Franklin Templeton launches liquid hedge fund solutioning range for European investors

From Franklin Templeton
Contact Oliver Trenk
Telephone +49 6927 223718

Luxembourg, 1 October 2019 – Franklin Templeton1 is pleased to announce the launch of a new Luxembourg-domiciled fund range – Franklin Templeton Alternatives Funds (FTAF)2 . This new hedge fund range offers European investors access to liquid hedge fund strategies in a UCITS format with daily liquidity and transparency from K2 Advisors, one of the pioneers in the development and use of low fee liquid hedge funds, through their Managed Accounts Platform (MAP). The new FTAF range will be offered as part of K2 Advisors’ expanded hedge fund solutioning business model.

Since 2007, K2 Advisors has been investing through daily liquid managed accounts and today approximately 60% of K2’s $10.6 billion in assets under management are in these structures. These hedge fund strategies will form a part of K2 Advisors’ business model and will be available to clients for;

  1. Discretionary/Advisory Mandates – K2 Advisors will work with Franklin Templeton’s clients in developing tailored liquid hedge fund solutions.
  2. Portfolio Completion – Working as an extension of existing and prospective clients’ teams, K2 Advisors will bring their full range of hedge fund research, as well as their risk and portfolio analysis tools, along with access to their investment research and risk teams.
  3. Manager Access – Providing access to hedge fund managers and K2 Advisors’ due diligence and risk analytics.

Bill Santos, Senior Managing Director, K2 Advisors said: “We are delighted to offer these diverse services, in a fund range within a daily liquid UCITS structure to European investors. We are introducing to the marketplace non-European hedge fund managers via the UCITS regulatory framework. These managers offer differentiated styles of alpha generation and risks, that are beneficial in providing robust diversification to investors. Our focus is to partner with our clients and be an extension of their team. As part of the offering, we will deliver the full capabilities of K2 Advisors’ manager research, portfolio construction, risk analytics and technology, in a complete and transparent manner”.

The five new liquid hedge fund solutions are:

  • Franklin K2 Bardin Hill Arbitrage UCITS
  • Franklin K2 Chilton Equity Long Short UCITS
  • Franklin K2 Electron Global UCITS
  • Franklin K2 Ellington Structured Credit UCITS
  • Franklin K2 Wellington Technology Long Short UCITS

K2 Advisors has had a long relationship with all five of these hedge fund managers and we have partnered on several structures including daily liquid managed accounts first in a Cayman structure and now in a UCITS structure, to serve our European client base.

Vivek Kudva, Managing Director, EMEA and India, Franklin Templeton commented: “In Europe, our focus has been on continuing to strengthen and deepen our relationships with our clients, and providing liquid alternative investments products and services in partnership with K2 Advisors’ expertise, which is a key differentiator for Franklin Templeton.”

K2 Advisors 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, 2019.

Products and services offered include single investor custom-tailored investment programs, commingled funds of hedge funds, strategic advisory relationships and multi- and single-strategy retail mutual funds. The Stamford, Connecticut-based office has a global presence and offices in New York, London, Tokyo, Hong Kong and Sydney.