SAN MATEO, Calif.--(BUSINESS WIRE)-- Franklin Resources, Inc. (the “Company”) [NYSE: BEN] today announced net income1 of $350.5 million or $0.70 per diluted share for the quarter ended December 31, 2019, as compared to $306.4 million or $0.61 per diluted share for the previous quarter, and $275.9 million or $0.54 per diluted share for the quarter ended December 31, 2018.
“Through sound expense discipline, we were encouraged to see a second consecutive quarter of significant net income increases, even as net redemptions have continued,” said Greg Johnson, Chairman and CEO of Franklin Resources, Inc. “We’re making strong progress on our important long-term focus areas, including the recently announced acquisitions of Athena Capital and Pennsylvania Trust which will expand Fiduciary Trust, our high-net-worth business, by nearly 50% in assets under management.”
|
| Quarter Ended |
| % Change |
| Quarter Ended |
| % Change | ||||||||||||||||||||
|
| 31-Dec-19 |
| 30-Sep-19 |
| Qtr. vs. Qtr. | 31-Dec-18 |
| Year vs. Year | |||||||||||||||||||
Financial Results |
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(in millions, except per share data) |
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Operating revenues |
| $ |
|
|
| 1,412.7 |
|
| $ |
|
|
| 1,452.5 |
|
| (3 | %) | $ |
|
|
| 1,411.5 |
|
| 0 | % | ||
Operating income |
|
| 392.7 |
|
|
| 391.5 |
|
| 0 | % |
| 411.5 |
|
| (5 | %) | |||||||||||
Operating margin |
|
| 27.8 | % |
|
| 27.0 | % |
|
|
| 29.2 | % |
|
| |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Net income¹ |
| $ |
|
|
| 350.5 |
|
| $ |
|
|
| 306.4 |
|
| 14 | % | $ |
|
|
| 275.9 |
|
| 27 | % | ||
Diluted earnings per share |
|
| 0.70 |
|
|
| 0.61 |
|
| 15 | % |
| 0.54 |
|
| 30 | % | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Assets Under Management |
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(in billions) |
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Ending |
| $ |
|
|
| 698.3 |
|
| $ |
|
|
| 692.6 |
|
| 1 | % | $ |
|
|
| 649.9 |
|
| 7 | % | ||
Average2 |
|
| 693.8 |
|
|
| 702.0 |
|
| (1 | %) |
| 683.2 |
|
| 2 | % | |||||||||||
Net flows |
|
| (12.3 | ) |
|
| (12.8 | ) |
|
|
| (7.3 | ) |
|
|
Total assets under management (“AUM”) were $698.3 billion at December 31, 2019, up $5.7 billion or 1% during the quarter due to $18.0 billion of net market change, distributions and other, partially offset by $12.3 billion of net outflows.
Cash and cash equivalents and investments were $7.8 billion at December 31, 2019, as compared to $7.4 billion at September 30, 2019. Including the Company’s direct investments in consolidated investment products, cash and cash equivalents and investments were $8.6 billion at December 31, 2019, as compared to $8.5 billion at September 30, 2019. Total stockholders’ equity was $10.8 billion at December 31, 2019, as compared to $10.6 billion at September 30, 2019. The Company had 497.6 million shares of common stock outstanding at December 31, 2019, as compared to 499.3 million shares outstanding at September 30, 2019. The Company repurchased 4.6 million shares of its common stock for a total cost of $123.6 million during the quarter ended December 31, 2019.
Conference Call Information
A commentary on the results by Chairman and CEO Greg Johnson, Executive Vice President and CFO Matthew Nicholls and President and COO Jennifer Johnson will be available today at approximately 8:30 a.m. Eastern Time. Access to the commentary will be available via investors.franklinresources.com.
Johnson, Nicholls and Johnson will also lead a live teleconference today at 11:00 a.m. Eastern Time to answer questions of a material nature. Access to the teleconference will be available via investors.franklinresources.com or by dialing (877) 407-8293 in the U.S. and Canada or (201) 689-8349 internationally. A replay of the teleconference can also be accessed by calling (877) 660-6853 in the U.S. and Canada or (201) 612-7415 internationally using access code 13697876, after 2:00 p.m. Eastern Time on January 30, 2020 through March 1, 2020.
