Franklin Resources, Inc. (the “Company”) [NYSE: BEN] today
announced net income1 of $367.5 million or $0.72 per diluted
share for the quarter ended March 31, 2019, as compared to
$275.9 million or $0.54 per diluted share for the previous
quarter and $443.2 million or $0.78 per diluted share for the
quarter ended March 31, 2018.
“We’re pleased to see continued performance
improvements for a number of our key investment strategies,” said
Greg Johnson, Chairman and CEO of Franklin Resources,
Inc. “Against that backdrop, we’re also encouraged to see
flows improve, most notably in the fixed income and multi-asset
investment objectives. Gross inflows increased 24% over the prior
quarter, while redemptions slowed to their lowest level since 2011.
As we look to the future, we continue to take measured and
deliberate steps to redistribute savings from our expense
management efforts in order to further invest our resources where
they will have the greatest impact, including multi-asset
solutions, distribution, alternatives, and technology that helps
drive strong investment performance.”
| |
|
Quarter Ended |
|
% Change |
|
Quarter Ended |
|
% Change |
|
|
|
31-Mar-19 |
|
31-Dec-18 |
|
Qtr. vs. Qtr. |
31-Mar-18 |
|
Year vs. Year |
| Financial
Results |
|
|
|
|
|
|
|
|
|
| (in millions, except
per share data) |
|
|
|
|
|
|
|
|
|
| Operating revenues |
|
$ |
1,433.8 |
|
|
$ |
1,411.5 |
|
|
2 |
% |
$ |
1,617.8 |
|
|
(11 |
%) |
| Operating income |
|
379.5 |
|
|
411.5 |
|
|
(8 |
%) |
555.7 |
|
|
(32 |
%) |
| Operating margin |
|
26.5 |
% |
|
29.2 |
% |
|
|
34.3 |
% |
|
|
| |
|
|
|
|
|
|
|
|
|
| Net income ¹ |
|
$ |
367.5 |
|
|
$ |
275.9 |
|
|
33 |
% |
$ |
443.2 |
|
|
(17 |
%) |
| Diluted earnings per
share |
|
0.72 |
|
|
0.54 |
|
|
33 |
% |
0.78 |
|
|
(8 |
%) |
| |
|
|
|
|
|
|
|
|
|
| Assets Under
Management |
|
|
|
|
|
|
|
|
|
| (in billions) |
|
|
|
|
|
|
|
|
|
| Ending |
|
$ |
712.3 |
|
|
$ |
649.9 |
|
|
10 |
% |
$ |
737.5 |
|
|
(3 |
%) |
| Average 2 |
|
688.6 |
|
|
683.2 |
|
|
1 |
% |
751.8 |
|
|
(8 |
%) |
| Net flows |
|
(6.3 |
) |
|
(7.3 |
) |
|
|
(10.0 |
) |
|
|
Total assets under management (“AUM”) were
$712.3 billion at March 31, 2019, up $62.4 billion
or 10% during the quarter due to $42.3 billion of net market
change, distributions and other, and $26.4 billion from the
acquisition of Benefit Street Partners L.L.C., partially offset by
$6.3 billion of net outflows.
Cash and cash equivalents and investments were
$7.2 billion at March 31, 2019, as compared to
$8.0 billion at September 30, 2018. Total stockholders’
equity was $10.5 billion at March 31, 2019, as compared
to $10.2 billion at September 30, 2018. The Company had
507.7 million shares of common stock outstanding at
March 31, 2019, as compared to 519.1 million shares
outstanding at September 30, 2018. During the quarter ended
March 31, 2019, the Company repurchased 4.6 million
shares of its common stock for a total cost of
$144.7 million.
Conference Call Information
A commentary on the results by Chairman and CEO
Greg Johnson and CFO and Executive Vice President Ken Lewis will be
available today at approximately 8:30 a.m. Eastern Time.
Access to the commentary will be available via
investors.franklinresources.com.
Johnson and Lewis 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 13689373, after
2:00 p.m. Eastern Time on April 26, 2019 through
May 26, 2019.
