Jenny Johnson, CEO of Franklin Templeton, said that while times are volatile that active management ‘really pays off’. FT is one of the largest asset managers with over $1.5 trillion under management and they are one of the largest active management firms. The firm has looked to acquire firms in what they label as a ‘bolt-on’ strategy to fill in the gaps in their offerings. Their acquisitions include Legg Mason and custom indexing provider O’Shaughnessy Asset Management. They are looking mostly into technology and alternative products to tie up loose ends. Johnson cited macro headwinds like Ukraine and the Fed’s hike as large macro factors generating volatility along with Covid spikes in developing countries, but their strategies are well suited to handle volatility.

Finsum: Active fixed income has a bigger advantage in high volatility than its equity counterparts, but still it could prove to be a picker’s market.