Franklin Templeton launches multi-manager credit fund

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Franklin Templeton Investments has announced it will launch a multi-manager fixed income fund later this month.

The FTIF Franklin K2 Long Short Credit fund will invest in alternative fixed income and credit strategies.

At launch, sub-advisors will include Apollo and Chatham Asset Management in credit long/short, Candlewood Investment Group and Ellington Global Asset Management in structured credit, and EMSO Asset Management in emerging market fixed income.

Sub-advisors will invest across corporate bonds, corporate loans, asset-backed securities, sovereign bonds, convertible securities and stocks. The strategy can also include interest rate swaps, derivatives, futures, ETFs and indices.

Founding manager of K2 Advisors David Saunders says: “The combination of our active management and lineup of alternative credit managers is meaningfully differentiated in the marketplace.

“The fund uses a diverse toolkit to identify and manage both risks and opportunities across multiple sectors, geographies, instrument types and long/short exposures.”

Saunders is joined on the investment team by Rob Christian, Jeff Schmidt and Charmaine Chin.

The fund launches in Luxembourg on 16 December, before Franklin Templeton will apply for registration with the FCA.

It is the third liquid alternatives sub-fund in the Franklin Templeton Investment Funds (FTIF) SICAV range and follows the launch of the Franklin K2 Global Macro Opportunities fund last month.

Templeton acquired K2 Advisors in 2012.