Profile: Franklin Resources Inc (BEN.N)
11 Dec 2013
Franklin Resources, Inc. (Franklin), incorporated on November 28, 1969, is a holding company. Franklin together with its various subsidiaries (collectively, the Company), is referred to as Franklin Templeton Investments, is a global investment management company offering investment choices under the Franklin, Templeton, Mutual Series, Bissett, Fiduciary and Darby brand names. The Company operates in two segments: investment management and related services, and banking/finance. Its investment management and related services provides services to investment funds in jurisdictions globally, which include the United States- and non- United States-registered open-end and closed-end funds, unregistered funds, and institutional, high net-worth and separately-managed accounts (collectively, its sponsored investment products). The Company’s investment management and related services include fund administration, shareholder services, transfer agency, underwriting, distribution, custodial, trustee and other fiduciary services. Its sponsored investment products include a range of equity, hybrid, fixed-income and cash management funds and accounts, including alternative investment products. It also manages certain sub-advised investment products, which may be sold to the public under one of its brand names or that of other companies. Most of the investment funds it manages are open-end mutual funds that offer their shares to investors. It also offers closed-end funds that issue a set number of shares to investors in a public offering and the shares are then traded on a public stock exchange. Its banking/finance segment provides clients with select retail banking, private banking and consumer lending services through its banking and finance subsidiaries. In November 2012, the Company acquired a majority stake in K2 Advisors Holdings LLC.
Investment Management and Related Services Business
The Company derives substantially all of its revenues from providing investment management and related services to its sponsored investment products and the sub-advised accounts that it manages. The investment management business is conducted through its subsidiaries, including those registered with the United States Securities and Exchange Commission (SEC) as investment advisers, subsidiaries registered as equivalent investment advisers in jurisdictions, including Australia, Brazil, Canada, Hong Kong, India, Japan, Korea, Malaysia, Mexico, Singapore, The Bahamas and the United Kingdom, and certain other subsidiaries. Investment management services include services to managed accounts with full investment discretion, and to advisory accounts with no investment discretion. Its investment management services include fundamental investment research and valuation analyses, including original economic, political, industry and company research, and analyses of suppliers, customers and competitors. Its subsidiaries providing discretionary investment management services for its sponsored investment products and sub-advised accounts either perform or obtain investment research, and determine which securities the sponsored investment products or sub-advised accounts will purchase, hold or sell under the supervision and oversight of the funds’ boards of directors or trustees, if applicable. Its subsidiaries conducting non-discretionary investment management services perform investment research for its clients, and recommend which securities the clients will purchase, hold or sell.
Franklin/Templeton Distributors, Inc. (FTDI), a wholly owned subsidiary of Franklin, acts as the principal underwriter and distributor of shares of most of its open-end the United States Funds. Certain of its non- United States subsidiaries provide sales, distribution and marketing services to its Non- United States Funds distributed outside the United States. Some of its Non- United States Funds are distributed globally on a cross-border basis, while others are distributed exclusively in local markets. It earns sales and distribution fees by distributing its funds pursuant to distribution agreements between FTDI or its non- United States subsidiaries and the funds. Under each distribution agreement, it offers and sells the fund’s shares on a continuous basis and pays certain costs associated with underwriting and distributing the fund’s shares, including the costs of developing and producing sales literature, shareholder reports and prospectuses.
The Company receives shareholder servicing fees for providing transfer agency services, which include providing customer statements, transaction processing, customer service and tax reporting. Its subsidiary, Franklin Templeton Investor Services, LLC (FTIS), serves as shareholder servicing and dividend-paying agent for its open-end the United States Funds. FTIS also is reimbursed for out-of-pocket expenses. FTIS may also pay servicing fees to third-party intermediaries to help offset costs associated with client account maintenance support, statement preparation and transaction processing. The funds reimburse FTIS for these third party payments. Through Fiduciary Trust Company International (Fiduciary Trust), the Company provides investment management and related services to, among others, high net-worth individuals and families, foundations and institutional clients. Through its Canadian high-net-worth business unit, Fiduciary Trust Company of Canada (FTCC), it provides investment management services and offers sponsored investment products to high-net-worth individuals and families.
