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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 Third Quarter Results San Mateo , CA , August 3 , 2021 - Franklin Resources , Inc. ( the " Company " ) [ NYSE : BEN ] today announced net income¹ of $ 438.4 million or $ 0.86 per diluted share for the quarter ended June 30 , 2021 , as compared to $ 381.8 million or $ 0.74 per diluted share for the previous quarter , and $ 290.4 million or $ 0.58 per diluted share for the quarter ended June 30 , 2020 . Operating income² was $ 478.1 million for the quarter ended June 30 , 2021 , as compared to $ 456.3 million for the previous quarter and $ 232.5 million in the prior year . The quarter ended June 30 , 2021 includes $ 45.3 million , or $ 0.07 per diluted share , of closed - end fund product launch costs associated with the Western Asset Diversified Income Fund . 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 $ 493.7 million and adjusted diluted earnings per share³ was $ 0.96 for the quarter ended June 30 , 2021 , as compared to $ 403.5 million and $ 0.79 for the previous quarter , and $ 348.9 million and $ 0.70 for the quarter ended June 30 , 2020. Adjusted operating income³ was $ 601.2 million for the quarter ended June 30 , 2021 , as compared to $ 581.1 million for the previous quarter and $ 270.8 million in the prior year . " When we acquired Legg Mason a year ago , we set ambitious goals for our combined organization , and we're proud of the progress made toward achieving them , " said Jenny Johnson , President and CEO of Franklin Resources , Inc. " Investment performance continues to strengthen across our differentiated specialist investment managers in a broad array of investment strategies . And our distribution teams ' collective sales initiatives are resulting in deeper relationships and increased diversification in flows across funds , vehicles , and asset classes . These factors have led to significant improvement in total net flows since the time of the acquisition . " Specific to the third quarter , we saw positive net flows into the majority of our specialist investment managers and Benefit Street Partners , Clarion , ClearBridge , Fiduciary Trust International , and Martin Currie all reached record highs in AUM . Alternative net inflows were a record $ 3.1 billion , and fixed income net flows returned to positive territory at $ 2.1 billion . 1 " Financial results continue to progress with adjusted operating income increasing by 3 % to $ 601.2 million from the prior quarter , inclusive of the one - time impact of costs associated with the successful launch of the $ 1.0 billion Western Asset Diversified Income Fund . The strength of our balance sheet enables us to invest with confidence in the business and make sure we're best positioned to be a leader in an ever - evolving industry . "