Franklin Resources, Inc. Announces Third Quarter Results.SAN MATEO San Mateo (săn mətā`ō), city (1990 pop. 85,486), San Mateo co., W Calif., on San Francisco Bay; inc. 1894. It is a commercial and retail center with some high-technology manufacturing. San Mateo, Spanish for St. , Calif. -- Franklin Franklin, cities, United States Franklin. 1 City (1990 pop. 12,907), seat of Johnson co., S central Ind., inc. 1823. It is a farm trade center. Manufactures include auto parts, aluminum doors and windows, and copper panels. Resources, Inc. (Franklin Templeton Investments Franklin Resources Inc. NYSE: BEN is an investment firm originally founded in New York in 1947 as Franklin Distributors, Inc. It is listed on the NYSE under the ticker BEN as in Benjamin Franklin, whom founder Charlie Johnson admired. ) (NYSE NYSE See: New York Stock Exchange :BEN) today announced net income of $371.4 million, or $1.41 per share diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , on revenues of $1,317.3 million for the quarter ended June June: see month. 30, 2006. In the quarter ended March 31, 2006, net income was $196.5 million, or $0.74 per share diluted, on revenues of $1,254.8 million. For the quarter ended June 30, 2005, net income was $261.9 million, or $1.00 per share diluted, on revenues of $1,109.7 million. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the quarter ended June 30, 2006 was $452.0 million, as compared to $349.8 million for the prior quarter and $346.5 million for the quarter ended June 30, 2005, an increase of 29% for the quarter ended June 30, 2006 over the prior quarter and an increase of 30% over the same quarter in the prior year. The company's non-operating income for the quarter ended June 30, 2006 included $52.3 million of investment and other income, net, as compared to $55.4 million in the prior quarter and $21.8 million for the quarter ended June 30, 2005. Assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. by the company's subsidiaries were $490.1 billion at June 30, 2006, as compared to $491.6 billion at March 31, 2006 and $425.4 billion at June 30, 2005. Simple monthly average assets under management during the quarter ended June 30, 2006 were $494.6 billion compared to $481.2 billion in the preceding quarter and $416.0 billion in the same quarter a year ago. Equity assets comprised 60% of total assets under management at June 30, 2006 and March 31, 2006 as compared to 57% at June 30, 2005. Fixed-income assets comprised 22% of total assets under management at June 30, 2006 and March 31, 2006, as compared to 24% at June 30, 2005. Hybrid hybrid (hī`brĭd), term applied by plant and animal breeders to the offspring of a cross between two different subspecies or species, and by geneticists to the offspring of parents differing in any genetic characteristic (see genetics). assets accounted for 17% of total assets under management at June 30, 2006, March 31, 2006, and June 30, 2005. Sales exceeded redemptions by $1.3 billion for the quarter ended June 30, 2006, as compared to $2.5 billion for the prior quarter and $7.7 billion for the comparable quarter a year ago. Fiscal Third Quarter 2006 Highlights Performance and Products(1,2) (See important footnotes in "Supplemental Information" section at the end of the release.) --79% of Franklin Templeton's long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. mutual fund assets Fund assets The total value of a portfolio's securities, cash, and other holdings, minus any outstanding debts. were in funds ranked in the top two quartiles of their respective Lipper Business Description Lipper, Inc., a subsidiary of Reuters provides mutual and hedge fund information, analytical tools, data and commentary. Lipper's benchmarking provides a guidepost to asset managers, fund companies, financial intermediaries, traditional media, peer groups for the three-year period, 94% for the five-year period and 96% for the 10-year period ended June 30, 2006.(3,4) --71% of Franklin Templeton's equity mutual fund assets were in funds ranked in the top two quartiles of their respective Lipper peer groups for the three-year period, 92% for the five-year period and 94% for the 10-year period ended June 30, 2006.(3,5) --96% of Franklin Templeton's fixed income mutual fund assets were in funds ranked in the top two quartiles of their respective Lipper peer groups for the three-year period, and 99% for the five- and 10-year periods ended June 30, 2006.(3,6) --74% of Franklin equity mutual fund assets were in funds ranked in the top two quartiles of their respective Lipper peer groups for the three-year period, 90% for the five-year period and 87% for the 10-year period ended June 30, 2006. (3,7) --62% of Templeton Templeton self-centered rat. [Children’s Lit.: Charlotte’s Web] See : Egotism equity mutual fund assets were in funds ranked in the top two quartiles of their respective Lipper peer groups for the three-year period, 90% for the five-year period and 99% for the 10-year period ended June 30, 2006. (3,8) --84% of Mutual Series equity mutual fund assets were in funds ranked in the top two quartiles of their respective Lipper peer groups for the three-year period, and 100% for the five- and 10-year periods ended June 30, 2006. (3,9) --82% of Franklin Templeton's taxable fixed income mutual fund assets were in funds ranked in the top two quartiles of their respective Lipper peer groups for the three-year period, 97% for the five-year period and 94% for the 10-year period ended June 30, 2006.(3,10) --100% of Franklin Templeton's tax-free tax-free adj. Not subject to taxation; tax-exempt. tax-free Adjective not needing to have tax paid on it: a tax-free lump sum Adj. 1. fixed income mutual fund assets were in funds ranked in the top two quartiles of their respective Lipper peer groups for the three-, five- and 10-year periods ended June 30, 2006.(3,11) --Franklin Income Fund ranked in the top two quartiles of the Lipper Mixed-Asset Target Allocation In air defense, the process, following weapon assignment, of allocating a particular target or area to a specific surface-to-air missile unit or interceptor aircraft. Moderate Funds peer group for total return among 392, 271, 209 and 85 funds for the one-, three-, five- and 10-year periods ended June 30, 2006. The fund received Lipper Leader awards for Total Return and Consistent Return, and was rated 5 stars overall by Morningstar among 290 Conservative Allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as funds as of June 30, 2006. (12,21,22) --Franklin Flex A development system for Flash-based applications from Adobe. Introduced in 2004 as a J2EE application, Flex compiles ActionScript code and XML-based user interface descriptions (MXML) into binary Flash files (SWF files). Cap Growth Fund ranked in the top two quartiles of the Lipper Multi-Cap Growth Funds peer group for total return among 414, 355, 284 and 97 funds for the one-, three-, five- and 10-year periods ended June 30, 2006. The fund received a Lipper Leader award for Expense as of June 30, 2006. (13,21) --Franklin Federal Tax-Free Income tax-free income The income received but not subject to income taxes. For example, interest from most municipal bonds is free of federal income taxes and often from state and local income taxes as well. Compare tax-deferred income, tax-sheltered income. Fund ranked in the top two quartiles of the Lipper General Municipal Debt Funds peer group for total return among 259, 248, 224 and 143 funds for the one-, three-, five- and 10-year periods ended June 30, 2006. The fund received Lipper Leader awards for Total Return, Consistent Return and Tax Efficiency, and was rated 4 stars overall by Morningstar among 292 Muni National Long funds as of June 30, 2006. (14,21,22) --Franklin California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). High Yield Municipal Fund ranked in