Franklin Templeton merges with Legg Mason, with 'minimal cuts' in Singapore

Singapore

FRANKLIN Templeton has completed its merger with fund management company Legg Mason at end-July with minimal staff cuts in Singapore, with the US offices absorbing most of the 8 per cent staff layoffs from its combined workforce of about 12,600.

The Business Times understands that fewer than five staff in Singapore were affected out of its headcount of about 140, which means it was not necessary to notify the Ministry of Manpower (MOM). Under MOM guidelines, it is mandatory for employers with at least 10 employees who have retrenched 5 or more staff within any 6-month period to notify MOM of the retrenchment exercise.

Franklin Templeton said the global cuts were limited to holding company corporate functions and centralised distribution after a review to determine overlaps in both firms, as well as to streamline operations for additional savings. About US$300 million in gross cost savings was identified during the review.

Franklin Templeton clarified that there are no changes planned to investment strategies or portfolio management personnel within Legg Mason's specialist investment managers.

Following the merger, Franklin Templeton has become one of the world's largest asset managers, with assets under management (AUM) of US$164 billion in Asia Pacific, and US$1.4 trillion globally.

Legg Mason, which provides access to funds managed by its specialist investment managers through distribution partners such as banks, independent financial advisors and investment platforms, has AUM of US$730.8 billion as of March 31, 2020.

In Singapore, the acquisition expands its products offerings for clients in core fixed income, active equities and alternatives, as well as beefed up its multi-asset solutions capabilities, said Franklin Templeton.

Singapore is Franklin Templeton's regional hub, and houses its global centre for emerging markets investment management. Other investment teams that have a presence here include Franklin Templeton Multi-Asset Solutions, Templeton Global Equity Group, Fixed Income and Templeton Global Macro.

The addition of former Legg Mason affiliates, such as Brandywine and Western Asset Management is expected to broaden its 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.

Following the integration, the combined group has also strengthened its real estate capabilities and has more than doubled its alternative asset presence with the addition of real estate manager, Clarion.

Dora Seow, country head of Singapore for Franklin Templeton, noted that its real estate capabilities, in particular infrastructure, will be a "meaningful diversification opportunity going forward", for investors seeking yield in Singapore.

"As we mark our 30th anniversary in Singapore this year, we look forward to continue providing investors with insights, analysis and credible views to inform them of intelligent choices and opportunities that abound in the current economic climate," she added.

Ms Seow was recently moved up to an expanded role as country head and co-CEO of Templeton Asset Management Singapore, as part of the newly reshuffled Asia Pacific leadership team. She also heads its distribution business in South-east Asia (excluding Malaysia), including its institutional and wholesale businesses.