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Franklin Resources, Inc., commonly known as Franklin Templeton, is a global investment management organization founded in 1947 and headquartered in San Mateo, California.

The company offers various investment solutions, including mutual funds, ETFs, and other specialized strategies, catering to individual and institutional investors worldwide.

With a presence in over 30 countries, Franklin Templeton leverages its diverse investment expertise and global reach to manage assets across various asset classes, including equities, fixed income, alternatives, and multi-asset strategies.

The firm is renowned for its active management approach, aiming to deliver superior long-term performance through in-depth research and disciplined investment processes.

In the 2024 first quarter, Franklin Resources grew ending assets under management (AUM) by 13.0% from the prior quarter to $1.64 trillion, and by 15.7% from the prior year. This growth was largely driven by the acquisition of Putnam Investments, favorable market conditions, and net inflows.

Average AUM also saw a substantial rise of 13.4% from the prior quarter to $1.58 trillion, marking an 11.4% increase from the previous year. Investment performance improved notably, with 62%, 51%, 62%, and 69% of the strategy composite AUM outperforming their respective benchmarks over 1-, 3-, 5-, and 10-year periods, respectively.

For mutual funds, 51%, 60%, 44%, and 56% outperformed their peers over these same time-frames. Long-term net inflows were strong at $6.9 billion, bolstered by $13.7 billion from Great-West Lifeco’s allocation.

Fixed Income, Multi-Asset, and Alternative asset classes generated positive net flows, with major alternative managers contributing $1.4 billion in net inflows.

Separately, managed accounts (SMA) AUM reached $138 billion with positive net flows for the fourth consecutive quarter.

Source: Investor Relations

Canvas, the Custom Indexing solution platform, saw net inflows of $0.8 billion and a 23% increase in AUM to $7.2 billion. ETFs ended the quarter with $24 billion in AUM and generating $1.6 billion in net inflows, marking the 10th consecutive quarter of positive flows.

Additionally, non-US AUM totaled $490 billion, with positive net flows in non-US regions for the fourth straight quarter. The institutional pipeline grew by $6.6 billion to $19.8 billion, not accounting for the remaining allocation from Great-West.

Franklin Resources has several competitive advantages that position it favorably within the investment management industry. One of its key strengths is its global diversification, with a presence in over 30 countries and a broad array of investment products, including equities, fixed income, alternatives, and multi-asset strategies.

This extensive reach allows the company to tap into diverse markets and attract a wide range of clients.

Separately, Franklin Templeton’s emphasis on active management and its robust research capabilities provide a significant edge, enabling it to deliver strong, long-term performance across various market conditions.

The strategic acquisition of Putnam Investments further enhances its portfolio and market presence, strengthening its competitive position.

During economic downturns, Franklin Templeton’s resilience is underscored by its diversified asset base and strong balance sheet. Furthermore, its commitment to innovation ensures continued relevance and client engagement, supporting its performance even during recessions.

The company performed poorly during the previous major economic downturn, the Great Recession of 2008-2009: