NEW YORK, Aug. 22, 2024 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Franklin Resources, Inc. ("Franklin" or the "Company") (NYSE: BEN). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.The investigation concerns whether Franklin and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. [Click here for information about joining the class action] On August 21, 2024 ...

JACKSON, Wyo., Aug. 22, 2024 (GLOBE NEWSWIRE) -- Brand Engagement Network Inc. (“BEN”) (Nasdaq: BNAI), an emerging provider of safe and secure customer engagement AI, today announced the promotion of Paul Chang to CEO. In his new role, Paul’s unique expertise, and his long-term experience on BEN’s leadership team, will enable a seamless continuation of operations and execution of the company’s ongoing strategy. With Chang’s promotion, BEN Co-CEO Michael Zacharski will step down from his position with the co ...

ATLANTA, Aug. 22, 2024 (GLOBE NEWSWIRE) -- Holzer & Holzer, LLC is investigating whether Franklin Resources, Inc. (“Franklin” or the “Company”) (NYSE: BEN) complied with federal securities laws. On August 21, 2024, Franklin Resources’ wholly owned subsidiary, Western Asset Management Company, LLC, announced that its co-CIO “recently received a Wells Notice from the Staff of the U.S. Securities and Exchange Commission, and is on a leave of absence to focus on this matter.” Following this news, the price of t ...

Franklin Resources, Inc. (BEN) shares plunged 12.6% and hit a 52-week low of $19.78 in the last trading session. The decline came as Western Asset Management, a unit of Franklin Resources, announced the replacement of its top investment executive amid federal investigations into his conduct.The company replaced Ken Leech, who was serving as the co-chief investment officer (CIO) of its Western Asset Management unit. The move came as the CIO had taken a leave of absence after getting a Wells Notice from the S ...

SAN FRANCISCO, Aug. 21, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Franklin Resources, Inc. (NYSE: BEN) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may assist the investigation to contact its attorneys. Visit: www.hbsslaw.com/investor-fraud/ben Contact the Firm Now: BEN@hbsslaw.com 844-916-0895 Investigation Into Franklin Resources, Inc. (BEN): The investigation focuses on Franklin’s controls over trading-related matters, inclu ...

JACKSON, Wyo., Aug. 14, 2024 (GLOBE NEWSWIRE) -- Brand Engagement Network Inc. (“BEN”) (Nasdaq: BNAI), an emerging provider of safe and secure customer engagement AI, today announced its financial results and key business highlights for the second quarter ended June 30, 2024. “In the second quarter, we made continued progress on market validation initiatives, with meaningful acceleration in new proof of concepts” said Paul Chang, Co-CEO of BEN. “Looking to the second half of 2024, we expect the maturation o ...

Franklin Resources, Inc. (BEN) reported its preliminary assets under management (AUM) of $1.66 trillion as of Jul 31, 2024. This reflected an increase of 1% from the prior month’s level.The improvement in AUM balance was primarily due to the impact of positive markets, partially offset by long-term net outflows. BEN recorded equity assets of $603.7 billion, which increased 1.5% from the previous month. Further, fixed income AUM of $571.3 billion at the end of July 2024 increased 1.2% from the previous month ...

The collaboration marks an ongoing effort to bridge the gap between traditional and decentralized financeNEW YORK, Aug. 8, 2024 /PRNewswire/ -- The Arbitrum Foundation and global asset manager Franklin Templeton today announced the Franklin OnChain U.S. Government Money Fund (FOBXX) is available on Arbitrum, the leading Ethereum Layer 2 blockchain. Investors can gain exposure to FOBXX in digital wallets through the Benji Investments platform, Franklin Templeton's proprietary blockchain-integrated recordkeep ...

Franklin Resources, Inc. (NYSE:BEN) Q3 2024 Earnings Conference Call July 26, 2024 11:00 AM ET Company Participants Selene Oh - Chief Communications Officer and Head of Investor Relations Jennifer M. Johnson - President and Chief Executive Officer Matthew Nicholls - Executive Vice President, Chief Financial Officer and Chief Operating Officer Adam B. Spector - Executive Vice President, Head of Global Distribution Conference Call Participants Alex Blostein - Goldman Sachs Brennan Hawken - UBS Craig Siegentha ...

