Franklin K2 Global Macro Opportunities Fund

This fund or share class has been liquidated or reorganized.

This fund or share class has been liquidated or reorganized.

INVESTMENT PHILOSOPHY, STRATEGY AND APPROACH

Investment Philosophy

Our investment philosophy is to work to deliver total returns by seeking to produce attractive risk-adjusted returns with lower correlation to traditional asset classes and reduced volatility. We believe that robust risk management, rigorous manager research and active strategy allocation are key to a successful multi-manager alternatives fund.

Investment Process

K2 Advisors (K2) combines manager research with strategy allocation analysis to construct a dynamic multimanager fund that seeks to reduce downside risk while providing return potential from complementary alternative sources of returns.

  • Dynamic alternative strategy allocation analysis is performed from a top-down perspective. Through this analysis, K2 seeks to identify factors influencing strategy-level returns and risks across market cycles.
  • Utilizing holdings-based transparency, K2 seeks to identify alpha-generating managers through manager research and monitoring. On an ongoing basis, K2 then monitors each manager’s market exposures as well as operational and investment risks.
  • K2’s portfolio construction process aims to manage overall portfolio exposures and risks through extensive modelling and scenario analysis.