Internal Use Only / Not for Distribution to the Public

Franklin Resources, Inc. Fourth Quarter Results

October 27, 2009

EXHIBIT 99.2

2

Forward-Looking Statements

The financial results in this presentation are preliminary. Statements in this presentation regarding Franklin Resources, Inc. (“Franklin”) and its

subsidiaries, which are not historical facts, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of

1995. These 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 the actual results and outcomes to differ materially from any future results or outcomes expressed or implied by

such forward-looking statements. 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, 2008,

and Franklin’s subsequent Quarterly Reports on Form 10-Q.

The ongoing volatility and disruption of the capital and credit markets, and adverse changes in the global economy, have significantly affected our results of operations and may

continue to put pressure on our financial results.

The amount and mix of our assets under management are subject to significant fluctuations.

We are subject to extensive and complex, overlapping and frequently changing rules, regulations and legal interpretations. 

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 assets under management, increase costs and negatively impact our profitability and future financial results.

Our ability to maintain the beneficial tax treatment we anticipate with respect to non-U.S. earnings we have repatriated is based on current interpretations of the American Jobs

Creation Act of 2004 (the “Jobs Act”) and permitted use of such amounts in accordance with our domestic reinvestment plan and the Jobs Act. 

Any significant limitation or failure of our software applications or other technology systems that are critical to our operations could constrain our operations. 

Our investment management business operations are complex and a failure to properly perform operational tasks or the misrepresentation of our products and services 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 net income. 

Changes in the third-party distribution and sales channels on which we depend could reduce our revenues and hinder our growth. 

Our increasing focus on international markets as a source of investments and sales of investment products subjects us to increased exchange rate and other risks in connection

with earnings and income generated overseas. 

Poor investment performance of our products could affect our sales or reduce the level of assets under management, potentially negatively impacting our revenues and income. 

We could suffer losses in earnings or revenue if our reputation is harmed. 

Our future results are dependent upon maintaining an appropriate level of expenses, which is subject to fluctuation. 

Our ability to successfully integrate widely varied business lines 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. 

Certain of the portfolios we manage, including our emerging market portfolios, are vulnerable to significant market-specific political, economic or other risks, any of which may

negatively impact our revenues and income. 

Our revenues, earnings and income could be adversely affected if the terms of our management agreements are significantly altered or these agreements are terminated by the

funds and other sponsored investment products we advise.

Regulatory and governmental examinations and/or investigations, civil litigation relating to previously-settled regulatory and governmental investigations, and the legal risks

associated with our business, could adversely impact our assets under management, increase costs and negatively impact our profitability and/or our future financial results.

Our ability to meet cash needs depends upon certain factors, including our asset value, credit worthiness and the market value of our stock. 

Our ability to access the capital markets in a timely manner should we seek to do so depends on a number of factors.

Diverse and strong competition limits the interest rates that we can charge on consumer loans.

Our business could be negatively affected if we or our banking subsidiaries fail to remain well capitalized.

Liquidity needs could affect our banking business.

We are dependent on the earnings of our subsidiaries.

3

Audio Commentary and Conference Call Details

Pre-recorded audio commentary on the fourth quarter results from Franklin Resources, Inc.’s President and

Chief Executive Officer, Greg Johnson, and Executive Vice President and Chief Financial Officer, Ken Lewis,

will be

available

today

at

approximately

9:15

a.m.

Eastern

Time.

They

will

also

lead

a

live

teleconference

today

at 4:30 p.m. Eastern Time to answer questions.

Access to the pre-recorded audio commentary and this presentation will be available at franklinresources.com

under the

“Investor

relations

–

Earnings

releases”

section.

The

pre-recorded

audio

commentary

will

also

be

available by dialing (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally, using access

code 32011866, anytime through 11:59 p.m. Eastern Time on November 12, 2009.

Access to

the

live

teleconference

will

be

available

at

franklinresources.com

10

minutes

before

the

start

of

the

call or by dialing (877) 480-6346 in the U.S. and Canada or (706) 902-1906 internationally. A replay of the call

can also be accessed by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally,

using access code 31467170, after 5:30 p.m. Eastern Time today through 11:59 p.m. Eastern Time on

November 12, 2009.

