Statements in this press release that are not historical facts are “forward-looking statements” within the meaning of the U.S. Becoming one of the largest global investment funds comes at a price. The long term challenges created by the shift toward lower-fee passive funds were already set in place. I want to thank employees from both companies for their tremendous contributions and exceptional focus on our clients and the business throughout the process,” Johnson added. With employees in over 30 countries, including 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 June 30, 2020 (on a pro forma basis for its acquisition of Legg Mason, Inc.). https://www.businesswire.com/news/home/20200731005478/en/, Franklin Resources, Inc. The company saw revenue decline by 5% although net income rose 9%. Stock and bond markets have mostly recovered from the crash experienced earlier in the year, but remaining uncertainty over the economy has left investors questioning the sustainability of current asset prices and thus the sustainability of Franklin's revenue base. Yahoo fait partie de Verizon Media. But in the long run, the deal could still work out if the company can drive improved earnings through operational efficiencies. Baltimore tech and operations advisory firm Think is bringing former Legg Mason execs to its team and seeking a national foothold with a new acquisition.. In all likelihood, the results at Franklin Resources and Legg Mason would not have been much better in a "normal" economy. This acquisition unlocks substantial value and growth opportunities driven by greater scale, diversity and balance across investment strategies, distribution channels and geographies. The acquisition has made the company the sixth-largest independent asset manager in the world, behind the likes of BlackRock and the Vanguard Group. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Luis Sanchez CFA has been a contributor to the Motley Fool since 2019. SAN MATEO, Calif.--(BUSINESS WIRE)-- Découvrez comment nous utilisons vos informations dans notre Politique relative à la vie privée et notre Politique relative aux cookies. Privacy Policy, Business Continuity Plans
Cumulative Growth of a $10,000 Investment in Stock Advisor, Franklin Templeton Just Acquired Legg Mason. Becoming one of the largest global investment funds comes at a price. To increase efficiency, asset management firms need to consolidate the industry through acquisition. “A significant amount of work has gone into preparing us for this exciting firm combination over the past five months, all during an unprecedented pandemic with nearly everyone involved working remotely. Recently, Franklin Resources BEN, operating as Franklin Templeton, completed the acquisition of Legg Mason, Inc. and its specialist investment managers. EnTrust Global, which provides alternative investment solutions, will once again become a private company, with the business to be acquired by its management at closing of the Legg Mason acquisition. For a detailed discussion of other risk factors, please refer to the risks, uncertainties and factors described in the Company’s and Legg Mason’s recent filings with the U.S. Securities and Exchange Commission, including, without limitation, each company’s most recent Annual Report on Form 10-K and subsequent periodic and current reports. Media Relations: Matt Walsh (650) 312-2245 When used in this press release, words or phrases generally written in the future tense and/or preceded by words such as “will,” “may,” “could,” “expect,” “believe,” “anticipate,” “intend,” “plan,” “seek,” “estimate,” “preliminary” or other similar words are forward-looking statements. We recommend using Internet Explorer 7.0 and above, or Firefox 3.0 and above, or Safari 3.0 or higher to ensure you see this site properly. Legg Mason's shareholders likely got the better end of the deal because they locked in a good share price right before the COVID-19 pandemic-induced market crash. Franklin Resources, Inc. [NYSE:BEN], is a global investment management organization operating as Franklin Templeton Investments. As a result, Franklin Resources may have overpaid for the acquisition; however, to the extent that the combined company is able to drive a higher profit margin through efficiencies and more stable revenue growth, its shareholders stand to benefit. Franklin Resources (NYSE:BEN), a holding company that operates the investment management firm Franklin Templeton, just acquired competitor Legg Mason in a $4.5 billion deal that now makes the combined firm one of the world's largest in assets under management. The hope is that by acquiring Legg Mason, Franklin Resources can diversify its revenue base so that it is less concentrated on actively managed mutual funds and drive higher profit margins through cost synergies throughout its business by eliminating duplicative corporate overhead and combining similar product teams. Investors will need to suffer through several more quarters of integration issues and business headwinds. Any forward-looking statement made in this press release speaks only as of the date on which it is made. Franklin Resources' acquisition of Legg Mason. One Legg Mason affiliate will not form part of the enlarged group. Expanding into additional financial products is strategically an interesting move that could help Franklin spark revenue growth. Although the pain may have been exacerbated by the fact that Franklin Resources paid a hefty sum to acquire Legg Mason. However, in the near term, the company's financial picture isn't terribly attractive. View source version on businesswire.com: The asset management industry has seen a decrease in financial performance over the years. However, given how far the company's stock price has declined relative to peers, perhaps the stock is worth holding as the company turns the ship. Franklin Resources is paying $50 per share for Legg Mason in the all-cash acquisition, a 23% premium over Legg Mason’s closing stock price on Feb. 14, sending its shares higher in Tuesday trading. “A tremendous amount has happened since we made our announcement in mid-February, but the strategic rationale for this powerful combination has only strengthened. Franklin Resources, Inc. (the “Company”) [NYSE:BEN], a global investment management organization with subsidiaries operating as Franklin Templeton, today announced that it has completed its previously announced acquisition of Legg Mason, Inc. [NYSE:LM] and its specialist investment managers. Market data powered by FactSet and Web Financial Group. Industry consolidation will enable firms to manage greater assets with fewer employees and reduce marketing costs due to fewer competitors. Establishes Franklin Templeton as One of the World’s Largest Independent, Specialized Global Investment Managers, Combined Company to Offer Complementary Investment Strategies to More Clients in More Places. Returns as of 11/25/2020. A California-based global investment management organization has struck a deal to acquire Baltimore’s Legg Mason money management firm. Pour autoriser Verizon Media et nos partenaires à traiter vos données personnelles, sélectionnez 'J'accepte' ou 'Gérer les paramètres' pour obtenir plus d’informations et pour gérer vos choix.
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