Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

39fc573bcebda28f712fb6772f00078a970e06f41c1a1bd5a56985aacc98cfb2

| Metric / Period | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **AUM by Asset Class (USD Billion)** | | | | | | | | |
| Equity | **419.1**  **[0000038777-23-000009_ben-20221231.htm:18]**  | **437.1**  **[0000038777-23-000071_exhibit991q2fy23.htm:5]**  | **458.0**  **[0000038777-23-000105_exhibit991q3fy23.htm:5]**  | **430.4**  **[0000038777-23-000143_exhibit991q4fy23.htm:6]**  | **467.5**  **[0000038777-24-000006_ben-20231231.htm:18]**  | **592.7**  **[0000038777-24-000069_ben-20240331.htm:22]**  | **595.0**  **[0000038777-24-000115_ben-20240630.htm:23]**  | **632.1**  **[0000038777-24-000206_ben-20240930.htm:8]**  |
| Fixed Income | **494.8**  **[0000038777-23-000009_ben-20221231.htm:18]**  | **510.1**  **[0000038777-23-000071_exhibit991q2fy23.htm:5]**  | **505.1**  **[0000038777-23-000105_exhibit991q3fy23.htm:5]**  | **483.1**  **[0000038777-23-000143_exhibit991q4fy23.htm:6]**  | **511.7**  **[0000038777-24-000006_ben-20231231.htm:18]**  | **571.4**  **[0000038777-24-000069_ben-20240331.htm:22]**  | **564.5**  **[0000038777-24-000115_ben-20240630.htm:23]**  | **556.4**  **[0000038777-24-000206_ben-20240930.htm:8]**  |
| Alternative | **257.4**  **[0000038777-23-000009_ben-20221231.htm:18]**  | **258.2**  **[0000038777-23-000071_exhibit991q2fy23.htm:5]**  | **257.2**  **[0000038777-23-000105_exhibit991q3fy23.htm:5]**  | **254.9**  **[0000038777-23-000143_exhibit991q4fy23.htm:6]**  | **256.2**  **[0000038777-24-000006_ben-20231231.htm:18]**  | **255.5**  **[0000038777-24-000069_ben-20240331.htm:22]**  | **254.5**  **[0000038777-24-000115_ben-20240630.htm:23]**  | **249.9**  **[0000038777-24-000206_ben-20240930.htm:8]**  |
| Multi-Asset | **141.4**  **[0000038777-23-000009_ben-20221231.htm:18]**  | **146.1**  **[0000038777-23-000071_exhibit991q2fy23.htm:5]**  | **148.3**  **[0000038777-23-000105_exhibit991q3fy23.htm:5]**  | **145.0**  **[0000038777-23-000143_exhibit991q4fy23.htm:6]**  | **154.6**  **[0000038777-24-000006_ben-20231231.htm:18]**  | **163.4**  **[0000038777-24-000069_ben-20240331.htm:22]**  | **168.1**  **[0000038777-24-000115_ben-20240630.htm:23]**  | **176.2**  **[0000038777-24-000206_ben-20240930.htm:8]**  |
| Cash Management | **75.0**  **[0000038777-23-000009_ben-20221231.htm:18]**  | **70.6**  **[0000038777-23-000071_exhibit991q2fy23.htm:5]**  | **62.9**  **[0000038777-23-000105_exhibit991q3fy23.htm:5]**  | **60.8**  **[0000038777-23-000143_exhibit991q4fy23.htm:6]**  | **65.5**  **[0000038777-24-000006_ben-20231231.htm:18]**  | **61.7**  **[0000038777-24-000069_ben-20240331.htm:22]**  | **64.5**  **[0000038777-24-000115_ben-20240630.htm:23]**  | **64.0**  **[0000038777-24-000206_ben-20240930.htm:8]**  |
| Total AUM | **1,387.7**  **[0000038777-23-000009_ben-20221231.htm:18]**  | **1,422.1**  **[0000038777-23-000071_exhibit991q2fy23.htm:5]**  | **1,431.5**  **[0000038777-23-000105_exhibit991q3fy23.htm:5]**  | **1,374.2**  **[0000038777-23-000143_exhibit991q4fy23.htm:6]**  | **1,455.5**  **[0000038777-24-000006_ben-20231231.htm:18]**  | **1,644.7**  **[0000038777-24-000069_ben-20240331.htm:22]**  | **1,646.6**  **[0000038777-24-000115_ben-20240630.htm:23]**  | **1,678.6**  **[0000038777-24-000206_ben-20240930.htm:8]**  |
| **Components of Change in AUM (USD Billion)** | | | | | | | | |
| Beginning AUM | **1,297.4**  **[0000038777-23-000009_ben-20221231.htm:18]**  | **1,387.7**  **[0000038777-23-000009_ben-20221231.htm:18]**  | **1,422.1**  **[0000038777-23-000072_ben-20230331.htm:22]**  | **1,431.5**  **[0000038777-23-000106_ben-20230630.htm:23]**  | **1,374.2**  **[0000038777-23-000143_exhibit991q4fy23.htm:2]** **[0000038777-23-000143_exhibit991q4fy23.htm:6]**  | **1,455.5**  **[0000038777-24-000006_ben-20231231.htm:18]**  | **1,644.7**  **[0000038777-24-000069_ben-20240331.htm:23]**  | **1,646.6**  **[0000038777-24-000115_ben-20240630.htm:24]**  |
| Long-term Inflows | **70.5**  **[0000038777-23-000009_ben-20221231.htm:19]**  | **61.8**  **[0000038777-23-000072_ben-20230331.htm:22]**  | **67.4**  **[0000038777-23-000106_ben-20230630.htm:23]**  | **55.2**  **[0000038777-23-000143_exhibit991q4fy23.htm:6]**  | **68.9**  **[0000038777-24-000006_ben-20231231.htm:18]**  | **84.9**  **[0000038777-24-000068_exhibit991q2fy24.htm:1]**  | **82.7**  **[0000038777-24-000115_ben-20240630.htm:24]**  | **82.5**  **[0000038777-24-000177_exhibit991q4fy24.htm:7]**  |
| Long-term Outflows | **81.4**  **[0000038777-23-000009_ben-20221231.htm:19]**  | **65.5**  **[0000038777-23-000072_ben-20230331.htm:22]**  | **67.2**  **[0000038777-23-000106_ben-20230630.htm:23]**  | **62.1**  **[0000038777-23-000143_exhibit991q4fy23.htm:6]**  | **73.9**  **[0000038777-24-000006_ben-20231231.htm:18]**  | **78.0**  **[0000038777-24-000068_exhibit991q2fy24.htm:6]**  | **85.9**  **[0000038777-24-000115_ben-20240630.htm:24]**  | **113.8**  **[0000038777-24-000177_exhibit991q4fy24.htm:7]**  |
| Long-term Net Flows | **-10.9**  **[0000038777-23-000009_ben-20221231.htm:18]**  | **-3.7**  **[0000038777-23-000072_ben-20230331.htm:22]**  | **0.2**  **[0000038777-23-000106_ben-20230630.htm:23]**  | **-6.9**  **[0000038777-23-000143_exhibit991q4fy23.htm:2]** **[0000038777-23-000143_exhibit991q4fy23.htm:6]**  | **-5.0**  **[0000038777-24-000006_ben-20231231.htm:18]**  | **6.9**  **[0000038777-24-000069_ben-20240331.htm:23]**  | **-3.2**  **[0000038777-24-000115_ben-20240630.htm:24]**  | **-31.3**  **[0000038777-24-000177_exhibit991q4fy24.htm:2]**  |
| Cash Management Net Flows | **17.5**  **[0000038777-23-000009_ben-20221231.htm:18]**  | **-4.3**  **[0000038777-23-000072_ben-20230331.htm:22]**  | **-7.3**  **[0000038777-23-000106_ben-20230630.htm:23]**  | **-1.6**  **[0000038777-23-000143_exhibit991q4fy23.htm:2]** **[0000038777-23-000143_exhibit991q4fy23.htm:6]**  | **4.7**  **[0000038777-24-000006_ben-20231231.htm:18]**  | **-4.8**  **[0000038777-24-000069_ben-20240331.htm:23]**  | **3.0**  **[0000038777-24-000115_ben-20240630.htm:24]**  | **-0.2**  **[0000038777-24-000177_exhibit991q4fy24.htm:2]**  |
| Total Net Flows | **6.6**  **[BEN_3226111_0]**  | **-8.0**  **[BEN_3248463_0]**  | **-7.1**  **[0000038777-23-000106_ben-20230630.htm:23]**  | **-8.5**  **[0000038777-23-000143_exhibit991q4fy23.htm:2]**  | **-0.3**  **[0000038777-24-000005_exhibit991q1fy24.htm:5]**  | **2.1**  **[0000038777-24-000068_exhibit991q2fy24.htm:1]**  | **-0.2**  **[0000038777-24-000115_ben-20240630.htm:24]**  | **-31.5**  **[0000038777-24-000177_exhibit991q4fy24.htm:7]**  |
| Net Market Change, Distributions, and Other | **48.8**  **[0000038777-23-000009_ben-20221231.htm:19]**  | **42.4**  **[0000038777-23-000072_ben-20230331.htm:22]**  | **16.5**  **[0000038777-23-000106_ben-20230630.htm:23]**  | **-48.8**  **[0000038777-23-000143_exhibit991q4fy23.htm:2]**  | **81.6**  **[0000038777-24-000006_ben-20231231.htm:18]**  | **38.8**  **[0000038777-24-000069_ben-20240331.htm:23]**  | **2.1**  **[0000038777-24-000115_ben-20240630.htm:24]**  | **63.5**  **[0000038777-24-000177_exhibit991q4fy24.htm:2]**  |
| Ending AUM | **1,387.7**  **[0000038777-23-000009_ben-20221231.htm:18]**  | **1,422.1**  **[0000038777-23-000072_ben-20230331.htm:22]**  | **1,431.5**  **[0000038777-23-000106_ben-20230630.htm:23]**  | **1,374.2**  **[0000038777-23-000143_exhibit991q4fy23.htm:2]** **[0000038777-23-000143_exhibit991q4fy23.htm:6]**  | **1,455.5**  **[0000038777-24-000006_ben-20231231.htm:18]**  | **1,644.7**  **[0000038777-24-000069_ben-20240331.htm:23]**  | **1,646.6**  **[0000038777-24-000115_ben-20240630.htm:24]**  | **1,678.6**  **[0000038777-24-000177_exhibit991q4fy24.htm:2]**  |
| **% of Mutual Fund AUM in Top Two Peer Group Quartiles** | | | | | | | | |
| Mutual Fund AUM 1-Year | **57%**  **[0000038777-23-000009_ben-20221231.htm:22]**  | **67%**  **[0000038777-23-000072_ben-20230331.htm:25]**  | **44%**  **[0000038777-23-000106_ben-20230630.htm:26]**  | **48%**  **[0000038777-23-000169_ben-20230930.htm:62]**  | **51%**  **[0000038777-24-000006_ben-20231231.htm:20]**  | **51%**  **[0000038777-24-000069_ben-20240331.htm:27]**  | **48%**  **[0000038777-24-000115_ben-20240630.htm:28]**  | **55%**  **[0000038777-24-000206_ben-20240930.htm:65]**  |
| Mutual Fund AUM 3-Year | **56%**  **[0000038777-23-000009_ben-20221231.htm:22]**  | **53%**  **[0000038777-23-000072_ben-20230331.htm:25]**  | **58%**  **[0000038777-23-000106_ben-20230630.htm:26]**  | **49%**  **[0000038777-23-000169_ben-20230930.htm:62]**  | **50%**  **[0000038777-24-000006_ben-20231231.htm:20]**  | **60%**  **[0000038777-24-000069_ben-20240331.htm:27]**  | **60%**  **[0000038777-24-000115_ben-20240630.htm:28]**  | **64%**  **[0000038777-24-000206_ben-20240930.htm:65]**  |
| Mutual Fund AUM 5-Year | **57%**  **[0000038777-23-000009_ben-20221231.htm:22]**  | **63%**  **[0000038777-23-000072_ben-20230331.htm:25]**  | **66%**  **[0000038777-23-000106_ben-20230630.htm:26]**  | **54%**  **[0000038777-23-000169_ben-20230930.htm:62]**  | **37%**  **[0000038777-24-000006_ben-20231231.htm:20]**  | **44%**  **[0000038777-24-000069_ben-20240331.htm:27]**  | **43%**  **[0000038777-24-000115_ben-20240630.htm:28]**  | **43%**  **[0000038777-24-000206_ben-20240930.htm:65]**  |
| Mutual Fund AUM 10-Year | **55%**  **[0000038777-23-000009_ben-20221231.htm:22]**  | **56%**  **[0000038777-23-000072_ben-20230331.htm:25]**  | **51%**  **[0000038777-23-000106_ben-20230630.htm:26]**  | **52%**  **[0000038777-23-000169_ben-20230930.htm:62]**  | **54%**  **[0000038777-24-000006_ben-20231231.htm:20]**  | **56%**  **[0000038777-24-000069_ben-20240331.htm:27]**  | **56%**  **[0000038777-24-000115_ben-20240630.htm:28]**  | **53%**  **[0000038777-24-000206_ben-20240930.htm:65]**  |
| **% of Strategy Composite AUM Exceeding Benchmark** | | | | | | | | |
| Strategy Composite AUM 1-Year | **52%**  **[0000038777-23-000009_ben-20221231.htm:22]**  | **64%**  **[BEN_3248463_1]**  | **63%**  **[0000038777-23-000106_ben-20230630.htm:26]**  | **61%**  **[0000038777-23-000169_ben-20230930.htm:62]**  | **61%**  **[BEN_3371051_2]**  | **62%**  **[BEN_3381348_3]**  | **53%**  **[0000038777-24-000115_ben-20240630.htm:28]**  | **56%**  **[0000038777-24-000206_ben-20240930.htm:65]**  |