Questions regarding the pre-recorded audio commentary or live teleconference should be directed to Franklin

Resources, Inc., Investor Relations at (650) 312-4091 or Corporate Communications at (650) 312-2245.

4

Highlights of the Quarter & Fiscal Year

Relative investment performance remains strong, across the

board

Quarterly net new flows exceed $12B for the second time in

company history

Cost management efforts over the last 12 months preserved

profitability as a 24% decrease in expenses largely offset a 30%

decline in revenue, following unprecedented market declines

ASSETS UNDER MANAGEMENT

6

Assets Under Management

End of Period

Simple Monthly Average

$523.4

$391.1

$416.2

$507.3

$451.2

30-Sep-08

31-Dec-08

31-Mar-09

30-Jun-09

30-Sep-09

$488.3

$428.0

$555.4

$438.7

$396.6

30-Sep-08

31-Dec-08

31-Mar-09

30-Jun-09

30-Sep-09

(in billions, for the three months ended)

7

Assets Under Management

by Investment Objective

by Sales Region

1

Europe sales region includes Middle East and Africa.  ²Asia-Pacific sales region includes Latin America.

(in billions)

30-Sep-09

30-Jun-09

% Change

Equity

247.0

$      

209.8

$      

18%

Hybrid

98.2

85.8

14%

Fixed-Income

171.3

148.1

16%

Cash Management

6.9

7.5

(8%)

Total

523.4

$      

451.2

$      

16%

(chart is as of September 30, 2009)

(chart is as of September 30, 2009)

(in billions)

30-Sep-09

30-Jun-09

% Change

United States

389.3

$     

339.2

$     

15%

Europe

54.7

44.6

23%

Asia-Pacific

48.3

41.0

18%

Canada

31.1

26.4

18%

Total

523.4

$     

451.2

$     

16%

1

2

United States

74.4%

Canada

5.9%

9.2%

10.5%

Asia-Pacific

2

Europe

1

Hybrid

18.8%

Equity

47.2%

Cash

Management

1.3%

Fixed-Income

32.7%

FLOW SUMMARY

9

1

Long-term net new flows are defined as long-term sales less long-term redemptions plus long-term net exchanges. 

Flow Summary

Market Appreciation (Depreciation)

Long-Term Flows

1

$60.7

$54.7

($63.5)

($71.0)

($19.0)

30-Sep-08

31-Dec-08

31-Mar-09

30-Jun-09

30-Sep-09

(in billions, for the three months ended)

$34.9

($23.3)

$19.8

$27.8

$38.5

$27.9

($24.8)

($45.1)

($22.4)

($46.6)

$12.9

($18.7)

$6.6

($8.9)

($5.1)

30-Sep-08

31-Dec-08

31-Mar-09

30-Jun-09

30-Sep-09

Long-term sales

38.5

$       

27.8

$       

19.8

$       

27.9

$       

34.9

$       

Long-term redemptions

(46.6)

(45.1)

(24.8)

(22.4)

(23.3)

Net cash management

(0.5)

(0.9)

(0.5)

0.5

0.6

Total net new flows

(8.6)

$        

(18.2)

$      

(5.5)

$        

6.0

$         

12.2

$       

10

United States and International Flows

United States

(in billions, for the three months ended)

International

$21.5

($13.4)

$18.1

$14.9

$13.5

$13.4

($20.2)

($12.7)

($24.8)

($16.1)

30-Sep-08

31-Dec-08

31-Mar-09

30-Jun-09

30-Sep-09

$13.4

($9.9)

$6.4

$14.3

$23.6

$9.8

($8.7)

($20.3)

($9.7)

($26.4)

30-Sep-08

31-Dec-08

31-Mar-09

30-Jun-09

30-Sep-09

11

Net New Flows by Investment Objective

(for the three months ended)

($ in billions)

30-Sep-09

30-Jun-09

Sep-09 vs.