the top decile decile one of the groups when a series of ranked data is divided into ten equal parts, or dividing points between such groups. See also quartile. of the Lipper California Municipal Debt Funds peer group for total return among 121, 116, 98 and 69 funds for the one-, three-, five- and 10-year periods ended June 30, 2006. The fund received Lipper Leader awards for Total Return, Consistent Return and Tax Efficiency, and was rated 5 stars overall by Morningstar among 164 Muni California Long funds as of June 30, 2006. (15,21,22) --Templeton Global Bond Fund ranked in the top decile of the Lipper Global Income Funds peer group for total return among 104, 95, 80 and 50 funds for the one-, three-, five- and 10-year periods ended June 30, 2006. The fund received a Lipper Leader award for Total Return, and was rated 5 stars overall by Morningstar among 154 World Bond funds as of June 30, 2006. (16,21,22) --Templeton World Fund ranked in the top two quartiles of the Lipper Global Multi-Cap Core Funds peer group for total return among 86, 59, 48 and 13 funds for the one-, three-, five- and 10-year periods ended June 30, 2006. The fund received Lipper Leader awards for Total Return and Expense, and was rated 4 stars overall by Morningstar among 403 World Stock funds as of June 30, 2006. (17,21,22) --Mutual Shares Fund ranked in the top two quartiles of the Lipper Multi-Cap Value Funds peer group for total return among 478, 371, 259 and 104 funds for the one-, three-, five- and 10-year periods ended June 30, 2006. The fund received a Lipper Leader award for Preservation, and was rated 4 stars overall by Morningstar among 1070 Large Value funds as of June 30, 2006. (18,21,22) --Mutual Beacon Beacon, city (1990 pop. 13,243), Dutchess co., SE N.Y., on the E bank of the Hudson River; settled 1663, inc. in 1913 when Fishkill Landing and Matteawan villages were united. Fund ranked in the top quintile quin·tile n. 1. The astrological aspect of planets distant from each other by 72° or one fifth of the zodiac. 2. Statistics The portion of a frequency distribution containing one fifth of the total sample. of the Lipper Multi-Cap Core Funds peer group for total return among 819, 585, 430 and 155 funds for the one-, three-, five- and 10-year periods ended June 30, 2006. The fund received Lipper Leader awards for Total Return, Consistent Return and Preservation, and was rated 4 stars overall by Morningstar among 1070 Large Value funds as of June 30, 2006. (19,21,22) --Mutual Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Fund ranked in the top quartile Quartile A statistical term describing a division of observations into four defined intervals based upon the values of the data and how they compare to the entire set of observations. Notes: Each quartile contains 25% of the total observations. of the Lipper Financial Services Funds peer group for total return among 120, 103 and 92 funds for the one-, three- and five-year periods ended June 30, 2006. The fund received Lipper Leader awards for Total Return and Preservation, and was rated 4 stars overall by Morningstar among 126 Specialty-Financial funds as of June 30, 2006. (20,21,22) Performance quoted represents past performance, which cannot predict or guarantee future results. Global Business Developments --Templeton Global Bond Fund received the "Best Fund Managers" award for the Global Funds category in the 2006 Excellence in Fund Management Awards given by Standard & Poor's and BusinessWeek BusinessWeek is a business magazine published by McGraw-Hill. It was first published in 1929 (as The Business Week) under the direction of Malcolm Muir, who was serving as president of the McGraw-Hill Publishing company at the time. in the U.S. The award was based primarily on risk-adjusted total returns for the five-year period ended December December: see month. 31, 2005. Additionally, FTIF FTIF Forwarding Table Index Field Templeton Global Bond Fund, a Luxembourg-registered SICAV SICAV Société d'Investissement à Capital Variable , received a Lipper "Best Fund" award in the Bonds Global category for three- and five-year performance, and ranked #1 for 5-year performance in the Fixed Income Global USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. based category in Standard & Poor's Global Investment Fund Sector awards. --In a quarterly survey of shareholder satisfaction conducted by National Quality Review, a third party customer service evaluator, 94% of customers responding to the survey said that they would recommend Franklin Templeton Investments to others. --In Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , in DALBAR's most recent quarterly rankings, Franklin Templeton Investments' English 1. English - (Obsolete) The source code for a program, which may be in any language, as opposed to the linkable or executable binary produced from it by a compiler. The idea behind the term is that to a real hacker, a program written in his favourite programming language is and French call center services were ranked #1 among broker distributed firms. In addition, Franklin Templeton Investments' Quotential program statements were rated the #1 Wrap Account Wrap Account An account in which a brokerage manages an investor's portfolio for a flat quarterly or annual fee. This fee covers all administrative, commission, and management expenses. Sometimes this also includes funds of funds. Investor Statement, and Franklin Templeton Investments was the only firm to achieve an "Excellent" score in the second bi-annual analysis conducted by DALBAR. --Franklin Templeton Investments received two AsianInvestor 2006 Achievement Awards related to institutional equities: the one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants performance award for Japan Equity and the three-year risk-adjusted performance award for Global Equity. FTIF Franklin Templeton Japan Fund was awarded an "A" rating by Standard & Poor's. --In its most recent quarterly ranking of mutual fund "leaders" in Web support for consumers and financial professionals, DALBAR rated franklintempleton.com as "excellent" among mutual fund consumer websites. --The NJBEST and Franklin Templeton 529 College Savings Plans, offered by the State of New Jersey Higher Education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. Student Assistance Authority and Franklin Templeton Investments, reported that collective assets in the plans surpassed $1 billion. --Launched Templeton India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. Equity Income Fund, the first emerging markets fund available to Indian investors. By June 30, 2006, the fund had raised over $410 million in investments and helped increase the number of shareholder accounts in India to more than 1.8 million. --Launched Franklin Global Real Estate Fund in the U.S. as well as Templeton BRIC BRIC Brazil, Russia, India and China (world affairs) BRIC Brooklyn Information & Culture BRIC Biological Research Information Center (Korea) BRIC Benign Recurrent Intrahepatic Cholestasis Fund, the first fund to offer U.S. investors concentrated access to opportunities in the emerging market economies of Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. , Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). , India and China. --Franklin Templeton Fixed Income Group launched Franklin Templeton Emerging Market Debt Opportunities Fund for institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. . --Franklin Templeton Investments Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. Limited secured its second and final close of Fiduciary fiduciary (fĭd  `shēĕ'rē), in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. International Real Estate Fund 2
(FIRE Fund 2), raising a total of US$400 million.--Launched a privately-placed FTIJ Franklin Templeton Japan QF Fund exclusively for qualified financial institutions in Japan.
