Franklin Resources, Inc. (BEN): Business Model Canvas [Dec-2025 Updated]

You're looking at how a giant like Franklin Resources, Inc. is fighting back against the constant fee squeeze in traditional investing, and honestly, their pivot toward alternatives and digital assets is the key move. With $1.66 trillion in Assets Under Management as of September 30, 2025, and fiscal year 2025 adjusted operating revenues of $6.7 billion, their strategy-cemented by acquisitions like Apera Asset Management in October 2025-is all about shifting value capture. This Business Model Canvas breaks down exactly how Franklin Resources, Inc. is structuring its key activities and revenue streams, including the $364.6 million in adjusted performance fees for FY25, to support this new direction. Dive in below to see the mechanics of their plan.

Franklin Resources, Inc. (BEN) - Canvas Business Model: Key Partnerships

Strategic alliance with Wand AI for Agentic AI development

Franklin Resources, Inc., operating as Franklin Templeton, entered a strategic partnership with Wand AI on November 6, 2025, for enterprise deployment of agentic AI across its global platform. The firm managed $1.66 trillion in assets as of September 30, 2025. The initial deployment focused on investment teams, with plans for expansion into key enterprise workflows by 2026.

Infrastructure partners: Actis, Copenhagen Infrastructure Partners, DigitalBridge

Franklin Templeton partnered with Actis, Copenhagen Infrastructure Partners (CIP), and DigitalBridge to deliver private infrastructure solutions to individual investors. Global infrastructure needs are projected to surpass $94 trillion by 2040, representing an estimated $15 trillion capital opportunity for private investors. Franklin Templeton reported $1.64 trillion in assets under management as of August 31, 2025, for this initiative. The investment profile is expected to provide stable inflation-linked cash flows.

Here is a breakdown of the reported AUM for the infrastructure partners as of mid-2025:

Global network of broker-dealers and financial advisors

Franklin Resources, Inc. serves clients in over 150 countries. The company employs more than 1,600 investment professionals across its offices in major financial markets as of late 2025. The distribution of its assets under management as of July 2025 was weighted toward retail investors at 56% of AUM and institutional accounts at 41% of AUM. Furthermore, 31% of the company's AUM is invested in global/international strategies.

• Offices in major financial markets: 75+ years of investment experience.
• Investment professionals: Over 1,600.
• Client countries served: Over 150.

Custodians and fund administrators for operational support

For the Franklin Solana ETF (SOEZ), launched December 3, 2025, Coinbase Custody serves as the custodian. BNY acts as the administrator, transfer agent, and cash custodian for this product.

Technology vendors for digital platform development

On November 12, 2025, Franklin Templeton integrated its proprietary blockchain-integrated stack, the Benji Technology Platform, onto the Canton Network to give institutional clients access to tokenized investment products.

Franklin Resources, Inc. (BEN) - Canvas Business Model: Key Activities

You're looking at the core engine of Franklin Resources, Inc. as of late 2025. It's all about managing capital across a wide spectrum of strategies globally, which is where the numbers really tell the story of their day-to-day work.

Investment management across multiple asset classes globally is the foundation. As of November 30, 2025, Franklin Resources, Inc. reported preliminary Assets Under Management (AUM) totaling approximately $1.67 trillion. This AUM is spread across their specialist investment managers, covering equity, fixed income, alternatives, and multi-asset solutions, with a presence in over 150 countries. The firm has more than 1,600 investment professionals globally. Here is the breakdown of that massive pool of capital by asset class as of November 30, 2025:

The firm's alternative platform is a key focus area, having expanded its total alternative asset strategies to approximately $270 billion in aggregate as of September 30, 2025. This growth is directly tied to strategic acquisitions like Apera Asset Management, which closed in October 2025. Apera, a pan-European private credit firm, had over €5 billion in AUM as of September 30, 2025. This deal specifically grew Franklin Templeton's global alternative credit AUM to over $90 billion. The firm also has other alternative strategies, including private real estate via Clarion Partners and global secondary private equity through Lexington Partners.

