Q1 2026 Franklin Resources Inc Earnings Call Transcript
Key Points
- Franklin Resources Inc (BEN) reported record long-term inflows of $118.6 billion, marking a 40% increase from the prior quarter and a 22% increase from the prior-year quarter.
- Assets under management (AUM) reached $1.68 trillion, driven by long-term net inflows and the acquisition of Apera.
- The company achieved positive net flows across equity, multi-asset, and alternative strategies, as well as ETFs, retail SMAs, and Canvas.
- Franklin Templeton's ETF platform reached a new high with $58 billion in AUM and generated $7.5 billion in net flows, marking its 17th consecutive positive quarter.
- The company continues to expand its private credit platform, with significant fundraising in private market assets, including a $10 billion closing of BSP Real Estate Opportunistic Debt Fund II.
- Fixed income net outflows were $2.4 billion, although excluding Western Asset, fixed income net inflows were $2.6 billion.
- Investment performance declined modestly in the one- and three-year periods due to select U.S. equity strategies.
- Adjusted operating income was impacted by lower performance fees and the annual deferred compensation acceleration for retirement-eligible employees.
- The company faces ongoing challenges with market turbulence and economic uncertainty, impacting investor sentiment and capital flows.
- Western Asset Management continues to experience outflows, although there are signs of stabilization with $6.6 billion in gross sales in the last quarter.
Welcome to Franklin Resources Earnings Conference Call for the Quarter Ended December 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. Statements made in 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
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