Franklin Resources, Inc
Franklin Resources, Inc.
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Franklin Resources, Inc. Announces Third Quarter Results

From: Franklin Resources, Inc.
Contact: Matt Walsh
Telephone:(650) 312-2245

San Mateo, CA, July 30, 2009 - Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) today announced net income of $297.7 million, or $1.29 per share diluted, on revenues of $1,073.6 million for the quarter ended June 30, 2009. For the quarter ended March 31, 2009, net income was $110.8 million, or $0.48 per share diluted, on revenues of $912.3 million. For the quarter ended June 30, 2008, net income was $403.3 million, or $1.71 per share diluted, on revenues of $1,521.6 million.

Operating income for the quarter ended June 30, 2009 was $326.2 million, as compared to $223.3 million for the prior quarter and $532.2 million for the quarter ended June 30, 2008. Other, net operating revenues for the quarter ended June 30, 2009 included a $0.8 million decline in the fair value of certain retained interests in securitization transactions, as compared to a decline of $26.0 million for the prior quarter and a gain of $0.3 million for the quarter ended June 30, 2008.

The company’s non-operating income (expenses) for the quarter ended June 30, 2009 included $52.3 million of investment and other income, net, as compared to $33.9 million of losses for the quarter ended March 31, 2009, and $34.0 million of income for the quarter ended June 30, 2008.

Total assets under management by the company’s subsidiaries were $451.2 billion at June 30, 2009, as compared to $391.1 billion at March 31, 2009 and $580.2 billion at June 30, 2008. Simple monthly average assets under management during the quarter ended June 30, 2009 were $428.0 billion, as compared to $396.6 billion in the prior quarter and $602.9 billion in the same quarter a year ago. Equity assets comprised 46% of total assets under management at June 30, 2009, as compared to 44% of total assets under management at March 31, 2009 and 55% of total assets under management at June 30, 2008. Fixed-income assets comprised 33% of total assets under management at June 30, 2009, as compared to 35% of total assets under management at March 31, 2009 and 25% of total assets under management at June 30, 2008. Hybrid assets accounted for 19% of total assets under management at June 30, 2009, March 31, 2009 and June 30, 2008. Net new flows for the quarter ended June 30, 2009 were $6.0 billion, as compared to $(5.5) billion for the prior quarter and $1.2 billion for the same quarter a year ago.

Cash and cash equivalents and investments were $5.5 billion at June 30, 2009, as compared to $5.2 billion at September 30, 2008. Stockholders’ equity was $7.3 billion at June 30, 2009, as compared to $7.1 billion at September 30, 2008. The company had 230.4 million shares of common stock outstanding at June 30, 2009, as compared to 232.8 million shares outstanding at September 30, 2008. During the quarter ended June 30, 2009, the company repurchased 1.7 million shares of its common stock for a total cost of $109.7 million.

(The preceding paragraphs only represent a portion of the press release.)

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