Franklin Resources, Inc. · NYSE:BEN
Franklin Resources — Credit Suisse Financial Services Forum 2010
27 slides from Franklin Resources's conference presentation, Feb 10, 2010
Slide 1: Franklin Resources, Inc. Credit Suisse Financial Services Forum
FRANKLIN TEMPLETON INVESTMENTS Franklin Resources, Inc. Credit Suisse Financial Services Forum, February 10, 2010
Slide 2: Forward-Looking Statements
FRANKLIN TEMPLETON INVESTMENTS Forward-Looking Statements The financial results in this presentation are preliminary. Statements in this presentation regarding Franklin Resources, Inc. (“Franklin”) and its subsidiaries, which are not historical facts, are "forward-looking statements" within the mean
Slide 3: Franklin Templeton Investments: A Premier Global Investment Management Organization
FRANKLIN TEMPLETON INVESTMENTS Franklin Templeton Investments: A Premier Global Investment Management Organization World-Class Investment Management • $553.5 billion in assets under management1 with over 350 investment solutions worldwide2 • Fifth-largest U.S. mutual fund manager3 with 91% of U.S.-
Slide 4: Our World-Class Investment Management Groups
FRANKLIN TEMPLETON INVESTMENTS Our World-Class Investment Management Groups • FRANKLIN TEMPLETON INVESTMENTS SPECIALIZED FRANKLIN® TEMPLETON® MUTUAL SERIES® INVESTMENT TEAMS* Time-Tested Expertise • The separate investment management groups at Franklin, Templeton and Mutual Series were launched over
Slide 5: Specialized Investment Teams: Local Asset Management Capabilities
1.1.3 GLOBAL DIVERSIFICATION/ACTIVE MANAGEMENT FRANKLIN TEMPLETON INVESTMENTS Specialized Investment Teams: Local Asset Management Capabilities Brazil Canada China* India Japan Sao Paulo Calgary Shanghai, Hong Kong Chennai Tokyo • Equity • Equity • Equity • Equity • Equity • Fixed Income • Fixed Inc
Slide 6: Full Breadth of Investment Solutions
FRANKLIN TEMPLETON INVESTMENTS Full Breadth of Investment Solutions FRANKLIN TEMPLETON INVESTMENTS Global Local U.S. Fixed Core / Value Growth Global Int’l Emerging Private Real Fixed Asset Income Hybrid Equity Equity Equity Equity Markets Equity Estate Income Mgmt Key Strategies 35 Municipal Temple
Slide 7: Investment Teams Supported by Global Risk Management, Trading and Services Platforms
FRANKLIN TEMPLETON INVESTMENTS Investment Teams Are Supported by Global Investment Risk Management, Trading and Services Platforms FRANKLIN TEMPLETON INVESTMENTS SPECIALIZED FRANKLIN TEMPLETON MUTUAL SERIES INVESTMENT TEAMS Investment Risk Management and Trading GLOBAL SERVICES PLATFORM Sales Shareh
Slide 8: Investment Performance – U.S. Mutual Funds
1.3 ACCOLADES FRANKLIN TEMPLETON INVESTMENTS Investment Performance – U.S. Mutual Funds Percentage of Long-Term Assets in Top Two Lipper Quartiles 10-Year Periods Ended 12/31/091 Franklin Templeton Franklin Templeton Equity2 Franklin Templeton Fixed Income3 91% 93% 90% 85% 85% 91% 87% 85% 93% 84% 90
Slide 9: Investment Performance – Cross-Border Funds
1.3 ACCOLADES FRANKLIN TEMPLETON INVESTMENTS Investment Performance – Cross-Border Funds Percentage of Long-Term Assets in Top Two Morningstar Quartiles 10-Year Periods ended 12/31/091 Franklin Templeton Franklin Templeton Equity2 Franklin Templeton Fixed Income3 82% 76% 88% 82% 86% 86% 87% 88% 71%
Slide 10: A Pioneer in Global Investing
FRANKLIN TEMPLETON INVESTMENTS A Pioneer in Global Investing Building Our Franklin International Becoming Global Firm Goes Public Expansion FTI Acquisitions Franklin MENA Fund (SICAV) VietCombank JV (Vietnam) 2008 2008 Franklin World Perspectives Fund (SICAV) Acquisitions and Algebra Capital JV (UAE
Slide 11: Our Global Footprint
FRANKLIN TEMPLETON INVESTMENTS Our Global Footprint Offices in Countries Representing 84% of the World's GDP1 Offices in 30+ Countries Clients in 150+ Countries The Americas Europe/Middle East/Africa Asia-Pacific United States (1947) United Kingdom (1986) Netherlands (1997) Russia (1999) Australia (
Slide 12: Portfolio Capabilities Leveraged by Our Global Distribution Infrastructure
FRANKLIN TEMPLETON INVESTMENTS Portfolio Capabilities Are Fully Leveraged by Our Global Distribution Infrastructure Investment Strategies U.S. Fixed Global Core / Value Growth Global Int’l Emerging Local Private Real Income Fixed Hybrid Equity Equity Equity Equity Markets Asset Equity Estate Income
Slide 13: Investment Strategies Deployed Worldwide: Templeton Global Bond Example
FRANKLIN TEMPLETON INVESTMENTS Investment Strategies Are Deployed Worldwide: Templeton Global Bond Example Investment Strategies Templeton Global Bond U.S. Fixed Global Core / Value Growth Global Int’l Emerging Local Private Real Income Fixed Hybrid Equity Equity Equity Equity Markets Asset Equity E
Slide 14: Investment Strategies Deployed Worldwide: Franklin US Government Example
