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FOR IMMEDIATE RELEASE
Franklin Resources, Inc. Announces First Quarter Results
San Mateo, CA, February 2, 2021 – Franklin Resources, Inc. (the “Company”) [NYSE: BEN] today announced net income1 of $345.3 million or $0.67 per diluted share for the quarter ended December 31, 2020, as compared to $78.9 million or $0.15 per diluted share for the previous quarter, and $350.5 million or $0.70 per diluted share for the quarter ended December 31, 2019. Operating income2 was $409.1 million for the quarter ended December 31, 2020, as compared to $103.6 million for the previous quarter and $372.9 million in the prior year.
As supplemental information, the Company is providing certain adjusted performance measures which are based on methodologies other than generally accepted accounting principles.3 Adjusted net income3 was $373.4 million and adjusted diluted earnings per share was $0.73 for the quarter ended December 31, 2020, as compared to $291.0 million and $0.56 for the previous quarter, and $338.3 million and $0.67 for the quarter ended December 31, 2019. Adjusted operating income3 was $549.9 million for the quarter ended December 31, 2020, as compared to $428.9 million for the previous quarter and $405.5 million in the prior year.
“This month marks a full year since we announced our acquisition of Legg Mason and its specialist investment managers,” said Jenny Johnson, President and CEO of Franklin Resources, Inc. “I couldn’t be prouder of the progress we’ve made in bringing our teams together to form one company – with a singular focus on delivering exceptional client outcomes. The first full quarter of the combined company saw some encouraging trends, including a record high in AUM of approximately $1.5 trillion, driven primarily by strong market performance. In addition, the Company delivered strong operating and financial results.
“Investment performance broadly improved this quarter. Western Asset continues to perform exceptionally well, while Brandywine performance rebounded strongly. In terms of mutual funds, several of our value-oriented equity strategies generated noteworthy results and we continue to see strong performance in U.S. equities and U.S. fixed income. On the distribution front, momentum continued to build with positive net flows into Benefit Street Partners, Clarion Partners, ClearBridge, Fiduciary Trust, Franklin Equity Group, Franklin Templeton Fixed Income, Martin Currie, Royce and Western Asset. Cross-selling initiatives have started to yield positive results as we effectively respond to client needs with expanded investment capabilities.
“In addition to executing the Legg Mason acquisition, we continue to expand our offerings beyond traditional investment products and look for new, market-leading ways to serve our clients. Our proprietary Goals Optimization Engine (GOE), which launched last year, engages firms that are looking to digitally deliver a dynamic and personalized investment solution to investors. GOE is seeing early success in both the wealth and retirement segments. In the U.S., we recently announced the launch of a quick-deploy robo solution, as well as a partnership for a managed account solution within 401(k) plans – both of which are powered by GOE.
“Yesterday we officially launched our new Franklin Templeton Investment Institute, an innovative hub for research and knowledge sharing that we believe will unlock the Company’s competitive advantage as a source of global market insights. Stephen Dover, who will be taking on a new role as Chief Market Strategist, will be head of the newly-formed Investment Institute. At the same time, Terrence Murphy has expanded his leadership role to become Head of Equities for Franklin Templeton, while retaining his existing role as CEO at ClearBridge Investments.
The following information was filed by Franklin Resources Inc (BEN) on Tuesday, February 2, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.