Franklin Square

Philadelphia, PA

Franklin Square Capital Partners announced key findings from its research on how financial advisors view alternative investments. When asked what attributes drive their choice of providers, independent broker dealers gave equal weight to their top two drivers: “delivers strong, consistent investment performance” and “has a high level of integrity and transparency.”

“Performance is naturally a primary consideration when advisors evaluate alternative investment providers, but it is telling that they place just as much importance on transparency,” said Berta Aldrich, Chief Marketing Officer at Franklin Square. “Increasingly, advisors demand clarity and are looking for thorough education before they make alts recommendations to investors.”

Other notable findings from the in-depth survey of 275 financial professionals include the following:

  • Looking ahead, the top five alternative investments being considered for allocation include mutual funds (72%), REITs (63%), ETFs (62%), oil and gas programs (37%) and business development companies (36%).
  • 89% of advisors expect alternatives to have a low degree of correlation to the broader markets.
  • 53% indicated that they are open to recommending alternatives with limited liquidity.
  • 23% strongly agree that alternatives should outperform traditional investments while 28% strongly disagree.
  • About Franklin Square

    Franklin Square is a leading manager of alternative investment funds designed to enhance investors’ portfolios by providing access to asset classes, strategies and asset managers that typically have been available to only the largest institutional investors. The firm’s funds offer “endowment-style” investment strategies that help construct diversified portfolios and manage risk. Franklin Square strives not only to maximize investment returns but also to set the industry standard for best practices by focusing on transparency, investor protection and education for investment professionals and their clients.

    Founded in Philadelphia in 2007, Franklin Square quickly established itself as a leader in the world of alternative investments by introducing innovative credit-based income funds, including the industry’s first non-traded BDC. The firm managed approximately $17.0 billion in assets as of September 30, 2015.