Franklin Templeton Investments

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Franklin Templeton Investment
TypePublic company
Traded asNYSEBEN
S&P 500 Component
IndustryFinancial Services
FoundedNew York, New York (1947)
HeadquartersSan Mateo, CA
Key peopleCharles B. Johnson, Chairman, Greg Johnson (CEO)
Rupert Johnson, Jr., Vice Chairman
ProductsMutual funds,
Retirement Planning
RevenueIncrease$7.14 Billion USD (2011)
Net incomeIncrease$1.92 Billion USD (2011)
Employees8,453 (2011)
Websitefranklintempleton.com
 
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Franklin Templeton Investment
TypePublic company
Traded asNYSEBEN
S&P 500 Component
IndustryFinancial Services
FoundedNew York, New York (1947)
HeadquartersSan Mateo, CA
Key peopleCharles B. Johnson, Chairman, Greg Johnson (CEO)
Rupert Johnson, Jr., Vice Chairman
ProductsMutual funds,
Retirement Planning
RevenueIncrease$7.14 Billion USD (2011)
Net incomeIncrease$1.92 Billion USD (2011)
Employees8,453 (2011)
Websitefranklintempleton.com
Franklin Templeton Headquarters in San Mateo

Franklin Resources Inc. is a holding company which, together with its subsidiaries, is referred to as Franklin Templeton Investments; it is an investment firm originally founded in New York in 1947 as Franklin Distributors, Inc. It is listed on the NYSE under the ticker BEN, in honor of Benjamin Franklin, who was admired by founder Rupert Johnson, Sr. In 1973 the company's headquarters moved from New York to San Mateo, California.

Contents

History

In October 1992, Franklin acquired Templeton, Galbraith & Hansberger Ltd. for a reported cost of $913 million, leading to the common name Franklin Templeton. Mutual fund pioneer Sir John Templeton was the owner of Templeton, Galbraith & Hansberger Ltd together with his son Dr. John Templeton and John Galbraith who together owned 70% of the firm.[1]

In November 1996, Heine Securities Corporation, known for the Mutual Series of funds, merged into the Franklin Templeton complex. In October 2000, Franklin acquired Bissett Funds to increase its Canadian presence, and Bissett remains a key brand from Franklin in the Canadian market. The Fiduciary Trust Company was acquired by Franklin Templeton in April 2001.

Fiduciary Trust Company, a member of the Franklin family, maintained an office of over 650 employees in Two World Trade Center during the September 11 attacks.[2] 87 employees died in the collapse.[3][4] Ann Tat­lock, the CEO of Fidu­ciary Trust Co. Inter­na­tional was at Offutt Air Force Base in Omaha for a charity event hosted by Warren Buffett.[5][6][7]

The firm specializes in conservatively managed mutual funds. It offers products under the Franklin, Templeton, Mutual Series and Fiduciary brand names. Like other large investment companies, the firm offers a wide variety of funds but is traditionally best known for bond funds under the Franklin brand, international funds under the Templeton brand, and value funds under the Mutual Series brand.

As of July 31, 2008, Franklin Resources, Inc. managed over $570 billion in total assets worldwide.[8] In April 2007, Franklin Resources was 445th in the Fortune 500, and 7th overall among securities companies.[9]

In April 2007, USA Today listed BEN stock as the top stock pick for the last 25 years based on returns, claiming it is up 64,224% since 1982.[10] In February 2009, Barron's Magazine called Franklin Templeton "King of the Decade" among fund families over the ten year period ending in 2008.[11]

The company sponsored a tennis tournament, the Franklin Templeton Classic.[where?]

Mutual funds

Franklin Templeton has over 200 different open-ended mutual funds and 7 closed-end funds in the fund family. Included in these are 36 state and federal tax free income funds, an area of investment pioneered by Franklin.

Prominent funds in the fund family include the world's largest equity fund Templeton Growth Fund, Inc. (opened 1954, $29.5bn assets), the Mutual Shares fund (opened 1949, $7.9bn assets), and the Mutual Discovery Fund (opened 1992$, 7.6bn assets) and the Templeton Growth (Euro) Fund A (acc) ($6.1bn assets).

The Franklin Income Fund (FKINX, assets $33.6bn) is a mutual fund in Morningstar's "conservative allocation" category and "large/value" style box. The fund was created in 1948 and has paid uninterrupted dividends for 60 years. The Franklin Income Fund is constructed primarily of dividend-paying stocks and bonds (2%).

Regulatory issues

In 2004, Franklin Templeton paid fines to the State of California, the Commonwealth of Massachusetts, and the U.S. Securities and Exchange Commission to settle issues regarding questionable practices including market timing. The plan for distribution of settlement monies of $50 million[12] was completed in September 2006, and all distributions have been completed as of December 2008.[13]

A settlement was also completed with the Ontario Securities Commission concerning Bissett Funds in September 2005.[13]

See also

References

  1. ^ "Franklin to acquire Templeton mutual fund" Business Times (August 3, 1992)[dead link]
  2. ^ Franklin Templeton Update on employees and operations. September 13, 2001[dead link]
  3. ^ Franklin Templeton Quarterly earnings press release. October 25, 2001.[dead link]
  4. ^ "A Look at Former World Trade Center Tenants". WSJ. Dow Jones & Company. Jan. 18, 2002. http://interactive.wsj.com/public/resources/documents/Tenant-List.htm. Retrieved August 20, 2012. 
  5. ^ Leuty, Ron (February 03, 2002). "Franklin unit rebuilds after 9/11 tragedy". San Francisco Business Times. http://www.bizjournals.com/sanfrancisco/stories/2002/02/04/story3.html?page=2. Retrieved August 20, 2012. 
  6. ^ "Where was Warren Buffett the morning of 9/11?". Killtown. August 14, 2012. http://killtown.911review.org/buffett.html. Retrieved August 20, 2012. 
  7. ^ James M. Clash & Rob Wherry (Oct 15, 2001). "Shattered, Not Broken". Forbes Magazine. http://www.forbes.com/forbes/2001/1015/070_print.html. Retrieved August 20, 2012. 
  8. ^ Franklin Templeton Press release. August 11, 2008.
  9. ^ CNN Money Fortune 500 snapshot, April 2007.
  10. ^ USA Today If Only I Had Bought, April 16, 2007.
  11. ^ Barron's. The Best Families in a Bruising Year by Tom Sullivan. February 2, 2009.
  12. ^ "Settlement Summary". Franklin Fair Fund Settlement. http://www.franklinfairfundsettlement.com/summary.asp. Retrieved August 20, 2012. 
  13. ^ a b Franklin Templeton Industry Issues. Retrieved April 18, 2007.

External links