Franklin Templeton Investments Canada introduced on March 11 the Franklin K2 Alternatives Fund which provides investors with access to alternatives investments in a mutual fund format.
The company says the new 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.”
Unpredictable market environment
“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, 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 hedge fund managers while shorting crowded hedge fund equities; and risk premia that seeks to monetize behavioural and structural market anomalies using a systematic approach, says the company.
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.