PRICE AND YTD RETURN As of 07/25/2016

NAV down $-0.01 $10.73
POP $11.38
YTD Total return at Nav 0.94%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 06/30/2016

Sales Charge

1 YEAR RETURN -7.65%
Since inception Inception: 10/11/2013 0.98%


Investment Category Multi Strategy
Distributions Annually
CUSIP 352 41W 104
Fund Number 068
Inception Date Oct 11, 2013
Total Net Assets (all share classes) As of 06/30/2016 $1,222.1 (M)
Distribution Rate at NAV N/A
30-Day Standardized yield N/A

SALES CHARGE, EXPENSES, & FEES As of 10/01/2015 (updated annually)

Gross Expense Ratio 3.49%
Net Expense Ratio 2.85%
Capped Expense Ratio 1.95%
Max Initial Sales Charge 5.75%
CDSC 0.00%
12b-1 Fee 0.25%

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."

David C. Saunders


David C. Saunders

David C. Saunders

  • Joined Franklin Templeton in 1994
  • Managed Fund Since 2013
Brooks Ritchey

Brooks Ritchey

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

Robert Christian, MBA

  • Joined Franklin Templeton in 2010
  • Managed Fund Since 2014

Strategy, Benefits, Results


  • The fund seeks to add value through active portfolio management, tactical allocation and diversification across four main alternative strategies in a multi-manager fund structure.
  • The hedge strategies include long short equity, relative value, global macro and event driven.


  • Portfolio Complement. An allocation to hedge strategies provides an alternative source of returns while seeking to reduce risk.
  • Diversified Alternative Solution. The fund provides one-stop access to a diversified selection of institutional hedge fund managers and strategies.
  • A Combination of Disciplined Capabilities. The investment process combines manager research with asset allocation analysis to construct a multi-manager, multi-strategy fund seeking to participate on the upside and reduce the downside.
  • Risk Management. The investment team applies extensive risk processes, systems and data to help ensure risks can be continually measured, monitored and managed.
  • Alternatives Expertise. K2 Advisors has 20 years of hedge fund experience and a deep understanding of the hedge strategies they cover.

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 Advisors Help You

Speak to your financial advisor about whether this fund is appropriate for you. If you don't have a financial advisor, request a referral.

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