Franklin Templeton Investments has rolled out its latest commodities fund which seeks to deliver long-term total return through broad exposure to the commodities market.
Dubbed as the Franklin Pelagos Commodities Strategy Fund, the new offering is a liquid commodities fund available to US investors.
Pelagos Capital Management, an alternative investments specialist acquired by Franklin Resources, will manage the new fund.
Pelagos Capital Management co-lead portfolio manager and co-founder John Pickart said, "While commodities have traded for centuries, the costs and logistical challenges of direct investment in physical commodities can be daunting.
"We believe this fund, which provides daily liquidity, offers a convenient way for investors to access this market and the potential to bring added diversification, inflation protection and global growth to their portfolios."
Leveraging an active, flexible approach, the fund’s manager invests in the commodities market, including the energy, industrials, precious metals and agriculture subsectors.
In order to mitigate market volatility and satisfy asset coverage requirements for derivative positions, the fund also invests in securities of the US government, its agencies and other fixed income securities.