This is a marketing communication. Please refer to the prospectus or information document of the AIF and, where available, to the KID before making any final investment decisions.
Overview
- Summary of Fund Objective
- Meet Your Manager
- What Are The Key Risks?
Summary of Fund Objective
The investment objective of FLEX Feeder-I (the "Fund") is to seek long-term capital appreciation, by investing as a feeder fund all or substantially all of its assets through FLEX Master-I. FLEX Master-I will invest all or substantially all of its assets through the FLEX Aggregator-I. The Fund intends to invest in a portfolio of private equity and other private assets (collectively, "Private Assets") by acquiring interests in Private Investment Funds. It has the flexibility to invest in Private Assets across asset types, including, but not limited to, buyout, growth, venture, credit, mezzanine, infrastructure, energy and other real assets, subject to compliance with its investment strategies and restrictions and applicable law.
Key Differentiators:
Deeply experienced and resourced team
With one of the most experienced secondary teams globally, FLEX-I is led by Lexington's 26 partners who collectively bring an average of 18 years at the firm and leverage the extensive sourcing power of the Lexington platform.
Broad diversified exposure
FLEX-I follows a consistent and disciplined strategy, allocating investments across various industries, geographies, and top-tier private equity managers. Through expertly negotiated market transactions, the fund provides access to leading private investment funds.
Accessible structure
FLEX-I is structured as a perpetually offered Luxembourg domiciled Part II UCI. With monthly subscriptions, lower investment minimums and quarterly liquidity*, providing flexible access to private equity opportunities.
*Redemptions of shares in FLEX-I are expected to be offered on a quarterly basis on the first business day of each calendar quarter (up to 5% of the fund's net asset value per quarter), provided that the relevant redemption request is received on the first business day of the previous month. No assurance can be provided as to the liquidity or fund interests to potential investors. Liquidity will be managed by Franklin Templeton Investment Solutions, which is an affiliate of Franklin Advisers, Inc. Franklin Advisers, Inc. will be responsible for making investment decisions for FLEX-I's investment in a portfolio of debt and other securities, including cash and cash equivalents, liquid fixed income securities and other credit instruments, derivatives and other investment companies, including money market funds and exchange-traded funds.
Meet Your Manager
Lexington partners
Lexington Partners is a leading global alternative investment manager of secondary private equity and co-investment funds.
What Are The Key Risks?
The Fund does not offer any capital guarantee or protection and you may not get back the amount invested.
- The Fund is subject to the following risks which are materially relevant:
Concentration risk: An investment should be considered long-term within a multi-asset portfolio and should not be viewed individually as a complete investment program. Accordingly, an investment in the Fund should only be considered by persons for whom a speculative, illiquid, and long-term investment is an appropriate component of a larger investment program and who can afford a loss of their entire investment.
Liquidity risks: Investments in the Fund will have limited liquidity and redemption requests may be subject to the redemption limitation and the early redemption deduction. The Fund should be viewed as a long-term investment, as it is inherently illiquid and suitable only for investors who can bear the risks associated with the limited liquidity of the Fund. Limited liquidity is provided to shareholders only through the Fund’s quarterly redemption program for no more than 5% of the Fund’s NAV per quarter. In exceptional circumstances and not on a systematic basis, the Fund may make exceptions to, modify or suspend, in whole or in part, the redemption program if in the Fund’s board of director’s or its delegate’s reasonable judgment it deems such action to be in the Fund’s best interest and the best interest of the Fund’s investors. Shareholders may not be able to sell their shares in the Fund at all or at a favourable price.
Redemptions: Investments in the Fund will have limited liquidity and redemption requests may be subject to the redemption limitation and the early redemption deduction. In case of redemption requests exceeding certain thresholds, redemption fees and other similar fees, and may in certain circumstances be subject to suspension.
Leverage risk: The Fund may be subject to leverage risk. The Fund will not incur indebtedness, directly or indirectly, that would cause its Leverage Ratio (i.e. Aggregate Net Leverage divided by Total Asset) to be in excess of 35%. The use of leverage creates an opportunity for increased share gains but also creates risks for shareholders. The use of leverage can increase the volatility of investment returns and subject a fund to magnified losses underlying investments decline in value. A fund with a higher leverage ratio will be more sensitive to volatility and more susceptible to losses due to declines in asset values, than a fund with a lower ratio.
Fund distributions: Distributions are not guaranteed and are subject to change. The Fund cannot guarantee the amount or frequency of distributions.
Private market investment risks: The fund may be able to invest in private securities that are illiquid and thinly traded, which may limit the manager’s ability to sell such securities at their fair market value or when necessary to meet the portfolio’s liquidity needs. To the extent the fund invests in privately held companies they present certain challenges and involve incremental risks as opposed to investments in public companies, such as dealing with the lack of available information about these companies as well as their general lack of liquidity. There also can be no assurance that companies will list their securities on a securities exchange, as such, the lack of an established, liquid secondary market for some investments may have an adverse effect on the market value of those investments and on an investor’s ability to dispose of them at a favourable time or price.
Derivatives risk: The Fund may be subject to risks related to hedging and risks related to hedging and derivative transactions. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance.