Developing and distributing ETFs, SMAs, and tokenized products represents a significant activity stream. The firm achieved positive net flows in retail SMAs and ETFs, showing traction in these distribution channels. For context on product success, the second quarter of 2025 saw $4.1 billion in ETF net flows and record retail Separately Managed Account (SMA) inflows of $3.2 billion. Furthermore, the firm is active in the digital space, having formed a strategic partnership with Binance to develop digital asset initiatives, leveraging blockchain technology for capital markets.

Proprietary research and portfolio construction (Canvas platform) is an internal activity driving investment results. Franklin Resources continues to focus on growth and diversification, achieving positive net flows in products associated with Canvas®. The firm's fiscal year 2025 results showed a fiscal year net income of $524.9 million, compared to $464.8 million for the prior fiscal year. For the fourth quarter ended September 30, 2025, preliminary operating revenues reached $2,343.7 million, a 14% increase quarter-over-quarter.

Global sales and client service for institutional and retail channels is the distribution arm. As of July 2025, the company's AUM distribution was primarily weighted between retail investors at 56% of AUM and institutional accounts at 41% of AUM, with high-net-worth clients making up the remainder. The company returned $930 million to shareholders through dividends and share repurchases during the fiscal year, demonstrating capital management alongside client service. In the fourth quarter of 2025, the company repurchased 2.6 million shares of its common stock for a total cost of $67.1 million.

Franklin Resources, Inc. (BEN) - Canvas Business Model: Key Resources

You're looking at the core assets that power Franklin Resources, Inc.'s global operations as of late 2025. These aren't just line items; they are the engines driving fee generation and market access.

The single most significant resource is the sheer scale of assets managed. As of September 30, 2025, Franklin Resources, Inc. reported total Assets Under Management (AUM) of $1,661.2 billion. This massive pool of capital is the foundation for the management fees the firm collects.

For financial flexibility and strategic maneuvering, the balance sheet holds substantial liquidity. At the close of the fiscal year on September 30, 2025, Franklin Resources, Inc. reported $6.7 billion in cash and investments, including direct investments in consolidated investment products (CIPs). That's real financial optionality right there.

The firm's investment expertise is housed within its Specialist Investment Managers (SIMs). These groups operate with specialized philosophies but benefit from the backing of the larger Franklin Templeton platform. Key examples include:

• Western Asset: A globally integrated manager dedicated entirely to active fixed income asset management.
• Benefit Street Partners (BSP): A Specialized Investment Manager (SIM) focused on credit strategies, including liquid and illiquid credit, private debt, and special situations.

Distribution reach is another critical asset, allowing the firm to capture global capital flows. Franklin Resources, Inc., operating as Franklin Templeton, serves clients in over 150 countries. This global footprint is essential for scaling AUM across different regulatory and market environments.

Technology platforms are increasingly vital for both client experience and operational efficiency. Franklin Resources, Inc. relies on proprietary systems to maintain its competitive edge, especially in the digital asset space. The firm utilizes:

These platforms support everything from traditional fund administration to cutting-edge tokenized securities, which is a key differentiator for institutional clients. Honestly, the integration of Benji with networks like the Canton Blockchain shows a clear path for future business.

Franklin Resources, Inc. (BEN) - Canvas Business Model: Value Propositions

You're looking at the core offerings Franklin Resources, Inc., operating as Franklin Templeton, is pushing to clients as of late 2025. The value they deliver is built on a foundation of broad expertise, a push into private markets, and a clear commitment to emerging digital asset spaces. It's about being a single, resilient global platform.

Diversified investment expertise across equity, fixed income, and alternatives

Franklin Templeton combines deep expertise across public and private assets, using specialist investment managers to cover a wide spectrum of client needs. As of November 30, 2025, the total preliminary Assets Under Management (AUM) stood at $1.67 trillion. This AUM is spread across key asset classes, showing the breadth of their offering.

Here's a quick look at the asset class distribution as of November 30, 2025:

The firm has over 1,600 investment professionals globally, and this diversification is key to meeting varied client goals. For instance, Franklin Templeton fixed income alone has expertise in every sector, managing approximately $240 billion in AUM, and saw net inflows of $17.3 billion for fiscal year 2025, excluding Western Asset Management.

