Franklin Resources, Inc. Announces Month-End Assets Under Management
April 08 2020 - 4:30PM
Business Wire
Franklin Resources, Inc. (Franklin Templeton) (NYSE: BEN) today
reported preliminary month-end assets under management of $580.2
billion at March 31, 2020, compared to $656.5 billion at February
29, 2020. Assets under management were driven lower by sharp market
declines. Preliminary average assets under management for the
quarter ended March 31, 2020, were $655.7 billion.
ASSETS UNDER MANAGEMENT
Preliminary
(In billions)
31-Mar-20
29-Feb-20
31-Dec-19
30-Sep-19
31-Mar-19
Franklin Templeton:
Equity:
Global/international
$114.7
$142.2
$163.5
$158.4
$174.4
United States
92.7
108.3
117.0
112.1
109.5
Total equity
207.4
250.5
280.5
270.5
283.9
Multi-Asset/Balanced
118.1
127.5
136.5
134.3
134.7
Fixed Income:
Tax-free
64.9
69.4
66.7
66.3
63.4
Taxable:
Global/international
113.3
130.7
136.7
144.6
152.5
United States
65.8
68.0
67.5
67.4
68.9
Total fixed income
244.0
268.1
270.9
278.3
284.8
Cash Management
10.7
10.4
10.4
9.5
8.9
Total
$580.2
$656.5
$698.3
$692.6
$712.3
Franklin Resources, Inc. [NYSE:BEN] 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. 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
The financial results in this press release are preliminary.
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,”
“preliminary” 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:
- Our proposed acquisition of Legg Mason, Inc. remains subject to
important transaction-related and other risks.
- The outbreak and spread of contagious diseases, including
COVID-19, could adversely affect our business and operations.
- 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 assets under management (“AUM”) are
subject to significant fluctuations.
- We are subject to significant risk of asset volatility from
changes in the global financial, equity, debt and commodity
markets.
- Our funds may be subject to liquidity risks or an unanticipated
large number of redemptions.
- A shift in our asset mix toward lower fee products may
negatively impact our revenues.
- We may not effectively manage risks associated with the
replacement of benchmark indices.
- Poor investment performance of our products could reduce the
level of our AUM or affect our sales, and negatively impact our
revenues and income.
- Harm to our reputation may negatively impact our revenues and
income.
- Our business operations are complex and a failure to perform
operational tasks properly or the misrepresentation of our services
and products resulting, without limitation, in 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.
- 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.
- We may review and pursue strategic transactions that could pose
risks to our business.
- 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.
- Increasing competition and other changes in the third-party
distribution and sales channels on which we depend could reduce our
income and hinder our growth.
- Any failure of our third-party providers to fulfill their
obligations, or our failure to maintain good relationships with our
providers, could adversely impact our business.
- We may be adversely affected if any of our third-party
providers is subject to a successful cyber or security attack.
- Our ability to manage and grow our business successfully can be
impeded by systems and other technological limitations.
- 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 inability to recover successfully, should we experience a
disaster or other business continuity problem, could cause material
financial loss, regulatory actions, legal liability, and/or
reputational harm.
- We depend on key personnel and our financial performance could
be negatively affected by the loss of their services.
- Our future results are dependent upon maintaining an
appropriate expense level.
- Our ability to meet cash needs depends upon certain factors,
including the market value of our assets, our operating cash flows
and our perceived creditworthiness.
- We are dependent on the earnings of our subsidiaries.
- We are subject to extensive, complex, overlapping and
frequently changing rules, regulations, policies, and legal
interpretations.
- We may be adversely affected as a result of new or revised
legislation or regulations or by changes in the interpretation of
existing laws and regulations.
- 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.
- Our contractual obligations may subject us to indemnification
costs and liability to third parties.
- 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.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200408005734/en/
Franklin Resources, Inc. Investor Relations: Lucy Nicholls (650)
312-4091, lucy.nicholls@franklintempleton.com Media Relations: Matt
Walsh (650) 312-2245, matthew.walsh@franklintempleton.com
investors.franklinresources.com
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