Franklin Resources (BEN) Q3 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 28, 2023 11:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to the Franklin Resources Earnings Conference Call for the quarter ended June 30, 2023. Hello. My name is Joanna and I will be your call operator today. As a reminder, this conference is being recorded. [Operator Instructions] I would now like to turn the conference over to your host, Selene Oh, Head of Investor Relations for Franklin Resources. You may begin.

Selene Oh

Good morning and thank you for joining us today to discuss our quarterly results. Statements made on this conference call regarding Franklin Resources, Inc., which are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from any future results expressed or implied by such forward-looking statements.

These and other risks, uncertainties and other important factors are described in more detail in Franklin’s recent filings with the Securities and Exchange Commission, including in the Risk Factors and the MD&A sections of Franklin’s most recent Form 10-K and 10-Q filings.

Now I’d like to turn the call over to Jenny Johnson, our President and Chief Executive Officer.

Jennifer Johnson

Thank you, Selene. Hello everyone, and thank you for joining us today to discuss Franklin Templeton’s results for the third fiscal quarter of 2023. As usual, I’m joined by Matt Nicholls, our CFO and COO; and Adam Spector, our Head of Global Distribution. Over the past server years we have been intentional in building a diversified company that offers a broad range of investment expertise and capabilities across asset classes. Investment vehicles and geographies to benefit a broad range of clients through various market conditions and cycles. We believe our corporate model of preserving the investment economy of each of our specialist investment managers combined with the resources of a global firm meets the demands of our diverse client base and produces strong long-term results.

This quarter, long-term net flows turned positive. Investment performance remains strong and adjusted operating income improved by 8%. Financial markets in general stage rebalance in the first half of the calendar year. The S&P 500 Indexes concentration in five companies is at its most extreme level in more than 30 years.