Franklin Resources (NYSE:BEN) held its 2026 annual meeting of stockholders in a virtual format, where shareholders voted on director elections, auditor ratification and several compensation- and equity-plan related items. After the formal meeting concluded, management provided an update on fiscal 2025 business, operational and financial highlights.
Annual meeting voting results
Executive Chairman and Board Chairman Greg Johnson opened the meeting and reviewed the agenda items presented to shareholders. The company reported that, as of the December 5, 2025 record date, there were 521,390,673 shares of capital stock issued, outstanding and entitled to vote, and that a quorum was present in person or by proxy.
- Director elections: All director nominees listed in the proxy statement were elected.
- Auditor ratification: The appointment of PricewaterhouseCoopers as independent registered public accounting firm for the fiscal year ending September 30, 2026 was ratified.
- 1998 Employee Stock Investment Plan: Stockholders approved an amendment and restatement that increases shares authorized for issuance under the plan by an additional 5 million shares.
- 2002 Universal Stock Incentive Plan: Stockholders approved an amendment and restatement that increases shares authorized for issuance under the plan by an additional 25 million shares.
- Say-on-pay: Stockholders approved, on an advisory basis, the compensation of the company’s named executive officers.
No stockholder questions were submitted during the meeting, according to the company.
Management commentary on fiscal 2025 results
Chief Executive Officer Jenny Johnson said fiscal 2025 featured “strong equity gains and broader market participation,” which she described as an “attractive environment for active management.” She reported that ending assets under management were $1.66 trillion as of September 30, 2025. Johnson said long-term flows increased 7.8% to $343.9 billion, while long-term net outflows were $97.4 billion, compared with $32.6 billion in the prior year.
Excluding Western Asset Management, Johnson said the company generated $44.5 billion in long-term net inflows, compared with $16 billion the prior year, marking eight consecutive quarters of positive net flows. She added that alternative and multi-asset strategies posted combined net inflows of $25.7 billion. Johnson also cited “record growth” across retail, separately managed accounts (SMAs), exchange-traded funds (ETFs), and the firm’s Canvas custom indexing platform, each delivering positive net flows with double-digit AUM growth rates.
Western Asset update and strategic focus areas
Johnson said fiscal 2025 presented “significant challenges” for Western Asset, and that Franklin remained committed to supporting the business. She stated that Western’s investment team maintained investment autonomy and that performance “rebounded strongly,” with 92%, 98%, 88% and 99% of Western’s composite AUM outperforming its benchmark over the one-, three-, five- and ten-year periods, respectively, as of September 30, 2025.
She said the company integrated select corporate functions “to drive efficiency” and provide access to broader resources, and that Western’s client service team joined Franklin Templeton to better serve clients.
On broader strategic priorities, Johnson said the firm was ahead of its five-year plan in alternatives fundraising, ETFs and Canvas, and on track in other areas. She noted that Franklin Templeton’s alternative AUM stood at $270 billion after closing the Apera Asset Management transaction, and that the firm offers strategies including alternative credit, secondary private equity, real estate, hedge funds and venture capital. She said the company raised $22.9 billion in private markets during the year and emphasized efforts to “democratize” access to private assets.
Johnson also highlighted growth in personalization-oriented offerings. Retail SMA AUM was $165 billion as of September 30, 2025, and she said the SMA business has grown at a 21% compound annual rate since 2023. Within that segment, she described custom and direct indexing as the fastest-growing areas and said Canvas customized-solution AUM has more than tripled since 2023, representing an 82% compound annual growth rate.
On ETFs, Johnson said the platform is “scaling rapidly” and ahead of plan, with ETF AUM growing at a 74% compound annual rate since 2023. She cited 16 consecutive quarters of net inflows and said 14 ETFs now exceed $1 billion in AUM. She added that about one year into the company’s five-year plan, with approximately $50 billion in ETF AUM, the firm is “already halfway” to its overall goal.
Financial and capital management highlights
Co-President, Chief Financial Officer and Chief Operating Officer Matthew Nicholls said fiscal 2025 reflected “continued change” in the investment management industry and reiterated a long-term plan focused on diversification across asset classes, vehicles and geographies. He also pointed to balancing expense discipline with talent investment and strategic spending across operations, investment teams and distribution.
Nicholls reported average AUM increased 3% to $1.61 trillion for fiscal 2025. Adjusted operating revenues were $6.7 billion, up 2% from the prior year, which he attributed to an additional quarter of Putnam, higher average AUM and elevated performance fees, partially offset by Western Asset outflows. Adjusted performance fees were $365 million, up from $293 million in the prior year. Adjusted operating income was $1.64 billion, and adjusted operating margin was 24.5%, compared with 26.1% in the prior year, reflecting the company’s “ongoing support of Western Asset,” he said.
On capital management, Nicholls said the company returned $930 million to shareholders through dividends and share repurchases. He said the company prioritizes its dividend—citing that it has increased every year since 1981—and uses share repurchases to hedge employee share grants. He also said the firm completed the majority of remaining acquisition-related payments and repaid $400 million of senior notes due in March 2025. Nicholls added that co-investments in seed capital were $2.8 billion, up from $2.4 billion at the end of the prior year, used to develop and scale new investment strategies.
The meeting was adjourned following the voting results and management presentations.
About Franklin Resources (NYSE:BEN)
Franklin Resources, Inc, doing business as Franklin Templeton, is a global investment management organization that offers a wide range of asset management solutions to institutional and individual investors. The firm’s core focus is on delivering active portfolio management across equities, fixed income, multi-asset strategies and alternative investments. Franklin Templeton’s product lineup includes mutual funds, exchange-traded funds (ETFs), closed-end funds, separately managed accounts and sub-advisory services designed to meet varying risk-return objectives and income needs.
Founded in 1947 by Rupert H.
