Core Insights - Franklin Resources, Inc. is positioned for growth through acquisitions, solid AUM growth, and an organic growth strategy, despite facing challenges from rising expenses and concentrated revenues from investment management fees [8]. Group 1: AUM Growth and Financial Performance - Franklin has experienced solid growth in AUM, with a compound annual growth rate (CAGR) of 18.7% over the last five fiscal years, despite a decline in fiscal 2022 [2]. - The company declared a 3.2% increase in its common stock dividend in December 2024, raising it to 32 cents per share [3]. - Investment management fees, which account for 79.9% of revenues as of September 30, 2024, have shown volatility, influenced by AUM levels and service types [4]. Group 2: Strategic Initiatives and Partnerships - Franklin has pursued growth through acquisitions and partnerships, including a collaboration with Japan's SBI Holdings to focus on ETFs and emerging asset classes [9]. - The acquisition of Putnam Investments in January 2024 is expected to enhance Franklin's growth in the retirement space, increasing defined contribution AUM to over $100 billion [16]. - The company announced a share repurchase authorization of 27.2 million shares in December 2023, reflecting its commitment to capital distribution [18]. Group 3: Financial Stability and Expense Management - As of September 30, 2024, Franklin's debt stood at $2.6 billion, with a liquidity position of $6.7 billion, indicating a stable financial position [11]. - Although expenses declined in 2022, they have shown a CAGR of 12.5% over the last four years, with ongoing investments in technology and talent likely to keep expenses high [13]. - The company’s AUM is subject to market fluctuations and regulatory changes, which could impact financial performance [19].

Core Insights - Franklin Resources Inc. (NYSE: BEN) has experienced a share price decline of approximately 3.7% over the past seven months, contrasting with a 14.25% gain in the S&P 500 during the same period [1]. Company Analysis - The company is being analyzed through a combination of fundamental analysis and momentum research, utilizing software developed to track market sentiment [1]. - The investment strategy focuses on identifying companies with a higher likelihood of delivering positive surprises in the near future, based on the disconnect between market perceptions and potential outcomes [1].

Company Overview - Franklin Resources reported fourth-quarter fiscal 2024 adjusted earnings of 59 cents per share, missing the Zacks Consensus Estimate of 60 cents, and reflecting a 29.7% decrease from the prior-year quarter [2] - The company experienced a net loss of $84.7 million compared to a net income of $295.5 million in the prior-year quarter [3] - For fiscal 2024, adjusted earnings per share were $2.39, down from $2.60 in the prior year [4] Revenue and Expenses - Total operating revenues for fiscal 2024 increased by 8% year over year to $8.48 billion, surpassing the Zacks Consensus Estimate of $8.39 billion [5] - In the fiscal fourth quarter, total operating revenues rose 11.3% year over year to $2.21 billion, driven by increases in investment management fees, sales and distribution fees, and shareholder servicing fees, also exceeding the Zacks Consensus Estimate of $2.12 billion [5] - Investment management fees increased by 8.1% year over year to $1.77 billion, while sales and distribution fees rose by 20.1% to $368 million, and shareholder servicing fees surged by 80.1% to $67 million [6] - Total operating expenses rose by 43.3% year over year to $2.36 billion, attributed to increases across all components of operating expenses [6] - The operating margin was reported at negative 6.8%, a significant decline from the 17% margin in the year-ago quarter [7] Assets Under Management (AUM) - As of September 30, 2024, total AUM was $1.69 trillion, reflecting a sequential increase of 1.9% [8] - Average AUM increased by 2.1% sequentially to $1.67 trillion [10] - The company reported long-term net outflows of $31.3 billion during the reported quarter [9] Capital Position - As of September 30, 2024, cash and cash equivalents, along with investments, totaled $5.6 billion, while total stockholders' equity was $13.3 billion [11] - In the reported quarter, Franklin repurchased 4.9 million shares for $102.4 million [12] Market Performance and Outlook - The consensus estimate for Franklin Resources has trended downward, with a shift of -10.57% noted [13][14] - The company currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [15] - Franklin Resources is part of the Zacks Financial - Investment Management industry, which has seen competitors like Principal Financial report a revenue increase of 5.6% year over year [16]

