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Managed Fund Since 2024
Alternatives
FSKKX Franklin 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
Total Net Assets
$521.93M
As of 12/31/2025 (Updated Monthly)
Fund name 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
4 - ICE BofA US 3-Month Treasury Bill Index
- Fund Inception Date
- 10/11/2013
- Dividend Frequency, if any
- Annually
- VAR
As of 12/31/2025 (Updated Monthly) - -1.73%
Identifiers
- Ticker
- FSKKX
- Fund Number
- 820
- CUSIP Code
- 35241W302
Average Annual Total Returns As of 12/31/2025
Class R
- 7.80%1 Year
- 7.00%3 Years
- 2.83%5 Years
- 3.25%10 Years
- 3.32%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 12/31/2025 % of Net Exposure (Updated Monthly)
Fixed Income37.37% | |
Equity22.60% | |
Currency5.50% | |
Commodities2.26% |
Additional Fund Info
- Share Class Inception Date
- 10/11/2013
- Investment Style
- Multi Strategy
- Lipper Classification
- Alternative Multi-Strategy Funds
- Morningstar Category
9 - 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
December 31, 2025- Markets: Global equities rose in the fourth quarter, led higher by emerging markets (EM) and European stocks. Equity markets were characterized by a rotation towards value, as investors worried about the elevated valuations of technology stocks amid fears of an artificial intelligence (AI) bubble. Continued monetary easing by the US Federal Reserve (Fed) supported equities, but investors weighed some softer sentiment across the AI complex, shifting expectations for Fed action and uneven macroeconomic signals. US equity returns were subdued as markets digested slower earnings momentum and growing differentiation within technology. Global fixed income markets strengthened during the period, and credit markets witnessed positive absolute returns despite stable to modestly wider spreads. Sectors viewed as more risky, such as EM and high-yield bonds, broadly outperformed. In commodities, the quarter was a metals-led period defined by record highs, heightened speculative swings and dominant industrial demand narratives, while oil and many agricultural markets lagged.
- Contributors: The Long Short Equity, Relative Value and Global Macro strategies drove the portfolio’s quarterly advance, led by Long Short Equity subadvisors Jennison and ActusRay. Global Macro subadvisor BlueBay was also a key contributor. Overall, three of the four primary strategies contributed, with no representation for the Event Driven strategy. Seven of nine underlying managers contributed. At the asset-class level, long equity positioning made the largest contribution, followed by long fixed income positioning.
- Detractors: While all active strategies contributed, two subadvisors—CFM and Graham—detracted. Commodities positioning, which was long overall, was a key detractor, followed by credit and interest rate positioning.
- Outlook: As we enter 2026, the macro landscape is defined less by a single dominant narrative and more by the collision of multiple regimes—economic, geopolitical and market‑structural—that are operating on different time horizons. Together they create an environment that is both unusually fluid and unusually path‑dependent. In our view, 2026 is not a year for static positioning. It is a year that rewards selectivity, agility, and diversification, with hedge fund strategies uniquely positioned to extract value from a macro environment where traditional asset classes may offer more limited upside and asymmetric downside risks.
Franklin Templeton Investment Solutions
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Managed Fund Since 2024
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Managed Fund Since 2014
Latest Insights
January 23, 2026
January 21, 2026
January 9, 2026
October 13, 2025
Performance
Calendar Year Returns
As of 12/31/2025
Class R - With Sales Charge (POP) (%)
Class R - Without Sales Charge (NAV) (%)
HFRX Global Hedge Fund Index (%)
ICE BofA US 3-Month Treasury Bill Index (%)
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 3
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Portfolio
Assets
As of12/31/2025 (Updated Monthly)
- Total Net Assets
- $521.93 Million
Portfolio Statistics
As of 12/31/2025 (Updated Monthly)
Value at Risk
- Fund
- -1.73%
Strategy Allocation 12
As of 12/31/2025 (Updated Monthly)
| Strategy | Target Allocation | Actual Allocation |
|---|---|---|
| Relative Value | 30 - 45% | 32.94% |
| Long Short Equity | 25 - 40% | 38.34% |
| Global Macro | 0 - 30% | 28.72% |
Distributions & Tax
Federal ID Number 46-2936899
For information on tax years prior to 2008, please contact us2025 tax information will be available in early February
These amounts represent distributions paid by the fund, foreign taxes passed through (if any), and other distribution characteristics for the calendar year selected. These amounts are reported to shareholders on Form 1099-DIV.
Distributions per Share ($)
Data not currently available.
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 - Franklin Alternative Strategies Fund - Class R | |||
| Annual Financial Statements and Other Information - Franklin Alternative Strategies Fund | |||
| Semi-Annual Report - Franklin Alternative Strategies Fund - Class R | |||
| Semi-Annual Financial Statements and Other Information - Franklin Alternative Strategies Fund | |||
| Prospectus - Franklin Alternative Strategies Fund | |||
| Summary Prospectus - Franklin Alternative Strategies Fund | |||
| Statement of Additional Information - Franklin Alternative Strategies Fund | |||
| Fiscal Q1 Holdings - Franklin Alternative Strategies Fund | |||
| Fiscal Q3 Holdings - Franklin Alternative Strategies 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
Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total returns, distribution rate, and yields reflect any applicable expense reductions and fee waivers; without these reductions, the results would have been lower.
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.
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.
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.