Franklin Templeton Investments has launched its first multi-manager, multi-strategy mutual fund focused on alternative investment strategies, Franklin K2 Alternative Strategies Fund (FAAAX).
Building upon Franklin Templeton's acquisition of hedge fund solutions provider K2 Advisors in 2012, this US-registered fund provides access to a diversified portfolio of alternative investment strategies managed by institutional-quality hedge fund managers.
The fund seeks 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.
"In today's volatile, low interest rate environment, many investors are looking for actively managed investment solutions from established managers employing strategies that can help reduce volatility in unpredictable markets while providing attractive risk adjusted returns," says David C Saunders, co-lead portfolio manager of Franklin K2 Alternative Strategies Fund and co-founding managing director of K2 Advisors. "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 Yun, executive vice president, Franklin Templeton Alternative Strategies, says: "K2 Advisors has a history of integrating a conservative, risk-based philosophy and advanced risk management systems into its hedge fund investment strategies. In developing the Franklin K2 Alternative Strategies Fund, Franklin Templeton has built on that expertise, bringing to bear the company's full global resources in risk management, compliance, distribution, technology and operations to create a compelling offering for investors that addresses today's uncertain market conditions."