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Franklin Resources Inc.

Franklin Resources, Inc. Reports Financial Results for the Third Fiscal Quarter of 2025

Strategic Insights

— 2 min read

As the global investment management organization continues to navigate the complex and uncertain business and regulatory environments, Franklin Resources, Inc. has reported financial results for the third fiscal quarter of 2025. Despite significant market volatility driven by uncertainty regarding U.S. trade tariffs, the company's investment products have shown resilience, with the S&P 500 Index and MSCI World Index increasing 10.9% and 11.6% for the quarter, respectively.

Key Takeaways:

  • The company's total AUM at June 30, 2025 was $1,611.8 billion, 4% lower than at September 30, 2024, and 2% lower than at June 30, 2024.
  • Monthly average AUM for both the three and nine months ended June 30, 2025 decreased 4% from the same periods in the prior fiscal year.
  • Long-term inflows decreased 9% to $75.6 billion, driven by lower inflows for WAM institutional separate accounts, partially offset by higher inflows in alternative and equity private funds and equity exchange traded funds.
  • Long-term outflows decreased 1% to $84.9 billion, due to lower outflows for fixed income and equity institutional separate accounts, equity separately managed accounts, and equity and multi-asset open end funds.
  • AUM decreased $66.8 billion, or 4%, during the nine months ended June 30, 2025, due to $85.5 billion of long-term net outflows, inclusive of $118.6 billion of long-term net outflows at WAM and $27.3 billion of long-term reinvested distributions.
  • Net market change, distributions and other primarily consists of $60.0 billion of market appreciation and a $1.4 billion increase from foreign exchange revaluation, partially offset by $47.9 billion of distributions, primarily from the equity asset class.

Statistics:

  • Total AUM: $1,611.8 billion (as of June 30, 2025)
  • Average AUM (nine months ended June 30, 2025): $1,645.8 billion (decreased 4% from the same period in the prior fiscal year)
  • Long-term inflows (nine months ended June 30, 2025): $75.6 billion (decreased 9% from the prior year period)
  • Long-term outflows (nine months ended June 30, 2025): $84.9 billion (decreased 1% from the prior year period)
  • Net market change, distributions and other (nine months ended June 30, 2025): $60.0 billion (market appreciation) and $1.4 billion (foreign exchange revaluation)
  • AUM by asset class (as of June 30, 2025):

+ Equity: 44.6% of total AUM

+ Fixed Income: 30.4% of total AUM

+ Alternative: 12.5% of total AUM

+ Multi-Asset: 7.2% of total AUM

+ Cash Management: 5.3% of total AUM

Sources:

  • Franklin Resources, Inc., Form 10-Q, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (August 1, 2025)
  • Franklin Resources, Inc., Annual Report on Form 10-K for the fiscal year 2024 (September 30, 2024)

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