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Managed Fund Since 2024
Alternatives
FASCX K2 Alternative Strategies Fund
- Diversified. Invests across multiple hedge strategies, including long short equity, event drive, relative value, and global macro.
- Flexible. Allocates tactically to enhance diversification as market opportunities evolve.
- Curated. Uses a rigorous due diligence process for reviewing and selecting underlying managers.
Popular Documents
Upcoming fund name change
Effective on or about January 30, 2026, this fund will change its name to Franklin Alternative Strategies Fund. Refer to the fund’s prospectus for more information. Date is subject to change.
Overview
Fund Facts
Fund description
The fund's principal investment goal is capital appreciation with lower volatility relative to the broad equity markets. The fund seeks to achieve its investment goal by allocating its assets across multiple alternative strategies, primarily including Long Short Equity, Relative Value, Event Driven and Global Macro.
- Benchmark
- HFRX Global Hedge Fund Index
- Additional Benchmark
3 - ICE BofA US 3-Month Treasury Bill Index
- Fund Inception Date
- 10/11/2013
- Dividend Frequency, if any
- Annually
- VAR
As of 09/30/2025 (Updated Monthly) - -1.30%
Identifiers
- Ticker
- FASCX
- Fund Number
- 520
- CUSIP Code
- 35241W203
Average Annual Total Returns As of 09/30/2025
Class C
- 7.07%1 Year
- 6.40%3 Years
- 3.13%5 Years
- 2.62%10 Years
- 2.80%Since Inception
10/11/2013
Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.
Asset Exposure
As of 09/30/2025 % of Net Exposure (Updated Monthly)
Fixed Income37.33%
Equity18.70%
Commodities0.04%
Currency-3.66%
Additional Fund Info
- Share Class Inception Date
- 10/11/2013
- Investment Style
- Multi Strategy
- Lipper Classification
- Alternative Multi-Strategy Funds
- Morningstar Category
- Multistrategy
Manager and Commentary
About the Team
Franklin Templeton Investment Solutions
Franklin Templeton Investment Solutions (FTIS) is a leader in multi-asset, quantitative, and hedged solutions, leveraging a global network of investment teams to offer innovative and diversified strategies. With a focus on long-term investing, we combine deep research, active management, and data-driven insights to create solutions which seek to meet the evolving needs of investors worldwide.
Commentary Highlights
June 30, 2025- Markets: Global stocks advanced during the quarter, despite an April pullback after US President Donald Trump’s announcement of “reciprocal” tariffs proved more sweeping and severe than many had expected. leading to significant financial market volatility. However, global trade tensions eased during the rest of the quarter as the United States delayed planned tariff hikes, reducing investor fears of a global recession. Credit markets broadly witnessed positive absolute returns over the period, as spreads tightened. Higher-rated credits generally underperformed their lower-rated counterparts. The global commodities market reflected a complex interplay of supply-demand dynamics, war and geopolitical shifts, and macroeconomic factors, and the Refinitiv CoreCommodity CRB Index (CRB) declined over the period.
- Contributors: The Long Short Equity and Global Macro strategy relative drove the portfolio’s quarterly advance, led by Long Short Equity subadvisors Electron and ActusRay, as well as Global Macro subadvisors BlueBay and CFM. Overall, all four primary strategies and eight of 10 underlying managers contributed, along with the Strategic Overlay. At the asset-class level, long fixed income positioning made the largest contribution, followed by equity positioning, which was long overall. Cash positioning, credit and private equity also contributed, though more modestly.
- Detractors: Subadvisors Graham (Global Macro) and Athena (Relative Value) posted negative returns and were the only two subadvisors to weighed on performance during the period. For Graham, commodity positioning drove detraction, largely due to crude oil longs, with additional weakness in currency positioning. Athena’s equity positioning, which was long overall, was the key driver, with the largest detraction coming from short positioning in the IT sector.
- Outlook: Amid market uncertainty, geopolitical tensions, and U.S. President Donald Trump’s transactional orientation and propensity to change his goals, we believe the outlook for hedge fund strategies remains constructive. Heightened dispersion and constrained liquidity are creating compelling opportunities for dynamic, market-neutral, and nimble investment approaches.
Franklin Templeton Investment Solutions
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Managed Fund Since 2024
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Managed Fund Since 2014
Latest Insights
October 13, 2025
October 10, 2025
July 17, 2025
Performance
Average Annual Total Returns
As of 09/30/2025
Selected Month September 2025
Class C - With Sales Charge (POP) (%)
Month End
As of 09/30/2025
Class C - Without Sales Charge (NAV) (%)
Month End
As of 09/30/2025
HFRX Global Hedge Fund Index (%)
Month End
As of 09/30/2025
ICE BofA US 3-Month Treasury Bill Index (%) 3
Month End
As of 09/30/2025
Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all Fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized.
