Franklin Templeton unveils UCITS cat bond fund


Franklin Templeton has launched a new UCITS cat bond fund.

The Franklin K2 Cat Bond UCITS Fund is domiciled in Luxembourg and brings the total number of liquid alternative strategies within the Franklin Templeton Alternatives Funds range to eight. 

It will be registered in 11 European countries, including Germany, France, Italy and the UK.

Franklin Templeton’s cat bond fund seeks to generate attractive risk-adjusted returns and compelling current income over time with limited correlation to other asset classes by investing in nat cat bonds. 

The fund is managed by Jonathan Malawer, managing director and head of ILS, commodities and environmental strategies at K2 Advisors in New York. Malawer joined K2 Advisors in 2007 and leads its ILS, commodities and environmental strategies, overseeing the evaluation and selection of hedge fund managers in these strategies. 

Bill Santos, senior managing director at K2 Advisors, said: “Since the launch of our flagship fund in 2013, we have experienced growing demand for K2 Advisors’ full suite of investment research and management capabilities, along with risk and performance analytics services, in a transparent and liquid UCITS structure. We are continuing to see client demand for advisory, portfolio completion and hedge fund manager access services.”

Julian Ide, head of EMEA distribution at Franklin Templeton, called the launch of the fund, which came alongside another new fund called Franklin K2 Athena Risk Premia, a “milestone in our commitment to broadening our UCITS range of liquid hedge strategies and alternative investment capabilities.” 

She added: “We believe these new funds may be attractive for investors seeking to reduce volatility and improve portfolio returns, especially in today’s uncertain environment.”

Franklin Templeton, Jonathan Malawer, Bill Santos, Julian Ide, K2 Advisors, Cat bonds

Bermuda Re