(35	)
Altice France Holding SA		(5.00	)%		Quarterly	JPHQ		12/20/27		2,000EUR		115			172			(57	)
Altice France Holding SA		(5.00	)%		Quarterly	JPHQ		12/20/27		6,000EUR		344			520			(176	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		12/20/23		15,000		(362	)		167			(529	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		12/20/23		14,000		(337	)		289			(626	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		12/20/23		41,000		(988	)		723			(1,711	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		6/20/24		42,000		(508	)		1,145			(1,653	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		6/20/24		25,000		(302	)		2,331			(2,633	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		6/20/24		84,000		(1,016	)		4,595			(5,611	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		12/20/24		20,000		(23	)		2,451			(2,474	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		6/20/25		16,000		209			1,777			(1,568	)
American Airlines Group Inc.		(5.00	)%		Quarterly	BZWS		6/20/25		64,000		835			6,748			(5,913	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		12/20/23		12,000		(289	)		145			(434	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		12/20/23		17,000		(410	)		204			(614	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		12/20/23		48,000		(1,157	)		655			(1,812	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		12/20/23		20,000		(482	)		696			(1,178	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		12/20/23		33,000		(795	)		1,567			(2,362	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		6/20/24		10,000		(121	)		685			(806	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		6/20/24		37,000		(448	)		2,783			(3,231	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		12/20/24		9,000		(10	)		1,158			(1,168	)
American Airlines Group Inc.		(5.00	)%		Quarterly	GSCO		12/20/24		78,000		(88	)		5,543			(5,631	)
American Axle &
Manufacturing Inc.		(5.00	)%		Quarterly	JPHQ		6/20/25		11,000		(521	)		(452	)		(69	)
American Axle &
Manufacturing Inc.		(5.00	)%		Quarterly	JPHQ		6/20/27		26,000		(247	)		(308	)		61
American Axle &
Manufacturing Inc.		(5.00	)%		Quarterly	MSCS		6/20/27		26,000		(247	)		(398	)		151
American Axle &
Manufacturing Inc.		(5.00	)%		Quarterly	MSCS		6/20/27		12,000		(114	)		119			(233	)
American Axle &
Manufacturing Inc.		(5.00	)%		Quarterly	MSCS		12/20/27		6,000		22			196			(174	)

104

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

Credit Default Swap Contracts (continued)

