financial analysis
EX-99.1
2
d889991dex991.htm
EX-99.1
Exhibit 99.1
From: Franklin Resources, Inc.
Investor Relations: Brian Sevilla, (650) 312-4091, [emailprotected]
Corporate Communications:
Matt
Walsh, (650) 312-2245, [emailprotected]
Lisa Gallegos, (650) 312-3395, [emailprotected]
franklinresources.com
Legg Mason. Inc.
Investor
Relations:
Alan Magleby, 410-454-5246,
[emailprotected]
Corporate Communications:
Mary Athridge, 212-805-6035, [emailprotected]
FOR IMMEDIATE RELEASE
Franklin Templeton to Acquire Legg Mason, Creating $1.5 Trillion AUM Global Investment Manager
Combined Company to Offer Complementary Investment Strategies
through Expanded Global Distribution Platform
Significant Diversification, Including Increased Alternative and Institutional Assets
Transaction Structured to Ensure Continued Autonomy of Legg Mason Affiliates
While Enhancing Scale of Combined Organization
Franklin Templeton Will Continue to Have Substantial Financial Resources
and Flexibility to Invest in Growth and Innovation
Franklin Templeton and Legg Mason to Hold Joint Investor Conference Call at 8:30 a.m. ET Today
San Mateo, CA, February18, 2020 Franklin Resources, Inc. (the Company) [NYSE:BEN], a global investment
management organization operating as Franklin Templeton, today announced that it has entered into a definitive agreement to acquire Legg Mason, Inc. [NYSE:LM] for $50.00 per share of common stock in an
all-cash transaction. The Company will also assume approximately $2billion of Legg Masons outstanding debt. The acquisition of Legg Mason and its multiple investment affiliates, which collectively
manage over $806billion in assets as of January31, 2020, will establish Franklin Templeton as one of the worlds largest independent, specialized global investment managers with a combined $1.5 trillion in assets under management
(AUM) across one of the broadest ranges of high-quality investment teams in the industry. The combined footprint of the organization will significantly deepen Franklin Templetons presence in key geographies and create an expansive investment
platform that is well balanced between institutional and retail client AUM. In addition, the combined platform creates a strong separately managed account business.
This is a landmark acquisition for our organization that unlocks substantial value and growth
opportunities driven by greater scale, diversity and balance across investment strategies, distribution channels and geographies, said Greg Johnson, executive chairman of the Board of Franklin Resources, Inc. Our complementary strengths
will enhance our strategic positioning and long-term growth potential, while also delivering on our goal of creating a more balanced and diversified organization that is competitively positioned to serve more clients in more places.
Jenny Johnson, president and CEO of Franklin Templeton, said, This acquisition will add differentiated capabilities to our existing investment
strategies with modest overlap across multiple world-class affiliates, investment teams and distribution channels, bringing notable added leadership and strength in core fixed income, active equities and alternatives. We will also expand our
multi-asset solutions, a key growth area for the firm amid increasing client demand for comprehensive, outcome-oriented investment solutions.
Joseph A. Sullivan, chairman and CEO of Legg Mason, said, The incredibly strong fit between our two organizations gives me the utmost confidence that
this transaction will create meaningful long-term benefits for our clients and provide our shareholders with a compelling valuation for their investment. By preserving the autonomy of each investment organization, the combination of Legg Mason and
Franklin Templeton will quickly leverage our collective strengths, while minimizing the risk of disruption. Our clients will benefit froma shared vision, strong client-focused cultures, distinct investmentcapabilities and a broad
distribution footprint in this powerful combination.
Carol Anthony John Davidson, lead independent director of Legg Mason, said,
Todays announcement marks the beginning of an exciting next chapter for Legg Mason, our investment affiliates and valued clients, who will benefit from a leading global asset manager with the scale to compete and win in todays
markets. I am honored to have had the opportunity to serve as the lead independent director of this dynamic board, and I am truly appreciative of the hard work and dedication of the entire Legg Mason team.
Nelson Peltz, CEO and Founding Partner of Trian Fund Management, L.P. and a Legg Mason director said, Given the dynamics of todays rapidly
evolving and increasingly competitive asset management sector, I believe this transaction is compelling. In our view, it offers an attractive valuation for Legg Masons shareholders. I believe it will also enable Legg Masons investment
affiliates to remain at the forefront of an industry where scale is increasingly vital to success and to join Franklin Templeton, an organization that I have deep respect for and confidence in.