Group 1 - Bassett Furniture Industries, Incorporated (BSET) has been added to the Zacks Rank 5 (Strong Sell) List due to a 40% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Franklin Resources, Inc. (BEN) is also on the Zacks Rank 5 (Strong Sell) List, with a 9.8% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Hitachi Construction Machinery Co., Ltd. (HTCMY) has seen a 30.9% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days, leading to its inclusion in the Zacks Rank 5 (Strong Sell) List [2]

Core Insights - The Q3 2024 Advisor Pulse Survey indicates a significant increase in the number of financial advisors recommending digital assets, with 19% reporting that over half of their clients own such assets, up from 15% in Q2 2024 [1][2] - The survey, which included 619 financial professionals, shows a growing trend in crypto investment recommendations and allocations, with only 3% of advisors reporting no crypto ownership among clients, down from 8% in the previous quarter [2] Group 1: Advisor Recommendations - 70% of advisors have recommended crypto to at least 10% of their clients, with the most common recommendation being a 2% allocation by 26% of advisors, followed by a 5% allocation by 22% [3] - Among advisors not currently recommending crypto, 56% plan to do so, with 28% intending to start within the next six months [3] - 30% of advisors planning future allocations to crypto anticipate recommending 5% allocations, while 22% plan for 2% allocations [3] Group 2: Industry Trends - The data reflects a clear shift in the perception of digital assets among financial advisors, indicating increased confidence in this asset class [3] - The partnership between DACFP and Franklin Templeton aims to provide educational resources to help advisors stay informed about the evolving digital asset market [3] Group 3: Survey Methodology - The survey was conducted between July and September 2024, with 83% of respondents having over 10 years of experience in the financial services industry [4] - A significant portion of the advisors surveyed primarily serve clients with assets ranging from $500,000 to $3.5 million, with 11% serving clients with assets exceeding $3.5 million [4]

Core Viewpoint - Franklin Resources, Inc. (BEN) is integrating parts of its Western Asset Management Co. (Wamco) unit into its larger operations amid ongoing challenges, including an SEC investigation and significant outflows of client funds [1][6][8]. Group 1: Integration and Management Changes - BEN has decided to merge Wamco's middle office into its larger organization, which will result in job cuts within Wamco [3]. - The integration follows the replacement of Ken Leech, the former co-chief investment officer of Wamco, who left after receiving a Wells Notice from the SEC [2]. - CEO Jenny Johnson indicated that BEN is exploring ways to assist Wamco, including adjustments to economic arrangements and operational synergies [4]. Group 2: Financial Performance and Challenges - Wamco has faced continuous outflows, losing over $50 billion as clients, including pension funds, withdrew their investments due to underperformance and the SEC investigation [6]. - Even prior to the SEC probe, Wamco was experiencing client redemptions and senior employee departures due to lackluster performance [7]. - BEN's stock has declined by 10.7% over the past six months, contrasting with a 25.9% growth in the industry [9]. Group 3: Market Reactions and Future Outlook - The market is closely monitoring BEN's strategic intervention to support Wamco, with uncertainty about whether this will lead to a recovery or exacerbate existing challenges [8].

JACKSON, Wyo., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Brand Engagement Network Inc. (“BEN”) (Nasdaq: BNAI), a global leader in secure and reliable conversational AI solutions, today announced its financial results and key business highlights for the third quarter ended September 30, 2024. "In the third quarter, we made significant progress in delivering secure, scalable AI solutions and advancing our mission to transform industries with intelligent technology," said Paul Chang, CEO of BEN. "As we look ahead, BEN ...

NEW YORK, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Franklin Resources, Inc. (NYSE: BEN) for potential violations of the federal securities laws. If you invested in Franklin Resources, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/franklin-resources-inc. Why Did Franklin Resources’s Stock Drop? Franklin Resources is a $1.7 trillion asset management company better know ...

Investors can contact the law firm at no cost to learn more about recovering their losses ​LOS ANGELES, Nov. 13, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Franklin Resources, Inc. (“Franklin Resources” or “the Company”) (NYSE: BEN) investors that the firm has initiated an investigation into possible securities fraud and may file a class action on behalf of investors. Franklin Resources investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq. Investors are enco ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (MARK ONE) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-09318 FRANKLIN RESOURCES, INC. (Exact name of registrant as specified in its charter) Delaware 13-2670991 (State ...