Description	Annual Payment Rate Received (Paid)			Payment Frequency		Counterparty		Maturity Date		Notional Amounta		Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
Arcelormittal SA		(5.00	)%		Quarterly		BOFA		12/20/27		25,000EUR	$	(3,563	)	$	(1,494	)	$	(2,069	)
Arcelormittal SA		(5.00	)%		Quarterly		JPHQ		12/20/27		51,000EUR		(7,269	)		(3,069	)		(4,200	)
Arcelormittal SA		(5.00	)%		Quarterly		JPHQ		12/20/27		12,000EUR		(1,710	)		(986	)		(724	)
Arcelormittal SA		(5.00	)%		Quarterly		JPHQ		12/20/27		12,000EUR		(1,710	)		(915	)		(795	)
Arcelormittal SA		(5.00	)%		Quarterly		JPHQ		12/20/27		12,000EUR		(1,710	)		(896	)		(814	)
BMW AG		(1.00	)%		Quarterly		BZWS		12/20/27		54,000EUR		(1,080	)		663			(1,743	)
BMW AG		(1.00	)%		Quarterly		MSCS		12/20/27		54,000EUR		(1,080	)		528			(1,608	)
Carnival Corp.		(1.00	)%		Quarterly		BZWS		12/20/26		12,000		2,548			4,484			(1,936	)
Carnival Corp.		(1.00	)%		Quarterly		BZWS		12/20/26		12,000		2,548			4,539			(1,991	)
Carnival Corp.		(1.00	)%		Quarterly		BZWS		12/20/26		12,000		2,548			4,563			(2,015	)
Carnival Corp.		(1.00	)%		Quarterly		BZWS		12/20/26		24,000		5,097			7,903			(2,806	)
Carnival Corp.		(1.00	)%		Quarterly		BZWS		12/20/26		24,000		5,097			8,995			(3,898	)
Carnival Corp.		(1.00	)%		Quarterly		CITI		12/20/26		12,000		2,548			3,857			(1,309	)
Carnival Corp.		(1.00	)%		Quarterly		CITI		12/20/26		12,000		2,548			4,011			(1,463	)
Ceconomy AG		(1.00	)%		Quarterly		MSCS		6/20/23		2,000EUR		14			98			(84	)
Ceconomy AG		(1.00	)%		Quarterly		MSCS		12/20/23		4,000EUR		189			273			(84	)
Ceconomy AG		(1.00	)%		Quarterly		MSCS		12/20/23		4,000EUR		189			350			(161	)
Ceconomy AG		(1.00	)%		Quarterly		MSCS		12/20/23		4,000EUR		189			359			(170	)
Ceconomy AG		(1.00	)%		Quarterly		MSCS		12/20/23		4,000EUR		189			371			(182	)
Ceconomy AG		(1.00	)%		Quarterly		MSCS		12/20/23		8,000EUR		379			676			(297	)
Ceconomy AG		(1.00	)%		Quarterly		MSCS		6/20/24		10,000EUR		945			1,117			(172	)
Compagnie de Saint-Gobain SA		(1.00	)%		Quarterly		CITI		12/20/27		67,000EUR		(734	)		1,491			(2,225	)
Compagnie de Saint-Gobain SA		(1.00	)%		Quarterly		CITI		12/20/27		112,000EUR		(1,227	)		2,488			(3,715	)
Daimler Truck Holding AG		(1.00	)%		Quarterly		GSCO		12/20/27		56,000EUR		(957	)		806			(1,763	)
Ford Motor Credit Co. LLC		(5.00	)%		Quarterly		CITI		12/20/27		86,000		(8,477	)		(4,740	)		(3,737	)
Ford Motor Credit Co. LLC		(5.00	)%		Quarterly		GSCO		12/20/27		1,000		(99	)		(59	)		(40	)