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 March 31, |
|
%Change |
|
Six Months Ended March 31, |
|
% Change |
| |
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
| Operating
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| Investment management
fees |
|
$ |
992.4 |
|
|
$ |
1,117.1 |
|
|
(11 |
%) |
|
$ |
1,964.2 |
|
|
$ |
2,230.7 |
|
|
(12 |
%) |
| Sales and distribution
fees |
|
358.5 |
|
|
409.8 |
|
|
(13 |
%) |
|
713.3 |
|
|
827.6 |
|
|
(14 |
%) |
| Shareholder servicing
fees |
|
57.1 |
|
|
61.3 |
|
|
(7 |
%) |
|
112.2 |
|
|
116.2 |
|
|
(3 |
%) |
| Other |
|
25.8 |
|
|
29.6 |
|
|
(13 |
%) |
|
55.6 |
|
|
58.8 |
|
|
(5 |
%) |
| Total
operating revenues |
|
1,433.8 |
|
|
1,617.8 |
|
|
(11 |
%) |
|
2,845.3 |
|
|
3,233.3 |
|
|
(12 |
%) |
| Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| Sales, distribution and
marketing |
|
449.4 |
|
|
521.5 |
|
|
(14 |
%) |
|
893.9 |
|
|
1,050.2 |
|
|
(15 |
%) |
| Compensation and
benefits |
|
409.6 |
|
|
355.5 |
|
|
15 |
% |
|
764.6 |
|
|
688.0 |
|
|
11 |
% |
| Information systems and
technology |
|
62.1 |
|
|
58.1 |
|
|
7 |
% |
|
123.0 |
|
|
113.1 |
|
|
9 |
% |
| Occupancy |
|
31.4 |
|
|
34.1 |
|
|
(8 |
%) |
|
62.6 |
|
|
63.5 |
|
|
(1 |
%) |
| General, administrative
and other |
|
101.8 |
|
|
92.9 |
|
|
10 |
% |
|
210.2 |
|
|
181.7 |
|
|
16 |
% |
| Total
operating expenses |
|
1,054.3 |
|
|
1,062.1 |
|
|
(1 |
%) |
|
2,054.3 |
|
|
2,096.5 |
|
|
(2 |
%) |
| Operating
Income |
|
379.5 |
|
|
555.7 |
|
|
(32 |
%) |
|
791.0 |
|
|
1,136.8 |
|
|
(30 |
%) |
| Other Income
(Expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
| Investment and other
income, net |
|
118.7 |
|
|
87.4 |
|
|
36 |
% |
|
59.6 |
|
|
168.7 |
|
|
(65 |
%) |
| Interest expense |
|
(5.7 |
) |
|
(10.0 |
) |
|
(43 |
%) |
|
(12.1 |
) |
|
(20.8 |
) |
|
(42 |
%) |
| Other
income, net |
|
113.0 |
|
|
77.4 |
|
|
46 |
% |
|
47.5 |
|
|
147.9 |
|
|
(68 |
%) |
| Income before
taxes |
|
492.5 |
|
|
633.1 |
|
|
(22 |
%) |
|
838.5 |
|
|
1,284.7 |
|
|
(35 |
%) |
| Taxes on income 3 |
|
110.9 |
|
|
150.2 |
|
|
(26 |
%) |
|
196.9 |
|
|
1,373.7 |
|
|
(86 |
%) |
| Net income (loss) |
|
381.6 |
|
|
482.9 |
|
|
(21 |
%) |
|
641.6 |
|
|
(89.0 |
) |
|
NM |
|
| Less: net income (loss)
attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interests |
|
21.5 |
|
|
15.2 |
|
|
41 |
% |
|
6.1 |
|
|
26.7 |
|
|
(77 |
%) |
|
Nonredeemable noncontrolling interests |
|
(7.4 |
) |
|
24.5 |
|
|
NM |
|
|
(7.9 |
) |
|
24.4 |
|
|
NM |
|
