Franklin Resources Tops $1.6T AUM, Bolstered by Strategic Acquisitions

Ticker: BEN · Form: 10-K · Filed: Nov 10, 2025 · CIK: 38777

Sentiment: bullish

Topics: Asset Management, Investment Management, Acquisitions, AUM Growth, Financial Services, Global Markets, Diversification

Related Tickers: BLK, JPM, MS, SCHW, AMG

TL;DR

**BEN is a buy; their aggressive M&A strategy and diversified AUM base position them for continued growth in a consolidating market.**

AI Summary

FRANKLIN RESOURCES, INC. (BEN) reported over $1.6 trillion in Assets Under Management (AUM) as of September 30, 2025, demonstrating its position as a global investment management organization. The company's revenue is primarily derived from investment management fees, which are largely dependent on the level and mix of AUM. BEN has strategically expanded its business through numerous acquisitions, including the recent acquisition of Putnam in January 2024 and Apera in October 2025, enhancing its capabilities across equity, fixed income, alternatives, and multi-asset solutions. Equity represents the largest asset class at 41% of total AUM, or $686.2 billion, followed by fixed income at 26% ($438.7 billion). The company faces risks from complex global business and regulatory environments, as well as potential reputational harm and asset volatility. Its strategic outlook focuses on investment excellence, innovation to meet evolving client goals, and building strong partnerships through superior client service.

Why It Matters

Franklin Resources' substantial AUM of over $1.6 trillion and its aggressive acquisition strategy, including Putnam and Apera, signal a strong push for market share in the competitive asset management industry. This expansion could lead to increased economies of scale and diversified revenue streams, potentially benefiting investors through enhanced shareholder value. For employees, these integrations may bring new opportunities or challenges related to organizational restructuring. Customers gain access to a broader range of specialized investment products and solutions, intensifying competition among financial service providers and potentially driving down fees or improving service quality across the market.

Risk Assessment

Risk Level: medium — The company operates in a complex and uncertain global business and regulatory environment, as stated on page 4, which can impose significant restrictions and compliance costs. Additionally, its revenues are highly dependent on AUM levels and mix, making it susceptible to market volatility and shifts in client preferences, as highlighted by the $1.6 trillion AUM figure and its breakdown on page 5.

Analyst Insight

Investors should consider BEN for its strategic growth through acquisitions and diversified asset base. Monitor future AUM growth and net flows, as these directly impact revenue and profitability. Pay close attention to integration success of recent acquisitions like Putnam and Apera.

Financial Highlights

debt To Equity
X.X
revenue
$5.9B
operating Margin
X%
total Assets
$1.661.2B
total Debt
$X
net Income
$X
eps
$X
gross Margin
X%
cash Position
$X
revenue Growth
+X%

Key Numbers

Key Players & Entities

FAQ

What are Franklin Resources' primary sources of revenue?

Franklin Resources primarily derives its revenues from investment management fees, which are largely based on a percentage of its Assets Under Management (AUM) and the specific types of services provided, as detailed on page 4 of the filing.

How much AUM did Franklin Resources manage as of September 30, 2025?

As of September 30, 2025, Franklin Resources managed over $1.6 trillion in Assets Under Management (AUM), specifically $1,661.2 billion, as stated on page 5 of the 10-K filing.

What were Franklin Resources' key acquisitions in recent years?

Franklin Resources made several key acquisitions, including Benefit Street Partners in 2019, Legg Mason in July 2020, O'Shaughnessy Asset Management in December 2021, Lexington Partners in April 2022, Alcentra in November 2022, Putnam in January 2024, and Apera in October 2025, as listed on page 4.

What are the main asset classes managed by Franklin Resources?

Franklin Resources manages a broad product mix across equity, fixed income, alternative, multi-asset, and cash management asset classes. Equity represents the largest portion at 41% of AUM, followed by fixed income at 26%, as shown in the table on page 5.

What are the primary risks Franklin Resources faces?

Franklin Resources faces risks from complex and uncertain global business and regulatory environments, potential reputational harm, and asset volatility due to changing market conditions and client needs, as discussed on page 3 and 5.

How does Franklin Resources distribute its investment products?

Franklin Resources distributes and markets its capabilities globally through various subsidiaries and multiple points of access, including directly to investors and through financial intermediaries, as well as through relationships with consultants and direct sales efforts for institutional business, as described on page 6.

What is the role of specialist investment managers within Franklin Resources?

Franklin Resources' specialist investment managers, such as Benefit Street Partners and Western Asset Management, offer diverse perspectives and specialized expertise across asset classes and strategies, managing portfolios and providing investment management services under their own brand names, as detailed on page 5 and 6.

Is Franklin Resources considered a well-known seasoned issuer?

Yes, Franklin Resources is indicated as a well-known seasoned issuer, as defined in Rule 405 of the Securities Act, according to the checkmark on the cover page of the 10-K filing.

What is the ticker symbol for Franklin Resources' common stock?

The common stock of Franklin Resources, Inc. is traded on the New York Stock Exchange under the ticker symbol 'BEN', as stated on the cover page and page 3 of the filing.

What is Franklin Resources' mission?

Franklin Resources' mission is to help clients achieve better outcomes through investment management expertise, wealth management, and technology solutions, as stated on page 3 of the 10-K filing.

Risk Factors

Industry Context

Franklin Resources operates in the highly competitive global investment management industry. Key trends include the increasing demand for specialized investment strategies across equity, fixed income, and alternatives, as well as the growth of passive investing and ETFs. Consolidation through strategic acquisitions, like those made by Franklin Resources, is a common strategy to enhance capabilities and scale. Fee compression remains a persistent challenge across the industry.

