Fund Evaluator:
Franklin Alternative Strategies A (FAAAX)
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Best Performing in Multistrategy Over the Last Year
| 35.9% | AQR Alternative Risk Premia N (QRPNX) |
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| 14.2% | Goldman Sachs Multi-Strategy Alts Inv (GIMMX) |
| 13.0% | AQR Diversifying Strategies N (QDSNX) |
| 12.7% | Blackstone Alternative Multi-Strategy Y (BXMYX) |
Fund Details
Franklin Alternative Strategies A Overview
Franklin Alternative Strategies A (FAAAX) is an actively managed Alternative Multistrategy fund. Franklin Templeton Investments launched the fund in 2013.
The investment seeks capital appreciation with lower volatility relative to the broad equity markets. The fund seeks to achieve its investment goal by allocating its assets across multiple non-traditional or "alternative" strategies, including, but not limited to, some or all of the following strategies: Long Short Equity, Relative Value, Event Driven and Global Macro. It may invest in a wide range of securities and other investments including, but not limited to: equity securities (which may include common stocks, preferred stocks and convertible securities) and debt securities.
About Franklin Alternative Strategies A (FAAAX)
There are 3 members of the management team with an average tenure of 5.39 years: Robert Christian (2014), Art Vinokur (2024), Lillian Knight (2024). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: MSCI ACWI NR USD index with a weighting of 100% and HFRX Global Hedge Fund USD index with a weighting of 100%. Franklin Alternative Strategies A has 2901 securities in its portfolio. The top 10 holdings constitute 52.8% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Franklin Alternative Strategies A is part of the Alternative Strategies global asset class and is within the Alternative fund group. Franklin Alternative Strategies A has 35.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 17.2%. There is 3.4% allocated to foreign stock, and 6.7% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 33.8% (1.8% domestic bond, 32.0% foreign bond and 12.1% convertible bond). Franklin Alternative Strategies A has 23.3% of the portfolio in cash.
Assets Under Management
The fund has $53 million in total assets, which is below the $511 million average for the Multistrategy category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
FAAAX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Franklin Alternative Strategies A expense ratio is high compared to funds in the Multistrategy category. Franklin Alternative Strategies A has an expense ratio of 2.43%, which is 18% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Franklin Alternative Strategies A has a portfolio turnover rate of 266%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 289% for the Multistrategy category.
Recently, in the month of July 2026, Franklin Alternative Strategies A returned -0.9%, which earned it a grade of F, as the Multistrategy category had an average return of 0.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Franklin Alternative Strategies A has a trailing yield of 2.36%, which is below the 2.97% category average. The fund normally distributes its income annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Franklin Alternative Strategies A Grades
Year to date, the fund has returned 4.7%, 0.5 percentage points worse than the category, which translates into a grade of D. The fund has returned 8.9% over the past year (grade of C), 8.3% over the past three years (grade of B) and 3.5% per year over the past five years (grade of D) and 3.9% per year over the past 10 years (grade of C).
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FAAAX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FAAAX Return (NAV) | -0.9% | 1.0% | 8.9% | 8.3% | 3.5% | 3.9% |
| FAAAX Grade | F | D | C | B | D | C |
| +/- Category | -1.7% | -0.8% | -1.9% | 0.6% | -1.8% | 0.2% |
| Multistrategy Avg | 0.8% | 1.8% | 10.8% | 7.7% | 5.3% | 3.7% |
| FAAAX Tax Cost Ratio | na | na | 2.4% | 2.3% | 1.8% | 1.1% |
FAAAX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FAAAX Return (NAV) | 4.7% | 8.2% | 11.4% | 2.6% | -8.2% | 2.6% | 7.0% | 7.2% | -2.4% | 6.6% | 1.7% |
| FAAAX Grade | D | C | A | F | F | F | A | C | B | B | C |
| +/- Category | -0.5% | 0.3% | 5.3% | -3.8% | -7.7% | -3.6% | 5.0% | 0.2% | 2.5% | 1.6% | -0.3% |
| Multistrategy Avg | 5.3% | 7.8% | 6.1% | 6.4% | -0.4% | 6.2% | 2.0% | 7.0% | -4.9% | 5.0% | 2.0% |
| Risk Measures | |
| Standard Deviation: | 3.1% |
| Total Risk Index: | 0.25 - Low |
| Category Risk Index: | 0.56 - Low |
| Category Risk Grade: | A (16% Rank) |
| Beta: | 0.17 |
| R-Squared: | 48% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Mid-Cap Blend |
| Bond Investment Style: | na |
| Yield: | 2.4% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $563 Mil |
| Fund Total Assets: | $ 53 Mil |
| Share Class Type: | A |
| Portfolio Turnover: | 267% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 11.8 years | |||
| Average Tenure: 5.4 years | |||
| Managers (Year): Christian Robert (2014), Vinokur Art (2024), Knight Lillian (2024) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 2901 |
| % in Top 10 Holdings: | 52.8% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 35.4% |
Portfolio Allocation |
|
| Domestic Stock: | 17.2% |
| Foreign Stock: | 3.4% |
| Preferred Stock: | 6.7% |
| Domestic Bond: | 1.8% |
| Foreign Bond: | 32.0% |
| Convertible Bond: | 12.1% |
| Other: | 3.6% |
| Cash: | 23.3% |
Purchase Information
| Fund Family: | Franklin Templeton Investments |
| Phone Number: | 800-342-5236 |
| Website: | franklintempleton.com |
| Status: | Open |
| Inception Date: | October 11, 2013 |
| Min. Initial Purchase: | $1,000 |
| Min. Initial IRA Purchase: | $ 250 |
| True No-Load: | No |
| Front Load Maximum: | 5.50% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.25% |
Expenses and Fees | |
| Expense Ratio (%): | 2.43% ( Rating : High ) |
| Category Average Expense Ratio (%): | 2.05% |
| Share Class: | Franklin Alternative Strategies R6 |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
