MutualFundWire.com: SeekingAlpha Critiques Franklin Message: "Gain From Their Perspective"
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Monday, October 21, 2013

SeekingAlpha Critiques Franklin Message: "Gain From Their Perspective"


"Gain From Their Perspective." That's one of the messages that Franklin [profile] projects to the public in an effort to communicate its merits.

SeekingAlpha drills down on this message, including its merits and then outlines that they like about Franklin.

In short, this is the essence of Franklin's message, from the viewpoint of SeekingAlpha:

Franklin Resources likes to indicate that you can "gain from their perspective." For instance, they indicate that one advantage that they have is an abundance of resources across the globe. Specifically:

"We believe superior insight into the cultural nuances of an investment helps us spot opportunities others may miss. To deliver this competitive advantage to our shareholders, we "think globally and act locally."

The website goes on to indicate that Franklin Resources has more than 590 investment professionals in 35 countries, with an average tenure of over 16 years in the industry and over 10 years with the firm. And conceivably this is a significant point - a large group of experienced professionals around the world appears to be a solid advantage.

However, the website adds, "we don't believe that this specifically provides an overwhelming economic moat. For one thing, any large investment company is likely to have resources strewn about the world. Add in technology making the globe a much smaller place and it seems like this "advantage" is diminishing, if existent in the first place."

Instead this is what they like about Franklin:

The real advantage of Franklin Resources - in our opinion - is their underlying ideology and presentation of topics. You can get advice and investment aggregation vehicles almost anywhere, so it must follow that Franklin Resources brings something else to the table. This is precisely what we have observed. Their perspective might be the company's backbone, but properly advertising this perspective is what brings clients in the door.

A quick review of the company's "2020 vision" website will reveal an array of cool tools and investing presentations. For instance, Franklin Resources makes the "Case for Equities" using 5 proposals:

1. History Favors a Return to the Mean
2. The World is Getting Smaller
3. Innovation Will Surprise Us… Again
4. Quality Companies Are Not Short-Sighted
5. Equities Help Protect Purchasing Power

Those are great points that provide solid information, not to mention some handy graphics, state the writers of the article.


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