executivecommentaryq2201

FRANKLIN RESOURCES, INC. Q2 2019 Executive Quarterly Earnings Commentary April 26, 2019 Highlights Exhibit 99.2 • Investment performance continues to strengthen, with relative investment performance for the 1-, 3-, and 5-year periods Greg Johnson improving across most investment objectives Chairman of the Board Chief Executive Officer • With improving performance and progress on our strategic initiatives, sales increased 24% over the prior quarter, while redemptions slowed to their lowest level since 2011 • Global fixed income attracted net flows of $3.6 billion this quarter, with March sales at the highest monthly level since October 2015 Kenneth A. Lewis • Net income improved to $368 million, despite the initial impact of Executive Vice President cost structure optimization initiatives that weighed on operating Chief Financial Officer income • During the quarter, the company declared a $0.26 per share regular dividend, repurchased 4.6 million shares, and closed the acquisition of Benefit Street Partners (on February 1st) Contents Page(s) Investment Performance 2 Assets Under Management 3-5 and Flows Conference Call Details: Flows by Investment 6-8 Johnson and Lewis will lead a live teleconference today at 11:00 a.m. Objective Eastern Time to answer questions of a material nature. Access to the teleconference will be available via investors.franklinresources.com or by Financial Results 9 dialing (877) 407-8293 in the U.S. and Canada or (201) 689-8349 internationally. A replay of the teleconference can also be accessed by Operating Revenues and 9-11 calling (877) 660-6853 in the U.S. and Canada or (201) 612-7415 Expenses internationally using access code 13689373, after 2:00 p.m. Eastern Time on April 26, 2019 through May 26, 2019. Other Income and Taxes 11 Analysts and investors are encouraged to review the Company’s recent Capital Management 12-13 filings with the U.S. Securities and Exchange Commission and to contact Appendix 14-15 Investor Relations at (650) 312-4091 before the live teleconference for any clarifications or questions related to the earnings release or written commentary.

Second Quarter Executive Commentary Greg Johnson, Chairman and CEO Unaudited Investment Performance Peer Group Comparison1,2 % of AUM in Top Two Peer Group Quartiles as of March 31, 2019 1-Year 3-Year 5-Year 10-Year Equity Global/International 54% 32% 32% 31% United States 79% 69% 69% 53% Total Equity 65% 48% 48% 41% Multi-Asset/Balanced 92% 93% 13% 94% Fixed Income Tax-free 54% 42% 42% 49% Taxable Global/International 77% 83% 75% 93% United States 52% 56% 21% 5% Total Fixed Income 67% 68% 56% 62% Equity markets rebounded in the first calendar quarter of 2019, recouping much of their losses from the final months of 2018, and posting one of the best quarters in nearly a decade. Relative investment performance continued to trend in the right direction. Amongst our top 25 funds, 80% of assets outperformed their peer group for the 1-year period compared to only 4% the prior year. Global fixed income performance remains strong, with the U.S.-registered Templeton Global Bond and Templeton Global Total Return funds in the top two quartiles for the 1-, 3-, 5-, and 10-year periods. The multi-asset balanced category improved notably due to excellent relative performance for Franklin Income, which posted top quartile returns across the 1-, 3- and 10-year periods. The fund has sustained strong performance while reducing volatility, increasing the fund’s appeal to investors. 1. AUM measured in the 1-year peer group rankings represents 86% of our total AUM as of March 31, 2019. 2. 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. 2

Second Quarter Executive Commentary Greg Johnson, Chairman and CEO Unaudited Assets Under Management and Flows Simple Monthly Average vs. End of Period Long-Term Flows (in US$ billions, for the three months ended) (In US$ billions, for the three months ended) 752 28.6 738 25.8 22.5 21.7 27.0 732 724 724 717 712 683 689 650 (7.3) (6.3) (10.0) (12.1) (13.6) (36.2) (41.7) (41.8) (39.2) (42.4) 3/18 6/18 9/18 12/18 3/19  Average AUM  Ending AUM 3/18 6/18 9/18 12/18 3/19 Assets under management ended the quarter at $712 billion, a 10% increase from December. Strong investment gains were the largest  Long-Term  Long-Term  Net Flows contributors to the rebound, along with the Sales Redemptions acquisition of Benefit Street Partners that added over $26 billion at closing. Average assets under management increased marginally to $689 billion; however, daily average assets under management increased 2%. Net Market Change, Distributions and Other Net outflows of $6 billion improved significantly, due (In US$ billions, for the three months ended) to a 24% increase in sales and a 15% decrease in redemptions. The improvement in reported quarterly net flows does not fully reflect the magnitude of the improvement in flows this quarter, 42.3 as reinvested distributions were seasonally stronger in December. Net new flows, which do not include reinvested distributions, improved almost 60% this 6.6 quarter. (6.3) (11.1) (59.9) 3/18 6/18 9/18 12/18 3/19 3

