Establishes Franklin Templeton as One of the World’s Largest Independent,
Specialized Global Investment Managers
Combined Company to Offer Complementary Investment Strategies to
More Clients in More Places
Thailand August 5, 2020 – Franklin Resources, Inc. (the “Company”) [NYSE:BEN], a global investment management organization with subsidiaries operating as Franklin Templeton, announced that it has completed its previously announced acquisition of Legg Mason, Inc. [NYSE:LM] and its specialist investment managers.
The newly-combined organization establishes Franklin Templeton as one of the world’s largest independent, specialized global investment managers with a combined $1.4 trillion in assets under management (AUM) across one of the broadest ranges of high-quality investment teams in the industry. The combined footprint significantly deepens Franklin Templeton’s presence in key geographies and creates an expansive investment platform that is well balanced between institutional and retail client AUM.
“We’re extremely excited to announce the close of our Legg Mason acquisition, representing the largest and most significant transaction in Franklin Templeton’s history,” said Jenny Johnson, President and CEO of Franklin Templeton. “A tremendous amount has happened since we made our announcement in mid-February, but the strategic rationale for this powerful combination has only strengthened. This acquisition unlocks substantial value and growth opportunities driven by greater scale, diversity and balance across investment strategies, distribution channels and geographies. Our combined firm is aligned in terms of culture and our shared focus on delivering strong investment results for our valued clients.”
The transaction also brings notable added leadership and strength in core fixed income, equities and alternatives, as well as expanding the firm’s multi-asset solutions capabilities. Importantly, no changes are planned for the specialist investment managers’ differentiated investment strategies, which will benefit from Franklin Templeton’s global infrastructure and ongoing investment in technology and innovation.
“A significant amount of work has gone into preparing us for this exciting firm combination over the past five months, all during an unprecedented pandemic with nearly everyone involved working remotely. I want to thank employees from both companies for their tremendous contributions and exceptional focus on our clients and the business throughout the process,” Johnson added.
This acquisition establishes Franklin Templeton as one of the world’s largest independent asset managers, with an AUM of over USD164 billion in the Asia-Pacific region and USD1.4 trillion globally. The combined firm in the region, brings added leadership and strength in core fixed income, active equities and alternatives—as well as an expansion of multi-asset solutions capabilities.
Over the years, Thailand has established itself as an important growth market for Franklin Templeton in the region. In the newly announced APAC leadership team (see attached), Dora Seow will take up an expanded role as Country Head of Singapore and the broader South East Asia region (ex-Malaysia and Vietnam) for the combined organization.
What this means for investors in Thailand:
Dora Seow, Regional Head Southeast Asia (ex Malaysia) of Franklin Templeton said, “This acquisition gives Franklin Templeton an increased competitive advantage in the Thailand market, greatly expanding our product offering for clients. Global Fixed Income and Asian & Emerging Markets strategies are emerging as preferred asset classes for our Thai clients. Going forward, we will look to broaden our offering with the addition of Western Global Macro and Asian Bond strategies to form a core component of the Thai client portfolio to enhance returns and diversify from Thai Bonds and Thai Equities. We also see an exciting opportunity to grow the Real Estate and Separately Managed Accounts (SMA) business in the country.”
Seow added, “As we mark our 30th anniversary across Southeast Asia this year, we look forward to continue providing investors with insights, analysis and credible views to inform them of intelligent choices and opportunities that abound in the current economic climate.”
Seow, Dora
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton in over 165 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the Company brings extensive capabilities in equity, fixed income, alternatives and custom multi-asset solutions. With employees in over 30 countries, including 1,300 investment professionals, the California-based Company has more than 70 years of investment experience and approximately $1.4 trillion in assets under management as of June 30, 2020 (on a pro forma basis for its acquisition of Legg Mason, Inc.). For more information, please visit franklinresources.com.
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