Asset

Franklin Templeton to acquire O’Shaughnessy Asset Management, a leading provider of personalized indexing through its Canvas® platform


Acquisition strengthens Franklin Templeton’s position as a premier provider of separately managed accounts and enhances its tax management, factor personalization and ESG capabilities

SAN MATEO, California, September 30, 2021– (COMMERCIAL THREAD) – Franklin Resources, Inc. [NYSE:BEN], a global investment management organization operating as Franklin Templeton, today announced the acquisition of O’Shaughnessy Asset Management, LLC (“OSAM”), a leading quantitative asset management firm. With this acquisition, Franklin Templeton adds to its offerings in the high-growth Separately Managed Accounts (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 investment manager and as a custom indexing solution through OSAM’s flagship product Canvas® platform, will serve as a significant expansion and enhancement of Franklin Templeton’s existing strengths in ADM and custom solutions capabilities. The Canvas platform was launched in late 2019 and has seen strong growth since its inception, now accounting for $ 1.8 billion of OSAM’s $ 6.4 billion in assets under management as of August 31, 2021.

“Advances in technology are redefining the way financial solutions are delivered, and we continue to invest in innovative technologies to improve client outcomes and experience,” said Jenny Johnson, President and CEO of Franklin Templeton. “Custom Indexing is in line with our commitment to deliver sophisticated customization to a wider investor audience, and I am delighted to welcome the OSAM team to Franklin Templeton. “

The transaction will bring compelling benefits to the customers that both companies serve across multiple channels. Custom indexing is an important area of ​​growth in asset management today, and Canvas enables financial advisors to create and manage custom indexes in ADMs that are individually tailored to the client’s specific needs, preferences and goals. . Advisors can create investment models, access factor investing strategies, use passive strategies, and apply ESG and SRI investment filters to specifically adhere to the client’s personal beliefs. Canvas also gives advisors the ability to plan effectively, establish tax budgets, identify realized and unrealized gains and losses, and systematically sell certain positions to create offsets. OSAM is also considered a pioneer in factor investing with a long track record of implementing its investment strategies through SMA solutions and mutual funds.

“Custom indexing is the next step in investing through indexing, ETFs and direct indexing,” said Patrick O’Shaughnessy, CFA, president and CEO of OSAM. “As a member of Franklin Templeton, we will have the opportunity to accelerate customer growth at Canvas and continue to complement existing OSAM offerings. We are excited about the incredible potential this acquisition creates and can’t wait to get started. “

Through this transaction, the 40+ OSAM team members are expected to join Franklin Templeton with all intellectual property, investment management, and core asset management processes needed for the company’s evolution and growth. within the Franklin Templeton Product Solutions group.

“We believe that winning solutions will need to combine a quantitative skill set, active investment management expertise and a great digital user experience,” said Roger Paradiso, product solutions manager at Franklin Templeton. “This partnership will further strengthen Franklin Templeton’s ability to deliver individualized and compelling SMA solutions to clients, advisors and businesses while continuously innovating to advance and shape the managed account industry.”

The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of calendar year 2021.

About Franklin Templeton

Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating under the Franklin Templeton name and serving clients in over 165 countries. Franklin Templeton’s mission is to help clients achieve better results through their investment management expertise, wealth management and technology solutions. Through its specialized investment managers, the Company provides extensive capabilities in equities, fixed income securities, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has more than 70 years of investment experience and more than $ 1.5 trillion in assets under management as of August 31, 2021. For more information, please visit franklinresources.com.

About OSAM

O’Shaughnessy Asset Management (OSAM) is a quantitative asset management firm based in Stamford, Connecticut. The company offers a wide range of equity portfolios to institutional investors, individual investors and high net worth clients of financial advisers. OSAM also serves as an investment advisor for a US mutual fund and as a sub-advisor for a family of mutual funds in Canada. The firm’s team has been managing client assets since 1996. For more information, visit www.osam.com.

Forward-looking statements

Statements in this press release that are not historical facts are “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, any words or phrases usually written in the future and / or preceded by words such as “will”, “may”, “could”, “expect”, “believe”, “anticipate”, “intend”, “plan” , “Research”, “estimate”, “preliminary” or the like are forward-looking statements.

Various forward-looking statements contained in this press release relate to the acquisition by Franklin Resources, Inc. (“Franklin”) of O’Shaughnessy Asset Management, LLC, including regarding expected scale opportunities, growth, customer benefits , key assumptions, timing of transaction closing, revenue realization and financial benefits or returns.

Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, which could cause actual results to differ materially from any expressed or future results or results expressed or implied by these forward-looking statements. statements.

For a detailed discussion of other risk factors, including important factors that may affect Franklin’s future operating results, please refer to the risks, uncertainties and factors described in recent documents filed by Franklin with the Securities and Exchange. Commission (“SEC”), including, without limitation, Franklin’s most recent annual report on Form 10-K and subsequent periodic and current reports.

Any forward-looking statement made in this press release speaks only as of the date on which it is made. Factors or events that could cause actual results to vary may occur from time to time, and we cannot predict all of them. Franklin assumes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.

CFA® and chartered financial analyst® are registered trademarks of CFA Institute.

Copyright © 2021. Franklin Templeton. All rights reserved.

See the source version on businesswire.com: https://www.businesswire.com/news/home/2021093005306/en/

Contacts

Franklin Resources, Inc.
Investor Relations: Selene Oh, (650) 312-4091, [email protected]
Business communication :
Lisa Gallegos, (650) 312-3395, [email protected]
Matt Walsh, (650) 312-2245, [email protected]
franklinresources.com

O’Shaughnessy Asset Management
Business communication :
Jonathan Mairs, (917) 517-7097, [email protected]