Second Quarter Executive Commentary Greg Johnson, Chairman and CEO Unaudited Long-Term Flows: United States¹ (In US$ billions, for the three months ended) Retail Institutional Sales +24% 10.3 11.5 8.9 9.1 9.3 Q/Q 2.8 2.2 2.5 2.5 2.5 (1.5) (1.2) (0.7) (5.5) (5.7) (6.2) (2.2) (2.1) (2.7) (2.9) (4.0) (5.0) (4.5) (5.4) (5.4) (14.9) Redemptions (18.4) (17.7) (17.1) -32% Q/Q (22.0) 3/18 6/18 9/18 12/18 3/19 3/18 6/18 9/18 12/18 3/19  Long-Term  Long-Term  Net Flows  Long-Term  Long-Term  Net Flows Sales Redemptions Sales Redemptions U.S. retail and institutional gross sales increased Improving institutional sales from global and U.S. over 18%, to their highest level in nearly two years, equities and alternatives were offset by declines in while international sales grew nearly twice as fast. global fixed income which was our best-selling Importantly, sales of our U.S. retail mutual funds strategy in 2018. Also, this channel experienced gained traction this quarter and we saw our market some large redemptions in global fixed income and share increase for the first time in several quarters. international equity. Led by multi-asset/balanced and global fixed income, the improvement was broad-based, with five of our six investment objectives improving. Redemption levels of our U.S. retail mutual funds fell significantly to their lowest level since 2012. The company’s targeted sales campaign to capitalize on key, strong performing funds, including pricing changes implemented in 2018, fueled sales growth across several channels, including our NYSE channel, Private Wealth, and SMA channels, each of which improved notably. Momentum in our defined contribution investment only business continued, especially with collective investment trust. In addition to generating significant opportunities for new business, this product has proven to be very valuable for client retention. 1. Graphs do not include high net-worth client flows. 4

Second Quarter Executive Commentary Greg Johnson, Chairman and CEO Unaudited Long-Term Flows: International¹ (In US$ billions, for the three months ended) Retail Institutional Sales +52% 11.6 10.8 9.2 8.4 Q/Q 7.1 4.9 3.4 2.3 2.5 1.6 2.0 (0.7) (0.9) (1.2) (1.6) (0.6) (3.4) (4.3) (3.6) (4.3) (3.7) (9.7) (9.7) (5.8) (10.8) (9.8) (6.6) (6.3) (13.4) (8.5) 3/18 6/18 9/18 12/18 3/19 3/18 6/18 9/18 12/18 3/19  Long-Term  Long-Term  Net Flows  Long-Term  Long-Term  Net Flows Sales Redemptions Sales Redemptions International retail flows turned positive. Sales Institutional sales slowed a bit, and redemptions were improved more than 50%, with our flagship cross- elevated by redemptions of nearly $2.2 billion in South border range the primary driver of growth, particularly East Asian and Australian mandates due to some in Asia where there is a steady demand for yield. clients’ mandatory redemption policies following Additionally, several large distributors are starting to portfolio manager departures. put our Global Macro products on buy lists, as a result of improved performance. Interest has been growing in emerging markets products as well, with the Templeton Emerging Markets Bond fund generating very strong inflows once again this quarter, and emerging markets equity as a whole generating higher sales and lower redemptions. 1. Graphs do not include high net-worth client flows. 5