Ford Motor Credit Co. LLC		(5.00	)%		Quarterly		MSCS		12/20/27		29,000		(2,858	)		(2,166	)		(692	)
Ford Motor Credit Co. LLC		(5.00	)%		Quarterly		MSCS		12/20/27		12,000		(1,183	)		(471	)		(712	)
Government of Italy		(1.00	)%		Quarterly		BOFA		6/20/24		233,000		(2,304	)		639			(2,943	)
Government of Italy		(1.00	)%		Quarterly		BOFA		6/20/24		140,000		(1,384	)		861			(2,245	)
Government of Japan		(1.00	)%		Quarterly		BZWS		12/20/27		58,000		(1,990	)		(1,717	)		(273	)
Government of Japan		(1.00	)%		Quarterly		BZWS		12/20/27		47,000		(1,613	)		(1,522	)		(91	)
Government of Japan		(1.00	)%		Quarterly		BZWS		12/20/27		47,000		(1,613	)		(1,497	)		(116	)
Government of Japan		(1.00	)%		Quarterly		BZWS		12/20/27		47,000		(1,613	)		(1,487	)		(126	)
Government of Japan		(1.00	)%		Quarterly		BZWS		12/20/27		47,000		(1,613	)		(1,386	)		(227	)
Government of Japan		(1.00	)%		Quarterly		BZWS		12/20/27		24,000		(824	)		(706	)		(118	)
Government of Japan		(1.00	)%		Quarterly		GSCO		12/20/27		82,000		(2,814	)		(2,393	)		(421	)
Government of Japan		(1.00	)%		Quarterly		GSCO		12/20/27		47,000		(1,613	)		(1,387	)		(226	)
Government of Japan		(1.00	)%		Quarterly		GSCO		12/20/27		35,000		(1,201	)		(1,146	)		(55	)
Government of Japan		(1.00	)%		Quarterly		GSCO		12/20/27		24,000		(824	)		(701	)		(123	)
Government of Japan		(1.00	)%		Quarterly		MSCS		12/20/27		70,000		(2,402	)		(2,202	)		(200	)
HP Inc.		(1.00	)%		Quarterly		GSCO		12/20/27		60,000		371			2,318			(1,947	)
HP Inc.		(1.00	)%		Quarterly		MSCS		12/20/27		65,000		401			2,168			(1,767	)
ICE Ltd.		(5.00	)%		Quarterly		JPHQ		6/20/25		10,000EUR		1,007			320			687
Iceland Bondco		(5.00	)%		Quarterly		GSCO		6/20/25		15,000EUR		1,511			1,951			(440	)
JFE Holdings Inc.		(1.00	)%		Quarterly		BZWS		12/20/27		4,732,000JPY		(708	)		(317	)		(391	)
JFE Holdings Inc.		(1.00	)%		Quarterly		CITI		12/20/27		4,732,000JPY		(708	)		(676	)		(32	)
JFE Holdings Inc.		(1.00	)%		Quarterly		CITI		12/20/27		4,725,000JPY		(706	)		(668	)		(38	)
JFE Holdings Inc.		(1.00	)%		Quarterly		CITI		12/20/27		2,363,000JPY		(353	)		(320	)		(33	)
JFE Holdings Inc.		(1.00	)%		Quarterly		GSCO		12/20/27		4,732,000JPY		(708	)		(606	)		(102	)
JFE Holdings Inc.		(1.00	)%		Quarterly		GSCO		12/20/27		2,335,000JPY		(349	)		(315	)		(34	)
JFE Holdings Inc.		(1.00	)%		Quarterly		GSCO		12/20/27		2,366,000JPY		(354	)		(221	)		(133	)
JFE Holdings Inc.		(1.00	)%		Quarterly		GSCO		12/20/27		2,366,000JPY		(354	)		(174	)		(180	)

