Tew explains that for Franklin Templeton Canada, the conversations held at each the advisor and the agency stage are important. Agency conversations are key to set parameters and perceive the strategic targets of organizations. These advisor conversations inform product growth.
One of many main areas of development that Franklin Templeton has recognized each globally and inside Canada is in non-public belongings or alternate options. Between 2019 and 2024, Ashton explains, their alternate options enterprise has grown from $45 billion (USD) in belongings to $250 billion (USD). That development has been pushed partially by institutional appetites, however the retail excessive web price section has change into a major supply of funding in these belongings too. These shoppers, they clarify, are looking for diversification and non-correlated returns. The acquisition of Legg Mason added a substantial quantity of alternate options functionality to Franklin Templeton, in addition to a novel alternative for the Canadian market.
As a result of Legg Mason had no presence in Canada previous to the acquisition, Franklin Templeton may very well be strategic concerning the actual capabilities they might roll out in Canada in addition to the autos by which they may very well be accessed. As they rolled out these merchandise, Tew and Ashton clarify that there was a heavy funding in academic sources for advisors and shoppers. Given the relative novelty of a few of these belongings and techniques, in addition to different components like limits in transparency and liquidity, schooling was important.
“It was a giant strategic initiative of ours to deliver our flagship non-public markets to Canada this yr. Whereas there was one cohort of advisors that understood these belongings we observed that schooling was missing in the remainder of {the marketplace},” Tew says. “So taking a few of the supplies that we have now globally, we have now labored to be a frontrunner in that schooling house in Canada and produce the entire trade together with us.”
Past help and schooling with new non-public asset merchandise, Tew and Ashton clarify that Canadian advisors have known as for extra help on mounted earnings merchandise. Given what they see as a considerable amount of money sitting on the sidelines, and potential reticence to enter fairness markets at a excessive, most of the conversations Tew’s group is having with Canadian advisors are as regards to mounted earnings.