Marg Franklin, CFA
CAREER HIGHLIGHTS

• September 2019, assumed role of President and CEO of CFA Institute
• President, BNY Mellon Wealth Management Advisory Services
• COO, Marret Asset Management
• Partner, K.J. Harrison & Partners
• Past Chair, CFA Institute Board of Governors, and recipient of its Alfred C. Morley Distinguished Service Award

Your experience with both the CFA Institute and CFA Society Toronto runs deep. What motivated you to volunteer, and what does being a CFA charterholder mean to you?

Obtaining my CFA charter was a game-changer for me. Not only did it give me great foundational knowledge early on in my career, it also opened up a world of opportunities for me that simply otherwise wouldn’t have been available. The designation differentiated me from other financial professionals and put me in good company.

As for volunteering, I got my start at CFA Society Toronto after a suggestion from Harry Marmer, my boss while I was at Mercer Investment Consulting. I filled in for a maternity leave at the Society; it turned out to be a great opportunity for me. The organization was going through a remarkable amount of change. I thrive on change, and I feel fortunate to have been a part of the organization’s evolution during that time.

Since those early days, I’d say my CFA designation has allowed me to meet many incredible people across different parts of the industry and geographies—and at various ages and stages of their careers. In my view, these interactions have made me a better investment professional. As the old saying goes, “who you surround yourself with says a lot about you,” and I think CFA charterholders, by and large, are definitely a cut above.

Today’s financial industry is rapidly evolving, with new technologies and other disruptive forces. In your view, what important industry trends are shaping the future of the investment management profession?

What’s most interesting right now is the pace of technological innovation we’re seeing in our industry. While things like machine learning, algorithmic trading, and index investing have been around for more than 20 years, the development of technology has allowed these concepts to become more commonplace, democratizing investment strategy. Additionally, things like AI and the predictive capabilities of deep machine learning will materially change the way we think about portfolios. This confluence comes at a time when we’re looking at lower rates for longer and changing demographic trends that are material to many firms’ business models. These trends will challenge all investment professionals to assess the value they provide to investors and to think carefully about the role the industry plays broadly in society.

Another important trend is “purposeful capitalism” or the role of capitalism, in a much broader societal context. Conversations surrounding this topic are starting to accelerate in a meaningful way. It’s not just about ESG portfolios, although that’s a component. Purposeful capitalism is really about how we allocate capital in a world with multiple stresses and societal demands, and do it in a way that aligns with the interests of clients, creates trust, and demonstrates a clear and meaningful social purpose.

Lastly, the rise of the individual will have lasting effects on our business. When I started in my career, it was all institutional; that was the biggest portion of the capital pie. But changing client demographics provides a very different complexion to their relationship with investment professionals, and different types of skills will be required for that.

We’re living through an unprecedented period of change. But the rise of the individual, accelerating technological change, and society demanding more from our industry will dramatically impact our business going forward.

You’ve advised individuals, families, pension plans, endowments, foundations, and government agencies. Is there an investment lesson you feel has stood the test of time?

For me, the No. 1 tenet is understanding your client’s needs. When I started working with institutional investors, it was commonplace to use fairly technical language that reflected our business but that might not have resonated with clients. I’ve found that asking questions beyond the portfolio and beyond the risk and return parameters, and taking into account more behavioural elements, have made all the difference in getting well-constructed portfolios.

Inevitably, all portfolios will go through a rough patch. Investment programs that endure happen when clients recognize the language from those initial discussions and are reminded of their overall objectives. When emotions hit, clients trust the process and return to their sensible plans.

We also now have much better tools, strategies, and research to help us understand those behavioural idiosyncrasies. Our role as investment professionals is to have a deep understanding of our clients, both institutional and individual, and build coherent portfolios based on their specific needs.

You’ve held several leadership positions, including chair of CFA Institute’s Board of Governors and president of the CFA Society Toronto Board. How would you describe your leadership style?

