Alternative Allocations: Due diligence—hook ‘em horns

The recent due diligence meetings in Austin, Texas, highlighted the evolving landscape of alternative investments and their growing significance in portfolio construction. Advisors engaged with specialist investment managers to discuss the transition from questioning the necessity of alternatives to focusing on effective allocation strategies. This shift underscores a broader industry trend towards incorporating alternatives as a means to achieve client goals, supported by a goals-based framework presented during the sessions.

The meetings revealed a strong inclination among advisors to increase their allocations to alternative investments, with over 95% expressing plans to do so in the coming year. This trend is attributed to enhanced education, increased familiarity with alternative asset classes, and the evolution of products that have improved access to these investments. The collaboration between wealth management firms and educational initiatives has been pivotal in expanding the options available to advisors.

The engagement at these meetings not only informed the advisors but also reinforced Franklin Templeton's commitment to advancing advisor expertise and portfolio management acumen. The discussions and insights shared are integral to shaping thought leadership and ensuring that advisors are well-equipped to utilize alternative investments effectively. Franklin Templeton continues to offer invaluable educational resources, such as the Alternatives by Franklin Templeton platform and the Alternative Allocations podcast series, to support advisors in navigating the complexities of alternative allocations.