Franklin Resources struck a deal to acquire the strategies and track records of Aviva Investors' U.S. investment-grade credit strategies.
The financial details of the transaction are not being disclosed, said Stacey Coleman, a Franklin spokeswoman, in an email.
Aviva's U.S. investment-grade team currently manages about $7.5 billion in strategies including investment-grade credit, long-duration credit, long-duration government/credit and intermediate credit along with customized versions of each strategy managed for institutional investors.
Ms. Coleman said Aviva clients currently invested in the team's strategies will be able to enter into agreements with Franklin Templeton to have the Aviva team continue to manage their assets.
As part of the deal, Franklin Templeton also will hire four Aviva fixed-income employees to join the manager's fixed-income unit by the end of the year.
Thomas Meyers will join as a senior vice president and will take on a new role for the firm as senior director of investments and strategy development, fixed income, a news release said.
He will head a new team that will "help set the strategy for engagement with clients, prospects and intermediaries to discuss (Franklin Templeton Fixed Income's) investment philosophy, process and performance," the release said.
Josh Lohmeier will join Franklin Templeton as senior vice president and portfolio manager investment grade, and Michael Cho will be a vice president and portfolio manager.
Mr. Lohmeier is an investment officer and head of North American investment-grade credit at Aviva and Mr. Cho is a portfolio manager for U.S. investment grade.
A fourth person from Aviva also will join the U.S. investment-grade team by the end of the year. Details on that role are not available now, Ms. Coleman said.
Messrs. Lohmeier and Meyers both will report to Sonal Desai, CIO of Franklin Templeton's fixed-income business.
All four of the new employees will be based in Franklin Templeton's Chicago office, Ms. Coleman said.
"Bringing this experienced team aboard will complement our existing credit capabilities by further deepening our expertise in investment-grade credit, strengthening our research and analysis resources, and expanding our strategy offerings further into the institutional marketplace, with a special focus on defined benefit and liability-driven investment," Ms. Desai said in the release.
After the deal is done, Aviva Investors will remain active in U.S. investment-grade credit, said an Aviva spokesman in an email.
"Aviva Investors is retaining U.S. investment-grade credit capability to cover its global products," the Aviva spokesman said.
"The firm's U.S. credit analysts based in Chicago and portfolio managers for global high-yield and buy-and-maintain strategies will remain with Aviva Investors and we will add further resources to the team as required. Furthermore, there will be no impact on our Canadian credit team in Toronto," the spokesman added.
As of Aug. 31, Franklin Resources managed a total of $1.57 trillion, including $156 billion in fixed income, of which approximately $13 billion was managed in corporate credit.
Aviva Investors managed £262 billion ($363 billion) as of June 30.