Second Quarter Executive Commentary Greg Johnson, Chairman and CEO Unaudited Flows by Investment Objective Global/International Equity Global/International Fixed Income (in US$ billions, for the three months ended) (in US$ billions, for the three months ended) 10.3 11.1 8.3 6.6 6.0 7.2 7.4 4.3 4.3 5.1 3.6 0.1 (1.4) (1.9) (4.5) (2.0) (2.7) (7.3) (7.3) (7.0) (9.7) (10.0) (8.6) (11.6) (11.5) (11.0) (11.0) (13.3) (12.0) (12.1) 3/18 6/18 9/18 12/18 3/19 3/18 6/18 9/18 12/18 3/19  Long-Term  Long-Term  Net Flows  Long-Term  Long-Term  Net Flows Sales Redemptions Sales Redemptions % of Beg. Prior 4 Quarters Current % of Beg. Prior 4 Quarters Current AUM1 Avg Quarter AUM1 Avg Quarter Sales 10% 12% Sales 21% 30% Redemptions 23% 29% Redemptions 28% 23% Global equity sales within U.S. retail improved 6% Global fixed income was a clear bright spot this from the prior quarter, their highest level since the quarter with sales rebounding to over $11 billion. year ago period, and much better than industry flows Redemptions also improved significantly, leading that headed in the opposite direction. Redemptions to net inflows of almost $4 billion as bond markets were weighed down by the various institutional reclaimed a good portion of outflows from the prior redemptions noted on the prior page. quarter. Our flagship U.S. retail and cross-border funds all returned to inflows this quarter, with Templeton Global Total Return a standout. Gross sales into the U.S. retail version were the highest in over two years, with net inflows the best in five years, as its 5-star rating and top decile performance garnered attention. The cross-border fund fared even better with net inflows of over $1 billion. 1. Sales and redemptions as a percentage of beginning assets under management are annualized. 6

Second Quarter Executive Commentary Greg Johnson, Chairman and CEO Unaudited U.S. Equity Multi-Asset/Balanced (in US$ billions, for the three months ended) (In US$ billions, for the three months ended) 4.4 4.5 4.1 4.0 4.1 4.0 4.0 3.8 2.8 3.1 2.8 (0.2) (0.2) (0.4) (0.1) (0.9) (1.1) (1.8) (2.5) (2.3) (4.4) (5.5) (5.9) (5.8) (5.7) (5.4) (6.7) (6.3) (6.3) (6.8) 3/18 6/18 9/18 12/18 3/19 3/18 6/18 9/18 12/18 3/19  Long-Term  Long-Term  Net Flows  Long-Term  Long-Term  Net Flows Sales Redemptions Sales Redemptions % of Beg. Prior 4 Quarters Current % of Beg. Prior 4 Quarters Current 1 AUM Avg Quarter AUM1 Avg Quarter Sales 15% 17% Sales 10% 10% Redemptions 22% 24% Redemptions 17% 14% U.S. equities held steady with a slight increase in Multi-asset/balanced strategies experienced an gross sales this quarter, compared to the industry increase in sales and a notable decline in that saw 10% declines amongst U.S. retail funds. redemptions this quarter. Franklin Income was a Franklin Dynatech remained the standout as it large contributor to the improvement as it attracted continues to attract inflows and gain market share positive net flows for the first time in several years despite industry trends that favor index investing as we wrapped up our 70th anniversary roadshow and ETFs. that put a spotlight on one of our most popular flagship income solutions. 1. Sales and redemptions as a percentage of beginning assets under management are annualized. 7

Second Quarter Executive Commentary Greg Johnson, Chairman and CEO Unaudited Tax-Free Fixed Income Taxable U.S. Fixed Income (In US$ billions, for the three months ended) (In US$ billions, for the three months ended) 1.9 1.9 1.7 1.6 1.8 1.5 1.6 1.8 1.2 1.2 0.2 (1.1) (1.3) (1.1) (0.9) (1.2) (1.2) (1.9) (1.7) (2.0) (2.2) (2.9) (2.7) (3.0) (3.2) (3.1) (3.4) (3.6) (3.9) (3.7) 3/18 6/18 9/18 12/18 3/19 3/18 6/18 9/18 12/18 3/19  Long-Term  Long-Term  Net Flows  Long-Term  Long-Term  Net Flows Sales Redemptions Sales Redemptions % of Beg. % of Beg. Prior 4 Quarters Current Prior 4 Quarters Current 1 AUM1 AUM Avg Quarter Avg Quarter Sales 9% 12% Sales 15% 17% Redemptions 19% 14% Redemptions 29% 30% Tax-free fixed income flows turned modestly Taxable U.S. fixed income net flows improved due positive, a strong rebound from last quarter’s to a combination of improved sales and outflows. Sales outpaced the industry through redemptions across a variety of strategies, February with a 7% increase over the prior quarter including Franklin U.S. Government Securities and compared to the industry increase of only 4%. some total return-oriented strategies that, in Municipal bonds performed relatively well during the aggregate, generated almost $500 million of quarter, as supply and demand patterns remained inflows. favorable overall. After record outflows in the prior quarter, reflecting investors’ concerns about the Fed rate policy, muni-bond funds were off to a strong start in calendar year 2019. 1. Sales and redemptions as a percentage of beginning assets under management are annualized. 8

