Franklin Resources, Inc. (BEN) CEO Jenny Johnson on Q2 2022 Results - Earnings Call Transcript

Franklin Resources, Inc. (NYSE:BEN) Q2 2022 Earnings Conference Call May 3, 2022 11:00 AM ET

Company Participants

Selene Oh - Head, Investor Relations

Jenny Johnson - President & Chief Executive Officer

Matt Nicholls - Chief Financial Officer

Adam Spector - Head, Global Distribution

Conference Call Participants

Craig Siegenthaler - Bank of America

Bill Katz - Citi

Brennan Hawken - UBS

Alex Blostein - Goldman Sachs

Ken Worthington - JPMorgan

Robert Lee - KBW

Michael Cyprys - Morgan Stanley

Dan Fannon - Jeffries

Operator

Welcome to Franklin Resources Earnings Conference Call for the Two Quarter and Fiscal Year 2022. Hello. My name is Grace and I'll be your call operator today. As a reminder this conference is being recorded. And at this time, all participants are in a listen-only mode.

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 or 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 just 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.

Jenny Johnson

Thank you Salene. Hello, everyone and thank you for joining us today to discuss Franklin Templeton's results for our second fiscal quarter. I'm joined by Matt Nicholls, our CFO, who recently expanded his responsibilities to include Chief Operating Officer; and Adam Spector, our Head of Global Distribution.

This quarter global financial markets were impacted by a continuation of macroeconomic pressures due to increased inflation and related higher interest rates, both of which have been significantly exacerbated by geopolitical and economic shifts resulting from the Russia-Ukraine war. This quarter's volatile market environment challenged industry flows particularly in taxable fixed income strategies. We were impacted by these pressures and had $11.7 billion in long-term net outflows, although we continue to drive net inflows into key growth areas and our effective fee rate remains stable.