| Net Income
(Loss) Attributable to Franklin Resources, Inc. |
|
$ |
367.5 |
|
|
$ |
443.2 |
|
|
(17 |
%) |
|
$ |
643.4 |
|
|
$ |
(140.1 |
) |
|
NM |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (Loss)
per Share |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.72 |
|
|
$ |
0.79 |
|
|
(9 |
%) |
|
$ |
1.26 |
|
|
$ |
(0.29 |
) |
|
NM |
|
| Diluted |
|
0.72 |
|
|
0.78 |
|
|
(8 |
%) |
|
1.25 |
|
|
(0.29 |
) |
|
NM |
|
| Dividends
Declared per Share |
|
$ |
0.26 |
|
|
$ |
3.23 |
|
|
(92 |
%) |
|
$ |
0.52 |
|
|
$ |
3.46 |
|
|
(85 |
%) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Average Shares
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
504.7 |
|
|
545.0 |
|
|
(7 |
%) |
|
507.6 |
|
|
547.9 |
|
|
(7 |
%) |
| Diluted |
|
505.1 |
|
|
545.5 |
|
|
(7 |
%) |
|
508.0 |
|
|
547.9 |
|
|
(7 |
%) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
Margin |
|
26.5 |
% |
|
34.3 |
% |
|
|
|
27.8 |
% |
|
35.2 |
% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| AUM
(in billions) |
|
|
|
|
|
|
|
|
|
|
|
|
| Ending |
|
$ |
712.3 |
|
|
$ |
737.5 |
|
|
(3 |
%) |
|
$ |
712.3 |
|
|
$ |
737.5 |
|
|
(3 |
%) |
| Average |
|
688.6 |
|
|
751.8 |
|
|
(8 |
%) |
|
691.1 |
|
|
752.0 |
|
|
(8 |
%) |
| Net flows |
|
(6.3 |
) |
|
(10.0 |
) |
|
|
|
(13.6 |
) |
|
(12.3 |
) |
|
|
|
FRANKLIN RESOURCES, INC. CONSOLIDATED
STATEMENTS OF INCOME Unaudited |
| (in millions, except per share data and employees) |
|
Three Months Ended |
|
%Change |
|
Three Months Ended |
| |
31-Mar-19 |
|
31-Dec-18 |
|
|
30-Sep-18 |
|
30-Jun-18 |
|
31-Mar-18 |
| Operating
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| Investment management
fees |
|
$ |
992.4 |
|
|
$ |
971.8 |
|
|
2 |
% |
|
$ |
1,058.9 |
|
|
$ |
1,077.9 |
|
|
$ |
1,117.1 |
|
| Sales and distribution
fees |
|
358.5 |
|
|
354.8 |
|
|
1 |
% |
|
380.8 |
|
|
391.4 |
|
|
409.8 |
|
| Shareholder servicing
fees |
|
57.1 |
|
|
55.1 |
|
|
4 |
% |
|
51.8 |
|
|
53.9 |
|
|
61.3 |
|
| Other |
|
25.8 |
|
|
29.8 |
|
|
(13 |
%) |
|
35.7 |
|
|
35.4 |
|
|
29.6 |
|
| Total
operating revenues |
|
1,433.8 |
|
|
1,411.5 |
|
|
2 |
% |
|
1,527.2 |
|
|
1,558.6 |
|
|
1,617.8 |
|
| Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| Sales, distribution and
marketing |
|
449.4 |
|
|
444.5 |
|
|
1 |
% |
|
489.7 |
|
|
499.8 |
|
|
521.5 |
|
| Compensation and
benefits |
|
409.6 |
|
|
355.0 |
|
|
15 |
% |
|
345.1 |
|
|
357.5 |
|
|
355.5 |
|
| Information systems and
technology |
|
62.1 |
|
|
60.9 |
|
|
2 |
% |
|
68.3 |
