Loading...
•
Mar 31, 2024
Franklin Resources Q2 2024 Earnings Report
Franklin Resources reported mixed second quarter results, marked by increased AUM and long-term net inflows, but also a decrease in net income and operating income compared to the previous quarter and prior year.
Key Takeaways
Franklin Resources reported a net income of $124.2 million, or $0.23 per diluted share, for the quarter ended March 31, 2024. The company saw positive contributions across asset classes, investment vehicles, and geographies, including long-term net inflows of $6.9 billion. Total assets under management (AUM) were $1,644.7 billion at the end of the quarter, up 13% due to the acquisition of Putnam Investments and positive net market changes.
Long-term net inflows reached $6.9 billion, driven by fixed income, multi-asset, and alternative assets.
Acquisition of Putnam Investments was completed in January, expanding investment capabilities and AUM.
Institutional pipeline of won-but-unfunded mandates grew to nearly $20 billion.
Total assets under management (AUM) reached $1,644.7 billion, a 13% increase during the quarter.
Franklin Resources
Franklin Resources
Franklin Resources Revenue by Segment
Revenue by Segment
Investment Mgmt Fees Revenue
CapyFin.comSales & Distribution Revenue
CapyFin.comShareholder Servicing Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The company will continue to focus on deepening client relationships, diversifying the firm, and disciplined expense management.
Positive Outlook
- Deepening client relationships and further diversifying the firm.
- Contributions across asset classes, investment vehicles and geographies.
- Positive net flows across separately managed account, ETF and Canvas® offerings.
- Aggregate positive net flows in non-US regions.
- Focus on disciplined expense management while leveraging net cash and investments to invest in growth and innovation.
Challenges Ahead
- Market and volatility risks
- Investment performance and reputational risks
- Global operational risks
- Competition and distribution risks
- Third-party risks
Revenue & Expenses
Visualization of income flow from segment revenue to net income