Franklin Resources, Inc.
Preliminary Condensed Consolidated Income Statements
Unaudited
(in thousands, except assets under Three months ended
management and per share data) June 30
2006 2005 % Change
---------- ---------- ---------
Operating Revenues
Investment management fees $786,015 $642,034 22%
Underwriting and distribution fees 447,136 386,950 16%
Shareholder servicing fees 65,593 64,609 2%
Consolidated sponsored investment
products income, net 2,753 1,306 111%
Other, net 15,778 14,835 6%
---------------------------------
Total operating revenues 1,317,275 1,109,734 19%
---------------------------------
Operating Expenses
Underwriting and distribution 430,727 359,657 20%
Compensation and benefits 242,686 232,971 4%
Information systems, technology and
occupancy 74,082 73,253 1%
Advertising and promotion 41,309 36,845 12%
Amortization of deferred sales
commissions 31,514 29,361 7%
Amortization of intangible assets 2,650 4,348 (39%)
Intangible assets impairment -- -- --
Provision for governmental
investigations, proceedings and
actions, net -- (8,385) (100%)
Other 42,321 35,205 20%
---------------------------------
Total operating expenses 865,289 763,255 13%
---------------------------------
Operating income 451,986 346,479 30%
---------------------------------
Other Income (Expenses)
Consolidated sponsored investment
products (losses) gains, net (8,352) 4,402 N/A
Investment and other income, net 52,271 21,849 139%
Interest expense (6,682) (9,017) (26%)
---------------------------------
Other income, net 37,237 17,234 116%
---------------------------------
Income before taxes on income 489,223 363,713 35%
Taxes on income 117,809 101,840 16%
---------------------------------
Net income $371,414 $261,873 42%
=================================
Earnings per Share
Basic $1.44 $1.04 38%
Diluted 1.41 1.00 41%
Dividends per share $0.12 $0.10 20%
Special cash dividend $-- $-- --
Average Shares Outstanding (in
thousands)
Basic 257,592 250,475 3%
Diluted 262,876 262,865 --
Operating Margin(1) 34% 31% --
Assets Under Management (in millions)
Beginning of period $491,592 $412,057 19%
Sales 35,353 29,717 19%
Reinvested distributions 2,866 1,900 51%
Redemptions (34,008) (22,013) 54%
Distributions (3,458) (2,417) 43%
Acquisitions 242 -- N/A
(Depreciation) appreciation (2,453) 6,159 N/A
End of period $490,134 $425,403 15%
Simple Monthly Average for Period $494,567 $416,001 19%
Franklin Resources, Inc.
Preliminary Condensed Consolidated Income Statements
Unaudited
(in thousands, except assets under Nine months ended
management and per share data) June 30
2006 2005 % Change
---------- ---------- ---------
Operating Revenues
Investment management fees $2,199,469 $1,801,191 22%
Underwriting and distribution fees 1,307,516 1,104,669 18%
Shareholder servicing fees 194,930 192,088 1%
Consolidated sponsored investment
products income, net 5,589 3,282 70%
Other, net 45,993 45,707 1%
---------- ---------- ---------
Total operating revenues 3,753,497 3,146,937 19%
---------- ---------- ---------
Operating Expenses
Underwriting and distribution 1,224,040 1,018,455 20%
Compensation and benefits 692,348 662,387 5%
Information systems, technology and
occupancy 221,877 209,866 6%
Advertising and promotion 107,776 94,061 15%
Amortization of deferred sales
commissions 95,631 91,356 5%
Amortization of intangible assets 11,359 13,108 (13%)
Intangible assets impairment 68,400 -- N/A
Provision for governmental
investigations, proceedings and
actions, net -- 33,658 (100%)
Other 125,737 104,202 21%
---------- ---------- ---------
Total operating expenses 2,547,168 2,227,093 14%
---------- ---------- ---------
Operating income 1,206,329 919,844 31%
---------- ---------- ---------
Other Income (Expenses)
Consolidated sponsored investment
products (losses) gains, net 19,454 19,013 2%
Investment and other income, net 140,025 87,814 59%
Interest expense (22,995) (25,245) (9%)
---------- ---------- ---------
Other income, net 136,484 81,582 67%
---------- ---------- ---------
Income before taxes on income 1,342,813 1,001,426 34%
Taxes on income 456,914 278,290 64%
---------- ---------- ---------
Net income $885,899 $723,136 23%
=================================
Earnings per Share
Basic $3.46 $2.89 20%
Diluted 3.37 2.78 21%
Dividends per share $0.36 $0.30 20%
Special cash dividend $-- $2.00 (100%)
Average Shares Outstanding (in
thousands)
Basic 256,276 250,417 2%
Diluted 264,266 262,607 1%
Operating Margin(1) 32% 29% --
Assets Under Management (in millions)
Beginning of period $453,065 $361,860 25%
Sales 98,283 91,015 8%
Reinvested distributions 12,667 7,269 74%
Redemptions (88,542) (63,023) 40%
Distributions (15,526) (9,216) 68%
Acquisitions 242 83 192%
(Depreciation) appreciation 29,945 37,415 (20%)
End of period $490,134 $425,403 15%
Simple Monthly Average for Period $475,959 $400,340 19%
Franklin Resources, Inc.
Preliminary Condensed Consolidated Income Statements
Unaudited
(in thousands, except per share data)
Three months ended
30-Jun-06 31-Mar-06 % Change
---------- ---------- --------
Operating Revenues
Investment management fees $786,015 $726,015 8%
Underwriting and distribution fees 447,136 445,501 --
Shareholder servicing fees 65,593 65,065 1%
Consolidated sponsored investment
products income, net 2,753 2,558 8%
Other, net 15,778 15,631 1%
-------------------------------
Total operating revenues 1,317,275 1,254,770 5%
-------------------------------
Operating Expenses
Underwriting and distribution 430,727 413,236 4%
Compensation and benefits 242,686 231,182 5%
Information systems, technology and
occupancy 74,082 73,900 --
Advertising and promotion 41,309 36,130 14%
Amortization of deferred sales
commissions 31,514 32,115 (2%)
Amortization of intangible assets 2,650 4,356 (39%)
Intangible assets impairment -- 68,400 (100%)
Provision for governmental
investigations, proceedings and
actions, net -- -- --
Other 42,321 45,694 (7%)
-------------------------------
Total operating expenses 865,289 905,013 (4%)
-------------------------------
Operating income 451,986 349,757 29%
-------------------------------
Other Income (Expenses)
Consolidated sponsored investment
products (losses) gains, net (8,352) 16,992 (149%)
Investment and other income, net 52,271 55,388 (6%)
Interest expense (6,682) (7,125) (6%)
-------------------------------
Other income, net 37,237 65,255 (43%)
-------------------------------
Income before taxes on income 489,223 415,012 18%
Taxes on income 117,809 218,496 (46%)
-------------------------------
Net income $371,414 $196,516 89%
===============================
Earnings per Share
Basic $1.44 $0.76 89%
Diluted 1.41 0.74 91%
Dividends per share $0.12 $0.12 --
Average Shares Outstanding (in
thousands)
Basic 257,592 258,110 --
Diluted 262,876 265,437 (1%)
Operating Margin(1) 34% 28% --
Employees 7,817 7,540 4%
Billable Shareholder Accounts (in
millions) 18.7 17.6 6%
Franklin Resources, Inc.
