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"We are pleased to open this fund to Canadians who are looking for an investment that can potentially reduce volatility in unpredictable markets, while providing the potential for attractive risk-adjusted returns," said Duane Green, managing director, Canada, Franklin Templeton Investments Corp. "Franklin K2 Alternative Strategies Fund provides a unique approach among hedge fund structures available in Canada, including offering a lower flat fee relative to the norm for hedge fund pricing, as well as daily liquidity and sub-advisor transparency."

The fund invests substantially all of its assets in the underlying FTIF Franklin K2 Alternative Strategies Fund1, which is managed by portfolio managers David Saunders, founding managing director, Brooks Ritchey, senior managing director and head of portfolio construction, and Rob Christian, senior managing director and head of research, at K2 Advisors.

The portfolio management team dynamically allocates FTIF Franklin K2 Alternative Strategies Fund's assets across multiple unaffiliated managers who pursue hedged strategies, including event driven, global macro, long short equity and relative value.2 Each of these sub-advisors in turn invests across a range of securities, which may include but are not limited to, equity and equity-related securities, debt securities, financial derivative instruments and exchange-traded notes.

"A key benefit of including alternatives in an individual investor's portfolio is that returns are less correlated with traditional long stock or long bond portfolios," said Ritchey. "Rather, returns are driven by manager stock selection expertise and enhanced investment flexibility. By having the ability to have both long and short exposure, the manager has a greater opportunity to generate returns in both rising and falling markets."

FTIF Franklin K2 Alternative Strategies Fund's current set of sub-advisors includes:

• Impala Asset Management, LLC
• Chilton Investment Company, LLC
• Jennison Associates, LLC
• Wellington Management Company, LLP
• Portland Hill Capital LLP
• P. Schoenfeld Asset Management, L.P.
• Halcyon Capital Management L.P.
• Basso Capital Management, L.P.
• Chatham Asset Management, LLC
• Lazard Asset Management, LLC
• Loomis, Sayles & Company, L.P.
• Graham Capital Management, L.P.
• EMSO Partners Limited Graham Capital Management, L.P.

K2 Advisors, part of the solutions team at Franklin Templeton Investments, provides integrated hedge fund and alternative product solutions covering multiple strategies to institutional and high net worth investors as well as liquid alternative fund offerings for retail investors worldwide, with over $10 billion in assets under management as of June 30, 2016. Products and services offered include single investor custom-tailored investment programs, commingled funds of hedge funds, and strategic advisory relationships. The Stamford, CT-based firm has a global presence with 116 employees and offices in New York, London, Tokyo, Hong Kong and Sydney.