Franklin Templeton Advisor Survey: 69% Maintaining Consistent Income Most Important, Biggest Risks Include Recession, Growth Deceleration, Inflation & Geopolitical Risks
14th March 2023 | Singapore
Franklin Templeton with $1.4 trillion AUM (Assets under Management) surveyed 110 independent financial advisors & digital wealth platform representatives on their clients’ investment goals and key concerns, with 69% of respondents selected maintaining consistent income as the most important. The advisors and digital wealth platform representatives also responded on their top concerns on risks – 1) Recession (44%) or Growth Deceleration, 2) Inflation (30%) and 3) Geopolitical Risks (22%). The survey was conducted at the Franklin Templeton “Pushing the boundaries of Income and Innovation” event in Singapore, with Franklin Income Investors Chief Investment Officer Ed Perks and Franklin Templeton Senior Vice-President Digital Strategy & Wealth Management APAC Chetan Karkhanis sharing their insights into new opportunities for income & innovation. Franklin Income Investors Chief Investment Officer Ed Perks on Market Outlook & Opportunities: “With longer-term risks of inflation, possible monetary policy normalization, and potential for growth deceleration, a dynamic asset allocation approach and a diversified portfolio will play a critical role in navigating market risks, while widening the opportunity set for income generation and capital appreciation … …We are favoring fixed income over equity, especially investment grade corporate bonds, as they offer compelling yields and risk profiles. U.S. Treasuries also are an increasing part of our strategy, given their attractive yields and downside risk management against potential market drawdowns. Elsewhere, we believe that a broad exposure to equities remains important, particularly in companies that can prove that they are resilient and offer appreciation potential.” Franklin Templeton Senior Vice-President Digital Strategy & Wealth Management APAC Chetan Karkhanis on Innovation & Opportunities: “The asset and wealth management industry continues to progressively evolve with technological innovation, and generational shifts will promote the adoption of hybrid advisor models … … Focusing on the mission of delivering better investment outcomes, enhancing client-centric distribution offerings, and driving operational efficiencies, we believe that keeping any eye on innovative trends, technologies and ideas is the best way of adding value for our clients.” More info below.
“ Franklin Templeton Advisor Survey: 69% Maintaining Consistent Income Most Important, Biggest Risks Include Recession, Growth Deceleration, Inflation & Geopolitical Risks “
Franklin Templeton insights into new opportunities for income & innovation
Franklin Income Investors Chief Investment Officer Ed Perks on Market Outlook & Opportunities: “With longer-term risks of inflation, possible monetary policy normalization, and potential for growth deceleration, a dynamic asset allocation approach and a diversified portfolio will play a critical role in navigating market risks, while widening the opportunity set for income generation and capital appreciation.
Following the U.S. Federal Reserve’s series of aggressive interest rate hikes, inflationary pressures are showing signs of easing. While additional rate hikes are likely necessary, the U.S. economy continues to display resilience, coupled with positive global dynamics such as China’s reopening.
Given the sharp rise in yields and spreads on fixed income assets, the opportunity set to invest across the fixed income landscape – across the quality spectrum – has expanded. We are favoring fixed income over equity, especially investment grade corporate bonds, as they offer compelling yields and risk profiles. U.S. Treasuries also are an increasing part of our strategy, given their attractive yields and downside risk management against potential market drawdowns. Elsewhere, we believe that a broad exposure to equities remains important, particularly in companies that can prove that they are resilient and offer appreciation potential.”
Franklin Templeton Senior Vice-President Digital Strategy & Wealth Management APAC Chetan Karkhanis on Innovation & Opportunities:
“The asset and wealth management industry continues to progressively evolve with technological innovation, and generational shifts will promote the adoption of hybrid advisor models.
It is interesting to see that the majority (72%) of attendees polled during the event selected artificial intelligence (AI) and machine learning as the most promising innovation trend for asset management in 2023.
This is one of the many areas of innovation that Franklin Templeton is focused on – alongside others such as dynamic personalization and customization, data analytics, digital assets and tokenization, to mention a few. Focusing on the mission of delivering better investment outcomes, enhancing client-centric distribution offerings, and driving operational efficiencies, we believe that keeping any eye on innovative trends, technologies and ideas is the best way of adding value for our clients.”
Franklin Templeton “Pushing the boundaries of Income and Innovation” event in Singapore
The survey was conducted at the Franklin Templeton “Pushing the boundaries of Income and Innovation” event in Singapore, attended by an audience of over 110 clients, comprising independent financial advisers and digital wealth platform representatives, the event covered topics such as:
- Moves by the U.S. Federal Reserve and outlook on U.S. interest rates;
- Recession risks and asset class outlook in the current market environment; and
- New areas of technological innovation in the asset management industry offering access to alternative sources of return, income, and utility for investors’ portfolios.
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 155 countries. 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 boutique specialization on a global scale, bringing extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has 75 years of investment experience and approximately US$1.4 trillion in assets under management as of January 31, 2023. For more information, please visit www.franklintempleton.com.sg
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