Preliminary Condensed Consolidated Income Statements
Unaudited
(in thousands, except per share data)
Three months ended
31-Dec-05 30-Sep-05 30-Jun-05
---------- ---------- -----------
Operating Revenues
Investment management fees $687,439 $655,327 $642,034
Underwriting and distribution fees 414,879 426,941 386,950
Shareholder servicing fees 64,272 62,675 64,609
Consolidated sponsored investment
products income, net 278 1,132 1,306
Other, net 14,584 17,086 14,835
---------------------------------
Total operating revenues 1,181,452 1,163,161 1,109,734
---------------------------------
Operating Expenses
Underwriting and distribution 380,077 387,682 359,657
Compensation and benefits 218,480 207,906 232,971
Information systems, technology and
occupancy 73,895 77,000 73,253
Advertising and promotion 30,337 43,237 36,845
Amortization of deferred sales
commissions 32,002 31,114 29,361
Amortization of intangible assets 4,353 4,351 4,348
Intangible assets impairment -- -- --
Provision for governmental
investigations, proceedings and
actions, net -- -- (8,385)
Other 37,722 43,339 35,205
---------------------------------
Total operating expenses 776,866 794,629 763,255
---------------------------------
Operating income 404,586 368,532 346,479
---------------------------------
Other Income (Expenses)
Consolidated sponsored investment
products (losses) gains, net 10,814 10,108 4,402
Investment and other income, net 32,366 49,587 21,849
Interest expense (9,188) (8,798) (9,017)
---------------------------------
Other income, net 33,992 50,897 17,234
---------------------------------
Income before taxes on income 438,578 419,429 363,713
Taxes on income 120,609 84,934 101,840
---------------------------------
Net income $317,969 $334,495 $261,873
=================================
Earnings per Share
Basic $1.26 $1.33 $1.04
Diluted 1.21 1.28 1.00
Dividends per share $0.12 $0.10 $0.10
Average Shares Outstanding (in
thousands)
Basic 253,208 251,301 250,475
Diluted 265,066 263,981 262,865
Operating Margin(1) 34% 32% --
Employees 7,290 7,156 7,045
Billable Shareholder Accounts (in
millions) 17.1 16.6 17.4
Franklin Resources, Inc.
Summary Balance Sheet
(in thousands)
Preliminary
Unaudited
June 30, 2006 September 30, 2005
-------------- ------------------
Assets
Current assets $4,789,344 $4,620,588
Banking/finance assets 944,443 915,140
Non-current assets 3,240,956 3,358,199
----------------------------------------------------------------------
Total assets $8,974,743 $8,893,927
----------------------------------------------------------------------
Liabilities and Stockholders' Equity
Current liabilities $997,005 $851,897
Banking/finance liabilities 735,352 804,802
Non-current liabilities 824,946 1,476,737
----------------------------------------------------------------------
Total liabilities 2,557,303 3,133,436
Minority interest 111,110 76,107
Total stockholders' equity 6,306,330 5,684,384
----------------------------------------------------------------------
Total liabilities and stockholders'
equity $8,974,743 $8,893,927
----------------------------------------------------------------------
----------------------------------------------------------------------
Ending Shares of Common Stock
Outstanding 252,984 252,745
----------------------------------------------------------------------
(1) Operating margin: Operating income divided by total operating
revenues.
ASSETS UNDER MANAGEMENT BY INVESTMENT OBJECTIVE
(in billions) 30-Jun 31-Mar 31-Dec 30-Sep 30-Jun
-06 -06 % Change -05 -05 -05
-------- -------- --------- ------- -------- ---------
Equity
Global/
international $209.7 $210.8 (1%) $193.9 $185.7 $168.0
Domestic (U.S.) 82.1 84.8 (3%) 79.6 77.9 74.5
------------------------------------------------------
Total equity 291.8 295.6 (1%) 273.5 263.6 242.5
------------------------------------------------------
Hybrid 84.6 83.5 1% 79.7 78.4 73.3
Fixed-Income
Tax-free 54.1 54.3 -- 53.9 53.8 53.5
Taxable:
Domestic
(U.S.) 31.3 31.7 (1%) 32.5 32.7 32.8
Global/
international 22.4 20.9 7% 19.6 18.7 17.6
------------------------------------------------------
Total fixed-
income 107.8 106.9 1% 106.0 105.2 103.9
------------------------------------------------------
Money Market 5.9 5.6 5% 5.6 5.9 5.7
------------------------------------------------------
Total ending
assets $490.1 $491.6 -- $464.8 $453.1 $425.4
------------------------------------------------------
Simple Monthly
Average for
Period $494.6 $481.2 3% $453.3 $440.5 $416.0
======================================================
ASSETS UNDER MANAGEMENT AND FLOWS
(in billions) Three months ended
30-Jun 31-Mar 30-Jun
-06 -06 % Change -05 % Change
--------- --------- --------- -------- ---------
Beginning Assets Under
Management $491.6 $464.8 6% $412.1 19%
U.S. retail assets
Beginning assets $295.0 $279.7 5% $250.8 18%
--------------------------------------------------------------------
Sales 14.7 15.1 (3%) 14.3 3%
Reinvested
distributions 2.6 0.9 189% 1.6 63%
Redemptions (13.2) (12.5) 6% (9.6) 38%
Distributions (3.2) (1.6) 100% (2.2) 45%
(Depreciation)
appreciation (2.7) 13.4 N/A 5.4 N/A
--------------------------------------------------------------------
Ending assets $293.2 $295.0 (1%) $260.3 13%
--------------------------------------------------------------------
Other assets, including international and
institutional
Beginning assets $196.6 $185.1 6% $161.3 22%
--------------------------------------------------------------------
Sales 20.7 17.5 18% 15.4 34%
Reinvested
distributions 0.3 0.5 (40%) 0.3 0%
Redemptions (20.8) (17.5) 19% (12.4) 68%
Distributions (0.3) (0.4) (25%) (0.3) 0%
Acquisitions 0.2 -- N/A -- N/A
Appreciation 0.2 11.4 (98%) 0.8 (75%)
--------------------------------------------------------------------
Ending assets $196.9 $196.6 -- $165.1 19%
--------------------------------------------------------------------
Ending Assets Under
Management $490.1 $491.6 -- $425.4 15%
Total Assets Under
Management
Beginning assets $491.6 $464.8 6% $412.1 19%
--------------------------------------------------------------------
Sales 35.4 32.6 9% 29.7 19%
Reinvested
distributions 2.9 1.4 107% 1.9 53%
Redemptions (34.0) (30.0) 13% (22.0) 55%
Distributions (3.5) (2.0) 75% (2.4) 46%
Acquisitions 0.2 -- N/A -- N/A
(Depreciation)
appreciation (2.5) 24.8 N/A 6.1 N/A
--------------------------------------------------------------------
Ending assets $490.1 $491.6 -- $425.4 15%
--------------------------------------------------------------------
Note: Institutional assets totaling approximately $36.6 billion are
invested in U.S. retail fund and annuity products and are disclosed in
U.S. retail assets in the above table. Total institutional and high
net-worth assets at June 30, 2006 were approximately $156.5 billion,
of which high net-worth assets comprised $11.4 billion.
