Q4 2025 Franklin Resources Inc Earnings Call Transcript
Key Points
- Franklin Resources Inc (BEN) was named 2025 Asset Manager of the Year in the $500 billion-plus AUM category by Money Management and Barron's, highlighting its leadership in innovation and investment advisory solutions.
- The company achieved strong growth in its ETF business, with a 75% compound annual growth rate since 2023 and 16 consecutive quarters of net inflows.
- Franklin Resources Inc (BEN) reported a significant increase in private market fundraising, reaching $22.9 billion in fiscal 2025, ahead of its five-year $100 billion fundraising goal.
- The company has made substantial progress in its digital assets business, with tokenized and digital AUM reaching $1.7 billion, up 75% from the beginning of the year.
- Franklin Resources Inc (BEN) has successfully integrated AI into its operations, enhancing productivity and efficiency across investment management, operations, sales, and marketing.
- The company experienced $122.7 billion in net outflows in fixed income, despite positive net flows into certain strategies like munis and stable value.
- Adjusted operating expenses increased by 10.5% from the prior quarter, primarily due to higher incentive compensation and performance fee-related expenses.
- Fiscal year 2025 adjusted operating margin decreased to 24.5% from 26.1% in the prior year, reflecting support for Western Asset Management.
- Franklin Resources Inc (BEN) reported a $200 million non-cash charge related to the impairment of an indefinite-lived tangible asset managed by Western Asset.
- The company faces challenges in the fundraising environment, particularly in the secondary space, which is more difficult than historically.
Welcome to Franklin Resources earnings conference call for the quarter and fiscal year ended September 30, 2025. Hello. My name is Sachi, and I will be your call operator today. As a reminder, this conference is being recorded. (Operator Instructions)
I would now like to turn the conference over to your host, Selene Oh, Head of Investor Relations for Franklin Resources. You may begin.
Good morning and thank you for joining us today to discuss our quarterly and fiscal year results. Please note that the financial results to be presented in this commentary are preliminary. Statements made on this conference call regarding Franklin Resources, Inc. 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 uncertainty and other important factors that could cause actual results to differ materially from any future results expressed
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