“Change is the law of life. And those who look only to the past or present are certain to miss the future.” – John F. Kennedy
We launched the industry’s first non-traded business development company on January 2, 2009, during a time of significant market volatility and uncertainty. Our inaugural fund was a success, in part, because it offered an innovative way to help investors meet their goals.
Market challenges are different today, yet investor goals remain largely the same: growth, income and diversification. As advisors strive to meet investors’ expectations in a difficult investment environment, sluggish economic growth, historically low yields and volatility exert an unwelcome influence on returns. Moreover, our industry is facing long-term structural changes. Recent regulatory initiatives will affect the way we do business. The Department of Labor’s new fiduciary rule, which is set to take effect in April 2017, will require financial advisors to provide increased insight, education and documentation around the investment recommendations they make to clients.
The investing landscape is shifting, yet certain fundamental principles for building strong, diversified portfolios remain the same. Today, perhaps more than ever, the role of the financial advisor is critical to the long-term financial success of millions of investors. With today’s market challenges and regulatory uncertainty in mind, we are focusing on providing solutions for these basic investor needs:
1. Investors will continue to look to advisors for guidance and recommendations to achieve their financial goals.
2. Investors will require education on the challenges and opportunities presented in what has become the “new normal” investing environment.
3. As investors continue to seek income and growth within their portfolio, they may turn to alternatives to meet their goals.
At FS Investments, we have built our reputation on providing best-in-class alternative investment solutions. We believe that alternatives can play a vital role in investors’ portfolios and that portfolio construction should be a well-documented process that maps to an investor’s goals and priorities. As the effects of the DOL fiduciary rule continue to unfold, we will continue to educate on the challenges and opportunities in today’s market and to provide the tools, insight and support that advisors need to provide thoughtful guidance for their clients.
We have learned that preparation is critical to navigating market and regulatory changes. As we move into the future and an uncharted regulatory landscape, you can rely on FS Investments to continue to find innovative ways to help investors build better portfolios.
This information is educational in nature and does not constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment. FS Investments is not adopting, making a recommendation for or endorsing any investment strategy or particular security. All views, opinions and positions expressed herein are that of the author and do not necessarily reflect the views, opinions or positions of FS Investments. All opinions are subject to change without notice, and you should always obtain current information and perform due diligence before participating in any investment. FS Investments does not provide legal or tax advice and the information herein should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact any investment result. FS Investments cannot guarantee that the information herein is accurate, complete, or timely. FS Investments makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.
Any projections, forecasts and estimates contained herein are based upon certain assumptions that the author considers reasonable. Projections are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. The inclusion of projections herein should not be regarded as a representation or guarantee regarding the reliability, accuracy or completeness of the information contained herein, and neither FS Investments nor the author are under any obligation to update or keep current such information.
All investing is subject to risk, including the possible loss of the money you invest.