A long-serving Franklin Templeton executive will lead the combined entity in the region once the Legg Mason acquisition is complete. But the appointee has come as a surprise to some.
The move is seen as unlikely to mean much change for asset owners in Asia Pacific, but fund managers will be keeping a close eye on how it develops.
But while Morningstar sees the bond house as the "strength" of Franklin Templeton's takeover of Legg Mason, the merged firm may be vulnerable to competition from index fund managers.
The fund industry’s latest mega-takeover has big implications for the two firms and for their clients in Asia. AsianInvestor looks at issues that the deal raises.
Speaking to AsianInvestor, senior executives of both businesses stress the potential expansion of ESG and cash management products, particularly in Asia.
The fund house is laying off most of its investment and operations staff in Hong Kong and Singapore in a post-merger restructuring, while keeping teams intact elsewhere in the region.