Franklin Resources, Inc.'s BEN subsidiary, Franklin Templeton, expanded its partnership with Envestnet, Inc. ENV to offer tax-managed, customized strategies at scale through its Canvas Custom Indexing platform. The partnership is part of the previously-announced strategic relationship between the companies. 

This marks another milestone for Franklin Templeton, furthering its position as a top Separately Managed Account (SMA) provider.

Canvas' web-based platform allows advisors to effortlessly design individualized and diverse portfolios that focus on tax management. Canvas is a holistic system that goes beyond standard Direct Indexing to provide advisors with more investment options, better control and the tools and efficiency they need to develop their companies. 

Through this partnership, Canvas will be added to the Envestnet platform in stages, starting with passive equity models and progressing to a more comprehensive product and experience. Advisors from Envestnet's broad clientele, which includes RIAs, banks, wealth management companies and brokerage houses, will have access to Canvas.

Management Remarks

Roger Paradiso, head of Product Solutions for Franklin Templeton, said, “The integration of Canvas on to the Envestnet platform is an exciting partnership that allows us to jointly bring more high-net-worth capabilities to the mass affluent investing community. Advisors using Envestnet will now have access to Canvas’ differentiated digital solutions and operational assurance to strengthen client relationships by further personalizing investment management.”

“Investors are increasingly seeking customized solutions, and their advisors are looking to deliver on that expectation by providing personalization at scale across their business,” said Dana D’Auria, Co-CIO and group president, Envestnet Solutions. D’Auria further added, “This partnership showcases Envestnet’s commitment to solving this need in the market by providing greater choice and access for Direct Indexing with a tool from a trusted provider. Direct Indexing empowers advisors to tailor a portfolio that better aligns with their client’s personal values, tax goals, and long-term objectives, and we’re providing the level of customization and choice that today’s market demands.”

Final Words on Franklin's Partnership with Envestnet

Franklin Templeton, with nearly $140 billion in SMA assets under management as of June 30, 2024, including $9 billion on the Canvas platform, considers this partnership as a breakthrough in bringing high-net-worth capabilities to mass affluent investors.

In the past six months, shares of BEN have plunged 24.8% against the industry’s 17.2% rise.

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BEN's Zacks Rank

Currently, BEN carries a Zacks Rank #4 (Sell).

Stocks Worth Considering

Some better-ranked finance stocks are Janus Henderson Group plc JHG and BlackRock Inc. BLK.

Earnings estimates for JHG for the current year have been revised 5.2% upward in the past 60 days. The company’s shares have gained 19.3% in the past six months. Currently, JHG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Estimates for BLK’s current-year earnings have risen nearly 1% in the past month. The company’s shares have appreciated 16.1% in the past six months. At present, BLK carries a Zacks Rank #2.

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