Franklin Resources Inc. (BEN) reported QQ3 2024 results that showcased resilience in a mixed macro environment, supported by a diversified asset mix, meaningful integration of Putnam, and ongoing investments in technology and strategic partnerships. Ending AUM was $1.65 trillion, flat sequentially and up 15% year over year, underscoring the contribution from Putnam and favorable markets. Revenue of $2.10 billion was up 6.6% YoY but down 1.7% QoQ, with net income of $174 million and EPS of $0.32. The quarter featured net outflows of $3.2 billion on a long-term basis, offset by positive net inflows in multi-asset ($1.8B) and alternatives ($1.4B). ETF inflows remained a bright spot, delivering roughly $3.3 billion of net flows and lifting ETF AUM to about $27 billion, reflecting an increasingly global ETF franchise.
Strategically, Franklin Templeton continued to scale its platform through technology modernization (Aladdin) and selective partnerships (Great-West Lifeco, SBI Japan). Management indicated an expected $100 million of Aladdin-related implementation costs over 3–5 years, with peak spending in fiscal 2026–2027, and an initial absorption profile that should be near neutral to operating income over time. Long-term cost savings are anticipated to begin around 2028 ($15 million/year) and rise meaningfully in 2029 (at least $25 million/year). The firm also highlighted growing diversification across asset classes, vehicles, and geographies as a cornerstone of its growth framework, including an expansion of private markets, private debt, and wealth-management initiatives.
Taken together, the QQ3 2024 results underscore a structurally diversified earnings base with favorable secular trends in alternatives and wealth management, balanced by near-term margin headwinds from ongoing platform investments. The company remains positioned to leverage its broad global distribution, expansive product capabilities, and technology investments to navigate a dynamic market landscape. The near-term emphasis will be on managing flows, realizing Aladdin-related efficiencies, and expanding higher-margin channels such as ETFs, SMAs, and private markets across geographies.