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FOR IMMEDIATE RELEASE
Franklin Resources, Inc. Announces Third Quarter Results
San Mateo, CA, August 3, 2021 – Franklin Resources, Inc. (the “Company”) [NYSE: BEN] today announced net income1 of $438.4 million or $0.86 per diluted share for the quarter ended June 30, 2021, as compared to $381.8 million or $0.74 per diluted share for the previous quarter, and $290.4 million or $0.58 per diluted share for the quarter ended June 30, 2020. Operating income2 was $478.1 million for the quarter ended June 30, 2021, as compared to $456.3 million for the previous quarter and $232.5 million in the prior year. The quarter ended June 30, 2021 includes $45.3 million, or $0.07 per diluted share, of closed-end fund product launch costs associated with the Western Asset Diversified Income Fund.
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 $493.7 million and adjusted diluted earnings per share3 was $0.96 for the quarter ended June 30, 2021, as compared to $403.5 million and $0.79 for the previous quarter, and $348.9 million and $0.70 for the quarter ended June 30, 2020. Adjusted operating income3 was $601.2 million for the quarter ended June 30, 2021, as compared to $581.1 million for the previous quarter and $270.8 million in the prior year.
“When we acquired Legg Mason a year ago, we set ambitious goals for our combined organization, and we’re proud of the progress made toward achieving them,” said Jenny Johnson, President and CEO of Franklin Resources, Inc. “Investment performance continues to strengthen across our differentiated specialist investment managers in a broad array of investment strategies. And our distribution teams’ collective sales initiatives are resulting in deeper relationships and increased diversification in flows across funds, vehicles, and asset classes. These factors have led to significant improvement in total net flows since the time of the acquisition.
“Specific to the third quarter, we saw positive net flows into the majority of our specialist investment managers – and Benefit Street Partners, Clarion, ClearBridge, Fiduciary Trust International, and Martin Currie all reached record highs in AUM. Alternative net inflows were a record $3.1 billion, and fixed income net flows returned to positive territory at $2.1 billion.
“Financial results continue to progress with adjusted operating income increasing by 3% to $601.2 million from the prior quarter, inclusive of the one-time impact of costs associated with the successful launch of the $1.0 billion Western Asset Diversified Income Fund. The strength of our balance sheet enables us to invest with confidence in the business and make sure we’re best positioned to be a leader in an ever-evolving industry.”
The following information was filed by Franklin Resources Inc (BEN) on Tuesday, August 3, 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.