|
|
62.5 |
|
|
58.1 |
|
| Occupancy |
|
31.4 |
|
|
31.2 |
|
|
1 |
% |
|
34.6 |
|
|
30.5 |
|
|
34.1 |
|
| General, administrative
and other |
|
101.8 |
|
|
108.4 |
|
|
(6 |
%) |
|
110.8 |
|
|
105.2 |
|
|
92.9 |
|
| Total
operating expenses |
|
1,054.3 |
|
|
1,000.0 |
|
|
5 |
% |
|
1,048.5 |
|
|
1,055.5 |
|
|
1,062.1 |
|
| Operating
Income |
|
379.5 |
|
|
411.5 |
|
|
(8 |
%) |
|
478.7 |
|
|
503.1 |
|
|
555.7 |
|
| Other Income
(Expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
| Investment and other
income (losses), net |
|
118.7 |
|
|
(59.1 |
) |
|
NM |
|
|
10.4 |
|
|
(33.8 |
) |
|
87.4 |
|
| Interest expense |
|
(5.7 |
) |
|
(6.4 |
) |
|
(11 |
%) |
|
(5.8 |
) |
|
(22.1 |
) |
|
(10.0 |
) |
| Other
income (expenses), net |
|
113.0 |
|
|
(65.5 |
) |
|
NM |
|
|
4.6 |
|
|
(55.9 |
) |
|
77.4 |
|
| Income before
taxes |
|
492.5 |
|
|
346.0 |
|
|
42 |
% |
|
483.3 |
|
|
447.2 |
|
|
633.1 |
|
| Taxes on income 3 |
|
110.9 |
|
|
86.0 |
|
|
29 |
% |
|
7.0 |
|
|
91.8 |
|
|
150.2 |
|
| Net income |
|
381.6 |
|
|
260.0 |
|
|
47 |
% |
|
476.3 |
|
|
355.4 |
|
|
482.9 |
|
| Less: net income (loss)
attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interests |
|
21.5 |
|
|
(15.4 |
) |
|
NM |
|
|
5.5 |
|
|
(45.0 |
) |
|
15.2 |
|
|
Nonredeemable noncontrolling interests |
|
(7.4 |
) |
|
(0.5 |
) |
|
NM |
|
|
(31.7 |
) |
|
(1.6 |
) |
|
24.5 |
|
| Net Income
Attributable to Franklin Resources, Inc. |
|
$ |
367.5 |
|
|
$ |
275.9 |
|
|
33 |
% |
|
$ |
502.5 |
|
|
$ |
402.0 |
|
|
$ |
443.2 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per
Share |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.72 |
|
|
$ |
0.54 |
|
|
33 |
% |
|
$ |
0.96 |
|
|
$ |
0.75 |
|
|
$ |
0.79 |
|
| Diluted |
|
0.72 |
|
|
0.54 |
|
|
33 |
% |
|
0.96 |
|
|
0.75 |
|
|
0.78 |
|
| Dividends
Declared per Share |
|
$ |
0.26 |
|
|
$ |
0.26 |
|
|
0 |
% |
|
$ |
0.23 |
|
|
$ |
0.23 |
|
|
$ |
3.23 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Average Shares
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
504.7 |
|
|
510.3 |
|
|
(1 |
%) |
|
520.9 |
|
|
533.0 |
|
|
545.0 |
|
| Diluted |
|
505.1 |
|
|
510.8 |
|
|
(1 |
%) |
|
521.5 |
|
|
533.5 |
|
|
545.5 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
Margin |
|
26.5 |
% |
|
29.2 |
% |
|
|
|
31.3 |
% |
|
32.3 |
% |
|
34.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees |
|
9,893 |
|
|
9,717 |
|
|
2 |
% |
|
9,691 |
|
|
9,784 |
|
|
9,448 |
|
AUM AND FLOWS
| (in billions) |
|
Three Months Ended March 31, |