Analysts and investors are encouraged to review the Company’s recent filings with the U.S. Securities and Exchange Commission and to contact Investor Relations at (650) 312-4091 before the live teleconference for any clarifications or questions related to the earnings release or commentary.
FRANKLIN RESOURCES, INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
Unaudited | ||||||||||||||||
(in millions, except per share data and AUM) |
| Three Months Ended December 31, |
| % Change | ||||||||||||
| 2019 |
| 2018 |
| ||||||||||||
Operating Revenues |
|
|
|
|
|
| ||||||||||
Investment management fees |
| $ |
| 979.7 |
|
| $ |
| 971.8 |
|
| 1 | % | |||
Sales and distribution fees |
|
| 351.5 |
|
|
| 354.8 |
|
| (1 | %) | |||||
Shareholder servicing fees |
|
| 50.0 |
|
|
| 55.1 |
|
| (9 | %) | |||||
Other |
|
| 31.5 |
|
|
| 29.8 |
|
| 6 | % | |||||
Total operating revenues |
|
| 1,412.7 |
|
|
| 1,411.5 |
|
| 0 | % | |||||
Operating Expenses |
|
|
|
|
|
| ||||||||||
Sales, distribution and marketing |
|
| 443.9 |
|
|
| 444.5 |
|
| 0 | % | |||||
Compensation and benefits |
|
| 389.4 |
|
|
| 355.0 |
|
| 10 | % | |||||
Information systems and technology |
|
| 62.5 |
|
|
| 60.9 |
|
| 3 | % | |||||
Occupancy |
|
| 34.5 |
|
|
| 31.2 |
|
| 11 | % | |||||
General, administrative and other |
|
| 89.7 |
|
|
| 108.4 |
|
| (17 | %) | |||||
Total operating expenses |
|
| 1,020.0 |
|
|
| 1,000.0 |
|
| 2 | % | |||||
Operating Income |
|
| 392.7 |
|
|
| 411.5 |
|
| (5 | %) | |||||
Other Income (Expenses) |
|
|
|
|
|
| ||||||||||
Investment and other income (losses), net |
|
| 59.6 |
|
|
| (59.1 | ) |
| NM | ||||||
Interest expense |
|
| (6.7 | ) |
|
| (6.4 | ) |
| 5 | % | |||||
Other income (expenses), net |
|
| 52.9 |
|
|
| (65.5 | ) |
| NM | ||||||
Income before taxes |
|
| 445.6 |
|
|
| 346.0 |
|
| 29 | % | |||||
Taxes on income |
|
| 97.5 |
|
|
| 86.0 |
|
| 13 | % | |||||
Net income |
|
| 348.1 |
|
|
| 260.0 |
|
| 34 | % | |||||
Less: net income (loss) attributable to |
|
|
|
|
|
| ||||||||||
Redeemable noncontrolling interests |
|
| 9.0 |
|
|
| (15.4 | ) |
| NM | ||||||
Nonredeemable noncontrolling interests |
|
| (11.4 | ) |
|
| (0.5 | ) |
| NM | ||||||
Net Income Attributable to Franklin Resources, Inc. |
| $ |
| 350.5 |
|
| $ |
| 275.9 |
|
| 27 | % | |||
|
|
|
|
|
|
| ||||||||||
Earnings per Share |
|
|
|
|
|
| ||||||||||
Basic |
| $ |
| 0.70 |
|
| $ |
| 0.54 |
|
| 30 | % | |||
Diluted |
|
| 0.70 |
|
|
| 0.54 |
|
| 30 | % | |||||
Dividends Declared per Share |
| $ |
| 0.27 |
|
| $ |
| 0.26 |
|
| 4 | % | |||
|
|
|
|
|
|
| ||||||||||
Average Shares Outstanding |
|
|
|
|
|
| ||||||||||
Basic |
|
| 494.7 |
|
|
| 510.3 |
|
| (3 | %) | |||||
Diluted |
|
| 495.3 |
|
|
| 510.8 |
|
| (3 | %) | |||||
|
|
|
|
|
|
| ||||||||||
Operating Margin |
|
| 27.8 | % |
|
| 29.2 | % |
|
| ||||||
|
|
|
|
|
|
| ||||||||||
AUM (in billions) |
|
|
|
|
|
