FRANKLIN ALTERNATIVE STRATEGIES FUNDS Consolidated Statement of Investments, February 29, 2020 (unaudited) Franklin K2 Alternative Strategies Fund Shares/ Country Rights Value Common Stocks and Other Equity Interests 38.6% Aerospace & Defense 0.8% a Bombardier Inc., B Canada 609,589 $ 435,989 Heico Corp. United States 24,307 2,621,510 L3harris Technologies Inc. United States 3,492 690,473 Lockheed Martin Corp. United States 29 10,726 United Technologies Corp. United States 39,784 5,195,393 a Virgin Galactic Holdings Inc. United States 15,557 382,702 9,336,793 Air Freight & Logistics 0.4% a Atlas Air Worldwide Holdings Inc. United States 42,910 1,146,555 DSV Panalpina A/S Denmark 30,568 3,101,571 Expeditors International of Washington Inc. United States 576 40,562 FedEx Corp. United States 9,117 1,287,047 5,575,735 Airlines 0.2% Delta Air Lines Inc. United States 63,445 2,926,718 Auto Components 0.1% BorgWarner Inc. United States 33,050 1,044,380 Automobiles 0.3% b Harley-Davidson Inc. United States 108,798 3,315,075 Thor Industries Inc. United States 1,489 112,286 3,427,361 Banks 0.5% b Bank of America Corp. United States 114,633 3,267,041 Barclays PLC United Kingdom 108,406 207,759 Citigroup Inc. United States 159 10,090 Citizens Financial Group Inc. United States 144 4,563 b JPMorgan Chase & Co. United States 26,274 3,050,674 Popular Inc. Puerto Rico 160 7,677 6,547,804 Beverages 0.3% Davide Campari-Milano SpA Italy 315,714 2,639,614 a Primo Water Corp. United States 2,332 32,648 Remy Cointreau SA France 7,383 752,092 3,424,354 Biotechnology 2.3% AbbVie Inc. United States 140 11,999 a Acadia Pharmaceuticals Inc. United States 4,333 185,192 a Agios Pharmaceuticals Inc. United States 13,547 643,212 a,d,e Alder Biopharmaceuticals Inc., rts., 2/20/49 United States 50,624 44,549 a Alexion Pharmaceuticals Inc. United States 8,965 842,979 Amgen Inc. United States 52 10,386 a Amicus Therapeutics Inc. United States 56,310 537,479 a Apellis Pharmaceuticals Inc. United States 35,960 1,244,935 a Argenx SE, ADR Netherlands 6,535 923,918 a Assembly Biosciences Inc. United States 54,198 982,068 a Biogen Inc. United States 1,954 602,594 a BioMarin Pharmaceutical Inc. United States 30,706 2,774,901 a,e Black Diamond Therapeutics Inc. United States 10,447 281,965 a Blueprint Medicines Corp. United States 1,686 91,263 a CRISPR Therapeutics AG Switzerland 2,190 117,055 a,e Cytokinetics Inc. United States 14,108 196,665 a Deciphera Pharmaceuticals Inc. United States 1,986 105,735 a Denali Therapeutics Inc. United States 8,481 167,669 a Exact Sciences Corp. United States 17,802 1,441,072 a Fate Therapeutics Inc. United States 30,784 898,893 Quarterly Consolidated Statement of Investments | See Notes to the Consolidated Statements of Investments. 1 FRANKLIN ALTERNATIVE STRATEGIES FUNDS CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED) Franklin K2 Alternative Strategies Fund (continued) Shares/ Country Rights Value Common Stocks and Other Equity Interests (continued) Biotechnology (continued) a Gossamer Bio Inc. United States 16,762 $ 220,085 a Immunomedics Inc. United States 69,424 1,110,784 a,f Innovent Biologics Inc., 144A China 73,859 339,759 a Intercept Pharmaceuticals Inc. United States 2,972 273,246 a,e Invitae Corp. United States 8,635 175,981 a Madrigal Pharmaceuticals Inc. United States 3,939 339,424 a Mirati Therapeutics Inc. United States 8,575 767,377 a Momenta Pharmaceuticals Inc. United States 14,226 402,454 a Natera Inc. United States 35,848 1,358,818 a Neurocrine Biosciences Inc. United States 6,407 606,743 a Nextcure Inc. United States 5,435 226,966 a,b PDL BioPharma Inc. United States 141,208 480,107 a Principia Biopharma Inc. United States 10,247 661,546 a ProQR Therapeutics NV Netherlands 46,914 332,620 a Ra Pharmaceuticals Inc. United States 75,527 3,531,643 a Sage Therapeutics Inc. United States 9,681 455,007 a,b Sarepta Therapeutics Inc. United States 18,983 2,172,984 a SpringWorks Therapeutics Inc. United States 6,838 218,542 a Turning Point Therapeutics Inc. United States 9,959 493,668 a uniQure NV Netherlands 2,992 153,968 a Vertex Pharmaceuticals Inc. United States 7,393 1,656,254 a,e Zai Lab Ltd., ADR China 5,100 280,347 28,362,852 † Building Products 0.0% a Johnson Controls International PLC United States 306 11,190 Capital Markets 0.9% f Amundi SA, 144A France 26,813 1,926,685 f Anima Holding SpA, 