Second Quarter Executive Commentary Ken Lewis, CFO Unaudited Financial Results (in US$ millions except per share data, for the three months ended) Quarterly Operating and Net Income1 Quarterly Diluted Earnings Per Share 556 $0.96 503 479 $0.78 412 $0.75 $0.72 503 380 443 402 $0.54 368 276 3/18 6/18 9/18 12/18 3/19 3/18 6/18 9/18 12/18 3/19  Operating Income  Net Income1 Second quarter operating income was $380 million, an 8% decrease from the prior quarter, as expense growth outpaced revenue growth for reasons discussed in more detail below. Net income, on the other hand, increased to $368 million, as the broad market rebound reversed unrealized, mark-to- market non-operating losses in the prior quarter. Earnings per share increased 33% to $0.72. Operating Revenues and Expenses (In US$ millions, for the three months ended) Mar-19 vs. Mar-19 vs. Mar-19 Dec-18 Sep-18 Jun-18 Mar-18 Dec-18 Mar-18 Investment management fees $ 992.4 $ 971.8 2% $ 1,058.9 $ 1,077.9 $ 1,117.1 (11%) Sales and distribution fees 358.5 354.8 1% 380.8 391.4 409.8 (13%) Shareholder servicing fees 57.1 55.1 4% 51.8 53.9 61.3 (7%) Other 25.8 29.8 (13%) 35.7 35.4 29.6 (13%) Total Operating Revenues $ 1,433.8 $ 1,411.5 2% $ 1,527.2 $ 1,558.6 $ 1,617.8 (11%) Investment management fees increased 2%, mostly attributable to increased performance fees totaling $16.2 million and 2% higher daily average assets under management, as discussed above. Those benefits were partially offset by two fewer days in the March quarter. 1. Net income attributable to Franklin Resources, Inc. 9