Trian Fund Management, L.P. and funds managed by it, which collectively own approximately 4million shares or 4.5% of the outstanding stock of Legg
Mason, have entered into a voting agreement in support of the transaction.
Jenny Johnson added, This transaction gives us significant scale,
addresses strategic gaps and brings greater balance to our business, while positioning us for accelerated growth in the future. We have incredible respect and admiration for the success Legg Mason and its investment affiliates have achieved and we
have structured the transaction to ensure that its affiliates have the right mix of independence and support to continue building on their strong track records. Legg Masons investment affiliates will be able to leverage Franklin
Templetons global infrastructure and ongoing investment in technology and innovation, while clients can take comfort in the combined firms financial strength and aligned interests.
Continued Autonomy for Investment Affiliates
Franklin
Templeton has spent significant time with the affiliates and there is strong alignment among all parties in this transaction and shared excitement about the future of the company.
James W. Hirschmann, CEO of Western Asset, a Legg Mason affiliate, said, Western Asset is excited to
be joining the Franklin Templeton family, a firm with a long and storied history of proven financial performance and a leadership team and board with decades of asset management experience who value our investment independence and organizational
autonomy. Like us, Franklin Templeton understands the importance of culture, teams and core values to achieving outstanding investment results for clients.
Terrence J. Murphy, CEO of ClearBridge Investments, a Legg Mason affiliate, said, As part of Franklin Templeton, we are confident that we will retain
the strong culture that has defined our success as a recognized market leader in active equities.Their commitment to investment autonomy, augmented by the scale and reach that the combined organization will provide, will allow us to deliver
for our existing clients and expand our ability to deliver our investment capabilities in new channels and regions.We are very pleased to join the team at Franklin Templeton and excited about what we can do together.
Organizational Structure and Parent Company Integration
With this acquisition, Franklin Templeton will preserve the autonomy of Legg Masons affiliates, ensuring that their investment philosophies, processes
and brands remain unchanged. As with any acquisition, the pending integration of Legg Masons parent company into Franklin Templetons, including the global distribution operations at the parent company level, will take time and only
commence after careful and deliberate consideration.
Following the closing of the transaction, Jenny Johnson will continue to serve as president and CEO,
and Greg Johnson will continue to serve as executive chairman of the Board of Franklin Resources, Inc. There will be no changes to the senior management teams of Legg Masons investment affiliates. Global headquarters will remain in San Mateo,
CA and the combined firm will operate as Franklin Templeton.
After careful consideration, EnTrust Global, a Legg Mason affiliate that provides
alternative investment solutions, and Franklin Templeton, jointly agreed that it was in their best interest that EnTrust repurchase its business, which will be acquired by its management at closing. EnTrust will maintain an ongoing relationship with
Franklin Templeton. Jenny Johnson added, EnTrust is an excellent business and we recognize and appreciate their desire to once again become a private company. We have appreciated their collaboration in our discussions and look forward to our
ongoing relationship.
Transaction Details
The
all-cash consideration of $4.5billion will be funded from the Companys existing balance sheet cash. Franklin Templeton will also assume approximately $2billion in Legg Masons
outstanding debt. Upon closing of the transaction, Franklin Templeton expects to maintain a robust balance sheet and considerable financial flexibility with pro forma gross debt of approximately $2.7billion with remaining cash and investments
of approximately $5.3billion. This transaction is designed to preserve the Companys financial strength and stability with modest leverage, significant liquidity and strong cash flow to provide ongoing flexibility to invest in further
growth and innovation.
This transaction is expected to generate upper twenties percentage GAAP EPS accretion in Fiscal 2021 (based on street consensus
earnings estimates for each company), excluding one-time charges, non-recurring and acquisition related expenses.
While cost synergies have not been a strategic driver of the transaction, there are opportunities to realize efficiencies through parent company
rationalization and global distribution optimization. These are expected to result in approximately $200million in annual cost savings, net of significant growth investments Franklin Templeton expects to make in the combined business and in
addition to Legg
Masons previously announced cost savings. The majority of these savings are expected to be realized within a year, following the close of the transaction, with the remaining synergies being
realized over the next one to two years.
