A NEW ALTERNATIVE TO COMPLEMENT YOUR PORTFOLIO

Franklin K2 Alternatives Fund

Broad market downturns and ongoing uncertainty have caused investors to look for new ways to add diversification to their portfolios.  For many years, ultra-high-net-worth individuals and institutions have been using alternative investments alongside their equity and fixed income holdings to generate compelling risk-adjusted returns and provide downside protection.  And now, due to recent regulatory changes, these alternative strategies are more accessible, to more Canadians than ever before.

Leveraging the specialized expertise of our K2 Advisors team, we are proud to launch Franklin K2 Alternatives Fund - a one-stop, diversified, low-fee alternative mutual fund that combines the benefits of a sophisticated alternatives solution with the familiarity and ease-of-use of a mutual fund. 

A Great Complement to Traditional Portfolios

Historically, alternatives have helped smooth out returns of traditional portfolios made up of equities and fixed income. Investing some of your money in alternatives may help reduce risk and increase return potential in your overall investment mix.

Allocation Frontier – 20-year period ending December 31, 2018

Hedge Strategies

Equity

Fixed Income

Hedge strategies are represented by the HFRI Fund Weighted Composite Index USD. Equity is represented by the MSCI World Index USD.Fixed Income is represented by the Bloomberg Barclays Global Aggregate Index. Indexes are unmanaged and one cannot invest directly in an index. Returns data represents cumulative total returns and assumes reinvestment of interest or dividends. They do not reflect any fees, expenses or sales charges. Unlike most asset class indexes, HFR Index returns reflect fees and expenses.

One-Stop Diversification

Franklin K2 Alternatives Fund is an actively managed alternative mutual fund that utilizes three distinct K2-managed strategies to provide greater portfolio diversification in up and down markets.  These strategies have low correlations to traditional equity and fixed income investments…

…and each other.

During times of heightened volatility, the fund can use additional derivative strategies (Conditional Risk Overlay) for more downside protection.

Accessible, Attractively Priced
As an alternative mutual fund, Franklin K2 Alternatives Fund combines some of the best features of a sophisticated alternative solution with the familiarity and accessibility of mutual funds.  Investors can now tap into K2’s expertise as one of the world’s largest hedge fund-of-fund portfolio managers starting with a low investment minimum and 0.75% management fee*. 

A Trusted, Experienced Investment Partner

Franklin K2 Alternatives Fund is sub-advised by K2 Advisors;

  • A global team with 24 years' experience in alternatives investing
  • More than $10.9 US billion in assets under management**
  • 39 investment professionals located in offices in the United States, United Kingdom, Japan, Hong Kong and Australia

*Series F 
**As of February 1, 2019