Franklin Templeton Investments
Encyclopedia
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
.
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.
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. 87 employees died in the collapse.
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. In April 2007, Franklin Resources was 445th in the Fortune 500
, and 7th overall among securities companies.
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. In February 2009, Barron's Magazine
called Franklin Templeton "King of the Decade" among fund families over the ten year period ending in 2008.
The company sponsors a tennis
tournament, the Franklin Templeton Classic.
and 7 closed-end fund
s 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 dividend
s for 60 years. The Franklin Income Fund is constructed primarily of dividend-paying stocks and bonds (2%).
, 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 was completed in September 2006, and all distributions have been completed as of December 2008.
A settlement was also completed with the Ontario Securities Commission
concerning Bissett Funds in September 2005.
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
firm originally founded in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
in 1947 as Franklin Distributors, Inc. It is listed on the NYSE under the ticker BEN, in honor of Benjamin Franklin
Benjamin Franklin
Dr. Benjamin Franklin was one of the Founding Fathers of the United States. A noted polymath, Franklin was a leading author, printer, political theorist, politician, postmaster, scientist, musician, inventor, satirist, civic activist, statesman, and diplomat...
, who was admired by founder Rupert Johnson, Sr. In 1973 the company's headquarters moved from New York to San Mateo, California
San Mateo, California
San Mateo is a city in San Mateo County, California, United States, in the San Francisco Bay Area. With a population of approximately 100,000 , it is one of the larger suburbs on the San Francisco Peninsula, located between Burlingame to the north, Foster City to the east, Belmont to the south,...
.
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 fundMutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...
pioneer Sir John Templeton
John Templeton
Sir John Marks Templeton was an American-born British stock investor, businessman and philanthropist.-Biography:...
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.
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
Two World Trade Center
Two World Trade Center is an 88-story skyscraper under construction as part of the new World Trade Center complex in Lower Manhattan of New York City. The tower will be located in the northeast corner of the World Trade Center site, where the former 5 World Trade Center stood, with the original 2...
during the September 11 attacks. 87 employees died in the collapse.
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. In April 2007, Franklin Resources was 445th in the Fortune 500
Fortune 500
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue after adjustments made by Fortune to exclude the impact of excise taxes companies collect. The list includes publicly and...
, and 7th overall among securities companies.
In April 2007, USA Today
USA Today
USA Today is a national American daily newspaper published by the Gannett Company. It was founded by Al Neuharth. The newspaper vies with The Wall Street Journal for the position of having the widest circulation of any newspaper in the United States, something it previously held since 2003...
listed BEN stock as the top stock pick for the last 25 years based on returns, claiming it is up 64,224% since 1982. In February 2009, Barron's Magazine
Barron's Magazine
Barron's is an American weekly newspaper covering U.S. financial information, market developments, and relevant statistics. Each issue provides a wrap-up of the previous week's market activity, news reports, and an informative outlook on the week to come....
called Franklin Templeton "King of the Decade" among fund families over the ten year period ending in 2008.
The company sponsors a tennis
Tennis
Tennis is a sport usually played between two players or between two teams of two players each . Each player uses a racket that is strung to strike a hollow rubber ball covered with felt over a net into the opponent's court. Tennis is an Olympic sport and is played at all levels of society at all...
tournament, the Franklin Templeton Classic.
Mutual funds
Franklin Templeton has over 100 different open-ended mutual fundsOpen-end fund
An open-end fund is a collective investment scheme which can issue and redeem shares at any time. An investor will generally purchase shares in the fund directly from the fund itself rather than from the existing shareholders...
and 7 closed-end fund
Closed-end fund
A closed-end fund is a collective investment scheme with a limited number of shares. It is called a closed-end fund because new shares are rarely issued once the fund has launched, and because shares are not normally redeemable for cash or securities until the fund liquidates.Typically an...
s 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
Mutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...
in Morningstar's "conservative allocation" category and "large/value" style box. The fund was created in 1948 and has paid uninterrupted dividend
Dividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
s 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 CaliforniaCalifornia
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
, the Commonwealth of Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
, and the U.S. Securities and Exchange Commission to settle
Settlement (law)
In law, a settlement is a resolution between disputing parties about a legal case, reached either before or after court action begins. The term "settlement" also has other meanings in the context of law.-Basis:...
issues regarding questionable practices including market timing. The plan for distribution of settlement monies was completed in September 2006, and all distributions have been completed as of December 2008.
A settlement was also completed with the Ontario Securities Commission
Ontario Securities Commission
The Ontario Securities Commission is a regulatory agency which administers and enforces securities legislation in the Canadian province of Ontario...
concerning Bissett Funds in September 2005.
See also
- Charles B. Johnson
- Rupert Johnson, Jr.Rupert Johnson, Jr.Rupert Harris Johnson, Jr. is the Vice-Chairman of the Board of Franklin Resources.-Biography:Rupert Johnson graduated from Washington and Lee University, then served as a Marine. In 1965, he joined Franklin Resources. He now serves as its Vice-Chairman. His brother Charles, is the Chairman of...
- Sir John TempletonJohn TempletonSir John Marks Templeton was an American-born British stock investor, businessman and philanthropist.-Biography:...
- Mark MobiusMark MobiusDr. Joseph Mark Mobius is a global investor and emerging markets fund manager, and is considered to be one of the leaders in the industry as he has been involved in these markets for over 40 years.-Biography:...
- Michael F. Price
- Max HeineMax HeineMax L. Heine was a value investor and fund manager in New York.-Biography:A Jewish law student in Berlin, Max fled Nazi Germany in the late 1930s for New York, where he found work in a department store...
- Chateau CarolandsCarolandsThe Carolands Chateau is a 65,000 square foot mansion in Hillsborough, California. Its 75 foot -high atrium holds the record as the largest enclosed space in an American private residence...
- List of mutual fund companies in Canada
External links
- Yahoo Franklin Resources, Inc. Profile
- Fiduciary Trust memorial page for employees who died in 9-11