The transaction has been unanimously approved by the boards of Franklin Resources, Inc. and Legg Mason, Inc.
This transaction is subject to customary closing conditions, including receipt of applicable regulatory approvals and approval by Legg Masons shareholders, and is expected to close no later than the third calendar quarter of 2020.
Broadhaven Capital Partners, LLC and Morgan Stanley& Co LLC served as financial advisors to Franklin Resources, Inc. Ardea Partners LP also provided
advice. Willkie Farr& Gallagher LLP acted as external legal counsel. PJT Partners served as the lead financial advisor to Legg Mason. J.P. Morgan Securities LLC also served as financial advisor to Legg Mason. Weil, Gotshal&
Manges LLP served as lead counsel to Legg Mason and Skadden, Arps, Slate, Meagher& Flom LLP served as special counsel to Legg Mason. Dechert LLP served as legal counsel to EnTrust Global.
Conference Call Information
Executives from Franklin
Templeton and Legg Mason will lead a live teleconference today at 8:30 a.m. Eastern Time. Access to the teleconference will be available by dialing (877) 407-8293 in the U.S. and Canada or (201) 689-8349 internationally, and a supplementary presentation will be available to investors via franklinresources.com. A replay of the teleconference can also be accessed by calling (877) 660-6853 in the U.S. and Canada or (201) 612-7415 internationally, using access code 13699226, after 11:30am ET on February18, 2020 through March18, 2020.
About Legg Mason
Guided by a mission of Investing to
Improve Lives,Legg Mason helps investors globally achieve better financial outcomes by expanding choice across investment strategies, vehicles and investor access through independent
investment managers with diverse expertise in equity, fixed income, alternative and liquidity investments. Legg Masons investment affiliates operate with investment independence and have specialized expertise across asset classes and markets
around the globe. The firms affiliates include: Brandywine Global, Clarion Partners, ClearBridge Investments, Martin Currie, QS Investors, Royce Investment Partners, and Western Asset. Legg Masons assets under management are
$806billion as of January31, 2020.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating, together with its subsidiaries, as Franklin Templeton. Franklin
Templetons 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 Companys 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 and approximately $688billion in assets under management as of January31, 2020. For more information,
please visit investors.franklinresources.com.
Forward-Looking Statements
Statements in this press release that 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.
Various forward-looking statements in this press release relate to the acquisition by Franklin Resources, Inc. (Franklin) of Legg Mason, Inc.
(Legg Mason), including regarding expected scale opportunities, operating efficiencies and results, growth, client and stockholder benefits, key assumptions, timing of closing of the transaction, revenue realization, cost and expense
synergies, financial benefits or returns, accretion and integration costs.
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. Important
transaction-related and other risk factors that may cause such differences include: (i)the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (ii)the transaction
closing conditions may not be satisfied in a timely manner or at all, including due to the failure to obtain Legg Mason stockholder approval and regulatory and client approvals; (iii)the announcement and pendency of the merger may disrupt
Franklins and Legg Masons business operations (including the threatened or actual loss of employees, clients or suppliers); (iv) Franklin or Legg Mason could experience financial or other setbacks if the transaction encounters
unanticipated problems; (v)anticipated benefits of the transaction, including the realization of revenue, accretion, financial benefits or returns and expense and other synergies, may not be fully realized or may take longer to realize than
expected; and (vi)Franklin may be unable to successfully integrate Legg Masons businesses with those of Franklin or to integrate the businesses within the anticipated timeframe.
Other important factors that may affect our business or the combined business future operating results, include, but are not limited to:
(i)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; (ii)the amount and mix of assets
under management (AUM) are subject to significant fluctuations; (iii)the significant risk of asset volatility from changes in the global financial, equity, debt and commodity markets; (iv)harm to our, or Legg Masons,
reputation may negatively impact revenues and income; (v)Franklin may review and pursue other strategic transactions that could pose risks to our business operations; (vi)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 their market share, revenues and income; (vii)the ability to manage and grow our business and the combined business
successfully can be impeded by systems and other technological limitations; (viii)dependence on key personnel could negatively affect financial performance; (ix)the businesses are subject to extensive, complex, and frequently changing
rules, regulations, policies, and legal interpretations; (x)our contractual obligations may subject us to indemnification costs and liability to third parties; (xi)any significant limitation, failure or security breach of information and
cyber security infrastructure, software applications, technology or other systems that are critical to operations could disrupt the businesses and harm operations and reputation; and (xii)regulatory and governmental examinations and/or
investigations, litigation and the legal risks associated with the businesses, could adversely impact AUM, increase costs and negatively impact profitability and/or our future financial results. For a detailed discussion of other risk factors,
please refer to the risks, uncertainties and factors described in Franklins and Legg Masons recent filings with the U.S. Securities and Exchange Commission (SEC), including, without limitation, each companys most recent
Annual Report on Form 10-K and subsequent periodic and current reports.
