Jennifer M. Johnson
President
Chief Executive Officer
Dear fellow shareholders,
Since our origins in 1947, Franklin Templeton’s clear and unwavering mission has been to help our clients, ranging from individual investors and financial professionals to families and institutions, achieve their most important financial milestones.
Over the past five years, we have intentionally expanded and diversified our business, organically and through strategic acquisitions, to position Franklin Templeton to succeed over the long term. Today, we are proud to be recognized as one of the most comprehensive global asset managers with investment management capabilities across public and private markets and global distribution with clients in over 150 countries.
CFO & COO Q&A
CFO and COO Matthew Nicholls highlights the main contributors to our fiscal year financial results. He also discusses our focus on expense management discipline, which allows us to reinvest in the firm and return capital to shareholders.
Matthew Nicholls
Executive Vice President
Chief Financial Officer
Chief Operating Officer
Growing and diversifying our business
With $1.68 trillion in assets under management (AUM), we are one of the world’s largest independent investment managers with investment capabilities across public and private asset classes and clients in over 150 countries. Over the last five years, we accelerated our diversification through both organic growth and targeted acquisitions into higher-growth areas. In fact, the specialist investment managers (SIMs) we have acquired since 2019 represent 64% of our total AUM. In that period, our institutional AUM increased from 25% to 45%, and we are now well balanced between institutional and wealth management.
AUM Evolution Over the Last Five Years
FIVE YEARS AGO1
TODAY2
Evolving and diversifying our company for the benefit of our clients
We have continued the successful evolution of our company to benefit our clients and meet their own evolving needs and preferences in pursuit of their financial goals. That includes progress executing on our long-term plan of further diversifying our business across asset classes, vehicles and geographies—as well as increasing interconnectivity within our growing firm. From our expansion into alternative asset categories to solutions in the insurance and retirement channels and from private wealth management to customization and personalization to innovative technology-based solutions, we now offer comprehensive investment capabilities across public and private markets to clients around the world.
Franklin Templeton Executive Committee
Corporate social responsibility (CSR) is a key component of our effort to deliver better outcomes for our stakeholders and is embedded in our corporate values. As such, we are dedicated to making a positive impact in the world on behalf of our clients, shareholders, employees and other stakeholders.
Over the past several years, we have developed a robust CSR framework and continue to build upon that progress. We’re pleased that Franklin Templeton was recognized in the 2023 Best Places to Work in Money Management program announced by Pensions & Investments.
Our investment managers
Franklin Templeton brings together a wide range of investment managers to provide our clients deep expertise within and across asset classes, investment styles and geographies. Our firm combines the benefits of global strength with the specialization of investment teams each with investment autonomy and differentiated philosophies.
| Benefit Street Partners/Alcentra | Franklin Mutual Series | Putnam Investments | ||
| Brandywine Global | Franklin Templeton Digital Assets | Royce Investment Partners | ||
| Clarion Partners | Franklin Templeton Fixed Income | Templeton Global Investments | ||
| ClearBridge Investments | Franklin Templeton Investment Solutions | Templeton Global Macro | ||
| Fiduciary Trust International | Franklin Venture Partners | Western Asset Management | ||
| Franklin Equity Group | Lexington Partners | |||
| Franklin Income Investors | Martin Currie | |||
Important information regarding forward-looking statements and non-GAAP financial information
This report contains forward-looking statements that are provided under the “safe harbor” protection of the Private Securities Litigation Reform Act of 1995 and involve a number of known and unknown risks, uncertainties and other important factors. You should read the discussions under the headings “Forward-Looking Statements” and “Risk Factors” in Part I of our Annual Report on Form 10-K for our fiscal year ended September 30, 2024 (“Form 10-K”) for important information concerning such matters. This report also contains non-GAAP financial measures such as adjusted operating revenues, adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted earnings per share, which are not substitutes for measures calculated in accordance with US GAAP. You should read the “Supplemental Non-GAAP Financial Measures” section within Item 7 of our Form 10-K for, among other things, a presentation of the most directly comparable measures calculated in accordance with US GAAP and reconciliations from US GAAP to non-GAAP.
Footnotes
- As of 9/30/2019.
- As of 9/30/2024.
- Putnam Fixed Income and Putnam Equity are reported together for this purpose.
- Percentages do not add up to 100% due to rounding.
Corporate social responsibility