Mission Statement, Vision, & Core Values (2024) of Franklin Resources, Inc. (BEN).

An Overview of Franklin Resources, Inc. (BEN)

General Summary of Franklin Resources, Inc. (BEN)

Franklin Resources, Inc. (NYSE: BEN), commonly referred to as Franklin Templeton, is a global investment management organization founded in 1947. The company offers a broad range of investment solutions, including mutual funds, institutional investment management, and private equity. As of 2024, Franklin Resources manages approximately $1.65 trillion in assets under management (AUM), with significant operations in the United States, Europe, and Asia-Pacific regions.

The company’s product offerings include:

• Investment management fees
• Sales and distribution fees
• Shareholder servicing fees
• Other related financial services

In 2024, Franklin Resources reported total sales revenue of $6.27 billion, reflecting an increase from the previous year, driven by strong performance in investment management services and increased market demand for its products.

Company's Financial Performance in the Latest Financial Reports

In the third quarter of 2024, Franklin Resources reported a net income of $174.0 million, down from $227.5 million in the same period of 2023. The earnings per share (EPS) for the quarter was $0.32, compared to $0.44 in the prior year, representing a 27% decrease. For the nine-month period ending June 30, 2024, net income attributable to Franklin Resources was $549.5 million, down from $587.3 million year-over-year.

Key financial figures from the latest reports include:

The company experienced a decline in net income and diluted EPS, attributed to various factors, including increased operating expenses and market fluctuations. Despite this, total operating revenues saw an increase, indicating robust sales performance, particularly in investment management fees, which reached $5.06 billion for the nine-month period.

Introduction to Company as a Leader in the Industry

Franklin Resources, Inc. is recognized as one of the leading investment management firms globally, leveraging its extensive experience and wide-ranging investment capabilities. The company's strategic acquisitions, including the recent purchase of Putnam Investments, have significantly bolstered its market position and expanded its product offerings.

As of June 30, 2024, Franklin's assets under management (AUM) by asset class are as follows:

Franklin Resources, Inc. continues to adapt to market trends and investor needs, maintaining its status as a key player in the investment management sector. For more insights into the company’s operational strategies and market performance, further exploration is encouraged.

Mission Statement of Franklin Resources, Inc. (BEN)

Mission Statement Overview

Franklin Resources, Inc. (BEN) emphasizes its commitment to delivering high-quality investment management services through its mission statement. This statement serves as a guiding framework for the company's long-term goals and objectives, aligning its operations with the needs of clients and stakeholders.

Core Components of the Mission Statement

1. Client-Centric Focus

Franklin Resources prioritizes the interests of its clients, aiming to provide tailored investment solutions that meet diverse financial goals. In the nine months ended June 30, 2024, the company reported investment management fees totaling $5,056 million, reflecting a 5% increase from the previous year, driven by a 10% increase in average assets under management (AUM).

2. Commitment to Integrity and Transparency

The company maintains a strong commitment to ethical practices, transparency, and integrity in all its dealings. The effective income tax rate for the three months ended June 30, 2024, was 22.7%, compared to 25.4% in the previous year, indicating a focus on responsible financial management.

3. Innovation and Continuous Improvement

Franklin Resources invests in innovation to enhance its product offerings and operational efficiency. The company’s total operating revenues increased by 8% to $2,122.9 million for the three months ended June 30, 2024, driven by significant growth in sales and distribution fees.

Franklin Resources, Inc. leverages these core components of its mission statement to align its strategic initiatives and operational practices with its overarching commitment to excellence in investment management. The company's focus on client satisfaction, ethical practices, and innovation positions it favorably in the competitive financial services landscape.

Vision Statement of Franklin Resources, Inc. (BEN)

Vision for Global Leadership

Franklin Resources, Inc. (BEN) aims to establish itself as a global leader in the investment management industry by providing innovative solutions and superior service to its clients. As of June 30, 2024, the company reported approximately $1.646 trillion in assets under management (AUM), reflecting a significant increase of $272.4 billion or 20% over the previous nine months .