Access to institutional-quality private infrastructure for private wealth

Franklin Templeton is actively working to democratize alternative investments, specifically targeting private infrastructure for wealth management clients. This is a direct response to market trends, as global infrastructure requirements are projected to surpass $94 trillion by 2040, creating an estimated $15 trillion investment opportunity for private capital.

To deliver this, Franklin Resources entered a strategic partnership with three institutional infrastructure investment firms:

• Copenhagen Infrastructure Partners ("CIP")
• DigitalBridge
• Actis (part of the Sustainable Infrastructure business at General Atlantic)

This collaboration aims to give private wealth clients differentiated access to high-growth areas like energy security, electrification, digitalization, data centers, and renewable energy, targeting stable, inflation-linked cash flows. This push into alternatives is showing momentum; the company was ahead of its plan for alternatives as of November 2025.

Customized portfolio solutions via the Canvas indexing platform

The Canvas platform is a component of Franklin Templeton's multi-asset solutions, designed to help create customized portfolio outcomes. You can see its traction in the flow data; multi-asset net inflows were $3.3 billion in the second quarter of fiscal year 2025, led by positive net flows into solutions including Canvas. The firm noted in November 2025 that they were ahead of plan for Canvas, indicating this platform is a key area of focus for delivering tailored solutions. This capability supports the broader strategy of offering outcome-oriented solutions across segments.

Global scale and local market knowledge for international investors

Franklin Resources, Inc. operates as Franklin Templeton, serving clients in over 155 countries, which speaks directly to its global scale. With offices in major financial markets around the world, the firm combines this reach with the distinct expertise of its specialist investment teams. This structure allows them to offer boutique specialization on a global scale, which is increasingly attractive as asset owners look to partner with fewer firms capable of delivering across asset classes and regions.

Innovation in digital assets, including tokenized money market funds

Franklin Templeton is making concrete moves in the digital asset space, viewing new blockchain technologies as potential sources of capital appreciation. The firm has a dedicated digital assets research function, leveraging fundamental "tokenomics" analysis and a team active in the ecosystem since 2018. They launched the first US registered mutual fund to use public blockchains to process transactions and record share ownership.

Recent product innovations include:

• The launch of the Franklin XRP ETF, listed on NYSE Arca.
• Expansion of the Franklin Crypto Index ETF (EZPZ) holdings to include XRP, Solana, Dogecoin, Cardano, Stellar Lumens, and Chainlink, alongside Bitcoin and Ether.

The Franklin Bitcoin ETF (EZBC) reported Total Net Assets of $517.33 Million as of November 26, 2025. The firm's strategy is to provide institutional-grade access to these emerging blockchain investment products, positioning itself to benefit from growing institutional demand.

Finance: draft 13-week cash view by Friday.

Franklin Resources, Inc. (BEN) - Canvas Business Model: Customer Relationships

You're looking at how Franklin Resources, Inc., operating as Franklin Templeton, manages its connections with its diverse client base as of late 2025. The firm serves clients in over 150 countries, supported by more than 1,600 investment professionals globally.

The relationship strategy clearly segments across channels, emphasizing specialized expertise for wealth managers while maintaining high-touch service for institutional mandates. The total preliminary Assets Under Management (AUM) stood at $1.67 trillion as of November 30, 2025.

Dedicated alternative specialist teams for the wealth channel

Franklin Templeton emphasizes specialization, with its specialist investment managers bringing extensive capabilities across asset classes, including alternatives. The firm reported its Alternative AUM reached $269.3 billion as of November 30, 2025. The focus on this area is underscored by the fact that the firm achieved positive net flows in retail Separately Managed Accounts (SMAs), Exchange Traded Funds (ETFs), and its Canvas® platform, suggesting dedicated support structures are in place for these channels.

Personalized portfolio development through close client partnership

The approach centers on a portfolio-centric strategy, vital for managing wealth in the current environment where sound portfolio decisions are more likely to drive effective wealth management than spectacular single-asset returns. This partnership model is supported by the firm's broad expertise across equity, fixed income, alternatives, and multi-asset solutions, allowing for tailored construction. The firm's overall AUM is heavily weighted toward the US market, which accounted for $1,171.5 billion of the total AUM as of September 30, 2025, while international markets held $489.7 billion.