Any forward-looking statement made in this press release speaks only as of the date on which it is made.
Factors or events that could cause actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Franklin and Legg Mason 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.
Additional Information and Where to Find It
This filing may be deemed solicitation material in respect of the proposed acquisition of Legg Mason by Franklin. In connection with the proposed
merger, Legg Mason will file with the SEC and furnish to Legg Masons stockholders a proxy statement and other relevant documents. This filing does not constitute a solicitation of any vote or approval. Stockholders are urged to read the proxy
statement when it becomes available and any other documents to be filed with the SEC in connection with the proposed merger or incorporated by reference in the proxy statement because they will contain important information about the proposed
merger.
Investors will be able to obtain free of charge the proxy statement and other documents filed with the SEC at the SECs website at
http://www.sec.gov. In addition, the proxy statement and our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to section 13(a) or 15(d) of the Securities Exchange Act of 1934 are or will be available free of charge through our website at www.leggmason.com as
soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC.
The directors, executive officers and certain other
members of management and employees of Legg Mason may be deemed participants in the solicitation of proxies from stockholders of Legg Mason in favor of the proposed merger. Information regarding the persons who may, under the rules of
the SEC, be considered participants in the solicitation of the stockholders of Legg Mason in connection with the proposed merger will be set forth in the proxy statement and the other relevant documents to be filed with the SEC. You can find
information about Legg Masons executive officers and directors in the definitive proxy statement on Schedule 14A in connection with Legg Masons 2019 Annual Meeting of Shareholders, filed with the SEC on June6, 2019. FINAL REPORT & PRESENTATION FOR YOUR FINC 601
TERM PROJECT
Each group is required to conduct a comprehensive analysis for the assigned M&A
transaction regarding three modules described in the course outline, namely, valuing
financial market instruments, financial analysis and corporate valuation, and mergers
and capital structure decisions. Your team is required to write a written report as financial
analysts, and to prepare a brief oral presentation (12-15 min length) outlining the key
aspects of your report.
Requirements for Final Report
The Final Report should be typed in Arial 12 font with single line spacing
The report should not exceed 12 pages.
I encourage you to include graphs/tables in the body of the report. Any tables that are not
suited for inclusion in the body should be included as an appendix with a clear reference
in the body of the report to the appropriate appendix.
Suggested Format of the Final Report
Your report should contain the following sections:
Cover Page
At least, the company names and the names of team members should be included.
EXECUTIVE SUMMARY
Illustrate your main findings/conclusions
Approximately 1 page in length
COMPANY OVERVIEW
A brief introduction of selected companies
A brief introduction of the announced M&A deal terms
Opportunities and challenges the companies are facing in the coming 2-5 years
Approximately 1-2 pages in length
COMPANY ANALYSIS
Conducting financial statement analysis for both companies
Estimating intrinsic stock value for both companies by using corporate valuation models
(e.g.: dividend growth model, total payout model, and market multiples model among
others)
Analyzing capital structures and weighted average cost of capital for both companies
Applying the APV Model to estimate the bid price for the target firm
For this section, show detailed information about data, assumptions, methodologies and
models applied
Approximately 6-9 pages in length
FINAL REPORT & Presentation for your FINC 601 Term project
Requirements for Final Report
Suggested Format of the Final Report 14 FRANKLIN RESOURCES, INC. ANNUAL REPORT 2019
GLOBAL SCALE AND LOCAL INSIGHTS
With more than 600 investment professionals in 25 countries around the world, we are uniquely positioned to look beyond
thelargest or most visible securities in each market to spot smart global investments that meet our investment criteria.
Ourfirsthand understanding of local culture, companies and economies sets us apart as a truly global partner.
