What You Need to Know
- The deal, whose terms were not disclosed, is expected to close in the fourth quarter.
- O’Shaughnessy has $6.4 billion in AUM, including $1.8 billion in its direct indexing Canvas Platform.
- Franklin Templeton has $1.5 trillion in AUM but lost $14.2 billion over the trailing 12 months through July 31, 2021.
Franklin Templeton is acquiring O’Shaughnessy Asset Management, a leading provider of separately managed accounts, with $6.4 billion in assets under management, including $1.8 billion in its popular direct indexing Canvas platform.
Terms were not disclosed, and it is expected to close in the fourth quarter.
“Custom indexing is aligned with our commitment to bringing sophisticated customization to a broader investment audience,” said Jenny Johnson, president and CEO of Franklin Templeton and one of the few women at the helm of a major asset manager, in a statement.
Franklin Templeton currently has $130 billion in SMA assets under management, a small fraction of its $1.5 trillion in assets.
The acquisition will not only boost the level of Franklin Templeton’s SMA assets but also help offset some of the outflows it has been experiencing. The asset manager lost $14.2 billion in outflows over the trailing 12 months through July 31, 2021 — “one of the highest sums among fund families,” according to Morningstar.
O’Shaughnessy, too, will benefit from the acquisition. “As part of Franklin Templeton, we’ll have the opportunity to accelerate client growth at Canvas and continue to add to existing OSAM offerings,” said Patrick O’Shaughnessy, CEO of the eponymous firm, in a statement.