Franklin Resources, Inc. (BEN)

Franklin Resources reported net income of $171.5 million, or $0.31 per diluted share, for the quarter ended June 30, 2026, in its results of July 31, 2026 1. Operating revenues were $2,358.4 million, up 14 percent from a year earlier 1.

Assets under management, the money the company invests for clients, grew to a record $1.8 trillion, with $18.4 billion of long-term net inflows in the quarter 1. Chief executive Jenny Johnson said alternative assets under management reached a record $294.2 billion 1.

Operating income was $215.8 million 1. General, administrative and other expenses rose $129.1 million in the quarter, primarily due to a $100.0 million regulatory settlement 3.

That settlement ended the SEC's case against Western Asset, a subsidiary, on June 4, 2026, with a civil penalty of $100 million and no admission of wrongdoing 5. The SEC case against its former co-chief investment officer Ken Leech remains pending 3.

The company also renamed itself Franklin Templeton, Inc. effective August 17, 2026, and its ticker stays BEN 21.

Franklin and its predecessors say they have been in the investment management business since 1947 4. The company was incorporated in Delaware in November 1969 and started its mutual fund business with the Franklin family of funds 4.

Growth then came largely by acquiring other managers 4. It added Templeton in 1992, Franklin Mutual Series in 1996, Fiduciary Trust International in 2001 and Benefit Street Partners in 2019 4.

The biggest step was Legg Mason in July 2020 4. Later additions were O'Shaughnessy in December 2021, Lexington Partners in April 2022, Alcentra in November 2022 and Putnam in January 2024 4.

Operating revenues were $7,849.4 million in fiscal 2023, $8,478.0 million in fiscal 2024 and $8,770.7 million in fiscal 2025 4. Investment management fees rose $159.6 million in fiscal 2025, mainly because Putnam, acquired on January 1, 2024, added one more quarter 4.

Higher average equity assets and higher performance fees helped, while outflows at Western Asset worked against it 4. Average equity assets rose 17 percent in fiscal 2025 and average fixed income assets fell 14 percent 4.

Clients withdrew more than they added in the long-term funds 4. Long-term net outflows were $97.4 billion in fiscal 2025 and $32.6 billion in fiscal 2024 4.

Net income attributable to the company was $882.8 million in fiscal 2023, $464.8 million in fiscal 2024 and $524.9 million in fiscal 2025 4.

On October 1, 2025, it acquired Apera Asset Management, a pan-European private credit firm, for cash of €65.2 million 43. It will pay up to €125.0 million more through the fifth anniversary of the closing if revenue targets are met 4.

What it does

The company manages money for others and has one operating segment, investment management and related services 4. Its fees depend largely on the level and mix of assets under management 4.

Assets under management were $1,791.6 billion at June 30, 2026, against $1,611.8 billion a year earlier 1.

Where the revenue comes from

In fiscal 2025 investment management fees were $6,981.8 million, sales and distribution fees $1,474.7 million and shareholder servicing fees $264.5 million 4. Performance fees, extra fees earned for beating targets, were $474.0 million 4.

By average assets in fiscal 2025, equity was 40 percent, fixed income 29 percent, alternative 16 percent, multi-asset 11 percent and cash management 4 percent 4. The average fee rate before performance fees was 40.5 basis points, a basis point being a hundredth of a percentage point 4.

Brands and products

It sells under brand names including Franklin, Templeton, Legg Mason, Putnam, Clarion Partners, ClearBridge, Benefit Street Partners, Lexington Partners and Western Asset Management Company 4. Its funds include mutual funds, exchange-traded funds and unregistered funds, plus separate accounts for institutions and wealthy clients 4.

In the June 2026 quarter, long-term net flows were $2.0 billion in equity, $2.6 billion in fixed income, $9.1 billion in alternatives and $4.7 billion in multi-asset 3. Private markets fundraising reached $33.0 billion for the fiscal year to date 1.

The company calls Canvas its custom portfolio solutions platform 1. Western Asset had $1.1 billion of long-term net outflows in the quarter 1.

People and control

Jennifer Johnson is chief executive and Gregory Johnson is executive chairman 6. Daniel Gamba and Terrence Murphy are Co-Presidents, as is Matthew Nicholls, who is also chief financial officer and chief operating officer 6.

The company employed approximately 9,800 people as of September 30, 2025 4.

Rupert Johnson Jr. beneficially owned 104,203,443 shares, 20.0 percent of the class, and Charles Johnson 98,651,261 shares, 18.9 percent, as of December 5, 2025 9. Their holdings sit mainly in trusts for which each is trustee 9.

Vanguard, Great-West Lifeco and BlackRock each reported more than five percent, at 6.2, 6.1 and 5.7 percent 9. Jennifer Johnson and Gregory Johnson are siblings, and Rupert Johnson Jr. is their uncle 4.

Current problems

The Justice Department told Western Asset it is no longer a subject of its investigation 5. Charges against Ken Leech for unlawful trade allocation were dismissed on June 12, 2026, and he reached a plea agreement on one obstruction charge 3.

A shareholder class action over those trade allocations is pending, and an amended complaint of March 16, 2026 widened the class period through November 25, 2024 3. A July 22, 2025 lawsuit by former employees challenges the 401(k) plan's use of the company's own funds 4.

Rivals and offices

The 10-K names no single rival 4. It lists investment managers, brokerage and investment banking firms, insurers, banks and hedge fund firms as competitors 4. It also cites a shift from actively managed core equity and fixed income toward alternative, passive and smart beta strategies 4.

It owns its San Mateo, California headquarters, which has 743,793 square feet, of which 475,183 are leased to third parties 4.

The umbrella, in words

The list of subsidiaries in Exhibit 21 holds names such as Benefit Street Partners, LLC, Clarion Partners, LLC, Franklin Advisers, Inc. and Fiduciary Trust Company International, as of September 30, 2025 10. Western Asset Management Company is a wholly-owned subsidiary 5.

On July 21, 2026 the company granted equity awards to four senior leaders 6. Their performance share units cover fiscal years 2027 to 2029 and may vest as of December 1, 2029 6.

Each award has a grant date fair value of approximately USD $15 million, and its restricted stock units may vest as of August 31, 2031 6.

Its revolving credit facility, signed on July 30, 2026, has $1,500,000,000 of commitments and matures on July 30, 2031 7.

The 5.500% notes due August 10, 2036, issued for $750,000,000, are meant to repay about $700,000,000 of revolving borrowings 8.

The board authorized repurchases of up to an additional 20.8 million shares in December 2025, and 25.6 million shares remained available at June 30, 2026 3.

The Apera purchase carries an earn-out of up to €125.0 million based on revenue targets 4. The SEC case against Leech is pending 3.