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Franklin Templeton creates new $120bn multi-asset solutions platform

Franklin Templeton's multi-asset solutions group joins forces with QS Investors to form a new solutions business. No jobs will be lost as a result of the move.

Franklin Templeton creates new $120bn multi-asset solutions platform

Franklin Templeton is merging the capabilities of its multi-asset solutions group and QS Investors to form a new offering called Franklin Templeton Investment Solutions (FTIS).

The change will take effect on October 1, and the new unit will have a combined total of 120 investment professionals overseeing $120bn in multi-asset strategies.

QS is a quantitative equity asset management firm affiliated with Legg Mason, which Franklin Templeton acquired this year in a $4.5bn all-cash deal. 

It will continue to exist as an entity and QS employees will remain employed by QS. The new unit merges the capabilties of the two groups, not the groups themselves. 

Both Franklin Templeton multi-asset solutions (FTMAS) and QS offer asset allocation, as well as portfolio construction and management services for large clients.

QS takes a systematic approach to asset allocation and has large presence in the institutional market, while FTMAS offers fundamental asset allocation and is a bigger player in the retail market. 

‘It became clear in ongoing discussions between QS and FTMAS that we could unlock substantial value and deliver new growth opportunities if we combined our solutions business efforts,’ said Jenny Johnson, president and CEO of Franklin Templeton (pictured below).

 

A spokesperson for Franklin Templeton told Citywire that the merger had not resulted in any investment positions being eliminated nor had the firm announced any layoffs as a result of the move. 

‘The integration was not done for cost cutting reasons, but to build and scale our ability to serve client needs,’ they said. 

QS currently has 78 employees in offices in New York and Boston, while FTMAS has 65 employees globally. 

Franklin Templeton previously said it is planning to cut around 8% of its combined workforce after its acquisition of Legg Mason closed on July 31, but that these reductions would not affect investment managers. 

Ed Perks, formerly president and chief investment officer of FTMAS, will lead the new FTIS unit. 

Gene Podkaminer, head of research for FTMAS, will lead the combined research teams. 

This will include FTMAS’s existing eight-person manager research team, which is headed by Ryan Kinkade, and which picks in-house and third-party fund managers for model portfolios, among other things. 

Franklin Templeton has a total of $1.4tn in assets under management.

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