105

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

Credit Default Swap Contracts (continued)

Description	Annual Payment Rate Received (Paid)			Payment Frequency		Counterparty		Maturity Date		Notional Amounta		Value			Upfront Payments (Receipts)			Unrealized Appreciation (Depreciation)			Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		4,706,000JPY	$	(842	)	$	(988	)	$	146
Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		4,706,000JPY		(842	)		(686	)		(156	)
Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		2,353,000JPY		(421	)		(436	)		15
Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		2,353,000JPY		(421	)		(347	)		(74	)
Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		2,353,000JPY		(421	)		(272	)		(149	)
Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		CITI		12/20/27		2,353,000JPY		(421	)		(498	)		77
Kawasaki Heavy Industries Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		2,353,000JPY		(421	)		(439	)		18
Kobe Steel Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		1,273,000JPY		40			17			23
Kobe Steel Ltd.		(1.00	)%		Quarterly		CITI		12/20/27		2,437,000JPY		76			170			(94)
Kobe Steel Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		2,437,000JPY		76			153			(77)
Kobe Steel Ltd.		(1.00	)%		Quarterly		JPHQ		12/20/27		2,383,000JPY		74			40			34
Kohl’s Corp.		(1.00	)%		Quarterly		GSCO		6/20/26		41,000		3,489			553			2,936
Lanxess AG		(1.00	)%		Quarterly		GSCO		12/20/27		36,000EUR		361			2,394			(2,033	)
Lanxess AG		(1.00	)%		Quarterly		JPHQ		12/20/27		181,000EUR		1,815			13,193			(11,378	)
Lloyds Bank PLC		(1.00	)%		Quarterly		BZWS		12/20/27		40,000EUR		477			2,256			(1,779	)
Lloyds Bank PLC		(1.00	)%		Quarterly		CITI		12/20/27		12,000EUR		143			539			(396	)
Lloyds Bank PLC		(1.00	)%		Quarterly		CITI		12/20/27		107,000EUR		1,277			4,661			(3,384	)
Lloyds Bank PLC		(1.00	)%		Quarterly		JPHQ		12/20/27		14,000EUR		167			1,000			(833	)
Macy's Retail Holdings LLC.		(1.00	)%		Quarterly		GSCO		12/20/27		10,000		1,056			1,227			(171	)
Macy's Retail Holdings LLC.		(1.00	)%		Quarterly		GSCO		12/20/27		20,000		2,112			2,354			(242	)
Macy's Retail Holdings LLC.		(1.00	)%		Quarterly		JPHQ		12/20/27		20,000		2,112			1,780			332
Marubeni Corp.		(1.00	)%		Quarterly		CITI		6/20/25		3,711,000JPY		(570	)		536			(1,106	)
Mitsui O.S.K. Lines Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		2,509,000JPY		(206	)		(127	)		(79	)
Mitsui O.S.K. Lines Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		2,377,000JPY		(195	)		(84	)		(111	)
Mitsui O.S.K. Lines Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		1,175,000JPY		(97	)		(63	)		(34	)
Mitsui O.S.K. Lines Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		2,350,000JPY		(193	)		(22	)		(171	)
Mitsui O.S.K. Lines Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		2,350,000JPY		(193	)		–			(193	)
Mitsui O.S.K. Lines Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		1,175,000JPY		(97	)		18			(115	)
Mitsui O.S.K. Lines Ltd.		(1.00	)%		Quarterly		GSCO		12/20/27		2,350,000JPY		(193	)		37			(230	)
Mitsui O.S.K. Lines Ltd.		(1.00	)%		Quarterly		JPHQ		12/20/27		2,350,000JPY		(193	)		(142	)		(51	)
Next PLC		(1.00	)%		Quarterly		BZWS		12/20/27		9,000EUR		182			602			(420	)
Next PLC		(1.00	)%		Quarterly		CITI		12/20/27		80,000EUR		1,618			5,350			(3,732	)
Next PLC		(1.00	)%		Quarterly		GSCO		12/20/27		32,000EUR		647			2,152			(1,505	)
Nippon Paper Industries Co. Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		718,000JPY		435			314			121
Nippon Paper Industries Co. Ltd.		(1.00	)%		Quarterly		BZWS		12/20/27		5,744,000JPY		3,482			2,039			1,443
Nippon Paper Industries Co. Ltd.		(1.00	)%		Quarterly		CITI		12/20/27		2,872,000JPY		1,741			1,065			676
Nippon Paper Industries Co. Ltd.		(1.00	)%		Quarterly		JPHQ		12/20/27		2,872,000JPY		1,741			1,310			431
Nippon Steel Corp.		(1.00	)%		Quarterly		BZWS		12/20/27		5,915,000JPY		(931	)		(587	)		(344	)
Nippon Steel Corp.		(1.00	)%		Quarterly		BZWS		12/20/27		2,366,000JPY		(372	)		(275	)		(97	)
Nippon Steel Corp.		(1.00	)%		Quarterly		BZWS		12/20/27		715,000JPY		(113	)		(110	)		(3	)
Nippon Steel Corp.		(1.00	)%		Quarterly		BZWS		12/20/27		559,000JPY		(88	)		(87	)		(1	)
Nippon Steel Corp.		(1.00	)%		Quarterly		CITI		12/20/27		1,959,000JPY		(308	)		(286	)		(22	)
Nippon Steel Corp.		(1.00	)%		Quarterly		GSCO		12/20/27		2,366,000JPY		(372	)		(384	)		12
Nippon Steel Corp.		(1.00	)%		Quarterly		MSCS		12/20/27		4,732,000JPY		(745	)		(690	)		(55	)

106

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

Credit Default Swap Contracts (continued)

