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FRANKLIN TEMPLETON Contact : Franklin Resources , Inc. Investor Relations : Selene Oh ( 650 ) 312-4091 , selene.oh@franklintempleton.com Media Relations : Matt Walsh ( 650 ) 312-2245 , matthew.walsh@franklintempleton.com investors.franklinresources.com One Franklin Parkway San Mateo , CA 94403-1906 tel ( 650 ) 312-2000 investors.franklinresources.com FOR IMMEDIATE RELEASE Franklin Resources , Inc. Announces First Quarter Results San Mateo , CA , February 2 , 2021 – Franklin Resources , Inc. ( the “ Company ” ) [ NYSE : BEN ] today announced net income¹ of $ 345.3 million or $ 0.67 per diluted share for the quarter ended December 31 , 2020 , as compared to $ 78.9 million or $ 0.15 per diluted share for the previous quarter , and $ 350.5 million or $ 0.70 per diluted share for the quarter ended December 31 , 2019. Operating income² was $ 409.1 million for the quarter ended December 31 , 2020 , as compared to $ 103.6 million for the previous quarter and $ 372.9 million in the prior year . As supplemental information , the Company is providing certain adjusted performance measures which are based on methodologies other than generally accepted accounting principles.³ Adjusted net income³ was $ 373.4 million and adjusted diluted earnings per share was $ 0.73 for the quarter ended December 31 , 2020 , as compared to $ 291.0 million and $ 0.56 for the previous quarter , and $ 338.3 million and $ 0.67 for the quarter ended December 31 , 2019. Adjusted operating income³ was $ 549.9 million for the quarter ended December 31 , 2020 , as compared to $ 428.9 million for the previous quarter and $ 405.5 million in the prior year . " This month marks a full year since we announced our acquisition of Legg Mason and its specialist investment managers , ” said Jenny Johnson , President and CEO of Franklin Resources , Inc. “ I couldn't be prouder of the progress we've made in bringing our teams together to form one company – with a singular focus on delivering exceptional client outcomes . The first full quarter of the combined company saw some encouraging trends , including a record high in AUM of approximately $ 1.5 trillion , driven primarily by strong market performance . In addition , the Company delivered strong operating and financial results . - “ Investment performance broadly improved this quarter . Western Asset continues to perform exceptionally well , while Brandywine Global performance rebounded strongly . In terms of mutual funds , several of our value - oriented equity strategies generated noteworthy results and we continue to see strong performance in U.S. equities and U.S. fixed income . On the distribution front , momentum continued to build with positive net flows into Benefit Street Partners , Clarion Partners , ClearBridge , Fiduciary Trust , Franklin Equity Group , Franklin Templeton Fixed Income , Martin Currie , Royce and Western Asset . Cross - selling initiatives have started to yield positive results as we effectively respond to client needs with expanded investment capabilities . “ In addition to executing the Legg Mason acquisition , we continue to expand our offerings beyond traditional investment products and look for new , market - leading ways to serve our clients . Our proprietary Goals Optimization Engine ( GOE ) , which launched last year , engages firms that are looking to digitally deliver a dynamic and personalized investment solution to investors . GOE is seeing early success in both the wealth and retirement segments . In the U.S. , we recently announced the launch of a quick - deploy robo solution , as well as a partnership for a managed account solution within 401 ( k ) plans - both of which are powered by GOE . " Yesterday we officially launched our new Franklin Templeton Investment Institute , an innovative hub for research and knowledge sharing that we believe will unlock the Company's competitive advantage as a source of global market insights . Stephen Dover , who will be taking on a new role as Chief Market Strategist , will be head of the newly - formed Investment Institute . At the same time , Terrence Murphy has expanded his leadership role to become Head of Equities for Franklin Templeton , while retaining his existing role as CEO at ClearBridge Investments . 1