American investment manager Franklin Templeton has signed a deal to buy quantitative asset management firm O’Shaughnessy Asset Management (OSAM).
The transaction, whose financial terms are undisclosed, is expected to close in the fourth quarter of 2021.
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With the acquisition, Franklin Templeton intends to bolster its offerings in the high growth separately managed account (SMA) industry, where it currently oversees $130bn in assets.
The addition of OSAM’s flagship Canvas platform will enhance the company’s existing strengths in SMA and custom solutions capabilities.
Launched in 2019, the platform allows financial advisors to build and manage Custom Indexes in SMAs that can be personalised.
It constituted $1.8bn of OSAM’s total $6.4bn in assets under management as of 31 August 2021.
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By GlobalDataFranklin Templeton product solutions head Roger Paradiso said: “We firmly believe winning solutions will need to combine a quantitative skillset, active investment management expertise, and a great digital user experience.
“This partnership will further enhance Franklin Templeton’s ability to deliver compelling individualised SMA solutions to clients, advisors and firms while continuously innovating to advance and shape the managed accounts industry.”
As part of the transaction, OSAM’s team of more than 40 employees will join Franklin Templeton Product Solutions group.
Its intellectual property, investment management processes, and principal business assets will also be transferred to the firm.
OSAM CEO Patrick O’Shaughnessy commented: “We firmly believe winning solutions will need to combine a quantitative skillset, active investment management expertise, and a great digital user experience.
“This partnership will further enhance Franklin Templeton’s ability to deliver compelling individualised SMA solutions to clients, advisors and firms while continuously innovating to advance and shape the managed accounts industry.”
In February, Thailand-based digital wealth management platform Finnomena teamed up with Franklin Templeton to enhance investment potential for Thai investors.
