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.

Investing In The Fund

What Are the Risks?

  • All investments involve risks, including possible loss of principal. The market values of securities owned by the fund will go up or down, sometimes rapidly or unpredictably.
  • The fund's performance depends on the manager's skill in selecting, overseeing, and allocating fund assets to the sub-advisors.
  • The fund is actively managed and could experience losses if the manager's and sub-advisors' judgment about particular fund portfolio investments prove to be incorrect.
  • Some sub-advisors may have little or no experience managing the assets of a registered investment company.
  • Bond prices generally move in the opposite direction of interest rates.
  • Changes in the financial strength of a bond issuer or in a bond's credit rating may affect its value.
  • Lower-rated or high yield debt securities (“junk bonds”) involve greater credit risk, including the possibility of default or bankruptcy.
  • Liquidity risk exists when securities become more difficult to sell, or are unable to be sold, at the price at which they’ve been valued.
  • 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.
  • The fund may make short sales of securities, which involves the risk that losses may exceed the original amount invested.
  • Please see the prospectus and summary prospectus for information on these as well as other risk considerations, including the risks of foreign investments.

Minimum Investment

See Prospectus

How Financial Advisors Help You

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