5bae9bb43c42fb7305a3aab89b1c810ac8d4deb900d8b5b782750b744408f561

3100c5e082b506a8a79ac06a189e388b406e74db2ca2f44284e52f26c1ad26c0

e62b25ce7b6d2761cb53de06defef114996cd4712ce5a2d5f574518436e83b80

56ee1976082cbd0c0ac4d72fb937c1a8a2000659c48bb537c2e34d71a86ed65c

| Metric (USD Million) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Investment Management Fees | $1,631.8  **[0000038777-23-000007_exhibit991q1fy23.htm:4]**  | $1,573.3  **[0000038777-23-000071_exhibit991q2fy23.htm:4]**  | $1,613.4  **[0000038777-23-000105_exhibit991q3fy23.htm:4]**  | $1,634.4  **[0000038777-23-000143_exhibit991q4fy23.htm:5]**  | $1,652.2  **[0000038777-24-000005_exhibit991q1fy24.htm:4]**  | $1,713.9  **[0000038777-24-000069_ben-20240331.htm:1]**  | $1,689.9  **[0000038777-24-000112_exhibit991q3fy24.htm:4]**  | $1,766.2  **[0000038777-24-000177_exhibit991q4fy24.htm:5]**  |
| Sales and Distribution Fees | $291.9  **[0000038777-23-000007_exhibit991q1fy23.htm:4]**  | $301.4  **[0000038777-23-000071_exhibit991q2fy23.htm:4]**  | $304.0  **[0000038777-23-000105_exhibit991q3fy23.htm:4]**  | $306.4  **[0000038777-23-000143_exhibit991q4fy23.htm:5]**  | $296.4  **[0000038777-24-000005_exhibit991q1fy24.htm:4]**  | $358.3  **[0000038777-24-000069_ben-20240331.htm:1]**  | $358.3  **[0000038777-24-000112_exhibit991q3fy24.htm:4]**  | $368.0  **[0000038777-24-000177_exhibit991q4fy24.htm:5]**  |
| Shareholder Servicing Fees | $33.4  **[0000038777-23-000007_exhibit991q1fy23.htm:4]**  | $43.3  **[0000038777-23-000071_exhibit991q2fy23.htm:4]**  | $38.8  **[0000038777-23-000105_exhibit991q3fy23.htm:4]**  | $37.2  **[0000038777-23-000143_exhibit991q4fy23.htm:5]**  | $32.5  **[0000038777-24-000005_exhibit991q1fy24.htm:4]**  | $68.0  **[0000038777-24-000069_ben-20240331.htm:1]**  | $61.8  **[0000038777-24-000112_exhibit991q3fy24.htm:4]**  | $67.0  **[0000038777-24-000177_exhibit991q4fy24.htm:5]**  |
| Other Revenues | $10.0  **[0000038777-23-000007_exhibit991q1fy23.htm:4]**  | $9.2  **[0000038777-23-000071_exhibit991q2fy23.htm:4]**  | $12.8  **[0000038777-23-000105_exhibit991q3fy23.htm:4]**  | $8.1  **[0000038777-23-000143_exhibit991q4fy23.htm:5]**  | $10.0  **[0000038777-24-000005_exhibit991q1fy24.htm:4]**  | $12.6  **[0000038777-24-000069_ben-20240331.htm:1]**  | $12.9  **[0000038777-24-000112_exhibit991q3fy24.htm:4]**  | $10.0  **[0000038777-24-000177_exhibit991q4fy24.htm:5]**  |
| Total Operating Revenues | $1,967.1  **[0000038777-23-000007_exhibit991q1fy23.htm:4]**  | $1,927.2  **[0000038777-23-000071_exhibit991q2fy23.htm:4]**  | $1,969.0  **[0000038777-23-000105_exhibit991q3fy23.htm:4]**  | $1,986.1  **[0000038777-23-000143_exhibit991q4fy23.htm:5]**  | $1,991.1  **[0000038777-24-000005_exhibit991q1fy24.htm:4]**  | $2,152.8  **[0000038777-24-000069_ben-20240331.htm:1]**  | $2,122.9  **[0000038777-24-000112_exhibit991q3fy24.htm:4]**  | $2,211.2  **[0000038777-24-000177_exhibit991q4fy24.htm:5]**  |

