The firm’s new fund promises to be a retail-level, institutional-quality investment product
Franklin Templeton Investments Corp. has come out with the Franklin K2 Alternative Strategies Fund. Described as a multi-manager, liquid alternative strategy, it promises qualified retail investors in Canada access to top-level hedge fund managers. With their strong track records proven over multiple market cycles, the managers will use a diversified portfolio of hedge strategies to help the fund achieve attractive risk-adjusted returns, reduced portfolio volatility, and decreased correlations to traditional asset classes.
“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."
A substantial portion of the fund’s assets is invested in the underlying FTIF Franklin K2 Alternative Strategies Fund, which is distributed under a prospectus in several European and other countries as an undertaking for collective investment in transferable securities (UCITS).
Managing the fund are 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 team dynamically allocates the fund’s assets across several unaffiliated managers that employ different hedged strategies. Each of the sub-advisors invests in various securities, including 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. "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."
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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."
A substantial portion of the fund’s assets is invested in the underlying FTIF Franklin K2 Alternative Strategies Fund, which is distributed under a prospectus in several European and other countries as an undertaking for collective investment in transferable securities (UCITS).
Managing the fund are 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 team dynamically allocates the fund’s assets across several unaffiliated managers that employ different hedged strategies. Each of the sub-advisors invests in various securities, including 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. "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."
Related stories:
Why has JP Morgan launched a new hedge-like ETF?
Canadian mutual fund mergers for Franklin Templeton to push through