Second Quarter Executive Commentary Ken Lewis, CFO Unaudited Results include two months of consolidating Benefit Street Partners, which contributed about $29 million to revenue. Its contribution to operating income was essentially neutral, with anticipatedfutureaccretiontobedrivenbythepaceof capital deployments and revenue growth over time. Sales and distribution fees increased 1% this quarter, due primarily to higher commissionable sales as noted previously. Higher transaction-based fees primarily caused shareholder servicing fees to increase to $57mm this quarter. Other revenues declined 13% to $26 million, with the decrease attributable to lower consolidated investment product revenue, which is partially offset by noncontrolling interests. Mar-19 vs. Mar-19 vs. Mar-19 Dec-18 Sep-18 Jun-18 Mar-18 Dec-18 Mar-18 Sales, distribution and marketing $ 449.4 $ 444.5 1% $ 489.7 $ 499.8 $ 521.5 (14%) Compensation and benefits 409.6 355.0 15% 345.1 357.5 355.5 15% Information systems and technology 62.1 60.9 2% 68.3 62.5 58.1 7% Occupancy 31.4 31.2 1% 34.6 30.5 34.1 (8%) General, administrative and other 101.8 108.4 (6%) 110.8 105.2 92.9 10% Total Operating Expenses $ 1,054.3 $ 1,000.0 5% $ 1,048.5 $ 1,055.5 $ 1,062.1 (1%) Sales, distribution and marketing expense increased in line with associated revenue, but there was some divergence between the asset-based components, as illustrated in the appendix on page 14. Asset-based expenses decreased at a lesser rate than asset-based revenue due to a prior-quarter accounting adjustment and certain U.S. expenses that are not impacted by the length of the quarter. Compensation and benefits expense increased to almost $410 million this quarter, due to a combination of normal seasonal factors, such as payroll taxes and a full-quarter effect of annual salary increases, severance charges, as well as the acquisition of Benefit Street Partners, including deferred payments related to the transaction that are recorded as compensation under U.S. GAAP. During this period of heightened uncertainty for the industry, we believe it is important to position our resources where they will have the greatest impact. The company is executing on a series of cost structure optimization initiatives intended to increase operational efficiencies and streamline our organization, including a decision to outsource a portion of fund administration. Executing on these initiatives resulted in termination benefits expenses totaling approximately $20 million this quarter, with more expected next quarter. These changes will help us reallocate resources to continue investing in our most important strategic growth initiatives, including alternatives and solutions, as well as technology investments designed to drive informational and analytical advantages for our investment processes. Our current expectation is for fiscal year compensation expense to increase 15% to 16% over last year, inclusive of all execution costs noted above. Next quarter, we expect compensation expense to increase in the range of 7.5% to 8%, when compared to reported second quarter compensation expense. Information, systems and technology expense was $62 million this quarter, but we are budgeting for the fiscal year to be consistent with 2018 expense levels for this line item. General, administrative and other expenses declined to $102 million, reflecting a decline in controllable costs and some charges in the prior quarter that did not recur. Those benefits were partially offset by an increase in expenses related to consolidated investment products. As we look at the second half of the fiscal year, we expect this expense line to trend a bit higher, with the full year expense to be up in the 5% to 6% range compared to 2018. There is no change to guidance provided last quarter with respect to the anticipated expense impact from the Benefit Street Partners acquisition or other growth initiatives. Our goal remains to achieve 2020 non-sales & distribution expenses that are in line with fiscal 2018 levels, before factoring in the acquisition of Benefit Street Partners. 10

Second Quarter Executive Commentary Ken Lewis, CFO Unaudited Operating Margin (%) vs. Average AUM (in US$ billions, for the fiscal year ended) 37.3% 37.9% 38.1% 33.5% 36.6% 35.4% 35.7% 35.4% 33.5% 28.7% 27.8% Average AUM: 888 870 1 808 4.6% CAGR 749 737 741 694 706 691 571 442 Operating Income: 09/09 09/10 09/11 09/12 09/13 09/14 09/15 09/16 09/17 09/18 FYTD 2.8% CAGR1 Fiscal Year 3/19 Operating Income 1,203 1,959 2,660 2,515 2,921 3,221 3,028 2,366 2,264 2,119 791 (in US$ millions) ━ Operating Margin  Average AUM Fiscal year-to-date the operating margin decreased to 27.8%, which is lower, in part, due to the Benefit Street Partners’ acquisition. Other Income and Taxes Other Income (In US$ millions, for the three months ended March 31, 2019) (13.7) 31.8 5.0 2.6 (0.6) (5.7) 47.2 113.0 99.3 32.7 Interest and Equity method Gains/losses Rental income Interest Foreign Consolidated Total other Noncontrolling2 Other income, dividend investments on investments, expense exchange and Investment income interests net of income net other Products (CIPs) noncontrolling interests As noted, the strong rebound in equity markets led to other income, net of noncontrolling interest of $99 million, a quarter-over-quarter increase of $145 million. Dividend and interest income of $33 million and income from equity method investments of $47 million were the biggest contributors to other income this quarter. For the year-to-date period, the tax rate was 23.5%, but based upon our outlook for the mix of earnings and impact of below-the-line noncontrolling interests, we are forecasting a full-year tax rate of approximately 23%, plus-or-minus 30 basis points. 1. Fiscal year-to-date operating income is annualized for CAGR calculation. CAGR is the compound average annual growth rate over the trailing 10-year period. 2. Reflects the portion of noncontrolling interests, attributable to third-party investors, related to CIPs included in Other income. 11