The Company’s high-net-worth client business seeks to maintain relationships that span generations and help families plan method of intergenerational wealth transfer. It offers clients personalized attention and estate planning in a package of services known as Family Resource Management (FRM). Services under FRM provide clients with an integrated strategy to optimize wealth accumulation and maximize after-tax wealth transfer to the next generation. Evaluation of third-party investment management products or services is performed by the Strategic Advisory Group, an investment advisory group within Fiduciary Trust. The Company provides a range of investment management services to institutional clients, focusing on foundations, endowment funds and government and corporate pension plans. Its subsidiaries offer a range of both the United States and international equity, fixed-income and specialty strategies through a range of investment vehicles, including separate accounts, open-end and closed-end funds and unregistered funds. In the United States, it operates institutional business under the trade name Franklin Templeton Institutional.
Through various legal entities, including Franklin Templeton Institutional, LLC and various non- United States subsidiaries, the Company distributes and markets the different investment management capabilities of its various investment management subsidiaries under the Franklin, Templeton, Mutual Series, Bissett and Darby brand names. Through its various subsidiaries, it also markets and distributes its sponsored investment products to separately-managed accounts. Its subsidiaries, Franklin Templeton Financial Services Corp. and Templeton/Franklin Investment Services, Inc., also serve as direct marketing broker/dealers for institutional investors for certain of its institutional mutual funds, private funds. It offers trust, custody and related services, including administration, estate planning, tax planning and private banking. In addition, it also offers clients a series of other services, including foreign exchange, performance measurement and securities lending. It provides planned giving administration and related custody services for non-profit organizations, including pooled income funds, charitable remainder trusts, charitable lead trusts and gift annuities.
Darby Overseas Partners, L.P. (Darby) is engaged in sponsoring and managing funds that invest in private equity and mezzanine finance transactions in emerging markets in Asia, Latin America and Central/Eastern Europe. Darby offers these investment funds through private placements to institutional and high-net-worth individual investors. In addition, Templeton Asset Management Ltd., an investment adviser, sponsors and manages a limited number of private equity funds, which also invest primarily in emerging markets in Asia, Latin America and Central/Eastern Europe. The Company’s sponsored investment products are offered globally to retail, institutional, high-net-worth and separate account clients, which include individual investors, qualified groups, trustees, tax-deferred or money purchase plans, employee benefit and profit sharing plans, trust companies, bank trust departments and institutional investors. Its sponsored investment products include portfolios managed for corporations, endowments, charitable foundations and pension funds, as well as wealthy individuals and other institutions. It uses various investment techniques to focus on specific client objectives for these specialized portfolios.
The Company’s secondary business segment is banking/finance, which offers select retail banking, private banking and consumer lending services through its bank subsidiaries. Its banking and consumer lending activities include consumer credit and debit cards, real estate equity lines, home equity/mortgage lending, and automobile lending. Fiduciary Trust provides private banking services to high-net-worth clients who maintain trust, custody and/or management accounts. Fiduciary Trust’s private banking and credit products include loans secured by marketable securities, deposit accounts and other banking services. Deposits include demand and savings deposits, from its private banking clients.
Fiduciary Trust offers investment management, custody and related services to high-net-worth individuals and families and to institutional accounts. Its subsidiary, Franklin Capital Corporation (FCC) engages in the purchase, securitization and servicing of retail installment sales. Franklin Templeton Bank & Trust, F.S.B. (FTB&T) provides general consumer loan products, such as credit card loans, unsecured loans, loans secured by marketable securities, mortgage loans, debit card products and automobile loans, and a limited number of commercial real estate loans. FTB&T’s deposit products include demand, savings and time deposits from the general public and brokered time deposits. FTB&T also provides Advisor Director Trust, a directed trust service.
Franklin Resources Inc
BUILDING 920, ONE FRANKLIN PARKW
SAN MATEO CA 94403
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