Franklin Resources believes a penny saved is a penny lost -- if it's not wisely invested. Operating as Franklin Templeton Investments, the firm manages more than 100 mutual funds that invest in international and domestic stocks; taxable and tax-exempt money market instruments; and corporate, municipal, and US government bonds. Franklin Resources also offers separately managed accounts, closed-end funds, insurance product funds, and retirement and college savings plans. Its investment products are sold through more than 1,600 banks, securities firms, and financial advisors under the Franklin, Templeton, Mutual Series, Bissett, Darby, and Fiduciary banners.
In addition to its core business, Franklin Resources also provides shareholder services and manages investments for high-net-worth clients and institutional investors. Retail banking, private banking, auto finance, and trust services are offered through Franklin Templeton Bank & Trust, Franklin Capital, Fiduciary Trust Company International, and other subsidiaries. Serving some 21 million shareholder accounts, Franklin Resources and its subsidiaries have approximately $660 billion in assets under management.
A majority of Franklin Resources' assets under management is in equity and fixed-income investments, though the company also offers hybrid and cash management investment strategies. It has been increasing its focus on alternative investments, establishing a unit with capabilities in private equity, real estate, and asset allocation strategies, among others. In 2010 Franklin Resources acquired a 20% stake in Pelagos Capital Management, a Boston-based investment advisor that employs commodity, managed futures, and hedge fund replication strategies. Franklin Resources also has units that make private equity investments in emerging markets in Asia, Central and South America, and central and eastern Europe.
The company continues to expand its geographic reach. It does most of its business in North America, but has been adding assets under management in Europe and the Asia-Pacific region. Since 2008 the company has established asset management groups or joint ventures in countries such as Brazil, China, Dubai, India, Japan, and Vietnam. All told, Franklin Resources has offices in some 30 countries and has clients in more than 150. The company expanded in Australia and the UK through the 2011 acquisitions of Balanced Equity Management and the fund management business of Rensburg Sheppards, respectively.
Most of Franklin Resources' revenues come from investment management fees, which are directly tied to its assets under management. Client inflows and assets gained from acquisitions more than offset market depreciation during fiscal 2011 and, in turn, its net income increased by about a third.
Descendants of founder Rupert Johnson Sr. own about a third of Franklin Resources. – less