YouSaid · the spoken record

Jenny Johnson

lines on the record: 69
first: 2023-07-07
most recent: 2023-07-07
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“That are pushing towards net neutral on carbon. So she wants her portfolio managed that way. You can put those tags in there, but still take a professionally managed strategy and express it through that technology. So we looked at that and said, this is going to be really significant in the future. We have to be in the direct index space, but more importantly, we have to have great technology because we think this is just the beginning of a trend.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“Fantastic. I mean, you probably could having being a user of it, you probably could even speak to this more than I can. But I can tell you we think, again, a big trend is this direct indexing. But the reason we love Canvas, and I know you know this, is Canvas grew out of a quant shop that built the technology to manage their quant portfolio. And so initially you just have direct indexing with tax optimization, but we look at it as a tool where we think you can take just like the trend towards SMAs, separately managed accounts, you can use the technology of Canvas, express our active management strategies in there. So take a mutual fund strategy, deliver it through the Canvas platform, overlay with tax optimization, and even include some ESG overlay. So if you have a client who says, you know, I really want my daughter will say, I really want things.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“And in a time of great technological advances, you need to invest for things. I mean, some of the stuff we're doing in the blockchain space won't be material to the firm for seven to ten years, but we think it's really important that we're doing it now.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“2019, it was, I think, nine to ten years, and by 2022, it was 14 to 15 years before they were going public, right? You have half the number of public companies that you had in 2000. And so you look at, well, Why go public, right? A public company has quarterly earnings pressure. You know, there's a lot of scrutiny around compensation of the staff. There's a lot of, there's an expectation on political. You know, you're going to opine on certain political issues. If you're a private company, you don't have any of those pressures.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“Private market stepped right in. That's exactly right. And then the other piece of that, and you know, this was definitely fueled by low interest rates, but private equity. The fact is companies can stay private longer. And you see that in the numbers, right? 2,000 average company went public after three years. That was probably an anomaly in the dot-com.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“It created this opportunity for basically private credit outside the banking system. And honestly, with the discussion around, which I have strong opinions on, discussion around more capital requirements post the regional banking crisis. I think that's only going to get worse. And then you look at that.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“One is private markets are here to stay and they're here to stay. One, take private credit, right? The banking crisis, the global financial crisis had regulators changed the capital requirements for banks. Banks preserve their capital for the best clients.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“So let me step back and just say sort of what our strategy is in acquisition. So we've done, I think, 10 in the last Putnam will be our 10th in the last three years. And they've all been focused on, if you think about the big macro trends going on in the industry.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“So, in the case of leg, they had Western asset management, which is, you know, core plus fixed income, which is the largest category. And we just didn't have scale there. And you have to have scale to be in the institutional space. And the other big one that was exciting for us was Clarion Partners, which now is an $82 billion. I think they were probably $45 at the time, $45 billion real estate manager. And we knew that we wanted to get into alternative space. And so getting that as part of the leg deal was really exciting. And then, you know, unbelievable managers in Clearbridge and Martin Curry and Brandy Wine. And so we just got great expertise there. They were 75% institutional. We were 75% retail. So bringing the two firms together, you really made us 50-50 retail and institutional. And that's been very important.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I mean, you know, in our case, I wouldn't say it's totally hands off. It's hands off on the investment process. And really trying to innocate the rest of it and then trying to figure out ways that you can add value because you have scale so that these firms don't have. That was less of an issue in the Templeton deal, but with our more recent acquisitions, that's been really important. What can we do because we're bigger that can enhance the various investment teams?”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“For most assets. Yeah, they were, they were, you know, they were pioneers in emerging markets and really kind of global equity. And when we acquired it, a lot of people were skeptical because asset management acquisitions don't always work. It seemed expensive. Big cultural difference. And it was expensive. And I have to say that my dad understood, and it's been our philosophy throughout all our acquisitions. In the asset management business, what are you buying? You're buying people Their investment capability and their investment process. So don't destroy value by going in and messing with it. So we really left it stand alone on the investment side and then integrated the rest of the firm. And that worked out really well.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“Was not nothing. Yeah, no, it was huge. And it was interesting because a lot of people, we sort of came into that late as far as one of the potential acquirers. So, you know, we basically viewed it as Franklin was very strong in fixed income, domestic equity. And what Templeton did was open up this international investing, which was really pretty new”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“Start taking a bath. Well, and I think a lot of people when like turbo tax came out, they said, oh, this is going to be the end of the CPA. Who are the number one users of TurboTax? CPA. Because in the end, people sit there and say, wait a second, actually, the more money people have, the more they have options to do other things. And they think the opportunity cost of spending their time trying to manage those things is not worth it.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“No, it's not terrible. It's actually great. And especially because you can do some basic kind of asset allocation models of the robo advisor can be terrific for somebody who doesn't have a complicated financial situation. What you tend to see is people earn more and have more and more savings. Somebody said to me anecdotally, if you have sort of three years worth of savings of your income, that's when you start to look for advice because you realize, you know what, this is more complicated. I'd rather have somebody who's full-time focused on this than me as a part-time person managing my money.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“So, if you invest for 10 years from age 25 to 35, say $5,000 a year, or you wait till 35 and invest for 30 years at $5,000 a year, you will have more money for those investments over those 10-year period because of the compounding. And so getting people to invest early is really, really important. And you don't want to have mechanisms, regulatory environments that kind of prohibit them getting advice early.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I think you were seeing a big shift to C shares where you had a bigger back end trail and a smaller upfront. So that was happening a bit. And, you know, look, I'm a big believer that some of those type commission products are still important. We look in the UK where they have something called RDR. So they don't permit any kind of commission-based selling. And so it's all gone to fee-based. And you have a huge percentage of population orphaned from advice. Because essentially an advisor says, ah, that's too small of an account. It's not worth my time. Whereas if they got that upfront commission, they'd spend the time doing it. And the key is the difference for people investing early.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“It was really just mutual funds. I mean, that was the vehicle of choice. And it evolved over time to things like SMAs and ETFs and collective investment trusts. Now you have to be able to provide all of those vehicles as outlets for your investment capabilities. And I think a lot of that change happened. It was starting to happen, but accelerated after the global financial crisis, where regulators pushed for more transparency in distribution fees. And so you saw this shift from kind of fees embedded in, say, the mutual fund vehicle to being external on the client statement. And so then advisors wanted things like ETFs and SMAs and other things because the client was seeing that they were paying their advisor every month. And so that's changed. I think that's been a dramatic change in the industry on the type of vehicle we use.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“15 or 16, and he was paying her $5 an hour and he was paying me $2.50 an hour. And I said to him, Look, I think I'm a harder worker and I think I should get $5 an hour. And he said, well, you can always get a job somewhere else.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I have to say when you say you're right, you don't in a business where founders are still involved and you're a family member, you're going to be treated a little differently, but my father always was adamant. You have to work harder than everybody else because people would look at how hard you work and work just a little less. Like they won't feel like they have to do more. And I remember my first job was a summer job and I took over from my older sister who was 21 at the time and I was, I don't know.”
2023-07-07 · Masters in Business · Jenny Johnson on Managing a Trillion-Dollar Firm · IDENTIFIED FROM THE TRANSCRIPT · source