Toronto-based Franklin Templeton Investments Corp. has launched an alternative mutual fund: Franklin K2 Alternatives Fund.
The fund uses a multi-strategy approach as it seeks to limit volatility and offer downside protection while providing added diversification and low correlation to the market, the firm states.
The fund uses strategies similar to and attempts to replicate the returns of high-conviction hedge funds.
The management fee for Series A is 1.75% and the series’ annual fixed administration fee is 0.15%.
The deferred sales charge begins at 6% in Year 1 and ends at zero after Year 6 for the regular DSC schedule; and begins at 3% in Year 1 and ends at zero after Year 3 of the low-load schedule.
The front-end sales charge option is 0%-6%. Trailing commissions are 1% for front-end sales; 0.5% for the first six years of deferred sales, and 1% thereafter; and 0.5% for the first three years of low-load sales, and 1% thereafter.
Series F investors pay an annual management fee of 0.75% and a fixed administration fee of 0.15%.