Fund Description

The fund seeks total return over a complete market cycle (through a combination of current income, capital preservation and capital appreciation), by allocating its assets across multiple alternative fixed income and credit strategies.

Strategy Statement

"Dynamically allocating among carefully selected alternative managers, we pursue opportunities across multiple fixed income and credit strategies while diligently managing their associated risks."

Charmaine Chin

Management

Charmaine Chin

Charmaine Chin

  • Joined Franklin Templeton in 2008
  • Managed Fund Since 2015
Jeff Schmidt

Jeff Schmidt

  • Joined Franklin Templeton in 2013
  • Managed Fund Since 2015
Robert Christian

Robert Christian

  • Joined Franklin Templeton in 2010
  • Managed Fund Since 2015
David C. Saunders

David C. Saunders

  • Joined Franklin Templeton in 1994
  • Managed Fund Since 2015

Strategy, Benefits, Results

Strategy

  • Aims to add value via active management of investments across a variety of fixed income and credit strategies in a multi-manager fund structure
  • The fund managers are*:
    • Apollo Credit Management, LLC
    • Candlewood Investment Group, L.P.
    • Chatham Asset Management, LLC
    • Ellington Global Asset Management, LLC
    • EMSO Partners Limited

* Manager roster includes managers that have been appointed as sub-advisors or managers of investment funds. K2 may determine in its sole discretion to not allocate to one or more of the managers and or to add new managers. Accordingly, the manager roster is presented for illustrative purposes only, and should not be viewed as predictive of the ongoing composition of the fund's portfolio, which may change at any time.

Benefits

  • Fixed Income Alternative. An investment in alternative fixed income strategies provides investors’ fixed income allocations an alternative source of returns that often moves independently of the broader fixed income markets.
  • Focus on Risk Adjusted Performance. K2’s fund managers focus on trying to participate in market upturns while seeking to limit the impact of negative market events that can be damaging to fixed income investments.
  • Access to Hedge Strategies. K2’s robust manager research process seeks to provide access to a talented group of hedge fund managers and strategies.
  • Disciplined Capabilities Steeped in Experience. Built with 20 years of experience, K2 focuses on manager research, strategy allocation and portfolio construction within a culture deeply focused on managing risk.
  • Risk Management. The investment team applies extensive risk processes, systems and data to help ensure risks can be continually measured, monitored and managed.

Selling The Fund

  1. Emphasize how the fund’s alternative strategies may provide diversification for existing fixed income investments.

  2. Discuss K2’s focus on seeking out opportunities for strong risk-adjusted performance.

  3. Highlight K2’s experience working with hedge managers and their strategies, and the organization’s commitment to risk management.

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