ASSETS UNDER MANAGEMENT AND FLOWS BY INVESTMENT OBJECTIVE
(in billions)
Three months ended
30-Jun-06 31-Mar-06 30-Jun-05
---------- --------- ----------
Global/international equity
Beginning assets $210.8 $193.9 $163.8
---------------------------------------------------------------------
Sales 15.2 15.4 10.8
Reinvested distributions 0.5 0.3 0.3
Redemptions (15.6) (13.9) (7.1)
Distributions (0.6) -- (0.3)
Acquisitions 0.2 -- --
(Depreciation) appreciation (0.8) 15.1 0.5
---------------------------------------------------------------------
Ending assets 209.7 210.8 168.0
---------------------------------------------------------------------
Domestic (U.S.) equity
Beginning assets 84.8 79.6 72.3
---------------------------------------------------------------------
Sales 4.2 4.3 4.1
Reinvested distributions 1.0 -- 0.4
Redemptions (4.7) (4.8) (4.0)
Distributions (1.0) (0.3) (0.4)
(Depreciation) appreciation (2.2) 6.0 2.1
---------------------------------------------------------------------
Ending assets 82.1 84.8 74.5
---------------------------------------------------------------------
Hybrid
Beginning assets 83.5 79.7 69.1
---------------------------------------------------------------------
Sales 3.7 3.6 4.3
Reinvested distributions 0.6 0.4 0.5
Redemptions (2.5) (2.4) (1.6)
Distributions (0.8) (0.6) (0.6)
Appreciation 0.1 2.8 1.6
---------------------------------------------------------------------
Ending assets 84.6 83.5 73.3
---------------------------------------------------------------------
Tax-free income
Beginning assets 54.3 53.9 51.9
---------------------------------------------------------------------
Sales 1.8 1.8 1.7
Reinvested distributions 0.3 0.3 0.3
Redemptions (1.7) (1.5) (1.3)
Distributions (0.6) (0.5) (0.6)
Appreciation -- 0.3 1.5
---------------------------------------------------------------------
Ending assets 54.1 54.3 53.5
---------------------------------------------------------------------
Taxable fixed-income
Beginning assets 52.6 52.1 49.0
---------------------------------------------------------------------
Sales 5.7 5.1 5.6
Reinvested distributions 0.4 0.3 0.4
Redemptions (4.7) (4.8) (4.6)
Distributions (0.4) (0.5) (0.4)
Appreciation 0.1 0.4 0.4
---------------------------------------------------------------------
Ending assets 53.7 52.6 50.4
---------------------------------------------------------------------
Money market
Beginning assets 5.6 5.6 6.0
---------------------------------------------------------------------
Sales 4.8 2.4 3.2
Reinvested distributions 0.1 0.1 --
Redemptions (4.8) (2.6) (3.4)
Distributions (0.1) (0.1) (0.1)
Appreciation 0.3 0.2 --
---------------------------------------------------------------------
Ending assets 5.9 5.6 5.7
---------------------------------------------------------------------
Ending assets under management $490.1 $491.6 $425.4
Conference Call Information On Thursday Thursday: see week. , July July: see month. 27, 2006, Franklin Resources, Inc. (NYSE:BEN) President and Chief Executive Officer, Greg Johnson Greg Johnson may refer to:
2. It is his duty to use ordinary diligence in the performance of his office, and to account with those whose money he has. , Jim Baio, will lead a live conference call at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss the quarterly results and answer analysts' questions. Access to the teleconference will be available via franklintempleton.com 10 minutes before the start of the call or by dialing (877) 480-6346 in the U.S. or (706) 645-0197 internationally. A replay of the call will be archived on the "Our Company" page of franklintempleton.com through August 10, 2006. The replay can also be accessed by calling (800) 642-1687 in the U.S. or (706) 645-9291 internationally using access code 2850978, after 5:30 p.m. Eastern Time on July 27, 2006, through 11:59 p.m. Eastern Time on August 10, 2006. Questions regarding the teleconference call should be directed to Franklin Resources, Inc., Investor Relations Investor relations The process by which the corporation communicates with its investors. at (650) 525-8900 or Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. at (650) 312-3395. Franklin Resources, Inc. (NYSE:BEN) is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series and Fiduciary Trust A fiduciary trust is a fiduciary [1] relationship in which a trustee holds the title to assets for the beneficiary. The trust's creator is called the grantor. References 1. investment teams. The San Mateo, CA-based company has more than 50 years of investment experience and over $490 billion in assets under management at June 30, 2006. For more information, please call 1-800/DIAL BEN(R) or visit franklintempleton.com. Supplemental Information Investors should carefully consider a fund's investment goals, risks, charges and expenses before investing. To obtain a prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. , which contains this and other information, for any U.S.-registered Franklin Templeton fund, investors should talk to their financial advisors or call Franklin Templeton Distributors, Inc. at 1-800/DIAL BEN(R) (1-800/342-5236). Please read the prospectus carefully before investing.
1. Nothing in this section shall be considered a solicitation to
buy or an offer to sell a security to any person in any
jurisdiction where such offer, solicitation, purchase or sale
would be unlawful under the securities laws of such jurisdiction.
Franklin Templeton Distributors, Inc., One Franklin Parkway, San
Mateo, CA, is the funds' principal distributor and a wholly owned
subsidiary of Franklin Resources, Inc.
2. Morningstar ratings and Lipper rankings for Franklin Templeton
U.S.-based funds (or U.S.-registered funds) are based on Class A
shares, with the exception of Lipper rankings for Mutual Series
funds (other than Mutual Recovery), which are based on Class Z
shares. Class Z shares are offered to qualified investors only and
have no sales charges or Rule 12b-1 fees. Franklin Templeton funds
are compared against a universe of all share classes. All Franklin
Templeton Class A (Class Z) asset data is based on 5/31/06 figures
unless noted otherwise. Indices are unmanaged and one cannot
invest directly in them. Unless otherwise noted, fund returns
quoted reflect Class A shares. Performance returns, ratings and
rankings for other classes may vary.