Jun-09

30-Sep-08

Sep-09 vs.

Sep-08

Equity sales

12.2

$        

11.1

$        

10%

13.2

$        

(8%)

Equity redemptions

(11.9)

(10.8)

10%

(21.8)

(45%)

Equity net exchanges

-

0.3

(100%)

(1.1)

(100%)

Equity Net New Flows

0.3

0.6

(50%)

(9.7)

NM

Hybrid sales

3.7

2.9

28%

2.8

32%

Hybrid redemptions

(2.8)

(2.7)

4%

(3.9)

(28%)

Hybrid net exchanges

0.1

0.1

0%

(0.3)

NM

Hybrid Net New Flows

1.0

0.3

233%

(1.4)

NM

Fixed-income sales

19.0

13.9

37%

22.5

(16%)

Fixed-income redemptions

(8.6)

(8.9)

(3%)

(20.9)

(59%)

Fixed-income net exchanges

1.2

0.7

71%

0.6

100%

Fixed-Income Net New Flows

11.6

5.7

104%

2.2

427%

Cash Management Net New Flows

(0.7)

(0.6)

17%

0.3

NM

Total Net New Flows

12.2

$        

6.0

$           

103%

(8.6)

$         

NM

INVESTMENT PERFORMANCE

13

%

of

U.S.

Long-Term

Assets

in

Top

Two

Lipper

Quartiles

1

Investment Performance

90%

85%

85%

85%

61%

95%

84%

89%

1 - Year

3 - Year

5 - Year

10 - Year

83%

86%

86%

90%

83%

86%

95%

61%

1 - Year

3 - Year

5 - Year

10 - Year

9/30/2009

6/30/2009

Franklin Templeton

Franklin Templeton Fixed-Income

Franklin Templeton Equity

1

Lipper rankings for Franklin Templeton U.S.-registered long-term mutual funds are based on Class A shares. Franklin Templeton funds are compared against a universe of all share classes.

90%

83%

85%

86%

62%

95%

81%

96%

1 - Year

3 - Year

5 - Year

10 - Year

14

98%

88%

99%

99%

99%

98%

99%

99%

1 - Year

3 - Year

5 - Year

10 - Year

87%

85%

78%

76%

29%

97%

81%

77%

1 - Year

3 - Year

5 - Year

10 - Year

Investment Performance –

Detail View

1

Lipper rankings for Franklin Templeton U.S.-registered long-term mutual funds are based on Class A shares. Franklin Templeton funds are compared against a universe of all share classes.

%

of

U.S.

Long-Term

Assets

in

Top

Two

Lipper

Quartiles

1

88%

92%

87%

92%

85%

87%

89%

96%

1 - Year

3 - Year

5 - Year

10 - Year

9/30/2009

6/30/2009

63%

68%

63%

66%

95%

64%

94%

64%

1 - Year

3 - Year

5 - Year

10 - Year

FTI Tax-Free Fixed-Income

FTI Taxable Fixed-Income

Franklin Equity

Templeton Equity

Mutual Series Equity

100%

93%

92%

97%

62%

96%

89%

97%

1 - Year

3 - Year

5 - Year

10 - Year

OPERATING RESULTS

16

Quarterly Financial Highlights

Operating and Net Income

Diluted Earnings Per Share

$384.7

$326.2

$412.0

$268.4

$223.3

$367.4

$300.5

$297.7

$120.9

$110.8

30-Sep-08

31-Dec-08

31-Mar-09

30-Jun-09

30-Sep-09

$1.60

$1.29

$1.28

$0.52

$0.48

30-Sep-08

31-Dec-08

31-Mar-09

30-Jun-09

30-Sep-09

(in millions, for the three months ended)

Unaudited

17

Operating Revenues

(in millions, for the three months ended)

Unaudited

30-Sep-09

30-Jun-09

Sep-09 vs.

Jun-09

31-Mar-09

31-Dec-08

30-Sep-08

Sep-09 vs.

