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Opalesque Industry Update - Franklin Resources, Inc., a global investment management organization operating as Franklin Templeton, today announced that it will acquire O'Shaughnessy Asset Management, LLC , a leading quantitative asset management firm. Through this acquisition, Franklin Templeton adds to its offerings in the high growth separately managed account (SMA) industry, where it is already one of the largest providers with $130 billion in SMA assets under management as of August 31, 2021. OSAM's capabilities, both as a factor-based investment manager and as a Custom Indexing solution via OSAM's flagship Canvas® platform, will serve as an important expansion and enhancement of Franklin Templeton's existing strengths in SMA and custom solutions capabilities. The Canvas platform launched in late 2019 and has seen strong growth since its inception, now representing $1.8 billion of OSAM's total $6.4 billion in assets under management as of August 31, 2021. "Technological advances are reshaping how financial solutions are delivered, and we continue to invest in innovative technology to enhance client outcomes and their experience," said Jenny Johnson, President and CEO of Franklin Templeton. "Custom Indexing is aligned with our commitment to bringing sophisticated customization to a broader investment audience, and I'm excited to welcome the OSAM team to Franklin Templeton." The transaction will bring compelling benefits to the clients that both companies serve across multiple channels. Custom Indexing represents a significant area of growth in asset management today, and Canvas allows financial advisors to build and manage Custom Indexes in SMAs that are individually tailored to the client's specific needs, preferences, and objectives. Advisors can create investment templates, access factor investing strategies, utilize passive strategies, and apply ESG investing and SRI screens to adhere specifically to the client's personal beliefs. Canvas also provides the opportunity for advisors to efficiently plan, set tax budgets, identify realized and unrealized gains and losses, and systematically sell certain positions to create offsets. OSAM is also regarded as a pioneer in factor-based investing with a long history of delivering its investment strategies through SMA and mutual fund solutions. "Custom Indexing represents the next progression of investing through Indexing, ETFs, and Direct Indexing," said Patrick O'Shaughnessy, CFA, Chief Executive Officer of OSAM. "As part of Franklin Templeton, we'll have the opportunity to accelerate client growth at Canvas and continue to add to existing OSAM offerings. We're excited by the incredible potential this acquisition creates and look forward to getting started." Through this transaction, OSAM's more than 40 team members are expected to join Franklin Templeton along with all of the necessary intellectual property, investment management processes, and principal business assets necessary to evolve and grow the business within the Franklin Templeton Product Solutions group. "We firmly believe winning solutions will need to combine a quantitative skillset, active investment management expertise, and a great digital user experience," said Roger Paradiso, Head of Franklin Templeton Product Solutions. "This partnership will further enhance Franklin Templeton's ability to deliver compelling individualized SMA solutions to clients, advisors and firms while continuously innovating to advance and shape the managed accounts industry." The transaction is subject to customary closing conditions and expected to close in the fourth quarter of calendar year 2021. |
Industry Updates
Franklin Templeton acquires O'Shaughnessy Asset Management
Thursday, September 30, 2021
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