|
%Change |
|
Six Months Ended March 31, |
|
% Change |
| |
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
| Beginning AUM |
|
$ |
649.9 |
|
|
$ |
753.8 |
|
|
(14 |
%) |
|
$ |
717.1 |
|
|
$ |
753.2 |
|
|
(5 |
%) |
| Long-term sales |
|
27.0 |
|
|
28.6 |
|
|
(6 |
%) |
|
48.7 |
|
|
56.7 |
|
|
(14 |
%) |
| Long-term
redemptions |
|
(36.2 |
) |
|
(41.7 |
) |
|
(13 |
%) |
|
(78.6 |
) |
|
(81.1 |
) |
|
(3 |
%) |
| Long-term net
exchanges |
|
— |
|
|
(0.1 |
) |
|
(100 |
%) |
|
(0.5 |
) |
|
(0.2 |
) |
|
150 |
% |
| Long-term reinvested
distributions |
|
2.9 |
|
|
3.2 |
|
|
(9 |
%) |
|
16.8 |
|
|
12.3 |
|
|
37 |
% |
| Net
flows |
|
(6.3 |
) |
|
(10.0 |
) |
|
(37 |
%) |
|
(13.6 |
) |
|
(12.3 |
) |
|
11 |
% |
| Acquisition |
|
26.4 |
|
|
— |
|
|
NM |
|
|
26.4 |
|
|
— |
|
|
NM |
|
| Net market change,
distributions and other 4 |
|
42.3 |
|
|
(6.3 |
) |
|
NM |
|
|
(17.6 |
) |
|
(3.4 |
) |
|
418 |
% |
| Ending
AUM |
|
$ |
712.3 |
|
|
$ |
737.5 |
|
|
(3 |
%) |
|
$ |
712.3 |
|
|
$ |
737.5 |
|
|
(3 |
%) |
AUM BY INVESTMENT OBJECTIVE
| (in
billions) |
|
31-Mar-19 |
|
31-Dec-18 |
|
% Change |
|
30-Sep-18 |
|
30-Jun-18 |
|
31-Mar-18 |
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Global/international |
|
$ |
174.4 |
|
|
$ |
166.0 |
|
|
5 |
% |
|
$ |
194.4 |
|
|
$ |
201.0 |
|
|
$ |
202.7 |
|
| United States |
|
109.5 |
|
|
97.1 |
|
|
13 |
% |
|
115.2 |
|
|
109.6 |
|
|
106.6 |
|
| Total
equity |
|
283.9 |
|
|
263.1 |
|
|
8 |
% |
|
309.6 |
|
|
310.6 |
|
|
309.3 |
|
|
Multi-Asset/Balanced |
|
134.7 |
|
|
124.8 |
|
|
8 |
% |
|
138.9 |
|
|
137.7 |
|
|
137.6 |
|
| Fixed
Income |
|
|
|
|
|
|
|
|
|
|
|
|
| Tax-free |
|
63.4 |
|
|
62.0 |
|
|
2 |
% |
|
63.9 |
|
|
65.6 |
|
|
67.0 |
|
| Taxable |
|
|
|
|
|
|
|
|
|
|
|
|
|
Global/international |
|
152.5 |
|
|
147.7 |
|
|
3 |
% |
|
150.6 |
|
|
154.5 |
|
|
165.0 |
|
| United
States |
|
68.9 |
|
|
42.2 |
|
|
63 |
% |
|
44.8 |
|
|
46.6 |
|
|
48.2 |
|
|
Total fixed income |
|
284.8 |
|
|
251.9 |
|
|
13 |
% |
|
259.3 |
|
|
266.7 |
|
|
280.2 |
|
| Cash
Management |
|
8.9 |
|
|
10.1 |
|
|
(12 |
%) |
|
9.3 |
|
|
9.1 |
|
|
10.4 |
|
| Total
AUM |
|
$ |
712.3 |
|
|
$ |
649.9 |
|
|
10 |
% |
|
$ |
717.1 |
|
|
$ |
724.1 |
|
|
$ |
737.5 |
|
|
Average AUM for the Three-Month Period |
$ |
688.6 |
|
|
$ |
683.2 |
|
|
1 |
% |
|
$ |
724.3 |
|
|
$ |
731.7 |
|
|
$ |
751.8 |
|
AUM AND FLOWS - UNITED STATES AND INTERNATIONAL
5
| |
|
As of and for the Three Months
Ended |
| (in
billions) |
|
31-Mar-19 |
|
% of Total |
