Historical data highlights the trend for alternative strategies to reduce downside risk in a portfolio, an important outcome during crises and the resultant negative equity market conditions.
Is It Possible to Make a Portfolio More Resilient?
COVID-19 has put extensive pressure on global markets, making many increasingly unpredictable. The increased probability of trade wars, recession, and funding gaps means volatility is going nowhere soon. Alternative strategies offer independence from market cycles. By diversifying beyond traditional asset classes, investors can explore new routes to returns while guarding against risk.
Fine-tune your portfolio with the liquid alternatives from K2 Advisors.
Reasons to Invest in Alternative Strategies
Reduce Downside Risk
Enhance Portfolio Diversification
Alternative strategies complement the traditional stock and bond portfolio. By diversifying with alternatives, investors may reduce portfolio exposure to volatility. New sources of return mean less dependence on traditional asset classes.
Balance Between Risk and Return
Alternative strategies can offer attractive returns over the long term. Historical trends indicate equity-like returns with bond-like risks, making the strategy an alternative with potential.
What Are the Most Common
Alternative Strategies?
Financial markets are always changing. Strategies that make it possible to react quickly have the potential to find more traction. Investing in alternative strategies can help accelerate portfolio diversification.
How Can I Invest?
Fine-tune your portfolio with our range of liquid alternative solutions! We present investors both multi-strategy and single-strategy solutions. The strategies in a multi-strategy fund are each managed by separate managers whereas a single-strategy solution is run by one manager. All investment opportunities are liquid and available in a UCITS format.
Multi-Strategy Solutions
Franklin K2 Alternative Strategies Fund1
Multi-Strategy Solution
A fund that invests across multiple alternative hedge strategies to provide downside protection and strong diversification to traditional equities and fixed income assets.
Single-Strategy Solutions
Franklin K2 Wellington Technology Long Short UCITS Fund2
Long-Short Equity
An alternative fund that invests primarily in equity-related companies from information technology, communication services, and consumer discretionary sectors worldwide.
Franklin K2 Electron Global UCITS Fund2
Long-Short Equity
An alternative fund that invests primarily in equity-related companies in the global infrastructure and utility sectors within the US, Europe, Asia and Latin America.
Franklin K2 Ellington Structured Credit UCITS Fund2
Relative Value
An alternative fund that invests in a diversified portfolio of credit-related transferable securities and financial derivative instruments through structured-credit and other related securities.
Franklin K2 Bardin Hill Arbitrage UCITS Fund2
Event Driven
An alternative fund that invests in securities primarily of companies involved in mergers, acquisitions, restructurings, spinoffs, and liquidations and may participate in such transactions.
Franklin K2 ActusRay European Alpha UCITS Fund2
Long-Short Equity
An alternative fund that invests in European long-short equities through discretionary probabilistic investing. The Fund's investment objective is to seek capital appreciation with lower volatility relative to the European equity markets.
Franklin K2 Athena Risk Premia UCITS Fund2
Risk Premia
An alternative fund that pursues various risk premia strategies to long-term capital appreciation with lower volatility relative to the broader equity markets and less correlation to traditional asset class investments.
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A sub-fund of Franklin Templeton Investment Funds, a Luxembourg-registered SICAV (“FTIF”).
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A sub-fund of Franklin Templeton Alternative Funds, a Luxembourg registered SICAV (“FTAF”).
Why Choose K2 Advisors for Alternative Strategies?
A Pioneer in Liquid Alternatives
- A Franklin Templeton Investment Company since 2012, K2 has over 25 years of experience in alternative strategies.
- Franklin Templeton’s global reach opens the door to additional resources.
- An experienced team supported by advanced technology and risk systems.
Rigorous Analysis of Potential Managers
- Manager research is a multi-team, multi-step process.
- Over 1000 annual manager meetings.
- Proprietary manager database.
Outstanding Range of Product Offering
- Multi-strategy and single-strategy solutions in a UCITS format.
- Focus on outcome-oriented solutions.
A Forerunner in Risk Transparency
- Independent teams at K2 perform due diligence on potential managers.
- The quality of our managers is a key driver of value, but selecting and monitoring them requires experience, skill, and significant resources.
Consideration of Environmental, Social and Governance (ESG) Factors
- Assessment of investment manager’s ESG philosophy and methodology as part of manager research, selection and oversight.
- Commitment to continuous innovation and improvement of ESG approach.
Alternatives
Franklin Templeton offers investors broad alternative investment capabilities spanning hedge strategies and real assets through a multi-boutique structure.