PART I Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for Q3 and YTD FY2024 and FY2023, including the Putnam Investments acquisition [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Q3 FY2024 saw operating revenues rise to $2.12 billion, but operating income and net income attributable to Franklin Resources declined | Financial Metric | Three Months Ended June 30, 2024 (in millions) | Three Months Ended June 30, 2023 (in millions) | Nine Months Ended June 30, 2024 (in millions) | Nine Months Ended June 30, 2023 (in millions) | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | $2,122.9 | $1,969.0 | $6,266.8 | $5,863.3 | | **Operating Income** | $222.5 | $314.9 | $558.3 | $764.0 | | **Net Income Attributable to Franklin Resources, Inc.** | $174.0 | $227.5 | $549.5 | $587.3 | | **Diluted Earnings per Share** | $0.32 | $0.44 | $1.03 | $1.14 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $33.25 billion by June 30, 2024, driven by the Putnam acquisition, with a corresponding rise in liabilities | Balance Sheet Item | June 30, 2024 (in millions) | September 30, 2023 (in millions) | | :--- | :--- | :--- | | **Total Assets** | $33,254.9 | $30,121.2 | | Cash and cash equivalents | $3,378.5 | $3,686.4 | | Goodwill | $6,198.5 | $6,003.8 | | Intangible assets, net | $5,267.8 | $4,902.2 | | **Total Liabilities** | $18,353.5 | $16,547.3 | | Debt | $3,035.0 | $3,052.8 | | **Total Stockholders' Equity** | $13,635.2 | $12,547.8 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to $413.1 million, while investing activities used less cash, and financing activities provided less cash | Cash Flow Activity (Nine Months Ended June 30) | 2024 (in millions) | 2023 (in millions) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $413.1 | $324.7 | | **Net cash used in investing activities** | ($1,222.7) | ($3,278.2) | | **Net cash provided by financing activities** | $506.4 | $2,492.6 | | **Decrease in cash and cash equivalents** | ($290.7) | ($394.9) | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed disclosures cover accounting policies, the Putnam acquisition, revenue, fair value, CIPs, legal proceedings, and a subsidiary's regulatory investigation - On January 1, 2024, the Company acquired Putnam Investments from Great-West Lifeco Inc. for **31.6 million shares** of its common stock, **$221.7 million in cash** at closing, and **$100.0 million in deferred cash consideration**[25](index=25&type=chunk)[26](index=26&type=chunk) - The Putnam acquisition resulted in goodwill of **$190.2 million**, primarily attributed to expected growth opportunities, and is expected to be tax-deductible[28](index=28&type=chunk)[29](index=29&type=chunk) - Western Asset Management (WAM), a subsidiary, is under parallel investigations by the SEC and U.S. Department of Justice regarding certain past trade allocations of treasury derivatives[57](index=57&type=chunk) - On July 15, 2024, subsequent to the quarter end, the company repaid all outstanding **$250.0 million 3.950% senior notes** issued by Legg Mason[65](index=65&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A covers AUM growth to $1.65 trillion, revenue increase, operating income decline due to acquisition costs, and liquidity [Assets Under Management (AUM)](index=27&type=section&id=Assets%20Under%20Management) Total AUM increased 15% year-over-year to $1.65 trillion, primarily due to the Putnam acquisition, with mixed quarterly flows | AUM by Asset Class | June 30, 2024 (in billions) | June 30, 2023 (in billions) | Percent Change | | :--- | :--- | :--- | :--- | | Equity | $595.0 | $458.0 | 30% | | Fixed Income | $564.5 | $505.1 | 12% | | Alternative | $254.5 | $257.2 | (1%) | | Multi-Asset | $168.1 | $148.3 | 13% | | Cash Management | $64.5 | $62.9 | 3% | | **Total** | **$1,646.6** | **$1,431.5** | **15%** | | Change in AUM (Three Months Ended June 30, 2024) | Amount (in billions) | | :--- | :--- | | Beginning AUM | $1,644.7 | | Long-term net flows | ($3.2) | | Cash management net flows | $3.0 | | Net market change, distributions and other | $2.1 | | **Ending AUM** | **$1,646.6** | [Operating Revenues](index=31&type=section&id=Operating%20Revenues) Q3 operating revenues rose 8% to $2.12 billion, driven by increased investment management, sales, and shareholder servicing fees, partly due to Putnam | Revenue Category (Three Months Ended June 30) | 2024 (in millions) | 2023 (in millions) | Percent Change | | :--- | :--- | :--- | :--- | | Investment