|
31-Dec-18 |
|
% of Total |
|
31-Mar-18 |
|
% of Total |
| Long-Term
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
| United States |
|
$ |
14.2 |
|
|
53 |
% |
|
$ |
12.1 |
|
|
56 |
% |
|
$ |
13.6 |
|
|
48 |
% |
| International |
|
12.8 |
|
|
47 |
% |
|
9.6 |
|
|
44 |
% |
|
15.0 |
|
|
52 |
% |
|
Total long-term sales |
|
$ |
27.0 |
|
|
100 |
% |
|
$ |
21.7 |
|
|
100 |
% |
|
$ |
28.6 |
|
|
100 |
% |
| Long-Term
Redemptions |
|
|
|
|
|
|
|
|
|
|
|
|
| United States |
|
$ |
(20.6 |
) |
|
57 |
% |
|
$ |
(26.4 |
) |
|
62 |
% |
|
$ |
(24.0 |
) |
|
58 |
% |
| International |
|
(15.6 |
) |
|
43 |
% |
|
(16.0 |
) |
|
38 |
% |
|
(17.7 |
) |
|
42 |
% |
|
Total long-term redemptions |
|
$ |
(36.2 |
) |
|
100 |
% |
|
$ |
(42.4 |
) |
|
100 |
% |
|
$ |
(41.7 |
) |
|
100 |
% |
|
AUM |
|
|
|
|
|
|
|
|
|
|
|
|
| United States |
|
$ |
486.6 |
|
|
68 |
% |
|
$ |
433.7 |
|
|
67 |
% |
|
$ |
484.9 |
|
|
66 |
% |
| International |
|
225.7 |
|
|
32 |
% |
|
216.2 |
|
|
33 |
% |
|
252.6 |
|
|
34 |
% |
|
Total AUM |
|
$ |
712.3 |
|
|
100 |
% |
|
$ |
649.9 |
|
|
100 |
% |
|
$ |
737.5 |
|
|
100 |
% |
AUM AND FLOWS BY INVESTMENT
OBJECTIVE
| (in billions) |
|
Equity |
|
Multi-Asset/Balanced |
|
Fixed Income |
|
CashManagement |
|
Total |
|
for the three months ended March 31,
2019 |
|
Global/International |
|
UnitedStates |
|
|
Tax-Free |
|
TaxableGlobal/International |
|
TaxableUnitedStates |
|
|
| AUM at January 1,
2019 |
|
$ |
166.0 |
|
|
$ |
97.1 |
|
|
$ |
124.8 |
|
|
$ |
62.0 |
|
|
$ |
147.7 |
|
|
$ |
42.2 |
|
|
$ |
10.1 |
|
|
$ |
649.9 |
|
| Long-term sales |
|
5.1 |
|
|
4.1 |
|
|
3.1 |
|
|
1.8 |
|
|
11.1 |
|
|
1.8 |
|
|
— |
|
|
27.0 |
|
| Long-term
redemptions |
|
(12.0 |
) |
|
(5.8 |
) |
|
(4.4 |
) |
|
(2.2 |
) |
|
(8.6 |
) |
|
(3.2 |
) |
|
— |
|
|
(36.2 |
) |
| Long-term net
exchanges |
|
(0.2 |
) |
|
(0.1 |
) |
|
0.1 |
|
|
0.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Long-term reinvested
distributions |
|
0.1 |
|
|
— |
|
|
1.1 |
|
|
0.4 |
|
|
1.1 |
|
|
0.2 |
|
|
— |
|
|
2.9 |
|
| Net
flows |
|
(7.0 |
) |
|
(1.8 |
) |
|
(0.1 |
) |
|
0.2 |
|
|
3.6 |
|
|
(1.2 |
) |
|
— |
|
|
(6.3 |
) |
| Acquisition |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
26.4 |
|
|
— |
|
|
26.4 |
|
| Net market change,
distributions and other 4 |
|
15.4 |
|
|
14.2 |
|
|
10.0 |
|
|
1.2 |
|
|
1.2 |
|
|
1.5 |
|
|
(1.2 |
) |
|
42.3 |
|
| AUM
at March 31, 2019 |
$ |
174.4 |
|
|
$ |
109.5 |
|
|
$ |
134.7 |
|
|
$ |
63.4 |
|
|
$ |
152.5 |
|
|
$ |
68.9 |
|
|
