Franklin Resources, Inc. (BEN) reported Q4 2024 revenue of $2.211B and GAAP net income of -$84.7M, with adjusted metrics showing resilient operating performance despite the Western Asset challenges. Ending AUM reached $1.68T, reflecting a 2% QoQ increase, while average AUM rose to $1.67T. The quarter featured a significant non-cash impairment related to Western Asset mutual fund contracts (GAAP) of $389.2M, which depressed GAAP net income and EPS, but did not affect adjusted earnings streams. The Putnam integration contributed to adjusted revenues and flows, helping offset Western-related headwinds through nine months of Putnam activity. Management stressed ongoing diversification, with meaningful progress in ETFs, Canvas, and private markets (substantial fundraising target: at least $100B over five years). In the near term, capital deployment and cost discipline remain central as the firm works through Western-related dynamics and accelerates growth in higher-growth areas such as private markets, real estate debt, and wealth-management platforms.\n\nKey takeaways for investors: (1) Adjusted operating margin at 26.3% in Q4 and 26.1% for the full year 2024 reflect ongoing operating discipline despite revenue dilution from Western; (2) Western outflows and related investigations pose near-term earnings risk but are anticipated to be partly offset by Putnam, ETFs, Canvas, and private markets mix; (3) the 5-year target of at least $100B in private markets fundraising remains central to growth, supported by a broadening product suite and geographic reach; (4) management guidance for 2025 indicates a mid- to high-3% basis point range for the adjusted expense rate (EFR) with stable cost structures, underscoring a focus on expense control and platform unification across public market specialists.