2209f30ec571a2e69f02b4651af31b01b5465fe7f879b05610cd5178e2ac3062

53b819d3aae7de06ca004b7cd4fc19e2447f8b21ae62813bfa594f0f4d471800

| Metric (in million USD) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|-------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| United States           | 1,518.0  **[0000038777-23-000009_ben-20221231.htm:8]**  | 1,488.0  **[0000038777-23-000106_ben-20230630.htm:10]**  | 1,488.0  **[0000038777-23-000106_ben-20230630.htm:10]**  | 1,260.6  **[0000038777-24-000006_ben-20231231.htm:7]**  | 1,499.5  **[0000038777-24-000006_ben-20231231.htm:7]**  | 1,610.6  **[0000038777-24-000069_ben-20240331.htm:10]**  | 1,596.4  **[0000038777-24-000115_ben-20240630.htm:11]**  | 1,273.7  **[0000038777-24-000115_ben-20240630.htm:11]**  |
| Luxembourg              | 257.9  **[0000038777-23-000009_ben-20221231.htm:8]**  | 276.2  **[0000038777-23-000106_ben-20230630.htm:10]**  | 276.2  **[0000038777-23-000106_ben-20230630.htm:10]**  | 191.7  **[0000038777-24-000006_ben-20231231.htm:7]**  | 276.3  **[0000038777-24-000006_ben-20231231.htm:7]**  | 317.4  **[0000038777-24-000069_ben-20240331.htm:10]**  | 311.0  **[0000038777-24-000115_ben-20240630.htm:11]**  | 216.2  **[0000038777-24-000115_ben-20240630.htm:11]**  |
| Asia-Pacific            | 73.3  **[0000038777-23-000009_ben-20221231.htm:8]**  | 70.3  **[0000038777-23-000106_ben-20230630.htm:10]**  | 70.3  **[0000038777-23-000106_ben-20230630.htm:10]**  | 68.5  **[0000038777-24-000006_ben-20231231.htm:7]**  | 73.9  **[0000038777-24-000006_ben-20231231.htm:7]**  | 78.6  **[0000038777-24-000069_ben-20240331.htm:10]**  | 77.2  **[0000038777-24-000115_ben-20240630.htm:11]**  | 71.8  **[0000038777-24-000115_ben-20240630.htm:11]**  |
| Americas Excluding US   | 62.1  **[0000038777-23-000009_ben-20221231.htm:8]**  | 63.9  **[0000038777-23-000106_ben-20230630.htm:10]**  | 63.9  **[0000038777-23-000106_ben-20230630.htm:10]**  | 51.5  **[0000038777-24-000006_ben-20231231.htm:7]**  | 61.2  **[0000038777-24-000006_ben-20231231.htm:7]**  | 73.1  **[0000038777-24-000069_ben-20240331.htm:10]**  | 69.2  **[0000038777-24-000115_ben-20240630.htm:11]**  | 59.1  **[0000038777-24-000115_ben-20240630.htm:11]**  |
| EMEA Excluding Luxembourg| 55.8  **[0000038777-23-000009_ben-20221231.htm:8]**  | 70.6  **[0000038777-23-000106_ben-20230630.htm:10]**  | 70.6  **[0000038777-23-000106_ben-20230630.htm:10]**  | 79.9  **[0000038777-24-000006_ben-20231231.htm:7]**  | 80.2  **[0000038777-24-000006_ben-20231231.htm:7]**  | 73.1  **[0000038777-24-000069_ben-20240331.htm:10]**  | 69.1  **[0000038777-24-000115_ben-20240630.htm:11]**  | 69.1  **[0000038777-24-000115_ben-20240630.htm:11]**  |
| Total Revenue           | 1,967.1  **[0000038777-23-000009_ben-20221231.htm:8]**  | 1,969.0  **[0000038777-23-000106_ben-20230630.htm:10]**  | 1,969.0  **[0000038777-23-000106_ben-20230630.htm:10]**  | 1,991.1  **[0000038777-24-000006_ben-20231231.htm:7]**  | 1,991.1  **[0000038777-24-000006_ben-20231231.htm:7]**  | 2,152.8  **[0000038777-24-000069_ben-20240331.htm:10]**  | 2,122.9  **[0000038777-24-000115_ben-20240630.htm:11]**  | 2,122.9  **[0000038777-24-000115_ben-20240630.htm:11]**  |

291b0574f8ce67f9b2fa956dea8e8e05c3ec9930a3ac1caa4320107326db4769

Franklin Resources, Inc., operating under the Franklin Templeton brand, is a global investment management organization. The company offers a diverse range of investment products and services, including sponsored funds, institutional and high-net-worth separate accounts, retail separately managed account programs, sub-advised products, and other investment vehicles **[0000038777-24-000206_ben-20240930.htm:59]** **[0000038777-24-000115_ben-20240630.htm:21]** **[0000038777-24-000206_ben-20240930.htm:5]**. These products span various asset classes such as equity, fixed income, alternative, multi-asset, and cash management solutions **[0000038777-24-000206_ben-20240930.htm:59]** **[0000038777-24-000115_ben-20240630.htm:21]** **[0000038777-24-000206_ben-20240930.htm:5]**. The company's revenues are primarily derived from investment management fees, which are based on a percentage of assets under management (AUM) **[0000038777-24-000206_ben-20240930.htm:118]**.

1. **Investment Management Fees** - Generates revenue through fees based on a percentage of assets under management, which are the largest contributor to the company's operating revenues **[0000038777-24-000206_ben-20240930.htm:118]**.
2. **Sponsored Funds** - Offers a variety of funds that are managed and marketed under the Franklin Templeton brand and other subsidiary names **[0000038777-24-000206_ben-20240930.htm:59]** **[0000038777-24-000115_ben-20240630.htm:21]** **[0000038777-24-000206_ben-20240930.htm:5]**.
3. **Institutional and High-Net-Worth Separate Accounts** - Provides tailored investment solutions for institutional clients and high-net-worth individuals **[0000038777-24-000206_ben-20240930.htm:59]** **[0000038777-24-000115_ben-20240630.htm:21]** **[0000038777-24-000206_ben-20240930.htm:5]**.
4. **Retail Separately Managed Account Programs** - Delivers personalized investment management services for retail investors **[0000038777-24-000206_ben-20240930.htm:59]** **[0000038777-24-000115_ben-20240630.htm:21]** **[0000038777-24-000206_ben-20240930.htm:5]**.
5. **Sub-Advised Products** - Supplies investment management services to products sponsored by other companies, which may be sold under those companies' brand names or on a co-branded basis **[0000038777-24-000206_ben-20240930.htm:59]** **[0000038777-24-000115_ben-20240630.htm:21]**.
6. **Sales and Distribution Fees** - Earns revenue from fees associated with the distribution and sale of investment products **[0000038777-24-000206_ben-20240930.htm:118]**.
7. **Shareholder Servicing Fees** - Collects fees for providing services to shareholders of the investment products **[0000038777-24-000206_ben-20240930.htm:118]**.
8. **Other Investment Vehicles** - Includes various other investment solutions across different asset classes **[0000038777-24-000206_ben-20240930.htm:59]** **[0000038777-24-000115_ben-20240630.htm:21]** **[0000038777-24-000206_ben-20240930.htm:5]**.

991c04f5b86933ecf4e069cdabba650ead87b6c0347dc8eee82d2e0cc6ddfeef

1. With the ongoing investigations into Western Asset and the significant net outflows of $37 billion in the fourth quarter and $49 billion for the fiscal year  **[BEN_3405593_5]** , how does management plan to mitigate the impact on financial performance and regain client confidence in this segment?

2. You have set a goal to fundraise at least $100 billion across private markets over the next five years  **[BEN_3405593_2]** ; given that you raised $14.8 billion in fiscal year 2024  **[BEN_3405593_2]** , what specific strategies will you implement to achieve this ambitious target amidst market uncertainties in real estate and private credit?

3. Considering your aim to scale ETF AUM by 3x and Canvas assets by 5x over the next five years  **[BEN_3405593_2]** , what are the key drivers you anticipate will contribute to this growth, and how will you differentiate your offerings in a highly competitive ETF market?

4. With significant investments in AI, blockchain, and digital assets as strategic priorities  **[BEN_3405593_3]** , how are you balancing these investments with disciplined expense management, and how do you plan to generate tangible returns from these technologies?

5. Despite improvements in mutual fund investment performance in the 1-, 3-, and 10-year periods  **[BEN_3405593_5]** , the company experienced long-term net outflows of $32.6 billion for the fiscal year  **[BEN_3405593_5]** ; what are the underlying factors contributing to these outflows, and what measures are you taking to reverse this trend and achieve sustainable organic growth?

53f65db5ab265a52c101fae72ef4bdd35e82e33d7d73388ec55e69ae65d9de4b

### Q4 2024 Earnings Call
- **Issued Period:** Q4 2024
- **Guided Period:** Q1 2025
- **Guidance:**
  1. **Effective Fee Rate (EFR):** Mid-**37 basis points**  **[BEN_3405593_8]** .
  2. **Compensation and Benefits:** **$860 million**, assuming **$50 million** of performance fees  **[BEN_3405593_8]** .
  3. **Information Systems & Technology (IS&T):** **$155 million to $160 million**  **[BEN_3405593_8]** .
  4. **Occupancy:** **$78 million to $80 million**  **[BEN_3405593_8]** .
  5. **General & Administrative (G&A) Expense:** **$180 million**  **[BEN_3405593_8]** .
  6. **GAAP Tax Rate:** **24% to 26%** for fiscal 2025  **[BEN_3405593_8]** .

### Q3 2024 Earnings Call
- **Issued Period:** Q3 2024
- **Guided Period:** Q4 2024
- **Guidance:**
  1. **Effective Fee Rate:** **37.5 basis points**  **[BEN_3394687_5]** .
  2. **Compensation and Benefits:** **$825 million**, assuming **$50 million** of performance fees  **[BEN_3394687_5]** .
  3. **Information Systems and Technology (IS&T):** **$150 million to $155 million**  **[BEN_3394687_5]** .
  4. **Occupancy:** **$77 million to $78 million**  **[BEN_3394687_5]** .
  5. **General and Administrative (G&A):** **$175 million to $180 million**  **[BEN_3394687_5]** .

### Q2 2024 Earnings Call
- **Issued Period:** Q2 2024
- **Guided Period:** FY 2025
- **Guidance:**
  1. **Effective Fee Rate (EFR):** High **37 to 38 basis points**  **[BEN_3381348_11]** .
  2. **Expenses:** **$4.6 billion to $4.65 billion** annually  **[BEN_3381348_10]** .
  3. **Compensation and Benefits:** **$820 million** for Q3 2024  **[BEN_3381348_17]** .
  4. **Information Systems & Technology (IS&T):** **$150 million**  **[BEN_3381348_17]** .
  5. **Occupancy:** **$80 million**  **[BEN_3381348_17]** .
  6. **General and Administrative (G&A):** **$175 million to $180 million**  **[BEN_3381348_17]** .
  7. **Institutional Pipeline Fee Rate:** Mid- to high **20s basis points**  **[BEN_3381348_15]** .

