Franklin Resources Hits $1.66T AUM, Outpaces Alternatives Growth Plan

Ticker: BEN · Form: DEF 14A · Filed: Dec 22, 2025 · CIK: 38777

Sentiment: bullish

Topics: Asset Management, AUM Growth, Shareholder Returns, Strategic Diversification, Alternative Investments, ETFs, Corporate Governance

Related Tickers: BEN

TL;DR

**BEN is executing its diversification strategy flawlessly, with strong inflows and alternative AUM growth making it a solid long-term hold.**

AI Summary

Franklin Resources, Inc. (BEN) reported ending assets under management (AUM) of $1.66 trillion as of September 30, 2025, driven by a 7.8% increase in long-term inflows to $343.9 billion from $319 billion in the prior year. Despite overall long-term net outflows of $97.4 billion (including $30.4 billion of reinvested distributions), the company achieved $44.5 billion in long-term net inflows excluding Western Asset, marking eight consecutive quarters of positive net flows. Fiscal year 2025 was the first year of a five-year strategic plan, with record growth in retail separately managed accounts, ETFs, and Canvas, all showing positive net flows and double-digit AUM growth. Alternative AUM reached a record $270 billion, boosted by the Apera Asset Management acquisition and strong fundraising of $26.2 billion, including $22.9 billion in private markets. The company returned $930 million to shareholders through dividends and share repurchases, repaid $400 million in senior notes due March 2025, and has increased its dividend annually since 1981.

Why It Matters

Franklin Resources' strong AUM growth to $1.66 trillion and consistent long-term net inflows, excluding Western Asset, signal robust client confidence and effective diversification strategies, particularly in alternatives. This performance, coupled with $930 million returned to shareholders, demonstrates financial stability and a commitment to investor returns, potentially attracting new capital. For employees, the strategic focus on growth areas like ETFs and Canvas suggests opportunities for innovation and expansion. In a competitive asset management landscape, BEN's ahead-of-schedule progress in its five-year plan, especially in private markets fundraising, positions it strongly against rivals by offering a broader suite of investment solutions to customers.

Risk Assessment

Risk Level: low — The company demonstrates low risk through its disciplined expense management, repayment of $400 million in senior notes due March 2025, and consistent return of $930 million to shareholders via dividends and share repurchases. Furthermore, its dividend has increased every year since 1981, indicating a stable financial policy and strong balance sheet flexibility.

Analyst Insight

Investors should consider increasing their exposure to BEN, given its strong execution on its five-year strategic plan, particularly in high-growth areas like alternatives and ETFs. The consistent dividend increases since 1981 and significant shareholder returns of $930 million reinforce its financial stability and commitment to shareholder value.

Financial Highlights

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

Executive Compensation

NameTitleTotal Compensation
Not DisclosedCEO$X
Not DisclosedOther NEOs$X

Key Numbers

Key Players & Entities

FAQ

What were Franklin Resources' (BEN) assets under management (AUM) as of September 30, 2025?

Franklin Resources' (BEN) ending assets under management (AUM) were $1.66 trillion as of September 30, 2025, reflecting significant growth in its investment portfolio.

How much did Franklin Resources (BEN) return to shareholders in fiscal year 2025?

In fiscal year 2025, Franklin Resources (BEN) returned $930 million to shareholders through a combination of dividends and share repurchases, demonstrating a commitment to shareholder value.

What was the growth in long-term inflows for Franklin Resources (BEN) in fiscal year 2025?

Franklin Resources (BEN) saw long-term inflows increase by 7.8% to $343.9 billion in fiscal year 2025, up from $319 billion in the prior year, indicating strong client asset accumulation.

What is Franklin Resources' (BEN) strategic outlook for alternative investments?

Franklin Resources (BEN) is ahead of its five-year plan for alternatives fundraising, with alternative AUM reaching a record $270 billion and strong fundraising of $26.2 billion, including $22.9 billion in private markets.

Who are the key executives at Franklin Resources (BEN) mentioned in the DEF 14A filing?

The key executives mentioned in the DEF 14A filing for Franklin Resources (BEN) are Gregory E. Johnson, Chairman of the Board, and Jennifer M. Johnson, Chief Executive Officer.

What proposals are being voted on at Franklin Resources' (BEN) 2026 Annual Meeting of Stockholders?

Stockholders of Franklin Resources (BEN) will vote on electing 11 directors, ratifying PricewaterhouseCoopers LLP as the independent auditor, approving amendments to the 1998 Employee Stock Investment Plan and 2002 Universal Stock Incentive Plan, and an advisory vote on executive compensation.

How has Franklin Resources (BEN) managed its debt obligations in fiscal year 2025?

Franklin Resources (BEN) strengthened its financial foundation by repaying $400 million in senior notes that were due in March 2025, demonstrating disciplined financial management.

What is the significance of the increase in shares for Franklin Resources' (BEN) employee stock plans?

Franklin Resources (BEN) is proposing to increase shares for its 1998 Employee Stock Investment Plan by 5,000,000 and its 2002 Universal Stock Incentive Plan by 25,000,000, which aims to enhance employee ownership and align incentives with company performance.

When is Franklin Resources' (BEN) 2026 Annual Meeting of Stockholders?

Franklin Resources' (BEN) 2026 Annual Meeting of Stockholders will be held virtually on Tuesday, February 3, 2026, at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time).

What are Franklin Resources' (BEN) key growth areas mentioned in the filing?

Franklin Resources (BEN) highlighted record growth in retail separately managed accounts, exchange-traded funds (ETFs), and Canvas, its custom indexing platform, all delivering positive net flows and double-digit AUM growth rates.

Industry Context

The asset management industry is highly competitive, with firms like Franklin Resources navigating shifts towards passive investing, increasing demand for alternative investments, and evolving regulatory landscapes. Growth is driven by attracting inflows, managing fees effectively, and expanding into new asset classes and distribution channels.