Description	Annual Payment Rate Received (Paid)		Payment Frequency	Counterparty	Maturity Date		Notional Amounta		Value			Upfront Payments (Receipts)		Unrealized Appreciation (Depreciation)		Ratingb
OTC Swap Contracts (continued)
Contracts to Buy Protectionc (continued)
Single Name (continued)
Rakuten Group Inc.		(1.00)%	Quarterly	BZWS		12/20/24		2,261,000JPY	$	970		$	315	$	655
Rakuten Group Inc.		(1.00)%	Quarterly	JPHQ		12/20/24		2,867,000JPY		1,230			648		582
Rakuten Group Inc.		(1.00)%	Quarterly	JPHQ		6/20/27		158,000JPY		164			109		55
Rakuten Group Inc.		(1.00)%	Quarterly	JPHQ		6/20/27		481,000JPY		501			335		166
Rakuten Group Inc.		(1.00)%	Quarterly	JPHQ		6/20/27		1,491,000JPY		1,552			787		765
Rakuten Group Inc.		(1.00)%	Quarterly	JPHQ		12/20/27		1,420,000JPY		1,635			1,125		510
Simon Property Group LP		(1.00)%	Quarterly	BNPP		12/20/27		52,000		(402	)		765		(1,167)
Simon Property Group LP		(1.00)%	Quarterly	BZWS		12/20/27		84,000		(650	)		1,374		(2,024)
Societe Generale SA		(1.00)%	Quarterly	BZWS		12/20/23		200,000EUR		(1,525	)		732		(2,257)
Softbank Group Corp.		(1.00)%	Quarterly	BZWS		6/20/27		777,000JPY		404			725		(321)
Softbank Group Corp.		(1.00)%	Quarterly	BZWS		6/20/27		1,331,000JPY		692			1,178		(486)
Softbank Group Corp.		(1.00)%	Quarterly	BZWS		6/20/27		1,503,000JPY		781			1,338		(557)
Softbank Group Corp.		(1.00)%	Quarterly	BZWS		6/20/27		4,972,000JPY		2,583			4,484		(1,901)
Stellantis NV		(5.00)%	Quarterly	BZWS		12/20/27		14,000EUR		(2,391	)		(1,402)		(989)
Stellantis NV		(5.00)%	Quarterly	CITI		12/20/27		55,000EUR		(9,392	)		(5,498)		(3,894)
Stellantis NV		(5.00)%	Quarterly	CITI		12/20/27		12,000EUR		(2,049	)		(1,332)		(717)
Stena AB		(5.00)%	Quarterly	BZWS		6/20/24		15,000EUR		(692	)		(296)		(396)
Stena AB		(5.00)%	Quarterly	GSCO		6/20/24		3,000EUR		(138	)		21		(159)
Stena AB		(5.00)%	Quarterly	GSCO		6/20/24		5,000EUR		(231	)		35		(266)
Stena AB		(5.00)%	Quarterly	GSCO		12/20/24		92,000EUR		(5,058	)		(3,410)		(1,648)
Stena AB		(5.00)%	Quarterly	GSCO		6/20/27		3,000EUR		(110	)		(5)		(105)
Stena AB		(5.00)%	Quarterly	JPHQ		6/20/27		2,000EUR		(73	)		18		(91)