### Q1 2024 Earnings Call
- **Issued Period:** Q1 2024
- **Guided Period:** Q2 2024 and FY 2024
- **Guidance:**
  1. **Effective Fee Rate (EFR):** High **38 basis points** for Q2 2024  **[BEN_3371051_4]** .
  2. **Compensation and Benefits:** **$815 million** for Q2 2024  **[BEN_3371051_4]** .
  3. **Information Systems and Technology:** **$155 million** for Q2 2024  **[BEN_3371051_4]** .
  4. **Occupancy:** **$80 million** for Q2 2024  **[BEN_3371051_4]** .
  5. **General and Administrative (G&A) Expenses:** **$175 million** for Q2 2024  **[BEN_3371051_4]** .
  6. **Total Adjusted Operating Expenses for FY 2024:** **$4.55 billion to $4.6 billion**  **[BEN_3371051_4]** .
  7. **Putnam's Contribution:** **$150 million to $170 million** to operating income for FY 2025  **[BEN_3371051_5]** .

9e1f5b60e14dfee1402ad02f7ffc992fdd6027b016dc30796b78d7865e62201f

United States

Luxembourg

Asia-Pacific

Americas Excluding US

- The Bahamas

- Canada

EMEA Excluding Luxembourg

- Europe, the Middle East, and Africa

- Latin America

- Not Earned From Contracts With Customers

Total Revenue

37d96fe274a013e2daf57678df7114933c9db4dae6dd13e09ea952055f6c36a4

**AUM by Asset Class (USD Billion)**

Equity

Fixed Income

Alternative

Multi-Asset

Cash Management

**Components of Change in AUM (USD Billion)**

Beginning AUM

Long-term Inflows

Long-term Outflows

Long-term Net Flows

Cash Management Net Flows

Net Market Change, Distributions, and Other

Ending AUM

**% of Mutual Fund AUM in Top Two Peer Group Quartiles**

Mutual Fund AUM 1-Year

Mutual Fund AUM 3-Year

Mutual Fund AUM 5-Year

Mutual Fund AUM 10-Year

**% of Strategy Composite AUM Exceeding Benchmark**

Strategy Composite AUM 1-Year

58ea4e2836e96a6300c515395e757f89b6bed679c5e6510d8e3f09f7c71d560c

- Investment management companies: Compete with Franklin Resources in offering a wide range of financial and investment management services and products  **[0000038777-24-000206_ben-20240930.htm:36]** **[0000038777-24-000206_ben-20240930.htm:14]** .
- Securities brokerage and investment banking firms: Compete with Franklin Resources in offering financial services and products  **[0000038777-24-000206_ben-20240930.htm:36]** **[0000038777-24-000206_ben-20240930.htm:14]** .
- Insurance companies: Compete with Franklin Resources in offering financial services and products  **[0000038777-24-000206_ben-20240930.htm:36]** **[0000038777-24-000206_ben-20240930.htm:14]** .
- Banks: Compete with Franklin Resources in offering financial services and products  **[0000038777-24-000206_ben-20240930.htm:36]** **[0000038777-24-000206_ben-20240930.htm:14]** .
- Hedge fund firms: Compete with Franklin Resources in offering financial services and products  **[0000038777-24-000206_ben-20240930.htm:36]** **[0000038777-24-000206_ben-20240930.htm:14]** .
- Other financial management institutions: Compete with Franklin Resources in offering financial services and products  **[0000038777-24-000206_ben-20240930.htm:36]** **[0000038777-24-000206_ben-20240930.htm:14]** .
- Competing securities broker-dealers and banks: These entities distribute and sell their own proprietary funds and products, which could limit the distribution of Franklin Resources' products  **[0000038777-24-000206_ben-20240930.htm:36]** .

14b590e8538b9a5b3ce34abc3ff251c1061e95a307adf4368a7ce397ef66ca21

Investment Management Fees

Sales and Distribution Fees

Shareholder Servicing Fees

Other

Other Revenues

Total Operating Revenues

a967b93d5649408ffdeb985ed2d7c8ef670b9b7a1c74687713125c943eb73ee8

| Name                  | Position                                                                 | Start Date | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Jennifer M. Johnson   | President and Chief Executive Officer                                    | N/A        | Jennifer M. Johnson is the President, Chief Executive Officer, and Director of Franklin Resources, Inc., and also serves as a Director at Thermo Fisher Scientific Inc.  **[0000038777-24-000050_frkbsp23in.htm:5]** **[0000038777-24-000056_clar24a1.htm:5]** **[0000038777-24-000214_frkbsp24a19.htm:5]** **[0000038777-24-000141_frkbsp24a14.htm:5]** **[0000038777-24-000106_frkbsp24a12.htm:5]** **[0000038777-24-000221_frkbdc24a1.htm:6]** **[0000038777-24-000095_frkbsp24a8.htm:5]** **[0000038777-24-000178_frkbsp24a18.htm:5]** **[0000038777-24-000216_frkbsp24a20.htm:5]** **[0000038777-24-000145_frkbsp24a16.htm:5]** **[0000038777-24-000143_frkbsp24a15.htm:5]** **[0000038777-24-000104_frkbsp24a11.htm:5]** **[0000038777-24-000102_frkbsp24a10.htm:5]** **[0000038777-24-000097_frkbsp24a9.htm:5]** **[0000038777-24-000116_frkbsp24a13.htm:5]** **[0000038777-24-000109_frkbdc24in.htm:6]** .                  |
| Gregory E. Johnson    | Executive Chairman and Chairman of the Board                             | N/A        | Gregory E. Johnson holds the positions of Executive Chairman and Chairman of the Board at Franklin Resources, Inc.  **[0000038777-24-000098_clar24a4.htm:5]** **[0000038777-24-000106_frkbsp24a12.htm:5]** **[0000038777-24-000142_clar24a7.htm:5]** **[0000038777-24-000141_frkbsp24a14.htm:5]** **[0000038777-24-000095_frkbsp24a8.htm:5]** **[0000038777-24-000144_clar24a8.htm:5]** **[0000038777-24-000116_frkbsp24a13.htm:5]** **[0000038777-24-000137_clar24a6.htm:5]** **[0000038777-24-000221_frkbdc24a1.htm:6]** **[0000038777-24-000207_clar24a10.htm:5]** **[0000038777-24-000216_frkbsp24a20.htm:5]** **[0000038777-24-000107_clar24a5.htm:5]** **[0000038777-24-000143_frkbsp24a15.htm:5]** **[0000038777-24-000178_frkbsp24a18.htm:5]** **[0000038777-24-000149_clar24a9.htm:5]** **[0000038777-24-000145_frkbsp24a16.htm:5]** .                                                                  |
| Matthew Nicholls      | Executive Vice President, Chief Financial Officer, and Chief Operating Officer | N/A        | Matthew Nicholls serves as the Executive Vice President, Chief Financial Officer, and Chief Operating Officer at Franklin Resources, Inc.  **[0000038777-24-000050_frkbsp23in.htm:5]** **[0000038777-24-000056_clar24a1.htm:5]** **[0000038777-24-000104_frkbsp24a11.htm:5]** **[0000038777-24-000097_frkbsp24a9.htm:5]** **[0000038777-24-000102_frkbsp24a10.htm:5]** **[0000038777-24-000214_frkbsp24a19.htm:5]** **[0000038777-24-000143_frkbsp24a15.htm:5]** **[0000038777-24-000116_frkbsp24a13.htm:5]** **[0000038777-24-000178_frkbsp24a18.htm:5]** **[0000038777-24-000145_frkbsp24a16.htm:5]** **[0000038777-24-000221_frkbdc24a1.htm:6]** **[0000038777-24-000141_frkbsp24a14.htm:5]** **[0000038777-24-000106_frkbsp24a12.htm:5]** **[0000038777-24-000216_frkbsp24a20.htm:5]** **[0000038777-24-000095_frkbsp24a8.htm:5]** **[0000038777-24-000150_frkbsp24a17.htm:5]** .                                               |
| Terrence J. Murphy    | Executive Vice President and Head of Public Markets                      | N/A        | Terrence J. Murphy serves as the Executive Vice President and Head of Public Markets at Franklin Resources, Inc.  **[0000038777-24-000050_frkbsp23in.htm:5]** **[0000038777-24-000221_frkbdc24a1.htm:6]** **[0000038777-24-000116_frkbsp24a13.htm:5]** **[0000038777-24-000104_frkbsp24a11.htm:5]** **[0000038777-24-000095_frkbsp24a8.htm:5]** **[0000038777-24-000102_frkbsp24a10.htm:5]** **[0000038777-24-000097_frkbsp24a9.htm:5]** **[0000038777-24-000214_frkbsp24a19.htm:5]** **[0000038777-24-000141_frkbsp24a14.htm:5]** **[0000038777-24-000106_frkbsp24a12.htm:5]** **[0000038777-24-000178_frkbsp24a18.htm:5]** **[0000038777-24-000145_frkbsp24a16.htm:5]** **[0000038777-24-000216_frkbsp24a20.htm:5]** **[0000038777-24-000143_frkbsp24a15.htm:5]** **[0000038777-24-000150_frkbsp24a17.htm:5]** **[0000038777-24-000109_frkbdc24in.htm:6]** .                                                                       |
| Adam B. Spector       | Executive Vice President and Head of Global Distribution                 | N/A        | Adam B. Spector serves as the Executive Vice President and Head of Global Distribution at Franklin Resources, Inc. with a business address at One Franklin Parkway, San Mateo, CA 94403-1906  **[0000038777-24-000050_frkbsp23in.htm:5]** .                                              |
| Alok Sethi            | Executive Vice President and Head of Global Operations                   | N/A        | Alok Sethi serves as Executive Vice President and Head of Global Operations at Franklin Resources, Inc. He is a citizen of India and his principal business address is at Franklin Resources, Inc. One Franklin Parkway, San Mateo, CA 94403-1906  **[0000038777-24-000050_frkbsp23in.htm:5]** **[0000038777-24-000054_frkbsp24a2.htm:4]** **[0000038777-24-000056_clar24a1.htm:5]** **[0000038777-24-000144_clar24a8.htm:5]** **[0000038777-24-000207_clar24a10.htm:5]** **[0000038777-24-000137_clar24a6.htm:5]** **[0000038777-24-000098_clar24a4.htm:5]** **[0000038777-24-000142_clar24a7.htm:5]** **[0000038777-24-000107_clar24a5.htm:5]** **[0000038777-24-000149_clar24a9.htm:5]** **[0000038777-24-000220_clar24a11.htm:5]** **[0000038777-24-000096_clar24a3.htm:5]** **[0000038777-24-000062_clar24a2.htm:5]** **[0000038777-24-000116_frkbsp24a13.htm:5]** **[0000038777-24-000145_frkbsp24a16.htm:5]** **[0000038777-24-000143_frkbsp24a15.htm:5]** . |
| Thomas C. Merchant    | Executive Vice President, General Counsel, and Secretary                 | N/A        | Thomas C. Merchant serves as the Executive Vice President, General Counsel, and Secretary at Franklin Resources, Inc.  **[0000038777-24-000050_frkbsp23in.htm:5]** **[0000038777-24-000056_clar24a1.htm:5]** **[0000038777-24-000098_clar24a4.htm:5]** **[0000038777-24-000207_clar24a10.htm:5]** **[0000038777-24-000142_clar24a7.htm:5]** **[0000038777-24-000137_clar24a6.htm:5]** **[0000038777-24-000220_clar24a11.htm:5]** **[0000038777-24-000149_clar24a9.htm:5]** **[0000038777-24-000144_clar24a8.htm:5]** **[0000038777-24-000107_clar24a5.htm:5]** **[0000038777-24-000141_frkbsp24a14.htm:5]** **[0000038777-24-000106_frkbsp24a12.htm:5]** **[0000038777-24-000095_frkbsp24a8.htm:5]** **[0000038777-24-000221_frkbdc24a1.htm:6]** **[0000038777-24-000214_frkbsp24a19.htm:5]** **[0000038777-24-000216_frkbsp24a20.htm:5]** .                                                                 |
| Gwen L. Shaneyfelt    | Executive Vice President                                                 | N/A        | Gwen L. Shaneyfelt serves as an Executive Vice President at Franklin Resources, Inc. with the principal business address at One Franklin Parkway, San Mateo, CA 94403-1906  **[0000038777-24-000144_clar24a8.htm:5]** .                                                                |
| Lindsey H. Oshita     | Chief Accounting Officer and Principal Accounting Officer                | N/A        | Lindsey H. Oshita serves as the Chief Accounting Officer and Principal Accounting Officer at Franklin Resources, Inc.                                                                                                                                  |

