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Consolidated Investment Products
 12 Months Ended
Sep. 30, 2025
Consolidated Investment Products [Abstract]  
Consolidated Investment Products Consolidated Investment Products
CIPs consist of mutual and other investment funds, limited partnerships and similar structures, and CLOs, all of which are sponsored by the Company, and include both VOEs and VIEs.
The balances related to CIPs included in the Company’s consolidated balance sheets were as follows:
(in millions)
as of September 30, 20252024
Assets
Cash and cash equivalents$485.8 $1,099.4 
Receivables313.1 217.5 
Investments, at fair value12,278.8 11,034.9 
Total Assets$13,077.7 $12,351.8 
Liabilities
Accounts payable and accrued expenses$1,063.0 $861.3 
Debt9,937.3 9,341.5 
Other liabilities17.5 39.9 
Total liabilities11,017.8 10,242.7 
Redeemable Noncontrolling Interests289.6 687.8 
Stockholders’ Equity
Franklin Resources, Inc.’s interests1,220.6 1,080.9 
Nonredeemable noncontrolling interests549.7 340.4 
Total stockholders’ equity1,770.3 1,421.3 
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity$13,077.7 $12,351.8 
The consolidation of CIPs did not have a significant impact on net income attributable to the Company in fiscal years 2025, 2024 and 2023.
The Company has no right to the CIPs’ assets, other than its direct equity investments in them and investment management and other fees earned from them. The debt holders of the CIPs have no recourse to the Company’s assets beyond the level of its direct investment, therefore the Company bears no other risks associated with the CIPs’ liabilities.
Fair Value Measurements
Assets of CIPs measured at fair value on a recurring basis were as follows: 
(in millions)Level 1Level 2Level 3NAV as a
Practical
Expedient		Total
as of September 30, 2025
Assets
Cash and cash equivalents of CLOs$472.1 $— $— $— $472.1 
Receivables of CLOs— 113.0 — — 113.0 
Investments
Equity and debt securities393.2 731.5 601.0 189.1 1,914.8 
Loans— 10,354.1 9.9 — 10,364.0 
Total Assets Measured at Fair Value$865.3 $11,198.6 $610.9 $189.1 $12,863.9 
(in millions)Level 1Level 2Level 3NAV as a
Practical
Expedient		Total
as of September 30, 2024
Assets
Cash and cash equivalents of CLOs$764.3 $— $— $— $764.3 
Receivables of CLOs— 149.6 — — 149.6 
Investments
Equity and debt securities229.7 889.4 550.1 187.1 1,856.3 
Loans— 9,178.1 0.5 — 9,178.6 
Total Assets Measured at Fair Value$994.0 $10,217.1 $550.6 $187.1 $11,948.8 
Investments for which fair value was estimated using reported NAV as a practical expedient consist of nonredeemable private debt and equity funds, a redeemable global hedge fund and a redeemable U.S. equity fund. These investments were as follows:
(in millions)
as of September 30,20252024
Nonredeemable investments1
Investments with unknown liquidation periods$114.7 $49.0 
Redeemable investments2
74.4 138.1 
Unfunded commitments3
14.0 42.8 
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1The investments are expected to be returned through distributions over the life of the funds as a result of liquidations of the funds’ underlying assets.
2Investments are redeemable on a monthly basis and liquidation periods are unknown.
3Of the total unfunded commitments, the Company was contractually obligated to fund $5.3 million and $9.9 million based on its ownership percentage in the CIPs, at September 30, 2025 and 2024.
