5th March 2024

This week, for our particular 500th episode of Masters in Enterprise, I communicate with Jenny Johnson, president and chief government officer of the Franklin Templeton. Johnson joined the agency in 1988 and held management roles in all its main divisions earlier than changing into CEO in February 2020. She additionally led the historic acquisition of Legg Mason in 2020, and Putnam in 2023, with the group now managing greater than $1.5 trillion globally. Amongst many different accolades, she has been named to Barron’s checklist of the 100 most influential girls in US finance for 3 consecutive years, most just lately in 2022.

She started at Drexel Burnam, getting her ft moist studying operations as a really junior worker. When she returned to Franklin Templeton, she rotated by means of varied divisions, together with funding administration, distribution, know-how, operations, and high-net-worth.

There’s a historical past of acquisitions at FT, going again to the October 1992 acquisition of Templeton, Galbraith & Hansberger for $913 million. (This led to the agency’s present identify from its prior “Franklin”). Bringing on mutual fund pioneers Sir John Templeton + John Galbraith led to a crucial mass on the agency.

Johnson has since led a number of acquisitions, together with the 2020 all-cash deal for Legg Mason valued at $4.5 billion; Final 12 months, FT bought O’Shaugnessy Asset administration, together with its breakout direct indexing product Canvas, for an undisclosed quantity; this 12 months, FT bought Putnam for $925 million. Every of the acquisitions stuffed in a gap in Franklyn’s suite of merchandise. The agency continues to broaden, trying overseas for extra progress, together with India and the Center East.

We additionally mentioned lively administration versus indexing:

“If you’re an lively supervisor, your job is to have a diversified portfolio and take into consideration risk-adjusted returns. When you’ve a momentum market [like now] and you’ve got 5 corporations that take their 25% of the index, knowledgeable supervisor will get nervous by that kind of focus, say the S&P 500. There’s not sufficient dialogue about how the market danger of the index modifications relying on [a few stocks]. The day Tesla was added to the S&P 500, it turned a a lot riskier funding primarily based on volatility and focus. In these forms of markets, it’s onerous for an lively supervisor.”

A listing of her favourite books is right here; A transcript of our dialog is obtainable right here Tuesday.

You possibly can stream and obtain our full dialog, together with any podcast extras, on Apple Podcasts, Spotify, Stitcher, Google, YouTube, and Bloomberg. All of our earlier podcasts in your favourite pod hosts may be discovered right here.

Make sure to try our Masters in Enterprise subsequent week with Tom Wagner, Co-Portfolio Supervisor at Knighthead Capital. The $10 billion event-driven is a deep value-focused investor specializing in corporations that want monetary and operational restructuring. He’s a co-investor with soccer legend Tom Brady in a number of sports activities property, together with a Pickleball workforce, Birmingham Metropolis FC within the English Soccer League, and an endurance auto racing workforce. Wagner started his profession doing hedge fund accounting at Ernst & Younger.

Jenny Johnson Present Studying

Kissinger: A Biography by Walter Isaacson

Steve Jobs by Walter Isaacson

Ken Follett Century Trilogy Struggle Tales Assortment three Books Set (Fall of Giants, Winter of the World , Fringe of Eternity) by Ken Follett

The Pillars of the Earth by Ken Follett

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