New products introduced over the last week include a new inflation-protected securities fund from Nationwide and a new variable annuity from Allianz Life. Also in fund news, Goldman Sachs Asset Management is courting advisors with its Dynamic Allocation Fund, which will hit the three-year mark in January.
In addition, Franklin Templeton announced an agreement to acquire a majority stake in K2 Advisors, and Trademark Capital Management announced that it has been chosen by Emerald Asset Advisors to manage its newly renamed EAS Trademark Capital Global Fund.
Here are the latest developments of interest to advisors:
1) Franklin Templeton to Acquire Majority Stake in K2 Advisors
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Franklin Resources, Inc., which operates as Franklin Templeton Investments, announced Wednesday that it has agreed to acquire a majority stake in K2 Advisors Holdings LLC. This acquisition will enhance Franklin Templeton’s alternative investments and multiasset solutions platforms.
K2 will use the proceeds to purchase all equity currently held by TA Associates and to retire all K2’s debt obligations. The current K2 management will not sell any of its interests at this time, and will receive no up-front consideration in this transaction. Beginning in 2016, Franklin Templeton will acquire the remainder of K2 over a multiyear period. The transaction is subject to certain conditions including regulatory approval and is expected to close in calendar Q4 2012.
William Douglass III and David Saunders, K2’s founding managing directors, have entered into long-term employment arrangements in connection with the transaction and will continue to manage the business. No changes are planned for the K2 investment management processes.
2) Goldman’s Quants Court Advisors with Dynamic Allocation Fund After Shutting Hedge Fund
A year after shutting its fallen-star Global Alpha hedge fund and replacing its quantitative investment strategies group head, Goldman Sachs Asset Management (GS) is back on track with a successful risk-management fund that targets RIAs as investors.
The Goldman Sachs Dynamic Allocation Fund (GDAFX), which is set to hit the three-year mark this coming January after an early 2010 launch, is a solid contender within Morningstar’s world allocation category, with $1.3 billion in assets, 1.39% in expenses and a year-to-date return of 8.45% as of Monday.
Read the full story on AdvisorOne.