STAMFORD, Conn.--(BUSINESS WIRE)--O’Shaughnessy Asset Management, LLC (OSAM), a leading quantitative asset management firm, announced today that the firm’s industry-leading Custom Indexing platform Canvas® passed $2 billion in assets under management after hitting $1 billion earlier this year. This milestone puts O’Shaughnessy Asset Management over $7 billion* in total firm assets. Canvas allows financial advisors to build and manage Custom Indexes in separately managed accounts (SMAs) that are individually tailored to the client’s specific needs, preferences, and goals. Canvas launched in late 2019 and has been building alongside an early group of registered investment advisor (RIA) partners. Additionally, it was recently announced that OSAM and Franklin Resources, Inc, (“Franklin Templeton”) have entered into an agreement for Franklin Templeton to acquire OSAM and its Canvas platform.
“Canvas offers a powerful centralized operating platform with unmatched functionality for delivering individualized advice and managing all aspects of the portfolio,” said Patrick O’Shaughnessy, CFA, Chief Executive Officer of OSAM. “The level of control provided to advisors, combined with reductions in the time and costs associated with administrative tasks, is transformative for teams. The rapid growth in Canvas AUM is primarily due to increased velocity from our original partners as well as new assets from a second cohort of RIA partners newly onboarded.”
Custom Indexes enable financial advisors to utilize an asset manager’s proprietary research and represent an improvement on Direct Indexes which subscribe to an index company’s methodology. This approach enables advisors to fully customize portfolios based on client-specific needs and values. With Canvas comes 20+ years of data science expertise, which clients are using to target risk/return premiums, income needs, and downside protection as well as optimal tax management and values-based investing goals. Today, 50+ ESG screens are available on the platform and the ability to restrict individual names, industries, and/or sectors. The most heavily used capability for taxable investors is custom tax management. This feature allows advisors to transition and continually manage portfolios within a client’s stated tax budget. From creation to performance, the entire portfolio management process occurs within Canvas’ web-based software.
“We’re fortunate to have incredibly supportive RIA partners who recognize the potential to scale up their firms by simplifying the technology stack,” added O’Shaughnessy. “As we’ve seen, wealth management firms of all sizes are increasingly open to new technologies that offer process efficiencies and client value. Canvas is establishing new frontiers in AdvisorTech.”
Canvas is a continually adapting platform based on ideas and feedback from its advisor clients. Notable recent releases and upgrades include a new tax portal, performance reporting, defensive and stability factors for managing volatility, emerging markets access, concentrated risk management enhancements, and a growing ESG investing option set.
“Despite the surge in interest and adoption of technology-enabled portfolio solutions, Custom Indexing is still in its infancy. I undoubtably believe that the Custom Index will have as great an impact on wealth management as its mutual fund and ETF predecessors. The future is exciting,” said O’Shaughnessy.
O’Shaughnessy Asset Management (OSAM) is a quantitative asset management firm based in Stamford, CT. OSAM delivers a broad range of equity portfolios to institutional investors, individual investors, and high-net-worth clients of financial advisors. OSAM also serves as the investment advisor for a U.S. mutual fund and as a sub advisor to a family of mutual funds in Canada. The firm’s team has managed client assets since 1996. On September 29, 2021, OSAM entered into an agreement to be acquired by Franklin Resources, Inc. [NYSE:BEN], a global investment management organization operating as Franklin Templeton, with over $1.5 trillion in assets under management as of September 30, 2021. For more information, please go to www.osam.com.
*As of 10-31-2021, discretionary assets under management were approximately $6.4 billion and non-discretionary assets under advisement/UMA were approximately $600 million.
Statements in this press release that are not historical facts are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Various forward-looking statements in this press release relate to the acquisition by Franklin Resources, Inc. (“Franklin”) of O’Shaughnessy Asset Management, LLC.
Any forward-looking statement made in this press release speaks only as of the date on which it is made. Factors or events that could cause actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. OSAM undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.