Franklin Templeton to Acquire O’Shaughnessy Asset Management, a Leading Custom Indexing Provider through its Canvas Platform

Franklin Resources, Inc. [NYSE:BEN], a global investment management organization operating as Franklin Templeton, today announced that it will acquire O’Shaughnessy Asset Management, LLC (“OSAM”), 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.