Franklin Templeton Canada Introduces Clarion Partners' Private Real Estate Expertise to Canadians
Firm partners with iCapital® to Offer Alternative Investments to Qualified Investors
TORONTO, Nov. 22, 2023 /CNW/ - Franklin Templeton Canada today introduced Clarion Partners' private real estate investment strategy to Canadian qualified investors, who will now be able to access this strategy through iCapital's customized technology and servicing solutions.
Clarion Partners is one of the largest pure-play real estate investment managers, with 40 years of experience managing assets through multiple market cycles on behalf of private and public clients globally. This private real estate offering through Clarion Partners is part of Franklin Templeton's US$255 billion alternatives business, which also includes alternative credit through Benefit Street Partners, hedge fund strategies via K2 Advisors and secondary private equity and co-investments via Lexington Partners.
"Franklin Templeton has significantly expanded the breadth and scale of its alternative investment capabilities over the past three years," said Andrew Ashton, Head of Americas (ex-US) Distribution and Chairman of Franklin Templeton Canada. "We are excited about expanding our alternative offerings in Canada and will start by bringing Clarion Partners' private real estate strategy to the Canadian market through our partnership with iCapital."
Private real estate can be used as an inflation hedge as it has historically performed well in periods of inflation as such periods have spurred rent increases which in turn generate higher cash flows. Over the past 10 years, adding private real estate has historically improved risk-adjusted returns when added to an equity and bond portfolio.1
"Our singular focus on real estate allows us to identify potential opportunities that others may overlook," said Dave Gilbert, CEO, Clarion Partners. "We invest beyond what people typically associate with private real estate, finding that properties such as multi-family apartments, industrial warehouses and life sciences facilities represent attractive investment opportunities."
Private real estate investments seek to offer:
Durable income and consistent returns, while helping diversify portfolio risk2
Attractive yields in today's rate environment2
Capital appreciation as properties increase in value over time, driven by property improvements, capital restructuring and/or capital repositioning, and market rent growth
Low volatility and less correlation to stocks and bonds3
iCapital is a leading global fintech company driving access to alternative investments for the wealth management industry by providing intuitive end-to-end technology and service solutions, education tools and resources, robust diligence, portfolio analytics capabilities and creating access vehicles. Its solutions enable organizations to streamline and scale their operational infrastructure for alternative investments and to provide access to direct investments and feeder funds at lower minimums through simplified digital workflows. iCapital is also registered in Canada as an investment fund manager, portfolio manager and exempt market dealer. Its mission is to make institutional-quality private investments more widely accessible to advisors and their clients, while enabling managers to reach new sources of capital.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. In Canada, the company's subsidiary is Franklin Templeton Investments Corp., which operates as Franklin Templeton Canada. Franklin Templeton's mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,300 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over US$1.3 trillion (over CAN$1.8 trillion) in assets under management as of October 31, 2023. For more information, please visit franklintempleton.ca and connect with Franklin Templeton on Twitter, Facebook and LinkedIn, and read the Beyond Bulls & Bears blog.
About Clarion Partners
Clarion Partners, LLC, has been a leading real estate investment manager for over 40 years. Headquartered in New York, the firm maintains strategically located offices across the United States and Europe. With more than US$79 billion in total real estate and debt assets under management as of September 30, 2023, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum to approximately 500 institutional investors across the globe. Clarion Partners is an independent subsidiary of Franklin Templeton. More information about the firm is available at clarionpartners.com.
1. Clarion Partners Investment Research, NCREIF, REIT.com, S&P, Bloomberg, 2023Q2. Note: Private Equity Real Estate Index = NFI-ODCE is used as a performance benchmark for core real estate (stabilized institutional quality assets). S&P 500 is one of the best presentations of the U.S. stock market. Bloomberg US Aggregate Bond Index is used to represent investment-grade bonds being traded in the United States. Risk is measured using standard deviation of annual total returns. Past performance is not indicative of future results, and a risk of loss exists. Index returns do not include managements fees or related fees.
2. Clarion Partners Investment Research, NCREIF, REIT.com, Bloomberg, REIT.com, 2022Q4. Statements are based on 10-year historical observations for return and risk for private real estate represented by NFI-ODCE, stocks by the S&P 500 Index, and bonds by the Bloomberg US Aggregate Bond Index.10-year yield average is based on historical trailing 12-month observations for dividend yield for stocks and publicly traded REITs, yield-to-worst for bonds and 12-month income for private real estate. Publicly traded REITs are represented by FTSE NAREIT All Equity REITs Index.
3. Diversification does not assure a profit or protect against market loss. All investments involve risk, including loss of principal, and there is no guarantee that investment objectives will be met. Past performance is no guarantee of future results.
Copyright © 2023. Franklin Templeton. All rights reserved.
SOURCE Franklin Templeton Investments Corp.
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