Franklin Resources Q3 2025: Unpacking Contradictions in Fundraising, Expenses, and Western Asset Revenue

Private markets fundraising targets, expense savings targets, revenue contribution from Western, and Western Asset impact on revenue and expenses are the key contradictions discussed in Franklin Resources' latest 2025Q3 earnings call.



Assets Under Management and Market Performance:
- Franklin Templeton's assets under management ended the quarter at $1.61 trillion, with AUM increasing from the prior quarter due to market gains and inflows, partially offset by long-term outflows.
- The company's investment teams remain cautiously constructive on the U.S. equity market outlook, with some caution due to market advances and geopolitical uncertainties.

Private Markets Activity and Alternative Assets:
- Franklin Templeton's alternative assets fundraising reached $15.7 billion fiscal year-to-date, with diversification across private equity, alternative credit, and real estate.
- The strong performance in alternative assets and the acquisition of Apera Asset Management are expected to enhance Franklin's private credit capabilities and global exposure.

Fixed Income and Institutional Pipeline:
- Franklin Templeton's institutional pipeline rose by net $4 billion to $24.4 billion, reflecting strong client demand across asset classes.
- The Franklin's fixed income was the largest in the institutional pipeline, demonstrating recovery and institutional capabilities after previous challenges.

Regional Expansion and International Markets:
- The company operates in over 30 countries and has approximately $500 billion or 30% of AUM outside the U.S.
- Growth in international markets and strategic mandates, such as managing the National Investment Fund of Uzbekistan, support the company's global presence and strategic positioning.