Franklin Templeton and K2 Advisors Launch Liquid Alternative Global Macro Fund - Seite 2

Franklin K2 Global Macro Opportunities Fund's goal is to seek to provide capital appreciation over a full market cycle, by allocating the Fund's assets across global macro-focused investment strategies, which are generally concentrated on discovering macroeconomic investment opportunities across numerous markets and investments. The Fund's allocations to these strategies and sub-advisors will reflect the Fund portfolio management team's top-down market views.

The Fund will allocate its assets to a variety of hedge strategy managers selected by K2 Advisors through a rigorous, proprietary due diligence process. The strategies employed by the initial hedge strategy managers may include discretionary and systematic macro strategies.¹ The sub-advisors may invest in a wide range of global exchange traded and over the counter derivative instruments that provide the Fund with broad exposure -- either long or short -- to various asset classes, including equities, fixed income, interest rates, commodities and currencies. The Fund may also hold a wide variety of securities, including equities and various credit instruments, such as sovereign, quasi-sovereign and corporate bonds. K2 Advisors has been allocating to global macro strategies since 2006 and currently manages approximately $1.6 billion in investments in Global Macro strategies.

In addition to Ritchey and Christian, the Fund's portfolio management team also includes portfolio manager Anthony Zanolla, a senior vice president at K2 Advisors.

The Fund's initial set of sub-advisors² includes:

• Aspect Capital Limited (Systematic)
• Emso Asset Management Limited (Discretionary)
• Graham Capital Management (Systematic)

Important Information about the Fund
All investments involve risks, including possible loss of principal. The Fund is actively managed and could experience losses if the investment manager's or sub-advisors' judgment about particular investments made for the Fund prove to be incorrect. Investments in derivatives involve costs and create economic leverage, which may result in significant volatility and cause the Fund to participate in losses (as well as gains) that significantly exceed the Fund's initial investment. The market values of securities owned by the Fund will go up or down, sometimes rapidly or unpredictably. Liquidity risk may exist when securities have become more difficult to sell, or are unable to be sold, at the price at which they have been valued. The sub-advisors may not be successful in maintaining effective and operational trading models used to implement systematic strategies. An issuer of debt securities may fail to make interest payments or repay principal when due. Lower-rated or high yield debt securities involve greater credit risk, including the possibility of default or bankruptcy. When interest rates rise, debt security prices tend to fall. Foreign investments are subject to greater investment risk such as political, economic, credit, information and currency fluctuation risks. Investments in emerging markets are subject to the risks of foreign investing and have additional heightened risks. Commodity and commodity-linked investments present heightened risks, are speculative and can be extremely volatile. Please see the prospectus and summary prospectus for information on these as well as other risk considerations.