3. Lipper calculates averages by taking all the funds and share
classes in a peer group and averaging their total returns for the
periods indicated. Lipper tracks 145 peer groups of U.S. retail
mutual funds, and the groups vary in size from 5 to 912 funds.
Lipper total return calculations include reinvested dividends and
capital gains, but do not include sales charges or expense
subsidization by the manager. Results may have been different if
these or other factors had been considered.
Lipper Performance Rankings of Franklin Templeton's Long-Term Mutual
Funds(2)
Quartile Time Periods Ended June 30, 2006
1-Year 3-Year 5-Year 10-Year
Assets (%) Assets (%) Assets (%) Assets (%)
1st & 2nd 65% 79% 94% 96%
----------------------------------------------------------------------
3rd & 4th 35% 21% 6% 4%
----------------------------------------------------------------------
FRANKLIN(23)
Quartile Time Periods Ended June 30, 2006
1-Year 3-Year 5-Year 10-Year
Assets (%) Assets (%) Assets (%) Assets (%)
1st & 2nd 83% 86% 95% 93%
----------------------------------------------------------------------
3rd & 4th 17% 14% 5% 7%
----------------------------------------------------------------------
TEMPLETON(24)
Quartile Time Periods Ended June 30, 2006
1-Year 3-Year 5-Year 10-Year
Assets (%) Assets (%) Assets (%) Assets (%)
1st & 2nd 19% 63% 91% 99%
----------------------------------------------------------------------
3rd & 4th 81% 37% 9% 1%
----------------------------------------------------------------------
MUTUAL SERIES(25)
Quartile Time Periods Ended June 30, 2006
1-Year 3-Year 5-Year 10-Year
Assets (%) Assets (%) Assets (%) Assets (%)
1st & 2nd 80% 84% 100% 100%
----------------------------------------------------------------------
3rd & 4th 20% 16% 0% 0%
----------------------------------------------------------------------
4. Source: Lipper(R) Inc., 6/30/06. Of the eligible Franklin
Templeton long-term mutual funds tracked by Lipper, 37, 47, 53 and
40 funds ranked in the top quartile and 31, 18, 19 and 19 funds
ranked in the second quartile for the one-, three-, five- and
10-year periods, respectively, for their respective Lipper peer
groups.
5. Source: Lipper(R) Inc., 6/30/06. Of the eligible Franklin
Templeton equity mutual funds tracked by Lipper, 15, 14, 19 and 14
funds ranked in the top quartile and 13, 11, 11 and 6 funds ranked
in the second quartile for the one-, three- five- and 10-year
periods, respectively, for their respective Lipper peer groups.
6. Source: Lipper(R) Inc., 6/30/06. Of the eligible Franklin
Templeton non-money market fixed income mutual funds tracked by
Lipper, 22, 33, 34 and 26 funds ranked in the top quartile and 18,
7, 8 and 13 funds ranked in the second quartile for the one-,
three-, five- and 10-year periods, respectively, for their
respective Lipper peer groups.
7. Source: Lipper(R) Inc., 6/30/06. Of the eligible Franklin
equity mutual funds tracked by Lipper, 10, 10, 11 and 7 funds
ranked in the top quartile and 10, 7, 8 and 3 funds ranked in the
second quartile for the one-, three-, five- and 10-year periods,
respectively, for their respective Lipper peer groups.
8. Source: Lipper(R) Inc., 6/30/06. Of the eligible Templeton
equity mutual funds tracked by Lipper, 1, 1, 3 and 3 funds ranked
in the top quartile and 2, 2, 2 and 3 funds ranked in the second
quartile for the one-, three-, five- and 10-year periods,
respectively, for their respective Lipper peer groups.
9. Source: Lipper(R) Inc., 6/30/06. Of the eligible Mutual Series
equity mutual funds tracked by Lipper, 4, 3, 5 and 4 funds ranked
in the top quartile and 1, 2, 1 and 0 funds ranked in the second
quartile for the one-, three-, five- and 10-year periods,
respectively, for their respective Lipper peer groups.
10. Source: Lipper(R) Inc., 6/30/06. Of the eligible Franklin
Templeton non-money market taxable fixed income mutual funds
tracked by Lipper, 4, 5, 6 and 4 funds ranked in the top quartile
and 5, 2, 3 and 2 funds ranked in the second quartile for the
one-, three-, five- and 10-year periods, respectively, for their
respective Lipper peer groups.
11. Source: Lipper(R) Inc., 6/30/06. Of the eligible Franklin
Templeton non-money market tax-free fixed income mutual funds
tracked by Lipper, 18, 28, 28 and 22 funds ranked in the top
quartile and 13, 5, 5 and 11 funds ranked in the second quartile
for the one-, three-, five- and 10-year periods, respectively, for
their respective Lipper peer groups.
12. Source: Lipper(R) Inc., 6/30/06. Franklin Income Fund Class A
ranked 195 in a universe of 392 funds in Lipper's "Mixed-Asset
Target Allocation Moderate Funds" group for the one-year period,
23 of 271 for the three-year period, 3 of 209 for the five-year
period and 3 of 85 for the 10-year period.
13. Source: Lipper(R) Inc., 6/30/06. Franklin Flex Cap Growth Fund
Class A ranked 199 in a universe of 414 funds in Lipper's
"Multi-Cap Growth Funds" group for the one-year period, 114 of 355
for the three-year period, 67 of 284 for the five-year period and
15 of 97 for the 10-year period.
14. Source: Lipper(R) Inc., 6/30/06. Franklin Federal Tax-Free
Income Fund Class A ranked 67 in a universe of 259 funds in
Lipper's "General Municipal Debt Funds" group for the one-year
period, 28 of 248 for the three-year period, 37 of 224 for the
five-year period and 30 of 143 for the 10-year period.
15. Source: Lipper(R) Inc., 6/30/06. Franklin California High
Yield Municipal Fund Class A ranked 5 in a universe of 121 funds
in Lipper's "California Municipal Debt Funds" group for the
one-year period, 4 of 116 for the three-year period, 5 of 98 for
the five-year period and 5 of 69 for the 10-year period.
16. Source: Lipper(R) Inc., 6/30/06. Templeton Global Bond Fund
Class A ranked 2 in a universe of 104 funds in Lipper's "Global
Income Funds" group for the one-year period, 4 of 95 for the
three-year period, 2 of 80 for the five-year period and 5 of 50
for the 10-year period.
17. Source: Lipper(R) Inc., 6/30/06. Templeton World Fund Class A
ranked 40 in a universe of 86 funds in Lipper's "Global Multi-Cap
Core Funds" group for the one-year period, 16 of 59 for the
three-year period, 8 of 48 for the five-year period and 1 of 13
for the 10-year period.
