Q2 2026 Franklin Resources Inc Earnings Call Transcript
Key Points
- Franklin Resources Inc (BEN) reported $16.9 billion in long-term net inflows, showcasing strong client demand across public and private markets.
- The company achieved record gross sales and positive long-term net flows in every region, reflecting the effectiveness of its global distribution platform.
- Franklin Resources Inc (BEN) is ahead of its five-year plan, focusing on delivering strong investment outcomes and evolving capabilities for sustainable growth.
- The firm's ETF AUM reached a new high of $61.6 billion, marking an 18th consecutive quarter of positive flows, with active ETFs now representing 45% of ETF AUM.
- Investment performance remains competitive, with over half of mutual fund and ETF AUM outperforming peer medians over multiple time periods, supporting client retention and organic growth.
- Net outflows in equities amounted to $4.7 billion, indicating selective investor activity and challenges in certain asset classes.
- Fixed income experienced net outflows of approximately $300 million, although excluding Western, flows were positive.
- The company faces increased competition in the tax optimization and customization space, requiring differentiation through technology and partnerships.
- There are concerns about potential regulatory scrutiny and demand impact on secondary private equity strategies due to marking up deals immediately upon close.
- Franklin Resources Inc (BEN) is experiencing elevated fundraising-related expenses, impacting G&A costs, which may not be sustainable long-term.
Welcome to Franklin Resources earnings conference call for the quarter ended March 31, 2026. Hello, my name is Nicole, 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 results. 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, uncertainties, and other important factors that could cause actual results to differ materially from any future results expressed or implied by such forward-looking statements.
These and other risks, uncertainties, and other important factors are just
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