FRANKLIN TEMPLETON INC (BEN)

Franklin Resources, Inc. is a holding company whose subsidiaries operate under the Franklin Templeton and other brand names, including Benefit Street Partners, Brandywine Global, Clarion Partners, ClearBridge, Fiduciary Trust International, Legg Mason, Lexington Partners, Putnam, Royce, Templeton and Western Asset Management. It is a global investment management organization with over $1.6 trillion in assets under management as of September 30, 2025. The company has roots in the investment management business going back to 1947, was incorporated in Delaware in 1969, and has grown through acquisitions such as Templeton, Fiduciary Trust International, Benefit Street Partners, Legg Mason, Lexington Partners, Alcentra, Putnam and Apera. Its common stock trades on the NYSE under the symbol "BEN." Revenues come mainly from investment management fees, which depend on the level and mix of AUM, along with sales and distribution fees and shareholder servicing fees.

The company has one operating segment, investment management and related services. Its AUM of $1,661.2 billion is split among equity (41%), fixed income (26%), alternatives (16%), multi-asset (12%) and cash management (5%). Products include U.S. mutual funds, closed-end funds and ETFs, non-U.S. funds domiciled mainly in Luxembourg and Ireland, private funds, collective investment trusts, institutional separate accounts, retail separately managed account programs, and sub-advised products. Alternative offerings cover private credit, hedge funds, private equity, real estate and infrastructure. Through Fiduciary Trust International, it provides investment management, trust and custody services to high-net-worth individuals and families, family offices and foundations. Related services include fund administration, distribution and shareholder servicing.

Clients include retail, institutional and high-net-worth investors worldwide, such as individual investors, sovereign wealth funds, pension and defined contribution plans, endowments, foundations, healthcare systems and insurance companies. Products reach investors directly and through financial intermediaries such as broker-dealers, banks and financial advisers, and the company relies heavily on these third-party channels. A global distribution group with regional teams handles sales and marketing, and some specialist managers have their own sales teams. Institutional business is often won through consultants, direct sales, existing client relationships and requests for proposals.

Business is conducted through subsidiaries and specialist investment managers, many registered with the SEC as investment advisers or as equivalents in numerous jurisdictions across the Americas, Europe, the Middle East, Asia and Australia. Management agreements with U.S. mutual funds must be renewed annually and approved by fund boards, and many other agreements can be ended on short notice. Franklin outsources various administration, technology and transfer agency services to third-party providers. It competes with investment management companies, brokerage and investment banking firms, insurers, banks and hedge fund firms on reputation, performance, product mix, service, distribution relationships and fees. It is subject to extensive U.S. and international regulation.