b5173c8ad1649cfafbb6b5de95fff878c06ef9ad96589a0f39bca184fe1d704f

**Quarterly guidance for Q1 2025:**
- **Effective Fee Rate (EFR)**: Mid-37 basis points  **[BEN_3405593_8]**  (no change from 37.5 basis points  **[BEN_3394687_5]** )  
- **Compensation & Benefits**: $860 million  **[BEN_3405593_8]**  (raised from $825 million  **[BEN_3394687_5]** )  
- **Information Systems & Technology (IS&T)**: $155 million to $160 million  **[BEN_3405593_8]**  (raised from $150 million to $155 million  **[BEN_3394687_5]** )  
- **Occupancy**: $78 million to $80 million  **[BEN_3405593_8]**  (raised from $77 million to $78 million  **[BEN_3394687_5]** )  
- **General & Administrative (G&A) Expense**: $180 million  **[BEN_3405593_8]**  (no change from prior guidance of $175 million to $180 million  **[BEN_3394687_5]** )

**Annual guidance for Fiscal 2025:**
- **GAAP Tax Rate**: 24% to 26%  **[BEN_3405593_8]**  (no prior guidance)

5fed15c174c8ccde139c16ffa24951f7830ada5c36816cbc738be26133efe3cb

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | December 2023  **[0000038777-24-000206_ben-20240930.htm:57]** **[0000038777-24-000206_ben-20240930.htm:79]**  |
| End Date/Duration        | No expiration date  **[0000038777-24-000206_ben-20240930.htm:57]** **[0000038777-24-000206_ben-20240930.htm:79]**  |
| Total additional amount  | 27.2 million shares  **[0000038777-24-000206_ben-20240930.htm:79]**  |
| Remaining authorization amount | 29.9 million shares  **[0000038777-24-000206_ben-20240930.htm:79]**  |
| Details                  | Manage equity capital to maximize shareholder value; offset dilution from stock-based compensation; repurchase shares opportunistically  **[0000038777-24-000006_ben-20231231.htm:31]** **[0000038777-24-000115_ben-20240630.htm:40]** **[0000038777-24-000069_ben-20240331.htm:39]** **[0000038777-23-000106_ben-20230630.htm:38]** **[0000038777-23-000072_ben-20230331.htm:38]** **[0000038777-23-000009_ben-20221231.htm:34]** **[0000038777-24-000206_ben-20240930.htm:79]** **[0000038777-23-000169_ben-20230930.htm:78]** **[0000038777-22-000198_ben-20220930.htm:76]**  |

293369c06dd7b44e7543258ff3ec282d49ad0e88efc533eb44d285f619c2e02b

cc8abc207d8a82ce173d5fdc1a9cda682017fa4923675bb4ac71eca0d0b73848

- Total Revenue: $2,251.6 million (+13% YoY)  **[0000038777-25-000016_exhibit991q1fy25.htm:3]** **[0000038777-25-000016_exhibit991q1fy25.htm:4]** **[0000038777-25-000016_exhibit991q1fy25.htm:2]**   
- Investment Management Fees: $1,799.3 million (+9% YoY)  **[0000038777-24-000006_ben-20231231.htm:1]** **[0000038777-25-000016_exhibit991q1fy25.htm:4]**   
- Sales and Distribution Fees: $375.5 million (+27% YoY)  **[0000038777-24-000006_ben-20231231.htm:1]** **[0000038777-25-000016_exhibit991q1fy25.htm:4]**   
- Shareholder Servicing Fees: $63.5 million (+**95%** YoY)  **[0000038777-24-000006_ben-20231231.htm:1]** **[0000038777-25-000016_exhibit991q1fy25.htm:4]**   
- Other: $13.3 million (+33% YoY)  **[0000038777-24-000006_ben-20231231.htm:1]** **[0000038777-25-000016_exhibit991q1fy25.htm:4]**   
- Operating Income (EBIT): $219.0 million (+6% YoY)  **[0000038777-25-000016_exhibit991q1fy25.htm:3]** **[0000038777-25-000016_exhibit991q1fy25.htm:4]** **[0000038777-25-000016_exhibit991q1fy25.htm:2]**   
- Net Income: $163.6 million (-**35%** YoY)  **[0000038777-25-000016_exhibit991q1fy25.htm:3]** **[0000038777-25-000016_exhibit991q1fy25.htm:4]** **[0000038777-25-000016_exhibit991q1fy25.htm:2]**   
- EPS (Basic & Diluted): $0.29 (-**42%** YoY)  **[0000038777-25-000016_exhibit991q1fy25.htm:3]** **[0000038777-25-000016_exhibit991q1fy25.htm:4]** **[0000038777-25-000016_exhibit991q1fy25.htm:2]**   
- Share Repurchases: $5.8 million (-**90%** YoY)  **[0000038777-24-000006_ben-20231231.htm:5]** **[0000038777-25-000016_exhibit991q1fy25.htm:2]**   
- Cash and Cash Equivalents: $5,200 million (+56% YoY)  **[0000038777-25-000016_exhibit991q1fy25.htm:2]** **[0000038777-24-000006_ben-20231231.htm:3]**   

65fb5a5fe099e9b42c4a25c54845b4748a44c4b7b2e72760c9694dff37b419da

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 1974  **[0000038777-24-000206_ben-20240930.htm:99]**    | Present  | Current auditor   |

94e5df802add77a066647b2825ea5cc4bc36116cd4830f6cc376500b1d659aa2

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Operating Revenue: $2,211.2 million, up **~11%** YoY from $1,986.1 million.  **[0000038777-24-000206_ben-20240930.htm:100]** **[0000038777-23-000169_ben-20230930.htm:94]**   
- Investment Management Fees: $1,766.2 million, up ~8% YoY from $1,634.4 million.  **[0000038777-24-000206_ben-20240930.htm:100]** **[0000038777-23-000169_ben-20230930.htm:94]** **[0000038777-23-000169_ben-20230930.htm:125]**   
- Sales and Distribution Fees: $368 million, up **20%** YoY from $306.4 million.  **[0000038777-24-000206_ben-20240930.htm:100]** **[0000038777-23-000169_ben-20230930.htm:94]** **[0000038777-23-000169_ben-20230930.htm:125]**   
- Shareholder Servicing Fees: $67 million, up **80%** YoY from $37.2 million.  **[0000038777-24-000206_ben-20240930.htm:100]** **[0000038777-23-000169_ben-20230930.htm:94]** **[0000038777-23-000169_ben-20230930.htm:125]**   
- Other: $1 million, down **-88%** YoY from $8.1 million.  **[0000038777-24-000206_ben-20240930.htm:100]** **[0000038777-23-000169_ben-20230930.htm:94]** **[0000038777-23-000169_ben-20230930.htm:125]**   

- United States: $1,651.3 million, up **~14%** YoY from $1,453.5 million.  **[0000038777-24-000206_ben-20240930.htm:118]** **[0000038777-23-000169_ben-20230930.htm:110]**   
- EMEA (excluding Luxembourg): $83.4 million, up **~16%** YoY from $71.7 million.  **[0000038777-24-000206_ben-20240930.htm:118]** **[0000038777-23-000169_ben-20230930.htm:110]**   

