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.
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
For illustrative purposes only; not representative of the Fund’s portfolio composition or performance. Past performance is no guarantee of future results.
Down Calendar Years for Canadian Equities
25-Year Period Ending December 31, 2017
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.
Makes both long and short investments in stocks and stock indexes
Looks for opportunities to profit from pricing inefficiencies
Seeks to invest in companies undergoing corporate restructuring events
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.
1. K2/D&S Management Co., LLC is the legal entity doing business as K2 Advisors.
2. Source: Morningstar Research Inc. Canadian Equity is represented by the S&P/TSX Composite TR Index. U.S. Equity is represented by the S&P 500 Index. Global Equity is represented by the MSCI World Index. Hedge Strategies are represented by the HFRI Fund Weighted Composite Index. Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. While the information is based on index returns and does not represent the fund’s performance, it provides a general indication of the risk/return profile of hedge fund strategies. Returns data represents average annual total returns and assumes reinvestment of interest or dividends. Risk is measured by the annualized standard deviation of monthly total returns.
3. Source: Morningstar Research Inc.. Canadian Equity is represented by the S&P/TSX Composite TR Index. Hedge Strategies are represented by the HFRI Fund Weighted Composite Index. Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. Unlike most asset class indexes, HFR Index returns reflect fees and expenses.