"As a world-class entity, we maintain a cozy, exclusive feel."

Franklin Templeton Strengthens Global Presence with Legg Mason Merger

In a strategic move to bolster its sustainability strategies and global competitiveness, Franklin Templeton has merged with Legg Mason. The combined asset management firm, now managing 1.3 trillion euros in assets, aims to leverage complementary strengths and expand its scale.

The merger allows Franklin Templeton to offer clients interesting alternatives in the bond segment, such as the Brandywine Global Income Optimiser. New group subsidiaries like Western Asset Management and Brandywine Global offer best-in-class solutions in the bond market.

Franklin Templeton has also expanded its product offering, particularly in segments not previously covered. The product portfolio now includes strategies in various sectors, such as bonds, infrastructure, value, growth, and US-focused small caps. This diversity provides a wider range of tech funds, allowing Franklin Templeton to offer alternative products.

The merger brings together resource strength and specialization. Two ESG-proven investment houses, ClearBridge Investments and Martin Currie, now form part of the merged group. ClearBridge Investments sets standards with its Sustainable Leaders strategy, while Martin Currie, a signatory of the Principles for Responsible Investment since 2008, continues to offer its expertise.

The new balance of institutional business and retail sales (50% each) enhances opportunities for cross-selling in both client segments. Client meetings are becoming more intense and longer due to the expanded product portfolio and increased unique selling points.

Studies suggest that asset managers must be specialized niche providers or offer a broad range of products to succeed. With the merger, Franklin Templeton achieves both, providing a strong foundation for future growth. The merged organization ranks among the top 10 global asset managers, ensuring a solid footing in the competitive market.

The merger with Legg Mason was strategic, as Franklin Templeton found a complementary product offering with Legg Mason's boutiques. This strategic move strengthens Franklin Templeton's sustainability strategies, as many acquired boutiques have a strong focus on ESG factors, particularly for institutional clients.

Franklin Templeton continues to offer a boutique character sought by investors. The Franklin Templeton Investment Institute, aggregating knowledge from over 70 locations worldwide, further cements this boutique feel while ensuring global expertise.

In conclusion, the merger between Franklin Templeton and Legg Mason has created a stronger combined asset management firm, offering clients a diverse range of investment strategies and strengthening its position in the global market.