management fees | $1,689.9 | $1,613.4 | 5% | | Sales and distribution fees | $358.3 | $304.0 | 18% | | Shareholder servicing fees | $61.8 | $38.8 | 59% | | **Total Operating Revenues** | **$2,122.9** | **$1,969.0** | **8%** | - The effective investment management fee rate (excluding performance fees) decreased to **40.2 basis points** for the quarter from **42.0 basis points** in the prior year, mainly due to lower catch-up fees and the addition of lower-fee products from the Putnam acquisition[98](index=98&type=chunk) [Operating Expenses](index=32&type=section&id=Operating%20Expenses) Total operating expenses increased 15% to $1.90 billion in Q3, primarily due to the Putnam acquisition and higher occupancy and administrative costs | Expense Category (Three Months Ended June 30) | 2024 (in millions) | 2023 (in millions) | Percent Change | | :--- | :--- | :--- | :--- | | Compensation and benefits | $893.8 | $841.2 | 6% | | Sales, distribution and marketing | $481.1 | $406.8 | 18% | | Information systems and technology | $156.6 | $127.3 | 23% | | Occupancy | $104.8 | $56.9 | 84% | | General, administrative and other | $180.1 | $136.5 | 32% | | **Total Operating Expenses** | **$1,900.4** | **$1,654.1** | **15%** | - The **84% increase in occupancy expenses** was driven by an impairment of a right-of-use asset for vacated office space and costs for new leased space in New York City as part of an office consolidation initiative[116](index=116&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains $5.68 billion in liquid assets, utilizing capital for share repurchases and deferred acquisition payments | Category | June 30, 2024 (in millions) | September 30, 2023 (in millions) | | :--- | :--- | :--- | | **Total Liquid Assets** | **$5,676.1** | **$5,873.3** | | Cash and cash equivalents | $3,336.1 | $3,592.8 | | **Debt** | **$3,035.0** | **$3,052.8** | - During the nine months ended June 30, 2024, the company repurchased **7.1 million shares** of common stock at a cost of **$172.0 million**[153](index=153&type=chunk) - Significant deferred cash payments were made for prior acquisitions, including **$400.0 million for Lexington** in April 2024 and **$60.8 million for Alcentra** in November 2023[155](index=155&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in market risk disclosures compared to the fiscal year 2023 Annual Report on Form 10-K - There were no material changes from the market risk disclosures in the Form 10-K for the fiscal year ended September 30, 2023[164](index=164&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal control over financial reporting - The Company's principal executive and financial officers concluded that disclosure controls and procedures were effective as of June 30, 2024[165](index=165&type=chunk) - No changes occurred during the fiscal quarter ended June 30, 2024, that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[166](index=166&type=chunk) PART II Other Information [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 11 for legal proceedings, highlighting ongoing SEC and DOJ investigations into WAM regarding trade allocations - The report refers to Note 11 for a description of legal proceedings, which includes parallel investigations by the SEC and U.S. Department of Justice into Western Asset Management (WAM) regarding past trade allocations[168](index=168&type=chunk)[57](index=57&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported compared to the fiscal year 2023 Annual Report on Form 10-K - There were no material changes from the Risk Factors disclosed in the Annual Report on Form 10-K for fiscal year 2023[169](index=169&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 4.27 million shares in Q3 FY2024, with 34.8 million shares remaining for repurchase authorization | Month | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2024 | 691,857 | $24.79 | | May 2024 | 3,080,243 | $23.58 | | June 2024 | 502,162 | $23.35 | | **Total** | **4,274,262** | | - As of June 30, 2024, **34,832,896 shares** remained available for repurchase under the company's stock repurchase program[171](index=171&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including CEO/CFO certifications and iXBRL financial data files - The exhibits filed with the report include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as iXBRL data files for the financial statements[172](index=172&type=chunk)[176](index=176&type=chunk)