Stena AB		(5.00)%	Quarterly	JPHQ		6/20/27		6,000EUR		(220	)		66		(286)
Stena AB		(5.00)%	Quarterly	JPHQ		6/20/27		28,000EUR		(1,025	)		157		(1,182)
Stena AB		(5.00)%	Quarterly	JPHQ		6/20/27		10,000EUR		(366	)		210		(576)
Stena AB		(5.00)%	Quarterly	JPHQ		6/20/27		35,000EUR		(1,282	)		254		(1,536)
Stena AB		(5.00)%	Quarterly	JPHQ		6/20/27		15,000EUR		(549	)		890		(1,439)
TDC Holding		(1.00)%	Quarterly	BNPP		6/20/27		60,000EUR		(339	)		2,944		(3,283)
U.S. Steel Corp.		(5.00)%	Quarterly	BZWS		12/20/27		9,000		(518	)		(49)		(469)
U.S. Steel Corp.		(5.00)%	Quarterly	BZWS		12/20/27		5,000		(288	)		7		(295)
U.S. Steel Corp.		(5.00)%	Quarterly	BZWS		12/20/27		5,000		(288	)		204		(492)
U.S. Steel Corp.		(5.00)%	Quarterly	BZWS		12/20/27		11,000		(633	)		517		(1,150)
U.S. Steel Corp.		(5.00)%	Quarterly	GSCO		12/20/27		11,000		(633	)		214		(847)
U.S. Steel Corp.		(5.00)%	Quarterly	MSCS		12/20/27		7,000		(403	)		100		(503)
U.S. Steel Corp.		(5.00)%	Quarterly	MSCS		12/20/27		12,000		(690	)		150		(840)
U.S. Steel Corp.		(5.00)%	Quarterly	MSCS		12/20/27		12,000		(690	)		170		(860)
U.S. Steel Corp.		(5.00)%	Quarterly	MSCS		12/20/27		12,000		(690	)		562		(1,252)
U.S. Steel Corp.		(5.00)%	Quarterly	MSCS		12/20/27		12,000		(690	)		607		(1,297)
U.S. Steel Corp.		(5.00)%	Quarterly	MSCS		12/20/27		23,000		(1,323	)		694		(2,017)
Unibail-Rodamco-Westfield SE		(1.00)%	Quarterly	GSCO		12/20/27		43,000EUR		1,594			2,275		(681)
Contracts to Sell Protectionc,d
Single Name
American Axle &
Manufacturing Inc.		5.00%	Quarterly	CITI		6/20/25		11,000		521			451		70	BB-
Calpine Corp.		5.00%	Quarterly	JPHQ		12/20/27		1,000		45			(9)		54	BB-
Calpine Corp.		5.00%	Quarterly	JPHQ		12/20/27		48,000		2,144			173		1,971	BB-
Kohl’s Corp.		1.00%	Quarterly	JPHQ		6/20/26		41,000		(3,489)			(2,448)		(1,041)	BB+
Nordstrom Inc.		1.00%	Quarterly	GSCO		12/20/27		20,000		(2,908)			(3,532)		624	BB+
Nordstrom Inc.		1.00%	Quarterly	GSCO		12/20/27		10,000		(1,454)			(1,721)		267	BB+
Total OTC Swap Contracts									$	(100,345)		$	72,790	$	(173,135)
Total Credit Default Swap Contracts									$	(81,896)		$	91,966	$	(173,862)

