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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Franklin Resources Inc | NYSE:BEN | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.63 | 2.74% | 23.60 | 23.88 | 23.245 | 23.35 | 5,865,161 | 01:00:00 |
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
13-2670991
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
One Franklin Parkway, San Mateo, CA
|
94403
|
(Address of principal executive offices)
|
(Zip Code)
|
|
Large accelerated filer
x
|
|
Accelerated filer
o
|
|
Non-accelerated filer
o
|
|
Smaller reporting company
o
|
|
|
|
Emerging growth company
o
|
|
|
Page
|
|
Financial Information
|
|
||
|
Item 1.
|
Financial Statements (unaudited)
|
|
|
|
3
|
|
|
|
4
|
|
|
|
5
|
|
|
|
6
|
|
|
|
8
|
|
|
|
10
|
|
|
Item 2.
|
26
|
|
|
Item 3.
|
50
|
|
|
Item 4.
|
51
|
|
|
|
|
|
Other Information
|
|
||
|
Item 1.
|
51
|
|
|
Item 1A.
|
51
|
|
|
Item 2.
|
51
|
|
|
Item 6.
|
51
|
|
|
|
|
|
52
|
|||
53
|
FRANKLIN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Unaudited
|
||||||||||||||||
|
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
||||||||||||
(in millions, except per share data)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Operating Revenues
|
|
|
|
|
|
|
|
|
||||||||
Investment management fees
|
|
$
|
992.4
|
|
|
$
|
1,117.1
|
|
|
$
|
1,964.2
|
|
|
$
|
2,230.7
|
|
Sales and distribution fees
|
|
358.5
|
|
|
409.8
|
|
|
713.3
|
|
|
827.6
|
|
||||
Shareholder servicing fees
|
|
57.1
|
|
|
61.3
|
|
|
112.2
|
|
|
116.2
|
|
||||
Other
|
|
25.8
|
|
|
29.6
|
|
|
55.6
|
|
|
58.8
|
|
||||
Total operating revenues
|
|
1,433.8
|
|
|
1,617.8
|
|
|
2,845.3
|
|
|
3,233.3
|
|
||||
Operating Expenses
|
|
|
|
|
|
|
|
|
||||||||
Sales, distribution and marketing
|
|
449.4
|
|
|
521.5
|
|
|
893.9
|
|
|
1,050.2
|
|
||||
Compensation and benefits
|
|
409.6
|
|
|
355.5
|
|
|
764.6
|
|
|
688.0
|
|
||||
Information systems and technology
|
|
62.1
|
|
|
58.1
|
|
|
123.0
|
|
|
113.1
|
|
||||
Occupancy
|
|
31.4
|
|
|
34.1
|
|
|
62.6
|
|
|
63.5
|
|
||||
General, administrative and other
|
|
101.8
|
|
|
92.9
|
|
|
210.2
|
|
|
181.7
|
|
||||
Total operating expenses
|
|
1,054.3
|
|
|
1,062.1
|
|
|
2,054.3
|
|
|
2,096.5
|
|
||||
Operating Income
|
|
379.5
|
|
|
555.7
|
|
|
791.0
|
|
|
1,136.8
|
|
||||
Other Income (Expenses)
|
|
|
|
|
|
|
|
|
||||||||
Investment and other income, net
|
|
118.7
|
|
|
87.4
|
|
|
59.6
|
|
|
168.7
|
|
||||
Interest expense
|
|
(5.7
|
)
|
|
(10.0
|
)
|
|
(12.1
|
)
|
|
(20.8
|
)
|
||||
Other income, net
|
|
113.0
|
|
|
77.4
|
|
|
47.5
|
|
|
147.9
|
|
||||
Income before taxes
|
|
492.5
|
|
|
633.1
|
|
|
838.5
|
|
|
1,284.7
|
|
||||
Taxes on income
|
|
110.9
|
|
|
150.2
|
|
|
196.9
|
|
|
1,373.7
|
|
||||
Net income (loss)
|
|
381.6
|
|
|
482.9
|
|
|
641.6
|
|
|
(89.0
|
)
|
||||
Less: net income (loss) attributable to
|
|
|
|
|
|
|
|
|
||||||||
Redeemable noncontrolling interests
|
|
21.5
|
|
|
15.2
|
|
|
6.1
|
|
|
26.7
|
|
||||
Nonredeemable noncontrolling interests
|
|
(7.4
|
)
|
|
24.5
|
|
|
(7.9
|
)
|
|
24.4
|
|
||||
Net Income (Loss) Attributable to Franklin Resources, Inc.
|
$
|
367.5
|
|
|
$
|
443.2
|
|
|
$
|
643.4
|
|
|
$
|
(140.1
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (Loss) per Share
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.72
|
|
|
$
|
0.79
|
|
|
$
|
1.26
|
|
|
$
|
(0.29
|
)
|
Diluted
|
|
0.72
|
|
|
0.78
|
|
|
1.25
|
|
|
(0.29
|
)
|
FRANKLIN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unaudited
|
||||||||||||||||
(in millions)
|
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Net Income (Loss)
|
|
$
|
381.6
|
|
|
$
|
482.9
|
|
|
$
|
641.6
|
|
|
$
|
(89.0
|
)
|
Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
||||||||
Currency translation adjustments, net of tax
|
|
7.9
|
|
|
6.8
|
|
|
(6.7
|
)
|
|
22.6
|
|
||||
Net unrealized gains (losses) on defined benefit plans, net of tax
|
|
(0.7
|
)
|
|
0.4
|
|
|
(1.1
|
)
|
|
(0.7
|
)
|
||||
Net unrealized gains (losses) on investments, net of tax
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|
3.3
|
|
||||
Total other comprehensive income (loss)
|
|
7.1
|
|
|
7.0
|
|
|
(7.9
|
)
|
|
25.2
|
|
||||
Total comprehensive income (loss)
|
|
388.7
|
|
|
489.9
|
|
|
633.7
|
|
|
(63.8
|
)
|
||||
Less: comprehensive income (loss) attributable to
|
|
|
|
|
|
|
|
|
||||||||
Redeemable noncontrolling interests
|
|
21.5
|
|
|
15.2
|
|
|
6.1
|
|
|
26.7
|
|
||||
Nonredeemable noncontrolling interests
|
|
(7.4
|
)
|
|
24.5
|
|
|
(7.9
|
)
|
|
24.4
|
|
||||
Comprehensive Income (Loss) Attributable to Franklin Resources, Inc.
|
|
$
|
374.6
|
|
|
$
|
450.2
|
|
|
$
|
635.5
|
|
|
$
|
(114.9
|
)
|
FRANKLIN RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS
Unaudited
|
||||||||
(in millions, except share and per share data)
|
|
March 31,
2019 |
|
September 30,
2018 |
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
5,680.6
|
|
|
$
|
6,610.8
|
|
Receivables
|
|
747.5
|
|
|
733.7
|
|
||
Investments (including $502.9 and $551.6 at fair value at March 31, 2019 and September 30, 2018)
|
|
1,515.5
|
|
|
1,426.5
|
|
||
Assets of consolidated investment products
|
|
|
|
|
||||
Cash and cash equivalents
|
|
265.4
|
|
|
299.8
|
|
||
Receivables
|
|
93.5
|
|
|
114.2
|
|
||
Investments, at fair value
|
|
2,139.6
|
|
|
2,109.4
|
|
||
Property and equipment, net
|
|
576.6
|
|
|
535.0
|
|
||
Goodwill and other intangible assets, net
|
|
3,027.9
|
|
|
2,333.4
|
|
||
Other
|
|
192.4
|
|
|
220.7
|
|
||
Total Assets
|
|
$
|
14,239.0
|
|
|
$
|
14,383.5
|
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
||||
Compensation and benefits
|
|
$
|
342.1
|
|
|
$
|
405.6
|
|
Accounts payable and accrued expenses
|
|
210.1
|
|
|
158.9
|
|
||
Dividends
|
|
138.7
|
|
|
127.7
|
|
||
Commissions
|
|
267.4
|
|
|
297.9
|
|
||
Income taxes
|
|
915.9
|
|
|
1,034.8
|
|
||
Debt
|
|
697.9
|
|
|
695.9
|
|
||
Liabilities of consolidated investment products
|
|
|
|
|
||||
Accounts payable and accrued expenses
|
|
44.9
|
|
|
68.0
|
|
||
Debt
|
|
32.8
|
|
|
32.6
|
|
||
Deferred taxes
|
|
130.2
|
|
|
126.5
|
|
||
Other
|
|
140.6
|
|
|
184.1
|
|
||
Total liabilities
|
|
2,920.6
|
|
|
3,132.0
|
|
||
Commitments and Contingencies (Note 11)
|
|
|
|
|
||||
Redeemable Noncontrolling Interests
|
|
819.3
|
|
|
1,043.6
|
|
||
Stockholders’ Equity
|
|
|
|
|
||||
Preferred stock, $1.00 par value, 1,000,000 shares authorized; none issued
|
|
—
|
|
|
—
|
|
||
Common stock, $0.10 par value, 1,000,000,000 shares authorized; 507,714,184 and 519,122,574 shares issued and outstanding at March 31, 2019 and September 30, 2018
|
|
50.8
|
|
|
51.9
|
|
||
Retained earnings
|
|
10,219.5
|
|
|
10,217.9
|
|
||
Accumulated other comprehensive loss
|
|
(386.5
|
)
|
|
(370.6
|
)
|
||
Total Franklin Resources, Inc. stockholders’ equity
|
|
9,883.8
|
|
|
9,899.2
|
|
||
Nonredeemable noncontrolling interests
|
|
615.3
|
|
|
308.7
|
|
||
Total stockholders’ equity
|
|
10,499.1
|
|
|
10,207.9
|
|
||
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity
|
|
$
|
14,239.0
|
|
|
$
|
14,383.5
|
|
FRANKLIN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS
’
EQUITY
Unaudited
|
|||||||||||||||||||||||||||||||
|
|
Franklin Resources, Inc.
