A new alternative for managing volatile markets

Franklin K2 Alternative Strategies Fund

The unpredictability of today’s financial markets have many investors seeking new ways to reduce the impact of market volatility on their portfolios. Hedge strategies — a type of alternative investment strategy — have the potential to help investors weather this volatility.

Introducing Franklin K2 Alternative Strategies Fund:

Access — Lower minimums brings hedge strategies to more Canadians.
Convenience — Mutual fund structure offers daily liquidity and regular reporting.
Experience — Managing over $10 billion, K2 Advisors¹ has been solely focused on hedge fund investing for over 20 years.
Active Management — Offering protection in down markets and participation in up markets.

Hedge Strategies Have Historically Offered
Long-Term Equity-Like Returns with Less Risk

Risk vs. Return Comparison (20-Year Period Ending December 31, 2017)2

chart

Hedge Strategies Have Historically Outperformed During Canadian Market Downturns3

Down Calendar Years for Canadian Equities
25-Year Period Ending December 31, 2017

Hedge Strategies Have Historically Outperformed During Canadian Market Downturns

Hedge Strategies

Canadian Equity

5 Reasons To Consider A Mutual Fund Structure Instead Of A Traditional Hedge Fund

5 Reasons To Consider a Mutual Fund Structure Instead of a Traditional Hedge Fund

Active Allocation Among Strategies to Enhance Diversification

Franklin K2 Alternative Strategies Fund actively allocates and diversifies across four main hedge strategies. These active allocations are a result of its ongoing research and analytical efforts on identifying factors that influence returns and risks of the different strategies across market cycles.

Long/Short Equity (25%-40%)

Makes both long and short investments in stocks and stock indexes

Relative Value (30%-45%)

Looks for opportunities to profit from pricing inefficiencies

Event Driven (15%-30%)

Seeks to invest in companies undergoing corporate restructuring events

Global Macro (0%-20%)

Focuses on macroeconomic trends around the world

Please speak to your investment advisor or call our Client Services Team at 1-800-387-0830 to learn more about Franklin K2 Alternative Strategies Fund.

Investor Brochure

Additional Resources