- Operating Income (EBIT): -$150.7 million, a **~-145%** YoY swing from $338.3 million.  **[0000038777-24-000206_ben-20240930.htm:100]** **[0000038777-23-000169_ben-20230930.htm:94]**   
- Net Income: -$84.7 million, a **~-124%** YoY swing from $348.5 million.  **[0000038777-24-000206_ben-20240930.htm:100]** **[0000038777-23-000169_ben-20230930.htm:94]**   
- EPS (Diluted): -$0.18, a **~-131%** YoY swing from $0.58.  **[0000038777-24-000206_ben-20240930.htm:100]** **[0000038777-23-000169_ben-20230930.htm:94]**   

590bd33d45da9aa9449c1a106f45aead5c6b2e1be62d467a53813ccb87349c77

| Year       | Amount Due (Millions) | Debt Type                          | Interest Rate (%)       | % of Total Debt                                                                 |
|------------|------------------------|------------------------------------|-------------------------|--------------------------------------------------------------------------------|
| 2025 (March) | 400.0 **[0000038777-25-000017_ben-20241231.htm:30]**         | Senior Notes                      | 2.850 **[0000038777-25-000017_ben-20241231.htm:30]**           | 3.5% = (400.0 / 11,831.1) * 100 **[0000038777-25-000017_ben-20241231.htm:3]** **[0000038777-25-000017_ben-20241231.htm:11]** **[0000038777-25-000017_ben-20241231.htm:30]**                       |
| 2025 (Remainder of Fiscal Year) | 120.1 **[0000038777-25-000017_ben-20241231.htm:11]**         | CLO Debt                          | 2.39 - 13.68 (Weighted Avg: 7.30) **[0000038777-25-000017_ben-20241231.htm:11]** | 1.0% = (120.1 / 11,831.1) * 100 **[0000038777-25-000017_ben-20241231.htm:3]** **[0000038777-25-000017_ben-20241231.htm:11]**                               |
| Thereafter | 8,935.2 **[0000038777-25-000017_ben-20241231.htm:11]**        | CLO Debt                          | 2.39 - 13.68 (Weighted Avg: 7.30) **[0000038777-25-000017_ben-20241231.htm:11]** | 75.5% = (8,935.2 / 11,831.1) * 100 **[0000038777-25-000017_ben-20241231.htm:3]** **[0000038777-25-000017_ben-20241231.htm:11]**                            |
| Not Specified | 1,000.0 **[0000038777-25-000017_ben-20241231.htm:30]**       | Legg Mason Senior Notes           | 4.750 - 5.625 **[0000038777-25-000017_ben-20241231.htm:30]**    | 8.5% = (1,000.0 / 11,831.1) * 100 **[0000038777-25-000017_ben-20241231.htm:3]** **[0000038777-25-000017_ben-20241231.htm:30]**                              |
| Not Specified | 1,375.8 **[0000038777-25-000017_ben-20241231.htm:3]**       | Other Debt (Excluding CLOs)       | 1.600 - 2.950 **[0000038777-25-000017_ben-20241231.htm:30]**    | 11.6% = (1,375.8 / 11,831.1) * 100 **[0000038777-25-000017_ben-20241231.htm:3]** **[0000038777-25-000017_ben-20241231.htm:30]**                             |

19c32ad1cca68fa95a6e8621efbb15d3da3c6aeebc8b3ab008c739999168023c

- **Strong growth in key strategic areas, including ETFs with AUM at $24 billion and net inflows of approximately $1.6 billion, marking the tenth consecutive quarter of positive net flows.  **[BEN_3381348_4]** ** Separately Managed Accounts (SMA) reached a record high AUM of $138 billion, with positive net flows of nearly $3 billion, representing the fourth consecutive quarter of net inflows.  **[BEN_3381348_4]**  Canvas, the custom indexing solution platform, generated net inflows of over $750 million, with AUM increasing by 23% from the prior quarter to over $7 billion.  **[BEN_3381348_4]**
- **Successful integration of Putnam leading to increased AUM and positive net flows.  **[BEN_3381348_5]** ** Putnam's AUM increased by 8% to $160 billion in the quarter, or 18% since the acquisition announcement.  **[BEN_3381348_4]**  Putnam's investment performance remains strong, with **89% or higher of mutual fund AUM outperforming peers in the 1-, 3-, 5-, and 10-year periods.  **[BEN_3381348_4]** ** Additionally, **Putnam's average monthly gross sales increased by approximately 30% since the acquisition.  **[BEN_3381348_5]** **
- **Significant increase in the institutional pipeline to $20 billion, one of the strongest levels, indicating future growth potential.  **[BEN_3381348_5]** ** This represents a substantial increase from the prior quarter and is diversified across asset classes and specialist investment managers.  **[BEN_3381348_5]**  The growth in the pipeline is heavily weighted towards fixed income, accounting for over 70% of the growth.  **[BEN_3381348_8]**

793fe5dd123a45bf0a5ca251f967a6f79788d98057ba68db526d0399d334f714

- **Significant client outflows at Western Asset Management due to ongoing investigations by the DOJ, SEC, and CFTC into past trade allocations by former Co-CIO Ken Leech, leading to a 20% decline in annualized revenues at Western and negatively impacting Franklin Resources' overall revenues by approximately 2%.**  **[BEN_3405593_13]** ,  **[BEN_3405593_1]**
- **Low organic growth rate of approximately 1.3% (excluding Western's outflows), indicating slow overall growth, with reliance on growth initiatives that have not yet scaled and may take time to yield results.**  **[BEN_3405593_13]** ,  **[BEN_3405593_1]**
- **Underutilization of valuable platforms like Fiduciary Trust International, as the company has not focused on fully capitalizing on these assets, potentially impacting future growth prospects.**  **[BEN_3405593_14]**

e0ef957c0043dc2283032cf2fa8d167de75e3f94808050cf5d84d6909f112642

- **Reliance on performance fees and anticipated cost savings from the Putnam acquisition to meet financial guidance may pose risks if these do not materialize as expected**  **[BEN_3371051_9]** ,  **[BEN_3371051_12]** ,.  **[BEN_3371051_4]**
- **Performance challenges in core fixed income strategies are negatively impacting net flows despite positive interest in other fixed income categories**.  **[BEN_3371051_11]**
- **Extended timeline (up to three years) for technology integration may delay anticipated operational efficiencies and cost savings**.  **[BEN_3371051_14]**

b46b71a4f03ac04982631fb3056e0cf9d9904f1b80b2017e868050dd7b2ae08d

- **Strong Growth in Alternative Investments**: The company has raised over **$12 billion** in alternatives fundraising fiscal year-to-date and expects to reach the top end of its guidance of **$15 billion**, indicating significant expansion opportunities as the real estate market improves and demand for private credit increases.  **[BEN_3394687_13]**
- **Robust ETF Business with Consistent Inflows**: The ETF business has achieved **seven consecutive quarters** of over **$1 billion** in net inflows, driven by strong demand across active, smart beta, and passive ETFs, and a focus on being vehicle-agnostic to meet investor preferences globally.  **[BEN_3394687_11]**
- **Strategic Joint Venture in Japan**: The company has formed a joint venture with **SBI Holdings**, a leading digital financial conglomerate in Japan, to capitalize on the growing demand for ETFs and digital assets, leveraging SBI's extensive reach and innovation to expand in the Japanese market.  **[BEN_3394687_10]**

dd5e36c48ef2facab6561c361c4d5d7e8bc001eabd1ec7459645acb7b664cd13

1. **Core Net Flow Run Rate**  
   **Q:** What's the core net flow run rate excluding Great-West?  
   **A:** Excluding the **$14 billion** from Great-West, Franklin reported **$7 billion** in long-term net flows. Core sales, defined as sales less than $100 million and excluding Putnam, were up **14%**. Inflows, excluding reinvested distributions and Great-West, increased by **17%**. The firm's pipeline grew from **$13 billion to $20 billion**, none of which includes Great-West Life.  **[BEN_3381348_6]** 

2. **Outflows and Alternatives Net Flow**  
   **Q:** How should we view alts net flow trajectory given outflows?  
   **A:** Over the last eight quarters, Franklin had **$13 billion** in net inflows, excluding realizations. Combined inflows from Lexington (**$10 billion**) and Benefit Street Partners (**$5 billion**) totaled **$27 billion**, suggesting outflows elsewhere. While they raised **$55 billion** in alternatives, **$16 billion** of outflows were from liquid alts, representing about **6%** of their alts portfolio. In the current fiscal year, they've raised **$7.3 billion** in private markets and nearly **$2 billion** in liquid alts, netting flat after distributions and FX impacts.  **[BEN_3381348_7]** 

3. **Expense Guidance and Outlook**  
   **Q:** What's the outlook for expenses, particularly compensation?  
   **A:** Compensation and benefits were higher due to performance fees and higher calendar resets, totaling about **$30 million** above guidance. Excluding Putnam, expenses were flat. For the full year, expense guidance increased slightly to **$4.6 to $4.65 billion**, driven by higher markets.  **[BEN_3381348_10]** 

4. **Effective Fee Rate Trends**  
   **Q:** How is the effective fee rate trending?  
   **A:** The effective fee rate (EFR) dropped to **38.5 basis points**, as guided. Going forward, EFR is expected to remain in the **mid-38s**, influenced by episodic alternative asset fees and business mix shifts, including growth in lower-fee products like ETFs, Canvas, and separately managed accounts. For the next quarter, EFR may be in the **high 37s to 38** basis points due to these factors.  **[BEN_3381348_11]** 

