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A Global Investment Perspective Is Imperative, Say 92 Per Cent Of Advisors
Harriet Davies
16 March 2011
Global investing on behalf of clients will become the norm over the next decade, and 92 per cent of US advisors believe it is essential for investors to have the resources and expertise to accommodate this, a new survey by Franklin Templeton Investments and SourceMedia reveals. As a flattening global economy and growth in emerging markets drive a need for a global investment perspective over the coming decade, advisors think resources in this area are not only important but essential for the successful management of investments. Among the findings of the survey are that 71 per cent of advisors think the best investment opportunities in the next decade will be outside of the US, and that 63 per cent think clients’ portfolios are underweight in global funds. The survey is based on 556 financial advisor respondents. “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.” As these trends progress, the majority of advisors will recommend global investments as a core holding this year, as well as emerging markets funds. Another point to come to light is that when choosing investment managers, and particularly a core equity manager, advisors are looking for expertise on a global basis. “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. The survey was conducted online between the dates of 19 October and 9 November 2010.