Here's a look at the AUM breakdown, which reflects the underlying assets managed through these client relationships:

High-touch service for institutional clients and consultants

Franklin Templeton maintains a commitment to high-quality client service, which is critical for its institutional segment. The firm's institutional AUM had increased from 25% to 45% of total AUM over a prior period, indicating a significant focus on this segment. The firm's mission explicitly includes delivering investment management expertise alongside wealth management and technology solutions, suggesting a differentiated service level for sophisticated clients and consultants. The preliminary long-term net flows for November 2025 showed $1 billion of net inflows when excluding Western Asset Management, pointing to successful relationship retention or growth in other institutional/wholesale areas.

Digital self-service tools and educational content

The firm integrates technology solutions into its client service model. This is evidenced by the focus on expanding its ETF suite, including the launch of the Franklin Solana ETF (SOEZ) in December 2025, showing engagement with emerging digital asset client interests. The overall strategy recognizes that technology solutions are a core part of helping clients achieve better outcomes.

The digital engagement supports client understanding through:

• Investment management expertise delivery.
• Technology solutions integration.
• Educational content supporting digital asset products.
• Platform access for retail and ETF flows.

Franklin Resources, Inc. (BEN) - Canvas Business Model: Channels

You're looking at how Franklin Resources, Inc., operating as Franklin Templeton, gets its investment products and services into the hands of clients. This is a multi-pronged approach, balancing traditional intermediary relationships with direct digital engagement.

Global network of financial advisors and third-party distributors

This is the backbone for much of the retail and intermediary business. Franklin Resources, Inc. serves clients in over 150 countries. The firm has more than 1,600 investment professionals globally to support these distribution efforts. A significant portion of their U.S. mutual funds utilize distribution plans under Rule 12b-1, which compensates these third-party channels for sales and marketing efforts on the funds' behalf. As of September 30, 2024, the international business alone culminated in over $500 billion in Assets Under Management (AUM).

Direct institutional sales force for large mandates

The direct sales force targets large mandates from institutions. As of the first quarter of fiscal year 2025, the institutional pipeline of won-but-unfunded mandates stood at $18.1 billion, showing the size of the sales team's current booked business awaiting funding. This pipeline was diversified across asset classes and specialist investment managers.

Exchange-Traded Funds (ETFs) and Separate Managed Accounts (SMAs)

These vehicles are key distribution points, often accessed via the advisor network. Retail SMAs saw positive net flows in fiscal year 2025, continuing a trend where they achieved record highs in AUM as of September 30, 2024. The Alternative AUM, which flows through various vehicles including SMAs, expanded to a record $270 billion as of September 30, 2025. The firm's multi-asset strategies also saw strong net inflows, contributing to total multi-asset net inflows of $12.8 billion for fiscal year 2025.

Here's the AUM breakdown as of the latest reported month-end, November 30, 2025, showing the scale of assets managed across the various investment capabilities that are distributed:

Proprietary digital platforms (Canvas, Benji) and websites

The Canvas platform is central to the Custom Indexing offering, providing an intuitive system for advisors. As of June 30, 2025, the Canvas platform accounted for $13.8 billion in SMA AUM. Furthermore, multi-asset net inflows for fiscal year 2025 of $12.8 billion were led by positive net flows into Canvas, among others. The Benji technology platform demonstrates the firm's digital reach, having powered the Franklin OnChain U.S. Government Money Fund, which held nearly $732 million in on-chain assets across networks like Stellar, Ethereum, Arbitrum, and Solana.

Direct-to-consumer online investment platforms

While the primary focus appears to be through intermediaries, the digital presence supports direct engagement. The firm's websites, including investors.franklinresources.com, serve as a primary source for information and access. The company's overall strategy is to help clients achieve better outcomes through investment management expertise, wealth management, and technology solutions, which inherently supports direct client interaction where legally and practically feasible.

• Clients served across more than 150 countries.
• Canvas platform AUM reached $13.8 billion as of June 30, 2025.
• Institutional pipeline of won-but-unfunded mandates was $18.1 billion (Q1 FY2025).
• Benji platform supports on-chain assets near $732 million.