Sep-08

Investment management fees

725.0

$    

625.0

$    

16%

552.9

$    

600.3

$    

822.4

$    

(12%)

Underwriting and distribution fees

433.4

365.2

19%

304.7

304.9

424.5

2%

Shareholder servicing fees

67.4

67.1

0%

66.5

66.3

69.7

(3%)

Consolidated sponsored

investment products income, net

1.6

2.9

(45%)

1.8

1.9

1.5

7%

Other, net

11.5

13.4

(14%)

(13.6)

(4.1)

3.4

238%

Total Operating Revenues

1,238.9

$ 

1,073.6

$ 

15%

912.3

$    

969.3

$    

1,321.5

$ 

(6%)

18

Operating Expenses

30-Sep-09

30-Jun-09

Sep-09 vs.

Jun-09

31-Mar-09

31-Dec-08

30-Sep-08

Sep-09 vs.

Sep-08

Underwriting and distribution

418.3

$     

350.7

$     

19%

293.5

$     

289.5

$     

406.5

$     

3%

Compensation and benefits

246.8

230.9

7%

236.7

244.1

274.1

(10%)

Information systems, technology

and occupancy

72.0

68.2

6%

65.4

68.6

83.0

(13%)

Advertising and promotion

37.3

27.9

34%

26.7

24.2

45.5

(18%)

Amortization of deferred sales

commissions

39.7

32.9

21%

33.8

36.6

48.2

(18%)

Other

40.1

36.8

9%

32.9

38.0

52.2

(23%)

Total Operating Expenses

854.2

$     

747.4

$     

14%

689.0

$     

701.0

$     

909.5

$     

(6%)

(in millions, for the three months ended)

Unaudited

19

Operating Results

30-Sep-09

30-Jun-09

Sep-09 vs.

Jun-09

31-Mar-09

31-Dec-08

30-Sep-08

Sep-09 vs.

Sep-08

Operating Income

384.7

$     

326.2

$     

18%

223.3

$     

268.4

$     

412.0

$     

(7%)

Consolidated sponsored

investment products income

(losses), net

31.9

35.6

(10%)

(9.3)

(36.5)

(35.5)

NM

Investment and other income

(losses), net

87.2

52.3

67%

(33.9)

(45.0)

77.8

12%

Interest expense

(0.3)

(0.2)

50%

(2.1)

(1.2)

(0.5)

(40%)

Other income (expenses), net

118.8

87.7

35%

(45.3)

(82.7)

41.8

184%

Income Before Taxes

503.5

413.9

22%

178.0

185.7

453.8

11%

Taxes on income

136.1

116.2

17%

67.2

64.8

153.3

(11%)

Net Income

367.4

$     

297.7

$     

23%

110.8

$     

120.9

$     

300.5

$     

22%

Basic earnings per share

1.61

$       

1.30

$       

24%

0.48

$       

0.52

$       

1.29

$       

25%

Diluted Earnings per Share

1.60

$       

1.29

$       

24%

0.48

$       

0.52

$       

1.28

$       

25%

Average shares outstanding (in thousands)

Basic

228,741

229,804

0%

231,178

231,626

232,832

(2%)

Diluted

230,178

230,823

0%

231,891

232,688

234,563

(2%)

(in millions, except per share data, for the three months ended)

Unaudited

20

Operating Margin

Operating Margin and Capital Management

31.2%

27.7%

24.5%

30.4%

31.1%

30-Sep-08

31-Dec-08

31-Mar-09

30-Jun-09

30-Sep-09

Stock Repurchase Activity

1

Dividend and repurchase payout are calculated as amount of dividend declared divided by net income and amount of stock repurchase divided by net income, respectively.

2.4

1.4

1.7

1.7

0.7

230.4

229.3

232.9

232.8

232.0

30-Sep-08

31-Dec-08

31-Mar-09

30-Jun-09

30-Sep-09

Payout Ratio

(in millions, for the three months ended)

Unaudited

15%

40%

44%

16%

13%

74%

34%

62%

37%

43%

89%

74%

106%

53%

56%

30-Sep-08

31-Dec-08

31-Mar-09

30-Jun-09

30-Sep-09