Franklin Templeton has launched a new fund range in Luxembourg which provides local investors access to U.S. based fund managers.

In a significant development, asset manager Franklin Templeton disclosed, following the launch of a new fund range in Luxembourg, it has expanded the activities of its K2 Advisors hedge fund in Europe. The development has enabled local investors to access to U.S.-based fund managers.

K2’s platform allows investors to build a portfolio of investments across multiple funds at discounted rates. Incidentally, the newly launched funds allow clients to get their money back on a daily basis rather than quarterly.

In a statement Franklin stated, the fund range will have strategies from five managers – Chilton Investment Company, Barden Hill Investment Partners, Ellington Management Group and Wellington Management and Electron Capital Partners.

According to Bill Santos, Senior Managing Director at K2 Advisors, it would “look to expand the range of managers and funds on offer and had seen strong demand from clients in Italy, Germany, Spain and elsewhere in the region to invest”.

Currently, K2 manages $10.6 billion in assets on behalf of institutional and retail clients.

Santos went on to add, “In return for reduced management fees of between 1% and 1.5% and performance fees of between 12.5% to 15%, K2 aimed to ensure each manager attracted at least $1 billion in fresh assets under management”.

Although many hedge funds have struggled to outperform the market midst a decade of fiscal stimulus by central banks, which in turn has prompted some investors to pull their investments resulting in the closure of a number of funds, however more aspiring managers continue to try their luck.

According to data from Hedge Fund Research, an industry tracker, 289 funds were launched in the first half of 2019 while 399 funds faced closure.

The estimated average management fee for newly launched funds in the second quarter was 1.25%, HFR said, while the average performance fee was 15.65%.

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