Understanding Tomorrow, Today
From curating alternative investments solutions to partnering with fintech platforms—franklin Templeton takes a dynamic approach to ever‑evolving markets
“My alarm usually goes off before 5 am,” says Tariq Ahmad, Franklin Templeton’s co‑head of Asia‑pacific, on how he starts his day. “From a young age, the early mornings have been a natural fit for me. Now, I use the time to think, absorb market news from the US and Europe, fit in a session at the gym and prepare for the day as we focus on the strategic priorities for our clients across Apac. We’re busy but energised, and the morning provides that excitement of the day to come.”
To say it has been a busy 24 months for Ahmad and the firm is an understatement. Ahmad’s recent appointment as co‑head of Apac aside, Franklin Templeton will be celebrating the two‑year anniversary of its acquisition of Legg Mason—one that was predominantly done virtually and during the height of the Covid‑19 pandemic. The firm also concluded several acquisitions recently and has had to deal with the market turmoil of late. Ahmad shares, though, that the sense of focus and determination to offer evolving solutions to client partners have always remained the ethos of Franklin Templeton. “We’re a pure play asset management firm with more than 75 years as an independent investment manager and over 30 years in Asia,” he says. “Our priority is always on generating investment returns for our clients while managing risk. We’re not part of a larger banking or insurance group, so we have the luxury of dedicating ourselves to optimising solutions for our clients in this ever‑changing investment landscape.”
An insight into Franklin Templeton’s broad spectrum of expertise validates this. Its offerings extend from traditional vehicles, such as equities and fixed income, to more specialised but growing areas in the form of alternative investments such as private debt and real estate. “Having the right solutions and vehicles for the range of clients we partner is imperative. Whether it’s through our retail distribution channels or institutional investors and family offices, [we work] with our clients to ensure we can offer the products, market insights and true thought leadership they expect from a leading asset manager. It’s about collaboration with clients and strategic partners, but also being proactive on where investment needs are moving,” says Ahmad.
That proactive approach can also be seen in how Franklin Templeton has expanded its capabilities to complement its investment offerings over the past two years—from the recent acquisition of Lexington Partners (a global leader in the secondary private equity and co‑investments space) to the addition of the investment grade credit team from Aviva Investors. “I think we all agree that markets are evolving and changing at a greater pace than we’ve seen before, and the acquisitions we’ve made have enabled us to be at the forefront of what clients need and will need moving forward,” Ahmad states, noting that “amongst this ongoing change, we also recognise that particular regions have similarities when it comes to their investment objectives”. He observes that in Asia, for example, the demand for income‑orientated solutions is a recurring theme that’s here to stay for years to come and one that Franklin Templeton is well positioned to deliver. “We’re of the strong belief that clients in Asia will continue to need income as part of their portfolios,” he says, “and while this was traditionally achieved through fixed‑income products, the current market cycle requires us to think differently about income—for instance, through infrastructure, securitised assets
“We revel in those discussions with all clients, [where we talk about] how we can provide an investment solution that [not just] works for them today, but also anticipates the needs of tomorrow and the next generation”
or well‑blended portfolios. It’s through our platform and specialist investment managers covering the investment universe that we can innovate and provide the desired outcomes across the market cycle.”
THE ASIA PERSPECTIVE AND GLOBAL TRENDS
“I’ve lived and worked in Asia for more than a decade,” shares Ahmad, who moved with his family from London to Singapore. “[We] love being in Singapore. The diversity, the energy and, of course, the food. Being a keen cyclist, my weekends often start with an early morning cycle of about 40 km, and then exploring the relaxing cafés and excellent restaurants with family and friends. The humidity has its moments, but it’s certainly better than the weather in the UK. Asia has welcomed us with open arms and we look forward to spending more time in this region.”
Headquartered in San Mateo, California, Franklin Templeton is one of the first movers in Asia and has maintained a presence in the region for more than
30 years. The rise and importance of Asia will continue to be of strategic importance to the firm. As Ahmad says: “Asia has proved to be a critical growth engine of the global economy, but the demographics coupled with rising incomes highlight the growth story that is yet to be played out. Our firm has laid roots in Asia, and we have lived and breathed the region for decades.” He adds that as the region continues to grow, it will be important to enter new markets over the next few years.
In the meantime, Asia’s growing wealth and the rise in the establishment of family offices in the region have seen Franklin Templeton deepen its engagement with such entities, providing bespoke products and solutions that align with the goals and investment mandate of each family office. “As Asian families continue to plan ahead, [there’s an accompanying] need for customised and forward‑thinking solutions. We revel in those discussions with all clients, [where we talk about] how we can provide an investment solution that [not just] works for them today, but also anticipates the needs of tomorrow and the next generation,” Ahmad expounds.
Beyond Asia, there are other global trends that the firm is focused on. The first is sustainability. Ahmad believes in a more sophisticated interpretation of this theme. “Sustainability is not a trend for us but part of our corporate DNA,” he says. “It’s very easy to build a fund that [checks] all the boxes for sustainability, but it’s about how we, as a business and an industry, engage with companies, governments and clients to drive change; how do we look to the future and work with partners to be a voice and catalyst to make an impact and elevate the necessity of sustainable investing. What’s important for us is more than just a current snapshot or trend, but to look at sustainability over the long term and make it a natural part of who we are and what we represent.”
Technology is another theme the firm is acutely aware is here to stay. “Technology, digitalisation … there are different terms we can use to define the disruption in our industry, but these are not themes for the future; they’re already here,” says Ahmad. With the rise of robo‑advisors and digital wealth platforms in Asia and beyond, it is hard not to see how technology is shifting the paradigm. “Technology and digital platforms are disrupting the whole investment journey and client experience,” he continues. “While we recognise that traditional advisory structures and channels will still be relevant, there’s now an entire movement that involves accessing information and advice through novel ways such as smartphone apps. We can serve this next generation of investors by investing in and partnering with fintech firms and technology companies, which is something we’ve done in Asia and across the global markets. We’re in a fortunate position to have had a Franklin Templeton fintech incubator in the US for more than three years, and we’ve also recently launched our Asia fintech incubator, here in Singapore, which we’re very excited about.”
FORWARD MOMENTUM
“Looking back on the past two years, we’ve had an incredible journey. We’re deeply focused and ready for tomorrow and beyond. Our clients expect it and we’re poised to deliver. Our platform, product offerings, ability and enthusiasm to partner with clients across Asia are, I believe, unparalleled. We’re not thinking about disruption and innovation, we’re executing it,” concludes Ahmad.
With the changes both within Franklin Templeton and the market at large, there’s much to look forward to from the firm as it continues to deliver on its value propositions. No wonder Ahmad sets his alarm early.