| ||||||||||
Ending |
| $ |
| 698.3 |
|
| $ |
| 649.9 |
|
| 7 | % | |||
Average |
|
| 693.8 |
|
|
| 683.2 |
|
| 2 | % | |||||
Net flows |
|
| (12.3 | ) |
|
| (7.3 | ) |
|
|
FRANKLIN RESOURCES, INC. | ||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||||
(in millions, except per share data) |
| Three Months Ended |
| % Change |
| Three Months Ended | ||||||||||||||||||||||||
| 31-Dec-19 |
| 30-Sep-19 |
|
| 30-Jun-19 |
| 31-Mar-19 |
| 31-Dec-18 | ||||||||||||||||||||
Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Investment management fees |
| $ |
| 979.7 |
|
| $ |
| 1,001.6 |
|
| (2 | %) |
| $ |
| 1,019.4 |
|
| $ |
| 992.4 |
|
| $ |
| 971.8 |
| ||
Sales and distribution fees |
|
| 351.5 |
|
|
| 363.8 |
|
| (3 | %) |
|
| 367.5 |
|
|
| 358.5 |
|
|
| 354.8 |
| |||||||
Shareholder servicing fees |
|
| 50.0 |
|
|
| 51.4 |
|
| (3 | %) |
|
| 52.7 |
|
|
| 57.1 |
|
|
| 55.1 |
| |||||||
Other |
|
| 31.5 |
|
|
| 35.7 |
|
| (12 | %) |
|
| 37.1 |
|
|
| 25.8 |
|
|
| 29.8 |
| |||||||
Total operating revenues |
|
| 1,412.7 |
|
|
| 1,452.5 |
|
| (3 | %) |
|
| 1,476.7 |
|
|
| 1,433.8 |
|
|
| 1,411.5 |
| |||||||
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Sales, distribution and marketing |
|
| 443.9 |
|
|
| 463.3 |
|
| (4 | %) |
|
| 462.4 |
|
|
| 449.4 |
|
|
| 444.5 |
| |||||||
Compensation and benefits |
|
| 389.4 |
|
|
| 382.4 |
|
| 2 | % |
|
| 437.7 |
|
|
| 409.6 |
|
|
| 355.0 |
| |||||||
Information systems and technology |
|
| 62.5 |
|
|
| 69.8 |
|
| (10 | %) |
|
| 65.7 |
|
|
| 62.1 |
|
|
| 60.9 |
| |||||||
Occupancy |
|
| 34.5 |
|
|
| 38.8 |
|
| (11 | %) |
|
| 32.2 |
|
|
| 31.4 |
|
|
| 31.2 |
| |||||||
General, administrative and other |
|
| 89.7 |
|
|
| 106.7 |
|
| (16 | %) |
|
| 103.8 |
|
|
| 101.8 |
|
|
| 108.4 |
| |||||||
Total operating expenses |
|
| 1,020.0 |
|
|
| 1,061.0 |
|
| (4 | %) |
|
| 1,101.8 |
|
|
| 1,054.3 |
|
|
| 1,000.0 |
| |||||||
Operating Income |
|
| 392.7 |
|
|
| 391.5 |
|
| 0 | % |
|
| 374.9 |
|
|
| 379.5 |
|
|
| 411.5 |
| |||||||
Other Income (Expenses) |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Investment and other income (losses), net |
|
| 59.6 |
|
|
| 11.3 |
|
| 427 | % |
|
| 44.2 |
|
|
| 118.7 |
|
|
| (59.1 | ) | |||||||
Interest expense |
|
| (6.7 | ) |
|
| (7.0 | ) |
| (4 | %) |
|
| (5.6 | ) |
|
| (5.7 | ) |
|
| (6.4 | ) | |||||||
Other income (expenses), net |
|
| 52.9 |
|
|
| 4.3 |
|
| NM |
|
| 38.6 |
|
|
| 113.0 |
|
|
| (65.5 | ) | ||||||||
Income before taxes |
|
| 445.6 |
|
|
| 395.8 |
|
| 13 | % |
|
| 413.5 |
|
|
| 492.5 |
|
|
| 346.0 |
| |||||||
Taxes on income3 |
|
| 97.5 |
|
|
| 86.5 |
|
| 13 | % |
|
| 158.9 |
|
|
| 110.9 |
|
|
| 86.0 |
| |||||||
Net income |
|
| 348.1 |
|
|
| 309.3 |
|
| 13 | % |
|
| 254.6 |
|
|
| 381.6 |
|
|
| 260.0 |
| |||||||
Less: net income (loss) attributable to |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Redeemable noncontrolling interests |