107

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

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

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

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

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

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

Interest Rate Swap Contracts

Description	Payment Frequency		Maturity Date		Notional Amount*			Value/ Unrealized Appreciation (Depreciation)
Centrally Cleared Swap Contracts
Receive Floating rate 1 Year-SOFR Pay Fixed rate 1.36%		Annually		3/08/24		1,000,000		$	49,625
Receive Fixed 12.865% Pay Floating BZDIOVRA Index		Annually		1/02/25		3,855,637	BRL		2,044
Receive Floating rate 3 Month USD-LIBOR Pay Fixed rate 2.25%		Quarterly		6/20/28		1,100,000			26,100
Receive Floating rate 1 Year-SOFR Pay Fixed rate 1.52%		Annually		3/08/32		1,000,000			171,808
Total Interest Rate Swap Contracts								$	249,577

*In U.S. dollars unless otherwise indicated.

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

Total Return Swap Contracts

Underlying Instrument

Financing Rate

Payment Frequency

Counterparty

Maturity Date

Notional Value

Value/Unrealized Appreciation (Depreciation)

OTC Swap Contracts

Equity Contracts - Longa

Energy Transfer LP

1-Month LIBOR + 0.50%

Monthly

CITI

10/18/23

$

24,712

$

1,806

Energy Transfer LP

1-Month LIBOR + 0.90%

Monthly

GSCO

1/26/24

33,014

(106)

Energy Transfer LP

1-Month LIBOR + 0.90%

Monthly

GSCO

2/14/24

47,495

(756)

944

Interest Rate Contracts - Longa

Government of Indonesia

SOFR + 0.55%

Monthly

JPHQ

2/17/33

117,102

413

Total - Total Return Swap Contracts

$

1,357

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

108

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

SCHEDULE OF INVESTMENTS (UNAUDITED)

K2 Long Short Credit Fund (continued)

Abbreviations

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

109

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

Notes to (Consolidated) Schedules of Investments (unaudited)

1. Organization

Franklin Alternative Strategies Funds (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of two separate funds. The Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (ASC 946) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946.

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

2. Financial Instrument Valuation

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

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

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

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

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

The Funds have procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Funds primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Funds’ business day. Events can occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the value of the Funds’ portfolio securities to the latest indications of fair value at 4 p.m. Eastern time. At February 28, 2023, certain securities may have been

110

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

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

3. Restricted Securities

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

At February 28, 2023, investments in restricted securities, excluding securities exempt from registration under the 1933 Act, were as follows:

Shares	Issuer	Acquisition Date		Cost		Value
K2 Long Short Credit Fund
923	Acosta Inc.		12/31/19	$	8,144	$	7,569
1,145	Acosta Inc., cvt. pfd.		12/31/19 – 1/17/23		50,262		50,266
	Total Restricted Securities (Value is 0.1% of Net Assets)			$	58,406	$	57,835

4. Unfunded Loan Commitments

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

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

Borrower	Unfunded Commitment
K2 Alternative Strategies Fund
Areas, Term Loan B1	$	44,382
Atlas AI, Initial Term Loan		215,000
Bausch Health Cos. Inc., Term Loan B		655,217
Carnival Corp., Term Loan B		200,000
Carnival Corp., Term Loan B		155,000
Citrix Systems Inc., Term Loan B		153,718
CSC Holdings LLC, Term Loan B		214,158
Euro Garage Ltd., Term Loan B1		125,991
Inspire Brands, Initial Term Loan		1,027,800
K. Hovnanian Enterprises Inc., Term Loan RC		1,000,000
Oldcastle BuildingEnvelope Inc., Term Loan RC		234,831
Solera Holdings, Initial Term Loan		1,027,800
Uber Technologies, Initial Term Loan		100,000
Upfield Group BV, Term Loan RC		316,677
Varsity Brands, Initial Term Loan		13,045
ZF Invest, Term Loan B		149,429
	$	5,633,048
K2 Long Short Credit Fund
Bausch Health Cos. Inc., Term Loan B	$	66,205
K. Hovanian Enterprises Inc., Term Loan RC		1,000,000
Oldcastle BuildingEnvelope Inc., Term Loan RC		49,073
Upfield Group BV, Term Loan RC		93,572
Varsity Brands, Initial Term Loan		2,325
	$	1,211,175

5. Investments in Affiliated Management Investment Companies

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

111

	Value at Beginning of Period		Purchases		Sales		Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Value at End of Period		Number of Shares Held at End of Period		Income from Securities Loaned
K2 Alternative Strategies Fund
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio, 4.17%	$	4,937,000	$	55,709,000	$	(57,081,000)		$-		$-	$	3,565,000		3,565,000	$	69,116

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

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

Fund Name	Subsidiary Namea	Consolidated Net Assets		Subsidiary Net Assets		% of Consolidated Net Assets
K2 Alternative Strategies Fund	K2 Holdings Investment Corp.	$	943,120,482	$	28,256,064		3.0%

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

7. Fair Value Measurements

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

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

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

● Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of financial instruments) The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