5. **Net Flows Breakdown and Core Business**  
   **Q:** Is the math showing negative core flows correct, and what's the plan to stabilize?  
   **A:** After adjustments, core business net flows might appear negative **$18 billion**. Management acknowledged growth areas in alternatives, ETFs, and SMAs, emphasizing that these are focus areas. They noted stable to improving outflow rates in traditional businesses. Plans to expand in the retirement channel include utilizing Putnam's target-date products and leveraging their **350+** client-facing wholesalers to increase market share.  **[BEN_3381348_16]** 

6. **Fixed Income Flows and Market Trend**  
   **Q:** Are we at the start of larger flows into fixed income?  
   **A:** There's strong demand for fixed income, with **70%** of pipeline growth in this area, excluding Great-West. Six of the top ten gross-selling funds were fixed income products like corporate bond, core bond, multi-sector, and munis. The interest is broad-based across different products and client types.  **[BEN_3381348_8]** 

7. **Allocation Shifts to Fixed Income**  
   **Q:** Will fixed income allocations be much higher in two years?  
   **A:** It depends on views about interest rates. If rates stay higher for longer, it may impact returns on equity markets and expectations, possibly affecting allocations. There's a trend of increasing allocations to fixed income among certain clients, but shifts towards alternatives may counterbalance this.  **[BEN_3381348_9]** 

8. **Institutional Pipeline Details**  
   **Q:** What drives the fixed income success in the pipeline?  
   **A:** Institutional mandates are funded through cash, securities, or transition managers. The pipeline success is due to clients switching managers for performance, extending durations, and adding plus sectors. This success is broad-based across all four fixed income firms, with significant pipelines in core, high yield, and munis.  **[BEN_3381348_12]** 

9. **ETFs Outside the U.S.**  
   **Q:** How are you leveraging ETFs outside the U.S.?  
   **A:** Franklin's ETFs outside the U.S. have grown significantly, especially in Canada and EMEA. Sustainable-oriented ETFs like green bonds and Paris-aligned S&P 500 are performing well. Approximately **half** of ETF flows this quarter were from outside the U.S., and they continue to expand active, passive, and smart beta offerings globally.  **[BEN_3381348_13]** 

10. **Private Markets and Wealth Channel Opportunities**  
    **Q:** How are you capitalizing on private markets in wealth channels?  
    **A:** They're active in the market with products like Lexington's middle-market and co-invest offerings. Focused on the wealth channel, they're leveraging their **350+** wholesalers and the Franklin Templeton Academy for education. The firm believes it has the products and distribution capabilities to meet market needs in alternatives within the wealth channel.  **[BEN_3381348_14]** 

11. **Fee Rates in Institutional Pipeline**  
    **Q:** Can you size the fee rate of the institutional pipeline?  
    **A:** The fee rates are consistent with their institutional fee rates, which are in the **mid- to high 20s** basis points. The remaining flows from Great-West are expected to come in at higher fee rates compared to the initial low-fee inflows.  **[BEN_3381348_15]** 

12. **Base Fee Rate Volatility**  
    **Q:** What's causing base fee rate fluctuations?  
    **A:** EFR variations are due to business mix changes and episodic alternative asset fees. Growth in lower-fee areas like ETFs, Canvas, SMAs, and Putnam's flows contribute to EFR declines. They expect EFR to remain in the **38** basis points range annually, with possible quarterly variations based on product mix and market factors.  **[BEN_3381348_17]** 

6eb1d340ad961d97a63133d6d99b4d9bd8cb46fa8b8f0acefd9c1683e101e11d

- **Franklin Resources is significantly expanding its private wealth management business**, with plans to double its size through organic investments and targeted acquisitions  **[BEN_3405593_14]** . The firm has increased partners in its evergreen offerings from just a few to over **20 partners**, enabling broader distribution and growth  **[BEN_3405593_14]** .
- **Rapid growth in ETFs and alternative assets** showcases Franklin Resources' diversification and growth potential. ETFs have seen net flows of over **$3 billion** in each of the last two quarters, an **88% increase**, reaching **$31 billion** in assets  **[BEN_3405593_13]** . The firm also has strong capabilities in both private and public markets, a unique position among asset managers  **[BEN_3405593_13]** .
- **Strengthening global presence and local asset management capabilities** give Franklin Resources a competitive advantage. The firm sources **$500 billion** from clients outside the U.S. and sells over **$80 billion** internationally  **[BEN_3405593_13]** . It is viewed as a local player in markets like India, Mexico, and the Middle East, where it is one of the largest Islamic finance managers among global asset managers  **[BEN_3405593_13]** .

1f03c5a47493e2094bc6bc0ec29427742a56ed62d5677a3331c272c4be24586a

1. **Guidance on Expenses and Putnam Integration**  
   **Q:** What's the updated expense guidance post-Putnam acquisition?  
   **A:** Management expects expenses for fiscal year 2024 to be between **$4.55 billion and $4.6 billion**, including Putnam's addition and double rent expenses in New York City.  **[BEN_3371051_4]**  Excluding Putnam, expenses are up only **1% to 2%**, while revenue is expected to rise **5%**.  **[BEN_3371051_12]**  They anticipate realizing at least **$150 million** in expense savings from Putnam by the end of the fiscal year, contributing **$150 million to $170 million** in operating income.  **[BEN_3371051_5]** **[BEN_3371051_12]** 

2. **Putnam's Operating Income Contribution**  
   **Q:** Is the expected $150 million run rate from Putnam still on track?  
   **A:** Yes, Putnam is projected to contribute between **$150 million and $170 million** in operating income by fiscal year-end.  **[BEN_3371051_5]**  This translates to about **3% accretion** for full year 2024, with the acquisition being slightly accretive in the second fiscal quarter.  **[BEN_3371051_5]** 

3. **Alternatives Net Flow Trajectory**  
   **Q:** How do you view net flows in alternatives amid flagship fundraises?  
   **A:** Over the last two years, they've raised **$40 billion** in private markets, offset by **$12 billion** in net outflows from liquid alternatives.  **[BEN_3371051_6]**  They anticipate fundraising between **$10 billion and $15 billion** in private markets this year, expecting mid-single-digit growth in alternative asset revenue.  **[BEN_3371051_6]**  In Q1, they raised **$5 billion** in private markets, including closings from Lexington and Benefit Street Partners.  **[BEN_3371051_6]** 

4. **Capital Deployment and Share Buybacks**  
   **Q:** How should we think about capital deployment and buybacks this year?  
   **A:** The company aims to maintain its dividend trajectory and invest in organic growth.  **[BEN_3371051_7]**  With M&A activity slowing, they plan to be more opportunistic with share repurchases, having increased buybacks over the last few quarters.  **[BEN_3371051_7]**  They also have **$250 million** in debt service coming up this year.  **[BEN_3371051_7]** 

5. **Insurance Mandates with Great-West Life**  
   **Q:** Can you update on the $25 billion insurance mandates from Great-West Life?  
   **A:** They expect the **$25 billion** mandate to come in throughout the year, across multiple strategies, with the bulk going to Western Asset.  **[BEN_3371051_8]**  Beyond this, they see opportunities to grow assets further with the Power group of companies.  **[BEN_3371051_8]** 

6. **Fixed Income Demand and Flows**  
   **Q:** What's the outlook for fixed income demand and Western's engagement?  
   **A:** Over half of their top ten gross-selling funds are in fixed income.  **[BEN_3371051_11]**  Fixed income gross sales are up **8%**.  **[BEN_3371051_11]**  The institutional pipeline is strong in multisector credit, high-yield, and global income, with Western Asset being a significant contributor.  **[BEN_3371051_11]**  Putnam adds top-performing fixed income strategies, enhancing their offerings.  **[BEN_3371051_11]** 

7. **Retirement Channel Growth with Putnam**  
   **Q:** How will Putnam and Great-West accelerate growth in the retirement channel?  
   **A:** The Putnam acquisition provides capabilities in stable value (with **$18 billion** in assets), ultrashort, and target-date funds.  **[BEN_3371051_13]**  These products, coupled with an expanded sales force, position them better in retirement and insurance channels.  **[BEN_3371051_13]**  The partnership with Empower enables co-creation of custom products.  **[BEN_3371051_13]** 

8. **Technology Integration and Cost Savings**  
   **Q:** What's the plan for technology outsourcing and potential savings?  
   **A:** They're moving towards a single investment technology platform, with all specialist teams on board.  **[BEN_3371051_14]**  Implementation will take approximately **three years**.  **[BEN_3371051_14]**  Long-term savings are expected to be meaningful, but immediate investments in areas like AI and data are prioritized.  **[BEN_3371051_14]** 

9. **Clarification on Lexington and BSP Fundraises**  
   **Q:** Are there additional catch-up fees expected from Lexington's fundraise?  
   **A:** No more catch-up fees are expected; the fund had its last fundraising on December 31, and all is included in reported numbers.  **[BEN_3371051_10]**  Benefit Street Partners' fundraise is not yet included in assets under management as of December 31.  **[BEN_3371051_10]** 

10. **Incremental Wins from Great-West**  
    **Q:** Is the recent $5.5 billion win from Great-West part of the $25 billion mandate?  
    **A:** The **$5.5 billion** win is incremental and not part of the $25 billion mandate.  **[BEN_3371051_16]**  It comes from the retirement channel.  **[BEN_3371051_16]** 

dbd4a61cf1ccfbfd0d037d788c2a60d089b69f09facb5310f19354ba01643b32

1. **Aladdin Implementation Costs and Savings**  
   **Q:** What are the operational benefits and costs of the Aladdin implementation?  
   **A:** Management expects the Aladdin platform to unify their investment management technology across all public market businesses, providing benefits like a single investment book of record and consistent reporting.  **[BEN_3394687_5]**  The implementation costs are estimated at **$100 million over the next 3–5 years**.  **[BEN_3394687_5]**  They anticipate absorbing between **50% and 100%** of these costs, resulting in a modest impact on operating income per quarter.  **[BEN_3394687_5]**  Savings are expected to begin around fiscal 2028, with at least **$15 million per annum**, increasing to **$25 million** or more in 2029.  **[BEN_3394687_5]** 

