BEN's AUM Surges: What's Fueling the Growth?

Overview of Franklin Resources, Inc.'s Assets Under Management

Franklin Resources, Inc. reported preliminary assets under management (AUM) for July 2025, showing a slight increase to $1.62 trillion compared to the previous month. This growth was driven by positive market performance and relatively flat long-term net inflows, which included $3 billion in long-term net outflows at Western Asset Management.

Equity assets stood at $662.8 billion, representing a 1% increase from June 2025. Similarly, Multi-asset AUM reached $184.7 billion, also rising by nearly 1%. The cash management balance was $72 billion, showing a marginal increase. However, Fixed Income AUM declined slightly to $440 billion, while Alternative AUM decreased to $257.5 billion.

Over the past five fiscal years, ending in fiscal 2024, Franklin’s AUM grew at a compound annual growth rate (CAGR) of 3.1%, with the upward trend continuing into the first nine months of fiscal 2025. Strategic acquisitions have played a key role in this growth, helping the company expand its offerings and capabilities.

Strategic Acquisitions and Expansion

In July 2024, Franklin partnered with Japan's SBI Holdings to focus on ETFs and emerging asset classes such as digital assets and cryptocurrencies. This collaboration aims to cater to new generations of investors seeking innovative financial solutions.

Earlier in January 2024, Franklin completed the acquisition of Putnam Investments from Great-West Lifeco. This move is expected to significantly boost Franklin’s presence in the retirement space, increasing its defined contribution AUM to over $100 billion. These acquisitions, along with previous transactions, have enhanced Franklin’s presence in separately managed accounts and strengthened its investment capabilities in private debt, real estate, hedge funds, and private equity.

Franklin’s strategy to diversify into asset classes with growing client demand is expected to further drive AUM growth. A regionally-focused distribution model has also improved the company’s non-U.S. business, resulting in favorable net flows.

Competitors Also Seeing Growth

Franklin’s competitors, including Invesco (IVZ) and T. Rowe Price (TROW), are also experiencing steady AUM growth. Over the last five years ending in 2024, Invesco’s AUM grew at a CAGR of 8.5%, with continued momentum in the first six months of 2025. The 2019 acquisition of OppenheimerFunds contributed significantly to this growth, solidifying Invesco’s position as a leading global asset manager.

Invesco has also capitalized on the rising demand for passive products, which accounted for 45.7% of total AUM as of June 30, 2025. In April 2025, IVZ collaborated with Barings, a subsidiary of MassMutual, to enhance its private credit offerings.

T. Rowe Price has maintained a diversified AUM across various asset classes, client bases, and geographies. Its AUM grew at a CAGR of 2.3% over the past four years (2020–2024), with continued growth in the first half of 2025. The company’s strong brand reputation, consistent investment track record, and solid business volumes are expected to support future AUM growth.

Performance and Valuation Analysis

Franklin’s shares have risen 24.4% in 2025, outperforming the industry’s marginal decline. From a valuation perspective, the company trades at a forward price-to-earnings (P/E) ratio of 10.91, significantly below the industry average.

According to the Zacks Consensus Estimate, Franklin’s fiscal 2025 earnings are expected to decline by 13% year-over-year, but growth of 14.7% is anticipated for fiscal 2026. Earnings estimates for both years have been revised upward over the past 30 days.

Currently, Franklin holds a Zacks Rank of #3 (Hold). Investors looking for high-potential stocks can refer to the complete list of today’s Zacks #1 Rank (Strong Buy) stocks.