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Franklin Resources, Inc. has submitted its 10-K filing for the fiscal year ended September 30, 2024.
The filing includes financial statements showing total operating revenues of $8,478.0 million, an increase from $7,849.4 million in the previous year. This increase was primarily driven by higher investment management fees and sales and distribution fees.
Operating income for the year was $407.6 million, a decrease from $1,102.3 million the previous year, attributed to higher operating expenses, including compensation and benefits, sales distribution and marketing, and information systems and technology.
Net income attributable to Franklin Resources, Inc. was $464.8 million, down from $882.8 million in the prior year. The decline in net income was impacted by an impairment of intangible assets related to Western Asset Management Company (BEN+0.45%).
Assets under management (AUM) increased by 22% to $1,678.6 billion as of September 30, 2024, compared to $1,374.2 billion the previous year. The increase was driven by net market appreciation and the acquisition of Putnam Investments.
The company's effective income tax rate for the year was 26.2%, compared to 23.3% in the previous year, reflecting changes in the mix of earnings in different tax jurisdictions.
Franklin Resources completed the acquisition of Putnam Investments on January 1, 2024, for $1,234.4 million, including 31.6 million shares of common stock and cash consideration. The acquisition is expected to enhance the company's growth in the retirement sector.
During the fiscal year, Franklin Resources repurchased 12.0 million shares of its common stock at a cost of $274.4 million. The company also declared regular dividends of $1.24 per share.
The filing discusses ongoing investigations into certain past trading activities at Western Asset Management by the SEC and DOJ, which have impacted the company's financial performance and reputation.
Franklin Resources continues to focus on providing investment management and related services globally, with a commitment to delivering strong investment performance and high-quality client service.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Franklin Resources Inc. annual 10-K report dated November 12, 2024. To report an error, please email earnings@qz.com.