XML 26 R15.htm IDEA: XBRL DOCUMENT v3.24.4

Consolidated Investment Products

3 Months Ended

Dec. 31, 2024

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 voting interest entities and variable interest entities (“VIEs”). The Company had 75 CIPs, including 22 CLOs, as of December 31, 2024 and 77 CIPs, including 22 CLOs, as of September 30, 2024.

The balances related to CIPs included in the Company’s consolidated balance sheets were as follows:

(in millions)						December 31, 2024						September 30, 2024
Assets
Cash and cash equivalents						$	837.1					$	1,099.4
Receivables						141.5						217.5
Investments, at fair value						11,897.4						11,034.9
Total Assets						$	12,876.0					$	12,351.8
Liabilities
Accounts payable and accrued expenses						$	861.2					$	861.3
Debt						9,055.3						9,341.5
Other liabilities						11.2						39.9
Total liabilities						9,927.7						10,242.7
Redeemable Noncontrolling Interests						1,466.5						687.8
Stockholders’ Equity
Franklin Resources, Inc.’s interests						1,098.0						1,080.9
Nonredeemable noncontrolling interests						383.8						340.4
Total stockholders’ equity						1,481.8						1,421.3
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity						$	12,876.0					$	12,351.8

The CIPs did not have a significant impact on net income attributable to the Company during the three months ended December 31, 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 1						Level 2						Level 3						NAV as a Practical Expedient						Total
as of December 31, 2024
Assets
Cash and cash equivalents of CLOs						$	519.3					$	—					$	—					$	—					$	519.3
Receivables of CLOs						—						80.8						—						—						80.8
Investments
Equity and debt securities						485.5						1,501.9						573.5						124.0						2,684.9
Loans						—						9,212.3						0.2						—						9,212.5
Total Assets Measured at Fair Value						$	1,004.8					$	10,795.0					$	573.7					$	124.0					$	12,497.5

(in millions)						Level 1						Level 2						Level 3						NAV 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 securities						229.7						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 a redeemable U.S. equity fund, a redeemable global hedge fund and nonredeemable private debt funds. These investments were as follows:

(in millions)						December 31, 2024						September 30, 2024
Nonredeemable investments1
Investments with unknown liquidation periods						$	53.8					$	49.0
Redeemable investments2						70.2						138.1
Unfunded commitments3						42.8						42.8

_______________

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 $9.9 million based on its ownership percentage in the CIPs, at December 31, 2024 and September 30, 2024.

Changes in Level 3 assets were as follows: 

(in millions)						Equity and Debt Securities
for the three months ended December 31, 2024
Balance at October 1, 2024						$	550.1
Gains included in investment and other income (losses) of consolidated investment products, net						22.0
Purchases						9.2
Sales						(11.6)
Net consolidations						3.8
Balance at December 31, 2024						$	573.5
Change in unrealized gains included in net income relating to assets held at December 31, 2024						$	22.3

(in millions)						Equity and Debt Securities												Loans						Total  Level 3 Assets
for the three months ended December 31, 2023
Balance at October 1, 2023						$	584.9											$	—					$	584.9
Losses included in investment and other income (losses) of consolidated investment products, net						(38.1)												—						(38.1)
Purchases						3.8												—						3.8
Sales						(0.2)												—						(0.2)
Transfers into Level 3						1.1												0.6						1.7
Balance at December 31, 2023						$	551.5											$	0.6					$	552.1
Change in unrealized losses included in net income relating to assets held at December 31, 2023						$	(37.8)											$	—					$	(37.8)

Valuation techniques and significant unobservable inputs used in Level 3 fair value measurements were as follows:

(in millions)

as of December 31, 2024

Fair Value

Valuation Technique

Significant Unobservable Inputs

Range (Weighted Average1)

Equity and debt securities

$

302.2

Market comparable companies

Enterprise value/ Revenue multiple

1.4–28.7 (11.0)

Discount for lack of marketability

5.8%–11.8% (8.0%)

219.1

Market pricing

Private sale pricing

$0.01–$1,120.00 ($82.93) per share

Discount for lack of marketability

9.7%–13.3% (10.4%)

52.2

Discounted cash flow

Discount rate

6.3%–6.4% (6.3%)

(in millions)

as of September 30, 2024

Fair Value

Valuation Technique

Significant Unobservable Inputs

Range (Weighted Average1)

Equity and debt securities

$

291.6

Market comparable companies

Enterprise value/ Revenue multiple

1.2–22.8 (10.9)

Discount for lack of marketability

0.1%–10.4% (8.1%)

214.5

Market pricing

Private 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 flow

Discount rate

6.8%

__________________

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) as of December 31, 2024, 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) as of December 31, 2024, 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						December 31, 2024												September 30, 2024
												Carrying Value						Estimated Fair Value						Carrying Value						Estimated Fair Value
Financial Asset
Cash and cash equivalents						1						$	317.8					$	317.8					$	335.1					$	335.1
Financial Liabilities
Debt of CLOs1						2 or 3						$	9,055.3					$	8,858.1					$	9,341.5					$	9,167.3

__________________

1Substantially all was Level 2.

Debt

Debt of CLOs totaled $9,055.3 million and $9,341.5 million at December 31, 2024 and September 30, 2024. The debt had fixed and floating interest rates ranging from 2.39% to 13.68% with a weighted-average effective interest rate of 7.30% at December 31, 2024, 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.

The contractual maturities for the debt of CLOs at December 31, 2024 were as follows:

(in millions)
for the fiscal years ending September 30,						Amount
2025 (remainder of year)						$	120.1
2026						—
2027						—
2028						—
2029						—
Thereafter						8,935.2
Total						$	9,055.3

Collateralized Loan Obligations

The unpaid principal balance and fair value of the investments of CLOs were as follows:

(in millions)						December 31, 2024						September 30, 2024
Unpaid principal balance						$	9,420.8					$	9,371.9
Difference between unpaid principal balance and fair value						(24.1)						(19.8)
Fair Value						$	9,396.7					$	9,352.1

Investments 90 days or more past due were immaterial at December 31, 2024 and September 30, 2024.

The Company recognized $11.7 million and $20.8 million of net gains during the three months ended December 31, 2024 and 2023, related to its own economic interests in the CLOs. The aggregate principal amount due of the debt of CLOs was $9,015.0 million and $9,282.8 million at December 31, 2024 and September 30, 2024.

X

- References

No definition available.

+ Details

Name:	ben_ConsolidatedInvestmentProductsAbstract
Namespace Prefix:	ben_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for Consolidated Investment Products ("CIPs"), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the CIPs, terms of arrangements, amounts and classification of the CIPs assets and liabilities.

+ References

No definition available.

+ Details

Name:	ben_ConsolidatedInvestmentProductsTextBlock
Namespace Prefix:	ben_
Data Type:	dtr-types1:textBlockItemType
Balance Type:	na
Period Type:	duration