Franklin Resources, Inc
Franklin Resources, Inc.
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Franklin Resources, Inc. Announces Fiscal Year and Fourth Quarter Results

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

San Mateo, CA, October 28, 2010 - Franklin Resources, Inc. (Franklin Templeton Investments) (NYSE: BEN) today announced net income1 of $1,445.7 million, or $6.33 per share diluted, for the year ended September 30, 2010, as compared to net income1 of $896.8 million, or $3.85 per share diluted, for the year ended September 30, 2009. For the quarter ended September 30, 2010, net income1 was $372.9 million, or $1.65 per share diluted, on revenues of $1,528.4 million. For the quarter ended June 30, 2010, net income1 was $360.5 million, or $1.58 per share diluted, on revenues of $1,534.1 million. For the quarter ended September 30, 2009, net income1 was $367.4 million, or $1.59 per share diluted, on revenues of $1,238.9 million.

Operating income for the quarter ended September 30, 2010 was $509.0 million, as compared to $521.6 million for the prior quarter and $384.7 million for the quarter ended September 30, 2009. The company’s non-operating income (expenses) for the quarter ended September 30, 2010 included $50.9 million of investment and other income (losses), net, as compared to $(7.3) million for the prior quarter and $87.3 million for the quarter ended September 30, 2009.

Total assets under management by the company’s subsidiaries were $644.9 billion at September 30, 2010, as compared to $570.5 billion at June 30, 2010 and $523.4 billion at September 30, 2009. Simple monthly average assets under management during the quarter ended September 30, 2010 were $604.7 billion, as compared to $583.1 billion in the prior quarter and $488.3 billion in the same quarter a year ago. Equity assets comprised 43% of total assets under management at September 30, 2010, as compared to 41% at June 30, 2010 and 47% at September 30, 2009. Fixed-income assets comprised 39% of total assets under management at September 30, 2010, as compared to 40% at June 30, 2010 and 33% at September 30, 2009. Hybrid and other assets accounted for 18% of total assets under management at September 30, 2010, as compared to 19% at June 30, 2010 and 20% at September 30, 2009. Net new flows for the quarter ended September 30, 2010 were $19.4 billion, as compared to $18.8 billion for the prior quarter and $12.2 billion for the same quarter a year ago.

Cash and cash equivalents and investments were $6.8 billion at September 30, 2010, as compared to $5.8 billion at September 30, 2009. Total stockholders’ equity was $7.7 billion at September 30, 2010, as compared to $7.6 billion at September 30, 2009. The company had 224.0 million shares of common stock outstanding at September 30, 2010, as compared to 229.3 million shares outstanding at September 30, 2009. During the quarter ended September 30, 2010, the company repurchased 1.7 million shares of its common stock for a total cost of $172.0 million.

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

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