|
|
Non-
redeemable
Non-
controlling
Interests
|
|
Total
Stockholders’
Equity
|
|||||||||||||||||||||||||
|
Common Stock
|
|
Capital
in Excess
of Par
Value
|
|
Retained
Earnings
|
|
Accum-
ulated
Other
Compre-
hensive
Loss
|
|
Stockholders’
Equity
|
||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||||
for the six months ended
March 31, 2019 |
Shares
|
|
Amount
|
||||||||||||||||||||||||||||
Balance at October 1, 2018
|
|
519.1
|
|
|
$
|
51.9
|
|
|
$
|
—
|
|
|
$
|
10,217.9
|
|
|
$
|
(370.6
|
)
|
|
$
|
9,899.2
|
|
|
$
|
308.7
|
|
|
$
|
10,207.9
|
|
Adoption of new accounting guidance
|
|
|
|
|
|
|
|
22.9
|
|
|
(8.0
|
)
|
|
14.9
|
|
|
|
|
14.9
|
|
|||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
275.9
|
|
|
|
|
275.9
|
|
|
(0.5
|
)
|
|
275.4
|
|
|||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
(15.0
|
)
|
|
(15.0
|
)
|
|
|
|
(15.0
|
)
|
||||||||||||
Dividends declared on common stock ($0.26 per share)
|
|
|
|
|
|
|
|
(133.8
|
)
|
|
|
|
(133.8
|
)
|
|
|
|
(133.8
|
)
|
||||||||||||
Repurchase of common stock
|
|
(10.7
|
)
|
|
(1.1
|
)
|
|
(30.8
|
)
|
|
(295.0
|
)
|
|
|
|
(326.9
|
)
|
|
|
|
(326.9
|
)
|
|||||||||
Issuance of common stock
|
|
3.1
|
|
|
0.3
|
|
|
33.6
|
|
|
|
|
|
|
33.9
|
|
|
|
|
33.9
|
|
||||||||||
Stock-based compensation
|
|
|
|
|
|
(2.8
|
)
|
|
|
|
|
|
(2.8
|
)
|
|
|
|
(2.8
|
)
|
||||||||||||
Net subscriptions and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23.1
|
|
|
23.1
|
|
|||||||||||||
Balance at December 31, 2018
|
|
511.5
|
|
|
$
|
51.1
|
|
|
$
|
—
|
|
|
$
|
10,087.9
|
|
|
$
|
(393.6
|
)
|
|
$
|
9,745.4
|
|
|
$
|
331.3
|
|
|
$
|
10,076.7
|
|
Net income (loss)
|
|
|
|
|
|
|
|
367.5
|
|
|
|
|
367.5
|
|
|
(7.4
|
)
|
|
360.1
|
|
|||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
7.1
|
|
|
7.1
|
|
|
|
|
7.1
|
|
||||||||||||
Dividends declared on common stock ($0.26 per share)
|
|
|
|
|
|
|
|
(132.6
|
)
|
|
|
|
(132.6
|
)
|
|
|
|
(132.6
|
)
|
||||||||||||
Repurchase of common stock
|
|
(4.6
|
)
|
|
(0.4
|
)
|
|
(41.0
|
)
|
|
(103.3
|
)
|
|
|
|
(144.7
|
)
|
|
|
|
(144.7
|
)
|
|||||||||
Issuance of common stock
|
|
0.8
|
|
|
0.1
|
|
|
13.3
|
|
|
|
|
|
|
13.4
|
|
|
|
|
13.4
|
|
||||||||||
Stock-based compensation
|
|
|
|
|
|
27.7
|
|
|
|
|
|
|
27.7
|
|
|
|
|
27.7
|
|
||||||||||||
Net subscriptions and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
51.0
|
|
|
51.0
|
|
|||||||||||||
Consolidation of investment product
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24.3
|
|
|
24.3
|
|
|||||||||||||
Acquisition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
216.1
|
|
|
216.1
|
|
|||||||||||||
Balance at March 31, 2019
|
|
507.7
|
|
|
$
|
50.8
|
|
|
$
|
—
|
|
|
$
|
10,219.5
|
|
|
$
|
(386.5
|
)
|
|
$
|
9,883.8
|
|
|
$
|
615.3
|
|
|
$
|
10,499.1
|
|
FRANKLIN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS
’
EQUITY
Unaudited
|
|||||||||||||||||||||||||||||||
|
|
Franklin Resources, Inc.
|
|
Non-
redeemable
Non-
controlling
Interests
|
|
Total
Stockholders’
Equity
|
|||||||||||||||||||||||||
|
Common Stock
|
|
Capital
in Excess
of Par
Value
|
|
Retained
Earnings
|
|
Accum-
ulated
Other
Compre-
hensive
Loss
|
|
Stockholders’
Equity
|
||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||||
for the six months ended
March 31, 2018 |
Shares
|
|
Amount
|
||||||||||||||||||||||||||||
Balance at October 1, 2017
|
|
554.9
|
|
|
$
|
55.5
|
|
|
$
|
—
|
|
|
$
|
12,849.3
|
|
|
$
|
(284.8
|
)
|
|
$
|
12,620.0
|
|
|
$
|
315.8
|
|
|
$
|
12,935.8
|
|
Adoption of new accounting guidance
|
|
|
|
|
|
2.1
|
|
|
(1.7
|
)
|
|
|
|
0.4
|
|
|
|
|
0.4
|
|
|||||||||||
Net loss
|
|
|
|
|
|
|
|
(583.3
|
)
|
|
|
|
(583.3
|
)
|
|
(0.1
|
)
|
|
(583.4
|
)
|
|||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
18.2
|
|
|
18.2
|
|
|
|
|
18.2
|
|
||||||||||||
Dividends declared on common stock ($0.23 per share)
|
|
|
|
|
|
|
|
(127.4
|
)
|
|
|
|
(127.4
|
)
|
|
|
|
(127.4
|
)
|
||||||||||||
Repurchase of common stock
|
|
(4.6
|
)
|
|
(0.5
|
)
|
|
(32.1
|
)
|
|
(167.4
|
)
|
|
|
|
(200.0
|
)
|
|
|
|
(200.0
|
)
|
|||||||||
Issuance of common stock
|
|
2.1
|
|
|
0.2
|
|
|
27.6
|
|
|
|
|
|
|
27.8
|
|
|
|
|
27.8
|
|
||||||||||
Stock-based compensation
|
|
|
|
|
|
2.4
|
|
|
|
|
|
|
2.4
|
|
|
|
|
2.4
|
|
||||||||||||
Net subscriptions and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.0
|
|
|
7.0
|
|
|||||||||||||
Deconsolidation of investment product
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|||||||||||||
Balance at December 31, 2017
|
|
552.4
|
|
|
$
|
55.2
|
|
|
$
|
—
|
|
|
$
|
11,969.5
|
|
|
$
|
(266.6
|
)
|
|
$
|
11,758.1
|
|
|
$
|
322.4
|
|
|
$
|
12,080.5
|
|
Adoption of new accounting guidance
|
|
|
|
|
|
|
|
0.1
|
|
|
(0.1
|
)
|
|
—
|
|
|
|
|
—
|
|
|||||||||||
Net income
|
|
|
|
|
|
|
|
443.2
|
|
|
|
|
443.2
|
|
|
24.5
|
|
|
467.7
|
|
|||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
7.0
|
|
|
7.0
|
|
|
|
|
7.0
|
|
||||||||||||
Dividends declared on common stock ($3.23 per share)
|
|
|
|
|
|
|
|
(1,762.0
|
)
|
|
|
|
(1,762.0
|
)
|
|
|
|
(1,762.0
|
)
|
||||||||||||
Repurchase of common stock
|
|
(11.1
|
)
|
|
(1.1
|
)
|
|
(44.6
|
)
|
|
(386.9
|
)
|
|
|
|
(432.6
|
)
|
|
|
|
(432.6
|
)
|
|||||||||
Issuance of common stock
|
|
0.4
|
|
|
0.1
|
|
|
13.7
|
|
|
|
|
|
|
13.8
|
|
|
|
|
13.8
|
|
||||||||||
Stock-based compensation
|
|
|
|
|
|
30.9
|
|
|
|
|
|
|
30.9
|
|
|
|
|
30.9
|
|
||||||||||||
Net distributions and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1.3
|
)
|
|
(1.3
|
)
|
|||||||||||||
Deconsolidation of investment product
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1.8
|
)
|
|
(1.8
|
)
|
|||||||||||||
Balance at March 31, 2018
|
|
541.7
|
|
|
$
|
54.2
|
|
|
$
|
—
|
|
|
$
|
10,263.9
|
|
|
$
|
(259.7
|
)
|
|
$
|
10,058.4
|
|
|
$
|
343.8
|
|
|
$
|
10,402.2
|
|
FRANKLIN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
|
||||||||
|
|
Six Months Ended
March 31, |
||||||
(in millions)
|
|
2019
|
|
2018
|
||||
Net Income (Loss)
|
|
$
|
641.6
|
|
|
$
|
(89.0
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
||||
Amortization of deferred sales commissions
|
|
39.8
|
|
|
40.5
|
|
||
Depreciation and other amortization
|
|
41.8
|
|
|
38.3
|
|
||
Stock-based compensation
|
|
59.4
|
|
|
61.2
|
|
||
Income from investments in equity method investees
|
|
(9.6
|
)
|
|
(45.9
|
)
|
||
Net losses (gains) on investments of consolidated investment products
|
|
17.2
|
|
|
(54.5
|
)
|
||
Net purchase of investments by consolidated investment products
|
|
(240.3
|
)
|
|
(28.3
|
)
|
||
Deferred income taxes
|
|
7.5
|
|
|
(44.7
|
)
|
||
Other
|
|
17.0
|
|
|
7.1
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Increase in receivables and other assets
|
|
(3.7
|
)
|
|
(59.3
|
)
|
||
Decrease in receivables of consolidated investment products
|
|
0.1
|
|
|
100.3
|
|
||
Decrease (increase) in investments, net
|
|
128.4
|
|
|
(34.6
|
)
|
||
Decrease in accrued compensation and benefits
|
|
(72.2
|
)
|
|
(107.0
|
)
|
||
Decrease in commissions payable
|
|
(30.5
|
)
|
|
(2.6
|
)
|
||
Increase (decrease) in income taxes payable
|
|
(118.9
|
)
|
|
1,103.6
|
|
||
Increase (decrease) in accounts payable, accrued expenses and other liabilities
|
|
(23.0
|
)
|
|
11.3
|
|
||
Increase (decrease) in accounts payable and accrued expenses of consolidated investment products
|
|
(10.4
|
)
|
|
0.6
|
|
||
Net cash provided by operating activities
|
|
444.2
|
|
|
897.0
|
|
||
Purchase of investments
|
|
(105.4
|
)
|
|
(182.6
|
)
|
||
Liquidation of investments
|
|
134.3
|
|
|
74.5
|
|
||
Purchase of investments by consolidated investment products
|
|
—
|
|
|
(40.3
|
)
|
||
Liquidation of investments by consolidated investment products
|
|
—
|
|
|
68.6
|
|
||
Additions of property and equipment, net
|
|
(72.2
|
)
|
|
(43.7
|
)
|
||
Acquisitions, net of cash acquired
|
|
(684.2
|
)
|
|
(9.7
|
)
|
||
Net deconsolidation of investment products
|
|
(6.7
|
)
|
|
(48.3
|
)
|
||
Net cash used in investing activities
|
|
(734.2
|
)
|
|
(181.5
|
)
|
||
Issuance of common stock
|
|
12.8
|
|
|
13.6
|
|
||
Dividends paid on common stock
|
|
(255.4
|
)
|
|
(239.0
|
)
|
||
Repurchase of common stock
|
|
(469.4
|
)
|
|
(619.4
|
)
|
||
Proceeds from loan
|
|
1.7
|
|
|
—
|
|
||
Payments on debt by consolidated investment products
|
|
—
|
|
|
(19.6
|
)
|
||
Payments on contingent consideration liability
|
|
(20.4
|
)
|
|
(21.6
|
)
|
||
Noncontrolling interests
|
|
67.9
|
|
|
121.5
|
|
||
Net cash used in financing activities
|
|
(662.8
|
)
|
|
(764.5
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
(11.8
|
)
|
|
25.8
|
|
||
Decrease in cash and cash equivalents
|
|
(964.6
|
)
|
|
(23.2
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
6,910.6
|
|
|
8,749.7
|
|
||
Cash and Cash Equivalents, End of Period
|
|
$
|
5,946.0
|
|
|
$
|
8,726.5
|
|
FRANKLIN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
[Table continued from previous page]
|
||||||||
|
|
Six Months Ended
March 31, |
||||||
(in millions)
|
|
2019
|
|
2018
|
||||
Supplemental Disclosure of Cash Flow Information
|
|
|
|
|
||||
Cash paid for income taxes
|
|
$
|
303.3
|
|
|
$
|
310.9
|
|
Cash paid for interest
|
|
10.4
|
|
|
24.1
|
|
||
Cash paid for interest by consolidated investment products
|
|
1.1
|
|
|
1.5
|
|
|
|
Three Months Ended March 31, 2019
|
|
Six Months Ended March 31, 2019
|
||||||||||||||||||||
|
|
As
Reported
|
|
Adoption
Impact
|
|
Amount
Without
Adoption
|
|
As
Reported
|
|
Adoption
Impact
|
|
Amount
Without
Adoption
|
||||||||||||
(in millions)
|
|
|
|
|
|
|
||||||||||||||||||
Operating Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment management fees
|
|
$
|
992.4
|
|
|
$
|
14.9
|
|
|
$
|
1,007.3
|
|
|
$
|
1,964.2
|
|
|
$
|
30.4
|
|
|
$
|
1,994.6
|
|
Sales and distribution fees
|
|
358.5
|
|
|
(14.9
|
)
|
|
343.6
|
|
|
713.3
|
|
|
(30.4
|
)
|
|
682.9
|
|
||||||
Shareholder servicing fees
|
|
57.1
|
|
|
(1.5
|
)
|
|
55.6
|
|
|
112.2
|
|
|
(3.7
|
)
|
|
108.5
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
General, administrative and other
|
|
$
|
101.8
|
|
|
$
|
(1.5
|
)
|
|
$
|
100.3
|
|
|
$
|
210.2
|
|
|
$
|
(3.7
|
)
|
|
$
|
206.5
|
|
(in millions)
|
|
Estimated
Fair Value
|
||
as of February 1, 2019
|
|
|||
Cash
|
|
$
|
33.2
|
|
Investments
|
|
138.8
|
|
|
Investments of consolidated investment products
|
|
84.9
|
|
|
Indefinite-lived intangible assets
|
|
307.5
|
|
|
Definite-lived intangible assets
|
|
75.8
|
|
|
Goodwill
|
|
315.8
|
|
|
Other assets
|
|
35.7
|
|
|
Other liabilities
|
|
(58.2
|
)
|
|
Nonredeemable noncontrolling interests
|
|
(216.1
|
)
|
|
Total Identifiable Net Assets
|
|
$
|
717.4
|
|
(in millions, except per share data)
|
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Net income (loss) attributable to Franklin Resources, Inc.