In general, my approach is collaborative. I’m highly aware of my strengths and equally aware of my gaps, so I generally look to collaborate with individuals or build teams with complementary skills and bring people together in constructive ways. Because I’m good at taking concepts and making them commercial and practical, I’ve had success teaming up with individuals or teams that are good with the conceptual.

My style also includes trying to get the most out of those team members. For me, the important thing has been identifying the skills needed and then constructing a team environment that brings the best out of people. Throughout my career, I’ve found that this approach has helped me move into leadership positions because, ultimately, you become good at creating strong teams.

You were a founding member of CFA Institute’s Women in Investment Management Initiative and are the first woman to hold the role of CEO and president in the Institute’s 73-year history. What do you think of the state of diversity in our profession? Does more still need to be done?

The Women in Investment Management Initiative was started five years ago with the goal of improving investor outcomes by improving diversity within our industry. The early years focused on the research supporting the case for diversity. We looked at many industries—the medical industry, in particular—and at how outcomes were dramatically improved through diversity. Research also indicated that gender diversity was a universal diversity issue. We felt that if we cracked that code, our findings could be applied to many other areas of diversity.

Now, five years later, it’s a truly globally focused initiative. From my vantage point at CFA Institute, I’ve witnessed some of the amazing things local Societies are doing to improve their respective markets. In the case of India, part of that is just helping women gain access to employment in the investment management industry. To make this possible, the local Society has engaged with major employers to move the dial. In the case of Saudi Arabia and the Middle East, a lot of the work focuses on helping women imagine themselves in positions within this industry. We know we have to do a better job in attracting women to and retaining women in the business, but there are some amazing initiatives in place around the globe right now.

“We’re living through an unprecedented period of change. But the rise of the individual, accelerating technological change, and society demanding more from our industry will dramatically impact our business going forward.”

Does more still need to be done? Yes. However, it’s encouraging to note a decided change in tone coming from employers, which are now looking for tools and strategies to help them achieve a better balance.

The research shows that, when diversity is successfully applied, everybody benefits. Having been in leadership positions several years, I’ve noticed that when you change the tone of the conversation and the metrics measuring your success, and when people can collaborate more and work more effectively together, then everybody ultimately benefits.

As the investment industry undergoes accelerating change, investment professionals must adapt and embrace new challenges and opportunities for career success. What will investment professionals of the future look like, and what advice do you have for them?

My first piece of advice is to dig deep into CFA Institute publications. We recently produced a series of research around the future of finance, which includes a thought leadership piece on the investment professional of the future. It’s a treasure trove of information on the changing roles, skills, and organizational cultures affecting the career path of investment professionals. I think it’s a necessary read for anyone considering entering the business, or for an already established professional.

CFA Institute is committed to professional learning and supporting charterholders throughout their entire careers. One of the exciting things we’re working on is a major overhaul of a number of our learning strategies. One is our competency-based framework. If you think about how the CFA curriculum has been organized thus far, its framework has focused on traditional things like equities, fixed income, hedge funds, and private wealth. Now we’re looking at it in terms of the competencies required for various roles in a classic CFA world. To me, this is exciting. That drives not only the content we’ll be doing, but also the way we’ll organize our information.

The other thing we’re working on is the learning ecosystem and looking at how people learn best. We have some great research on this and a team dedicated to tackling the subject. I think the way we deliver our learning programs will dramatically change and, as a result, improve. We’ll equip the investment professional of the future in a materially different way than we have in the past.

The investment profession is evolving, the requirements of clients have become more challenging, and the rate of change in technology is accelerating. CFA Institute is committed to helping our members navigate the changing landscape and providing topical guidance, strategies, and research.

What’s the best piece of career advice you’ve received?

A couple come to mind, but one phrase sticks out: “Do well by doing good.” That quote came from Patty Dunn, the past CEO of Barclays Global Investors. I also think conscientiousness is highly underrated. So many people have told me to pay attention to details, work hard, be adaptable, and be agile. Those things continue to resonate with me as I’ve moved throughout my career. Lastly, the client always comes first. We’re in the business of trust. Everything is about the client.