• Home
  • Equities
  • Fixed Income
  • Alternative Investments
  • Multi-Asset
  • Passive
  • Thematic
  • Events
  • Market Intelligence
  • Investment Week
  • Newsletters
  • Follow us
    • RSS
    • Twitter
    • LinkedIn
    • Newsletters
  • Events
    • Upcoming events
      event logo
      Milan Forum 2019 (March)

      InvestmentEurope's 9th annual Milan Forum 2019 will take place on 8th March at the Four Seasons Hotel, Milan.

      • Date: 08 Mar 2019
      • Four Seasons Hotel, Milan
      event logo
      Nordic Summit Stockholm 2019

      InvestmentEurope's Nordic Summit returns to Stockholm for the 5th year in 2019.

      • Date: 12 Mar 2019
      • Grand Hotel, Stockholm
      event logo
      Frabelux Forum 2019

      Now in its 2nd year InvestmentEurope's Frabelux Forum will take place on 20th March at the Ritz Hotel, Paris.

      • Date: 20 Mar 2019
      • The Ritz Hotel, Paris
      event logo
      Women in Investment Awards Italy

      InvestmentEurope's Women in Investment Italy will honour the inspiring achievements of women across all parts of the investment industry in Italy

      • Date: 02 Oct 2019
      • Melia Milano Via Masaccio 19 Milan, Milan
      View all events
      Follow our events

      Sign up to receive email alerts about our events

      Sign up

  • Market Intelligence
  • Investment Week
Investment Europe
Investment Europe

Sponsored by

Sharing Alpha
  • Home
  • Equities
  • Fixed Income
  • Alternative Investments
  • Multi-Asset
  • Passive
  • Thematic
  • Fixed Income

Franklin Templeton allocates to funds, from the top-down

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  

Having an element of top-down analysis, a ‘big picture' view of the global economy and of how asset classes react in it, will be crucial to investing funds successfully over the coming years.

Having an element of top-down analysis, a ‘big picture’ view of the global economy and of how asset classes react in it, will be crucial to investing funds successfully over the coming years.

This was the central message in November from independent analysts Fitch, who warned in their prognosis for fund management that traditional, fundamental, bottom-up investing will not be enough in future.

Related articles

  • Franklin Templeton allocates to funds, from the top down
  • German selectors discuss yields, multi-asset and emerging markets
  • Europe seen as unlikely haven
  • Focus on hedge funds – Franklin Templeton explains logic behind K2 deal

“Managers need to develop thematic, sector and country views which requires developing a new mindset, or hiring staff with more macro backgrounds,” the analysts said.

Macro factors, politicians and their decisions generally had a larger effect than underlying entities on the relative performance of asset classes since 2008. Few practitioners expect this to change soon.

At the fund of funds level, Franklin Templeton’s $30bn multi-asset investment unit, led by CIO Brent Smith, already includes a large element of top-down analysis in its investment process.

Franklin Templeton formed the unit in 2007 to unify, under one investment process and philosophy, its various multi-asset groups.

Multi-asset strategies have actually been run at what is one of the world’s top 10 diversified asset managers for 25 years, even though Franklin Templeton has perhaps been better known for its emerging markets expertise under Mark Mobius, and its fixed income management.

Nevertheless, the unit’s 24 members run 87 off-the-shelf multi-asset funds, plus separately structured mandates for individual clients in regions like Eastern Europe and Italy. Some strategies target returns, others aim for specific volatility and risk levels, or focus on specific geographies.

Matthias Hoppe (pictured), Frankfurt-based vice president and portfolio manager with Franklin Templeton’s Multi-Asset Strategies (FTMAS) group, says: “We believe that markets have been very macro-driven, and driven by newsflow, more than by fundamentals. This year news flow has simply overridden the fundamentals.”

Various studies from investment banks in 2010 had implicitly supported this, by finding less than 10% of a stock price move was because of characteristics of the company.

 

12345
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  
  • Topics
  • Fixed Income
  • Equities
  • Fund of Funds
  • Europe
  • Germany
  • Germany
  • Allocation
  • Fixed Income (Bonds)
  • Equities
  • Europe
  • Fixed income
  • Franklin Templeton Investments
  • Fund of funds (Fof)
  • Regions
  • Western Europe

More From News

BBVA issues structured green bond for Mapfre

  • Fixed Income
  • 19 February 2019
Artisan Partners launches developing world Ucits fund

  • UK
  • 19 February 2019
Italian investment manager BlueStar unveils global multi-asset fund

  • Multi-asset
  • 19 February 2019
BNPP AM expands low carbon footprint SRI offer with new ETF

  • Passive
  • 19 February 2019
Capitulum AM appoints managing director

  • Germany
  • 19 February 2019
Back to Top

Most read

Swiss bank CEO steps down
UBS overhauls bonuses for 10,000 staff
Credit Suisse announces changes to board of directors
Lombard Odier names managing partner
Generali completes strategic partnership with French boutique
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Privacy and Cookie policy
  • RSS
  • Twitter
  • LinkedIn
  • Newsletters

© Open Door Media Publishing Ltd, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration number 08584522