2. **Offsetting Aladdin Implementation Costs**  
   **Q:** How will you offset the implementation costs of Aladdin?  
   **A:** Management plans to absorb the implementation expenses by consolidating from multiple vendors to one platform and through other expense initiatives.  **[BEN_3394687_9]**  They expect no mistiming between costs and savings, with offsets occurring as they retire existing systems during the phased implementation.  **[BEN_3394687_14]**  Capitalized costs will be spread out, and they anticipate minimal impact on operating income per quarter.  **[BEN_3394687_14]** 

3. **Lexington Fund Deployment and Future Fundraising**  
   **Q:** How much of Lexington Fund X has been deployed, and when will the next fundraising begin?  
   **A:** Lexington has been deploying Fund X faster than anticipated and at higher discounts than historical, which are still attractive despite narrowing.  **[BEN_3394687_6]** **[BEN_3394687_7]**  Given the rapid deployment, they may enter the market sooner than expected for the next flagship fund.  **[BEN_3394687_6]** 

4. **Great West Life Relationship Upside**  
   **Q:** What's the potential beyond the $25 billion allocation from Great West Life?  
   **A:** The current **$25 billion** allocation is considered modest relative to Great West Life's relationships with other firms.  **[BEN_3394687_8]**  Management views this as a multi-year opportunity, collaborating on new product development for retirement platforms and insurance offerings, aiming to capture a larger share over time.  **[BEN_3394687_8]** 

5. **Revenue Growth and Fee Rate Concerns**  
   **Q:** How will you drive revenue growth amid potential fee rate declines?  
   **A:** Management plans to grow top-line revenue through expansion in higher-fee alternatives, with opportunities in real estate, secondary private equity, and real estate debt.  **[BEN_3394687_13]**  Though fee rates have slightly declined due to business mix and growth in lower-fee products like ETFs and SMAs, they expect the combination of alternatives and growing sectors to offset shrinkage elsewhere.  **[BEN_3394687_13]**  Significant growth in areas like ETFs doesn't necessarily lead to margin compression.  **[BEN_3394687_13]** 

6. **ETF Strategy Expansion**  
   **Q:** What's the plan for expanding the ETF franchise?  
   **A:** The firm is vehicle-agnostic and aims to meet client demand by offering capabilities in any preferred vehicle, including ETFs.  **[BEN_3394687_11]**  Over **40%** of their ETFs are active, and they have over **100** ETFs today.  **[BEN_3394687_11]**  They see strong demand globally and view ETFs as an area for growth without necessarily compressing margins.  **[BEN_3394687_11]** 

7. **Fixed Income Products Positioning**  
   **Q:** Which fixed income products are best positioned if rates fall?  
   **A:** Management anticipates that as rates decrease, investors may shift from cash to other fixed income products.  **[BEN_3394687_12]**  They highlight positive flows in fixed income, strong performance in multi-sector and customized muni strategies, and expect growth in areas like insurance-specific mandates.  **[BEN_3394687_12]**  Their team is well-positioned to capture allocations in multi-sector and long-duration fixed income.  **[BEN_3394687_12]** 

8. **Joint Venture with SBI in Japan**  
   **Q:** How does the JV with SBI in Japan enhance opportunities?  
   **A:** The JV with SBI leverages SBI's significant digital financial platform in Japan, allowing them to launch ETFs and digital asset products to retail investors.  **[BEN_3394687_10]**  This partnership aims to expand their footprint in Japan by tapping into SBI's innovation in digital client engagement.  **[BEN_3394687_10]** 

79fe03924ec9359ab8ff8a009c2de6e247e63f674c5e10856b702c78e6824a0c

- **Acquisition of Putnam Investments** brings complementary investment capabilities with **85% of their AUM beating peers in all time periods** and **87% of mutual funds rated 4- and 5-star**, enhancing performance in both equity and fixed income and expanding presence in retirement and insurance markets.  **[BEN_3371051_15]** ,  **[BEN_3371051_13]**
- **Significant expected inflows from partnerships**, including the **$5.5 billion win from Great-West**, which is **incremental** to the previously expected **$25 billion** inflows, will increase assets under management and revenue potential.  **[BEN_3371051_16]** ,  **[BEN_3371051_8]**
- **Strong growth in ETFs and SMAs**, with **ETF AUM increasing over 40% from the prior year** to **over $21 billion**, including Putnam, and **five consecutive quarters of approximately $1 billion net inflows**, positioning the company well to capitalize on industry trends and investor preferences.  **[BEN_3371051_18]**

c14c74f0a350451473183631888fece5b88430bd244d41ceefe62f7a99f27ce1

1. **Western Asset Outflows Impact**  
   **Q:** How are Western Asset's outflows impacting your business?  
   **A:** Western Asset has experienced **$53.6 billion** in outflows since Ken received his Wells notice.  **[BEN_3405593_9]**  This is mainly in their Core, Core Plus, and Macro Ops strategies.  **[BEN_3405593_9]**  Western's annualized revenues are expected to decline by about **20%**, equating to about a **2%** decline at the Franklin Resources level.  **[BEN_3405593_9]**  The operating income impact will initially be higher since expenses can't be reduced at the same rate as revenue.  **[BEN_3405593_9]** **[BEN_3405593_13]**  We are adjusting our economic arrangements with Western to accommodate this decline.  **[BEN_3405593_9]** 

2. **Expense Outlook and Putnam Integration**  
   **Q:** What's the outlook for expenses, including Putnam's impact?  
   **A:** Normalizing for a full year of Putnam and excluding performance fees, we expect expenses to be similar to the last fiscal year.  **[BEN_3405593_11]** **[BEN_3405593_12]**  One quarter of Putnam expenses is about **$125 million**.  **[BEN_3405593_12]**  We will manage expenses carefully, especially considering the Western situation.  **[BEN_3405593_11]** 

3. **5-Year Growth Targets**  
   **Q:** What are your revenue and growth projections over next 5 years?  
   **A:** We aim to achieve **low single-digit growth** on average.  **[BEN_3405593_13]**  Without Western's outflows, our organic growth rate runs at about **1.3%**.  **[BEN_3405593_13]**  We are building scale in areas like ETFs, which had over **$3 billion** in net flows in the last two quarters, up **88%**, totaling **$31 billion** in AUM.  **[BEN_3405593_13]**  Our breadth in private and traditional markets, along with our international presence, will drive growth.  **[BEN_3405593_13]** 

4. **Private Markets Fundraising Goal**  
   **Q:** Can you discuss the $100 billion private markets target?  
   **A:** The $100 billion target over 5 years is based on our existing managers.  **[BEN_3405593_10]**  Since acquisition, BSP has doubled in size, Clarion is up nearly **40%**, and Lexington up nearly **30%**.  **[BEN_3405593_10]**  For fiscal 2025, we project gross sales between **$13 billion** and **$20 billion** in private markets.  **[BEN_3405593_10]**  This depends on factors like Lexington's flagship fund launch and the real estate market's recovery.  **[BEN_3405593_10]** 

5. **Institutional Flows Beyond Western**  
   **Q:** How are institutional flows outside Western Asset?  
   **A:** Excluding Western, last fiscal year we raised **$2.2 billion** in the institutional channel, which more than doubled to **$5.6 billion** this year.  **[BEN_3405593_9]**  We have worked hard to build better relationships with institutions globally.  **[BEN_3405593_9]** 

6. **Private Wealth Management Expansion**  
   **Q:** What's your plan for growth in private wealth management?  
   **A:** We are expanding partnerships in the wealth channel, now up to over **20 partners** with products like CPREX from Clarion.  **[BEN_3405593_14]**  We co-develop products with wealth management partners and emphasize launching with scale.  **[BEN_3405593_14]**  We also intend to grow our Fiduciary Trust platform by attracting more teams to join.  **[BEN_3405593_14]** 

34dff403f8e336ad5c817025125b8828cf5d246ff56a66fa4b10f51e971f0321

- Excluding significant one-time inflows like the **$14 billion** from Great-West and **$3.1 billion** from dividends reinvested, **core net flows** are negative, with an estimated outflow of about **$11 billion** to **$18 billion** in traditional long-holding business.  **[BEN_3381348_16]**
- The company's **effective fee rate (EFR)** is under pressure due to growth in **lower-fee products** such as ETFs, Canvas, and separately managed accounts, which may reduce overall revenue. The EFR dropped to **38.5 basis points** this quarter and could potentially dip into the **high 37s** in upcoming quarters.  **[BEN_3381348_11]**
- Net growth in alternative assets is being offset by significant **distributions, realizations, and negative FX impacts**, resulting in **flat AUM** in alternatives despite raising **$7.3 billion** in private markets and nearly **$2 billion** in liquid alternatives.  **[BEN_3381348_7]**

258032bbd52fd23808276089818f2d964df1c93be0a5758c7ae02d172b4dfe19

- **Declining fee rates and challenges in driving revenue growth**: Analysts expressed concerns that fee rates may decrease due to changes in asset mix, particularly with more assets flowing into lower-fee products like fixed income and ETFs, making it difficult for the company to drive both top-line and bottom-line growth.  **[BEN_3394687_13]**
- **Significant technology investment may pressure margins**: The company's plan to invest **$100 million over the next 3 to 5 years** to implement the Aladdin platform will increase expenses, with cost savings not realized until fiscal **2028**, potentially pressuring margins in the medium term.  **[BEN_3394687_5]** **[BEN_3394687_14]**
- **Underperformance and outflows in flagship fixed income funds**: Some of the company's major fixed income funds are **struggling with performance**, leading to increased gross and net outflows, which may negatively impact financial results.  **[BEN_3394687_12]**

a5da42c05bd42201268ab37aadc583f1fddf1bcf4ca79a8f763b7b78108843af

Franklin Resources Inc (BEN)

Financials