Franklin Resources ( (BEN) ) has released its Q4 earnings. Here is a breakdown of the information Franklin Resources presented to its investors.
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Franklin Resources, Inc., operating as Franklin Templeton, is a global investment management organization that provides investment management expertise, wealth management, and technology solutions to clients in over 150 countries. The company offers a wide range of investment capabilities, including equity, fixed income, alternatives, and multi-asset solutions, with a notable international presence and over $1.6 trillion in assets under management (AUM) as of September 30, 2024.
In its latest earnings report, Franklin Resources announced a preliminary net loss of $84.7 million for the fourth quarter of 2024, a significant drop from net income in the previous quarter and the same quarter last year. For the fiscal year ending September 30, 2024, the company reported a net income of $464.8 million, which also marked a decline compared to the previous fiscal year. Despite these figures, the company achieved record AUM of $1.68 trillion, driven by a 25% increase in long-term inflows and a successful acquisition of Putnam Investments.
Key financial highlights include a 22% increase in AUM over the fiscal year, largely attributed to market changes and the acquisition of Putnam, which added $148.3 billion to AUM. The company also reported $14.8 billion in private market fundraising, with strong growth in investment vehicles like retail SMA, ETF, and Canvas®. However, the quarter saw a $389.2 million impairment of intangible assets related to Western Asset Management, contributing to the reported losses.
Despite the challenging financial results, Franklin Resources remains focused on its strategic growth areas, such as alternative and multi-asset strategies, which continued to attract positive client flows. The acquisition of Putnam has exceeded expectations, contributing to overall growth and cost savings. The company’s management remains committed to building innovative client relationships and exploring new opportunities, maintaining a forward-looking approach to navigating market complexities.