|
| 9.0 |
|
| — |
|
| NM |
|
| 0.1 |
|
|
| 21.5 |
|
|
| (15.4 | ) | |||||||||
Nonredeemable noncontrolling interests |
|
| (11.4 | ) |
|
| 2.9 |
|
| NM |
|
| 8.6 |
|
|
| (7.4 | ) |
|
| (0.5 | ) | ||||||||
Net Income Attributable to Franklin Resources, Inc. |
| $ |
| 350.5 |
|
| $ |
| 306.4 |
|
| 14 | % |
| $ |
| 245.9 |
|
| $ |
| 367.5 |
|
| $ |
| 275.9 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Earnings per Share |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Basic |
| $ |
| 0.70 |
|
| $ |
| 0.61 |
|
| 15 | % |
| $ |
| 0.48 |
|
| $ |
| 0.72 |
|
| $ |
| 0.54 |
| ||
Diluted |
|
| 0.70 |
|
|
| 0.61 |
|
| 15 | % |
|
| 0.48 |
|
|
| 0.72 |
|
|
| 0.54 |
| |||||||
Dividends Declared per Share |
| $ |
| 0.27 |
|
| $ |
| 0.26 |
|
| 4 | % |
| $ |
| 0.26 |
|
| $ |
| 0.26 |
|
| $ |
| 0.26 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Basic |
|
| 494.7 |
|
|
| 497.9 |
|
| (1 | %) |
|
| 501.6 |
|
|
| 504.7 |
|
|
| 510.3 |
| |||||||
Diluted |
|
| 495.3 |
|
|
| 498.8 |
|
| (1 | %) |
|
| 502.3 |
|
|
| 505.1 |
|
|
| 510.8 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Operating Margin |
|
| 27.8 | % |
|
| 27.0 | % |
|
|
|
| 25.4 | % |
|
| 26.5 | % |
|
| 29.2 | % |
AUM AND FLOWS | |||||||||||||||
(in billions) |
| Three Months Ended December 31, |
| % Change | |||||||||||
| 2019 |
| 2018 |
| |||||||||||
Beginning AUM |
| $ |
| 692.6 |
|
| $ |
| 717.1 |
|
| (3 | %) | ||
Long-term sales |
|
| 22.7 |
|
|
| 21.7 |
|
| 5 | % | ||||
Long-term redemptions |
|
| (45.7 | ) |
|
| (42.4 | ) |
| 8 | % | ||||
Long-term net exchanges |
|
| (0.1 | ) |
|
| (0.5 | ) |
| (80 | %) | ||||
Long-term reinvested distributions |
|
| 10.8 |
|
|
| 13.9 |
|
| (22 | %) | ||||
Net flows |
|
| (12.3 | ) |
|
| (7.3 | ) |
| 68 | % | ||||
Net market change, distributions and other4 |
|
| 18.0 |
|
|
| (59.9 | ) |
| NM | |||||
Ending AUM |
| $ |
| 698.3 |
|
| $ |
| 649.9 |
|
| 7 | % |
AUM BY INVESTMENT OBJECTIVE | ||||||||||||||||||||||||||||||
(in billions) |
| 31-Dec-19 |
| 30-Sep-19 |
| % Change |
| 30-Jun-19 |
| 31-Mar-19 |
| 31-Dec-18 | ||||||||||||||||||
Equity |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Global/international |
| $ |
| 163.5 |
|
| $ |
| 158.4 |
|
| 3 | % |
| $ |
| 169.8 |
|
| $ |
| 174.4 |
|
| $ |
| 166.0 |
| ||
United States |
|
| 117.0 |
|
|
| 112.1 |
|
| 4 | % |
|
| 112.4 |
|
|
| 109.5 |
|
|
| 97.1 |
| |||||||
Total equity |
|
| 280.5 |
|
|
| 270.5 |
|
| 4 | % |
|
| 282.2 |
|
|
| 283.9 |
|
|
| 263.1 |
| |||||||
Multi-Asset/Balanced |
|
| 136.5 |
|
|
| 134.3 |
|
| 2 | % |
|
| 136.0 |
|
|
| 134.7 |
|
|
| 124.8 |
| |||||||
Fixed Income |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Tax-free |
|
| 66.7 |
|
|
| 66.3 |
|
| 1 | % |
|
| 65.0 |
|
|
| 63.4 |
|
|
| 62.0 |
| |||||||
Taxable |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Global/international |
|
| 136.7 |
|
|
| 144.6 |
|
| (5 | %) |