|
|
$
|
367.5
|
|
|
$
|
443.2
|
|
|
$
|
643.4
|
|
|
$
|
(140.1
|
)
|
Less: allocation of earnings to participating nonvested stock and stock unit awards
|
|
3.8
|
|
|
15.2
|
|
|
6.0
|
|
|
16.3
|
|
||||
Net Income (Loss) Available to Common Stockholders
|
|
$
|
363.7
|
|
|
$
|
428.0
|
|
|
$
|
637.4
|
|
|
$
|
(156.4
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding – basic
|
|
504.7
|
|
|
545.0
|
|
|
507.6
|
|
|
547.9
|
|
||||
Dilutive effect of nonparticipating nonvested stock unit awards
|
|
0.4
|
|
|
0.5
|
|
|
0.4
|
|
|
—
|
|
||||
Weighted-Average Shares Outstanding – Diluted
|
|
505.1
|
|
|
545.5
|
|
|
508.0
|
|
|
547.9
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings (Loss) per Share
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.72
|
|
|
$
|
0.79
|
|
|
$
|
1.26
|
|
|
$
|
(0.29
|
)
|
Diluted
|
|
0.72
|
|
|
0.78
|
|
|
1.25
|
|
|
(0.29
|
)
|
|
|
Earned From Contracts With Customers
|
|
Not Earned From
Contracts With Customers
1
|
|
Total
|
||||||||||||||||||||||
(in millions)
|
United States
|
|
Luxembourg
|
|
Americas
Excluding United States
|
|
Asia-Pacific
|
|
Europe, Middle East and Africa, Excluding Luxembourg
|
|||||||||||||||||||
for the three months ended
March 31, 2019 |
||||||||||||||||||||||||||||
Investment management fees
|
|
$
|
565.6
|
|
|
$
|
263.4
|
|
|
$
|
82.9
|
|
|
$
|
56.9
|
|
|
$
|
23.6
|
|
|
$
|
—
|
|
|
$
|
992.4
|
|
Sales and distribution fees
|
|
228.6
|
|
|
113.5
|
|
|
15.8
|
|
|
0.2
|
|
|
0.4
|
|
|
—
|
|
|
358.5
|
|
|||||||
Shareholder servicing fees
|
|
47.1
|
|
|
7.4
|
|
|
0.1
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
57.1
|
|
|||||||
Other
|
|
4.2
|
|
|
0.3
|
|
|
—
|
|
|
0.2
|
|
|
0.1
|
|
|
21.0
|
|
|
25.8
|
|
|||||||
Total
|
|
$
|
845.5
|
|
|
$
|
384.6
|
|
|
$
|
98.8
|
|
|
$
|
59.8
|
|
|
$
|
24.1
|
|
|
$
|
21.0
|
|
|
$
|
1,433.8
|
|
|
|
Earned From Contracts With Customers
|
|
Not Earned From
Contracts With Customers
1
|
|
Total
|
||||||||||||||||||||||
(in millions)
|
United States
|
|
Luxembourg
|
|
Americas
Excluding United States
|
|
Asia-Pacific
|
|
Europe, Middle East and Africa, Excluding Luxembourg
|
|||||||||||||||||||
for the six months ended
March 31, 2019 |
||||||||||||||||||||||||||||
Investment management fees
|
|
$
|
1,098.7
|
|
|
$
|
531.1
|
|
|
$
|
168.5
|
|
|
$
|
118.3
|
|
|
$
|
47.6
|
|
|
$
|
—
|
|
|
$
|
1,964.2
|
|
Sales and distribution fees
|
|
461.6
|
|
|
217.8
|
|
|
32.4
|
|
|
0.7
|
|
|
0.8
|
|
|
—
|
|
|
713.3
|
|
|||||||
Shareholder servicing fees
|
|
92.0
|
|
|
15.1
|
|
|
0.1
|
|
|
5.0
|
|
|
—
|
|
|
—
|
|
|
112.2
|
|
|||||||
Other
|
|
7.2
|
|
|
0.6
|
|
|
—
|
|
|
0.3
|
|
|
0.4
|
|
|
47.1
|
|
|
55.6
|
|
|||||||
Total
|
|
$
|
1,659.5
|
|
|
$
|
764.6
|
|
|
$
|
201.0
|
|
|
$
|
124.3
|
|
|
$
|
48.8
|
|
|
$
|
47.1
|
|
|
$
|
2,845.3
|
|
1
|
Consists of interest and dividend income from consolidated investment products.
|
(in millions)
|
|
March 31,
2019 |
||
Equity securities, at fair value
|
|
|
||
Sponsored funds
|
|
$
|
354.3
|
|
Other equity securities
|
|
68.8
|
|
|
Total equity securities, at fair value
|
|
423.1
|
|
|
Debt securities
|
|
|
||
Trading
|
|
57.1
|
|
|
Available-for-sale
|
|
11.0
|
|
|
Total debt securities
|
|
68.1
|
|
|
Investments in equity method investees
|
|
982.8
|
|
|
Other investments
|
|
41.5
|
|
|
Total
|
|
$
|
1,515.5
|
|
(in millions)
|
|
September 30,
2018 |
||
Investment securities, trading
|
|
|
||
Sponsored funds
|
|
$
|
248.1
|
|
Debt and other equity securities
|
|
97.6
|
|
|
Total investment securities, trading
|
|
345.7
|
|
|
Investment securities, available-for-sale
|
|
|
||
Sponsored funds
|
|
178.6
|
|
|
Debt and other equity securities
|
|
15.5
|
|
|
Total investment securities, available-for-sale
|
|
194.1
|
|
|
Investments in equity method investees
|
|
780.8
|
|
|
Other investments
|
|
105.9
|
|
|
Total
|
|
$
|
1,426.5
|
|
(in millions)
|
|
Cost Basis
|
|
Gross Unrealized
|
|
Fair Value
|
||||||||||
|
Gains
|
|
Losses
|
|
||||||||||||
as of March 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Debt securities
|
|
$
|
13.1
|
|
|
$
|
—
|
|
|
$
|
(2.1
|
)
|
|
$
|
11.0
|
|
|
|
|
|
|
|
|
|
|
||||||||
as of September 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
Sponsored funds
|
|
$
|
172.9
|
|
|
$
|
8.3
|
|
|
$
|
(2.6
|
)
|
|
$
|
178.6
|
|
Debt and other equity securities
|
|
16.8
|
|
|
0.5
|
|
|
(1.8
|
)
|
|
15.5
|
|
||||
Total
|
|
$
|
189.7
|
|
|
$
|
8.8
|
|
|
$
|
(4.4
|
)
|
|
$
|
194.1
|
|
(in millions)
|
|
Less Than 12 Months
|
|
12 Months or Greater
|
|
Total
|
||||||||||||||||||
Fair Value
|
|
Gross
Unrealized
Losses
|
Fair Value
|
|
Gross
Unrealized
Losses
|
Fair Value
|
|
Gross
Unrealized
Losses
|
||||||||||||||||
|
|
|
||||||||||||||||||||||
as of March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt securities
|
|
$
|
10.2
|
|
|
$
|
(2.1
|
)
|
|
$
|
0.6
|
|
|
$
|
—
|
|
|
$
|
10.8
|
|
|
$
|
(2.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
as of September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sponsored funds
|
|
$
|
48.8
|
|
|
$
|
(2.1
|
)
|
|
$
|
21.0
|
|
|
$
|
(0.5
|
)
|
|
$
|
69.8
|
|
|
$
|
(2.6
|
)
|
Debt and other equity securities
|
|
10.9
|
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
10.9
|
|
|
(1.8
|
)
|
||||||
Total
|
|
$
|
59.7
|
|
|
$
|
(3.9
|
)
|
|
$
|
21.0
|
|
|
$
|
(0.5
|
)
|
|
$
|
80.7
|
|
|
$
|
(4.4
|
)
|
(in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
NAV as a
Practical
Expedient
|
|
Total
|
||||||||||
as of March 31, 2019
|
|
|
|
|
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities, at fair value
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sponsored funds
|
|
$
|
281.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
72.9
|
|
|
$
|
354.3
|
|
Other equity securities
|
|
23.4
|
|
|
0.9
|
|
|
5.7
|
|
|
38.8
|
|
|
68.8
|
|
|||||
Debt securities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading
|
|
2.6
|
|
|
38.3
|
|
|
16.2
|
|
|
—
|
|
|
57.1
|
|
|||||
Available-for-sale
|
|
—
|
|
|
10.7
|
|
|
0.3
|
|
|
—
|
|
|
11.0
|
|
|||||
Life settlement contracts
|
|
—
|
|
|
—
|
|
|
11.7
|
|
|
—
|
|
|
11.7
|
|
|||||
Total Assets Measured at Fair Value
|
|
$
|
307.4
|
|
|
$
|
49.9
|
|
|
$
|
33.9
|
|
|
$
|
111.7
|
|
|
$
|
502.9
|
|
(in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
as of September 30, 2018
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Investment securities, trading
|
|
|
|
|
|
|
|
|
||||||||
Sponsored funds
|
|
$
|
248.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
248.1
|
|
Debt and other equity securities
|
|
26.6
|
|
|
50.5
|
|
|
20.5
|
|
|
97.6
|
|
||||
Investment securities, available-for-sale
|
|
|
|
|
|
|
|
|
||||||||
Sponsored funds
|
|
178.6
|
|
|
—
|
|
|
—
|
|
|
178.6
|
|
||||
Debt and other equity securities
|
|
4.4
|
|
|
10.8
|
|
|
0.3
|
|
|
15.5
|
|
||||
Life settlement contracts
|
|
—
|
|
|
—
|
|
|
11.8
|
|
|
11.8
|
|
||||
Total Assets Measured at Fair Value
|
|
$
|
457.7
|
|
|
$
|
61.3
|
|
|
$
|
32.6
|
|
|
$
|
551.6
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liability
|
|
|
|
|
|
|
|
|
||||||||
Contingent consideration liability
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
38.7
|
|
|
$
|
38.7
|
|
|
|
2019
|
|
2018
|
||||||||||||
(in millions)
|
|
Investments
|
|
Contingent
Consideration Liability |
|
Investments
|
|
Contingent
Consideration Liability |
||||||||
for the three months ended March 31,
|
|
|
|
|
||||||||||||
Balance at beginning of period
|
|
$
|
29.0
|
|
|
$
|
(40.0
|
)
|
|
$
|
210.1
|
|
|
$
|
(62.0
|
)
|
Total realized and unrealized gains (losses)
|
|
|
|
|
|
|
|
|
||||||||
Included in investment and other income, net
|
|
0.8
|
|
|
—
|
|
|
1.8
|
|
|
—
|
|
||||
Included in general, administrative and other expense
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
|
(1.6
|
)
|
||||
Purchases
|
|
5.0
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
||||
Settlements
|
|
(0.9
|
)
|
|
40.7
|
|
|
(1.9
|
)
|
|
32.4
|
|
||||
Foreign exchange revaluation
|
|
—
|
|
|
—
|
|
|
(3.3
|
)
|
|
—
|
|
||||
Balance at End of Period
|
|
$
|
33.9
|
|
|
$
|
—
|
|
|
$
|
208.1
|
|
|
$
|
(31.2
|
)
|
Change in unrealized gains (losses) included in net income (loss) relating to assets and liability held at end of period
|
|
$
|
0.3
|
|
|
$
|
—
|
|
|
$
|
0.8
|
|
|
$
|
(1.6
|
)
|
|
|
2019
|
|
2018
|
||||||||||||
(in millions)
|
|
Investments
|
|
Contingent
Consideration Liability |
|
Investments
|
|
Contingent
Consideration Liability |
||||||||
for the six months ended March 31,
|
|
|
|
|
||||||||||||
Balance at beginning of period
|
|
$
|
32.6
|
|
|
$
|
(38.7
|
)
|
|
$
|
199.9
|
|
|
$
|
(51.0
|
)
|
Total realized and unrealized gains (losses)
|
|
|
|
|
|
|
|
|
||||||||
Included in investment and other income, net
|
|
3.6
|
|
|
—
|
|
|
3.0
|
|
|
—
|
|
||||
Included in general, administrative and other expense
|
|
—
|
|
|
(2.0
|
)
|
|
—
|
|
|
(5.6
|
)
|
||||
Purchases
|
|
5.0
|
|
|
—
|
|
|
6.7
|
|
|
—
|
|
||||
Sales
|
|
(4.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Settlements
|
|
(0.9
|
)
|
|
40.7
|
|
|
(1.9
|
)
|
|
32.4
|
|
||||
Transfers out of Level 3
|
|
(2.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Foreign exchange revaluation and other
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
(7.0
|
)
|
||||
Balance at End of Period
|
|
$
|
33.9
|
|
|
$
|
—
|
|
|
$
|
208.1
|
|
|
$
|
(31.2
|
)
|
Change in unrealized gains (losses) included in net income (loss) relating to assets and liability held at end of period
|
|
$
|
3.0
|
|
|
$
|
—
|
|
|
$
|
2.0
|
|
|
$
|
(5.6
|
)
|
1
|
Based on the relative fair value of the instruments.