A summary of inputs used as of February 28, 2023, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:

		Level 1			Level 2				Level 3				Total
K2 Alternative Strategies Fund
Assets:
Investments in Securities:a
Equity Investmentsb	$		225,649,758	$		22,178,310		$		8,232,463		$		256,060,531
Convertible Bonds			–			129,628,771				–				129,628,771
Corporate Bonds and Notes			–			125,386,314				23,977				125,410,291
Corporate Bonds and Notes in Reorganization			–			5,995,608				–				5,995,608
Senior Floating Rate Interests			–			3,233,695				–				3,233,695
Foreign Government and Agency Securities			–			58,005,633				–				58,005,633
U.S. Government and Agency Securities			–			22,507,056				–				22,507,056
Asset-Backed Securities and Commercial Mortgage-Backed Securities			–			14,209,777				–				14,209,777
Options Purchased			2,479,920			305,338				–				2,785,258
Short Term Investments			262,312,261			4,866,517				–				267,178,778
Total Investments in Securities	$		490,441,939	$		386,317,019	d	$		8,256,440		$		885,015,398
Other Financial Instruments:
Futures Contracts	$		4,159,649	$		–		$		–		$		4,159,649
Forward Exchange Contracts			–			9,851,122				–				9,851,122
Swap Contracts			–			13,303,324				–				13,303,324
Total Other Financial Instruments	$		4,159,649	$		23,154,446		$		–		$		27,314,095
Liabilities:
Other Financial Instruments:
Options Written	$		780,889	$		37,317		$		–		$		818,206
Securities Sold Shorta			134,304,671			18,499,535	e			40,485				152,844,691
Futures Contracts			2,442,193			–				–				2,442,193
Forward Exchange Contracts			–			9,859,974				–				9,859,974
Swap Contracts			–			14,858,594				–	c			14,858,594
Unfunded Loan Commitments			–			99,659				–	c			99,659

112

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

		Level 1			Level 2			Level 3				Total
K2 Long Short Credit Fund
Assets:
Investments in Securities:a
Equity Investmentsb	$		443,009	$		54,904	$		57,835		$		555,748
Convertible Bonds			–			532,120			–				532,120
Corporate Bonds and Notes			–			12,011,165			–				12,011,165
Senior Floating Rate Interests			–			658,498			–				658,498
Foreign Government and Agency Securities			–			2,776,942			–				2,776,942
U.S. Government and Agency Securities			–			170,863			–				170,863
Asset-Backed Securities and Commercial Mortgage-Backed Securities			–			10,950,239			–				10,950,239
Options Purchased			2,040			23			–				2,063
Short Term Investments			21,506,085			–			–				21,506,085
Total Investments in Securities	$		21,951,134	$		27,154,754	$		57,835		$		49,163,723
Other Financial Instruments:
Forward Exchange Contracts	$		–	$		270,277	$		–		$		270,277
Swap Contracts			–			264,678			–				264,678
Total Other Financial Instruments	$		–	$		534,955	$		–		$		534,955
Liabilities:
Other Financial Instruments:
Options Written	$		12,400	$		–	$		–		$		12,400
Securities Sold Shorta			1,263,812			2,270,322			–				3,534,134
Futures Contracts			3,697			–			–				3,697
Forward Exchange Contracts			–			142,776			–				142,776
Swap Contracts			–			187,606			–				187,606
Unfunded Loan Commitments			–			14,650			–	c			14,650
Total Other Financial Instruments	$		1,279,909	$		2,615,354	$		–		$		3,895,263

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

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

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

^d  Includes foreign securities valued at $18,371,722, which were categorized as Level 2 as a result of the application of market level fair value procedures. See the Financial Instrument Valuation note for more information.

^e  Includes foreign securities valued at $1,312,358, which were categorized as Level 2 as a result of the application of market level fair value procedures. See the Financial Instrument Valuation note for more information.

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

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

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