Complete information on the risks of investing in the Fund are set out in the Fund's prospectus.
Fund Managers
Performance
- Discrete Annual Performance
- Cumulative Performance
- Annualised Performance
- Calendar Year Performance
- Risk Measures
Discrete Annual Performance
Cumulative Performance
Annualised Performance
Calendar Year Performance
Risk Measures
Portfolio
Pricing
Documents
Important Legal Information
This fund meets the requirements under Article 6 of the EU Sustainable Finance Disclosure Regulation (SFDR); the fund does not promote environmental and/or social characteristics or have a sustainable investment objective under EU regulations.
This marketing material is intended to be of general interest only and should not be construed as investment advice nor does it constitute legal or tax advice and it is not an information document required by any legislative provision nor an offer for shares or an invitation to apply for shares of the Luxembourg-domiciled SICAV Franklin Lexington PE Secondaries Fund (the "Fund or FLEX"). For the avoidance of doubt, if you make a decision to invest, you will be buying units/shares in the Fund and will not be investing directly in the underlying assets of the Fund. The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance does not predict future returns. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, your performance may also be affected by currency fluctuations.
Franklin Templeton ("FT") shall not be liable to any user of this document or to any other person or entity for the inaccuracy of information or any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission. Any opinions expressed are the author's at publication date and they are subject to change without prior notice. Any research and analysis contained in this marketing material has been procured by FT for its own purposes and is provided to you only incidentally. Data from third party sources may have been used in the preparation of this document and FT has not independently verified, validated or audited such data. References to particular industries, sectors or companies are for general information and are not necessarily indicative of the Fund's holding at any one time. No shares of the Fund may be directly or indirectly offered or sold to residents of the United States of America. Shares of the Fund are not available for public distribution in all jurisdictions and prospective investors should consult their financial advisor before deciding to invest. The Fund may use financial derivatives or other instruments which may entail specific risks more fully described in the Fund's Prospectus and, where available, in the relevant KID or any other relevant offering document. Subscriptions to shares of the Fund can only be made on the basis of the current Prospectus of the Fund, and, where available, the relevant KID (or any other relevant offering document), accompanied by the latest available audited annual report and the latest semi-annual report if published thereafter. These documents can be found on our website at www.ftidocuments.com, or obtained, free of charge, from your local FT representative. The Fund's documents are available in English.
In addition, a summary of investor rights is available from www.franklintempleton.lu. The summary is available in English.
FLEX is notified for marketing in multiple EU Member States under the UCITS Directive. The AIFM may decide to terminate the arrangements made for the marketing of FLEX in accordance with Article 32a of the UCITS Directive 2011/61/EU.
Issued by Franklin Templeton International Services S.à r.l. Investors can also obtain these documents free of charge from any of the following local authorised FTI representatives.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Indices are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
Important data provider notices and terms available at www.franklintempletondatasources.com.
Issued by Franklin Templeton International Services S.à.r.l., Swedish branch, filial, C/o Cecil Coworking, Norrlandsgatan 10, 111 43 Stockholm, Sweden. Email: [email protected]. FTIS is authorised and regulated in the Luxemburg by the Commission de Surveillance du Secteur Financier and is authorized to conduct certain financial services in Denmark, in Sweden, in Norway, on Iceland and in Finland.
Footnotes
The above listed Funds prices are unconfirmed unless stated otherwise and for information only, as they have not yet been verified by the Administrative Agent of the relevant Funds. Neither the Fund itself nor Franklin Templeton accepts responsibility for any reliance placed on the prices indicated and the information included in this data file. Purchase, exchange and redemptions of Shares can only be made on the basis of confirmed prices. Confirmed prices may be obtained after 12pm noon from Franklin Templeton.
12.5% of Total Return subject to a 5% annual Hurdle Amount and a High Water Mark with 100% Catch-Up (as defined in the Prospectus). Please refer to the prospectus for additional details regarding the performance fee.
Total Expense Ratio (TER) includes the fees paid to the management company, the investment manager and the depository, as well as certain other expenses. The TER is calculated by taking the relevant main material costs paid out over the 12-month period indicated and dividing them by the average net assets over the same period. The TER does not include all expenses paid by the fund (for example, it does not include what the fund pays for buying and selling securities). For a comprehensive list of the types of costs deducted from fund assets, see the prospectus.
For funds that lack 12 months of data, or for which TER is not likely to give a fair idea of likely future costs, the figure shown is an estimate.
The charges are the fees the fund charges to investors to cover the costs of running the Fund. Additional costs, including transaction fees, will also be incurred. These costs are paid out by the Fund, which will impact on the overall return of the Fund.
Fund charges will be incurred in multiple currencies, meaning that payments may increase or decrease as a result of currency exchange fluctuations.
All charges will be paid out by the Fund, which will impact on the overall return of the Fund.Redemptions may be subject to an Early Redemption Deduction of up to 2.00% on the NAV of the Shares being redeemed if the resulting Redemption Date falls within a 12-month period from the date of the redeeming Shareholder's subscription. Please refer to the prospectus for additional details regarding the Early Redemption Deduction, and other fees and expenses of the Fund.