International investors can now access Franklin Templeton’s first multi-manager, multi-strategy Luxembourg-registered SICAV fund focused on alternative investment strategies.
The Franklin K2 Alternative Strategies Fund SICAV, which was soft-launched a month ago, will follow the same strategy as the US-registered Franklin K2 Alternative Strategies Funds.
Building upon Franklin Templeton’s acquisition of hedge fund solutions provider K2 Advisors in 2012, the fund provides access to a diversified portfolio of alternative investment strategies managed by institutional-quality hedge fund managers. It 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 dynamically allocate assets across multiple managers and alternative strategies, including event driven, global macro, long short equity and relative value3. 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. The fund’s investment co-manager structure provides an alternative approach for fund-of-hedge fund structures that have historically been utilised in the market.
The investment team is based in Stamford, Connecticut and the fund’s co-lead portfolio managers are David Saunders, co-founding managing director of K2 Advisors, Brooks Ritchey and Rob Christian, both senior managing directors, K2 Advisors.
Saunders says: “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. We believe this Fund is an ideal solution to meet those needs, and we are thrilled to offer retail investors access to several of the strategies and managers that K2’s institutional investors have long had access to.”
Peter Vincent, head of alternative sales, Europe at Franklin Templeton Investments, 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.”
The fund’s initial set of sub-advisors includes:
• Basso Capital Management, L.P.
• Chatham Asset Management, LLC
• Chilton Investment Company, Inc.
• Graham Capital Management, L.P.
• Impala Asset Management LLC
• Independence Capital Asset Partners, LLC
• Jennison Associates LLC
• Lazard Asset Management LLC
• Loomis Sayles & Company, L.P.
• P. Schoenfeld Asset Management L.P.
• Wellington Management Company, LLP