QS Investors is a New York-based customised solutions and global quantitative equities specialist with $4.1bn in assets under management and nearly $100bn under advice, which will, in time, absorb Legg Mason’s existing Batterymarch and Legg Mason Global Asset Allocation platforms.
The deal is set to complete in the first fiscal quarter in the financial year 2015 with Legg Mason expected to incur restructuring and transition costs of approximately $35m.
“The combined platform will be a world-class retail and institutional solutions and global quantitative equity provider with compelling investment strategies and strong consultant relationships,” a statement said.
The expanded platform will be branded under the QS Investors name, and headed by Janet Campagna as chief executive and Rosemary Macedo as chief investment officer. Other key members from Batterymarch and LMGAA will also join the existing QS team.
Liquid alts and smart beta
From a stronger position in liquid alternatives and smart beta strategies, Legg Mason said it would be able to leverage the enhanced solutions platform with its other affiliates and global distribution network to the institutional and retail markets, meeting growing demand for customised solutions.
Joseph Sullivan, president and chief executive of Legg Mason said: “Optimising and expanding our portfolio of investment products has been a top priority for our senior management team. The combination of QS Investors’ highly regarded investment capabilities and thought leadership with our existing investment teams creates a powerful offering in an area of the market that is expected to experience significant growth in the coming decade.
“When we marry that with our global distribution platform, we believe we will be well positioned to bring compelling products to retail and institutional investors in markets around the world. “