Key Takeaways
- • Franklin Templeton launched two new UCITS funds—Franklin K2 Cat Bond UCITS Fund and Franklin K2 Athena Risk Premia UCITS Fund—expanding its Luxembourg-domiciled Franklin Templeton Alternatives Funds (FTAF) range to eight liquid alternative strategies.
- • The Cat Bond fund targets attractive risk-adjusted returns and current income through natural catastrophe bond portfolios with limited correlation to traditional assets; the Athena Risk Premia fund pursues multiple risk premia strategies targeting long-term capital appreciation with lower volatility relative to equities.
- • Both funds registered across 11 European countries including Germany, France, Italy, and the UK, reflecting Franklin Templeton's expansion of liquid alternative offerings to European institutional and retail investors.
- • K2 Advisors' flagship fund launched in 2013 has driven sustained client demand for liquid UCITS-structured alternatives, advisory services, and hedge fund manager access through a transparent, regulated framework.
Summary
Franklin Templeton announced the launch of two new liquid alternative UCITS funds on 18 June 2021, marking the latest expansion of its Luxembourg-domiciled Franklin Templeton Alternatives Funds (FTAF) range. The Franklin K2 Cat Bond UCITS Fund and Franklin K2 Athena Risk Premia UCITS Fund bring the total number of liquid alternative strategies within the FTAF platform to eight, underscoring the asset manager's strategic commitment to the European alternatives market.
The Cat Bond fund is structured to generate attractive risk-adjusted returns and compelling current income through targeted investment in natural catastrophe bonds, offering investors exposure to an alternative asset class with limited correlation to traditional equities and fixed income. The Athena Risk Premia fund pursues a multi-strategy approach to capture various risk premia while targeting long-term capital appreciation with materially lower volatility than broader equity markets and substantially reduced correlation to traditional asset classes across full market cycles.
Both funds obtained registrations across 11 European countries, including major markets such as Germany, France, Italy, and the United Kingdom, positioning Franklin Templeton to serve institutional and qualified retail investors across the continent through a transparent, regulated UCITS structure. Bill Santos, Senior Managing Director at K2 Advisors, emphasized that the launches reflect persistent client demand for K2's research capabilities, risk analytics, and portfolio completion services. The timing reflects the growing institutional appetite for liquid alternatives that provide hedge fund-equivalent strategies within transparent, daily-liquidity UCITS wrappers—a trend that accelerated following the initial FTAF range launch in October 2019.
The Cat Bond fund is structured to generate attractive risk-adjusted returns and compelling current income through targeted investment in natural catastrophe bonds, offering investors exposure to an alternative asset class with limited correlation to traditional equities and fixed income. The Athena Risk Premia fund pursues a multi-strategy approach to capture various risk premia while targeting long-term capital appreciation with materially lower volatility than broader equity markets and substantially reduced correlation to traditional asset classes across full market cycles.
Both funds obtained registrations across 11 European countries, including major markets such as Germany, France, Italy, and the United Kingdom, positioning Franklin Templeton to serve institutional and qualified retail investors across the continent through a transparent, regulated UCITS structure. Bill Santos, Senior Managing Director at K2 Advisors, emphasized that the launches reflect persistent client demand for K2's research capabilities, risk analytics, and portfolio completion services. The timing reflects the growing institutional appetite for liquid alternatives that provide hedge fund-equivalent strategies within transparent, daily-liquidity UCITS wrappers—a trend that accelerated following the initial FTAF range launch in October 2019.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.