The FTIF Franklin K2 Alternative Strategies Fund aims to offer capital appreciation with lower volatility relative to equity markets by allocating its assets across multiple alternative strategies.
The product was launched in September last year in the US following Franklin’s 2012 acquisition of K2 Advisors, a hedge fund solutions provider.
“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,” said David Saunders, co-founding managing director of K2 Advisors.
The investment team is based in the US. Saunders along with Brooks Ritchey and Robert Christian, both senior managing directors of K2 advisors, manage the fund.
Assets are allocated using event-driven, global macro, long-short equity and relative value strategies.
The fund would suit investors who are looking to complement their fixed income and equity holdings with a product that has comparatively lower correlations to traditional asset classes, according to Christain.
The fund had 11 sub-advisors on 5 May: Basso Capital Management, Chatham Asset Management, Chilton Investment Company, EMSO Partners, Graham Capital Management, Impala Asset Management, Jennison Associates, Lazard Asset Management, Loomis Sayles & Company, Schoenfeld Asset Management and Wellington Management Company.