144A Italy 102,616 453,048 Ares Capital Corp. United States 9,464 162,686 The Blackstone Group Inc., A United States 68,600 3,693,424 Bolsas y Mercados Espanoles SHMSF SA Spain 23,282 887,964 E*Trade Financial Corp. United States 21,586 988,207 Invesco Ltd. United States 727 10,469 LPL Financial Holdings Inc. United States 132 10,491 Moody's Corp. United States 10,097 2,423,583 T Rowe Price Group Inc. United States 93 10,975 TD Ameritrade Holding Corp. United States 23,401 988,224 11,555,756 Chemicals 0.7% a Ingevity Corp. United States 9,228 415,629 a Livent Corp. United States 42,762 381,865 LyondellBasell Industries NV, A United States 21 1,501 The Sherwin-Williams Co. United States 15,014 7,758,484 8,557,479 Commercial Services & Supplies 1.3% a Advanced Disposal Services Inc. United States 263,464 8,710,120 b Cintas Corp. United States 14,823 3,953,887 Republic Services Inc., A United States 33,464 3,020,460 15,684,467 Communications Equipment 0.2% Accton Technology Corp. Taiwan 67,000 361,779 Cisco Systems Inc. United States 14,893 594,678 a Lumentum Holdings Inc. United States 14,716 1,145,199 2,101,656 2 FRANKLIN ALTERNATIVE STRATEGIES FUNDS CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED) Franklin K2 Alternative Strategies Fund (continued) Shares/ Country Rights Value Common Stocks and Other Equity Interests (continued) Construction Materials 0.2% Cemex SAB de CV, ADR Mexico 72,599 $ 238,125 LafargeHolcim Ltd., B Switzerland 61,741 2,873,640 3,111,765 Containers & Packaging 0.6% Ball Corp. United States 105,664 7,445,085 a Crown Holdings Inc. United States 3,488 245,904 7,690,989 Distributors 0.1% b Pool Corp. United States 8,084 1,705,401 Diversified Financial Services 0.1% a ARYA Sciences Acquisition Corp. United States 20,099 241,188 a,d,g One Call Corp. United States 4,965 595,597 836,785 Diversified Telecommunication Services 1.1% AT&T Inc. United States 323 11,376 a Bandwidth Inc., A United States 8,673 545,445 f China Tower Corp. Ltd., H, 144A China 3,046,000 752,305 a Telecom Italia SpA Italy 77,432 43,065 Verizon Communications Inc. United States 223 12,078 a,b Zayo Group Holdings Inc. United States 343,589 12,022,180 13,386,449 Electric Utilities 1.5% a,d,h Bruce Mansfield, Contingent Distribution United States 6,394,000 — Duke Energy Corp. United States 129 11,829 EDP - Energias de Portugal SA Portugal 494,627 2,309,260 b El Paso Electric Co. United States 174,899 11,870,395 a Energy Harbor Corp. United States 144,987 4,066,885 Entergy Corp. United States 39 4,560 Evergy Inc. United States 174 11,371 FirstEnergy Corp. United States 155 6,902 18,281,202 Electrical Equipment 0.1% Eaton Corp. PLC United States 123 11,158 a Osram Licht AG Germany 16,862 759,776 770,934 Electronic Equipment, Instruments & Components 1.1% a Anixter International Inc. United States 47,885 4,669,266 a Coherent Inc. United States 1,506 193,837 Corning Inc. United States 17,897 427,023 a Flex Ltd. United States 124,218 1,380,062 a Tech Data Corp. United States 47,336 6,740,173 13,410,361 Entertainment 0.6% Cineplex Inc. Canada 146,933 3,611,339 a NetFlix Inc. United States 2,761 1,018,892 a Spotify Technology SA United States 1,223 167,697 The Walt Disney Co. United States 20,983 2,468,650 7,266,578 Equity Real Estate Investment Trusts (REITs) 0.1% Gaming and Leisure Properties Inc. United States 182 8,130 c Iron Mountain Inc. United States 374 11,373 Taubman Centers Inc. United States 15,765 820,726 VICI Properties Inc. United States 16,182 405,521 1,245,750 3 FRANKLIN ALTERNATIVE STRATEGIES FUNDS CONSOLIDATED STATEMENT OF INVESTMENTS (UNAUDITED) Franklin K2 Alternative Strategies Fund (continued) Shares/ Country Rights Value Common Stocks and Other Equity Interests (continued) Food & Staples Retailing 0.3% b Costco Wholesale Corp. United States 13,198 $ 3,710,486 Food Products 0.1% China Agri-Industries Holdings Ltd. Hong Kong 2,131,764 1,172,853 Chocoladefabriken Lindt & Spruengli AG Switzerland 6 522,033 Tyson Foods Inc., A United States 137 9,293 1,704,179 Health Care Equipment & Supplies 1.6% Abbott Laboratories United States 19,906 1,533,359 a Alcon Inc. Switzerland 3,112 190,766 a Align Technology Inc. United States 1,240 270,754 a Boston Scientific Corp. United States 44,647 1,669,351 Danaher Corp., W United States 5,988 865,745 a DexCom Inc. United States 6,821 1,882,596 a Edwards Lifesciences Corp.