The Franklin K2 Alternative Strategies Fund, a liquid alternatives product, has received approval to slash its minimum investment amount to S$1,000 ($713) from S$100,000, the firm said.
The product will now provide retail investors access to hedge strategies “which traditionally have only been accessible to high-net-worth clients at significantly higher minimum investment amounts”, the firm said.
It is currently distributed in Singapore by Standard Chartered Bank and Citibank.
Isabella Chan, head of retail business for Greater China and Southeast Asia, believes the fund is less correlated to traditional stock and bond portfolios, which can be a benefit as volatility increases in global markets.
“As hedge strategies become more accessible via mutual funds, we think investors can benefit from adding such strategies to their portfolios, which may potentially help improve overall portfolio returns and reduce risk.”
Since its launch in Singapore in September 2014, the fund moved into positive territory, but in 2016 it went negative, according to FE data. Year-to-date, the fund has a -3.6% return.
Performance versus the sector since launch: