K2 - AN ALTERNATIVE FOR NAVIGATING
VOLATILE MARKETS

As investors, financial markets have been kind to us in recent years. We've seen steady growth in most economies, and positive fundamentals can still be found in many markets. But this could all change in the months and years ahead - US interest rates are on the rise, populist governments are taking power and a trade war is brewing between the United States and China.

The full impact of these issues is currently unknown, so what might help to position your investments for unpredictable financial market?

Franklin K2 Liquid Alternative Funds provides you with a different source of return by investing in a variety of hedge fund managers, whose hedge strategies we package in a familiar mutual-fund format. Hedge strategies have the potential to reduce the impact of volatility on your investments. And that means you may be able to keep more of your money when stock and bond prices are declining.

Franklin K2 Alternative Strategies Fund A (acc) USD

DISCRETE PERFORMANCE

As of 30/06/2018

Share ClasseJUN-17 /
JUN-18
JUN-16 /
JUN-17
JUN-15 /
JUN-16
JUN 14 /
JUN 15
JUN-13 /
JUN-14
A (acc) USD 2.84% 6.23% -2.19% - -

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Past performance is not an indicator or a guarantee of future performance.

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The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Performance details provided are in share class currency, include the reinvested dividends gross of basic rate tax and are net of management fees. Sales charges and other commissions, other taxes and relevant costs to be paid by an investor are not included in the calculations. Performance may also be affected by currency fluctuations.

K2 Advisors* - A Trusted, Experienced Investment Partner

Franklin K2 Alternative Strategies Fund is advised by K2 Advisors, an organization with 24 years' experience in hedge fund investing. Over its history, K2 has grown into one of the largest advisors of multi-manager portfolios, offering a range of alternative solutions to its client base.

  • $11.8 billion in assets under management (AUM)
  • Investments in approximately 90 managers across the full spectrum of hedge fund strategies
  • A pioneer in obtaining transparent holdings information from hedge strategies
  • 39 investment professionals worldwide
  • The ability to assist clients in all aspects of hedge fund investing
  • A global presence with personnel in the United States, the United Kingdom, Japan, Australia, and Hong Kong

* As of 1/8/2018

GET STARTED WITH FRANKLIN K2 LIQUID ALTERNATIVE FUNDS

Work with your financial advisor to fully capture the potential of new sources of return through hedged strategies. Together you can decide how best to incorporate these strategies into your portfolio.

CONTACT US

MAKING HEDGE FUNDS ACCESSIBLE

We understand that hedge funds can appear an opaque asset class for many investors. Initially only available via private placement, they have rarely been sold to the retail market. Non-professional investors tend to prefer liquid investments where it's easy to redeem capital, and this is not usually the case with hedge funds.


Our aim with the Franklin K2 Liquid Alternative Funds is to turn this idea on its head, providing exposure to hedge strategies via a familiar mutual-fund structure. That means offering daily liquidity, security-level transparency, fees that are lower than those traditionally associated with hedge funds, and additional regulatory oversight. The initial investment required is also lower.

WHAT ARE THE KEY RISKS?

Franklin K2 Alternative Strategies Fund

The value of shares in the Fund and income received from it can go down as well as up and investors may not get back the full amount invested. Performance may also be affected by currency fluctuations. Currency fluctuations may affect the value of overseas investments. The Fund seeks to achieve its targeted investment objective by allocating its assets across multiple “alternative” strategies and by investing in a wide range of assets. Such assets and investment instruments have historically been subject to price movements due to such factors as general stock market volatility, sudden changes in interest rates, or fluctuations in commodity prices. The Fund will seek to limit volatility using hedged strategies. As a result, the performance of the Fund can fluctuate moderately over time. Credit risk: the risk of loss arising from default that may occur if an issuer fails to make principal or interest payments when due. This risk is higher if the Fund holds low-rated, non-investment-grade securities. Currency risk: the risk of loss arising from exchange-rate fluctuations or due to exchange control regulations. Derivatives risk: the risk of loss in an instrument where a small change in the value of the underlying investment may have a larger impact on the value of such instrument. Derivatives may involve additional liquidity, credit and counterparty risks. Liquidity risk: the risk that arises when adverse market conditions affect the ability to sell assets when necessary. Reduced liquidity may have a negative impact on the price of the assets. Operational risk: the risk of losses resulting from errors or failures arising from the people, systems, service providers or processes upon which the Fund depends. Targeted return risk: there is no guarantee that the Fund will achieve its targeted objective. The Fund seeks to achieve its returns over a full market cycle to achieve a positive return. Capital invested in the Fund may decline in value. For full details of all of the risks applicable to this Fund, please refer to the “Risk Considerations” section of the Fund in the current prospectus of Franklin Templeton Investment Funds.

Other significant risks include: credit risk, derivatives risk, liquidity risk, operational risk, targeted return risk. For full details of all of the risks applicable to this Fund, please refer to the “Risk Considerations” section of the Fund in the current prospectus of Franklin Templeton Investment Funds.

†) Franklin K2 Alternative Strategies Fund, Franklin K2 Long Short Credit Fund, Franklin K2 Global Macro Opportunities Fund - Sub-funds of the Luxembourg-domiciled SICAV Franklin Templeton Investment Funds

The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator or a guarantee of future performance. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, your performance may also be affected by currency fluctuations.