SOURCE: Franklin Resources, Inc.

Franklin Resources, Inc.

October 11, 2010 16:30 ET

Franklin Resources, Inc. Announces Month-End Assets Under Management

SAN MATEO, CA--(Marketwire - October 11, 2010) - Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) today reported preliminary month-end assets under management by the company's subsidiaries of $644.9 billion at September 30, 2010, compared to $600.4 billion at August 31, 2010 and $523.4 billion at September 30, 2009.

ASSETS UNDER MANAGEMENT

                        Preliminary
(In billions)             30-Sep-10 31-Aug-10 30-Jun-10 31-Mar-10 30-Sep-09
                          --------- --------- --------- --------- ---------
Franklin Templeton
 Investments:
   Equity:
     Global/international $   204.2 $   181.1 $   172.9 $   193.2 $   183.1
     Domestic (U.S.)           69.5      64.3      63.2      69.8      63.9
                          --------- --------- --------- --------- ---------
     Total equity             273.7     245.4     236.1     263.0     247.0
                          --------- --------- --------- --------- ---------

   Hybrid                     110.8     105.3     101.6     107.3      98.2

   Fixed-Income:
     Tax-free                  77.7      77.2      73.8      71.8      69.6
     Taxable:
      Global/international    130.7     120.7     109.4      97.0      63.3
      Domestic (U.S.)          45.4      44.7      43.3      41.9      38.4
                          --------- --------- --------- --------- ---------
     Total fixed-income       253.8     242.6     226.5     210.7     171.3
                          --------- --------- --------- --------- ---------

   Cash Management*             6.6       7.1       6.3       5.8       6.9

                          --------- --------- --------- --------- ---------
Total                     $   644.9 $   600.4 $   570.5 $   586.8 $   523.4
                          ========= ========= ========= ========= =========

* Includes both U.S.-registered money market funds and non-U.S. registered
  funds with similar investment objectives.

Franklin Resources, Inc. is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA-based company has more than 60 years of investment experience. For more information, please visit franklinresources.com.

Forward-Looking Statements:

The financial results in this press release are preliminary. 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. 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. We caution you therefore against relying on any of these forward-looking statements. 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, 2009 and 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 put pressure on our financial results.
    -- The amount and mix of our assets under management are subject to
       significant fluctuations.
    -- We are subject to extensive and complex, overlapping and frequently
       changing rules, regulations and legal interpretations.
    -- 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 assets under
       management, increase costs and negatively impact our profitability
       and future financial results.
    -- 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 or failure of our software applications,
       technology or other systems that are critical to our operations
       could constrain our operations.
    -- Our investment management business operations are complex and a
       failure to properly perform operational tasks or the
       misrepresentation of our products and services 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 net income.
    -- Changes in the third-party distribution and sales channels on which
       we depend could reduce our revenues and hinder our growth.
    -- Our increasing focus on international markets as a source of
       investments and sales of investment products subjects us to
       increased exchange rate and other risks in connection with earnings
       and income generated overseas.
    -- Poor investment performance of our products could affect our sales
       or reduce the level of assets under management, potentially
       negatively impacting our revenues and income.
    -- We could suffer losses in earnings or revenue if our reputation
       is harmed.
    -- Our future results are dependent upon maintaining an appropriate
       level of expenses, which is subject to fluctuation.
    -- Our ability to successfully integrate widely varied business lines
       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.
    -- Certain of the portfolios we manage, including our emerging market
       portfolios, are vulnerable to significant market-specific
       political, economic or other risks, any of which may negatively
       impact our revenues and income.
    -- Our revenues, earnings and income could be adversely affected if
       the terms of our management agreements are significantly altered or
       these agreements are terminated by the funds and other sponsored
       investment products we advise.
    -- Regulatory and governmental examinations and/or investigations,
       civil litigation relating to previously settled regulatory and
       governmental investigations, and the legal risks associated with
       our business, could adversely impact our assets under management,
       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 credit worthiness.
    -- Diverse and strong competition limits the interest rates that we
       can charge on consumer loans.
    -- Our business could be negatively affected if we or our banking
       subsidiaries fail to remain well capitalized, and liquidity needs
       could affect our banking business.
    -- 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 Information

  • Contact:
    Franklin Resources, Inc.
    Corporate Communications:
    Matt Walsh
    (650) 312-2245

    Investor Relations:
    Brian Sevilla
    (650) 312-4091
    franklinresources.com