Second Quarter Executive Commentary Ken Lewis, CFO Unaudited Capital Management Change in Ending Shares Outstanding 20% U.S. Asset 15% Managers (ex- BEN)1: 2.3% 10% Compound 5% Annual Dilution 0% -5% BEN: -4.2% -10% Compound -15% Annual Accretion -20% 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19  BEN  U.S. Asset Managers Average (ex-BEN)1 Share Repurchases (US$ millions) vs. Average BEN Price $60 $50 Special Cash $40 500 446 Dividends per 404 433 348 Share Declared: $30 337 327 256 262 327 218 Feb-18: $3.00 $20 179 178 190 175 200 129 151 167 168 145 Dec-14: $0.50 $10 $0 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 Share Repurchase Amount  BEN Average Price for the Period Special Cash Dividend Declared During the quarter, we repurchased almost 5 million shares, further reducingsharesoutstandingonanetbasis, resulting in a 5-year compound annual accretion rate of over 4%. 1. U.S. asset managers include AB, AMG, APAM, APO, ARES, BLK, BSIG, BX, CG, CNS, EV, FII, GBL, HLNE, IVZ, KKR, LM, MN, OAK, OZM, PZN, TROW, VCTR, VRTS, WDR and WETF. Source: Thomson Reuters and company reports. 12

Second Quarter Executive Commentary Ken Lewis, CFO Unaudited Trailing 12 Months Share Repurchases and Dividends1 (US$ millions and percentage of net income) 3,552 3,685 3,364 3,085 96% NM NM NM 1,774 NM NM NM 131% 82% 33% 3/18 6/18 9/18 12/18 3/19  Dividends  Share Repurchases The company also declared a $0.26 per share regular dividend in the quarter, bringing the total return of capital to over $1.7 billion for the trailing twelve months, representing a 115% Payout Ratio. Including the upfront consideration for the acquisition of Benefit Street Partners paid in the quarter, the total capital deployed via acquisitions or returned to shareholders, for the trailing twelve months, was 159% of net income. Cash and investments, net of debt and our tax liability, was $6.7 billion as of March 31, 2019, down from $9.2 billion a year-ago, reflecting the acquisitions, share repurchases, and dividend payments over the past year. 1. The chart above illustrates the amount of share repurchases and dividends over the trailing 12 months, for the period ended. Dividend payout is calculated as dividend amount declared divided by net income attributable to Franklin Resources, Inc. for the trailing 12-month period. Repurchase payout is calculated as stock repurchase amount divided by net income attributable to Franklin Resources, Inc. for the trailing 12-month period. Note: The payout ratios for the 3/18, 6/18 and 9/18 periods are not meaningful due to the 12/17 reported loss that was 13 attributable to tax reform.

Second Quarter Executive Commentary Ken Lewis, CFO Unaudited Appendix Mix of Ending Assets Under Management (as of March 31, 2019) Investment Objective (US$ billions) Mar-19 40% Equity $ 283.9 1% Multi Asset/Balanced 134.7 Fixed Income 284.8 2% 4% Cash Management 8.9 68% Total $ 712.3 13% Sales Region 40% 13% (US$ billions) Mar-19 19% United States $ 486.6 Europe, Middle East 91.2 and Africa Asia-Pacific 91.7 Canada 28.0 Latin America 14.8 Total $ 712.3 Sales and Distribution Summary (in US$ millions, for the three months ended) Mar-19 Dec-18 Change % Change Asset-based fees $ 291.6 $ 302.4 (10.8) (4%) Asset-based expenses (364.1) (370.3) 6.2 (2%) Asset-based fees, net $ (72.5) $ (67.9) $ (4.6)7% Sales-based fees 64.0 49.6 14.4 29% Contingent sales charges 2.9 2.8 0.1 4% Sales-based expenses (67.2) (52.5) (14.7) 28% Sales-based fees, net $ (0.3) $ (0.1) $ (0.2) 200% Amortization of deferred sales commissions (18.1) (21.7) 3.6 (17%) Sales and Distribution Fees, Net $ (90.9) $ (89.7) $ (1.2) 1% 14

