Franklin Templeton Multi-Asset Solutions Business and Quantitative Manager QS Investors Join Forces

• More Than $120 Billion Solutions Business Brings Together Complementary Client Bases, Geographical Footprint and Investment Strengths

• Combination Adds Scale, Expertise and Cutting-Edge Technology to Deliver Best-in-Class Solutions for Clients

SAN MATEO, Calif.–(BUSINESS WIRE)–Franklin Templeton today announced its plans to combine the Franklin Templeton Multi-Asset Solutions (FTMAS) and QS Investors capabilities to form Franklin Templeton Investment Solutions (FTIS), a single best-in-class solutions business platform that will deliver an expanded range of investment capabilities to clients. Effective October 1, 2020, the combined team of more than 120 investment professionals will oversee more than $120 billion in multi-asset strategies, leveraging a broad spectrum of investment capabilities from fundamental to quantitative.

FTMAS is Franklin Templeton’s multi-asset “hub” that integrates the firm’s independently managed fundamental and quantitative research into customized solutions for clients around the globe. QS Investors is known for its innovative quantitative, factor-based equity and asset allocation strategies as well as customized portfolio construction capabilities. QS became one of Franklin Templeton’s specialist investment managers through its acquisition of Legg Mason on July 31, 2020.

“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. We realized we had a unique chance to leverage the investment expertise and technologies of two world-class businesses and the expanded capabilities of our specialist investment managers while creating strategic advantages for our clients. Today’s announcement is the result of that shared vision,” said Jenny Johnson, President and CEO of Franklin Templeton.

“The combination of FTMAS and QS capabilities will create a sizeable solutions business with scale to compete with the largest full-service providers,” said Ed Perks, President and Chief Investment Officer (CIO) of FTMAS. “In addition to offering an expanded range of outcome-oriented multi-asset and multi-factor equity solutions, we expect to deliver enhanced tools and reporting to our clients stemming from our ongoing strategic investments in fintech and data science.”

“This combination will leverage the strengths of QS and FTMAS to deliver better outcomes for clients,” said Adam Petryk, President and CEO of QS. “Our expertise in quantitative factor-based equity and customized asset allocation strategies is the perfect complement to FTMAS’s industry-leading fundamental asset allocation and strong global presence. Together we can offer broad and deep investment expertise and will leverage a common investment technology platform to both deliver the investment outcomes our clients need and serve as the foundation for how clients will expect to engage with investment managers in the future. We are becoming better together.”

Ed Perks will lead Franklin Templeton’s newly combined solutions business, continuing in his role as President and CIO while capitalizing on an experienced team of senior leaders from QS and FTMAS to direct core functions.

Senior leadership appointments that have been announced include:

• Adam Petryk, Executive Vice President (EVP) and Head of Solutions Strategy and Development for FTIS, will lead solutions strategy and management, digital engagement, investment technology, business management and client engagement as well as trading and operations for the combined group. He will continue as President and CEO of QS Investors LLC.
• Wylie Tollette will continue as EVP and Head of Client Investment Solutions, leading the portfolio management and client investment solutions functions.
• Gene Podkaminer, EVP and Head of Research, will lead the combined research teams of fundamental and quantitative research across strategies.

About Franklin Templeton Multi-Asset Solutions

With strategies dating back to 1948, FTMAS is dedicated to helping investors achieve their financial goals through multi-asset strategies, including income funds, diversified-outcome funds and asset allocation funds. Franklin Templeton’s deep bench of multi-asset experts generates a top-down view across asset classes and regions while connecting the bottom-up insights of the global investment teams across Franklin Templeton. FTMAS has $105 billion in assets under management (AUM) as of August 31, 2020. Its 65 employees are spread across offices in San Mateo, New York, London, Toronto, Frankfurt, Singapore, Hong Kong and Mumbai.

About QS Investors

QS Investors is a quantitative asset management firm that was formed in 1999. Currently, it has 78 employees in offices in New York and Boston. As of August 31, 2020, it has $17 billion in AUM. Its select team of mathematicians, engineers, scientists, finance and investment experts create multi-asset and multi-factor equity solutions that are designed to help clients achieve their investment goals. QS’s quantitative investment approach is rigorously tested using measured methods that adapt to changing market conditions with the goal of delivering strong, consistent returns.

About Franklin Templeton

Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients 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 offices in over 30 countries and 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 August 31, 2020. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.

Copyright © 2020. Franklin Templeton. All rights reserved.

Contacts

Franklin Templeton

Corporate Communications:

Stacey Coleman, (650) 525-7458, stacey.coleman@franklintempleton.com

QS Investors

Corporate Communications:

Lisa Tibbitts, 917-674-8060 Lisa.Tibbitts@franklintempleton.com