But in terms of large-scale transactions involving hundreds of millions, in certain cases, billions of dollars, we feel like we’re done in that regard for the foreseeable future. Never say never but we certainly feel that we’re done in terms of strategic planning. And therefore, I think you can expect us to move into more of a capital return mode opportunistically. So what that means is we’re going to absolutely protect our dividends, as we’ve always described and you can expect the same sort of pattern that you’ve seen since — in the 1980s. We’re going to be very disciplined in buying back our — and hedging our employee grants. But as you know, we’re left over with a fair amount of cash after that, both in terms of earnings — from earnings but also in terms of our balance sheet and look, with our shares trading where they are, it’s a very good opportunity for us.
And as you know, we’ve funded 90% of Putnam transaction with shares and we’d like to repurchase those shares as soon as we can. So we’re going to be quite focused on that. We don’t want to give a schedule because the market is too uncertain in our opinion and we need to make sure that we are conservative and careful and methodical and all the rest of it that you expect from us. But the pattern of share repurchase that you saw in this last quarter, again, I’m not saying it’s going to be the same number but you can expect us to really focus on opportunistic share repurchases in addition to the share employee grants for the reasons that I’ve just outlined.
Operator: Your next question comes from Glenn Schorr from Evercore.
Glenn Schorr: I’m not sure if it’s for Adam, for anybody. But so the new DOL rule proposal just came out. And I think this is a long time coming. The focus is updating the definition of what is the fiduciary and investment advice. And given your distribution efforts and prowess in the channel, just curious how you think it may or may not impact Franklin in the various products, various channels.
Jennifer Johnson: You know, this — Glenn, this has been discussed for quite a while and back and forth. And we’ve all and through the ICI, have had opinions on it. And our view is, it’s about education, it’s about suitability of products and making sure that advisers are deploying the appropriate product for that client. And we’ve always had the view that it’s our job to make sure that we well inform our distribution partners and provide transparency around that. And so I think our view is that this is not going to have a tremendous impact.
Glenn Schorr: Good news. Maybe one follow-up. I appreciate that we’re not quite at the finish line yet on Putnam. But as you get to know each other, from my look, I think performance looks good and improving in their products. But as you’ve gotten closer together, I’m curious what things you’re learning, what can you work on for their distribution reach and insurance and retirement?
Jennifer Johnson: Well, I think I’ll start and then, Adam, you could jump in. I mean, to be honest, like, one of the things that — we are really excited about this Putnam deal is that, if you’re a traditional asset manager, who has a big book of mutual funds, the area from a — where mutual funds tax disadvantage isn’t an issue is in the retirement channel. And so — and that’s a way in which we have always underpunched our weight. And so as we got into this, we couldn’t be more excited about combining what we’ve been putting an emphasis internally, on retirement, with their distribution capability, we worry a lot because as you can imagine, Empower was built out of Putnam. And so really understanding that retirement channel, bringing these teams together and we think that’s just going to make us a much, much better distribution partner, not just with Empower but with firms like — platforms like Principal, Nationwide, Fidelity and being able to have an entry with our stable value in the target date funds.
So we look at this and couldn’t be more excited about what we think is a great growth opportunity for us in a channel that just even when markets are volatile, people still continue to contribute to their 401(k) through their paycheck. Adam, do you want to add anything to that?
Adam Spector: Yes. I would say that in some ways, it reminds me of the Legg Mason transaction when the 2 distribution forces were just so complementary. And if you look at the way that Franklin is built out in the non-U.S. market, as an example, I think that scale there really helps Putnam. If you look at what Franklin Templeton has in terms of SMA capability, ETF capability, that, along with the core Putnam strategy is a real advantage. And finally, I would note that subject to all of the financial comments that Matthew made within those structures, we will be able to add significantly to the sales force. So we’ll have a bigger sales force, a more effective sales force by bringing the 2 firms together. That bigger sales force will obviously have more product — great Putnam product. And so we’re feeling that the transaction is really going to help propel us.
Jennifer Johnson: And I’ll just add on the insurance side, I actually think we gained insurance expertise at the acquisition of Western who has tremendous penetration in the insurance channel. But what’s exciting is, now with the alternatives capabilities that we’re adding, we can take that expertise and just be a much more relevant partner. And so, as Great-West looked at our capabilities and basically committed $25 billion, it was because it was a detailed bottoms-up analysis of our various SIMs to determine what made sense for them. And that — we wouldn’t have been able to respond to that as well. Had we not had the expertise at Western and we’re building it within Franklin and then, of course, the Venerable announcement that we — the press release we had, I think, last week or the week before, again, comes out of that combined Franklin and Western insurance ideas. So we think there’s more to come there as well.
