Franklin Sources, Inc. Declares Month-Finish Property Underneath Administration

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SAN MATEO, California –BUSINESS WIRE) – Franklin Resources, Inc. (Franklin Templeton) (NYSE: BEN) today reported January 31, 2021 provisional assets under management of $ 1,494.4 billion at the end of the month, compared to $ 1,498.0 billion as of December 31, 2020 AUM mainly reflected market devaluations and slight long-term net outflows, which were partially offset by net cash management inflows.

By asset class:

(In USD billion)

Provisionally

31-Jan-21

31-Dec-20

30-Sep-20

30-Jun-20

31-Jan-20

Fixed Income

$ 665.4

$ 669.9

$ 656.9

$ 211.3

$ 241.6

Equity

490.2

495.7

438.1

235.8

266.3

Multi-asset

139.7

141.1

129.4

118.5

123.7

alternative

128.9

127.1

122.1

46.8

45.9

Long term:

1,424.2

1,433.8

1,346.5

612.4

677.5

Cash management

70.2

64.2

72.4

10.4

10.5

total

$ 1,494.4

$ 1,498.0

$ 1,418.9

$ 622.8

$ 688.0

About Franklin Templeton

Franklin Resources, Inc. (NYSE: BEN) is a global investment management organization with subsidiaries, operating as Franklin Templeton, serving clients in over 165 countries. Franklin Templeton’s mission is to help clients achieve better results through investment management expertise, wealth management and technology solutions. Through its specialized investment managers, the company offers comprehensive functionality in the areas of equities, fixed income securities, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has more than 70 years of investment experience. The company publishes information that may be of interest to investors in the Investor Relations and News Center sections of its website and encourages investors to consult these areas regularly. More information is available at investors.franklinresources.com.

Forward-Looking Statements

The financial results in this press release are preliminary. Some of the statements contained herein may contain forward-looking statements that reflect our current beliefs about future events and financial performance. Such statements are made under the “safe harbor” protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not purely historical or current fact and are generally estimated by words or expressions in the future tense and / or prefixed by words such as “anticipate,” “believe,” “might,” “depend”, ” “expect”, “intend”, “likely”, “may”, “plan”, “plan” potential, “tentatively”, “seek”, “should”, “will”, “would” or other similar words or variations thereof or the negative thereof, but these terms are not the exclusive means of identifying such statements.

Forward-looking statements involve a number of known and unknown risks, uncertainties, and other important factors, some of which are listed below. This could cause actual results and results to differ materially from future results or results expressed or implied by such forward-looking statements. While forward-looking statements are our best predictions at the time of making, they should not be relied upon and are cautioned against. Forward-looking statements are based on our current expectations and assumptions about our business, the economy and other possible future conditions. Because forward-looking statements address the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. They are neither statements of historical facts nor guarantees or representations of future performance. From time to time, factors or events may occur that could cause our actual results to differ and we cannot predict all of them.

These and other risks, uncertainties, and other important factors are further described in our recent filings with the Securities and Exchange Commission, including, but not limited to, risk factors and management’s discussion and analysis of the company’s financial position and results of operations in our annual report on Form 10-K for the fiscal year ending September 30, 2020 and our subsequent quarterly report on Form 10-Q:

  • Our business and operations are exposed to adverse effects from the outbreak and spread of contagious diseases such as COVID-19, and we anticipate these adverse effects will continue.

  • Volatility and disruptions in our business, capital and credit markets, and adverse changes in the global economy can materially affect our results of operations and put pressure on our financial results.

  • The amount and mix of our assets under management (“AUM”) are subject to significant fluctuations.

  • We are exposed to significant risk of asset volatility due to changes in global financial, equity, debt and commodity markets.

  • Our funds may be exposed to liquidity risks or an unexpectedly large number of redemptions and fund closings.

  • A shift in our asset mix towards products with lower fees could have a negative impact on our revenue.

  • We may not be able to effectively manage the risks associated with benchmark index replacement.

  • Poor investment performance by our products can reduce the level of our AUM or affect our sales and have a negative impact on sales and earnings.

  • Damage to our reputation can adversely affect our income and earnings.

  • Our completed acquisition of Legg Mason, Inc. remains subject to integration risks.

  • Our business is complex and failure to perform operational tasks or comply with applicable governmental requirements can adversely affect our sales and earnings.

  • Failure to establish adequate controls and risk management policies or to circumvent controls and policies could adversely affect our global business, reputation and financial condition.

  • We are exposed to the risks and related potential costs and expenses associated with conducting operations and growing our business in numerous countries.

  • Our focus on international markets as the source of investment and sales for our products exposes us to elevated exchange rates and market-specific political, economic, or other risks that can adversely affect our overseas sales and earnings.

  • We can review and track strategic transactions that could pose risks to our business.

  • If the growing pressures of transformation affecting the wealth management industry are not adequately addressed, it can have a negative impact on our business.

  • Fierce competition from numerous, and sometimes larger, companies with competing offerings and products could limit or reduce the sales of our products, potentially leading to a decrease in our market share, sales and income.

  • Increased competition and other changes in the third-party sales and distribution channels on which we depend could reduce our income and hinder our growth.

  • A failure by our third party vendors to meet their obligations or our failure to maintain good relationships with our vendors could adversely affect our business.

  • We can be affected if one of our third party providers is exposed to a successful cyber or security attack.

  • Our ability to successfully manage and grow our business can be affected by systems and other technological constraints.

  • Any material restriction, outage, or security breach of our information and cybersecurity infrastructure, software applications, technology, or other systems that are critical to our operations can disrupt our business and damage our operations and reputation.

  • Our inability to successfully recover in the event of a disaster or other business continuity issue could result in significant financial loss, regulatory action, legal liability and / or reputational damage.

  • We rely on key people and our financial performance could be negatively affected by the loss of their services.

  • Our ability to meet cash needs depends on certain factors including the market value of our assets, our operating cash flows, and our perceived creditworthiness.

  • We are dependent on the results of our subsidiaries.

  • We are subject to extensive, complex, overlapping and frequently changing rules, regulations, guidelines and legal interpretations.

  • We may be affected by new or revised laws or regulations, or changes in the interpretation of existing laws and regulations in the United States and other jurisdictions.

  • Global regulatory and legislative actions and reforms have made it more expensive to comply with the regulatory environment in which we operate, and future actions and reforms could adversely affect our financial position and results of operations.

  • Failure to comply with any law, rule, or regulation in the countries in which we operate can materially affect our reputation and earnings.

  • Changes in tax laws or the risk of additional income tax liabilities can have a material impact on our financial position, earnings position and liquidity.

  • Regulatory and governmental reviews and / or investigations, litigation, and the legal risks associated with our business can adversely affect our AUM, increase costs, and adversely affect our profitability and / or our future financial results.

  • Our contractual obligations can lead to compensation costs and liability to third parties.

  • Failure to protect our intellectual property can adversely affect our business.

If after the date of this press release anything occurs that could cause any of our forward-looking statements to be inaccurate as a result of new information, future developments, or any other reason, we undertake no obligation to publicly announce the change in our expectations. or revise our forward-looking statements to reflect changes in beliefs, beliefs or expectations or changes in the events, conditions or circumstances on which forward-looking statements are based, except as required by law.