Q2 2025 Franklin Resources Inc Earnings Call Transcript
Key Points
- Franklin Resources Inc (BEN) reported a significant increase in its institutional one-but-unfunded pipeline, reaching $20.4 billion, the highest level since 2022.
- The company has a diversified asset management platform with $1.54 trillion in assets under management, spread across various asset classes, vehicles, and geographies.
- Franklin Resources Inc (BEN) saw positive net flows in multi-asset and alternatives, generating a combined $9.7 billion in positive net flows.
- The ETF business experienced its 14th consecutive quarter of positive net flows, attracting $4.1 billion during Q2, with a record-high AUM of $37 billion.
- The company launched its first perpetual secondaries private equity fund, raising an initial combined $2 billion, demonstrating strong growth in the wealth management channel.
- Franklin Resources Inc (BEN) faced long-term net outflows of $26.2 billion, primarily due to the impact of long-term net outflows at Western Asset and negative markets.
- Fixed income net outflows were significant at $30.5 billion, although excluding Western, fixed income net inflows were $2.8 billion.
- The company experienced a decrease in adjusted operating income by 8.6% from the prior quarter, primarily due to compensation expenses and the impact of Western.
- Western Asset Management, a subsidiary, faced $10 billion in outflows in April, indicating ongoing redemption pressures.
- The company is navigating market volatility and geopolitical tensions, which have created uncertainties and challenges in maintaining stable growth.
Welcome to the Franklin Resources earnings conference call for the quarter ended March 31, 2025. Hello, my name is Rob, and I'll 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. The statements made on this conference call regarding Franklin Resources, Inc., which are not historical facts or forward-looking statements, was in 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
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