Advisers Say Global Investments are Under-Weighted

Of the 556 financial advisers in the U.S. who responded to Franklin Templeton’s survey, 92% believe that global resources and expertise will be essential to successfully manage investments this decade. The survey pointed to a flattening global economy and growth in emerging markets as causes behind this trend (see “Bullish Behavior towards Global Equities at New Highs”).

Sixty-three percent of U.S. advisers think that their clients’ portfolios are currently under-weighted in global funds and 83% expect the average amount of their clients’ investments to increase in global funds over the next three to five years.

“We are witnessing a shift where financial advisers 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 advisers recognize these shifts and are selecting investments positioned to take advantage of opportunities fueled by global growth.”