Franklin Templeton Investments announced Wednesday it has entered into a strategic relationship with Pelagos Capital Management, LLC, acquiring a 20% equity stake in the firm.

Pelagos, an independent investment advisor, was founded in 2005 and is based in Boston. It creates alternative investment products and services. Pelagos manages three alternative investment products: A commodity strategy, a managed futures strategy, and a hedge fund replication strategy.

"One of the ways that we have built Franklin Templeton's global business is by making strategic investments in small, yet highly experienced asset management companies whose expertise complements Franklin Templeton's global offerings and meets our world class standards," Greg Johnson, Franklin’s chief executive officer, said in a press release. "This new relationship with Pelagos is an important step within our overall plan to expand Franklin Templeton's alternative strategies platform."

Pelagos will work with Franklin Templeton Alternative Strategies, which was established in 2008. The unit includes the global asset allocation capabilities of Franklin Templeton Multi-Asset Strategies; Franklin Templeton's asset management joint ventures in Vietnam, China and Dubai; its wholly-owned local asset management groups in Brazil, Canada, India, Japan and Korea; the emerging market private equity, mezzanine, and infrastructure capabilities of Darby Overseas Investments, and; the global REIT and private multi-manager real estate and real assets capabilities of Franklin Templeton Real Estate Advisors.

Franklin Templeton Investments, which is based in San Mateo, Calif., had $664 billion in assets under management as of Oct. 31.