Franklin Resources, Inc. - BEN STOCK NEWS

Franklin Resources reported a net income of $165.6 million, or $0.32 per diluted share, for Q1 2023, reflecting declines of 29% and 64% from the previous quarter and year, respectively. Operating income also decreased to $194 million, a 44% drop from the prior quarter and 65% from the previous year. Total assets under management (AUM) rose 7% to $1,387.7 billion due to $48.8 billion in net market change and a $34.9 billion acquisition of Alcentra. However, long-term net outflows stood at $10.9 billion. The company achieved adjusted net income of $262.4 million, a 33% decline from Q4 2022. Management highlights diversification efforts and positive trends in cash management strategies amidst a challenging market.

Salt Financial has partnered with Franklin Templeton to create systematic strategies for the Fixed Index Annuity (FIA) market. This collaboration utilizes Salt's patent-pending truVol® Risk Control Engine and Franklin Templeton's extensive portfolio management experience, aimed at enhancing targeting accuracy and improving participation rates in annuity products.

Both firms aim to offer insurance companies innovative index solutions that integrate traditional asset management with advanced volatility control technology.

Franklin Templeton plans to convert its Franklin Focused Growth mutual fund into an exchange-traded fund (ETF) for U.S. investors, subject to shareholder approval. The conversion is expected to be effective in Q4 2023. This will mark the firm's third mutual fund-to-ETF conversion. The Franklin Focused Growth ETF will maintain similar management and investment strategies but will operate as a non-diversified fund. The reorganization was approved by the mutual fund's board in December 2022, with a shareholder approval meeting set for June 30, 2023. If approved, this will be Franklin Templeton's 60th ETF in the U.S., joining its 59 existing ETFs with approximately $10 billion in assets under management.

Franklin Templeton employees showcased their generosity during the holiday season through various charitable initiatives across the globe. Notable activities included volunteering at the Salvation Army's Angel Tree Program and supporting the Edinburgh Children's Hospital Charity. Employees in New York and Poznan contributed gifts and care packages to families in need. The company also sponsored 200 wreaths for veterans at Arlington National Cemetery. Franklin Templeton has over 75 years of investment experience and manages approximately $1.4 trillion in assets.

Franklin Resources, Inc. (NYSE: BEN) reported preliminary month-end assets under management (AUM) of $1,387.5 billion as of December 31, 2022, down from $1,410.6 billion on November 30, 2022. This decline was due to negative market impact partially offset by long-term net inflows. For the quarter, AUM included the positive effects of market performance and the acquisition of Alcentra, despite long-term net outflows of $10.9 billion, which incorporated $12.1 billion in reinvested distributions.

Lexington Partners has promoted seven professionals to Partner, effective January 1, 2023. This announcement follows a remarkable year in which Lexington allocated $8 billion to new investments in private equity and co-investment funds. The new Partners, based in London, Menlo Park, Hong Kong, and New York, bring extensive experience in secondary purchases and co-investments. Lexington has committed $68 billion in capital since inception and has been acquired by Franklin Resources, operating independently as a specialist investment manager.