18. Source: Lipper(R) Inc., 6/30/06. Mutual Shares Fund Class Z
ranked 82 in a universe of 478 funds in Lipper's "Multi-Cap Value
Funds" group for the one-year period, 152 of 371 for the
three-year period, 57 of 259 for the five-year period and 14 of
104 for the 10-year period.
19. Source: Lipper(R) Inc., 6/30/06. Mutual Beacon Fund Class Z
ranked 150 in a universe of 819 funds in Lipper's "Multi-Cap Core
Funds" group for the one-year period, 65 of 585 for the three-year
period, 27 of 430 for the five-year period and 27 of 155 for the
10-year period.
20. Source: Lipper(R) Inc., 6/30/06. Mutual Financial Services
Fund Class Z ranked 25 in a universe of 120 funds in Lipper's
"Financial Services Funds" group for the one-year period, 16 of
103 for the three-year period and 13 of 92 for the five-year
period.
21. Source: Lipper(R) Inc., 6/30/06. A Lipper Leaders distinction
does not imply that a fund named as a Lipper Leader had the best
performance in its category. Lipper Leader awards are based on
Class A shares. Lipper ratings for Consistent Return reflect
funds' historical risk-adjusted returns, adjusted for volatility,
relative to peers. Lipper ratings for Total Return reflect funds'
historical total return performance relative to peers. Lipper
ratings for Preservation reflect funds' historical loss avoidance
relative to other funds within the same asset class. Preservation
ratings are relative, rather than absolute, measures, and funds
named Lipper Leaders for Preservation may still experience losses
periodically; those losses may be larger for equity and mixed
equity funds than for fixed income funds. Lipper ratings for Tax
Efficiency reflect funds' historical success in postponing taxable
distributions relative to peers. Lipper ratings for Expense
reflect funds' expense minimization relative to peers with similar
load structures. Lipper ratings are computed for all Lipper
classifications with five or more distinct portfolios and span
both equity and fixed-income funds (e.g., large-cap core, general
U.S. Treasury, etc.). The Lipper ratings are subject to change
every month and are based on an equal-weighted average of
percentile ranks for the Consistent Return, Total Return,
Preservation, Tax-Efficiency, and Expense metrics over three-,
five- and 10-year periods (if applicable). 20% of funds in each
peer group are named Lipper Leaders, the next 20% receive a score
of 2, the middle 20% are scored 3, the next 20% are scored 4 and
the lowest 20% are scored 5. Franklin Income Fund, in Lipper's
Mixed-Asset Target Allocation Moderate Funds classification,
received the following ratings for the three-, five- and 10-year
periods respectively: Total Return: Lipper Leader (271), Lipper
Leader (209), Lipper Leader (85); Consistent Return: Lipper Leader
(262), Lipper Leader (202), 2 (74). Franklin Flex Cap Growth Fund,
in Lipper's Multi-Cap Growth Funds classification, received the
following ratings for the three-, five- and 10-year periods
respectively: Expense: Lipper Leader (127), Lipper Leader (117), 2
(53). Franklin Federal Tax-Free Income Fund, in Lipper's General
Municipal Debt Funds classification, received the following
ratings for the three-, five- and 10-year periods respectively:
Total Return: Lipper Leader (248), Lipper Leader (224), 2 (143);
Consistent Return: 2 (238), 2 (216), 2 (114); Tax Efficiency:
Lipper Leader (248), Lipper Leader (224), Lipper Leader (143).
Franklin California High Yield Municipal Fund, in Lipper's
California Municipal Debt Funds classification, received the
following ratings for the three-, five- and 10-year periods
respectively: Total Return: Lipper Leader (116), Lipper Leader
(98), Lipper Leader (69); Consistent Return: 2 (113), Lipper
Leader (98), Lipper Leader (50); Tax Efficiency: Lipper Leader
(116), Lipper Leader (98), Lipper Leader (69). Templeton Global
Bond Fund, in Lipper's Global Income Funds classification,
received the following ratings for the three-, five- and 10-year
periods respectively: Total Return: Lipper Leader (95), Lipper
Leader (80), Lipper Leader (50). Templeton World Fund, in Lipper's
Global Multi-Cap Core Funds classification, received the following
ratings for the three-, five and 10-year periods respectively:
Total Return: 2 (59), Lipper Leader (48), Lipper Leader (13);
Expense: Lipper Leader (20), Lipper Leader (17), Lipper Leader
(6). Mutual Shares Fund, in Lipper's Multi-Cap Value Funds
classification, received the following ratings for the three-,
five- and 10-year periods respectively: Preservation (in Equity
asset class): Lipper Leader (8117), Lipper Leader (6387), N/A
(N/A). Mutual Beacon Fund, in Lipper's Multi-Cap Core Funds
classification, received the following ratings for the three-,
five- and 10-year periods respectively: Total Return: Lipper
Leader (585), Lipper Leader (430), N/A (N/A); Consistent Return:
Lipper Leader (564), Lipper Leader (421), N/A (N/A); Preservation
(in Equity asset class): Lipper Leader (8117), Lipper Leader
(6387), N/A (N/A). Mutual Financial Services Fund, in Lipper's
Financial Services Funds classification, received the following
ratings for the three-, five- and 10-year periods respectively:
Total Return: Lipper Leader (103), Lipper Leader (92), N/A (N/A);
Preservation (in Equity asset class): Lipper Leader (8117), Lipper
Leader (6387), N/A (N/A). Lipper ratings are not intended to
predict future results, and Lipper does not guarantee the accuracy
of this information. More information is available at
www.lipperleaders.com. Lipper Leader Copyright 2003, Reuters, All
Rights Reserved.