Regulatory Implications

The company's global operations expose it to a complex web of financial regulations across various jurisdictions. Compliance with evolving rules regarding investment advisory, data privacy, and cross-border financial services is critical. Failure to adhere to these regulations can result in significant fines, reputational damage, and operational restrictions.

What Investors Should Do

  1. Monitor AUM growth and composition
  2. Assess acquisition integration success
  3. Evaluate competitive positioning and fee trends
  4. Scrutinize risk factor disclosures

Key Dates

Glossary

Assets Under Management (AUM)
The total market value of assets that an investment company manages on behalf of its clients. This is a key metric for asset managers. (Franklin Resources reported over $1.6 trillion in AUM as of September 30, 2025, which is the primary driver of its revenue through management fees.)
Investment Management Fees
Fees charged by investment managers for managing client assets, typically calculated as a percentage of AUM. (This is the primary source of revenue for Franklin Resources, directly tied to its AUM levels and the mix of asset classes managed.)
Separate Accounts
Investment accounts managed on behalf of a single client, tailored to their specific investment objectives and risk tolerance. (Franklin Resources offers these to institutional and high-net-worth investors, representing a significant portion of its client base and AUM.)
Sub-advised Products
Investment products where one investment manager (the sub-advisor) manages the assets on behalf of another investment company or advisor. (Franklin Resources provides these services to other companies, expanding its reach and revenue potential beyond its directly managed funds.)
Exchange-Traded Funds (ETFs)
Investment funds that are traded on stock exchanges, similar to individual stocks, offering diversification and liquidity. (Franklin Resources offers ETFs as part of its product suite, catering to a growing segment of the investment market.)
Registered Funds
Investment companies registered with regulatory bodies (like the SEC in the U.S.) that are subject to specific rules and regulations. (Franklin Resources manages a significant portion of its AUM through these regulated funds, ensuring compliance and investor protection.)

Year-Over-Year Comparison

While specific comparative figures are not detailed in this excerpt, the 10-K for the fiscal year ending September 30, 2025, indicates a significant scale with over $1.6 trillion in AUM, bolstered by recent acquisitions like Putnam and Apera. This suggests a strategy focused on growth through consolidation. Investors should compare revenue growth, net income, and operating margins to the prior year to assess the impact of these acquisitions and market conditions on profitability.

Filing Stats: 4,318 words · 17 min read · ~14 pages · Grade level 14.2 · Accepted 2025-11-10 14:19:54

Key Financial Figures

Filing Documents

RISK FACTORS

ITEM 1A. RISK FACTORS 16

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS 27 ITEM 1C. CYBERSECURITY 27

PROPERTIES

ITEM 2. PROPERTIES 29

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 29

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 29 INFORMATION ABOUT OUR EXECUTIVE OFFICERS 30 PART II

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 32

[RESERVED]

ITEM 6. [RESERVED] 32

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 32

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 56

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 58

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 98

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 98

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 98

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 98 PART III

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 99

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 99

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 99

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 100

PRINCIPAL ACCOUNTANT FEES AND SERVICES

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 100 PART IV

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 101

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 101 EXHIBIT INDEX 101

SIGNATURES

SIGNATURES 104 2 Table of Contents PART I

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10K ("Annual Report") and the documents incorporated by reference herein may include forward-looking statements that reflect our current views with respect to future events and financial performance. Such statements are provided under the "safe harbor" protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts and generally can be identified by words or phrases written in the future tense and/or preceded by words such as "anticipate," "believe," "could," "depends," "estimate," "expect," "intend," "likely," "may," "plan," "potential," "seek," "should," "will," "would," or other similar words or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements. Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors that may cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. The forward-looking statements contained in this Annual Report or that are incorporated by reference herein are qualified in their entirety by reference to the risks and uncertainties disclosed in this Annual Report, including those discussed under the headings "Risk Factors," "Management ' s Discussion and Analysis of Financial Condition and Results of Operations," and "Quantitative and Qualitative Disclosures About Market Risk." 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 possible future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncer

Business

Item 1. Business. OVERVIEW Franklin Resources, Inc. ("Franklin") is a holding company with subsidiaries operating under our Franklin Templeton and/or subsidiary brand names. Franklin's common stock is traded on the New York Stock Exchange (the "NYSE") under the ticker symbol "BEN" and is included in the Standard & Poor's 500 Index. In this Annual Report, Franklin and its subsidiaries are collectively referred to as the "Company," and words such as "we," "us," "our" and similar terms refer to the Company. We have one operating segment, investment management and related services. We offer our services and products under our various distinct brand names, including, but not limited to, Alcentra , Apera , Benefit Street Partners , Brandywine Global Investment Management , Canvas , Clarion Partners , ClearBridge Investments , Fiduciary Trust International, Franklin , Franklin Mutual Series , K2 , Legg Mason , Lexington Partners , O'Shaughnessy , Putnam , Royce , Templeton and Western Asset Management Company . Unless otherwise indicated, our "funds" means the funds offered under our various brand names, which may include co-branded funds. 3 Table of Contents We are a global investment management organization with over $1.6 trillion in assets under management ("AUM") as of September 30, 2025. Our mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through our specialist investment managers, we offer specialization on a global scale, bringing extensive capabilities in equity, fixed income, alternatives and multi-asset solutions. For over 75 years, we have been committed to providing clients with exceptional investment management services and have developed a globally diversified business, including through strategic acquisitions. We provide our investment management and related services to retail, institutional and high-net-worth investors in jurisdictions worldwide. We deliver our

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