Second Quarter Executive Commentary Ken Lewis, CFO Unaudited Appendix (continued) CIPs Related Adjustments (in US$ millions, for the three and six months ended) FYTD Mar-19 Mar-19 Operating Revenues $ 14.8 $ 30.3 Operating Expenses 8.7 8.7 Operating Income $ 6.1 $ 21.6 Investment Income (28.3) (3.4) Interest Expense (0.5) (1.1) This table summarizes the impact of CIPs on the CIPs 31.8 (17.2) Company’s reported U.S. Other Income $ 3.0 $ (21.7) GAAP financial results. Net Income $ 9.1 $ (0.1) Less: net income attributable to 13.5 1.1 noncontrolling interests Net Income Attributable to Franklin $ (4.4) $ (1.2) Resources, Inc. 15

Forward-Looking Statements Statements in this commentary regarding Franklin Resources, Inc. (“Franklin”) and its subsidiaries, which are not historical facts, are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this commentary, words or phrases generally written in the future tense and/or preceded by words such as “will,” “may,” “could,” “expect,” “believe,” “anticipate,” “intend,” “plan,” “seek,” “estimate” or other similar words are forward-looking statements. Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, that could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. While forward-looking statements are our best prediction at the time that they are made, you should not rely on them and are cautioned against doing so. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. They are neither statements of historical fact nor guarantees or assurances of future performance. These and other risks, uncertainties and other important factors are described in more detail in Franklin’s recent filings with the U.S. Securities and Exchange Commission, including, without limitation, in Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations in Franklin’s Annual Report on Form 10-K for the fiscal year ended September 30, 2018 and Franklin’s subsequent Quarterly Reports on Form 10-Q: • Volatility and disruption of the capital and credit markets, and adverse changes in the global economy, may significantly affect our results of operations and may put pressure on our financial results. • The amount and mix of our assets under management (“AUM”) are subject to significant fluctuations. • We are subject to extensive, complex, overlapping and frequently changing rules, regulations, policies, and legal interpretations. • Global regulatory and legislative actions and reforms have made the regulatory environment in which we operate more costly and future actions and reforms could adversely impact our financial condition and results of operations. • Failure to comply with the laws, rules or regulations in any of the jurisdictions in which we operate could result in substantial harm to our reputation and results of operations. • Changes in tax laws or exposure to additional income tax liabilities could have a material impact on our financial condition, results of operations and liquidity. • Any significant limitation, failure or security breach of our information and cyber security infrastructure, software applications, technology or other systems that are critical to our operations could disrupt our business and harm our operations and reputation. • Our contractual obligations may subject us to indemnification costs and liability to third parties. • Our business operations are complex and a failure to properly perform operational tasks or the misrepresentation of our services and products, or the termination of investment management agreements representing a significant portion of our AUM, could have an adverse effect on our revenues and income. • We face risks, and corresponding potential costs and expenses, associated with conducting operations and growing our business in numerous countries. • We depend on key personnel and our financial performance could be negatively affected by the loss of their services. • Strong competition from numerous and sometimes larger companies with competing offerings and products could limit or reduce sales of our products, potentially resulting in a decline in our market share, revenues and income. • Changes in the third-party distribution and sales channels on which we depend could reduce our income and hinder our growth. • Our increasing focus on international markets as a source of investments and sales of our products subjects us to increased exchange rate and market-specific political, economic or other risks that may adversely impact our revenues and income generated overseas. • Harm to our reputation or poor investment performance of our products could reduce the level of our AUM or affect our sales, and negatively impact our revenues and income. • Our future results are dependent upon maintaining an appropriate level of expenses, which is subject to fluctuation. • Our ability to successfully manage and grow our business can be impeded by systems and other technological limitations. • Our inability to successfully recover should we experience a disaster or other business continuity problem could cause material financial loss, loss of human capital, regulatory actions, reputational harm, or legal liability. 16

Forward-Looking Statements (continued) • Regulatory and governmental examinations and/or investigations, litigation and the legal risks associated with our business, could adversely impact our AUM, increase costs and negatively impact our profitability and/or our future financial results. • Our ability to meet cash needs depends upon certain factors, including the market value of our assets, operating cash flows and our perceived creditworthiness. • We are dependent on the earnings of our subsidiaries. Any forward-looking statement made by us in this commentary speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. The information in this commentary is provided solely in connection with this commentary, and is not directed toward existing or potential investment advisory clients or fund shareholders. Investor Relations Contacts 1 (650) 312‐4091 Brian Sevilla 1 (916) 463‐2410 Lucy Nicholls 1 (916) 463‐4357 17