Franklin Templeton offers new liquid alt fund

Franklin Templeton Investments Corp. is now offering the Franklin K2 Alternative Strategies Fund to accredited Canadian retail investors. Previously available only to Canadian institutional investors, this multi-manager, liquid alternative strategy provides access to hedge fund managers.

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.

Read: Liquid alts: hyped up or helpful?

The fund “provides a unique approach among hedge fund structures available in Canada,” says Duane Green, managing director at Franklin Templeton Investments 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 Fund.

Read: Know the limits in CSA’s alternatives proposal

The portfolio management team dynamically allocates the fund’s assets across multiple unaffiliated managers who pursue hedged strategies, including event driven, global macro, long-short equity and relative value. 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.

Read: Clients interested in alts? Here’s how to use them

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The staff of Advisor.ca have been covering news for financial advisors since 1998.