Regulatory Implications

Franklin Resources operates within a heavily regulated environment. Changes in securities laws, fiduciary duty standards, and international regulations can impact business operations, compliance costs, and product offerings. The company must maintain robust compliance programs to mitigate risks associated with these regulations.

What Investors Should Do

  1. Review the 'Executive Compensation Highlights' section to understand the alignment of pay with performance and the company's compensation philosophy.
  2. Vote on Proposal No. 5, the advisory vote to approve the compensation of named executive officers, considering the company's stated compensation practices.
  3. Note the proposed amendments to the Employee Stock Investment Plan (ESIP) and Universal Stock Incentive Plan (USIP) and vote accordingly on Proposals 3 and 4, considering the impact on share dilution and employee incentives.

Key Dates

Glossary

AUM
Assets Under Management. The total market value of investments that a financial institution manages on behalf of clients. (A key metric for asset management firms like Franklin Resources, indicating the scale of their business and potential for fee generation.)
DEF 14A
Definitive Proxy Statement. A filing with the SEC that provides detailed information to shareholders about matters to be voted on at an annual meeting. (This document contains crucial information about executive compensation, board nominations, and other corporate governance matters.)
NEOs
Named Executive Officers. The top executive officers of a company, typically including the CEO, CFO, and other key senior executives. (Their compensation is detailed in the proxy statement and is subject to shareholder advisory votes.)
ESIP
Employee Stock Investment Plan. (A plan that allows employees to purchase company stock, with additional shares authorized for this plan.)
USIP
Universal Stock Incentive Plan. (A plan that provides for the granting of stock options, stock awards, and other equity-based compensation to employees and directors, with additional shares authorized for this plan.)

Year-Over-Year Comparison

The filing indicates fiscal year 2025 was the first year of a five-year strategic plan, showing record growth in retail separately managed accounts, ETFs, and Canvas, with positive net flows and double-digit AUM growth. Alternative AUM also reached a record high. The company has continued its practice of returning capital to shareholders and repaying debt, suggesting a stable financial management approach compared to the prior year.

Filing Stats: 4,280 words · 17 min read · ~14 pages · Grade level 14.5 · Accepted 2025-12-22 11:01:52

Key Financial Figures

Filing Documents

Executive compensation

Executive compensation 53 Summary compensation table for fiscal year 2025 53 Grants of plan-based awards for fiscal year 2025 54 Outstanding equity awards at 2025 fiscal year-end 55 Option exercises and stock vested for fiscal year 2025 56 Non-Qualified deferred compensation 56 Potential payments upon termination or change in control 57 Pay ratio 60 Pay versus performance 60 Compensation risk assessment 63 Compensation committee interlocks and insider participation 63 Equity compensation plan information 64 Report of the audit committee 65 Membership and role of the audit committee 65 Review of the company's audited financial statements for the fiscal year ended September 30, 2025 65 Fees paid to independent registered public accounting firm 66 Pre-approval process and policy 67 Certain relationships and related transactions 68 Related person transaction policy 69 Section 16(a) beneficial ownership reporting compliance 71 Delinquent section 16(a) reports 71 PROPOSAL NO. 2: Ratification of the appointment of independent registered public accounting firm 72 PROPOSAL NO. 3: Approval of the amendment and restatement of the Company's 1998 Employee Stock Investment Plan 73 PROPOSAL NO. 4: Approval of the amendment and restatement of the Company's 2002 Universal Stock Incentive Plan 79 PROPOSAL NO. 5: Advisory vote to approve the compensation of our named executive officers 87 Questions and answers 88 Additional information 92 Stockholder proposals and nominations of directors at 2027 annual meeting 92 Contact the board of directors 93 Electronic access to proxy materials and annual meeting 93 Householding of proxy materials 93 Other matters 94 Appendix A: Franklin Resources, Inc. 1998 Employee Stock Investment Plan A-1 Appendix B: Franklin Resources, Inc. 2002 Universal Stock Incentive Plan B-1 2026 Proxy Statement iii

EXECUTIVE COMPENSATION HIGHLIGHTS

EXECUTIVE COMPENSATION HIGHLIGHTS What We Do Align pay with performance: a significant portion of total compensation for all NEOs is performance-based Grant long-term awards based on meaningful performance measures Maintain clawback policies Require significant stock ownership Limit perquisites Retain an independent consultant to the Compensation Committee Regularly review incentive compensation plans and compensation practices Engage with stockholders regarding compensation practices What We Don't Do Provide excessive severance benefits Enter into change in control agreements with NEOs Provide excise tax gross-ups Reprice underwater stock options Permit hedging of Company stock Allow pledging of Company stock received as compensation Offer executive-specific retirement plans Pay dividends or dividend equivalents to NEOs on unvested performance shares 2026 Proxy Statement 5 TABLE OF CONTENTS CEO Compensation Other NEOs Compensation Pay Type Pay Element Purpose Base Salary Fixed Cash Provides fixed pay for performing day-to-day responsibilities Short-Term Incentive At Risk Performance- Based Variable Compensation Cash Performance-based variable compensation reinforces our pay-for-performance culture Recognizes current year achievement of goals and objectives Total award amount determined and divided into short and long-term incentives All long-term incentive awards are subject to malus and clawback provisions Long-Term Incentive Time-Based Restricted Stock Units Performance-Based Share Units 2025 STOCKHOLDER ENGAGEMENT We engage with stockholders to provide multiple opportunities for them to express their views so that we may consider those views as we evaluate our governance practices, executive compensation program and other matters of interest to stockholders. We value our stockholders' feedback and we are committed to maintaining an active dialogue to ensure that we understand the priorities

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