Franklin Templeton has selected fintech provider FIS to operate its global transfer agency (TA) services, with the latter assuming the function as a sub-agent or delegate depending on the jurisdiction.

The agreement will allow Franklin Templeton, which manages US$1.56 trillion in assets globally, to continue focusing on its core business of investment management, according to a press statement. For FIS, the partnership aligns with its focus on expanding its business process as a service (BPaaS) offerings, as well as accelerating its reach into new markets across Canada, Europe and Asia-Pacific.

Alok Sethi, executive vice president of technology and operations at Franklin Templeton, says: “As with all of our decisions, the needs of our customers are always at the forefront, and we expect this change will best support their future servicing needs. A contributing factor to this decision was our acquisition of Legg Mason last year. We have made it a priority to move the combined firm to a single transfer agent platform, which will allow financial professionals and fund shareholders to purchase and exchange all of our funds with ease.”

As part of the transaction, Franklin Templeton will transfer the rights to certain aspects of its intellectual property to FIS, including solutions supporting the ability to provide multi-jurisdictional international TA services and 529 college saving plan functionality.

Nasser Khodri, head of capital markets at FIS, says: “By partnering with FIS, Franklin Templeton will be able to transition its transfer agency services to a managed solution to realize key servicing enhancements and operational efficiencies, while minimizing its enterprise risk. With the additional capabilities FIS has acquired as part of this partnership, the asset management and servicing community now has a modern, technology-driven choice for global transfer agency services, backed by the commitment and stability of FIS. We look forward to welcoming the Franklin Templeton team members who will join FIS as an essential part of our business.”

Under the deal, Franklin Templeton will remain the named transfer agent or central administrator globally and will oversee FIS in the provision of its services as its sub-agent or delegate, depending on the local jurisdiction. About 1,450 Franklin Templeton employees across Asia-Pacific, Canada, Europe, and the United States will be given the opportunity to join FIS.