|
(in millions)
|
|
|
|
|
|
|
|
|
||
as of September 30, 2018
|
|
Fair Value
|
|
Valuation Technique
|
|
Significant Unobservable Inputs
|
|
Range (Weighted Average)
|
||
Investment securities, trading – debt and other equity securities
|
|
$
|
20.5
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
4.1%–12.3% (5.8%)
|
Risk premium
|
|
2.0%–6.7% (3.6%)
|
||||||||
|
|
|
|
|
|
|
|
|
||
Life settlement contracts
|
|
11.8
|
|
|
Discounted cash flow
|
|
Life expectancy
|
|
20–115 months (61)
|
|
Discount rate
|
|
8.0%–20.0% (13.1%)
|
||||||||
|
|
|
|
|
|
|
|
|
||
Contingent consideration liability
|
|
38.7
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
13.0%
|
(in millions)
|
|
Fair Value
Level
|
|
March 31, 2019
|
|
September 30, 2018
|
||||||||||||
|
|
Carrying
Value
|
|
Estimated
Fair Value
|
|
Carrying
Value
|
|
Estimated
Fair Value
|
||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
1
|
|
$
|
5,680.6
|
|
|
$
|
5,680.6
|
|
|
$
|
6,610.8
|
|
|
$
|
6,610.8
|
|
Other investments
|
|
|
|
|
|
|
|
|
|
|
||||||||
Time deposits
|
|
2
|
|
14.9
|
|
|
14.9
|
|
|
12.3
|
|
|
12.3
|
|
||||
Equity securities
|
|
3
|
|
14.9
|
|
|
15.1
|
|
|
81.8
|
|
|
103.6
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liability
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt
|
|
2
|
|
$
|
697.9
|
|
|
$
|
695.0
|
|
|
$
|
695.9
|
|
|
$
|
671.1
|
|
(in millions)
|
|
March 31,
2019 |
|
September 30,
2018 |
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
265.4
|
|
|
$
|
299.8
|
|
Receivables
|
|
93.5
|
|
|
114.2
|
|
||
Investments, at fair value
|
|
2,139.6
|
|
|
2,109.4
|
|
||
Other assets
|
|
—
|
|
|
1.0
|
|
||
Total Assets
|
|
$
|
2,498.5
|
|
|
$
|
2,524.4
|
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
||||
Accounts payable and accrued expenses
|
|
$
|
44.9
|
|
|
$
|
68.0
|
|
Debt
|
|
32.8
|
|
|
32.6
|
|
||
Other liabilities
|
|
—
|
|
|
9.3
|
|
||
Total liabilities
|
|
77.7
|
|
|
109.9
|
|
||
Redeemable Noncontrolling Interests
|
|
819.3
|
|
|
1,043.6
|
|
||
Stockholders
’
Equity
|
|
|
|
|
||||
Franklin Resources, Inc.’s interests
|
|
1,161.2
|
|
|
1,092.6
|
|
||
Nonredeemable noncontrolling interests
|
|
440.3
|
|
|
278.3
|
|
||
Total stockholders’ equity
|
|
1,601.5
|
|
|
1,370.9
|
|
||
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders
’
Equity
|
|
$
|
2,498.5
|
|
|
$
|
2,524.4
|
|
(in millions)
|
|
March 31,
2019 |
|
September 30,
2018 |
||||
Investment securities traded in active markets
|
|
$
|
1,521.5
|
|
|
$
|
1,651.8
|
|
Other equity securities
|
|
418.9
|
|
|
311.0
|
|
||
Other debt securities
|
|
131.7
|
|
|
114.3
|
|
||
Loans
|
|
38.4
|
|
|
32.3
|
|
||
Real estate
|
|
29.1
|
|
|
—
|
|
||
Total
|
|
$
|
2,139.6
|
|
|
$
|
2,109.4
|
|
(in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
NAV as a
Practical Expedient |
|
Total
|
||||||||||
as of March 31, 2019
|
|
|
|
|
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
$
|
161.0
|
|
|
$
|
271.0
|
|
|
$
|
257.6
|
|
|
$
|
162.4
|
|
|
$
|
852.0
|
|
Debt securities
|
|
0.6
|
|
|
1,087.8
|
|
|
131.7
|
|
|
—
|
|
|
1,220.1
|
|
|||||
Loans
|
|
—
|
|
|
—
|
|
|
38.4
|
|
|
—
|
|
|
38.4
|
|
|||||
Real estate
|
|
—
|
|
|
—
|
|
|
29.1
|
|
|
—
|
|
|
29.1
|
|
|||||
Total Assets Measured at Fair Value
|
|
$
|
161.6
|
|
|
$
|
1,358.8
|
|
|
$
|
456.8
|
|
|
$
|
162.4
|
|
|
$
|
2,139.6
|
|
(in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
NAV as a
Practical Expedient |
|
Total
|
||||||||||
as of September 30, 2018
|
|
|
|
|
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
$
|
270.7
|
|
|
$
|
154.8
|
|
|
$
|
199.7
|
|
|
$
|
113.8
|
|
|
$
|
739.0
|
|
Debt securities
|
|
0.6
|
|
|
1,219.5
|
|
|
118.0
|
|
|
—
|
|
|
1,338.1
|
|
|||||
Loans
|
|
—
|
|
|
—
|
|
|
32.3
|
|
|
—
|
|
|
32.3
|
|
|||||
Total Assets Measured at Fair Value
|
|
$
|
271.3
|
|
|
$
|
1,374.3
|
|
|
$
|
350.0
|
|
|
$
|
113.8
|
|
|
$
|
2,109.4
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other liabilities
|
|
$
|
0.6
|
|
|
$
|
8.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9.3
|
|
(in millions)
|
|
Equity
Securities |
|
Debt
Securities |
|
Loans
|
|
Real Estate
|
|
Total
Level 3 Assets |
||||||||||
for the three months ended March 31, 2019
|
||||||||||||||||||||
Balance at January 1, 2019
|
|
$
|
193.6
|
|
|
$
|
100.9
|
|
|
$
|
39.2
|
|
|
$
|
—
|
|
|
$
|
333.7
|
|
Acquisition
|
|
45.2
|
|
|
39.7
|
|
|
—
|
|
|
—
|
|
|
84.9
|
|
|||||
Realized and unrealized gains (losses) included in investment and other income, net
|
|
(4.5
|
)
|
|
(3.8
|
)
|
|
(0.5
|
)
|
|
3.4
|
|
|
(5.4
|
)
|
|||||
Purchases
|
|
25.7
|
|
|
9.4
|
|
|
—
|
|
|
25.6
|
|
|
60.7
|
|
|||||
Sales
|
|
(0.3
|
)
|
|
(14.2
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
(14.8
|
)
|
|||||
Foreign exchange revaluation
|
|
(2.1
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
0.1
|
|
|
(2.3
|
)
|
|||||
Balance at March 31, 2019
|
|
$
|
257.6
|
|
|
$
|
131.7
|
|
|
$
|
38.4
|
|
|
$
|
29.1
|
|
|
$
|
456.8
|
|
Change in unrealized gains (losses) included in net income (loss) relating to assets held at the end of period
|
|
$
|
(4.8
|
)
|
|
$
|
(3.2
|
)
|
|
$
|
(0.2
|
)
|
|
$
|
3.4
|
|
|
$
|
(4.8
|
)
|
(in millions)
|
|
Equity
Securities |
|
Debt
Securities |
|
Loans
|
|
Real Estate
|
|
Total
Level 3 Assets |
||||||||||
for the six months ended March 31, 2019
|
||||||||||||||||||||
Balance at October 1, 2018
|
|
$
|
199.7
|
|
|
$
|
118.0
|
|
|
$
|
32.3
|
|
|
$
|
—
|
|
|
$
|
350.0
|
|
Acquisition
|
|
45.2
|
|
|
39.7
|
|
|
—
|
|
|
—
|
|
|
84.9
|
|
|||||
Realized and unrealized gains (losses) included in investment and other income, net
|
|
6.9
|
|
|
(11.0
|
)
|
|
(1.5
|
)
|
|
3.4
|
|
|
(2.2
|
)
|
|||||
Purchases
|
|
35.4
|
|
|
9.4
|
|
|
8.2
|
|
|
25.6
|
|
|
78.6
|
|
|||||
Sales
|
|
(0.4
|
)
|
|
(20.1
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
(21.1
|
)
|
|||||
Settlements
|
|
(1.0
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|||||
Transfers into Level 3
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|||||
Transfers out of Level 3
|
|
(25.4
|
)
|
|
(3.6
|
)
|
|
—
|
|
|
—
|
|
|
(29.0
|
)
|
|||||
Foreign exchange revaluation
|
|
(2.9
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
0.1
|
|
|
(3.4
|
)
|
|||||
Balance at March 31, 2019
|
|
$
|
257.6
|
|
|
$
|
131.7
|
|
|
$
|
38.4
|
|
|
$
|
29.1
|
|
|
$
|
456.8
|
|
Change in unrealized gains (losses) included in net income (loss) relating to assets held at the end of period
|
|
$
|
7.0
|
|
|
$
|
(3.9
|
)
|
|
$
|
(0.9
|
)
|
|
$
|
3.4
|
|
|
$
|
5.6
|
|
|
|
Three Months Ended
March 31, 2018 |
|
Six Months Ended
March 31, 2018 |
||||||||||||||||||||
|
|
Equity
Securities |
|
Debt
Securities |
|
Total
Level 3 Assets |
|
Equity
Securities |
|
Debt
Securities |
|
Total
Level 3 Assets |
||||||||||||
(in millions)
|
|
|||||||||||||||||||||||
Balance at beginning of period
|
|
$
|
159.6
|
|
|
$
|
136.2
|
|
|
$
|
295.8
|
|
|
$
|
160.7
|
|
|
$
|
135.4
|
|
|
$
|
296.1
|
|
Realized and unrealized gains included in investment and other income, net
|
|
15.6
|
|
|
2.0
|
|
|
17.6
|
|
|
17.5
|
|
|
2.1
|
|
|
19.6
|
|
||||||
Purchases
|
|
11.5
|
|
|
10.5
|
|
|
22.0
|
|
|
22.6
|
|
|
10.5
|
|
|
33.1
|
|
||||||
Sales
|
|
—
|
|
|
(37.7
|
)
|
|
(37.7
|
)
|
|
(14.9
|
)
|
|
(37.7
|
)
|
|
(52.6
|
)
|
||||||
Foreign exchange revaluation
|
|
1.7
|
|
|
1.2
|
|
|
2.9
|
|
|
2.5
|
|
|
1.9
|
|
|
4.4
|
|
||||||
Balance at End of Period
|
|
$
|
188.4
|
|
|
$
|
112.2
|
|
|
$
|
300.6
|
|
|
$
|
188.4
|
|
|
$
|
112.2
|
|
|
$
|
300.6
|
|
Change in unrealized gains included in net income (loss) relating to assets held at the end of period
|
|
$
|
15.4
|
|
|
$
|
—
|
|
|
$
|
15.4
|
|
|
$
|
16.3
|
|
|
$
|
0.1
|
|
|
$
|
16.4
|
|
1
|
Based on the relative fair value of the instruments.
