Jenny Johnson has played a pivotal role in shaping Franklin Templeton's trajectory over her 35-year career, driving its evolution into one of the world's largest investment managers with over $1.5 trillion in assets under management (AUM). As President and CEO, she oversees the strategic direction, execution, and client-centric culture of the company, which has seen significant diversification in investment capabilities and solutions in recent years.
Joining the company in 1988, Johnson's leadership journey included key roles in investment management, distribution, technology, operations, and wealth management. Her elevation to CEO in February 2020 marked a significant milestone. As the granddaughter of Franklin Templeton founder Rupert H. (Harris) Johnson Sr., she brought a unique blend of familial legacy and professional acumen to the role.
Under Johnson's leadership, Franklin Templeton pursued strategic acquisitions and investments to enhance its product offerings and deepen connections with distribution channels. Notable among these acquisitions is Putnam Investments, which strengthens Franklin Templeton's retirement product portfolio. She emphasizes a focus on filling product gaps and creating meaningful partnerships to foster above-average growth.
The company's acquisitions align with Johnson's strategic vision, reflecting her understanding of industry trends. Franklin Templeton has identified three significant secular trends: the shift from active to passive investing, the rise of exchange-traded funds (ETFs), and the growth of privately held assets. She acknowledges the decline in public companies and the extended time companies take to go public, highlighting the changing landscape.
In her pursuit of innovation, Johnson sees potential in private equity and private credit, recognizing the changing dynamics of lending by traditional banks. She aims to democratize access to these investment avenues, allowing ordinary investors to benefit from returns traditionally reserved for qualified investors. Blockchain technology, according to Johnson, holds the key to creating liquidity in private equity, offering efficiency, security, and transparency.
Franklin Templeton's foray into blockchain is evident through its SEC-approved on-chain money market fund, the Franklin On-Chain U.S. Government Money Market Fund (FOBXX). Leveraging the Stellar and Ethereum blockchains, this initiative represents a milestone as the first U.S.-registered mutual fund to utilize a public blockchain for transactions and share ownership.
Despite being a global giant, Franklin Templeton maintains a familial essence rooted in Johnson's lineage. As one of seven siblings, Johnson's personal connection to the company adds a unique dynamic to her leadership. Her advice for those leading family businesses emphasizes treating the entity as an independent and healthy entity, transcending personal politics for the benefit of all stakeholders.
Beyond her role at Franklin Templeton, Johnson serves on various boards, including the International Advisory Panel of the Monetary Authority of Singapore, the NYSE Board Advisory Council, the Memorial Sloan Kettering Cancer Foundation, Thermo Fisher Scientific, and Catalyst. Her recent appointment to the U.S.-Brazil CEO Forum in 2023 underscores her influence and impact on a global scale.
In navigating the dynamic landscape of the investment management industry, Johnson's leadership at Franklin Templeton continues to leave an indelible mark, driving growth, innovation, and strategic resilience.