|
| 154.9 |
|
|
| 152.5 |
|
|
| 147.7 |
| |||||||
United States |
|
| 67.5 |
|
|
| 67.4 |
|
| 0 | % |
|
| 67.9 |
|
|
| 68.9 |
|
|
| 42.2 |
| |||||||
Total fixed income |
|
| 270.9 |
|
|
| 278.3 |
|
| (3 | %) |
|
| 287.8 |
|
|
| 284.8 |
|
|
| 251.9 |
| |||||||
Cash Management |
|
| 10.4 |
|
|
| 9.5 |
|
| 9 | % |
|
| 9.2 |
|
|
| 8.9 |
|
|
| 10.1 |
| |||||||
Total AUM |
| $ |
| 698.3 |
|
| $ |
| 692.6 |
|
| 1 | % |
| $ |
| 715.2 |
|
| $ |
| 712.3 |
|
| $ |
| 649.9 |
| ||
Average AUM for the Three-Month Period | $ |
| 693.8 |
|
| $ |
| 702.0 |
|
| (1 | %) |
| $ |
| 710.8 |
|
| $ |
| 688.6 |
|
| $ |
| 683.2 |
|
AUM AND FLOWS - UNITED STATES AND INTERNATIONAL5 | |||||||||||||||||||||||||
|
| As of and for the Three Months Ended | |||||||||||||||||||||||
(in billions) |
| 31-Dec-19 |
| % of Total |
| 30-Sep-19 |
| % of Total |
| 31-Dec-18 |
| % of Total | |||||||||||||
Long-Term Sales |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
United States |
| $ |
| 12.9 |
|
| 57 | % |
| $ |
| 13.1 |
|
| 56 | % |
| $ |
| 12.1 |
|
| 56 | % | |
International |
|
| 9.8 |
|
| 43 | % |
|
| 10.4 |
|
| 44 | % |
|
| 9.6 |
|
| 44 | % | ||||
Total long-term sales |
| $ |
| 22.7 |
|
| 100 | % |
| $ |
| 23.5 |
|
| 100 | % |
| $ |
| 21.7 |
|
| 100 | % | |
Long-Term Redemptions |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
United States |
| $ |
| (28.0 | ) |
| 61 | % |
| $ |
| (23.0 | ) |
| 59 | % |
| $ |
| (26.4 | ) |
| 62 | % | |
International |
|
| (17.7 | ) |
| 39 | % |
|
| (16.1 | ) |
| 41 | % |
|
| (16.0 | ) |
| 38 | % | ||||
Total long-term redemptions |
| $ |
| (45.7 | ) |
| 100 | % |
| $ |
| (39.1 | ) |
| 100 | % |
| $ |
| (42.4 | ) |
| 100 | % | |
AUM |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
United States |
| $ |
| 481.0 |
|
| 69 | % |
| $ |
| 477.9 |
|
| 69 | % |
| $ |
| 433.7 |
|
| 67 | % | |
International |
|
| 217.3 |
|
| 31 | % |
|
| 214.7 |
|
| 31 | % |
|
| 216.2 |
|
| 33 | % | ||||
Total AUM |
| $ |
| 698.3 |
|
| 100 | % |
| $ |
| 692.6 |
|
| 100 | % |
| $ |
| 649.9 |
|
| 100 | % |
AUM AND FLOWS BY INVESTMENT OBJECTIVE | ||||||||||||||||||||||||||||||||
(in billions) |
| Equity |
| Multi Asset/ Balanced |
| Fixed Income |
| Cash Management |
| Total | ||||||||||||||||||||||
for the three months ended December 31, 2019 |
| Global/ International |
| United States |
|
| Tax-Free |
| Taxable Global/ International |
| Taxable United States |
|
| |||||||||||||||||||
AUM at October 1, 2019 |
| $ | 158.4 |
|
| $ | 112.1 |
|
| $ | 134.3 |
|
| $ | 66.3 |
|
| $ | 144.6 |
|
| $ | 67.4 |
|
| $ | 9.5 |
|
| $ | 692.6 |
|
Long-term sales |
| 3.8 |
|
| 4.4 |
|
| 3.5 |
|
| 2.0 |
|
| 6.6 |
|
| 2.4 |
|
| — |
|
| 22.7 |
| ||||||||
Long-term redemptions |
| (10.7 | ) |
| (7.6 | ) |
| (6.2 | ) |
| (1.9 | ) |
| (16.2 | ) |
| (3.1 | ) |
| — |
|
| (45.7 | ) | ||||||||
Long-term net exchanges |
| (0.2 | ) |
| 0.1 |
|
| 0.1 |
|
| 0.1 |
