Franklin Resources, Inc. · NYSE:BEN
Franklin Resources — CLSA AsiaUSA Forum 2010
21 slides from Franklin Resources's conference presentation, Mar 1, 2010
Slide 1: Franklin Resources, Inc. CLSA AsiaUSA Forum – March 1, 2010
FRANKLIN TEMPLETON INVESTMENTS Franklin Resources, Inc. CLSA AsiaUSA Forum – March 1, 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: A Premier Global Investment Management Organization
FRANKLIN TEMPLETON INVESTMENTS Franklin Templeton Investments: A Premier Global Investment Management Organization World-Class Investment Management • $548 billion in assets under management1 with over 350 investment solutions worldwide2 • Fifth-largest U.S. mutual fund manager3 • Second-largest cro
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 Investment Risk Management and Trading GLOBAL SERVICES PLATFORM Sales Shareholder Operations Corporate and and and Services Marketi
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, Mumbai Tokyo • Equity • Equity • Equity • Equity • Equity • Fixed Income • F
Slide 6: Strong Long-Term Investment Performance
1.3 ACCOLADES FRANKLIN TEMPLETON INVESTMENTS Strong Long-Term Investment Performance Percentage of Long-Term Assets in Top Two Quartiles 10-Year Periods Ended 12/31/091 Franklin Templeton Franklin Templeton Franklin Templeton U.S. Mutual Funds1 Cross-Border Funds2 Institutional Composites3 91% 82% 8
Slide 7: Portfolio Capabilities Are Leveraged by Our Global Distribution Infrastructure
FRANKLIN TEMPLETON INVESTMENTS Portfolio Capabilities Are 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 Mgmt D
Slide 8: Investment Strategies Are 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 9: 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 10: 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 11: Our Global Business Is Growing
FRANKLIN TEMPLETON INVESTMENTS Our Global Business Is Growing AUM and Long-Term Sales by Region1 Cross-Border Long-Term Asset Market Share2 2% 3% 5% 5.5% 26% 4.9% 14% 38% 4.5% 14% 3.8% 3.7% 3.5% 2.9% 2.7% 74% 1.9% 62% AUM by Region Long-Term Sales by Region 2001 2002 2003 2004 2005 2006 2007 2008 20
Slide 12: Depth and Breadth of Our Global Presence
FRANKLIN TEMPLETON INVESTMENTS Depth and Breadth of Our Global Presence Countries and Regions with Over U.S. $1 Billion in AUM $407.9 $32.3 $17.4 Countries with $15.3 Product Presence $11.3 $7.7 $8.2 $6.7 $7.4 $5.8 $4.4 $4.9 $3.2 $3.9 $2.4 $2.6 $1.1 $1.5 $1.5 $1.8 Brazil Austria Iberia Lux. France S
Slide 13: India: A Case for Local Asset Management
FRANKLIN TEMPLETON INVESTMENTS India A Case for Local Asset Management AUM by Investment Vehicle Milestones • 1995: First local management business – established as joint venture Local Funds 94% Separate Accounts 6% • 1996: First local fund launched Cross-Border Funds 0% • 2002: Acquired Pioneer ITI
Slide 14: Taiwan: Leveraging U.S. & Cross-Border Funds
FRANKLIN TEMPLETON INVESTMENTS Taiwan Leveraging U.S. & Cross-Border Funds AUM by Investment Vehicle Milestones • 1986: First office opened outside North America Local Funds 0% • 1994: Began offering SICAV funds Separate Accounts 14% Cross-Border Funds 63% • 2004: First institutional mandate U.S. Fu
Slide 15: South Korea: Home Country Investing Bias; But the Market is Opening Up
FRANKLIN TEMPLETON INVESTMENTS South Korea Home Country Investing Bias; But the Market is Opening Up AUM by Investment Vehicle Milestones • 1997: Established as joint venture Local Funds 28% • 2000: Acquired 100% ownership – first foreign owned Separate Accounts 67% AMC in Korea Cross-Border Funds 5
Slide 16: Diversification: A Critical Component of Global Success
FRANKLIN TEMPLETON INVESTMENTS Diversification: A Critical Component of Global Success Franklin Templeton Annual Net New Flows by Top 15 Regional Offices, Fiscal Years 2000-2009 Rank 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 United United United United United United Gulf & E. South India Tai
Slide 17: Historical Assets Under Management and Net New Flows
3 FRANKLIN TEMPLETON INVESTMENTS Historical Assets Under Management and Net New Flows Ending Assets Under Management Long-Term Sales (for the 12 Months Ended) U.S.$ 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 18: 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 19: 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 20: 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 21: Our Company — Recognized Over Time and Across the Globe
FRANKLIN TEMPLETON INVESTMENTS Our Company — Recognized Over Time and Across the Globe #1 Fund Family based on 10-year performance (period ended 12/31/09) Barron’s, 20101,2 “Franklin Templeton Is King of the Decade.” (period ended 12/31/08) Barron’s, 20091,3 Mutual Shares Fund and Templeton Growth F