|
(in millions)
|
|
|
|
|
|
|
|
|
||
as of September 30, 2018
|
|
Fair Value
|
|
Valuation Technique
|
|
Significant Unobservable Inputs
|
|
Range (Weighted Average)
|
||
Equity securities
|
|
$
|
171.9
|
|
|
Market comparable companies
|
|
EBITDA multiple
|
|
5.0–13.6 (9.3)
|
27.8
|
|
Discounted cash flow
|
Discount rate
|
8.0%–16.5% (14.1%)
|
||||||
|
|
|
|
|
|
|
|
|
||
Debt securities
|
|
78.7
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
7.0%–14.8% (10.8%)
|
|
33.9
|
|
Comparable trading multiple
|
Price-to-earnings ratio
|
10.0
|
||||||
Enterprise value/
EBITDA multiple |
20.9
|
|||||||||
5.4
|
|
Market pricing
|
Private sale pricing
|
$42 per $100 of par
|
||||||
|
|
|
|
|
|
|
|
|
||
Loans
|
|
32.3
|
|
|
Discounted cash flow
|
|
Loss-adjusted discount rate
|
|
3.0%–22.7% (12.0%)
|
(in millions)
|
|
Fair Value
Level
|
|
March 31, 2019
|
|
September 30, 2018
|
||||||||||||
|
|
Carrying
Value
|
|
Estimated
Fair Value
|
|
Carrying
Value
|
|
Estimated
Fair Value
|
||||||||||
Financial Asset
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
1
|
|
$
|
265.4
|
|
|
$
|
265.4
|
|
|
$
|
299.8
|
|
|
$
|
299.8
|
|
Financial Liability
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt
|
|
3
|
|
$
|
32.8
|
|
|
$
|
32.6
|
|
|
$
|
32.6
|
|
|
$
|
32.4
|
|
(in millions)
|
|
|
|
|
||||
for the six months ended March 31,
|
|
2019
|
|
2018
|
||||
Balance at beginning of period
|
|
$
|
1,043.6
|
|
|
$
|
1,941.9
|
|
Net income
|
|
6.1
|
|
|
26.7
|
|
||
Net (distributions) subscriptions and other
|
|
(6.2
|
)
|
|
115.8
|
|
||
Net deconsolidations
|
|
(224.2
|
)
|
|
—
|
|
||
Balance at End of Period
|
|
$
|
819.3
|
|
|
$
|
2,084.4
|
|
(in millions)
|
|
March 31,
2019 |
|
September 30,
2018 |
||||
Investments
|
|
$
|
346.1
|
|
|
$
|
161.8
|
|
Receivables
|
|
168.3
|
|
|
140.1
|
|
||
Total
|
|
$
|
514.4
|
|
|
$
|
301.9
|
|
(shares in thousands)
|
|
Time-Based
Shares
|
|
Performance-
Based Shares
|
|
Total
Shares
|
|
Weighted-Average
Grant-Date
Fair Value
|
|||||
for the six months ended March 31, 2019
|
|
|
|
|
|||||||||
Nonvested balance at October 1, 2018
|
|
2,678
|
|
|
1,813
|
|
|
4,491
|
|
|
$
|
39.08
|
|
Granted
|
|
3,785
|
|
|
890
|
|
|
4,675
|
|
|
30.68
|
|
|
Vested
|
|
(274
|
)
|
|
(606
|
)
|
|
(880
|
)
|
|
37.87
|
|
|
Forfeited/canceled
|
|
(188
|
)
|
|
(200
|
)
|
|
(388
|
)
|
|
37.56
|
|
|
Nonvested Balance at March 31, 2019
|
|
6,001
|
|
|
1,897
|
|
|
7,898
|
|
|
$
|
34.32
|
|
|
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
||||||||||||
(in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Investment and Other Income, Net
|
|
|
|
|
|
|
|
|
||||||||
Dividend income
|
|
$
|
24.2
|
|
|
$
|
8.7
|
|
|
$
|
49.8
|
|
|
$
|
13.4
|
|
Interest income
|
|
8.5
|
|
|
25.7
|
|
|
17.5
|
|
|
49.5
|
|
||||
Gains (losses) on investments, net
|
|
(0.6
|
)
|
|
5.5
|
|
|
(16.4
|
)
|
|
6.1
|
|
||||
Income from investments in equity method investees
|
|
47.2
|
|
|
10.7
|
|
|
9.6
|
|
|
45.9
|
|
||||
Gains (losses) on investments of CIPs, net
|
|
31.8
|
|
|
38.6
|
|
|
(17.2
|
)
|
|
54.6
|
|
||||
Rental income
|
|
5.0
|
|
|
4.0
|
|
|
9.9
|
|
|
7.7
|
|
||||
Foreign currency exchange gains (losses), net
|
|
2.5
|
|
|
(7.8
|
)
|
|
7.2
|
|
|
(10.7
|
)
|
||||
Other, net
|
|
0.1
|
|
|
2.0
|
|
|
(0.8
|
)
|
|
2.2
|
|
||||
Total
|
|
118.7
|
|
|
87.4
|
|
|
59.6
|
|
|
168.7
|
|
||||
Interest Expense
|
|
(5.7
|
)
|
|
(10.0
|
)
|
|
(12.1
|
)
|
|
(20.8
|
)
|
||||
Other Income, Net
|
|
$
|
113.0
|
|
|
$
|
77.4
|
|
|
$
|
47.5
|
|
|
$
|
147.9
|
|
(in millions)
|
|
Currency
Translation Adjustments |
|
Unrealized
Losses on Defined Benefit Plans |
|
Unrealized
Losses on Investments |
|
Total
|
||||||||
for the three months ended March 31, 2019
|
|
|
|
|
||||||||||||
Balance at January 1, 2019
|
|
$
|
(387.5
|
)
|
|
$
|
(4.6
|
)
|
|
$
|
(1.5
|
)
|
|
$
|
(393.6
|
)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) before reclassifications, net of tax
|
|
7.6
|
|
|
(0.7
|
)
|
|
(0.1
|
)
|
|
6.8
|
|
||||
Reclassifications to net investment and other income, net of tax
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
||||
Total other comprehensive income (loss)
|
|
7.9
|
|
|
(0.7
|
)
|
|
(0.1
|
)
|
|
7.1
|
|
||||
Balance at March 31, 2019
|
|
$
|
(379.6
|
)
|
|
$
|
(5.3
|
)
|
|
$
|
(1.6
|
)
|
|
$
|
(386.5
|
)
|
(in millions)
|
|
Currency
Translation Adjustments |
|
Unrealized
Losses on Defined Benefit Plans |
|
Unrealized
Gains (Losses) on Investments |
|
Total
|
||||||||
for the six months ended March 31, 2019
|
|
|
|
|
||||||||||||
Balance at October 1, 2018
|
|
$
|
(372.9
|
)
|
|
$
|
(4.2
|
)
|
|
$
|
6.5
|
|
|
$
|
(370.6
|
)
|
Adoption of new accounting guidance
|
|
—
|
|
|
—
|
|
|
(8.0
|
)
|
|
(8.0
|
)
|
||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive loss before reclassifications, net of tax
|
|
(6.8
|
)
|
|
(1.1
|
)
|
|
(0.1
|
)
|
|
(8.0
|
)
|
||||
Reclassifications to net investment and other income, net of tax
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Total other comprehensive loss
|
|
(6.7
|
)
|
|
(1.1
|
)
|
|
(0.1
|
)
|
|
(7.9
|
)
|
||||
Balance at March 31, 2019
|
|
$
|
(379.6
|
)
|
|
$
|
(5.3
|
)
|
|
$
|
(1.6
|
)
|
|
$
|
(386.5
|
)
|
(in millions)
|
|
Currency
Translation Adjustments |
|
Unrealized
Losses on Defined Benefit Plans |
|
Unrealized
Gains on Investments |
|
Total
|
||||||||
for the three months ended March 31, 2018
|
|
|
|
|
||||||||||||
Balance at January 1, 2018
|
|
$
|
(265.2
|
)
|
|
$
|
(7.1
|
)
|
|
$
|
5.7
|
|
|
$
|
(266.6
|
)
|
Adoption of new accounting guidance
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income before reclassifications, net of tax
|
|
8.3
|
|
|
0.4
|
|
|
1.5
|
|
|
10.2
|
|
||||
Reclassifications to net investment and other income, net of tax
|
|
(1.5
|
)
|
|
—
|
|
|
(1.7
|
)
|
|
(3.2
|
)
|
||||
Total other comprehensive income (loss)
|
|
6.8
|
|
|
0.4
|
|
|
(0.2
|
)
|
|
7.0
|
|
||||
Balance at March 31, 2018
|
|
$
|
(258.4
|
)
|
|
$
|
(6.8
|
)
|
|
$
|
5.5
|
|
|
$
|
(259.7
|
)
|
(in millions)
|
|
Currency
Translation Adjustments |
|
Unrealized
Losses on Defined Benefit Plans |
|
Unrealized
Gains on Investments |
|
Total
|
||||||||
for the six months ended March 31, 2018
|
|
|
|
|
||||||||||||
Balance at October 1, 2017
|
|
$
|
(281.0
|
)
|
|
$
|
(6.0
|
)
|
|
$
|
2.2
|
|
|
$
|
(284.8
|
)
|
Adoption of new accounting guidance
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) before reclassifications, net of tax
|
|
24.1
|
|
|
(0.7
|
)
|
|
5.0
|
|
|
28.4
|
|
||||
Reclassifications to net investment and other income, net of tax
|
|
(1.5
|
)
|
|
—
|
|
|
(1.7
|
)
|
|
(3.2
|
)
|
||||
Total other comprehensive income (loss)
|
|
22.6
|
|
|
(0.7
|
)
|
|
3.3
|
|
|
25.2
|
|
||||
Balance at March 31, 2018
|
|
$
|
(258.4
|
)
|
|
$
|
(6.8
|
)
|
|
$
|
5.5
|
|
|
$
|
(259.7
|
)
|
|
|
Three Months Ended
March 31, |
|
Percent
Change
|
|
Six Months Ended
March 31, |
|
Percent
Change
|
||||||||||||||
(in millions, except per share data)
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||
Operating revenues
|
|
$
|
1,433.8
|
|
|
$
|
1,617.8
|
|
|
(11
|
%)
|
|
$
|
2,845.3
|
|
|
$
|
3,233.3
|
|
|
(12
|
%)
|
Operating income
|
|
379.5
|
|
|
555.7
|
|
|
(32
|
%)
|
|
791.0
|
|
|
1,136.8
|
|
|
(30
|
%)
|
||||
Net income (loss) attributable to Franklin Resources, Inc.
