Franklin Templeton Investments has introduced Franklin K2 Alternative Strategies Fund, its first multi-strategy mutual fund focused on alternative investment strategies.
Building upon the firm’s strategic acquisition of hedge fund solutions provider K2 Advisors in 2012, the US-registered fund will provide access to a diversified portfolio of alternative investment strategies managed by institutional-quality hedge fund managers.
The fund aims to provide investors with lower correlations to traditional asset classes, reduced portfolio volatility and attractive risk-adjusted returns, while offering daily liquidity.
As the fund’s investment manager, K2 Advisors will allocate assets across multiple managers and alternative strategies, including event driven, global macro, long short equity and relative value.
K2 Advisors will continually adjust the allocations to these strategies to reflect the team’s top-down market views with the goal of providing capital appreciation and lower volatility relative to the broad equity markets.
David Saunders, co-lead portfolio manager of Franklin K2 Alternative Strategies Fund and cofounding managing director of K2 Advisors, said: "We believe this Fund is an ideal solution to meet those needs, and are thrilled to offer retail investors access to several of the strategies and managers that K2’s institutional investors have long had access to."
William Douglass, co-lead portfolio manager of the fund and cofounding and managing director of K2 Advisors, said: "The fund seeks to provide access to alternative sources of capital appreciation, using the same investment and risk management process K2 Advisors has employed on behalf of its institutional clients worldwide for nearly 20 years.
"For investors looking to complement their fixed income and equity holdings through a diversified, multi-manager approach with lower correlations to traditional asset classes, we believe this Fund can be an important tool in their arsenal," Douglass added.