Franklin Resources reports Q2 adjusted EPS 71c, consensus 55c

Reports Q2 revenue $2.29B, consensus $2.05B. “Franklin Templeton delivered another strong quarter, with $17 billion in long-term net inflows across public and private markets, reflecting the strength of our diversified global platform,” said Jenny Johnson, CEO. “We saw improved gross sales across all asset classes, and importantly, positive long-term net flows in every region, demonstrating the impact of our local client engagement and global reputation. “In the second quarter, long-term inflows were $118 billion and, excluding reinvested distributions, increased 28% from prior quarter. We fundraised $14.3 billion in alternatives, including $13.2 billion in private market assets, which was diversified across alternative credit, secondary private equity, real estate and venture strategies. Fiscal year-to-date fundraising in private markets reached $22.7 billion. Strong momentum continued in public markets, highlighted by $9.5 billion in multi-asset net inflows, our 19th consecutive quarter of positive flows in that asset class. Our platform continues to scale across key growth areas. ETFs and Canvas reached record AUM, generating $4.5 billion and $5.3 billion in net inflows, respectively, with Canvas increasing 27% quarter over quarter. Investment performance remains competitive, supporting both client retention and organic growth, while we continue to manage expenses with discipline and invest in areas of opportunity. This quarter underscores the power of our multi-year strategy in action. While markets remain uncertain, our strategy is clear and we’re pleased to be ahead of plan. We are focused on delivering strong investment outcomes, deepening client relationships and continuing to evolve our capabilities to drive sustainable, long-term growth for our clients and shareholders.”