Finance: draft 13-week cash view by Friday.

Franklin Resources, Inc. (BEN) - Canvas Business Model: Customer Segments

You're looking at the core client base for Franklin Resources, Inc. as of late 2025. The firm serves a wide spectrum, from massive pension funds to individual retail accounts across the globe. Honestly, understanding this mix is key to seeing where their revenue engine is running.

The total preliminary Assets Under Management (AUM) as of November 30, 2025, stood at $1,674.5 billion. This figure reflects the scale across which these segments operate.

Institutional Investors (Pension Funds, Endowments, Trusts)

This segment represents a significant portion of the firm's mandate. Based on the latest available breakdown, institutional clients account for 42% of the total AUM. These mandates often involve long-term, large-scale asset management services for entities like public and private pension funds, university endowments, and charitable trusts.

Individual Retail Investors Globally

Individual retail investors form the largest single client group by percentage. As of the Q2 2025 reporting, retail investors accounted for 55% of AUM. This group accesses Franklin Resources, Inc.'s products through various vehicles, including mutual funds and exchange-traded products (ETPs). The firm serves clients in over 150 countries.

High-Net-Worth and Private Wealth Clients

While smaller in percentage terms compared to the other two main groups, high-net-worth (HNW) clients are a distinct focus, often served through specialized channels like Fiduciary Trust International. This segment represented 3% of AUM as of Q2 2025.

Global Clients, with Nearly $500 Billion AUM Outside the US

Franklin Resources, Inc. maintains a truly global footprint. While the U.S. is the dominant market, international business is substantial. Based on the latest total AUM of $1,674.5 billion as of November 30, 2025, and using the geographic split from Q2 2025, the non-U.S. portion is estimated to be around $502.4 billion (30% of total AUM). This aligns closely with the target of nearly $500 billion outside the US.

Here's the quick math on the geographic split based on the latest total AUM:

What this estimate hides is the exact, real-time split for November 2025, but the structure is clear.

Financial Professionals and Wealth Management Firms

This group acts as a critical distribution channel, facilitating access to Franklin Resources, Inc.'s products for both institutional and retail clients. While not explicitly broken out as a separate AUM percentage in the latest filings, their role is embedded within the servicing of the other segments. The firm's offerings, including its range of ETPs and mutual funds, are designed to be utilized by these intermediaries.

The client base composition can be summarized by the primary categories:

• Institutional investors: 42% of AUM.
• Individual retail investors: 55% of AUM.
• High-net-worth individuals: 3% of AUM.
• Global reach: Serving clients in over 150 countries.

Finance: draft 13-week cash view by Friday.

Franklin Resources, Inc. (BEN) - Canvas Business Model: Cost Structure

You're looking at the major drains on Franklin Resources, Inc.'s operating income, the costs that keep the global investment machine running as of late 2025. For an asset manager, people and technology are the biggest levers, so you'd expect those line items to be substantial.

Compensation and benefits for over 1,600 investment professionals

Compensation is the single largest cost component, which makes sense when you consider the talent required to manage over $1.6 trillion in assets. For the fiscal year ended September 30, 2025, Franklin Resources, Inc. reported $3,818.2 million in compensation and benefits expense. This figure reflects the cost of retaining the firm's investment talent, which includes more than 1,600 investment professionals globally. Looking at a quarterly projection, management guided for compensation and benefits to be approximately $880 million for the fourth quarter of 2025, which included an assumption of $50 million in performance fees at a 55% payout. Honestly, that's a massive fixed and variable cost base to cover.

Technology infrastructure and digital transformation spending

Keeping the digital plumbing modern is non-negotiable in this business. Franklin Resources, Inc. has been focused on unifying its investment management technology platform across public market asset classes to reduce complexity and long-term capital expenses. For the fourth quarter of 2025, the guidance for Information Systems and Technology (IS&T) spending was set at $155 million. This spending supports everything from trading systems to client-facing digital portals.

