Franklin Templeton Investments is set to launch a new multi-manager credit fund.

The new FTIF Franklin Templeton K2 Long Short Credit fund, the third offering in the firm’s FTIF range, will invest in various strategies including alternative fixed income and credit.

The managers will be chosen by a team that includes founding managing director David Saunders, senior managing director Rob Christian, managing director of portfolio construction Jeff Schmidt, and K2 Advisors managing director Charmaine Chin.

 “We believe that investors may be open to alternatives as a way to diversify their portfolios outside of traditional fixed income investment options,” Saunders said.

The vehicle will launch in Luxembourg on 16 December, and later registered with the Financial Conduct Authority for investors in the UK.