Franklin Resources Inc Stock Price, News & Analysis

Franklin Resources, Inc. (NYSE: BEN) has partnered with FIS to enhance its global transfer agency services. As a result, FIS will operate Franklin Templeton's transfer agent function, improving client service and operational efficiency. The transition will affect approximately 1,450 employees, providing them opportunities within FIS or a redesigned Franklin Templeton team. This strategic move aims to streamline operations post the acquisition of Legg Mason, allowing clients easier access to fund transactions. Franklin Templeton manages $1.56 trillion in assets globally.

Franklin Limited Duration Income Trust (FTF) has announced the estimated sources of distributions for the fiscal year 2021, with a distribution per share of $0.0770 on November 15, 2021. The breakdown is $0.0437 (57%) from net investment income, $0.00 (0%) from short-term capital gains, $0.00 (0%) from long-term capital gains, and $0.0333 (43%) as a return of capital. The fund aims for a minimum annual distribution rate of 10% based on average NAV, subject to continuous review. Investors are advised not to interpret these distributions as a direct reflection of investment performance.

Franklin Universal Trust (NYSE: FT) announced its estimated distribution sources for the monthly payment scheduled on November 15, 2021. The distribution per share is set at $0.0425, with 95% attributed to net investment income and 5% to net realized short-term capital gains. For the fiscal year-to-date ending September 30, 2021, the cumulative distribution remains at $0.0425 (100% from net investment income). Shareholders are advised that these estimates are not for tax reporting and will receive a Form 1099-DIV for accurate reporting.

Franklin Resources reported preliminary month-end assets under management (AUM) of $1,561.7 billion as of October 31, 2021, a rise from $1,530.1 billion in September. This growth was driven by positive market performance, despite slight long-term net outflows. The reclassification of asset classes contributed to this change, resulting in a $16.1 billion net increase in Equity AUM and a $14.1 billion net decrease in Fixed Income AUM. Overall, the company continues to focus on integrating its recent acquisitions.

Franklin Resources, Inc. (NYSE:BEN) appointed Adele Taylor as Senior Vice President and Lead of Corporate Strategy and Corporate Development, effective November 1. Taylor, who has over a decade of experience at McKinsey & Company, will enhance Franklin Templeton's strategic direction in investment management. The firm aims to capitalize on growth opportunities and integrate new technologies under Taylor's leadership. Franklin Templeton serves clients in over 165 countries and manages over $1.5 trillion in assets as of September 30, 2021.

Templeton Global Income Fund [NYSE: GIM] announced a monthly distribution of $0.0355 per share, payable on November 30, 2021, with a record date of November 15, 2021. The Fund operates under a managed distribution plan with an annual minimum fixed rate of 7.5%, aimed at providing consistent income to shareholders. However, this plan's effectiveness in reducing market price discounts to NAV is uncertain. The Board retains the right to amend or terminate the plan without prior notice, which could negatively impact share pricing.

Templeton Emerging Markets Income Fund (NYSE: TEI) has announced a monthly distribution of $0.0684 per share, payable on November 30, 2021, to shareholders on record by November 15, 2021. This distribution is part of a managed distribution plan that targets a fixed annual rate of 10% based on the Fund's average net asset value. The plan aims to provide consistent payments but may include returns of capital and is subject to review and modification by the Board. Shareholders are advised to consider the Fund's overall performance rather than just this distribution.

Franklin Resources (NYSE:BEN) has announced the acquisition of Lexington Partners, a leading manager in secondary private equity and co-investment funds, for $1.75 billion. This deal aims to enhance Franklin Templeton’s alternative asset offerings and capitalize on the growing demand for private equity investments. Lexington, with over $55 billion in commitments and a substantial AUM of $34 billion, will operate under Franklin Templeton's management with its current team. The acquisition is expected to close by the end of Q2 2022 and is projected to be immediately accretive to adjusted earnings per share.

Franklin Resources, Inc. (NYSE: BEN) reported preliminary net income of $665.7 million or $1.30 per diluted share for Q4 FY2021, up from $438.4 million or $0.86 per diluted share in Q3 FY2021 and $78.9 million or $0.15 in Q4 FY2020. For FY2021, net income reached $1,831.2 million or $3.57 per diluted share versus $798.9 million or $1.59 the previous year. Operating income was $531.5 million for the quarter and $1,875.0 million for the year. AUM decreased by 1% to $1,530.1 billion during the quarter but rose 8% year-over-year.