Skip to content

CONTRIBUTORS

Wylie Tollette, CFA

Chief Investment Officer,
Franklin Templeton Investment Solutions

Introduction

The fifth annual Franklin Templeton Investment Solutions (FTIS) Investment Symposium was held on November 7. This live research-focused forum delved into the most pressing topics and economic trends facing investors today. This year’s topics included forward-looking views on artificial intelligence (AI), a potential new interest-rate regime, the alternative investments landscape, and asset-allocation views (current opportunities/potential bubbles).

The event was divided into four panels, which gave us the chance to ask the really big questions on key topics we believe will influence returns and risk over the next decade.

At times, there was agreement; often, there was spirited debate. The panels were:

  • Goodbye COVID, Hello AI
  • A Brave New World of Higher Rates
  • Alternatives are Here to Stay
  • Putting it All Together (Asset Allocation)

These conversations have significant practical applications; primarily, they help the FTIS Research Team form its long-term Capital Market Expectations, which are used as the basis of portfolio construction for clients and prospects. This written account represents the views expressed by our panelists.

WHAT ARE THE RISKS?

All investments involve risks, including possible loss of principal.

Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default.

Equity securities are subject to price fluctuation and possible loss of principal. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks.

Special risks are associated with investing in foreign securities, including risks associated with political and economic developments, trading practices, availability of information, limited markets and currency exchange rate fluctuations and policies; investments in emerging markets involve heightened risks related to the same factors. Sovereign debt securities are subject to various risks in addition to those relating to debt securities and foreign securities generally, including, but not limited to, the risk that a governmental entity may be unwilling or unable to pay interest and repay principal on its sovereign debt. To the extent a strategy focuses on particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks of adverse developments in such areas of focus than a strategy that invests in a wider variety of countries, regions, industries, sectors or investments. China may be subject to considerable degrees of economic, political and social instability. Investments in securities of Chinese issuers involve risks that are specific to China, including certain legal, regulatory, political and economic risks.

Real estate securities involve special risks, such as declines in the value of real estate and increased susceptibility to adverse economic or regulatory developments affecting the sector.

To the extent the fund invests in alternative strategies, it may be exposed to potentially significant fluctuations in value.

Important Legal Information

This document is for information only and does not constitute investment advice or a recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. This document may not be reproduced, distributed or published without prior written permission from Franklin Templeton.

Any research and analysis contained in this document has been procured by Franklin Templeton for its own purposes and may be acted upon in that connection and, as such, is provided to you incidentally. Although information has been obtained from sources that Franklin Templeton believes to be reliable, no guarantee can be given as to its accuracy and such information may be incomplete or condensed and may be subject to change at any time without notice. Any views expressed are the views of the fund manager as of the date of this document and do not constitute investment advice. The underlying assumptions and these views are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole. 

There is no assurance that any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets will be realized. Franklin Templeton accepts no liability whatsoever for any direct or indirect consequential loss arising from the use of any information, opinion or estimate herein.

The value of investments and the income from them can go down as well as up and you may not get back the full amount that you invested. Past performance is not necessarily indicative nor a guarantee of future performance.

Copyright© 2025 Franklin Templeton. All rights reserved. Issued by Templeton Asset Management Ltd. Registration Number (UEN) 199205211E.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.