|
|
367.5
|
|
|
443.2
|
|
|
(17
|
%)
|
|
643.4
|
|
|
(140.1
|
)
|
|
NM
|
|
||||
Diluted earnings (loss) per share
|
|
$
|
0.72
|
|
|
$
|
0.78
|
|
|
(8
|
%)
|
|
$
|
1.25
|
|
|
$
|
(0.29
|
)
|
|
NM
|
|
Operating margin
1
|
|
26.5
|
%
|
|
34.3
|
%
|
|
|
|
27.8
|
%
|
|
35.2
|
%
|
|
|
1
|
Defined as operating income divided by total operating revenues.
|
(in billions)
|
|
March 31,
2019 |
|
March 31,
2018 |
|
Percent
Change
|
|||||
Equity
|
|
|
|
|
|
|
|||||
Global/international
|
|
$
|
174.4
|
|
|
$
|
202.7
|
|
|
(14
|
%)
|
United States
|
|
109.5
|
|
|
106.6
|
|
|
3
|
%
|
||
Total equity
|
|
283.9
|
|
|
309.3
|
|
|
(8
|
%)
|
||
Multi-Asset/Balanced
|
|
134.7
|
|
|
137.6
|
|
|
(2
|
%)
|
||
Fixed Income
|
|
|
|
|
|
|
|||||
Tax-free
|
|
63.4
|
|
|
67.0
|
|
|
(5
|
%)
|
||
Taxable
|
|
|
|
|
|
|
|||||
Global/international
|
|
152.5
|
|
|
165.0
|
|
|
(8
|
%)
|
||
United States
|
|
68.9
|
|
|
48.2
|
|
|
43
|
%
|
||
Total fixed income
|
|
284.8
|
|
|
280.2
|
|
|
2
|
%
|
||
Cash Management
|
|
8.9
|
|
|
10.4
|
|
|
(14
|
%)
|
||
Total
|
|
$
|
712.3
|
|
|
$
|
737.5
|
|
|
(3
|
%)
|
(in billions)
|
|
Average AUM
|
|
Percent
Change
|
|
Mix of Average AUM
|
|||||||||||
for the three months ended March 31,
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|||||||
Global/international
|
|
$
|
173.6
|
|
|
$
|
210.9
|
|
|
(18
|
%)
|
|
25
|
%
|
|
28
|
%
|
United States
|
|
105.1
|
|
|
109.5
|
|
|
(4
|
%)
|
|
16
|
%
|
|
15
|
%
|
||
Total equity
|
|
278.7
|
|
|
320.4
|
|
|
(13
|
%)
|
|
41
|
%
|
|
43
|
%
|
||
Multi-Asset/Balanced
|
|
131.1
|
|
|
141.5
|
|
|
(7
|
%)
|
|
19
|
%
|
|
19
|
%
|
||
Fixed Income
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tax-free
|
|
62.6
|
|
|
68.0
|
|
|
(8
|
%)
|
|
9
|
%
|
|
9
|
%
|
||
Taxable
|
|
|
|
|
|
|
|
|
|
|
|||||||
Global/international
|
|
151.1
|
|
|
165.1
|
|
|
(8
|
%)
|
|
22
|
%
|
|
22
|
%
|
||
United States
|
|
55.5
|
|
|
49.2
|
|
|
13
|
%
|
|
8
|
%
|
|
6
|
%
|
||
Total fixed income
|
|
269.2
|
|
|
282.3
|
|
|
(5
|
%)
|
|
39
|
%
|
|
37
|
%
|
||
Cash Management
|
|
9.6
|
|
|
7.6
|
|
|
26
|
%
|
|
1
|
%
|
|
1
|
%
|
||
Total
|
|
$
|
688.6
|
|
|
$
|
751.8
|
|
|
(8
|
%)
|
|
100
|
%
|
|
100
|
%
|
(in billions)
|
|
Average AUM
|
|
Percent
Change
|
|
Mix of Average AUM
|
|||||||||||
for the six months ended March 31,
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|||||||
Global/international
|
|
$
|
178.0
|
|
|
$
|
210.3
|
|
|
(15
|
%)
|
|
26
|
%
|
|
28
|
%
|
United States
|
|
107.0
|
|
|
109.0
|
|
|
(2
|
%)
|
|
16
|
%
|
|
14
|
%
|
||
Total equity
|
|
285.0
|
|
|
319.3
|
|
|
(11
|
%)
|
|
42
|
%
|
|
42
|
%
|
||
Multi-Asset/Balanced
|
|
132.6
|
|
|
142.1
|
|
|
(7
|
%)
|
|
19
|
%
|
|
19
|
%
|
||
Fixed Income
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Tax-free
|
|
62.7
|
|
|
69.0
|
|
|
(9
|
%)
|
|
9
|
%
|
|
9
|
%
|
||
Taxable
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Global/international
|
|
150.8
|
|
|
164.8
|
|
|
(8
|
%)
|
|
22
|
%
|
|
22
|
%
|
||
United States
|
|
50.5
|
|
|
49.7
|
|
|
2
|
%
|
|
7
|
%
|
|
7
|
%
|
||
Total fixed income
|
|
264.0
|
|
|
283.5
|
|
|
(7
|
%)
|
|
38
|
%
|
|
38
|
%
|
||
Cash Management
|
|
9.5
|
|
|
7.1
|
|
|
34
|
%
|
|
1
|
%
|
|
1
|
%
|
||
Total
|
|
$
|
691.1
|
|
|
$
|
752.0
|
|
|
(8
|
%)
|
|
100
|
%
|
|
100
|
%
|
(in billions)
|
|
Three Months Ended
March 31, |
|
Percent
Change
|
|
Six Months Ended
March 31, |
|
Percent
Change
|
||||||||||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|||||||||||||
Beginning AUM
|
|
$
|
649.9
|
|
|
$
|
753.8
|
|
|
(14
|
%)
|
|
$
|
717.1
|
|
|
$
|
753.2
|
|
|
(5
|
%)
|
Long-term sales
|
|
27.0
|
|
|
28.6
|
|
|
(6
|
%)
|
|
48.7
|
|
|
56.7
|
|
|
(14
|
%)
|
||||
Long-term redemptions
|
|
(36.2
|
)
|
|
(41.7
|
)
|
|
(13
|
%)
|
|
(78.6
|
)
|
|
(81.1
|
)
|
|
(3
|
%)
|
||||
Long-term net exchanges
|
|
—
|
|
|
(0.1
|
)
|
|
(100
|
%)
|
|
(0.5
|
)
|
|
(0.2
|
)
|
|
150
|
%
|
||||
Long-term reinvested distributions
|
|
2.9
|
|
|
3.2
|
|
|
(9
|
%)
|
|
16.8
|
|
|
12.3
|
|
|
37
|
%
|
||||
Net flows
|
|
(6.3
|
)
|
|
(10.0
|
)
|
|
(37
|
%)
|
|
(13.6
|
)
|
|
(12.3
|
)
|
|
11
|
%
|
||||
Acquisition
|
|
26.4
|
|
|
—
|
|
|
NM
|
|
|
26.4
|
|
|
—
|
|
|
NM
|
|
||||
Net market change, distributions and other
|
|
42.3
|
|
|
(6.3
|
)
|
|
NM
|
|
|
(17.6
|
)
|
|
(3.4
|
)
|
|
418
|
%
|
||||
Ending AUM
|
|
$
|
712.3
|
|
|
$
|
737.5
|
|
|
(3
|
%)
|
|
$
|
712.3
|
|
|
$
|
737.5
|
|
|
(3
|
%)
|
(in billions)
|
|
Equity
|
|
Multi-Asset/
Balanced |
|
Fixed Income
|
|
Cash
Management |
|
Total
|
||||||||||||||||||||||
for the three months ended
March 31, 2019 |
|
Global/
International
|
|
United
States
|
|
|
Tax-Free
|
|
Taxable
Global/
International
|
|
Taxable
United
States
|
|
|
|||||||||||||||||||
AUM at January 1, 2019
|
|
$
|
166.0
|
|
|
$
|
97.1
|
|
|
$
|
124.8
|
|
|
$
|
62.0
|
|
|
$
|
147.7
|
|
|
$
|
42.2
|
|
|
$
|
10.1
|
|
|
$
|
649.9
|
|
Long-term sales
|
|
5.1
|
|
|
4.1
|
|
|
3.1
|
|
|
1.8
|
|
|
11.1
|
|
|
1.8
|
|
|
—
|
|
|
27.0
|
|
||||||||
Long-term redemptions
|
|
(12.0
|
)
|
|
(5.8
|
)
|
|
(4.4
|
)
|
|
(2.2
|
)
|
|
(8.6
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
(36.2
|
)
|
||||||||
Long-term net exchanges
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|
0.1
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Long-term reinvested distributions
|
|
0.1
|
|
|
—
|
|
|
1.1
|
|
|
0.4
|
|
|
1.1
|
|
|
0.2
|
|
|
—
|
|
|
2.9
|
|
||||||||
Net flows
|
|
(7.0
|
)
|
|
(1.8
|
)
|
|
(0.1
|
)
|
|
0.2
|
|
|
3.6
|
|
|
(1.2
|
)
|
|
—
|
|
|
(6.3
|
)
|
||||||||
Acquisition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.4
|
|
|
—
|
|
|
26.4
|
|
||||||||
Net market change, distributions and other
|
|
15.4
|
|
|
14.2
|
|
|
10.0
|
|
|
1.2
|
|
|
1.2
|
|
|
1.5
|
|
|
(1.2
|
)
|
|
42.3
|
|
||||||||
AUM at March 31, 2019
|
|
$
|
174.4
|
|
|
$
|
109.5
|
|
|
$
|
134.7
|
|
|
$
|
63.4
|
|
|
$
|
152.5
|
|
|
$
|
68.9
|
|
|
$
|
8.9
|
|
|
$
|
712.3
|
|
(in billions)
|
|
Equity
|
|
Multi-Asset/
Balanced |
|
Fixed Income
|
|
Cash
Management |
|
Total
|
||||||||||||||||||||||
for the three months ended
March 31, 2018 |
|
Global/
International
|
|
United
States
|
|
|
Tax-Free
|
|
Taxable
Global/
International
|
|
Taxable
United
States
|
|
|
|||||||||||||||||||
AUM at January 1, 2018
|
|
$
|
212.0
|
|
|
$
|
109.4
|
|
|
$
|
142.7
|
|
|
$
|
69.4
|
|
|
$
|
163.7
|
|
|
$
|
50.0
|
|
|
$
|
6.6
|
|
|
$
|
753.8
|
