We bring together specialist investment managers that operate with independent thinking to help deliver investment solutions to meet a variety of client needs. Each investment management group is comprised of specialists who are leaders in their disciplines, backed by the strength of Franklin Templeton's global operating platform.
Why Franklin Templeton?
Since the start of our alternative business, we have been committed to delivering innovative and differentiated investment solutions. Prudent, risk-managed investing in alternative asset classes requires specific knowledge and expertise honed over many years through various market cycles. Our alternatives platform extends beyond traditional investments and offers an expansive footprint and specialized capabilities across a range of asset classes, structures and investment outcomes.
Specialized Expertise by Leading Managers
Access Key Alternative Asset Classes
We manage assets across private and alternative debt, unconstrained & hedge strategies, real assets, real estate, infrastructure, private equity, and venture capital. As an innovator in seeking new, uncorrelated active return sources, we have the experience, scale and scope to meet the needs of our clients.
Choice of Investment Strategies and Structures
With client needs at the forefront, we offer a wide range of strategies in a variety of investment vehicles that include custom solutions, pooled vehicles, and separately managed accounts.
Our Approach
Why Alternatives?
There are a variety of alternative solutions, each with their own characteristics and level of risk. At Franklin Templeton, we group our alternative capabilities into the following key categories:
Real Assets
Tangible assets which include commercial real estate, infrastructure and commodities.
Private Debt / Alternative Credit
Investments in traditional asset classes via non-traditional structures drawing on a wide range of disciplines across the credit spectrum.
Private Equity
Typically invest in equity capital that is not publicly available, such as ownership in private companies and venture capital.
Hedged & Other
Strategies that may have a broader investment universe, with the dynamic use of financial instruments and investment techniques that target a variety of outcomes.
Our Managers with Alternative Solutions
| Alternative capabilities | Private Debt / Alternative Credit | Real Assets | Unconstrained / Hedged | Private Equity / Venture Capital |
|---|---|---|---|---|
| Benefit Street Partners | ||||
| Brandywine Global | ||||
| Clarion Partners | ||||
| ClearBridge Investments | ||||
| Franklin Real Asset Advisors | ||||
| Franklin Templeton Fixed Income | ||||
| Franklin Templeton Investment Solutions | ||||
| Franklin Venture Partners | ||||
| Martin Currie | ||||
| Templeton Global Macro | ||||
| Templeton Private Equity Partners | ||||
| Western Asset Management |
Glossary or Key Terms
What is Private Debt? Private debt funds typically invest in non-listed debt issues, including bonds, notes, and loans issued by private companies. Private debt has the potential to provide greater returns, control and reduced liquidity, than public markets.
What is Alternative Credit? Alternative Credit invests in below-investment-grade fixed income sectors that are relatively illiquid. Alternative Credit may not be available to investors for direct investment as individuals but can be accessed through professionally managed traditional mutual funds.
What is Unconstrained Investing? Unconstrained Strategies trades securities with few restrictions on when and how they buy and sell. Many unconstrained strategies do set a formal or informal a target for volatility that provides a limitation on the level of risks incurred.
What are Hedged Strategies? Hedge Strategies (also referred to as alternative strategies) use both long and short positions in markets. Some of the most common strategies are long and short equity, global macro, relative value, and credit. Hedge Strategies appeal to investors who are looking to diversify their investment, in an attempt to minimize market beta returns while seeking alpha and risk-adjusted returns.
What are Real Assets? Real Assets typically invest in tangible assets that derive value from their substance and physical presence. These include real estate, public and private infrastructure, natural resources, precious metals and commodities.
What is Private Equity? Private equity funds typically invest in equity capital that is not publicly available. Instead, the funds take direct ownership in private companies. Private Equity has the potential to provide above-market returns, with greater control, reduced liquidity and greater diversification, than traditional public markets.
What is Venture Capital? Venture Capital is a form of private equity that investors provide to start-up companies and small business that exhibit high growth potential.
Correlation is a statistical measure of the relationship between two sets of data. When asset prices move together, they are described as positively correlated; when they move opposite to each other, the correlation is described as negative or inverse. If price movements have no relationship to each other, they are described as uncorrelated.
Hedge is the reduction or elimination of investment risk through the purchase of a complementary financial instrument, such as an option or futures contract.
Unconstrained investing is an investment style that does not require a fund or portfolio manager to adhere to a specific benchmark. Unconstrained investing allows managers to pursue returns across many asset classes and sectors.
Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio. A diversified portfolio contains a mix of distinct asset types and investment vehicles in an attempt at limiting exposure to any single asset or risk.
Long/Short takes both long and short positions buying securities seen as undervalued and selling short others seen as overvalued, in the hope of outperforming the market overall while hedging against possible declines.
Global Macro buys and/or sells financial instruments in anticipation of a major economic event (such as a shift in interest rates or revaluation of a currency) that resonates across multiple markets. Managers take a “top-down” approach to asset selection, moving from general theories about future events to the selection of specific financial instruments. Global macro funds may experience considerable volatility in the pursuit of their goals and require a relatively high level of risk tolerance.
Event-driven seeks to profit from the outcomes of company or sector specific events that impact security prices. This includes distressed debt strategies which hold bonds from companies that face or have experienced bankruptcy or reorganization; and risk arbitrage strategies which seek to exploit price movements in securities impacted by specific, one-time events such as mergers, acquisitions and/or changes in top management.
Real Estate Investment Trusts (REITs) are partnerships which invest in commercial and/or residential real estate properties.
Multi-manager invests in multiple managers and strategies (example: “fund of funds” which draw upon multiple hedge fund managers).
Commodities are raw materials and foodstuffs (examples include gold, silver,
wheat, corn and pork bellies) which are typically sold by weight/volume and traded
on public exchanges along with futures contracts for deferred purchases or sales.