Franklin Templeton completes the $4.5 billion acquisition of Legg Mason to create one of the largest asset managers in the world.

The newly merged asset manager that includes Franklin Templeton, Legg Mason and the latter’s specialist investment managers now house a combined $1.4 trillion in assets under management.

Franklin Templeton expects enhancements in its core fixed income, equities and alternatives offering, adding that no changes will be made to Legg Mason’s specialist investment managers’ strategies, according to a statement.

APAC Expansion

Post-merger, the combined business in the Asia Pacific will have over $164 billion in assets under management – nearly 12 percent of the global share – with Singapore acting as a key growth for Franklin Templeton. Newly appointed head of Singapore and Southeast Asia (ex-Malaysia and Vietnam) Dora Seow highlighted continued income demand, highlighting Legg Mason’s fixed income specialists, in particular as examples of increased competitiveness in investment capabilities.

«The addition of specialist investment managers like Brandywine and Western Asset Management will broaden our fixed income capabilities, with products such as the Singapore domiciled fixed income funds and Asian bond fund that form a core component of client portfolios,» Seow said.

«Real estate capabilities of our combined organization, in particular infrastructure, will be a meaningful diversification opportunity going forward, for investors seeking yield in Singapore.»

Historic Deal

News of Franklin Templeton’s decision to acquire Baltimore-based Legg Mason first emerged in February this year in the midst of an ongoing coronavirus pandemic. According to the New York-based asset manager’s president and CEO Jenny Johnson, the dal represented «the largest and most significant transaction» in the firm’s history.

«A tremendous amount has happened since we made our announcement in mid-February, but the strategic rationale for this powerful combination has only strengthened,» Johnson added.

«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.»