$ |
8.9 |
|
|
$ |
712.3 |
|
| (in billions) |
|
Equity |
|
Multi-Asset/Balanced |
|
Fixed Income |
|
CashManagement |
|
Total |
|
for the three months ended December 31,
2018 |
|
Global/International |
|
UnitedStates |
|
|
Tax-Free |
|
TaxableGlobal/International |
|
TaxableUnitedStates |
|
|
| 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 other 4 |
|
(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 |
|
| (in billions) |
|
Equity |
|
Multi-Asset/Balanced |
|
Fixed Income |
|
CashManagement |
|
Total |
|
for the three months ended March 31,
2018 |
|
Global/International |
|
UnitedStates |
|
|
Tax-Free |
|
TaxableGlobal/International |
|
TaxableUnitedStates |
|
|
| AUM at January 1,
2018 |
|
$ |
212.0 |
|
|
$ |
109.4 |
|
|
$ |
142.7 |
|
|
$ |
69.4 |
|
|
$ |
163.7 |
|
|
$ |
50.0 |
|
|
$ |
6.6 |
|
|
$ |
753.8 |
|
| Long-term sales |
|
6.6 |
|
|
4.1 |
|
|
4.0 |
|
|
1.7 |
|
|
10.3 |
|
|
1.9 |
|
|
— |
|
|
28.6 |
|
| Long-term
redemptions |
|
(11.6 |
) |
|
(6.7 |
) |
|
(6.3 |
) |
|
(3.1 |
) |
|
(11.0 |
) |
|
(3.0 |
) |
|
— |
|
|
(41.7 |
) |
| Long-term net
exchanges |
|
0.1 |
|
|
0.1 |
|
|
— |
|
|
(0.2 |
) |
|
(0.1 |
) |
|
— |
|
|
— |
|
|
(0.1 |
) |
| Long-term reinvested
distributions |
|
0.4 |
|
|
— |
|
|
1.2 |
|
|
0.5 |
|
|
0.9 |
|
|
0.2 |
|
|
— |
|
|
3.2 |
|
| Net
flows |
|
(4.5 |
) |
|
(2.5 |
) |
|
(1.1 |
) |
|
(1.1 |
) |
|
0.1 |
|
|
(0.9 |
) |
|
— |
|
|
(10.0 |
) |
| Net market change,
distributions and other 4 |
|
(4.8 |
) |
|
(0.3 |
) |
|
(4.0 |
) |
|
(1.3 |
) |
|
1.2 |
|
|
(0.9 |
) |
|
3.8 |
|
|
(6.3 |
) |
| AUM
at March 31, 2018 |
$ |
202.7 |
|
|
$ |
106.6 |
|
|
$ |
137.6 |
|
|
$ |
67.0 |
|
|
$ |
165.0 |
|
|
$ |
48.2 |
|
|
$ |
10.4 |
|
|
$ |
737.5 |
|
Notes
- Net income represents net income
attributable to Franklin Resources, Inc.
- Average AUM represents simple
monthly average AUM.
- Taxes on income for the quarter
ended December 31, 2017 includes an estimated income tax
charge of $1.1 billion resulting from enactment of the Tax
Cuts and Jobs Act of 2017, which was based on information available
as of December 31, 2017. The estimate decreased by
$0.8 million, $9.7 million, $89.6 million and
$0.4 million during the quarters ended March 31, 2018,
June 30, 2018, September 30, 2018 and December 31,
2018, and may be further adjusted in the future upon issuance of
additional technical guidance, legislative updates from states on
tax reform, and the completion of the Company’s tax return filings
for fiscal year 2018.
