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Franklin K2 Alternative Strategies Fund

Fund Category: AlternativeGo to Prices & Performance page
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Symbol FAAAX
CUSIP 352 41W 104
Fund Number 068
Inception Date1 Oct 11, 2013
Distributions Annually
Total Net Assets
(all share classes)
As of 02/28/2014
$336.6
(millions)

As of  04/17/2014

NAV2 $10.50  
NAV Change $0.02  
POP3 $10.50  
YTD Total Return at NAV 1.16%
Distribution Rate at NAV N/A
30-day Standardized Yield
N/A

Average Annual Total Returns
As of Quarter End 03/31/2014

w/ Sales Charge w/o Sales Charge
1 Yr
5 Yrs
10 Yrs
Life 0.39% 6.52%

Expense Ratio and Sales Charge As of 12/20/2013 (updated annually)

Gross Expense Ratio4 3.54%
Net Expense Ratio 2.75%
Max Initial Sales Charge 5.75%
CDSC 0.00%
12b-1 Fee 0.30%

Fund Description

Strategy Statement
Portfolio Managers
David Saunders
"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 Saunders
Joined K2 Advisors in 1994
Managed Fund since 2013

Strategy, Benefits

Strategy

  • 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.

Benefits

  • 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 nearly 20 years of hedge fund experience and a deep understanding of the hedge strategies they cover.

Results

Hypothetical $10K Investment

Hypothetical $10K Investment

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.
  • The Fund is actively managed and could experience losses if the Investment Manager’s and Sub-Advisors’ judgments related to the Fund’s investments prove to be incorrect.
  • 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 involves the risk that losses may exceed the original amount invested.
  • Lower-rated or high yield debt securities involve greater credit risk, including the possibility of default or bankruptcy.
  • 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 at the price they have been valued.
  • The Fund may invest in investment funds, which may be more costly than investing in the underlying securities directly.
  • These and other risk considerations are discussed in the Fund’s prospectus.

Minimum Investment

$1,000.00

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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Important Legal Information

Footnotes

For U.S. residents only.