CIPs consist of mutual and other investment funds, limited partnerships and similar structures and collateralized loan obligations (“CLOs”), all of which are sponsored by the Company, and include both voting interest entities and variable interest entities (“VIEs”).


(in millions)	June 30, 2025		September 30, 2024
Assets
Cash and cash equivalents	$	703.1	$	1,099.4
Receivables	507.9		217.5
Investments, at fair value	11,420.7		11,034.9
Total Assets	$	12,631.7	$	12,351.8

Liabilities
Accounts payable and accrued expenses	$	1,111.3	$	861.3
Debt	9,577.6		9,341.5
Other liabilities	14.2		39.9
Total liabilities	10,703.1		10,242.7
Redeemable Noncontrolling Interests	541.1		687.8
Stockholders’ Equity
Franklin Resources, Inc.’s interests	928.8		1,080.9
Nonredeemable noncontrolling interests	458.7		340.4
Total stockholders’ equity	1,387.5		1,421.3
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity	$	12,631.7	$	12,351.8

The consolidation of CIPs did not have a significant impact on net income attributable to the Company during the three and nine months ended June 30, 2025 and 2024.

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.


(in millions)	Level 1		Level 2		Level 3		NAV as a Practical Expedient		Total
as of June 30, 2025
Assets
Cash and cash equivalents of CLOs	$	399.3	$	—	$	—	$	—	$	399.3
Receivables of CLOs	—		353.0		—		—		353.0
Investments
Equity and debt securities	212.3		728.9		550.6		168.7		1,660.5
Loans	—		9,750.3		9.9		—		9,760.2

Total Assets Measured at Fair Value	$	611.6	$	10,832.2	$	560.5	$	168.7	$	12,173.0


(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 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)	June 30, 2025		September 30, 2024
Nonredeemable investments1

Investments with unknown liquidation periods	$	105.2	$	49.0

Redeemable investments2	63.5		138.1

Unfunded commitments3	—		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.

3Of the total unfunded commitments, the Company was contractually obligated to fund $9.9 million based on its ownership percentage in the CIPs, at September 30, 2024.


	Three Months Ended June 30,				Nine Months Ended June 30,
(in millions)	2025		2024		2025		2024
Balance at beginning of period	$	545.0	$	591.0	$	550.1	$	584.9

Acquisition	—		—		—		29.6
Gains (losses) included in investment and other income (losses) of consolidated investment products, net	(4.6)		(29.8)		19.7		(68.0)
Purchases	19.1		17.5		39.2		44.1
Sales	(17.2)		(0.7)		(31.5)		(1.2)
Net (deconsolidations) consolidations	8.4		—		12.2		(12.5)
Transfers into Level 3	—		—		0.2		1.1
Transfers out of Level 3	(0.1)		—		(39.3)		—
Balance at End of Period	$	550.6	$	578.0	$	550.6	$	578.0
Change in unrealized losses included in net income relating to assets held at end of period	$	(3.9)	$	(29.8)	$	(8.0)	$	(67.4)

(in millions)

as of June 30, 2025

Fair Value

Valuation Technique

Significant Unobservable Inputs

Range (Weighted Average1)

Equity and debt securities

286.7

Market pricing

Private sale pricing

$0.27–$1,850.00 ($148.20) per share

Discount for lack of marketability

5.0%–50.0% (21.4%)

205.6

Market comparable companies

Enterprise value/ Revenue multiple

1.4–18.1 (9.3)

Discount for lack of marketability

8.3%–16.1% (12.8%)

48.6

Discounted cash flow

Discount rate

6.7%–6.8% (6.8%)

9.7

Option pricing model

Volatility

49.1%–76.9% (51.1%)

Discount for lack of marketability

11.1%–14.7% (11.3%)

(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%

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).


(in millions)	Fair Value Level	June 30, 2025				September 30, 2024
		Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Asset
Cash and cash equivalents	1	$	303.8	$	303.8	$	335.1	$	335.1

Financial Liabilities
Debt of CLOs1	2 or 3	$	9,577.6	$	9,520.5	$	9,341.5	$	9,167.3

__________________

Debt of CLOs totaled $9,577.6 million and $9,341.5 million at June 30, 2025 and September 30, 2024. The debt had fixed and floating interest rates ranging from 2.39% to 12.38% with a weighted-average effective interest rate of 6.08% at June 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.


(in millions)
for the fiscal years ending September 30,	Amount
2025 (remainder of year)	$	54.8
2026	38.2
2027	56.0
2028	44.6
2029	—
Thereafter	9,384.0
Total	$	9,577.6


(in millions)	June 30, 2025		September 30, 2024
Unpaid principal balance	$	10,056.6	$	9,371.9
Difference between unpaid principal balance and fair value	(117.5)		(19.8)
Fair Value	$	9,939.1	$	9,352.1

The Company recognized $14.0 million and $41.3 million of net gains during the three and nine months ended June 30, 2025 and $9.4 million and $39.9 million of net gains during the three and nine months ended June 30, 2024, related to its own economic interests in the CLOs. The aggregate principal related to the debt of CLOs was $9,674.5 million and $9,282.8 million at June 30, 2025 and September 30, 2024.