The average reported compensation for executives at Franklin is $3.58 million, compared with $7.12 million at peer companies, according to Bloomberg data.
'Cash Cow'
"They tend to not make many mistakes," Casteleyn said of the Johnsons. "They say they pay back 60 to 80 percent of their net income either in the form of dividends or share buybacks. It's a cash cow."
Acquisitions helped fuel Franklin's growth. The firm bought California investment boutique Winfield & Co. in 1973 and moved to San Mateo. Franklin acquired Templeton, Galbraith & Hansberger Ltd., headed by Sir John Templeton, the fund pioneer known for international investing, in 1992, and still operates overseas under the Templeton name. The company purchased the adviser to Michael Price's Mutual Series Fund Inc. in 1996 to broaden its domestic stock lineup.
"Templeton has been a huge machine for Franklin in terms of gathering assets," Bobroff said. "Franklin has tended to leave the people, at least from a money-management standpoint, somewhat autonomous."
'Why Limit Yourself?'
A version of the Templeton Global Bond Fund based in Luxembourg attracted $5.89 billion this year through May, the most among long-term funds outside the U.S., according to New York-based researcher Strategic Insight. The Templeton Global Total Return Fund, also managed by Hasenstab, added the second- most deposits, $5.7 billion.
Franklin's global-bond assets grew to $185 billion as of June 30 from $50 billion in June 2009.
"The investor has gotten more comfortable with the risks around global equities and these markets with currency and trade strengths," Johnson said. "Still, the average investor in the U.S. is over 50 percent in domestic U.S. equities, and I would argue why limit yourself? The U.S. economy, as we all know, is becoming less and less a factor."
Disenchanted Investors