Distribution and marketing expenses to support global sales

Getting the word out and supporting global sales channels requires significant investment. For the full fiscal year ended September 30, 2025, the reported Sales, distribution and marketing expense totaled $2,010.9 million. This is a direct cost associated with supporting global sales efforts, though the company often notes that sales and distribution fees collected often cover a large portion of these marketing costs.

General and administrative costs for global operations

Running a global operation means substantial overhead for compliance, finance, HR, and general corporate functions. The General, administrative and other expense for the fiscal year ended September 30, 2025, was $774.5 million. For the fourth quarter alone, this category was reported at $222.8 million.

Acquisition and integration costs for acquired firms (e.g., Putnam, Apera)

Growth through acquisition is a key part of the strategy, but it comes with integration costs. While specific, isolated integration costs for the latest deals aren't always broken out as a single line item, the impact is visible. For instance, the October 2025 acquisition of Apera Asset Management, a pan-European private credit firm, was strategic, increasing Franklin Resources, Inc.'s global alternative credit assets under management by over $90 billion, bringing total alternative strategies to nearly $270 billion as of September 30, 2025. The prior inclusion of Putnam Investments also impacted the expense base in 2025, with management noting adjusted expenses were substantially similar to fiscal year 2024, less than a 1% difference, despite the additional quarter of Putnam.

Here's a quick look at the major operating expense components for the fiscal year ended September 30, 2025, based on preliminary reported figures:

You can see that personnel costs dominate the structure. If you're looking for where efficiency gains might come from, it's usually in G&A or technology optimization, but compensation is sticky.

• Compensation and benefits for FY 2025: $3,818.2 million
• Sales, distribution and marketing for FY 2025: $2,010.9 million
• General, administrative and other for FY 2025: $774.5 million
• Q4 2025 IS&T spending guidance: $155 million
• Investment professionals count: Over 1,600

Finance: draft 13-week cash view by Friday.

Franklin Resources, Inc. (BEN) - Canvas Business Model: Revenue Streams

You're looking at how Franklin Resources, Inc. actually brings in the money to run its global asset management platform. Honestly, it all comes down to the assets they manage, but the mix is shifting, which changes the revenue quality.

The primary source is definitely investment management fees, which are directly tied to Assets Under Management (AUM). For the fiscal year ending September 30, 2025, the average AUM Franklin Resources managed was $1.61 trillion. The fee rate on that base, excluding the variable performance fees, was an adjusted effective fee rate of 37.5 basis points. This is the engine room of their revenue.

When we look at the top line for the full fiscal year 2025, the reported adjusted operating revenues totaled $6.7 billion. This figure reflects a 2.1% increase from the prior year, helped by higher average AUM and those performance fees we'll discuss next. For context, the total annual revenue for fiscal year 2025 was reported as $8.77B.

Performance fees, which are the variable component tied to investment outperformance, added a significant, though less predictable, amount. For fiscal year 2025, adjusted performance fees totaled $364.6 million. That's up from $293.4 million the year before, showing a strong performance component in the year's results.

Here's a quick look at the key components making up the revenue base for fiscal year 2025:

You also see revenue coming from distribution and service fees from fund sales. While the exact dollar amount for this specific line item isn't broken out in the same way as the main components, the growth in certain product lines points to this stream's activity. For instance, the firm saw positive net flows in its ETF offerings and its Canvas AUM more than tripled since 2023.

The push into less liquid assets is key because it often commands higher fees from alternative and private market strategies. This is a strategic focus area. As of the end of fiscal year 2025, the firm reported its alternative AUM reached a record $270 billion. To give you a sense of the asset mix driving these fee structures, the Fixed Income AUM was $438.7 billion at year-end, while Equity AUM stood at $686.2 billion.

The revenue streams are supported by the underlying asset base, which saw a shift in composition during the year:

• Ending AUM as of September 30, 2025: $1.66 trillion.
• Equity AUM grew to $686.2 billion.
• Fixed Income AUM declined to $438.7 billion.
• Alternative AUM reached $270 billion.
• Long-term net outflows for the fiscal year were $97.4 billion.

The mix matters; higher allocations to alternatives generally mean stickier, higher-margin fee revenue, which helps offset pressure on traditional public market fees.