San Mateo, CA, March 15, 2011 — As financial advisors consider opportunities for clients in 2011, a new survey reveals 92 percent of U.S. advisors believe that global resources and expertise will be essential to successfully manage investments in the next decade. The survey, conducted by Franklin Templeton Investments in partnership with SourceMedia, indicates that a majority of respondents believe that factors like a flattening global economy and growth in emerging markets point to the need for global investment capabilities.
Of the 556 financial advisors who responded to the survey, 71 percent believe the greatest investment opportunities over the next decade will be outside the U.S., and 63 percent of U.S. advisors think that clients’ portfolios are currently under-weighted in global funds. It follows that 83 percent of advisors expect the average amount their clients invest in global funds to increase over the next three to five years.
“We are witnessing a shift where financial advisors and investors increasingly consider global investing as a part of their core portfolio,” said David McSpadden, senior vice president of Global Advisory Services for Franklin Templeton Investments. “Continued expansion of international trade and growth of a new consumer class will drive change over the next decade. Financial advisors recognize these shifts and are selecting investments positioned to take advantage of opportunities fueled by global growth.”
Reflecting that, 66 percent of advisors plan to recommend global investments as a core holding for many clients throughout the year. More specifically, 71 percent of respondents plan to recommend emerging markets funds to many clients in 2011.
In fact, the survey found that 78 percent of advisors indicated that global investment expertise is important, specifically when selecting a core equity asset manager. “The view that global expertise is essential for investment managers is driven by not only the growth of global investing, but also by the increasingly complex and interconnected nature of world markets in general,” said John Greer, executive vice president of Global Advisory Services.
In separate research from kasina and Horsesmouth’s FA Vision Survey, when asked to name the firm with the most global expertise, Franklin Templeton Investments was selected by financial intermediaries more frequently than any of the other top 100 mutual fund and ETF providers — 21.9 percent of advisors selected Franklin Templeton.
“Franklin Templeton has established a very strong global brand,” said Lee Kowarski, principal at kasina. “Their messaging is consistent across channels, and they consistently rank among the top mutual fund companies when we survey financial advisors about global expertise.”
As part of their program, 2020 Vision: The Case for Equities in the Decade Ahead, Franklin Templeton has developed the educational guide, Global — The New Core, designed to help advisors and their clients understand how global investments may increasingly serve as a core component within portfolio allocations.
Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN/(800) 342-5236 or visit franklintempleton.com. Please carefully read a prospectus before you invest or send money.
Survey Methodology
The Franklin Templeton survey was conducted online between the dates of October 19 and November 9, 2010; 556 financial advisors responded. The survey was conducted with a 95% confidence level and a ±4.15% margin of error. Survey participants were selected randomly from 40,000 reader emails provided by SourceMedia’s Investment Advisor Group, which includes Financial Planning, On Wall Street and Bank Investment Consultant.
About FA Vision
FA Vision is a service from kasina and Horsesmouth that provides asset managers with unmatched access to financial intermediaries’ behaviors, preferences, and opinions. In the semi-annual FA Vision benchmarking survey, intermediaries evaluate 23 mutual fund companies on a variety of criteria, including products, wholesalers (external and internal), and brand attributes. For more information, visit www.kasina.com/favision.
About SourceMedia
SourceMedia, an Investcorp company, is a diversified business to business media company serving the financial industry and the related fields of professional services and technology. SourceMedia offers its clients and subscribers professional information services – both print and digital — industry‐standard data applications, in‐depth seminars and conferences, and specialized marketing services. For more information, visit www.sourcemedia.com.
About kasina
kasina’s commitment to innovating distribution in the financial services industry has made it one of the most influential strategy consulting firms in its sector. kasina works with a wide variety of clients from five continents, including firms representing 90% of the U.S.’s total assets under management. An overview of services offered by kasina is available at www.kasina.com.
About Horsesmouth
Horsesmouth is dedicated to helping financial advisors build better businesses for themselves and their clients. Through its pioneering online service and advisor community, as well as its acclaimed advisor programs and workshops, Horsesmouth is the trusted partner of over 70,000 advisors across the financial services industry. For more information, visit www.horsesmouth.com.
About Franklin Templeton
Franklin Resources, Inc. is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA–based company has more than 60 years of investment experience over $693 billion in assets under management as of February 28, 2011. For more information, please visit franklintempleton.com.