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Franklin Closes Athena Capital Buyout With AUM Worth $6B
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Recently, Franklin Resources’ (BEN - Free Report) wholly-owned subsidiary — Fiduciary Trust Company International — a global wealth manager completed the acquisition of Lincoln, MA-based Athena Capital Advisors, LLC. The terms of the deal, inked this January, remain undisclosed.
The acquisition’s completion will fortify its wealth-management business through diversification of the company’s investment solutions, in order to cater the rising demands of high-net-worth and ultra-high-net-worth clients.
Athena Capital is a privately-owned registered investment adviser, with around $6 billion in assets under management (AUM). It serves both tax-exempt institutions and taxable families with wealth management and investment counsel services, along with wealth planning, impact investing, and investment administration and reporting services. Notably, Fiduciary Trust Company International now would cater around $25 billion in AUM.
"Lisette and her team have been pioneers in the fields of impact investing and quantitative investment management, and the due diligence, investment research, and manager selection methodologies they have developed in these areas will strengthen the advisory services we provide across our organization," said John M. Dowd, chief executive officer of Fiduciary Trust Company International. "The combination of our firms will enhance the experience we can deliver to high-net-worth and ultra-high-net-worth clients across the country," noted Dowd.
Conclusion
Franklin’s inorganic growth activities reflect capital strength and efforts to enhance its performance. Increasing outflows in asset management business due to investors moving toward lower fee passively managed funds has forced asset managers to explore acquisition opportunities with wealth advisers as attractive targets. Remarkably, steady fees and growing demand for advice has made these firms attractive buyouts. Additionally, Franklin will likely benefit from an improving domestic economy.
Nonetheless, its performance and profitability might be hampered due to volatile markets and unfavorable global economic conditions on the emergence of coronavirus as a global pandemic .
Over the last six months, shares of Franklin have lost around 10.3%, as against the industry’s growth of 2.9%. The stock currently carries a Zacks Rank #3 (Hold).
Legg Mason, Inc. has been witnessing upward estimate revisions for the past 60 days. Also, the company’s shares have gained 37.8% in the past six months. It sports a Zacks Rank of 1, at present.
Cohen & Steers Inc (CNS - Free Report) has been witnessing upward estimate revisions for the past 60 days. Additionally, the stock has appreciated 24.6% in the past six months. It currently flaunts a Zacks Rank #1.
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Franklin Closes Athena Capital Buyout With AUM Worth $6B
Recently, Franklin Resources’ (BEN - Free Report) wholly-owned subsidiary — Fiduciary Trust Company International — a global wealth manager completed the acquisition of Lincoln, MA-based Athena Capital Advisors, LLC. The terms of the deal, inked this January, remain undisclosed.
The acquisition’s completion will fortify its wealth-management business through diversification of the company’s investment solutions, in order to cater the rising demands of high-net-worth and ultra-high-net-worth clients.
Athena Capital is a privately-owned registered investment adviser, with around $6 billion in assets under management (AUM). It serves both tax-exempt institutions and taxable families with wealth management and investment counsel services, along with wealth planning, impact investing, and investment administration and reporting services. Notably, Fiduciary Trust Company International now would cater around $25 billion in AUM.
"Lisette and her team have been pioneers in the fields of impact investing and quantitative investment management, and the due diligence, investment research, and manager selection methodologies they have developed in these areas will strengthen the advisory services we provide across our organization," said John M. Dowd, chief executive officer of Fiduciary Trust Company International. "The combination of our firms will enhance the experience we can deliver to high-net-worth and ultra-high-net-worth clients across the country," noted Dowd.
Conclusion
Franklin’s inorganic growth activities reflect capital strength and efforts to enhance its performance. Increasing outflows in asset management business due to investors moving toward lower fee passively managed funds has forced asset managers to explore acquisition opportunities with wealth advisers as attractive targets. Remarkably, steady fees and growing demand for advice has made these firms attractive buyouts. Additionally, Franklin will likely benefit from an improving domestic economy.
Nonetheless, its performance and profitability might be hampered due to volatile markets and unfavorable global economic conditions on the emergence of coronavirus as a global pandemic .
Over the last six months, shares of Franklin have lost around 10.3%, as against the industry’s growth of 2.9%. The stock currently carries a Zacks Rank #3 (Hold).
Key Picks
Lazard Ltd (LAZ - Free Report) has been witnessing upward estimate revisions for the past 60 days. Moreover, this Zacks #1 (Strong Buy) Ranked stock has rallied more than 12% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
Legg Mason, Inc. has been witnessing upward estimate revisions for the past 60 days. Also, the company’s shares have gained 37.8% in the past six months. It sports a Zacks Rank of 1, at present.
Cohen & Steers Inc (CNS - Free Report) has been witnessing upward estimate revisions for the past 60 days. Additionally, the stock has appreciated 24.6% in the past six months. It currently flaunts a Zacks Rank #1.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>