Investment firm Franklin Templeton Investments announced Tuesday that it has launched a new commodities fund to U.S. investors.
Franklin Templeton said in the statement that the new fund will be managed by Boston-based hedge fund firm Pelagos Capital Management.
The fund will invest in the commodities market through commodity-linked derivative instruments and will offset volatility and satisfy coverage requirements for derivative positions by investing in the securities of the U.S. government, its agencies and other fixed-income securities.
Pelagos Capital co-lead portfolio manager and co-founder John Pickart “that commodities prices -- whether for oil, corn or other staples -- have the potential to trend higher, prompted by macroeconomic factors including global population increases, economic expansion and urbanization trends."
Based in California, Franklin Templeton manages approximately $879 billion in assets. Pelagos manages three distinct alternative investment capabilities including commodities, managed futures, and hedge fund replication strategies.