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Can Franklin Templeton's AUM Growth Keep Driving Earnings?
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Key Takeaways
Franklin Templeton's AUM reached a record $1.79T, with long-term net inflows of $18.4B.
Investment management fees rose 13.7% as AUM growth boosted revenues and alternatives expanded.
Stoneshield deal could add $9B in AUM and strengthen European real estate and infrastructure capabilities.
Franklin Templeton (BEN - Free Report) continues to benefit from solid assets under management (AUM) growth, aided by improving net flows, favorable market performance and expansion across private markets and alternative investments. With AUM reaching record levels, the growing asset base could remain an important driver of fee revenues and earnings. However, elevated expenses and sensitivity to market movements may limit the extent of bottom-line growth.
At the end of the fiscal third quarter on June 30, 2026, Franklin Templeton’s AUM reached a record $1.79 trillion, up 11.2% year over year. Average AUM climbed 11.8% to $1.75 trillion. More importantly, the company recorded $18.4 billion in long-term net inflows, a notable turnaround from long-term net outflows of $9.3 billion in the year-ago quarter.
AUM growth is particularly important for Franklin Templeton because investment management fees represent its largest revenue source. In the fiscal third quarter, investment management fees increased 13.7% year over year to $1.87 billion, while total operating revenues advanced 14.3% to $2.36 billion. The increasing contribution from alternative assets could further support the revenue mix. Alternative AUM reached $301.6 billion in August, up 1.8% from July.
Franklin Templeton has been expanding in private credit, infrastructure and real estate, areas that continue to attract client demand. Its planned acquisition of a majority stake in Stoneshield Capital should further strengthen this business. The transaction is expected to add $9 billion in AUM and expand Franklin Templeton’s European real estate and infrastructure capabilities. The deal is also expected to support fee-earning AUM growth across institutional and wealth-management channels.
Overall, Franklin Templeton’s improving net flows, record AUM and growing alternatives franchise provide support for continued earnings growth. For the next 3-5 years, BEN’s earnings are expected to rise 30.4%.
AUM Performance of BEN’s Peers
Apollo Global Management’s (APO - Free Report) AUM witnessed a CAGR of 19.6% over the past three years (2022-2025), with the rising trend continuing in the first half of 2026. The increase in Apollo’s AUM is primarily driven by growth in its retirement services client assets, subscriptions across the platform and new financing facilities.
By 2029, Apollo Global Management expects its total AUM to reach $1.5 trillion by scaling its private equity business.
Similarly, Blackstone Inc. (BX - Free Report) has been witnessing a rise in its AUM balance. Over the past five years (2020-2025), total AUM and fee-earning AUM have recorded a CAGR of 15.6% and 14.4%, respectively. The total AUM rose 12% year over year in the first half of 2026.
Blackstone’s robust AUM base supports its long-term earnings growth by providing a larger pool of fee-generating capital across its private equity, real estate, credit and infrastructure platforms.
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Can Franklin Templeton's AUM Growth Keep Driving Earnings?
Key Takeaways
Franklin Templeton (BEN - Free Report) continues to benefit from solid assets under management (AUM) growth, aided by improving net flows, favorable market performance and expansion across private markets and alternative investments. With AUM reaching record levels, the growing asset base could remain an important driver of fee revenues and earnings. However, elevated expenses and sensitivity to market movements may limit the extent of bottom-line growth.
At the end of the fiscal third quarter on June 30, 2026, Franklin Templeton’s AUM reached a record $1.79 trillion, up 11.2% year over year. Average AUM climbed 11.8% to $1.75 trillion. More importantly, the company recorded $18.4 billion in long-term net inflows, a notable turnaround from long-term net outflows of $9.3 billion in the year-ago quarter.
AUM growth is particularly important for Franklin Templeton because investment management fees represent its largest revenue source. In the fiscal third quarter, investment management fees increased 13.7% year over year to $1.87 billion, while total operating revenues advanced 14.3% to $2.36 billion. The increasing contribution from alternative assets could further support the revenue mix. Alternative AUM reached $301.6 billion in August, up 1.8% from July.
Franklin Templeton has been expanding in private credit, infrastructure and real estate, areas that continue to attract client demand. Its planned acquisition of a majority stake in Stoneshield Capital should further strengthen this business. The transaction is expected to add $9 billion in AUM and expand Franklin Templeton’s European real estate and infrastructure capabilities. The deal is also expected to support fee-earning AUM growth across institutional and wealth-management channels.
Overall, Franklin Templeton’s improving net flows, record AUM and growing alternatives franchise provide support for continued earnings growth. For the next 3-5 years, BEN’s earnings are expected to rise 30.4%.
AUM Performance of BEN’s Peers
Apollo Global Management’s (APO - Free Report) AUM witnessed a CAGR of 19.6% over the past three years (2022-2025), with the rising trend continuing in the first half of 2026. The increase in Apollo’s AUM is primarily driven by growth in its retirement services client assets, subscriptions across the platform and new financing facilities.
By 2029, Apollo Global Management expects its total AUM to reach $1.5 trillion by scaling its private equity business.
Similarly, Blackstone Inc. (BX - Free Report) has been witnessing a rise in its AUM balance. Over the past five years (2020-2025), total AUM and fee-earning AUM have recorded a CAGR of 15.6% and 14.4%, respectively. The total AUM rose 12% year over year in the first half of 2026.
Blackstone’s robust AUM base supports its long-term earnings growth by providing a larger pool of fee-generating capital across its private equity, real estate, credit and infrastructure platforms.