Franklin Templeton CEO Jenny Johnson unveiled the company's strategy to strengthen its ties with Saudi Arabia through three key pillars: leveraging regulatory reforms in Saudi financial markets, utilizing the company’s global reach, and developing local talent.
Johnson explained that the first pillar focuses on capitalizing on the improvements and regulatory reforms within Saudi Arabia’s capital markets. This will involve offering innovative investment products that provide clients with broader options to enhance and diversify their investments.
The second pillar centers on leveraging the company’s global network to raise awareness of promising investment opportunities in the Saudi market and attract more foreign investments.
Franklin Templeton, which manages $1.6 trillion in assets, was among the first global fund managers to launch an exchange-traded fund (ETF) targeting the Saudi market in 2018 for US investors, following the Kingdom's inclusion in global indices.
Speaking to Asharq Al-Awsat on the sidelines of the Investment Initiative conference in Miami, Johnson revealed that in 2024, the company launched the Franklin Saudi Bonds Fund, registered in Luxembourg, as well as the Franklin FTSE Saudi Arabia ETF (UCTIS).
These new funds present international investors with fresh opportunities to tap into the rapid growth of the Saudi market.
The third pillar focuses on nurturing young Saudi talent through knowledge transfer and providing training and development programs for the company's partners and clients. In this context, Johnson highlighted that Franklin Templeton has partnered with Princess Nourah University, the largest women’s university in the world, to train 150 students in finance, empowering them to make meaningful contributions to Saudi Arabia's financial sector.
Sustainable growth
Johnson emphasized that investment leaders must focus on two priorities to achieve sustainable growth amid uncertainty. The first is to become true local players by investing in the economies where they operate, while the second is to leverage innovation to enhance customer service.
She noted that technological advancements, particularly digital innovations, help reduce costs, increase efficiency, and deliver innovative services that drive long-term growth and profitability.
Johnson addressed the International Monetary Fund’s warning about the impact of trade restrictions, emphasizing that Franklin Templeton’s approach focuses on building strong local operations, employing local talent, and tailoring offerings to support economic growth.
She highlighted the company’s strategy of investing in more resilient countries, particularly those with strong domestic markets and advanced energy supplies.
Johnson also affirmed that the Middle East, especially Saudi Arabia, possesses the fundamentals to achieve robust economic performance and create investment opportunities despite global challenges.
International cooperation
Johnson discussed the role of financial institutions amid global challenges, noting that as business leaders, they recognize that globalization has created pressures for citizens in some countries. She also acknowledged that the current trend toward fragmentation stems from governments’ efforts to address the legitimate needs and concerns of their populations.
Financial leaders have the ability to highlight the value of international cooperation, Johnson said.
For example, by deploying capital worldwide, they can foster stronger economic growth while creating attractive investment opportunities.
Financial leaders can demonstrate that this is not a zero-sum game and help steer the global economy toward a better balance, maintaining the benefits of international economic integration.
Johnson also addressed the role of leaders in balancing regulatory challenges and investment, stressing the importance of open dialogue with regulators to ensure services align with local customer needs.
She emphasized the need for internal collaboration and cross-border communication to drive innovation and develop solutions that comply with local regulations. She highlighted Franklin Templeton's experience, noting that the company became one of the first global asset managers to launch local retail funds in the UAE in July 2024, providing local investors with broader options in assets, sectors, and geographies.
Digital technology
Johnson confirmed that new technologies, especially digital ones, are helping asset managers address market fragmentation and regulatory changes. She explained that artificial intelligence enhances investment strategies, improves data analysis, and aids in risk management.
Additionally, blockchain technology offers greater flexibility in designing financial products suited to various markets while enhancing customer service and efficiency, thus offsetting the costs incurred from geographic fragmentation.
Since becoming CEO in 2020, Johnson has focused on strengthening Franklin Templeton’s position as a trusted partner to clients worldwide.
She noted that the company executed 10 acquisitions over four years, which helped diversify its business, expand its investment capabilities, and boost its presence in key markets and channels.
Today, Franklin Templeton is one of the most globally inclusive asset managers, with $1.6 trillion in assets under management across both public and private markets.
Empowering women
Johnson also praised the significant progress Saudi Arabia has made in empowering women, noting that female participation in the workforce has exceeded the 2030 target, reaching 35%.
She emphasized that the increasing presence of women in leadership positions in global financial institutions is inspiring young professionals to pursue their ambitions.
She offered three key pieces of advice for Saudi women in the financial sector: invest in learning and skills, both technical and interpersonal, to succeed in a competitive job market; seek reliable mentors, as having a guide and support is one of the strongest tools for career success; and build a strong network of relationships, both within and outside the industry, as professional connections play a crucial role in career advancement.
Johnson acknowledged that this can be challenging for women, especially with family commitments, but emphasized that taking every opportunity to build new relationships, whether at conferences, events, or through direct networking, is essential for achieving professional excellence.