|
Long-term sales
|
|
6.6
|
|
|
4.1
|
|
|
4.0
|
|
|
1.7
|
|
|
10.3
|
|
|
1.9
|
|
|
—
|
|
|
28.6
|
|
||||||||
Long-term redemptions
|
|
(11.6
|
)
|
|
(6.7
|
)
|
|
(6.3
|
)
|
|
(3.1
|
)
|
|
(11.0
|
)
|
|
(3.0
|
)
|
|
—
|
|
|
(41.7
|
)
|
||||||||
Long-term net exchanges
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
||||||||
Long-term reinvested distributions
|
|
0.4
|
|
|
—
|
|
|
1.2
|
|
|
0.5
|
|
|
0.9
|
|
|
0.2
|
|
|
—
|
|
|
3.2
|
|
||||||||
Net flows
|
|
(4.5
|
)
|
|
(2.5
|
)
|
|
(1.1
|
)
|
|
(1.1
|
)
|
|
0.1
|
|
|
(0.9
|
)
|
|
—
|
|
|
(10.0
|
)
|
||||||||
Net market change, distributions and other
|
|
(4.8
|
)
|
|
(0.3
|
)
|
|
(4.0
|
)
|
|
(1.3
|
)
|
|
1.2
|
|
|
(0.9
|
)
|
|
3.8
|
|
|
(6.3
|
)
|
||||||||
AUM at March 31, 2018
|
|
$
|
202.7
|
|
|
$
|
106.6
|
|
|
$
|
137.6
|
|
|
$
|
67.0
|
|
|
$
|
165.0
|
|
|
$
|
48.2
|
|
|
$
|
10.4
|
|
|
$
|
737.5
|
|
(in billions)
|
|
Equity
|
|
Multi-Asset/
Balanced
|
|
Fixed Income
|
|
Cash
Management
|
|
Total
|
||||||||||||||||||||||
for the six months ended
March 31, 2019 |
|
Global/
International
|
|
United
States
|
|
|
Tax-Free
|
|
Taxable
Global/
International
|
|
Taxable
United
States
|
|
|
|||||||||||||||||||
AUM at October 1, 2018
|
|
$
|
194.4
|
|
|
$
|
115.2
|
|
|
$
|
138.9
|
|
|
$
|
63.9
|
|
|
$
|
150.6
|
|
|
$
|
44.8
|
|
|
$
|
9.3
|
|
|
$
|
717.1
|
|
Long-term sales
|
|
9.4
|
|
|
8.1
|
|
|
5.9
|
|
|
3.4
|
|
|
18.5
|
|
|
3.4
|
|
|
—
|
|
|
48.7
|
|
||||||||
Long-term redemptions
|
|
(21.7
|
)
|
|
(12.1
|
)
|
|
(11.2
|
)
|
|
(6.1
|
)
|
|
(20.7
|
)
|
|
(6.8
|
)
|
|
—
|
|
|
(78.6
|
)
|
||||||||
Long-term net exchanges
|
|
(0.6
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
||||||||
Long-term reinvested distributions
|
|
4.5
|
|
|
5.0
|
|
|
3.0
|
|
|
0.9
|
|
|
2.9
|
|
|
0.5
|
|
|
—
|
|
|
16.8
|
|
||||||||
Net flows
|
|
(8.4
|
)
|
|
1.0
|
|
|
(2.4
|
)
|
|
(1.8
|
)
|
|
0.9
|
|
|
(2.9
|
)
|
|
—
|
|
|
(13.6
|
)
|
||||||||
Acquisition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.4
|
|
|
—
|
|
|
26.4
|
|
||||||||
Net market change, distributions and other
|
|
(11.6
|
)
|
|
(6.7
|
)
|
|
(1.8
|
)
|
|
1.3
|
|
|
1.0
|
|
|
0.6
|
|
|
(0.4
|
)
|
|
(17.6
|
)
|
||||||||
AUM at March 31, 2019
|
|
$
|
174.4
|
|
|
$
|
109.5
|
|
|
$
|
134.7
|
|
|
$
|
63.4
|
|
|
$
|
152.5
|
|
|
$
|
68.9
|
|
|
$
|
8.9
|
|
|
$
|
712.3
|
|
(in billions)
|
|
Equity
|
|
Multi-Asset/
Balanced
|
|
Fixed Income
|
|
Cash
Management
|
|
Total
|
||||||||||||||||||||||
for the six months ended
March 31, 2018 |
|
Global/
International
|
|
United
States
|
|
|
Tax-Free
|
|
Taxable
Global/
International
|
|
Taxable
United
States
|
|
|
|||||||||||||||||||
AUM at October 1, 2017
|
|
$
|
209.8
|
|
|
$
|
107.2
|
|
|
$
|
143.3
|
|
|
$
|
71.0
|
|
|
$
|
165.0
|
|
|
$
|
50.6
|
|
|
$
|
6.3
|
|
|
$
|
753.2
|
|
Long-term sales
|
|
12.5
|
|
|
7.7
|
|
|
7.5
|
|
|
3.2
|
|
|
21.4
|
|
|
4.4
|
|
|
—
|
|
|
56.7
|
|
||||||||
Long-term redemptions
|
|
(23.2
|
)
|
|
(12.2
|
)
|
|
(12.1
|
)
|
|
(6.3
|
)
|
|
(21.2
|
)
|
|
(6.1
|
)
|
|
—
|
|
|
(81.1
|
)
|
||||||||
Long-term net exchanges
|
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
0.2
|
|
|
—
|
|
|
(0.2
|
)
|
||||||||
Long-term reinvested distributions
|
|
2.4
|
|
|
3.4
|
|
|
2.9
|
|
|
1.0
|
|
|
2.1
|
|
|
0.5
|
|
|
—
|
|
|
12.3
|
|
||||||||
Net flows
|
|
(8.1
|
)
|
|
(1.0
|
)
|
|
(1.6
|
)
|
|
(2.5
|
)
|
|
1.9
|
|
|
(1.0
|
)
|
|
—
|
|
|
(12.3
|
)
|
||||||||
Net market change, distributions and other
|
|
1.0
|
|
|
0.4
|
|
|
(4.1
|
)
|
|
(1.5
|
)
|
|
(1.9
|
)
|
|
(1.4
|
)
|
|
4.1
|
|
|
(3.4
|
)
|
||||||||
AUM at March 31, 2018
|
|
$
|
202.7
|
|
|
$
|
106.6
|
|
|
$
|
137.6
|
|
|
$
|
67.0
|
|
|
$
|
165.0
|
|
|
$
|
48.2
|
|
|
$
|
10.4
|
|
|
$
|
737.5
|
|
|
|
Three Months Ended
March 31, |
|
Percent
Change |
|
Six Months Ended
March 31, |
|
Percent
Change |
||||||||||||||
(in billions)
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||
United States
|
|
$
|
464.8
|
|
|
$
|
494.1
|
|
|
(6
|
%)
|
|
$
|
465.7
|
|
|
$
|
496.5
|
|
|
(6
|
%)
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Europe, Middle East and Africa
|
|
91.4
|
|
|
110.8
|
|
|
(18
|
%)
|
|
92.8
|
|
|
109.9
|
|
|
(16
|
%)
|
||||
Asia-Pacific
|
|
90.1
|
|
|
97.7
|
|
|
(8
|
%)
|
|
89.7
|
|
|
96.1
|
|
|
(7
|
%)
|
||||
Canada
|
|
27.6
|
|
|
31.2
|
|
|
(12
|
%)
|
|
28.0
|
|
|
31.5
|
|
|
(11
|
%)
|
||||
Latin America
1
|
|
14.7
|
|
|
18.0
|
|
|
(18
|
%)
|
|
14.9
|
|
|
18.0
|
|
|
(17
|
%)
|
||||
Total international
|
|
223.8
|
|
|
257.7
|
|
|
(13
|
%)
|
|
225.4
|
|
|
255.5
|
|
|
(12
|
%)
|
||||
Total
|
|
$
|
688.6
|
|
|
$
|
751.8
|
|
|
(8
|
%)
|
|
$
|
691.1
|
|
|
$
|
752.0
|
|
|
(8
|
%)
|
1
|
Includes North America-based advisers serving non-resident clients.
|
|
|
Benchmark Comparison
1,2
|
|
Peer Group Comparison
1,3
|
||||||||||||||||||||
|
|
% of AUM Exceeding Benchmark
|
|
% of AUM in Top Two Peer Group Quartiles
|
||||||||||||||||||||
as of March 31, 2019
|
|
1-Year
|
|
3-Year
|
|
5-Year
|
|
10-Year
|
|
1-Year
|
|
3-Year
|
|
5-Year
|
|
10-Year
|
||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Global/international
|
|
18
|
%
|
|
19
|
%
|
|
23
|
%
|
|
26
|
%
|
|
54
|
%
|
|
32
|
%
|
|
32
|
%
|
|
31
|
%
|
United States
|
|
48
|
%
|
|
36
|
%
|
|
30
|
%
|
|
34
|
%
|
|
79
|
%
|
|
69
|
%
|
|
69
|
%
|
|
53
|
%
|
Total equity
|
|
30
|
%
|
|
26
|
%
|
|
26
|
%
|
|
29
|
%
|
|
65
|
%
|
|
48
|
%
|
|
48
|
%
|
|
41
|
%
|
Multi-Asset/Balanced
|
|
13
|
%
|
|
85
|
%
|
|
6
|
%
|
|
72
|
%
|
|
92
|
%
|
|
93
|
%
|
|
13
|
%
|
|
94
|
%
|
Fixed Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tax-free
|
|
37
|
%
|
|
38
|
%
|
|
40
|
%
|
|
45
|
%
|
|
54
|
%
|
|
42
|
%
|
|
42
|
%
|
|
49
|
%
|
Taxable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Global/international
|
|
64
|
%
|
|
83
|
%
|
|
61
|
%
|
|
91
|
%
|
|
77
|
%
|
|
83
|
%
|
|
75
|
%
|
|
93
|
%
|
United States
|
|
13
|
%
|
|
55
|
%
|
|
17
|
%
|
|
53
|
%
|
|
52
|
%
|
|
56
|
%
|
|
21
|
%
|
|
5
|
%
|
Total fixed income
|
|
49
|
%
|
|
67
|
%
|
|
48
|
%
|
|
69
|
%
|
|
67
|
%
|
|
68
|
%
|
|
56
|
%
|
|
62
|
%
|
1
|
AUM measured in the 1-year benchmark and peer group rankings represents
87%
and
86%
of our total AUM as of
March 31, 2019
.
|
2
|
The benchmark comparisons are based on each fund’s return as compared to a market index that has been selected to be generally consistent with the investment objectives of the fund.