Commitment to Client-Centric Solutions

The vision emphasizes a client-centric approach, focusing on delivering tailored investment strategies. In the first three quarters of 2024, long-term inflows reached $236.5 billion, showcasing an 18% increase compared to the previous year . This growth was primarily driven by higher inflows in equity and multi-asset funds, highlighting the company's adaptability and responsiveness to client needs.

Embracing Innovation and Technology

Franklin Resources envisions leveraging technology to enhance investment processes and client engagement. The company has invested significantly in its information systems, with expenses in this area totaling $442.7 million for the nine months ended June 30, 2024 . Such investments are aimed at improving operational efficiency and delivering superior client experiences.

Focus on Sustainable Investing

In alignment with global trends, the vision also incorporates a strong commitment to sustainable investing. Franklin Resources has recognized that a significant portion of its AUM is now directed towards sustainable investment options, reflecting a broader industry shift. As of June 30, 2024, the company reported that approximately 30% of its total AUM is invested in sustainable strategies, a notable increase from previous years .

Global Expansion and Market Reach

Franklin Resources aims to expand its global footprint through strategic acquisitions and partnerships. The recent acquisition of Putnam Investments contributed $148.3 billion to AUM . This strategic move not only enhances market reach but also diversifies the company's investment offerings across various asset classes.

Integrity and Accountability

Franklin Resources emphasizes integrity and accountability as core tenets of its vision. The effective income tax rate for the company was 22.7% for the three months ended June 30, 2024, reflecting responsible financial management . The company’s commitment to ethical practices underpins its long-term strategy and enhances trust with clients and stakeholders alike.

Commitment to Diversity and Inclusion

The vision also recognizes the importance of diversity and inclusion within the workforce. Franklin Resources has made significant strides in creating a diverse workplace, with initiatives aimed at fostering an inclusive culture that reflects the global communities it serves. In 2024, the company reported a diversity hiring rate of 45% across its global offices .

Core Values of Franklin Resources, Inc. (BEN)

Integrity

The core value of integrity at Franklin Resources, Inc. emphasizes ethical conduct and transparency in all business dealings. This commitment is crucial for maintaining trust with clients, stakeholders, and employees.

In 2024, Franklin Resources has reinforced its integrity through various initiatives, including enhanced compliance training programs for employees, which resulted in a 15% increase in awareness and adherence to ethical standards compared to the previous year. Furthermore, the company has established a whistleblower policy that encourages employees to report unethical behavior without fear of retaliation, fostering a culture of openness and accountability.

Client-Centric Approach

Franklin Resources places a strong emphasis on a client-centric approach, ensuring that the needs and goals of clients are prioritized in all services and products offered. This value drives the company to deliver exceptional service and build long-term relationships.

In 2024, the company launched a new client feedback platform that collects real-time input from investors. The platform has already generated over 10,000 responses, leading to actionable insights that improved service delivery by 20%. Additionally, Franklin's assets under management (AUM) grew to $1.646 trillion as of June 30, 2024, reflecting the effectiveness of its client-focused strategies.

Innovation

Innovation is a core value that drives Franklin Resources to continuously enhance its product offerings and operational efficiencies. The company invests significantly in technology and research to stay ahead in the competitive asset management industry.

In 2024, Franklin Resources allocated $150 million towards technology upgrades and innovative investment solutions, leading to the introduction of three new funds that focus on sustainable investing. This initiative has attracted $45 billion in new capital inflows, demonstrating the market's positive response to innovative product offerings.

Diversity and Inclusion

Diversity and inclusion are fundamental values at Franklin Resources, promoting a workplace culture that values different perspectives and backgrounds. This commitment is key to fostering creativity and improving decision-making.

As of 2024, Franklin Resources has achieved a 30% increase in diverse hires across all levels of the organization. The company also launched an employee resource group initiative that has seen participation from over 2,500 employees, enhancing community engagement and inclusion across various demographics.

Responsibility

The value of responsibility reflects Franklin Resources’ commitment to sustainable practices and corporate social responsibility. The company aims to contribute positively to society while minimizing its environmental impact.

In 2024, Franklin Resources reported a 25% reduction in its carbon footprint through efficient energy practices and sustainable investment strategies. The firm also committed $20 million to community development projects, further underscoring its dedication to social responsibility.