Franklin Resources reports Q1 EPS 65c, consensus 57c

Reports Q4 revenue $1.99B, consensus $1.52B.”Our first fiscal quarter results reflect ongoing momentum in a number of significant areas across asset classes, investment vehicles and geographies to meet the varied needs of our diverse global client base,” said Jenny Johnson, President and CEO of Franklin Resources, Inc. “During the quarter, we saw positive net flows into alternatives, multi-asset, equity, ETFs and SMAs. We also continued to see aggregate positive net flows in non-U.S. regions. “Reflecting client demand, we continue to see robust growth in our private market strategies. Our three largest alternative managers, Benefit Street Partners, Clarion Partners and Lexington Partners, each had net inflows in the quarter with a combined total of $3.8 B. Earlier this month, Lexington Partners announced the closing of its latest flagship global secondary fund with $22.7 B of total capital commitments and with approximately 20% of the capital raised in the fund coming from the wealth management channel. The fund ranks among the largest raised to date in the secondary market and significantly exceeded Lexington’s prior secondary fund, which closed with $14 billion raised in 2020. Also this month, Benefit Street Partners closed its fifth flagship private credit fund with $4.7 B of total capital commitments. Reflecting the strong demand for the asset class, Benefit Street Partners exceeded its fundraise target. “We were pleased to close our acquisition of Putnam Investments from Great-West Lifeco on January 1. With $148B in assets under management, Putnam adds complementary investment capabilities and a track record of strong investment performance with 87% or higher of mutual fund AUM outperforming its peers over all standard time periods. The transaction also enhances our presence in the attractive retirement and insurance markets. The addition of Putnam brings Franklin Templeton’s total AUM to approximately $1.6 T.