Franklin Templeton is set to bring its Franklin Templeton Multi-Asset Solutions (FTMAS) unit and QS Investors under a single roof to create a new solutions business platform.
The merged entity will trade as Franklin Templeton Investment Solutions (FTIS) and have over 120 investment professionals.
The combined business will manage over $120bn in multi-asset strategies, covering fundamental to quantitative.
The consolidation will take effect next month.
FTMAS president and CIO Ed Perks will be in charge of the merged business.
He will also retain his existing role.
Adam Petryk will serve as the executive vice president (EVP) and head of Solutions Strategy and Development of FTIS.
Wylie Tollette will be the EVP and head of Client Investment Solutions at the consolidated business, while Gene Podkaminer will be the EVP and head of Research.
Perks said: “The combination of FTMAS and QS capabilities will create a sizeable solutions business with scale to compete with the largest full-service providers.
“In addition to offering an expanded range of outcome-oriented multi-asset and multi-factor equity solutions, we expect to deliver enhanced tools and reporting to our clients stemming from our ongoing strategic investments in fintech and data science.”
Quantitative asset manager QS Investors focuses on factor-based equity and asset allocation strategies and customised portfolio construction capabilities.
The business was a subsidiary of Legg Mason, which was taken over by Franklin Templeton for $4.5bn in July this year.
Franklin Templeton president and CEO Jenny Johnson said: “It became clear in ongoing discussions between QS and FTMAS that we could unlock substantial value and deliver new growth opportunities if we combined our solutions business efforts.
“We realised we had a unique chance to leverage the investment expertise and technologies of two world-class businesses and the expanded capabilities of our specialist investment managers while creating strategic advantages for our clients.”