FRANKLIN TEMPLETON INVESTMENTS Investment Strategies Are Deployed Worldwide: Franklin US Government Example Investment Strategies Franklin US Government U.S. Fixed Global Core / Value Growth Global Int’l Emerging Local Private Real Income Fixed Hybrid Equity Equity Equity Equity Markets Asset Equity
Slide 15: Investment Strategies Deployed Worldwide: Templeton Growth Example
FRANKLIN TEMPLETON INVESTMENTS Investment Strategies Are Deployed Worldwide: Templeton Growth Example Investment Strategies Templeton Growth U.S. Fixed Global Core / Value Growth Global Int’l Emerging Local Private Real Income Fixed Hybrid Equity Equity Equity Equity Markets Asset Equity Estate Inco
Slide 16: Broad and Diversified Client and Asset Base
3 FRANKLIN TEMPLETON INVESTMENTS Broad and Diversified Client and Asset Base Assets Under Management in U.S. $ Billions AUM by Region United States 74% $554 Europe 9% $523 Asia-Pacific 8% $451 Canada 6% $416 Middle East/Africa 2% 46% $391 47% Americas 1% 46% 47% 44% 19% 19% AUM by Client Type 19% 20
Slide 17: Our Global Business Is Accelerating
FRANKLIN TEMPLETON INVESTMENTS Our Global Business Is Accelerating AUM and Long-Term Sales by Region1 Cross-Border Long-Term Asset Market Share2 2% 3% 5% 26% 14% 38% 4.9% 5.0% 4.5% 14% 3.7% 3.8% 3.5% 2.9% 2.7% 74% 1.9% 62% AUM by Region Long-Term Sales by Region 12/01 12/02 12/03 12/04 12/05 12/06 1
Slide 18: Depth and Breadth of Our Global Presence
FRANKLIN TEMPLETON INVESTMENTS Depth and Breadth of Our Global Presence $407.9B Countries with Over U.S. $1 Billion in AUM $32.4B $17.4B $15.3B Countries with Product Presence $7.7B $8.2B $7.4B $6.7B $5.8B $4.9B $3.9B $3.2B $2.4B $2.6B $1.5B $1.8B $1.1B Brazil Austria Luxembourg France Singapore Jap
Slide 19: Diversification: A Critical Component of Global Success
FRANKLIN TEMPLETON INVESTMENTS Diversification: A Critical Component of Global Success Franklin Templeton Annual Net New Flows by Top 15 Regional Offices, Fiscal Years 2000-2009 Rank 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 United United United United United United Gulf & E. South India Tai
Slide 20: The Franklin Templeton Values
3 FRANKLIN TEMPLETON INVESTMENTS The Franklin Templeton Values Put Clients First PUT BUILD CLIENTS RELATIONSHIPS • We strive to know and meet our clients' needs, and we fully accept FIRST our fiduciary responsibility to protect shareholders' interests. Build Relationships • We work to establish endu
Slide 21: Put Clients First: Responding to Evolving Customer Needs
FRANKLIN TEMPLETON INVESTMENTS Put Clients First: Responding to Evolving Customer Needs Key Points Franklin Templeton Capabilities • Overseas banks realized the value of • Capitalized on move to open architecture offering third party funds as a way to (Germany, Switzerland, Italy, Spain and Move To
Slide 22: Build Relationships: Working in Partnership
FRANKLIN TEMPLETON INVESTMENTS Build Relationships: Working in Partnership Enduring Relationships with Advisors and Institutions • Relationships with the largest U.S. retail firms average 26 years • Longest institutional separate account relationship dates back to 1948 • 43% of global institutional
Slide 23: Historical Assets Under Management and Net New Flows
3 FRANKLIN TEMPLETON INVESTMENTS Historical Assets Under Management and Net New Flows Ending Assets Under Management Long-Term Sales (for the 12 Months Ended) U.S.$ Billions U.S.$ Billions 800 200 176.1 645.9 170.0 600 523.4 553.5 150 511.3 507.3 120.8 124.8 110.4 400 100 200 50 0 0 Sep-06 Sep-07 Se
Slide 24: Operating Results
3.4 FRANKLIN TEMPLETON INVESTMENTS Operating Results (for the 12 Months Ended) Operating Revenues Operating Income U.S.$ Millions U.S.$ Millions 8,000 2,500 2,068 2,099 6,206 6,032 2,000 6,000 5,051 1,633 4,602 1,401 4,194 1,500 1,203 4,000 1,000 2,000 500 0 0 Sep-06 Sep-07 Sep-08 Sep-09 Dec-09 Sep-
Slide 25: Capital Management
3.4 FRANKLIN TEMPLETON INVESTMENTS Capital Management Cash and Cash Equivalents and Investments vs. Total Debt Stock Repurchase Activity (as of and for (for the 12 Mths Ended) U.S.$ Millions Shares Millions 8,000 20 253.2 260 245.5 5,493 5,777 16 14.2 6,000 5,191 5,237 5,429 11.3 240 12 10.4 232.8 2
Slide 26: BEN Total Return vs. S&P 500 & S&P 500 Financials Indexes
FRANKLIN TEMPLETON INVESTMENTS BEN Total Return vs. S&P 500 & S&P 500 Financials Indexes Com parison of Ten-Year Total Return 12/31/1999 - 12/31/2009 500% 400% 300% 274.04 200% 100% 0% -9.11 -39.08 -100% '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 Franklin Resources, Inc. S&P 500 Index S&P 500 Financial
Slide 27: Our Company — Recognized Over Time and Across the Globe
FRANKLIN TEMPLETON INVESTMENTS Our Company — Recognized Over Time and Across the Globe Mutual Shares Fund and Templeton Growth Fund named Top Funds of the Past 50 Years USA Today, 20101 “Franklin Templeton Is King of the Decade.” Barron’s (U.S.), 2009 and 20102 “Franklin is a stalwart muni-fund mana
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