Changes in Level 3 assets of equity and debt securities were as follows: 
(in millions)
as of September 30,20252024
Balance at beginning of year$550.1 $584.9 
Acquisition— 29.6 
Gains (losses) included in investment and other income of consolidated investment products, net50.5 (80.4)
Purchases60.9 57.2 
Sales(33.6)(29.8)
Net consolidations (deconsolidations)12.2 (12.5)
Transfers into Level 30.2 1.1 
Transfers out of Level 3(39.3)— 
Balance at End of Year
$601.0 $550.1 
Change in unrealized gains (losses) included in net income relating to assets held at end of year$23.0 $(50.9)
Valuation techniques and significant unobservable inputs used in Level 3 fair value measurements were as follows:
(in millions)
as of September 30, 2025Fair ValueValuation TechniqueSignificant Unobservable Inputs
Range (Weighted Average1)
Equity and debt securities$302.0 Market pricingPrivate sale pricing
$0.27–$2,120.00 ($176.53) per share
Discount for lack of marketability
5.0%–75.0% (23.9%)

225.9 Market comparable companiesEnterprise value/ Revenue multiple
1.4–21.0 (9.5)
Discount for lack of marketability
6.0%–11.0% (8.5%)
54.4 Discounted cash flowDiscount rate
6.5%–13.0% (6.8%)
18.7 Option pricing modelVolatility
34.0%–60.9% (38.2%)
Discount for lack of marketability
9.1%–13.5% (9.4%)
(in millions)
as of September 30, 2024Fair ValueValuation TechniqueSignificant Unobservable Inputs
Range (Weighted Average1)
Equity and debt securities
$291.6 Market comparable companiesEnterprise value/ Revenue multiple
1.2–22.8 (10.9)
Discount for lack of marketability
0.1%–10.4% (8.1%)
214.5 Market pricingPrivate sale pricing
$0.01–$1,000.00 ($73.04) per share
Discount for lack of marketability
9.8%–17.5% (11.5%)
44.0 Discounted cash flowDiscount rate6.8%
__________________
1Based on the relative fair value of the instruments.
If the relevant significant inputs used in the market-based valuations, other than discount for lack of marketability, were independently higher (lower), the resulting fair value of the assets would be higher (lower). If the relevant significant inputs used in the discounted cash flow, as well as the discount for lack of marketability used in the market-based valuations, were independently higher (lower), the resulting fair value of the assets would be lower (higher).
Financial instruments of CIPs that were not measured at fair value were as follows:
(in millions)Fair Value
Level		20252024
Carrying
Value		Estimated
Fair Value		Carrying
Value		Estimated
Fair Value
as of September 30,
Financial Asset
Cash and cash equivalents 1$13.7 $13.7 $335.1 $335.1 
Financial Liabilities
Debt of CLOs1
2 or 39,937.3 9,786.0 9,341.5 9,167.3 
__________________
1Substantially all was Level 2.
Debt
Debt of CLOs totaled $9,937.3 million and $9,341.5 million at September 30, 2025 and September 30, 2024. The debt had fixed and floating interest rates ranging from 2.39% to 12.26% with a weighted-average effective interest rate of 6.00% at September 30, 2025, and from 2.39% to 13.73% with a weighted-average effective interest rate of 7.36% at September 30, 2024. The floating rates were based on the Secured Overnight Financing Rate and Euro Interbank Offered Rate.
The contractual maturities for debt of CLOs at September 30, 2025 were as follows: 
(in millions)
for the fiscal years ending September 30,Amount
2026$476.1 
202783.8 
2028— 
2029— 
2030— 
Thereafter9,377.4 
Total$9,937.3 
Collateralized Loan Obligations
The unpaid principal balance and fair value of the investments of CLOs were as follows:
(in millions)
as of September 30,20252024
Unpaid principal balance$10,641.0 $9,371.9 
Difference between unpaid principal balance and fair value(43.3)(19.8)
Fair Value$10,597.7 $9,352.1 
Investments 90 days or more past due were immaterial at September 30, 2025 and September 30, 2024.
During fiscal years 2025 and 2024, the Company recognized $48.6 million and $59.7 million of net gains related to its own economic interests in the CLOs. The aggregate principal related to the debt of CLOs was $9,958.6 million and $9,282.8 million at September 30, 2025 and 2024.