Franklin Resources has entered into an agreement to acquire the senior credit strategies and history of Aviva Investors in the United States.

Financial details of the transaction are withheld, Franklin spokeswoman Stacey Coleman said in an email.

The Aviva team in the United States currently manages approximately $ 7.5 billion in strategies, including investment grade credit, long-term credit, long-term credit / government, and mid-level credit as well as customized versions of each managed strategy for institutional investors.

Ms. Coleman said Aviva clients currently invested in the team’s strategies will be able to enter into deals with Franklin Templeton to keep the Aviva team managing their assets.

As part of the deal, Franklin Templeton will also hire four fixed-income Aviva employees to join the manager’s fixed-income unit by the end of the year.

Thomas Meyers will join as senior vice president and assume a new role for the company as senior director of investments and strategy development, fixed income, a press release said.

He will lead a new team that “will help define the engagement strategy with clients, prospects and intermediaries to discuss the investment philosophy, process and performance of (Franklin Templeton Fixed Income),” the statement said. .

Josh lohmeier will join Franklin Templeton as senior vice president and investment grade portfolio manager, and Michel cho will be vice president and portfolio manager.

Mr. Lohmeier is an investment officer and senior credit leader in North America at Aviva and Mr. Cho is a portfolio manager for the investment grade in the United States.

A fourth person from Aviva will also join the US Investment Grade team by the end of the year. Details on this role are not available at this time, Coleman said.

MM. Lohmeier and Meyers will both report to Sonal Desai, CIO of the bond business at Franklin Templeton.

The four new employees will be based at Franklin Templeton’s Chicago office, Coleman said.

“The recruitment of this experienced team will complement our existing credit capabilities by further deepening our expertise in quality credit, strengthening our research and analysis resources and expanding our strategy offerings in the institutional market, with an emphasis particularly on defined benefits and liability. “Induces investments,” Desai said in the statement.

Once the deal is done, Aviva Investors will remain active in US investment grade credit, an Aviva spokesperson said in an email.

“Aviva Investors maintains the quality US credit capacity to cover its global products,” said the spokesperson for Aviva.

“The company’s Chicago-based US credit analysts and portfolio managers for Global High Yield and Buy and Hold strategies will remain with Aviva Investors and we will add additional resources to the team as needed. In addition, there will be no impact on our Canadian credit team in Toronto, ”added the spokesperson.

As of August 31, Franklin Resources managed a total of $ 1.57 trillion, of which $ 156 billion was in fixed income, of which about $ 13 billion was managed in corporate credit.

Aviva Investors managed £ 262 billion ($ 363 billion) as of June 30.


Leave a Reply

Your email address will not be published.