Our global footprint includes employees in over 30 countries that together represent 84% of the worlds gross domestic product.
FRI A19 11/19
AMSTERDAM
BEIJING
BOGOTA
BOSTON
BRUSSELS
BUCHAREST
BUDAPEST
BUENOS AIRES
CALGARY
CAPE TOWN
CHENNAI
CORAL GABLES
DUBAI
EDINBURGH
FORT LAUDERDALE
FRANKFURT
GENEVA
HERZLIYA
HO CHI MINH CITY
HONG KONG
HYDERABAD
ISTANBUL
KUALA LUMPUR
LEEDS
LONDON
LOS ANGELES
LUXEMBOURG
MADRID
MELBOURNE
MEXICO CITY
MILAN
MONTREAL
MUMBAI
NASSAU
NEW YORK CITY
PARIS
POZNAN
RANCHO CORDOVA
RIO DE JANEIRO
SALT LAKE CITY
SAN MATEO
SAN RAMON
SANTIAGO
SAO PAULO
SEOUL
SHANGHAI
SHORT HILLS
SINGAPORE
ST. PETERSBURG
STAMFORD
STOCKHOLM
SYDNEY
TOKYO
TORONTO
VIENNA
VISAKHAPATNAM
WARSAW
WASHINGTON, DC
WILMINGTON
ZURICH
One Franklin Parkway, San Mateo, CA 94403-1906
franklinresources.com
As of September 30, 2019.
FRANKLIN RESOURCES, INC.
2019 ANNUAL REPORT
INVESTING IN
PROGRESS
2019
F
ran
klin
R
esou
rces, In
c. A
n
n
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al R
ep
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Put Clients First
We strive to know and meet our clients needs,
and we fully accept our fiduciary responsibility
to protect shareholders interests.
Build Relationships
We work to establish enduring relationships
with our clients and business partners. We value
collaboration and cooperation in our workplaces.
fo noisnapxe rojam a detelpmoc eW
.9102 ni ,ainrofilaC ,oetaM naS ni supmac emoh ruo
Its just one more indication of our optimism about the future.
Work with Integrity
We speak and act in an honest manner.
We believe in being accountable for the
impact we have on others.
Achieve Quality Results
We value professional excellence and
expertise, and we work together to produce
consistent, competitive results for our clients.
CORPORATE VALUES
At Franklin Templeton, were excited about the future. Todays world is changing
and evolving faster than ever before. New opportunities emerge every day.
With our headquarters near the heart of Silicon Valley, were neighbors to many of
position among asset managers to understand the progress that tomorrow can
bring. So were investing in the companies building tomorrow. Were investing in
technology and data infrastructure to amplify our own capabilities. Were investing
in the developing markets and regions rising on the world stage.
Were investing in progress.
icity and contains at least 30%
d energy sources.
Copyright 2019 Franklin Templeton. All Rights Reserved.
Stock Transfer Agent, Registrar and
Dividend Disbursing Agent
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www-us.computershare.com/investor/contact
The common stock of Franklin Resources, Inc.
is listed on the New York Stock Exchange under
the ticker symbol BEN. For further information
regarding the common stock or for a copy of
our latest Form 10-K, including financial
statements and financial statement schedules,
free of charge, please contact:
Aliya S. Gordon
Vice President and Secretary
Franklin Resources, Inc.
One Franklin Parkway
San Mateo, CA 94403-1906
Brian Sevilla
Investor Relations
Franklin Resources, Inc.
One Franklin Parkway
San Mateo, CA 94403-1906
(650) 312-4091
[emailprotected]
investors.franklinresources.com
FRANKLIN RESOURCES, INC. ANNUAL REPORT 2019 1
DEAR FELLOW
STOCKHOLDERS
Everything we do at Franklin Templeton has a single focus:
to achieve the best possible outcomes for our investors.
This focus has guided our company since its founding in
1947 and will continue to guide us in the years ahead.
To achieve the best for our investors, we know we can never
be satisfied with the status quo. Thats why the theme of
this years annual report is Investing in Progress. And this
is nothing new to us. Throughout our history, our portfolio
teams have actively looked beyond the largest or most
visible securities in each market to uncover compelling
investment opportunities from all parts of the globe.