- Net market change, distributions
and other includes appreciation (depreciation), distributions to
investors that represent return on investments and return of
capital, foreign exchange revaluation and net cash management.
- International includes North
America-based advisors serving non-resident clients.
Franklin Resources, Inc. is a global investment
management organization operating 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 $712.3 billion in
AUM as of March 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. (“Franklin”) 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 Franklin’s 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 Franklin’s Annual Report on Form 10-K for the
fiscal year ended September 30, 2018 and Franklin’s subsequent
Quarterly Reports on Form 10-Q:
- Volatility and disruption of the
capital and credit markets, and adverse changes in the global
economy, may significantly affect our results of operations and may
put pressure on our financial results.
- The amount and mix of our AUM are
subject to significant fluctuations.
- We are subject to extensive,
complex, overlapping and frequently changing rules, regulations,
policies, and legal interpretations.
- Global regulatory and legislative
actions and reforms have made the regulatory environment in which
we operate more costly and future actions and reforms could
adversely impact our financial condition and results of
operations.
- Failure to comply with the laws,
rules or regulations in any of the jurisdictions in which we
operate could result in substantial harm to our reputation and
results of operations.
- Changes in tax laws or exposure to
additional income tax liabilities could have a material impact on
our financial condition, results of operations and liquidity.
- Any significant limitation, failure
or security breach of our information and cyber security
infrastructure, software applications, technology or other systems
that are critical to our operations could disrupt our business and
harm our operations and reputation.
- Our contractual obligations may
subject us to indemnification costs and liability to third
parties.
- Our business operations are complex
and a failure to properly perform operational tasks or the
misrepresentation of our services and products, or the termination
of investment management agreements representing a significant
portion of our AUM, could have an adverse effect on our revenues
and income.
- We face risks, and corresponding
potential costs and expenses, associated with conducting operations
and growing our business in numerous countries.
- We depend on key personnel and our
financial performance could be negatively affected by the loss of
their services.
- Strong competition from numerous
and sometimes larger companies with competing offerings and
products could limit or reduce sales of our products, potentially
resulting in a decline in our market share, revenues and
income.
- Changes in the third-party
distribution and sales channels on which we depend could reduce our
income and hinder our growth.
- Our increasing focus on
international markets as a source of investments and sales of our
products subjects us to increased exchange rate and market-specific
political, economic or other risks that may adversely impact our
revenues and income generated overseas.
- Harm to our reputation or poor
investment performance of our products could reduce the level of
our AUM or affect our sales, and negatively impact our revenues and
income.
- Our future results are dependent
upon maintaining an appropriate level of expenses, which is subject
to fluctuation.
- Our ability to successfully manage
and grow our business can be impeded by systems and other
technological limitations.
- Our inability to successfully
recover should we experience a disaster or other business
continuity problem could cause material financial loss, loss of
human capital, regulatory actions, reputational harm, or legal
liability.
- Regulatory and governmental
examinations and/or investigations, litigation and the legal risks
associated with our business, could adversely impact our AUM,
increase costs and negatively impact our profitability and/or our
future financial results.
- Our ability to meet cash needs
depends upon certain factors, including the market value of our
assets, operating cash flows and our perceived
creditworthiness.
- We are dependent on the earnings of
our subsidiaries.
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.
| |
Contact: |
Franklin
Resources, Inc. |
| |
|
Investor
Relations: Brian Sevilla (650) 312-4091 |
| |
|
Media
Relations: Matt Walsh (650) 312-2245 |
| |
|
investors.franklinresources.com |
Franklin Resources (NYSE:BEN)
Historical Stock Chart
From Apr 2024 to May 2024
Franklin Resources (NYSE:BEN)
Historical Stock Chart
From May 2023 to May 2024