|
| (0.7 | ) |
| 0.5 |
|
| — |
|
| (0.1 | ) | ||||||||
Long-term reinvested distributions |
| 2.4 |
|
| 4.8 |
|
| 1.9 |
|
| 0.4 |
|
| 1.0 |
|
| 0.3 |
|
| — |
|
| 10.8 |
| ||||||||
Net flows |
| (4.7 | ) |
| 1.7 |
|
| (0.7 | ) |
| 0.6 |
|
| (9.3 | ) |
| 0.1 |
|
| — |
|
| (12.3 | ) | ||||||||
Net market change, distributions and other4 |
| 9.8 |
|
| 3.2 |
|
| 2.9 |
|
| (0.2 | ) |
| 1.4 |
|
| — |
|
| 0.9 |
|
| 18.0 |
| ||||||||
AUM at December 31, 2019 | $ | 163.5 |
|
| $ | 117.0 |
|
| $ | 136.5 |
|
| $ | 66.7 |
|
| $ | 136.7 |
|
| $ | 67.5 |
|
| $ | 10.4 |
|
| $ | 698.3 |
|
(in billions) |
| Equity |
| Multi Asset/ Balanced |
| Fixed Income |
| Cash Management |
| Total | ||||||||||||||||||||||
for the three months ended September 30, 2019 |
| Global/ International |
| United States |
|
| Tax-Free |
| Taxable Global/ International |
| Taxable United States |
|
| |||||||||||||||||||
AUM at July 1, 2019 |
| $ | 169.8 |
|
| $ | 112.4 |
|
| $ | 136.0 |
|
| $ | 65.0 |
|
| $ | 154.9 |
|
| $ | 67.9 |
|
| $ | 9.2 |
|
| $ | 715.2 |
|
Long-term sales |
| 3.9 |
|
| 4.6 |
|
| 2.5 |
|
| 2.0 |
|
| 8.2 |
|
| 2.3 |
|
| — |
|
| 23.5 |
| ||||||||
Long-term redemptions |
| (11.6 | ) |
| (5.5 | ) |
| (4.5 | ) |
| (1.9 | ) |
| (12.1 | ) |
| (3.5 | ) |
| — |
|
| (39.1 | ) | ||||||||
Long-term net exchanges |
| (0.3 | ) |
| 0.1 |
|
| — |
|
| 0.1 |
|
| (0.3 | ) |
| 0.2 |
|
| — |
|
| (0.2 | ) | ||||||||
Long-term reinvested distributions |
| 0.2 |
|
| 0.1 |
|
| 1.1 |
|
| 0.4 |
|
| 1.0 |
|
| 0.2 |
|
| — |
|
| 3.0 |
| ||||||||
Net flows |
| (7.8 | ) |
| (0.7 | ) |
| (0.9 | ) |
| 0.6 |
|
| (3.2 | ) |
| (0.8 | ) |
| — |
|
| (12.8 | ) | ||||||||
Net market change, distributions and other4 |
| (3.6 | ) |
| 0.4 |
|
| (0.8 | ) |
| 0.7 |
|
| (7.1 | ) |
| 0.3 |
|
| 0.3 |
|
| (9.8 | ) | ||||||||
AUM at September 30, 2019 | $ | 158.4 |
|
| $ | 112.1 |
|
| $ | 134.3 |
|
| $ | 66.3 |
|
| $ | 144.6 |
|
| $ | 67.4 |
|
| $ | 9.5 |
|
| $ | 692.6 |
|
(in billions) |
| Equity |
| Multi Asset/ Balanced |
| Fixed Income |
| Cash Management |
| Total | ||||||||||||||||||||||
for the three months ended December 31, 2018 |
| Global/ International |
| United States |
|
| Tax-Free |
| Taxable Global/ International |
| Taxable United States |
|
| |||||||||||||||||||
AUM at October 1, 2018 |
| $ | 194.4 |
|
| $ | 115.2 |
|
| $ | 138.9 |
|
| $ | 63.9 |
|
| $ | 150.6 |
|
| $ | 44.8 |
|
| $ | 9.3 |
|
| $ | 717.1 |
|
Long-term sales |
| 4.3 |
|
| 4.0 |
|
| 2.8 |
|
| 1.6 |
|
| 7.4 |
|
| 1.6 |
|
| — |
|
| 21.7 |
| ||||||||
Long-term redemptions |
| (9.7 | ) |
| (6.3 | ) |
| (6.8 | ) |
| (3.9 | ) |
| (12.1 | ) |
| (3.6 | ) |
| — |
|
| (42.4 | ) | ||||||||
Long-term net exchanges |
| (0.4 | ) |
| 0.1 |
|
| (0.2 | ) |
| (0.2 | ) |
| 0.2 |
|
| — |
|
| — |
|
| (0.5 | ) | ||||||||
Long-term reinvested distributions |
| 4.4 |
|
| 5.0 |
|
| 1.9 |
|
| 0.5 |
|
| 1.8 |
|
| 0.3 |
|
| — |
|