Likewise, we have made investments in our business that
focus on achieving investment excellence, fostering
enduring relationships and delivering superior service to our
broad range of investors. With the benefit of our strong
balance sheet, we will continue to make significant
investments in the areas of active management, global
distribution, multi-asset solutions, alternatives and
technology (including data science and fintech).
Ours is a truly diversified global franchise in both market
reach and core capabilities. We currently meet the
investing needs of clients in over 170 countries. Were
well positioned to serve the tens of millions of people
in a growing global middle class who are seeking the
opportunity to invest in progress. Our core capabilities are
strategic advantages too, including our exceptional portfolio
management skills, best practices in risk management
andstrengths in serving institutional investors.
Most of all, we have a special culture that weve cultivated
for decades to foster teamwork, resilience, agility and
innovationall vital to meeting the needs of our clients,
driving our ongoing growth and building a strong
foundation for our future.
FISCAL YEAR 2019 RESULTS
While net outflows continued to impact our assets under
management, we were pleased to see areas of strength in
fiscal year 2019. U.S. retail sales were up 12% over the
prior year, and sales strengthened in several international
markets, including India, Taiwan, Hong Kong, the Gulf and
Eastern Mediterranean region and Malaysia.
Our Franklin Templeton Multi-Asset Solutions capabilities
continued to generate significant interest that resulted in
new assets. In addition to the over 100 model portfolios we
currently manage, in September we launched six custom-
managed model portfolios on a major broker-dealers
platform. Franklin Templeton has deep experience in the
multi-asset business and understands how to look at risk
and return from a total portfolio perspective. Our research
process brings together the views of Franklin Templetons
distinct investment teams around the world. We have the
flexibility to build portfolios that combine our long-term
flagship strategies with our newer quantitative smart beta
capabilities and expanded range of alternative investments.
Long-term gross sales of $100.6 billion, while down 4%
from the prior year, continued to reflect the companys
diversified mix of assets under management by investment
strategy and geographic region.
We also saw areas of sustained strong performance
andinterest, notably in our U.S. equity and emerging
marketsstrategies.
Franklin Equity Group, with its growth-oriented approach,
continued to deliver strong performance. Our $9 billion
Franklin DynaTech Fund, for instance, performed very well
and is ranked in the top 5% of its Morningstar Large Cap
Growth peer group over three-, five- and 10-years (and top
Gregory E. Johnson
Chairman of the Board
Chief Executive Officer
Franklin Resources, Inc.
2 FRANKLIN RESOURCES, INC. ANNUAL REPORT 2019
ASSETS UNDER MANAGEMENT (AUM)
As of September 30, 2019
40% 39% 20% 1%
Fixed Income
Equity
Multi-Asset /Balanced
Cash Management
69% 13% 3%13% 2%
United States
Europe, Middle East and Africa
Asia-Pacific
Canada
Latin America
72% 25% 3%
Retail
Institutional
High-Net-Worth
BY ASSET MIX BY REGION BY CLIENT TYPE
25% over one year) as of September 30, 2019, while
outperforming the Russell 1000 Growth benchmark for
the same time periods. This innovation-focused fund has
earned a five-star rating from Morningstar.1,2
Our Luxembourg-domiciled Templeton Emerging Markets
Fund and the U.S.-domiciled Templeton Developing
Markets Fund ranked in the top quartile of their respective
Morningstar peer groups over three- and five-year periods
as of September 30, 2019, outpacing the MSCI Emerging
Markets Index over the same periods. The funds are rated
four stars by Morningstar.2,3,4
AN INFUSION OF NEW TALENT
As part of our proactive efforts to evolve our business to meet
client needs, we were excited to welcome several key strategic
hires in 2019, while promoting others to important new roles.
Matthew Nicholls has joined our team as our new chief
financial officer. Matthews well-rounded experience and
fresh perspectives have been an invaluable addition during
this time of rapid change and consolidation in the asset
management business.
Meanwhile, Dr. Sonal Desai assumed the chief investment
officer role for Franklin Templeton Fixed Income Group.
An excellent representation of the firms deep bench of
investment talent, Sonals proven leadership skills and
10years of experience managing the Templeton Global
Macro research team and portfolios make her a great fit
to run this critical aspect ofour business. She has already
implemented changes to enhance the investment
management process, including adding to the groups
team of investment data scientists to supplement
traditional fundamental analysis within our teams.
In Febru