Roger Paradiso, Head of Franklin Templeton Custom Client Solutions at Franklin Templeton, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss custom indexing using the Canvas platform.
Franklin Templeton purchased Legg Mason, which was a large producer of separately managed accounts. This acquisition moved Franklin Templeton into the position of being a leading provider of SMAs. The firm has a goal to define the future of SMAs and continue to be a leader in the space. SMAs allow advisors to deliver customized and personalized investments to their clients.
Franklin Templeton also purchased O’Shaughnessy Asset Management. This allows advisors to build custom portfolios using O’Shaughnessy’s deep history of valuation and quantitative investing expertise.
The Canvas platform provides custom indexing and direct indexing services. The platform provides solutions more complex than simply buying an index with tax loss harvesting parameters and stocks restricted from being held in the portfolio. Paradiso notes that the Canvas platform provides a great user experience. The platform provides custom indexing solutions similar to a UMA and allows advisors to add their own custom models and portfolios. Franklin Templeton is looking to add features to the platform, such as options overlays, guaranteed income strategies, and long-short equity strategies, such as 130-30. Paradiso states that advisors can use Canvas to help grow their business by differentiating their client service offerings from those of other advisors.
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