Franklin Templeton Acquires Managed Options Capabilities for Advisors Serving Wealth Management and Institutional Clients
May 02 2023 - 9:00AM
Business Wire
Acquisition of volScout Reinforces Franklin
Templeton’s Position as a Top SMA Provider and Enhances Its Custom
Solutions Capabilities
Franklin Resources, Inc. [NYSE:BEN], a global investment
management organization operating as Franklin Templeton, today
announced that it has acquired volScout, an early-stage business
delivering managed options strategies to advisors serving wealth
management and institutional clients, and has hired its founding
partners, Brad Berggren, Jon Orseck and Roger Weber. With this
transaction, Franklin Templeton, a leading separately managed
account (SMA) provider with approximately $110 billion in SMA
assets under management, adds managed options strategies to its
comprehensive suite of custom solutions capabilities.
“Managed options strategies are a highly complementary addition
to Franklin Templeton’s expanding menu of custom solutions, which
advisors increasingly require to address the sophisticated needs of
their clients,” said Roger Paradiso, Head of Product Solutions for
Franklin Templeton. “Brad, Jon and Roger have a long and successful
history of delivering managed options solutions at scale to clients
across channels and vehicle types, and bringing aboard such
experienced and forward-thinking talent helps fuel our ongoing
innovation to anticipate and address evolving client needs.”
The team will operate as the newly formed Franklin Managed
Options Strategies, LLC (Franklin MOST), and is the most recent
addition to Franklin Templeton’s Product Solutions division, led by
Paradiso, which also includes Canvas®, Franklin Templeton’s custom
indexing platform.
Franklin MOST strategies will offer rules-based option selection
based on volatility and maturity, real-time risk management and
systematic market-linked portfolio rebalancing. These features have
the potential to enhance portfolio construction by helping advisors
and clients manage both the risk and volatility of the overall
portfolio, generally without altering its underlying asset
allocation. These strategies can have wide-ranging applicability
across channels and vehicle types and can be delivered in an SMA
format as well as through commingled vehicles and other private
fund structures.
“We were drawn to Franklin Templeton for its world-renowned
brand and reputation as well as its tremendous global distribution
reach across both wealth management and institutional
relationships,” said Berggren. “Our team will also benefit from
leveraging Franklin Templeton’s global infrastructure to enhance
risk management, compliance, operations and technology
capabilities. We are excited about the future together.”
Orseck added, “Like Franklin Templeton, we have a client-first
focus, an appreciation for risk management and a strong drive for
product innovation. We are very excited about the product
collaboration opportunities, given the breadth of capabilities that
Franklin Templeton offers across its many specialist investment
managers, notably in the alternatives space.”
volScout founding partners Berggren, Orseck and Weber have
decades of industry experience developing market-leading technology
platforms used to manage derivative-based SMAs and funds and have
held a number of senior roles in derivatives throughout their long
careers.
Terms of the transaction were not disclosed. volScout was
advised on the transaction by Convergency Partners, a unique
advisory and consulting business.
All investments are subject to risk, including possible loss of
principal.
Options are not suitable for all investors. Investors must
ensure that they have read and understood the current options risk
disclosure document before entering any options transactions. In
addition, investors should consult with a tax, legal and/or
financial advisor prior to contemplating any derivative
transactions.
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 155 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,
multi-asset solutions and alternatives. With offices in more than
30 countries and approximately 1,300 investment professionals, the
California-based company has over 70 years of investment experience
and approximately $1.4 trillion in assets under management as of
March 31, 2023. For more information, please visit
franklinresources.com.
Franklin Distributors, LLC. Member FINRA/SIPC. Franklin
Distributors, LLC is a Franklin Templeton affiliated company.
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Franklin Resources, Inc. Investor Relations: Selene Oh, (650)
312-4091, selene.oh@franklintempleton.com Corporate Communications:
Rebecca Radosevich, (212) 632-3207,
rebecca.radosevich@franklintempleton.com franklinresources.com
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