Franklin K2 Alternative Strategies Fund

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.

Strategy Statement

"By dynamically allocating among strategies and institutional alternative managers, we aim to maximize participation in up markets while seeking to reduce risks in down markets."

Brooks Ritchey


Brooks Ritchey

Brooks Ritchey

  • Joined Franklin Templeton in 2005
  • Managed Fund Since 2014
Robert Christian

Robert Christian

  • Joined Franklin Templeton in 2010
  • Managed Fund Since 2014
Anthony M Zanolla, CFA

Anthony M Zanolla, CFA®

  • Joined Franklin Templeton in 2014
  • Managed Fund Since 2018


Overall Morningstar Rating As of 10/31/2020

Rating Category: Multialternative

The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating As of 10/31/2020

Years Ratings Funds
in category
4 Stars
4 Stars

Morningstar Style Box

We do not publish a style box for this fund.

Investing In The Fund

What Are the Risks?

  • All investments involve risks, including possible loss of principal.
  • The fund's performance depends on the skill in selecting, overseeing, and allocating Fund assets to the sub-advisors.
  • The fund is actively managed and could experience losses if the investment manager's and sub-advisors' judgment about particular investments made for the fund's portfolio prove to be incorrect.
  • Some sub-advisors may have little or no experience managing the assets of a registered investment company.
  • Foreign investments are subject to greater investment risk such as political, economic, credit and information risks as well as risk of currency fluctuations.
  • Investments in derivatives involve costs and create economic leverage, which may result in significant volatility and cause the fund to participate in losses (as well as gains) that significantly exceed the fund's initial investment.
  • Lower-rated or high yield debt securities involve greater credit risk, including the possibility of default or bankruptcy.
  • Currency management strategies could result in losses to the fund if currencies do not perform as the investment manager or sub-advisor expects.
  • The fund may make short sales of securities, which involves the risk that losses may exceed the original amount invested.
  • Merger arbitrage investments risk loss if a proposed reorganization in which the fund invests is renegotiated or terminated.
  • Liquidity risk exists when securities have become more difficult to sell, or are unable to be sold, at the price they have been valued.
  • Please see the prospectus and summary prospectus for information on these as well as other risk considerations.

Minimum Investment


How Financial Professionals Help You

Speak with your financial professional about whether this fund is appropriate for you.

Learn more from FINRA about How to Find and Work with an Investment Professional.