22. Source: Morningstar(C), Inc., 6/30/06. For each fund with at
least a three-year history, Morningstar calculates a Morningstar
Rating based on a Morningstar Risk-Adjusted Return measure that
accounts for variation in a fund's monthly performance (including
the effects of sales charges, loads, and redemption fees), placing
more emphasis on downward variations and rewarding consistent
performance. The top 10% of funds in each category receive 5
stars, the next 22.5% receive 4 stars, the next 35% receive 3
stars, the next 22.5% receive 2 stars and the bottom 10% receive 1
star. (Each share class is counted as a fraction of one fund
within this scale and rated separately, which may cause slight
variations in the distribution percentages.) The Overall
Morningstar Rating for a fund is derived from a weighted-average
of the performance figures associated with its three-, five- and
10-year (if applicable) Morningstar Rating metrics. Past
performance does not guarantee future results. Morningstar Rating
is for the A share class only; other classes may have different
performance characteristics. The following fund was rated against
403; 314; 136 World Stock funds for the respective three-, five-
and 10-year periods ended 6/30/06, as applicable. For the three-,
five- and 10-year periods ended 6/30/06, the Morningstar ratings
were: Templeton World Fund 3, 4, 4. The following funds were rated
against 1070; 801; N/A Large Value funds for the respective three-
five- and 10-year periods ended 6/30/06, as applicable. For the
three-, five- and 10-year periods ended 6/30/06, the Morningstar
ratings were: Mutual Shares Fund 3, 4, N/A and Mutual Beacon Fund
3, 4, N/A. The following fund was rated against 126; 112; N/A
Specialty-Financial funds for the respective three-, five- and
10-year periods ended 6/30/06, as applicable. For the three-,
five- and 10-year periods ended 6/30/06, the Morningstar ratings
were: Mutual Financial Services Fund 4, 4, N/A. The following fund
was rated against 292; 275; 198 Muni National Long funds for the
respective three-, five- and 10-year periods ended 6/30/06, as
applicable. For the three-, five- and 10-year periods ended
6/30/06, the Morningstar ratings were: Franklin Federal Tax-Free
Income Fund 3, 3, 4. The following fund was rated against 164;
144; 112 Muni California Long funds for the respective three-,
five- and 10-year periods ended 6/30/06, as applicable. For the
three-, five- and 10-year periods ended 6/30/06, the Morningstar
ratings were: Franklin California High Yield Municipal Fund 5, 5,
5. The following fund was rated against 290; 174; 65 Conservative
Allocation funds for the respective three-, five- and 10-year
periods ended 6/30/06, as applicable. For the three-, five- and
10-year periods ended 6/30/06, the Morningstar ratings were:
Franklin Income Fund 5, 5, 5. The following fund was rated against
154; 136; 84 World Bond funds for the respective three-, five- and
10-year periods ended 6/30/06, as applicable. For the three-,
five- and 10-year periods ended 6/30/06, the Morningstar ratings
were: Templeton Global Bond Fund 5, 5, 4.
23. Source: Lipper(R) Inc., 6/30/06. Of the eligible Franklin
long-term mutual funds tracked by Lipper, 31, 42, 44 and 32 funds
ranked in the top quartile, 28, 14, 16 and 16 funds ranked in the
second quartile, 13, 11, 7 and 6 funds ranked in the third
quartile, and 6, 3, 3 and 5 funds ranked in the fourth quartile.
24. Source: Lipper(R) Inc., 6/30/06. Of the eligible Templeton
long-term mutual funds tracked by Lipper, 2, 2, 4 and 4 funds
ranked in the top quartile, 2, 2, 2 and 3 funds ranked in the
second quartile, 2, 3, 2 and 1 funds ranked in the third quartile,
and 5, 3, 1 and 1 funds ranked in the fourth quartile.
25. Source: Lipper(R) Inc., 6/30/06. Of the eligible Mutual Series
long-term mutual funds tracked by Lipper, 4, 3, 5 and 4 funds
ranked in the top quartile, 1, 2, 1 and 0 funds ranked in the
second quartile, 2, 1, 0 and 0 funds ranked in the third quartile,
and 0, 0, 0 and 0 funds ranked in the fourth quartile.
Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. The financial results in this press release are preliminary. Statements in this press release regarding Franklin Resources, Inc., which are not historical facts, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, that could cause the actual results and outcomes to differ materially from any future results or outcomes expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. These and other risks, uncertainties and other important factors are described in more detail in Franklin's recent filings with the U.S. Securities and Exchange Commission, including, without limitation, in Risk Factors and Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations in Franklin's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended September September: see month. 30, 2005, and Franklin's Form 10-Q Form 10-Q See 10-Q. filings. --Our ability to repatriate repatriate To bring home assets that are currently held in a foreign country. Domestic corporations are frequently taxed on the profits that they repatriate, a factor inducing the firms to leave overseas the profits earned there. foreign earnings at the amount currently anticipated is based on current interpretations of the American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Jobs Creation Act of 2004, timely completion of the planned repatriation Repatriation The process of converting a foreign currency into the currency of one's own country. Notes: If you are American, converting British Pounds back to U.S. dollars is an example of repatriation. and relatively stable foreign exchange rates. --We are subject to extensive and often complex, overlapping and frequently changing regulation domestically and abroad. --Regulatory and legislative actions and reforms, particularly those specifically focused on the mutual fund industry, are making the regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. environment in which we operate more costly and future actions and reforms could adversely impact our assets under management, increase costs and negatively impact our profitability and future financial results. --Any significant limitation or failure of our software applications and other technology systems that are critical to our operations could constrain con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. our operations. --We face risks, and corresponding potential costs and expenses, associated with conducting operations and growing our business in numerous foreign countries. --We depend on key personnel and our financial performance could be negatively affected by the loss of their services. --Strong competition from numerous and sometimes larger companies with competing offerings and products could limit or reduce sales of our products, potentially resulting in a decline in our market share, revenues and net income. --Changes in the distribution channels on which we depend could reduce our revenues and hinder hin·der 1 v. hin·dered, hin·der·ing, hin·ders v.tr. 1. To be or get in the way of. 2. To obstruct or delay the progress of. v.intr. our growth. --The amount or mix of our assets under management are subject to significant fluctuations and could negatively impact our revenues and income. --Our increasing focus on international markets as a source of investments and sales of investment products subject us to increased exchange rate and other risks in connection with earnings and income generated overseas. --Poor investment performance of our products could affect our sales or reduce the level of assets under management, potentially negatively impacting our revenues and income. --We could suffer losses in earnings or revenue if our reputation is harmed. --Our future results are dependent upon maintaining an appropriate level of expenses, which are subject to fluctuation Fluctuation A price or interest rate change. . --Our ability to successfully integrate widely varied business lines can be impeded im·pede tr.v. im·ped·ed, im·ped·ing, im·pedes To retard or obstruct the progress of. See Synonyms at hinder1. [Latin imped by systems and other technological limitations. --Our inability to successfully recover should we experience a disaster or other business continuity problem could cause material financial loss, loss of human capital, regulatory actions, reputational harm or legal liability. --Certain of the portfolios we manage, including our emerging market portfolios, are vulnerable to market-specific political, economic or other risks, any of which may negatively impact our revenues and income. --Our revenues, earnings and income could be adversely affected if the terms of our management agreements are significantly altered or these agreements are terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: by the funds we advise. --Diverse and strong competition limits the interest rates that we can charge on consumer loans. --Future sales of our common stock in the public market could adversely affect our stock price. --Civil litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. arising out of or relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc previously settled governmental investigations or other matters, governmental or regulatory investigations and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. examinations and the legal risks associated with our business could adversely impact our assets under management, increase costs and negatively impact our profitability and/or our future financial results. --Our ability to meet cash needs depends upon certain factors, including our asset value, credit worthiness wor·thy adj. wor·thi·er, wor·thi·est 1. Having worth, merit, or value; useful or valuable. 2. Honorable; admirable: a worthy fellow. 3. and the market value of our stock. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion