Diversified Fund Leverages K2 Advisors' Alternative Solutions Expertise and Relationships with Institutional Quality Hedge Fund Managers
TORONTO, Nov. 7, 2016 /CNW/ - Franklin Templeton Investments Corp. today introduced Franklin K2 Alternative Strategies Fund to accredited retail investors in Canada. Previously available only to institutional investors in Canada, this multi-manager, liquid alternative strategy provides access to top-tier hedge fund managers with strong track records of delivering attractive risk-adjusted returns over multiple market cycles. With its diversified portfolio of hedge strategies, the fund seeks to provide attractive risk-adjusted returns with reduced portfolio volatility and lower 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."
The fund invests substantially all of its assets in the underlying FTIF Franklin K2 Alternative Strategies Fund1, which is managed by portfolio managers 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 portfolio management team dynamically allocates FTIF Franklin K2 Alternative Strategies Fund's assets across multiple unaffiliated managers who pursue hedged strategies, including event driven, global macro, long short equity and relative value.2 Each of these sub-advisors in turn invests across a range of securities, which may include but are not limited to, 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. "Rather, returns are driven by manager stock selection expertise and enhanced investment flexibility. 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."
FTIF Franklin K2 Alternative Strategies Fund's current set of sub-advisors includes:
- Impala Asset Management, LLC
- Chilton Investment Company, LLC
- Jennison Associates, LLC
- Wellington Management Company, LLP
- Portland Hill Capital LLP
- P. Schoenfeld Asset Management, L.P.
- Halcyon Capital Management L.P.
- Basso Capital Management, L.P.
- Chatham Asset Management, LLC
- Lazard Asset Management, LLC
- Loomis, Sayles & Company, L.P.
- Graham Capital Management, L.P.
- EMSO Partners Limited Graham Capital Management, L.P.
About K2 Advisors
K2 Advisors, part of the solutions team at Franklin Templeton Investments, provides integrated hedge fund and alternative product solutions covering multiple strategies to institutional and high net worth investors as well as liquid alternative fund offerings for retail investors worldwide, with over $10 billion in assets under management as of June 30, 2016. Products and services offered include single investor custom-tailored investment programs, commingled funds of hedge funds, and strategic advisory relationships. The Stamford, CT-based firm has a global presence with 116 employees and offices in New York, London, Tokyo, Hong Kong and Sydney. For more information, please visit www.k2advisors.com.
About Franklin Templeton Investments
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management to retail, institutional and sovereign wealth clients in over 180 countries. Through specialized teams, the company has expertise across all asset classes—including equity, fixed income, alternative and custom 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 offices in 35 countries, the California–based company has more than 65 years of investment experience and over US$733 billion (over C$962 billion) in assets under management as of September 30, 2016.
For more information, please visit franklintempleton.ca or connect with Franklin Templeton on Twitter (@FTI_Global) and read the Beyond Bulls & Bears blog featuring perspectives from Franklin Templeton investment professionals around the world.
- The underlying fund in which the fund invests is a sub-fund of Franklin Templeton Investment Funds ("FTIF") and is managed by an affiliate of Franklin Templeton Investments Corp. (FTIC) and organized under the laws of Luxembourg as a Société d'Investissement à Capital Variable, an open-end investment company. The underlying fund qualifies as a UCITS, an undertaking for collective investment in transferable securities, and is distributed under a prospectus in several European and other countries. FTIF Franklin K2 Alternative Strategies Fund is not available directly to investors in Canada. K2 Advisors is the portfolio advisor to the underlying fund and is a majority owned subsidiary of Franklin and an affiliate of FTIC.
- FTIF Franklin K2 Alternative Strategies Fund's underlying investment strategies include, but are not limited to the following:
- Long Short Equity Strategies – Long short equity strategies generally seek to produce returns from investments in the global equity markets by making long and short investments in common stocks and common stock indices. These strategies are generally focused on risk-adjusted returns and capitalize on the sub-advisor's views and outlooks for specific equity markets, regions, sectors and securities. Examples of long/short equity strategies include: (i) growth-focused strategies; (ii) value-focused strategies; (iii) market-neutral strategies (e.g. maintaining net exposures between 20 per cent short and 20 per cent long); (iv) sector-focused strategies (e.g. technology, healthcare and financials); and (iv) regionally focused strategies (e.g. Europe and Asia).
- Relative Value Strategies – Relative value strategies encompass a wide range of investment techniques that are intended to profit from pricing inefficiencies in related securities. These strategies generally involve taking a position in one financial instrument and simultaneously taking an offsetting position in a related instrument in an attempt to profit from incremental changes in the price differential. Examples of relative value strategies are: (a) credit long short strategies; (b) credit arbitrage; (c) convertible arbitrage; and (d) volatility arbitrage.
- Event Driven Strategies – Event driven strategies invest in securities of companies undergoing corporate events. These strategies are generally focused on analyzing the impact of the company-specific or transaction-specific event on security valuations. Examples of such events include mergers, acquisitions, transfers of assets, tender offers, exchange offers, recapitalizations, liquidations, divestitures, spin-offs, equity restructurings and reorganizations.
- Global Macro Strategies – Global macro strategies generally focus on macroeconomic opportunities across numerous markets and instruments. Investments may be long or short and based on either relative value or directional views of a market, a currency, an interest rate, a commodity or any macroeconomic variable. Examples of global macro strategies include discretionary and systematic macroeconomic strategies.
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SOURCE Franklin Templeton Investments Corp.
For further information: Franklin Templeton Investments Corp., Corporate Communications: Amie Lauder (416) 957-6560, franklintempleton.ca