| 13.9 |
| ||||||||
Net flows |
| (1.4 | ) |
| 2.8 |
|
| (2.3 | ) |
| (2.0 | ) |
| (2.7 | ) |
| (1.7 | ) |
| — |
|
| (7.3 | ) | ||||||||
Net market change, distributions and other4 |
| (27.0 | ) |
| (20.9 | ) |
| (11.8 | ) |
| 0.1 |
|
| (0.2 | ) |
| (0.9 | ) |
| 0.8 |
|
| (59.9 | ) | ||||||||
AUM at December 31, 2018 | $ | 166.0 |
|
| $ | 97.1 |
|
| $ | 124.8 |
|
| $ | 62.0 |
|
| $ | 147.7 |
|
| $ | 42.2 |
|
| $ | 10.1 |
|
| $ | 649.9 |
|
Notes
Franklin Resources, Inc. is a global investment management organization operating together with its subsidiaries as Franklin Templeton. Franklin Templeton’s goal is to deliver better outcomes by providing global and domestic investment management to retail, institutional and sovereign wealth clients in over 170 countries. Through specialized teams, the Company has expertise across all asset classes, including equity, fixed income, alternatives and custom multi-asset solutions. The Company’s more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With employees in over 30 countries, the California-based company has more than 70 years of investment experience and $698.3 billion in AUM as of December 31, 2019. The Company posts information that may be significant for investors in the Investor Relations and News Center sections of its website, and encourages investors to consult those sections regularly. For more information, please visit investors.franklinresources.com.
Forward-Looking Statements
Statements in this press release regarding Franklin Resources, Inc. and its subsidiaries, which are not historical facts, are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this press release, words or phrases generally written in the future tense and/or preceded by words such as “will,” “may,” “could,” “expect,” “believe,” “anticipate,” “intend,” “plan,” “seek,” “estimate” or other similar words are forward-looking statements.
Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, that could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. While forward-looking statements are our best prediction at the time that they are made, you should not rely on them and are cautioned against doing so. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. They are neither statements of historical fact nor guarantees or assurances of future performance.
These and other risks, uncertainties and other important factors are described in more detail in our recent filings with the U.S. Securities and Exchange Commission, including, without limitation, in Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 and our subsequent Quarterly Report on Form 10-Q:
Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200130005452/en/
Franklin Resources, Inc. Investor Relations: Brian Sevilla (650) 312-4091 Media Relations: Matt Walsh (650) 312-2245 investors.franklinresources.com
Source: Franklin Resources, Inc.