TORONTO, March 11, 2019 /CNW/ - Franklin Templeton Investments Canada today introduced Franklin K2 Alternatives Fund to provide investors with access to alternatives investments in a mutual fund format. The fund uses a multi-strategy approach in seeking to dampen volatility and offer downside protection, while providing added diversification and low-correlation to asset classes typically held in a traditional portfolio.
"With the market environment being unpredictable over the past year, investors are looking to reduce volatility and protect capital," said Duane Green, president and CEO of Franklin Templeton Investments Canada. "Our alternatives fund addresses these investor needs and combines the benefits of a sophisticated solution with the liquidity, convenience and fee transparency of a mutual fund."
Franklin K2 Alternatives Fund provides access to multiple alternative strategies in an integrated, cost-effective solution, including:
- Hedge fund replication that seeks to replicate the returns of high conviction hedge funds.
- Equity premium alpha that seeks to capture alpha produced by skilled hedge fund managers while shorting crowded hedge fund equities.
- Risk premia that seeks to monetize behavioural and structural market anomalies using a systematic approach.
As market conditions warrant, Franklin Templeton's K2 Advisors – the fund's sub-advisor – may implement a conditional risk overlay for risk mitigation, which will act as a hedge against negative market events.
Franklin K2 Alternatives Fund will be co-managed by Brooks Ritchey, senior managing director and head of portfolio construction, Rob Christian, senior managing director and head of investment research, and Gordon Nicholson, senior vice president and portfolio manager, K2 Advisors. These portfolio managers have 33, 29 and 24 years of industry experience, and 14, 9 and two years with the firm, respectively.
About K2 Advisors
K2 Advisors provides integrated hedge fund and alternative product solutions covering multiple strategies for institutional and high net worth investors, as well as liquid alternative fund offerings for retail investors worldwide, with more than US$10.6 billion in assets under management as of December 31, 2018. Products and services offered include single investor custom-tailored investment programs, commingled funds of hedge funds, strategic advisory relationships and multi- and single-strategy retail mutual funds. The Stamford, Connecticut-based office has a global presence and offices in New York, London, Tokyo, Hong Kong and Sydney.
About Franklin Templeton
Franklin Templeton Investments Corp. (known as Franklin Templeton Investments Canada) is a subsidiary of Franklin Resources, Inc. [NYSE: BEN], a global investment management organization operating as Franklin Templeton. Franklin Templeton's goal is to deliver better outcomes by providing global and domestic investment management to retail, institutional and sovereign wealth clients in over 170 countries. Through specialized teams, the company has expertise across all asset classes, including equity, fixed income, alternatives and custom multi-asset solutions. The company's more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With employees in over 30 countries, the California-based company has more than 70 years of investment experience and over US$678 billion (over C$890 billion) in assets under management as of January 31, 2019. For more information, please visit franklintempleton.ca.
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