Franklin Resources reports preliminary Q4 EPS 59c, consensus 60c

Reports Q4 revenue $2.21B, consensus $1.69B.”As we reflect on our fiscal year, global markets rallied significantly, despite ongoing geopolitical complexity and uncertainty. Against this backdrop, we reached record AUM of $1.68 trillion and saw a 25% increase from the prior year in long-term inflows to $319 billion. Long-term net outflows were $32.6 billion, including $20.7 billion of reinvested distributions. Excluding Western Asset Management, our long-term net inflows were $16.0 billion. “During the fiscal year, we continued to increase our presence in our key focus areas which reflect areas of long-term client demand. Client interest in alternative and multi-asset investment strategies generated positive flows for the year. Private markets fundraising totaled $14.8 billion with flagship funds in secondary private equity and alternative credit exceeding fund targets. We saw strong growth across a broad range of investment vehicles with retail SMA, ETF and Canvas AUM increasing by 29%, 89% and 94% year-over-year, respectively – all to record highs. From a regional perspective, our international business continued to be a strength of the firm and experienced positive long-term net flows for the year, culminating in over $500 billion in AUM. “Our acquisition of Putnam Investments has exceeded our expectations. Since closing on January 1, Putnam’s AUM has grown 21% to $180 billion and Franklin Templeton has generated positive net flows of approximately $11 billion in Putnam strategies, benefiting from our global distribution platform. The transaction has also exceeded our annual run-rate cost savings target of $150 million. We have returned $946 million to shareholders through dividends and share repurchases. “We remain committed to our vision of building innovative and collaborative relationships with our clients and look forward to unlocking new opportunities that reflect the high standards that have defined Franklin Templeton as a trusted partner over 75 years. I would like to thank our employees around the world for their dedication and commitment to always putting our clients first.”