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Franklin Resources demonstrated strong performance in its fiscal third quarter of 2026, driven by significant net inflows across its diverse asset classes and record assets under management. The company’s strategic focus on alternatives, ETFs, and custom portfolio solutions appears to be yielding positive results. Key areas of growth include private markets fundraising, which has exceeded expectations, and the expansion of its digital asset offerings. The planned corporate name change to Franklin Templeton Inc. signifies a rebranding effort likely aimed at consolidating its identity. Profitability has improved, and the company continues to return capital to shareholders through repurchases and dividends. Management anticipates continued operational efficiency and stable fee rates. The integration of AI technologies across its operations suggests a forward-looking approach to enhancing client engagement and internal processes.
Quick Summary
- Franklin Resources reported record assets under management of **$1.8 trillion** in its fiscal third quarter.
- The company saw **$18.4 billion** in long-term net inflows during the quarter, pushing year-to-date inflows to **$63.3 billion**.
- Private markets fundraising exceeded targets, reaching **$11.8 billion** in the quarter and **$33 billion** year-to-date.
- Franklin plans to change its corporate name to **Franklin Templeton Inc.** effective August 17, 2026.
Franklin Resources, now preparing to be known as Franklin Templeton Inc., announced a robust fiscal third quarter ending June 30, 2026. The asset manager revealed record assets under management, soaring to **$1.8 trillion**. This milestone was fueled by broad demand across public markets, private markets, ETFs, and customized solutions.
CEO Jenny Johnson highlighted **$18.4 billion** in long-term net inflows for the quarter. This brings the fiscal year-to-date total to an impressive **$63.3 billion**. Overall long-term inflows reached a historic **$122 billion**.
Johnson noted the company’s strategy is clearly working, citing positive flows across all asset classes and regions. Record assets were achieved in alternatives, ETFs, retail separately managed accounts, and its custom portfolio platform, Canvas.
Franklin’s alternatives business saw its assets climb to a record **$294 billion**. The company raised **$11.8 billion** within this segment during the quarter, with private markets contributing **$10.3 billion**. Year-to-date fundraising for private markets stands at **$33 billion**, surpassing the initial full-year target of **$25 billion to $30 billion**.
The company anticipates ending the fiscal year with approximately **$40 billion** in private markets fundraising. Lexington Partners accounted for about **40%** of quarterly private markets fundraising, driven by various strategies. However, over **30** different strategies contributed to this growth.
Franklin’s Evergreen platform, serving wealth management clients with secondary private equity, private credit, and real estate, now manages **$8.9 billion** in assets. Wealth management represented **20%** of year-to-date private markets fundraising.
Public markets also showed strength. Equities returned to positive net flows with **$2 billion**, driven by demand for U.S. large-cap value, international equity, and systematic strategies. The global fixed-income platform attracted **$2.6 billion** in net inflows, supported by liquidity, municipal, and multi-sector strategies.
Franklin Templeton Fixed Income, excluding Western Asset, achieved its tenth consecutive quarter of positive net flows, totaling **$3.5 billion**. The company is also integrating its liquid and private credit capabilities, managing **$520 billion** in fixed income and over **$100 billion** in private credit.
Multi-asset solutions generated **$4.7 billion** in positive net flows. These were led by Canvas, the Franklin Income Fund, and Franklin Templeton Investment Solutions.
The ETF business concluded the quarter with a record **$75.6 billion** in assets and **$7.1 billion** in net inflows, with active ETFs comprising **61%** of these flows. Retail separately managed account assets reached **$187.6 billion** after **$4.4 billion** in net inflows.
Canvas, the custom portfolio and tax-overlay platform, grew to **$30.3 billion** in assets, attracting **$3.7 billion** in net inflows. Since its acquisition, Canvas has expanded from **$2 billion** to its current **$30 billion** AUM. The platform added **26** new partners in the quarter, bringing the total to **220**.
Adjusted operating income rose to **$508.9 million**, a **7%** increase sequentially and **35%** year-over-year. This growth was attributed to higher average assets under management and operational efficiencies.
The company expects its effective fee rate to remain between **37%** and **37.5%** in the fourth quarter. Franklin is targeting an operating margin near **30%** for the fourth quarter and at least **27.5%** for the full fiscal year 2026.
Shareholders received **$521.5 million** during the quarter, including **$348.1 million** in share repurchases. An opportunistic transaction with Great-West Lifeco involved the sale of over **1%** of Franklin’s outstanding shares.
Effective **August 17, 2026**, Franklin Resources Inc. will officially change its corporate name to Franklin Templeton Inc. This change will not impact its capital structure, shares, or shareholder rights, and its stock will continue trading under the ticker **BEN** on the NYSE.
Digital asset assets under management reached **$3.2 billion**, including **$2.4 billion** in tokenized funds and approximately **$600 million** in crypto ETFs. Franklin has expanded its digital asset offerings through the acquisition of 250 Digital and partnerships with MoonPay and Payward.
Franklin’s use of artificial intelligence is showing tangible results. Its Intelligence Hub, supported by Microsoft, has increased client visits by **25%** and sales by over **11%**. AI is being deployed across various functions, including investment research, operations, and risk management, with careful tracking of costs and benefits.
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