Franklin Templeton announces Australian alternatives fund
Franklin Templeton has launched its first alternative fund for Australian retail investors, as more turn towards the asset class to strengthen their investment outcomes.
The Franklin K2 Athena Fund invests in primarily uncorrelated risk premia strategies across diverse asset classes such as equities, fixed income and currencies.
Additionally, it increases the value of its investments with lower volatility relative to broader equity markets and less correlation to traditional asset classes over the medium- to long-term.
According to the firm, the daily liquid core alternative solution can complement exposure to 60/40 allocations, hedge fund portfolios and traditional asset classes.
Felicity Walsh, Franklin Templeton’s managing director and head of Australia and New Zealand, said the fund aims to improve access to alternative investment opportunities for Australian retail investors.
“We chose to bring this fund to market to provide access for Australian investors to this investment capability that provides daily liquidity and is cost-effective. Both these features are key drivers for our clients,” she explained.
As the portfolio is cash-rich in nature, the Franklin K2 Athena Fund is positioned to maximise tailwinds during an environment of higher interest rates.
K2 Advisors, the manager of the new fund, was founded in 1994. It manages alternative funds with a focus on hedge fund strategies while producing returns independent of economic conditions.
In 2012, Franklin Templeton completed the acquisition of a majority stake in K2 Advisors.
SQM Research gave the new fund a ‘superior’ rating, putting it in the high investment grade category. The fund has a market-neutral orientation and is suitable for defensive purposes.
“It is not surprising that as investors seek to address today’s major issues, including inflation, achieving desired levels of growth, and effectively dealing with an uncertain world, they are increasingly turning to alternative asset classes to improve their investment outcomes,” Walsh added.
Franklin Templeton holds approximately US$260 billion in alternatives strategies managed by a range of specialist fund managers. The firm was this year's Money Management Fund Manager of the Year at an awards ceremony held in June.
“We offer the scale, experience, resources and choice needed to meet increased demand for alternatives. Our firm’s specialist managers offer opportunities to diversify exposures, manage risk, improve liquidity and enhance income in public and private markets,” she continued.
AUTHOR
Jasmine Siljic
Recommended for you
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.