Ratings 10
©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Portfolio
Assets
As of09/30/2025 (Updated Monthly)
- Total Net Assets
- $531.48 Million
Portfolio Statistics
As of 09/30/2025 (Updated Monthly)
Value at Risk
- Fund
- -1.30%
Manager Allocations
As of 09/30/2025 % of Invested Capital (Updated Monthly)
Relative Value
Apollo Credit Management, LLC
Lazard Asset Management, LLC
K2/D&S Management Co., LLC
Long Short Equity
ActusRayPartners Limited
Electron Capital Partners, LLC
Jennison Associates, LLC
Global Macro
Capital Fund Management SA
BlueBay Asset Management, LLP
Graham Capital Management, L.P.
Distributions & Tax
- Distribution Frequency
- AnnuallyThis fund is an ex-Dividend fund
- Capital Gain Distributions
- December
Final composition of the current year’s distribution—income, capital gains and/or return of capital—are based on US tax rules and will be determined by February of the following year. For tax characterization of a distribution, such as return of capital and tax-exempt income, click on the “Tax Information” tab above.
Distributions Per Share
12/27/2024
Annually, a fund must distribute all realized capital gains net of realized losses, so the fund will not be subject to an entity level income tax. A fund’s capital gain distribution in a particular year may be a result of the disposition of holdings that appreciated in value during prior years. Thus, while the fund may gain or lose value over the course of a year, a capital gain distribution paid by the fund may not be indicative of current performance of the fund.
The distributable amount of net capital gains are paid on a per-share basis to all investors who hold shares of the fund on the record date of the distribution and are recognized by the shareholder for tax purposes as of the ex-date of the distribution, regardless of when the gains or losses arose in the fund. Net gains on holdings held long term by the fund would be distributed to shareholders as a long-term capital gain distribution no matter how long the shareholder has owned shares in the fund.
Refer to the fund’s annual report or statement of additional information for specific information regarding distributions.
Pricing
Documents
Fund Literature
| Name | Download | Add to Cart | |
|---|---|---|---|
| Factsheet - K2 Alternative Strategies Fund | |||
| Product Commentary - K2 Alternative Strategies Fund |
Regulatory Documents
| Name | Download | Add to Cart | |
|---|---|---|---|
| Annual Report - K2 Alternative Strategies Fund - Class C | |||
| Annual Financial Statements and Other Information - K2 Alternative Strategies Fund | |||
| Semi-Annual Report - K2 Alternative Strategies Fund - Class C | |||
| Semi-Annual Financial Statements and Other Information - K2 Alternative Strategies Fund | |||
| Prospectus - K2 Alternative Strategies Fund | |||
| Summary Prospectus - K2 Alternative Strategies Fund | |||
| Statement of Additional Information - K2 Alternative Strategies Fund | |||
| Fiscal Q1 Holdings - K2 Fund | |||
| Fiscal Q3 Holdings - K2 Fund |
Risks
All investments involve risks, including possible loss of principal. The fund is actively managed and could experience losses if the investment manager's and subadvisors' judgment about particular investments made for the fund's portfolio prove to be incorrect. The allocation of assets among different strategies, asset classes and investments may not prove beneficial or produce the desired results. Some subadvisors may have little or no experience managing the assets of a registered investment company. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. Currency management strategies could result in losses to the fund if currencies do not perform as expected. Short selling is a speculative strategy. Unlike the possible loss on a security that is purchased, there is no limit on the amount of loss on an appreciating security that is sold short. Investments in companies engaged in mergers, reorganizations or liquidations also involve special risks as pending deals may not be completed on time or on favorable terms. Liquidity risk exists when securities or other investments become more difficult to sell, or are unable to be sold, at the price at which they have been valued. These and other risks are discussed in the fund’s prospectus.
Important Information
Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.
Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.
Franklin Distributors, LLC. Member FINRA, SIPC. All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.
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Important data provider notices and terms available at www.franklintempletondatasources.com.
Performance data quoted represents past performance, which does not guarantee future results.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
Monthly reporting HFRX Index constituents are comprised of private hedge funds. The HFRX Global Hedge Fund Index is designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies, including but not limited to convertible arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage, and relative value arbitrage. The strategies are asset weighted based on the distribution of assets in the hedge fund industry.
Source: Hedge Fund Research, Inc. The HFR indices are being used under license from Hedge Fund Research, Inc., which does not endorse or approve of any of the contents of this report. Unlike most asset class indexes, the HFR Index reflect fees and expenses.
The ICE BofA 3-Month U.S. Treasury Bill Index is an unmanaged index that comprises a single U.S. Treasury issue with approximately three months to final maturity, purchased at the beginning of each month and held for one full month.
Source: The index data referenced herein is the property of Intercontinental Exchange ("ICE") and/or its licensors and has been licensed for use by Franklin Templeton. ICE and its licensors accept no liability in connection with this use.
Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.