|
3
|
The peer group rankings are sourced from Lipper, a Thomson Reuters Company, Morningstar or eVestment and various international third-party providers in each fund’s market and were based on an absolute ranking of returns. © 2019 Morningstar, Inc. All rights reserved. The information herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
|
(in millions)
|
|
Three Months Ended
March 31, |
|
Percent
Change
|
|
Six Months Ended
March 31, |
|
Percent
Change |
||||||||||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|||||||||||||
Investment management fees
|
|
$
|
992.4
|
|
|
$
|
1,117.1
|
|
|
(11
|
%)
|
|
$
|
1,964.2
|
|
|
$
|
2,230.7
|
|
|
(12
|
%)
|
Sales and distribution fees
|
|
358.5
|
|
|
409.8
|
|
|
(13
|
%)
|
|
713.3
|
|
|
827.6
|
|
|
(14
|
%)
|
||||
Shareholder servicing fees
|
|
57.1
|
|
|
61.3
|
|
|
(7
|
%)
|
|
112.2
|
|
|
116.2
|
|
|
(3
|
%)
|
||||
Other
|
|
25.8
|
|
|
29.6
|
|
|
(13
|
%)
|
|
55.6
|
|
|
58.8
|
|
|
(5
|
%)
|
||||
Total Operating Revenues
|
|
$
|
1,433.8
|
|
|
$
|
1,617.8
|
|
|
(11
|
%)
|
|
$
|
2,845.3
|
|
|
$
|
3,233.3
|
|
|
(12
|
%)
|
(in millions)
|
|
Three Months Ended
March 31, |
|
Percent
Change
|
|
Six Months Ended
March 31, |
|
Percent
Change |
||||||||||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|||||||||||||
Asset-based fees
|
|
$
|
291.6
|
|
|
$
|
331.5
|
|
|
(12
|
%)
|
|
$
|
594.0
|
|
|
$
|
672.3
|
|
|
(12
|
%)
|
Sales-based fees
|
|
64.0
|
|
|
73.5
|
|
|
(13
|
%)
|
|
113.6
|
|
|
147.8
|
|
|
(23
|
%)
|
||||
Contingent sales charges
|
|
2.9
|
|
|
4.8
|
|
|
(40
|
%)
|
|
5.7
|
|
|
7.5
|
|
|
(24
|
%)
|
||||
Sales and Distribution Fees
|
|
$
|
358.5
|
|
|
$
|
409.8
|
|
|
(13
|
%)
|
|
$
|
713.3
|
|
|
$
|
827.6
|
|
|
(14
|
%)
|
|
|
Three Months Ended
March 31, |
|
Percent
Change
|
|
Six Months Ended
March 31, |
|
Percent
Change
|
||||||||||||||
(in millions)
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||
Sales, distribution and marketing
|
|
$
|
449.4
|
|
|
$
|
521.5
|
|
|
(14
|
%)
|
|
$
|
893.9
|
|
|
$
|
1,050.2
|
|
|
(15
|
%)
|
Compensation and benefits
|
|
409.6
|
|
|
355.5
|
|
|
15
|
%
|
|
764.6
|
|
|
688.0
|
|
|
11
|
%
|
||||
Information systems and technology
|
|
62.1
|
|
|
58.1
|
|
|
7
|
%
|
|
123.0
|
|
|
113.1
|
|
|
9
|
%
|
||||
Occupancy
|
|
31.4
|
|
|
34.1
|
|
|
(8
|
%)
|
|
62.6
|
|
|
63.5
|
|
|
(1
|
%)
|
||||
General, administrative and other
|
|
101.8
|
|
|
92.9
|
|
|
10
|
%
|
|
210.2
|
|
|
181.7
|
|
|
16
|
%
|
||||
Total Operating Expenses
|
|
$
|
1,054.3
|
|
|
$
|
1,062.1
|
|
|
(1
|
%)
|
|
$
|
2,054.3
|
|
|
$
|
2,096.5
|
|
|
(2
|
%)
|
|
|
Three Months Ended
March 31, |
|
Percent
Change
|
|
Six Months Ended
March 31, |
|
Percent
Change |
||||||||||||||
(in millions)
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||
Asset-based expenses
|
|
$
|
364.1
|
|
|
$
|
431.2
|
|
|
(16
|
%)
|
|
$
|
734.4
|
|
|
$
|
871.8
|
|
|
(16
|
%)
|
Sales-based expenses
|
|
67.2
|
|
|
68.9
|
|
|
(2
|
%)
|
|
119.7
|
|
|
137.9
|
|
|
(13
|
%)
|
||||
Amortization of deferred sales commissions
|
|
18.1
|
|
|
21.4
|
|
|
(15
|
%)
|
|
39.8
|
|
|
40.5
|
|
|
(2
|
%)
|
||||
Sales, Distribution and Marketing
|
|
$
|
449.4
|
|
|
$
|
521.5
|
|
|
(14
|
%)
|
|
$
|
893.9
|
|
|
$
|
1,050.2
|
|
|
(15
|
%)
|
|
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
||||||||||||
(in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net carrying value at beginning of period
|
|
$
|
103.9
|
|
|
$
|
105.9
|
|
|
$
|
106.2
|
|
|
$
|
102.1
|
|
Additions, net of disposals
|
|
14.0
|
|
|
12.9
|
|
|
23.5
|
|
|
28.9
|
|
||||
Amortization
|
|
(11.9
|
)
|
|
(11.9
|
)
|
|
(23.7
|
)
|
|
(24.1
|
)
|
||||
Net Carrying Value at End of Period
|
|
$
|
106.0
|
|
|
$
|
106.9
|
|
|
$
|
106.0
|
|
|
$
|
106.9
|
|
|
|
Three Months Ended
March 31, |
|
Percent
Change
|
|
Six Months Ended
March 31, |
|
Percent
Change |
||||||||||||||
(in millions)
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||
Investment and other income, net
|
|
$
|
118.7
|
|
|
$
|
87.4
|
|
|
36
|
%
|
|
$
|
59.6
|
|
|
$
|
168.7
|
|
|
(65
|
%)
|
Interest expense
|
|
(5.7
|
)
|
|
(10.0
|
)
|
|
(43
|
%)
|
|
(12.1
|
)
|
|
(20.8
|
)
|
|
(42
|
%)
|
||||
Other Income, Net
|
|
$
|
113.0
|
|
|
$
|
77.4
|
|
|
46
|
%
|
|
$
|
47.5
|
|
|
$
|
147.9
|
|
|
(68
|
%)
|
|
|
Accounting Classification
1
|
|
Total Direct
Portfolio
|
||||||||||||||||
(in millions)
|
|
Cash and Cash Equivalents
and Other
2
|
|
Equity Securities,
at
Fair Value
|
|
Equity Method
Investments
|
|
Direct Investments
in CIPs
|
|
|||||||||||
Cash and Cash Equivalents
|
|
$
|
5,680.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,680.6
|
|
Investments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Global/international
|
|
4.0
|
|
|
109.9
|
|
|
615.0
|
|
|
109.5
|
|
|
838.4
|
|
|||||
United States
|
|
11.0
|
|
|
8.7
|
|
|
8.2
|
|
|
23.1
|
|
|
51.0
|
|
|||||
Total equity
|
|
15.0
|
|
|
118.6
|
|
|
623.2
|
|
|
132.6
|
|
|
889.4
|
|
|||||
Multi-Asset/Balanced
|
|
4.7
|
|
|
19.4
|
|
|
52.5
|
|
|
156.5
|
|
|
233.1
|
|
|||||
Fixed Income
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tax-free
|
|
—
|
|
|
0.3
|
|
|
2.6
|
|
|
—
|
|
|
2.9
|
|
|||||
Taxable
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Global/international
|
|
58.5
|
|
|
97.2
|
|
|
166.5
|
|
|
652.1
|
|
|
974.3
|
|
|||||
United States
|
|
31.4
|
|
|
187.6
|
|
|
138.0
|
|
|
223.3
|
|
|
580.3
|
|
|||||
Total fixed income
|
|
89.9
|
|
|
285.1
|
|
|
307.1
|
|
|
875.4
|
|
|
1,557.5
|
|
|||||
Total investments
|
|
109.6
|
|
|
423.1
|
|
|
982.8
|
|
|
1,164.5
|
|
|
2,680.0
|
|
|||||
Total Cash and Cash Equivalents and Investments
|
$
|
5,790.2
|
|
|
$
|
423.1
|
|
|
$
|
982.8
|
|
|
$
|
1,164.5
|
|
|
$
|
8,360.6
|
|
1
|
See Note 1 – Significant Accounting Policies in the notes to consolidated financial statements in Item 8 of Part II of our Form 10-K for fiscal year
2018
and Note 2 - New Accounting Guidance and Note 6 - Investments in the notes to consolidated financial statements in Item 1 of Part I of this Form 10-Q for information on investment accounting classifications.
|
2
|
Other consists of
$68.1 million
of debt securities and
$11.7 million
of investments in life settlement contracts, both of which are measured at fair value, and
$29.8 million
of investments carried at adjusted cost.
|
|
|
Six Months Ended
March 31, |
||||||
(in millions)
|
|
2019
|
|
2018
|
||||
Operating cash flows
|
|
$
|
444.2
|
|
|
$
|
897.0
|
|
Investing cash flows
|
|
(734.2
|
)
|
|
(181.5
|
)
|
||
Financing cash flows
|
|
(662.8
|
)
|
|
(764.5
|
)
|
(in millions)
|
|
March 31,
2019 |
|
September 30,
2018 |
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
5,680.6
|
|
|
$
|
6,610.8
|
|
Receivables
|
|
747.5
|
|
|
733.7
|
|
||
Investments
|
|
2,046.7
|
|
|
2,130.6
|
|
||
Total Liquid Assets
|
|
$
|
8,474.8
|
|
|
$
|
9,475.1
|
|
|
|
|
|
|
||||
Liability
|
|
|
|
|
||||
Debt
|
|
$
|
697.9
|
|
|
$
|
695.9
|
|
Month
|
|
Total Number of
Shares Purchased
|
|
Average Price
Paid per
Share
|
|
Total Number of Shares
Purchased as Part of
Publicly Announced Plans
or Programs
|
|
Maximum Number of
Shares that May Yet Be
Purchased Under the Plans
or Programs
|
|||||
January 2019
|
|
2,422,208
|
|
|
$
|
30.55
|
|
|
2,422,208
|
|
|
58,568,476
|
|
February 2019
|
|
949,600
|
|
|
31.43
|
|
|
949,600
|
|
|
57,618,876
|
|
|
March 2019
|
|
1,254,685
|
|
|
32.58
|
|
|
1,254,685
|
|
|
56,364,191
|
|
|
Total
|
|
4,626,493
|
|
|
|
|
4,626,493
|
|
|
|
Exhibit No.
|
|
Description
|
|
|
|
|
|
3(i)(a)
|
|
|
|
|
|
|
|
3(i)(b)
|
|
|
|
|
|
|
|
3(i)(c)
|
|
|
|
|
|
|
|
3(i)(d)
|
|
|
|
|
|
|
|
3(i)(e)
|
|
|
|
|
|
|
|
3(ii)
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
32.1
|
|
|
|
|
|
|
|
32.2
|
|
|
|
|
|
|
|
101
|
|
|
The following materials from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, formatted in Extensible Business Reporting Language (XBRL), include: (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) related notes (filed herewith)
|
|
|
|
FRANKLIN RESOURCES, INC.
|
|
|
|
|
|
|
Date:
|
April 26, 2019
|
|
By:
|
/
S
/ K
ENNETH
A. L
EWIS
|
|
|
|
|
Kenneth A. Lewis
|
|
|
|
|
Chief Financial Officer and Executive Vice President
|
|
|
|
|
(Duly Authorized Officer and Principal Financial Officer)
|
1 Year Franklin Resources Chart |
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